Contractor’s Performance Appraisal System in the Malaysian Construction Industry: Current Practice, Perception and Understanding

  • Authors

    • Khairul Zahreen Mohd Arof
    • Syuhaida Ismail
    • Abd Latif Saleh
    2018-07-09
    https://doi.org/10.14419/ijet.v7i3.9.15272
  • Contractor, Performance Appraisal System, Malaysian Construction Industry, Perception and Understanding
  • Performance appraisal system is a common practice in any organisation to appraise performance of workers. In the Malaysian construction industry, performance appraisal system is applied to appraise contractor’s performance in many angles including: quality performance; time performance; cost performance; environmental performance; health and safety performance; productivity performance; and human resources performance. This is where the Construction Industry Development Board (CIDB) established three guidelines in strengthening the Construction Industry Transformation Programme (CITP) by appraising the contractor’s performance through identification of their weaknesses as well as drafting and offering suitable trainings in enhancing their performance. This paper is therefore undertaken with the objectives of: (1) determining the current practice of contractor’s performance appraisal system in the Malaysian construction industry; and (2) examining the construction players’ perception and understanding on the existing contractor’s performance appraisal system in the Malaysian construction industry. A set of questionnaires is designed and distributed to 157 contractors from G1 to G7 class. The paper finds that: (1) contractor’s performance appraisal system is benefiting the contractors yet should be improved for its efficiency; and (2) construction players have sufficient understanding on contractor’s performance appraisal system. It is expected that the improvement of contractor’s performance appraisal system via the findings of this paper would assist in achieving the three focuses of Transformasi Nasional 2050 (TN50), namely science and technology, urban prosperity as well as environment.

     

  • References

    1. [1] Ithnin, R., Shizuo, M., and Shousuke, T. (2017). Science and Technology for a Sustainable Future. Jurnal Bahasa dan Budaya Jepun, 7, 50-65.

      [2] Project Management Institute (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide)-Sixth Edition: Project Management Institute.

      [3] Heagney, J. (2016). Fundamentals of project management: AMACOM Div American Mgmt Assn.

      [4] JKR, Jabatan Kerja Raya (2010). Standard Form of Contract to Be Used Where Bills of Quantities Form Part of The Contract. Putrajaya: Jabatan Kerja Raya.

      [5] Rahman, N. A. (2009). A Survey on Problem Faced by Contractors Using Design and Build Contract. UMP.

      [6] Walker, A. (2015). Project Management in Construction: Wiley.

      [7] Pollick, M. (2006). What is a Contractor? Retrieved from http://www.wisegeek.com website:

      [8] CIDB, Construction Industry Development Board (2017). Buletin Statistik Pembinaan Suku Tahunan Retrieved from Kuala Lumpur:

      [9] Holt, G. D., Olomolaiye, P. O., and Harris, F. C. (1996). Tendering procedures, contractual arrangements and Latham: the contractors' view. Engineering, Construction and Architectural Management, 3(1/2), 97-115.

      [10] Sweis, R. J., Bisharat, S. M., Bisharat, L., and Sweis, G. (2014). Factors Affecting Contractor Performance on Public Construction Projects. Life Science Journal, 11(4s), 28-39.

      [11] Xiao, H., and Proverbs, D. (2003). Factors influencing contractor performance: an international investigation. Engineering, Construction and Architectural Management, 10(5), 322-332.

      [12] Alwi, S., Hampson, K. D., and Mohamed, S. A. (2002). Factors influencing contractor performance in Indonesia: A study of non value-adding activities.

      [13] Holt, G. D. (1997). Classifying construction contractors. Building Research & Information, 25(6), 374-382.

      [14] Adegoke, B. (2011). Problems of direct Labour Projects procured in Lagos State: GRIN Publishing.

      [15] Sambasivan, M., and Soon, Y. W. (2007). Causes and effects of delays in Malaysian construction industry. International Journal of project management, 25(5), 517-526.

      [16] Lorentzen, S., Oglend, A., and Osmundsen, P. (2017). Cost overruns on the Norwegian continental shelf: the element of surprise. Energy.

      [17] Shirkavand, I., Lohne, J., and Lædre, O. (2016). Defects at Handover in Norwegian Construction Projects. Procedia-Social and Behavioral Sciences, 226, 3-11.

      [18] Saeed, M. S. (2016). The role of project management practices in avoiding time and cost overruns: The construction sector in Pakistan and the UK: GRIN Publishing.

      [19] Bratton, J., and Gold, J. (2012). Human resource management: theory and practice: Palgrave Macmillan.

      [20] Locke, E., and Latham, G. (1994). Goal-setting theory. chair in human resources at the State University of New York–Buffalo and was faculty director of the Center for Entrepreneurial Leadership there. Previously he was Research Professor of Management at Georgia State University. He has written over fifty books and over 135 other publications., 159.

      [21] McQueen, R. A., and Knussen, C. (2002). Research Methods for Social Science: A Practical Introduction: Prentice Hall.

      [22] Taylor, S. J., Bogdan, R., and DeVault, M. (2015). Introduction to qualitative research methods: A guidebook and resource: John Wiley & Sons.

      [23] Connelly, L. M. (2008). Pilot studies. Medsurg Nursing, 17(6), 411-413.

      [24] Scheuren, F. (2004). What is a Survey? : American Statistical Association.

      [25] Cronbach, L. J. (1951). Coefficient alpha and the internal structure of tests. psychometrika, 16(3), 297-334.

      [26] George, D., and Mallery, M. (2003). Using SPSS for Windows step by step: a simple guide and reference.

      [27] Gliem, J. A., and Gliem, R. R. (2003). Calculating, interpreting, and reporting Cronbach’s alpha reliability coefficient for Likert-type scales.

      [28] Al-Mayahi, H. T. A. S. (2018). Appraisal of Communication Management Improvement in Iraqi Architectural Firms. (Master of Philosophy), Universiti Teknologi Malaysia, Johor Bahru.

  • Downloads

  • How to Cite

    Zahreen Mohd Arof, K., Ismail, S., & Latif Saleh, A. (2018). Contractor’s Performance Appraisal System in the Malaysian Construction Industry: Current Practice, Perception and Understanding. International Journal of Engineering & Technology, 7(3.9), 46-51. https://doi.org/10.14419/ijet.v7i3.9.15272