The implementation of construction cost index (CCI) in Malaysia

Abstract

Cost performance is an important criterion in construction industry to determine a project success. In order to enhance the construction cost estimation and cost performance, Construction Cost Index (CCD is introduced. CCI serves as a business cycle measurement in budget preparation, cost modelling and cost forecasting in construction projects lifecycle. Although CCI has been introduced by Construction Industry Development Board (CIDB) over a decade however the cost performances for construction projects in Malaysia are still remain unsatisfactory. Therefore, this study aims at examining the causal relationship of CCI implementation success factors to address the effectiveness of CCI in Malaysian construction industry. Principal Component Analysis (PCA), ANOVA and T-Test are conducted to examine the factors of implementation of CCI in relation to CCI components. It is found that economic condition and reliability and validity of CCI are the major success criteria in implementing CCI. Also, it is discovered that Malaysian construction industry is ready to adopt CCI to improve the cost estimating performance.