Cause and impact of dispute and delay the closing of final account in Malaysia construction industry

Abstract

Construction industry is realizing the plans and specifications for the physical structure. The project is success when it is completed to meet customer needs without any issues and problems in terms of time, quality and budget allocation. The budget allocation is important especially to get the total final cost of the project that will be added in the final accounts. Final account is the fact that the sum agreed to be paid at the end of the contract by the owner to the contractor. Moreover, the final account issue has existed in Malaysia construction industry for several decades in which the important factors significantly affect the closing of final account that related with contractor, management and the contract as well. Successful closing is categorized as resolved at the stipulated time without any problems in the dispute and delay. Therefore, the purpose of this paper is to investigate the important factors that contribute to the closing of final account in construction projects in Malaysia. This aim can be achieved through the objectives of evaluating the contract in Malaysia to compare the final closure of various forms of contract and finally identify the causes and effects of the dispute and delays in the final account closing. As a result, this paper can assist construction industry players to create more effective planning and be used as guidelines in ensuring the on-time closing of final account in constructions projects in Malaysia.