Universiti Teknologi Malaysia Institutional Repository

Relational contract in construction industry in Malaysia

Jatarona, Nurul Alifah (2007) Relational contract in construction industry in Malaysia. Masters thesis, Universiti Teknologi Malaysia, Faculty of Civil Engineering.



For many years, the construction industry has relied on formal contracts to define and enforce the obligations and rights of contracting parties. Nonetheless, existing formal contracts are subject to some disadvantages hence and alternative is required to address the issue. The objectives of this study are to study the current practice of construction contract, to analyze problems associated with the application of traditional contract in Malaysia and to appraise the knowledge and the application of Relational Contract in Malaysia. The data used in this study was collected through literature study and questionnaire survey from Class A contractor in Johor Bahru. Data was analyzed using Statistical Package for Social Sciences Software (SPSS) and the results analyses were presented in frequency and average index value. The finding shows that traditional contract has been identified to be the most frequently used contract in Malaysia due to its familiarity to works with but there are problem associated to the traditional contract. Potential barrier such as lack of client knowledge also being identified in this study and lack of client knowledge is found to be the most critical reason in adopting relational contract. The traditional contract can be improved through the incorporation of Relational contract’s element such as clearly defined scope, integrated project team, alignment of goals and open honest communication. It can be concluded that relational contract is still new in Malaysia. Many of the practitioners in the industry are not aware of this approach. However, they agree that some of the elements in relational contract can be adopted in order to overcome the weaknesses in traditional contract.

Item Type:Thesis (Masters)
Additional Information:Thesis (Sarjana Sains (Pengurusan Pembinaan)) - Universiti Teknologi Malaysia, 2007; Supervisor : Assoc. Prof. Dr. Aminah Md. Yusof
Uncontrolled Keywords:construction industry, traditional contract, SPSS
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions:Civil Engineering
ID Code:11386
Deposited By: Narimah Nawil
Deposited On:15 Dec 2010 04:46
Last Modified:30 Jul 2018 08:39

Repository Staff Only: item control page