In steel in international trading market. When the

In addition, mostconstruction companies tend to focus on the price changes of building materialsas this may affect the cost and revenue of construction companies. Fluctuationsin the price of building materials are affected by both exchange rate andinflation rates. From appendix 1, it show that the movement of currency rate ofUS dollar against Ringgit. In general, most of the building materials aretraded in US dollars in international markets. When there is depreciation in USdollar, which mean that construction companies can import those buildingmaterial with spending less Ringgit from the market. Small changes in thecurrency exchange rate are very sensitive to the cost of construction projectsand price of building material.

From appendix 2, it state the price movement ofsteel in international trading market. When the steel price increase, whichmean that is an inflation in the price of the steel and cause constructioncompanies have to pay higher price for the steel for their constructionproject.Moreover, the problemof technology transfer and acquisition always being faced by constructionindustry in Malaysia. Most large-scale projects are carriedout by foreign contractors and consultants.

Local contractors generally lackthe experience of implementing projects worth more than US $ 500 million andproject which are complexes in term of design and construction method like KLCCand Sepang Airport projects. This is due to their handicaps in managementexpertise, knowledge and experience in new technology in constructiontechniques, design, and using high-tech machines and equipment for mega andcomplexes projects whereas the consultants are basically lack of manpower andexperience in that kind of projects (Abbott,1985).Lastly, constructionquality is also a concern for construction companies.

In general, there is somefactors which cause the issue happen in the construction industry. There is ashortage of skilled labor on the market, so many projects employ unskilledworkers to do the job requiring skills. Therefore, the quality of finished worksis substandard. Next, Low-quality work is either due to mistakes made by themanufacturer in controlling the quality of the construction materials of theproject or due to contractor does not follow the standard specified for theconstruction projects.

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Lack of quality control in construction projects mayalso be due to the inability of parties to the contract to respond to a largernumber of projects. The lack of research on tropical construction materials andconstruction methods is a factor in low quality construction. Most designs andspecifications are based on UK or European standards and are not specific totropical weather and climatic conditions. As a result, the quality of manybuildings and their materials is not as good as expected (Moavenzadeh,F, 1978).

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