In addition, most
construction companies tend to focus on the price changes of building materials
as this may affect the cost and revenue of construction companies. Fluctuations
in the price of building materials are affected by both exchange rate and
inflation rates. From appendix 1, it show that the movement of currency rate of
US dollar against Ringgit. In general, most of the building materials are
traded in US dollars in international markets. When there is depreciation in US
dollar, which mean that construction companies can import those building
material with spending less Ringgit from the market. Small changes in the
currency exchange rate are very sensitive to the cost of construction projects
and price of building material. From appendix 2, it state the price movement of
steel in international trading market. When the steel price increase, which
mean that is an inflation in the price of the steel and cause construction
companies have to pay higher price for the steel for their construction

Moreover, the problem
of technology transfer and acquisition always being faced by construction
industry in Malaysia. Most large-scale projects are carried
out by foreign contractors and consultants. Local contractors generally lack
the experience of implementing projects worth more than US $ 500 million and
project which are complexes in term of design and construction method like KLCC
and Sepang Airport projects. This is due to their handicaps in management
expertise, knowledge and experience in new technology in construction
techniques, design, and using high-tech machines and equipment for mega and
complexes projects whereas the consultants are basically lack of manpower and
experience in that kind of projects (Abbott,1985).

Lastly, construction
quality is also a concern for construction companies. In general, there is some
factors which cause the issue happen in the construction industry. There is a
shortage of skilled labor on the market, so many projects employ unskilled
workers to do the job requiring skills. Therefore, the quality of finished works
is substandard. Next, Low-quality work is either due to mistakes made by the
manufacturer in controlling the quality of the construction materials of the
project or due to contractor does not follow the standard specified for the
construction projects. Lack of quality control in construction projects may
also be due to the inability of parties to the contract to respond to a larger
number of projects. The lack of research on tropical construction materials and
construction methods is a factor in low quality construction. Most designs and
specifications are based on UK or European standards and are not specific to
tropical weather and climatic conditions. As a result, the quality of many
buildings and their materials is not as good as expected (Moavenzadeh,
F, 1978).


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