determinants of building services cost in high-rise
TRANSCRIPT
DETERMINANTS OF BUILDING SERVICES COST IN HIGH-RISE
RESIDENTIAL BUILDING
KHO MIN FUNG
UNIVERSITI TEKNOLOGI MALAYSIA
i
DETERMINANTS OF BUILDING SERVICES COST IN HIGH-RISE
RESIDENTIAL BUILDING
KHO MIN FUNG
A dissertation submitted in partial fulfillment of the
Requirement for the awards of the degree of
Bachelor of Quantity Surveying
Faculty of Built Environment
Universiti Teknologi Malaysia
JUNE 2018
ii
DECLARATION
I declare that this thesis entitled “Determinants of Building Services Cost in High-rise
Residential Building” is the results of my own research except as cited in the
references. The thesis has not been accepted for any degree and is not concurrently
submitted in candidature of any other degree.
Signature : FUNG
Name : KHO MIN FUNG
Date : 31/05/2018
iii
DEDICATION
Special thanks to my beloved parents, all my family members and friends for their
support, help and understanding
I extend my deepest appreciation to each of the above
iv
ACKNOWLEDGEMENT
First and foremost, I would like to express my deep gratitude to my research
supervisor, Dr. Shamsul Hadi Bandi. Thanks for his valuable guidance, advice and
recommendations to me in completing this study. Apology also goes to him for any
inconvenience brought to him during the entire period of this study.
Furthermore, I would like to express my appreciation to all the respondents
who spend their precious time during interview section. Without their participations, I
could not complete my dissertation successfully.
Last but not least, I would also like to take this opportunity to thank all my
family members and friends for their great support and dedication in encouraging and
helping me to accomplish this study. Million thanks to all.
v
ABSTRACT
Building services are an integral element in buildings which aid in movement,
communications and contributing towards comfort. These systems contribute a
significant portion of cost to buildings. The current trend of building services cost
showed an upward pattern as the previous studies had shown. This implied that a huge
sum of expenditure had been spent to equip buildings with a wide array of services.
Despite this trend, there seemed to be a lack of studies being carried out to explain the
situation. This calls for a study to be carried out to determine the determinants which
justify current trend observed. Therefore, the aim of this study is to appraise the
determinants influencing the building service cost in high-rise residential building. To
achieve this aim, the following objectives were outlined: (1) To analyse the trend of
building services cost in high-rise residential building; (2) To determine the main
determinants that justify the trend of the building services cost in high-rise residential
building. This study was conducted using qualitative approach through document
analysis in attaining the first objective by analysing historical cost data from five case
studies. The second objective was achieved through semi-structured interviews
administered to seven respondents with background in M&E. By using the NVivo to
analyse the interviews data, five main determinants were determined through this
study. These are: (1) client requirement; (2) design factor; (3) economic factor; (4)
consideration of eco-friendly product and (5) amendment of building regulation. As
cost is seen as the main concern of building clients, this study contributes by informing
the designers on the determinants that affect building services cost. This would serve
as a control mechanism for making decision in the early design stage.
vi
ABSTRAK
Sistem perkhidmatan bangunan adalah elemen penting dalam bangunan yang
membantu pergerakan, komunikasi dan menyumbang ke arah keselesaan. Sistem ini
menyumbang sebahagian besar kos kepada bangunan. Trend semasa kos
perkhidmatan bangunan menunjukkan kenaikan seperti kajian terdahulu telah
menunjukkan. Ini menunjukkan bahawa sejumlah besar perbelanjaan telah
dibelanjakan untuk melengkapkan bangunan dengan pelbagai perkhidmatan.
Walaupun terdapat trend ini, terdapat kekurangan kajian yang dijalankan untuk
menjelaskan keadaan. Ini memerlukan kajian yang akan dijalankan untuk mengenal
pasti penentu yang membenarkan trend semasa. Oleh itu, tujuan kajian ini adalah
untuk menilai penentu yang mempengaruhi kos perkhidmatan bangunan di bangunan
kediaman bertingkat tinggi. Untuk mencapai matlamat ini, objektif-objektif berikut
telah digariskan: (1) untuk menganalisis trend bagi kos perkhidmatan bangunan di
sebuah bangunan kediaman bertingkat tinggi; (2) Untuk menentukan penentu utama
yang menyebabkan trend bagi kos perkhidmatan bangunan tersebut dalam bangunan
kediaman bertingkat tinggi. Kajian ini dijalankan dengan menggunakan pendekatan
kualitatif melalui analisis dokumen dalam mencapai objektif pertama dengan
menganalisis data kos sejarah dari lima kajian kes. Objektif kedua dicapai melalui
wawancara separa berstruktur yang diberikan kepada tujuh responden dengan latar
belakang dalam M & E. Dengan menggunakan NVivo untuk menganalisis data temu
bual, lima penentu utama ditentukan melalui kajian ini. Ini adalah: (1) permintaan
majikan; (2) faktor reka bentuk bangunan; (3) faktor ekonomi; (4) pertimbangan
pengunaan produk mesra alam dan (5) pindaan peraturan bangunan. Sebagai kos
dilihat sebagai kebimbangan utama bangunan majikan, kajian ini menyumbang
dengan memaklumkan pereka mengenai penentu yang mempengaruhi kos
perkhidmatan bangunan. Ini akan berfungsi sebagai mekanisme kawalan untuk
membuat keputusan dalam peringkat reka bentuk awal.
vii
TABLE OF CONTENTS
CHAPTER TITLE PAGE
THESIS DECLARATION
SUPERVISOR’S DECLARATION
TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENT vii
LIST OF TABLES xiii
LIST OF FIGURES xv
LIST OF ABBREVIATIONS xvii
LIST OF APPENDICES xviii
1. INTRODUCTION ................................................................................
1.1 Introduction 1
1.2 Research background 1
1.3 Problem statement 4
1.4 Research Question 8
1.5 Aim 8
1.6 Research Objective 9
1.7 Scope of study 9
viii
1.8 Significance of Research 10
1.9 Brief Research Methodology 10
1.9.1 Preliminary Study 12
1.9.2 Literature Review 12
1.9.3 Data Collection 12
1.9.4 Data Analysis 13
1.9.5 Conclusion 13
1.10 Chapter Outline 13
2. BUILDING SERVICES COST COMPONENTS IN
CONSTRUCTION INDUSTRY
2.1 Introduction 15
2.2 Definition 17
2.2.1 Trend 17
2.2.2 Cost 17
2.2.3 Building services engineering 18
2.2.4 High-rise building 19
2.3 Building services system 20
2.3.1 Building services system in high-rise building 20
2.3.1.1 Cold water supply system ............................... 20
2.3.1.2 Electrical supply and distribution system ....... 21
2.3.1.3 Sanitary pipework and appliances................... 22
2.3.1.4 Fire safety system............................................ 23
2.3.1.5 Ventilation system........................................... 24
2.3.1.6 Lift system....................................................... 24
2.3.1.7 Security system ............................................... 24
2.3.2 Element of building services system 25
2.3.2.1 Plant and equipment (Source) ......................... 25
ix
2.3.2.2 Service run (distribution) ................................ 26
2.3.2.3 Appliances (outlet) .......................................... 26
2.3.3 Design consideration for building services system27
2.3.3.1 Maintenance .................................................... 27
2.3.3.2 Energy efficiency ............................................ 28
2.3.3.3 Location and access to plant and equipment ... 28
2.3.3.4 Building Codes & Standards ........................... 28
2.3.3.5 Whole Life Cost .............................................. 29
2.3.3.6 Safety 29
2.3.3.7 Quality 30
2.4 Building services cost 30
2.4.1 Building services cost element 31
2.4.1.1 Material cost .................................................... 31
2.4.1.2 Labour cost ...................................................... 33
2.4.2 Approach to prepare building services cost 34
2.4.3 Problem in managing building services cost 35
2.4.3.1 Lack of generally accepted SMM for building
services element 35
2.4.3.2 Inadequate design information ........................ 36
2.4.3.3 Inability of quantity surveyors offer cost advice
on building services 36
2.4.3.4 No involvement of building services contractor
in early design stage ......................... 37
2.4.3.5 Poor coordination at pre-installation stage...... 37
2.4.4 Factor affecting trend of building services cost 39
2.4.4.1 Complexity of project ..................................... 39
2.4.4.2 Design factor ................................................... 40
2.4.4.3 General rise in standard of living .................... 41
x
2.4.4.4 Desire for controlled internal environment ..... 42
2.4.4.5 Greater energy conservation ........................... 42
2.4.4.6 Attitude towards whole life costs .................... 43
2.4.4.7 Cost of construction material .......................... 43
2.4.4.8 Amendment of building regulation ................. 44
2.5 Summary of Chapter 44
3. RESEARCH METHODOLOGY ........................................................
3.1 Introduction 45
3.2 Research Methodology 46
3.2.1 Stage 1-Preliminary study 46
3.2.2 Stage 2-Literature Review 47
3.2.3 Stage 3-Data collection 47
3.2.4 Stage 4-Data Analysis 48
3.2.5 Stage 5-Conclusion and Recommendation 48
3.3 Research design 48
3.4 Case study 49
3.5 Research Instruments 50
3.5.1 Document Analysis 50
3.5.2 Semi-structured interview 52
3.6 Method of Data Analysis 54
3.7 Research Flow 58
3.8 Summary 60
4. ANALYSIS, RESULT AND DISCUSSION .......................................
4.1 Introduction 61
4.2 Background of the Project 61
4.2.1 Project A 62
xi
4.2.2 Project B 63
4.2.3 Project C 65
4.2.4 Project D 67
4.2.5 Project E 69
4.2.6 Summary 71
4.3 Overall trend of building services cost from case studies 73
4.3.1 Trend of cost for sanitary appliances 74
4.3.2 Trend of cost for plumbing installation 76
4.3.3 Trend of cost for electrical installation 78
4.3.4 Trend of cost for fire protection installation 80
4.3.5 Trend of cost for lift and conveyor installation 82
4.3.6 Services cost contribute to construction cost 84
4.4 Interviewee profile 86
4.5 Determinants justifing trend of building services cost 86
4.5.1 Determinants causing the increasing trend of
sanitary appliances cost 89
4.5.1.1 Client requirement........................................... 90
4.5.1.2 Consideration of eco-friendly product ............ 91
4.5.2 Determinants causing the increasing trend of
plumbing installation cost 92
4.5.2.1 Economic factor .............................................. 93
4.5.2.2 Design factor ................................................... 94
4.5.2.3 Client requirement........................................... 95
4.5.3 Determinants causing the increasing trend of air
conditioning & ventilation installation cost 96
4.5.3.1 Client requirement........................................... 97
4.5.3.2 Design factor ................................................... 97
4.5.3.3 Consideration of eco-friendly product ............ 98
xii
4.5.4 Determinants causing the increasing trend of
electrical installation cost 99
4.5.4.1 Economic factors........................................... 100
4.5.4.2 Design factor ................................................. 100
4.5.4.3 Client requirement......................................... 101
4.5.5 Determinants causing the increasing trend of fire
protection installation cost 102
4.5.5.1 Economic factors........................................... 103
4.5.5.2 Design factor ................................................. 103
4.5.5.3 Amendment of building regulation ............... 104
4.5.6 Determinants causing the increasing trend of lift &
conveyor installation cost 104
4.5.6.1 Client requirement......................................... 105
4.5.6.2 Design factor ................................................. 106
4.5.6.3 Consideration of eco-friendly product .......... 107
4.5.7 Special M&E installation system that causes the
increases in overall building services cost 107
4.5.7.1 Client requirement......................................... 108
4.6 Summary of chapter 109
5. CONCLUSION AND RECOMMENDATIONS ...............................
5.1 Introduction 110
5.2 Research Outcome 110
5.2.1 Objectives 111
5.2.2 Conclusion 114
5.3 Limitation of Study 114
5.4 Recommendation and suggestion for future study 116
6. REFERENCE ................................................................................. 117
xiii
LIST OF TABLES
TABLE
NO. TITLE PAGE
1.1 Proportion of total costs spent on building services (Smith
et al., 2016)
2
1.2 Allocation of weightage for building services construction
works (CIDB, 2014)
4
1.3 Services cost in apartment building in Kuala Lumpur from
the year 2014 to 2017 (JUBM Sdn bhd 2014-2017)
5
1.4 Services cost in industrial building in Kuala Lumpur from
the year 2014 to 2017 (JUBM Sdn bhd 2014-2017)
6
1.5 Previous research on building services cost in a building 7
2.1 Categories of cost (Marsh, 2003) 18
2.2 Material price for plumbing works in Johor (CIDB, 2017) 32
2.3 Material price for sanitary fitting in Johor (CIDB, 2017) 32
2.4 Labour wage for wiring installer and plumber in Johor 33
3.1 Approaches of Data Collection in This Research
(Document analysis)
51
3.2 Approaches of Data Collection in This Research (Semi-
structure interview)
52
3.3 Form used to record and analyse data for objective 1 54
3.4 Form used to record and analyse data for objective 1 55
3.5 Sample of Raw Data 56
4.1 Background of Project A 63
4.2 Cost breakdown for building services cost in project A 64
xiv
4.3 Background of Project B 65
4.4 Cost breakdown for building services cost in project B 66
4.5 Background of Project C 67
4.6 Cost breakdown for building services cost in project C 68
4.7 Background of Project D 69
4.8 Cost breakdown for building services cost in project D 70
4.9 Background of Project E 71
4.10 Cost breakdown for building services cost in project E 72
4.11 Cost per GFA for different building services system
between case studies
73
4.12 Adjusted building services cost per m2 GFA between case
studies
74
4.13 Adjusted sanitary appliances cost per m2 GFA between
case studies
76
4.14 Adjusted plumbing installation cost per m2 GFA between
case studies
78
4.15 Adjusted electrical installation cost per m2 GFA between
case studies
80
4.16 Adjusted fire protection installation cost per m2 GFA
between case studies
82
4.17 Adjusted lift and conveyor installation cost per m2 GFA 84
4.18 Percentage of building services cost to total construction
cost
86
4.19 Lists of Respondents Background 87
xv
LIST OF FIGURES
FIGURE
NO. TITLE PAGE
1.1 Flow Chart of Brief Research Methodology 11
2.1 Theoretical Framework for Chapter 2 16
3.1 Process of Document Analysis (Mayring 2002) 50
3.2 JKR tender price index 55
3.3 Illustration of building services cost 56
3.4 Word cloud 57
3.5 Flow Chart of Research Design 59
4.1 Overall trend of building services cost between case
studies
75
4.2 Trend of cost for sanitary appliances between case
studies
77
4.3 Trend of cost for plumbing installation between case
studies
79
4.4 Trend of cost for electrical installation between case
studies
81
4.5 Trend of cost for fire protection installation between case
studies
83
4.6 Trend of cost for lift and conveyor installation between
case studies
85
4.7 Percentage of Building services cost to total construction
cost
86
4.8 Word Cloud for the study 88
4.9 Determinants causing the increasing trend of building
services cost in high-rise building
89
4.10 Determinants causing the increasing trend of sanitary
appliances cost in high-rise building
90
xvi
4.11 Determinants causing the increasing trend of plumbing
installation cost in a high-rise building.
93
4.12 Determinants causing the increasing trend of air
conditioning & ventilation installation cost in high-rise
building.
97
4.13 Determinants causing the increasing trend of electrical
installation cost in a high-rise building.
100
4.14 Determinants causing the increasing trend of fire
protection installation cost in high-rise building
103
4.15 Determinants causing the increasing trend of lift &
conveyor installation cost in high-rise building
106
4.16 Determinants of special M&E installation system that
causes the increases in overall building services cost
108
xvii
LIST OF ABBREVIATIONS
ABBREVIATION FULL NAME
ABS - Acrylonitrile-Butadiene-Styrene
CCTV - Closed-Circuit Television
CIDB - Construction Industry Development Board
ELV - Extra-low voltage
IEQ - Indoor Environmental Quality
M&E - Mechanical and Electrical
PVC - Polyvinyl chloride
xviii
LIST OF APPENDICES
APPENDIX TITLE
A RESEARCH FORM RF/01
B INTERVIEW QUESTION
19
CHAPTER 1
INTRODUCTION
1
CHAPTER 1
1. INTRODUCTION
1.1 Introduction
In this chapter, an introduction to the background of the study is presented.
Problem statements, research questions, objectives of the study, and project scope are
all included in this chapter.
1.2 Research background
Cost is commonly believed as a crucial element of an excellent design. The
core rationale of cost planning is to complete a construction project and to satisfy the
client needs (Yusuf et al., 2012). In order to achieve certainty in cost, it needed to be
managed and controlled on cost performance of construction projects (S.N.
Kamaruzzaman, 2010). Construction cost is termed as the capital cost or the initial
cost which comprises items such as land, workforce, materials, equipment, profit,
2
finance, overheads, management skills and entrepreneurship (Smith & Jaggar, 2007).
For building contractor, cost stand for those elements included under the heading of
his spending (Ashworth & Perera, 2015). Thus, cost is one of the major factor in the
project management life cycle and can be considered as the most important factor of a
project (Azhar, 2008).
The main group elements of a building are substructure, superstructure,
finishes, fitting and furnishings, external works and building services. In a normal
modern office block, building services cost contributes around 50% of the total
construction cost (Hall & Greeno, 2017). Building services cost contributes around
20-30% to total initial cost, and around 40-50% to buildings that are services focused
for instance hospitals and laboratories (Yanez, 2011). According to Yusuf et al. (2012),
there was an awareness on the importance of building services cost as a determinant
that contributes to the overall construction cost. Therefore, it cannot be ignored by
parties involve in construction industry especially the client. Table 1.1 show the
proportion from the total costs spent on building services alone.
Table 1.1: Proportion of total costs spent on building services
(Source: Smith et al., 2016)
Building type Outline description % Services of
total building cost
1. Administration,
Civic
i) Offices 3-10 storeys
ii) Art Gallery, capital city
38.1
34.9
2. Banks i) City centre, 4-10 storeys 34.3
3. Educational i) Secondary School overall,
maximum 3 storeys
ii) University Science Laboratory,
max. 3 storeys
18.9
42.0
4. Hospitals Hospital, General, multi-storey 52.5
3
Building services engineering relates to the equipment and systems that gives
support to managing the interior to make it secure, serviceable and comfy to inhabit:
this includes visual, thermal, acoustic comfort and indoor air condition (Portman,
2014). Building services system are the importance element for building which
function to providing movement, communications, facilities and comfort (Hall &
Greeno, 2017). There are many types of services system in a building. The most
common systems are the cold-water supply system, lighting system, ventilation system,
plumbing and electrical supply systems. Intelligent building controls system, medical
and laboratory gases, communications and IT systems, transportation systems, security
systems are introducing because of the building are more complex and provide more
functionality to users (Portman, 2014).
The building is categorised into residential and non-residential buildings.
There is different allocation of weightage for building services construction works
according to building category. Therefore, the different allocation of weightage for
building services construction works causing different services cost in a building.
Table 1.2 show the allocation of weightage for building services construction works.
5. Hotels City hotel, International Standard,
(rooms 77.5m2)
36.7
6. Industrial i) Warehouse, Multi-storey,
maximum 6 storeys
ii) Factory, large span, offices, 2
storeys
20.1
31.8
7. Offices 7-20 storeys, fully serviced,
finished floor
38.9
8. Residential Flats, High standard, Multi-storey 35.9
9. Retail i) Regional shopping centre,
medium standard, 2 storeys
ii) City department store
36.0
43.4
4
Table 1.2: Allocation of weightage for building services construction works
(Source: CIDB, 2014)
1.3 Problem statement
Building services contribute a significant portion of expenditure to a building.
In all countries, there was a major cost trend which larger proportion of building costs
is being spent on building services system of a building (Smith, 1998). Building
services cost has increased from the 10 to 30% of total building cost to 70% of the
total building cost. There was lack of useful cost parameters for building services and
lack of a in depth analysis of the building services cost (Swaffield & Pasquire, 1999).
It is difficult to cost control on building services cost if there is no history cost data for
building services system in a building. Clients subject to a major cost risk if the greater
Component Residential Building Non-Residential Building
Category A
Landed
housing (%)
Category B
Stratified
housing (%)
Category C
Public/
Commercial/
Industrial
building without
centralised
cooling system
(%)
Category D
Public/
Commercial/
Industrial
building with
centralised
cooling system
(%)
Scope of
building
services to
the overall
construction
works
5 10 15 20
5
proportion of building services cost does not efficiently control (McCaffrey, 2011).
Hence, it implies that building services system contribute major cost elements in a
building and is a topic that requires an in-depth analysis.
There are many causes that affect building services cost for instance the general
standards of living are improved, the request for more attractive and closely managed
internal environments, increase in technological and functional complexity, and the
requirement for better energy conservation (Smith et al., 2016). If the building services
system for a building are mistakenly designed or installed, it can inflict large amount
of needless costs for the construction project (Yanez, 2011). The determinants that
affect the building services cost is critical for the total building construction cost. Thus,
clients will be exposed to a significant design risk if the designer do not take
consideration of those determinants that affect building services cost.
Tables below show services cost in apartment and industrial building in Kuala
Lumpur from the year 2014 to 2017. The tables show that there was a significant
increase in building services cost for different building services system as shown in
Table 1.3 & Table 1.4 respectively.
Table 1.3: Services cost in apartment building in Kuala Lumpur from the year 2014
to 2017
(Source: JUBM Sdn bhd 2014-2017)
Year Electrical Services
(RM/m2)
Fire Services
(RM/m2)
Hydraulic Services
(RM/m2)
2017 105-220 20-30 20-50
2016 88-220 20-25 20-50
2015 88-220 20-25 18-45
2014 85-215 20-25 18-45
6
Table 1.4: Services cost in industrial building in Kuala Lumpur from the year 2014 to
2017
(Source: JUBM Sdn bhd 2014-2017)
The increase has contributed a significant expenditure to the total construction
cost of a building. Despite, there was a lack of study being carried out to determine
the determinants which have caused the cost of building services to increase over the
past few years. Therefore, it is essential to have an in-depth study on determinants of
building services cost. Thus, this study attempts to analyse the trend as the basis to
determine the determinants that justify the trend of the building services cost in high-
rise residential building.
In recent years, there has been a steady rise of high-rise project in Johor Bahru.
For instance, Chinese developer like Country Garden proposed to start a project which
US$100bil high-rise town named as “Forest City” in Johor (The Star, 2017). This
indicate a new trend for high-rise lifestyle as well as in response to the scarcity of land
which in return, increases the price of landed property. Apparently, most of the
previous studys are focus on maintenance cost and problem in preparing building
services cost in a building as shown in Table 1.5. Despite, there is lack of study that
gathers the trend of building services cost of high-rise building in Johor Bahru and the
determinants that affect the building services cost. Table 1.5 shows the previous study
on services cost in a building.
Year Electrical Services
(RM/m2)
Fire Services
(RM/m2)
Hydraulic Services
(RM/m2)
2017 144-190 45-65 37-46
2016 144-160 45-65 37-46
2015 144-160 45-65 37-46
2014 140-157 45-65 36-45
7
Table 1.5: Previous study on building services cost in a building.
Title of the study Author Year Context Remark
Framework for
Enhancing Cost
Management of
Building Services
Ganiyu Amuda
Yusuf, Sarajul
Fikri Mohamed,
Zakaria Mohd
Yusof, and Mohd
Saidin Misnan
2012 Cost Management
of Building
Services
i) Problem faced in
preparing building
services cost plan in
an early stage.
ii) Barriers of
building services
cost management
during the
construction stage.
Improving Early
Cost Advice for
Mechanical and
Electrical
Services
Lisa Michelle
Swaffield
1998 Cost Advice for
Mechanical and
Electrical Services
i) Investigate
existing methods of
pre-design cost
estimating for M&E
services.
ii) The QS as Cost
Controller For M&E
services.
iii) Existing cost
information
available for the
production of M&E
services cost
estimates.
Factors affecting
housing
maintenance cost
in Malaysia
Azlan-Shah Ali,
Syahrul-Nizam
Kamaruzzaman,
Raha
Sulaiman and
Yong Cheong
Peng
2010 Housing
maintenance cost
To determine and
identify the factors
contributing to rising
maintenance costs.
Ratio of Operating
and Maintenance
Dr. Shaomin Wu
and Derek
2007 Relationships
between initial
Discuss relationships
between initial costs
8
Hence, the purpose of this study was to analyse the trend of building services
cost in building and to determine the main determinants that justify the trend of the
building services cost in high rise building. Based on this study, the determinants have
been identified can assist the client in decision making during the early design stage
of project.
1.4 Research Question
1) What is the trend of building services cost in high-rise residential building?
2) What are the determinants that justify the trend of the building services cost
in high-rise residential building?
1.5 Aim
To appraise the determinants influencing the building service cost in high-rise
residential building.
Costs to Initial
Costs of Building
Services Systems
Clements-
Croome
costs, and
operating and
maintenance costs
and operating and
maintenance costs in
helping the designer
in decision making.
9
1.6 Research Objective
1) To analyse the trend of building services cost in high-rise residential building.
2) To determine the main determinants that justify the trend of the building
services cost in high-rise residential building.
1.7 Scope of study
This study focus on high-rise residential building in Johor. Johor is selected
because Johor has the highest total project value (RM) and high total number of project
in the year 2015 (CIDB, 2015). Besides that, there is lack of study that gather the trend
of building services cost for building in Johor Bahru compare to Kuala Lumpur. High-
rise residential units have been the main of developers in Johor since 2013, with
China’s Country Garden Holdings Co Ltd launching 9,000 units in one go that year in
Danga Bay (Mahalingam, 2015). Hence, high-rise residential building is a trend in
Johor and the reason for the scope of this study. However, there are not sufficient data
and information indicate the population of high-rise residential building in Johor.
Therefore, only five (5) high-rise residential building were selected to analyse the trend
of building services cost and determine determinants justify the trend of building
services cost in this study.
10
1.8 Significance of Research
This study undertaken to analyse the trend of building service cost in high-rise
residential building. It can be a reference for the client by indicating the trend of
building services cost in Johor. It can provide client a cost benchmark through
building services cost breakdown for cost controlling purpose. In addition, this study
would also to determine determinants that justify the trend of the building services cost
in the building. It can be an important information to client in early design stage.
On the other hand, this study also provides the platform to the parties which
are involved in the construction industries in order to enhance their awareness level on
the significance of building services cost and determinants affecting building services
cost.
1.9 Brief Research Methodology
The brief overview of the research methodology of this study is indicated in
Figure 1.1 as follows.
11
Figure 1.1: Flow Chart of Brief Research Methodology
Final Stage
Conclusion
Problem Statement
Research Objectives
Scope of Research
Literature Review
Research Topic
Data Analysis and
Discussion
Data Collation
Conclusion
Recommendation
Determinants of building services cost in high-rise residential building
- Objective 1: Document analysis on historic cost data
- Objective 2: Interview
- Resources: Journals, articles, books, newspaper, thesis, internet resources, product websites
- Type of building services system in high-rise
building.
- Element of building services system.
- Factors affecting building services cost.
Five case study projects analyse on building services cost in high-rise residential
building in Johor.
- To analyse the trend of building services cost in high-rise residential building.
- To determine the main determinants that justify the trend of the building services cost in high-rise
residential building.
- Larger proportion of building costs being spent on building services system of a building.
- Difficult to cost control on building services cost if there is no history cost data for building services system.
- Clients exposed to design risk if the designer does not consider factors that affect building services cost.
Initial
Stage
Preliminary
Study
Fourth Stage
Data Analysis
Third Stage
Data Collection
Second Stage
Literature
Review
12
1.9.1 Preliminary Study
Understanding the study field and area that related to the trend of building
services cost by reading and referring to the journal, related articles and books. The
study background, main problems, aims and objectives were identified at this stage.
1.9.2 Literature Review
A literature review is an evaluation report of information found in the literature
related to the selected area of study and help to determine the nature and concept of
the study. The literature review for this study is to identify and provide an
understanding of the building services cost.
1.9.3 Data Collection
The data is collected by using qualitative method. Documentary analysis is
using at this stage by collecting historic services cost data from quantity surveying
consultant firms. Qualitative information may be recorded during interviews with
mechanical and electrical engineers, often on video or audiotape, possibly with
supporting notes, and may be transcribed into written form later.
13
1.9.4 Data Analysis
Data is analysis and the result present in the form of suitable chart and table.
1.9.5 Conclusion
Based on the result, the conclusion drawn at this stage. Recommendation for
further study also will be suggested at this stage.
1.10 Chapter Outline
Chapter 1 introduces the background of the study which briefly describes the
significant of building services cost to whole building construction cost. The
expanding proportion of building services cost contribute to total building cost
exposed clients to a significant cost risk. Thus, this is the issue arose and lead to the
formation of two research question and research objectives followed by scope and
significance of study as well as a brief research methodology.
Chapter 2 encompasses comprehensive review of the literature related to type
of building services system and the element of building services cost. All the data and
information were collected from secondary literature sources including articles,
journals, dissertation, reports, conference proceeding papers, government publication,
textbooks, and other relevant reading materials.
14
Chapter 3 explains the methods and techniques used to conduct the study,
which includes the study strategy, approaches to data collection and the techniques for
data collection. In this study, instrument used for data collection is interview with
target respondents. Besides that, documentary analysis method is also described.
Chapter 4 presents the findings from the data collected in accordance with the
research objectives. All the data collected are analysed to achieve the research
objectives and presented in this chapter.
Chapter 5 is the conclusion and recommendations for this study. The results
based on the findings of the study are summarised and conclusion is formulated based
on the objectives. The achievement of the research objectives is then highlighted. This
chapter also outlined the recommendations for future study.
15
CHAPTER 2
LITERATURE REVIEW
15
CHAPTER 2
2. BUILDING SERVICES COST COMPONENTS IN CONSTRUCTION
INDUSTRY
2.1 Introduction
The engineering services in a building are expected to deliver an environment
which is both healthy and comfortable and allows the user to conduct their activities
without physiological stress (Billington & Roberts, 1982). Building engineering
services are also provided to support the requirements of processes and business
functions happening within buildings such as manufacturing and assembly operations
(Portman, 2014).
Building services is a specific part of construction industry in terms of the type
of work, scope, technicality and the individuals involved. The design and installations
of the building services system are different from the building structure (Yusuf et al.,
2012). Client nowasday looking for the efficiency control of the buiding services’
budget due to the increasing complexity of modern buildings. This situation caused
the building services element more significance, and the services cost contribute a
higher portion of total construction cost (Kumar, 2009). For high-rise building,
building services cost contribute around 35-40% to total construction cost (Smith et
al., 2016).
16
Therefore, the building services cost cannot be ignore by parties which
involved in construction industry, especially the client. It is essential to recognise the
determinants that influence the building services cost in order to provide sufficient
information about the building services cost to the client while making decision.
In this chapter, we look into the type and element of building services system
in high-rise residential building as well as the design consideration for the system.
These are the parameters which establish the trend of services cost in a high-rise
residential building. Besides, the approach to prepare building services cost, the
obstructions in managing building services cost and the determinants affect the trend
of building services cost also have been studied to have a further analysis in next
chapter. The theoretical framework of this chapter shown in Figure 2.1.
Figure 2.1: Theoretical Framework for Chapter 2
Type and element of
building services system in
high-rise building.
Design consideration for
the building services
system.
Building services cost
element & approach to
preparing building services
cost.
Problem in managing
building services cost.
Factor affect trend of
building services cost in a
building.
Parameters
establish trend
of building
services cost
(Objective 1)
Potential
determinants
that justify
the trend of
the building
services cost.
(Objective 2)
Building
services
system
Building
services
costs
17
2.2 Definition
Definition for the same word might be different according to research field and
purposes. Essential terms needed to be clarified are “Trend”, “Cost”, “Building
services engineering” and “High-rise building”.
2.2.1 Trend
Trend is defined as a form of gradual change in a condition, output, or process,
or an average or general tendency of a series of data points to move in a specific
direction over time, represented by a line or curve on a graph (B. Dictionary, 2017).
2.2.2 Cost
Based on the Oxford Living Dictionaries (2017), the cost can be defined as an
amount that has to be paid or spent to buy or obtain something. Cost also has been
defined as the amount of money, time and resources associated with the procurement
process. For building contractor, cost represents all those items include under the
heading of his expenditure (Ashworth & Perera, 2015).
According to Marsh (2003), the costs associated with building services can be
divided into two distinct categories as shown in Table 2.1.
18
Table 2.1: Categories of cost (Sources: Marsh, 2003)
Categories of cost Definition
Capital costs All costs encountered with the initial design, procurement,
installation, and commissioning. These can range from 15% of
the total project cost for a simple industrial unit to 80% for
complex medical and computer suite installations.
Life cycle cost The whole costs involved with function, maintenance, interval
substitute and renovation, and decommissioning. Energy
expenditure will be the significant portion of this cost.
Although subjective, it is typically considered that up to 90%
of the running cost of the building is attributable to the
operation of the building services.
2.2.3 Building services engineering
Building services engineering, commonly abbreviated to 'engineering services',
comprises all the engineering systems connected to building excluding civil and
structural engineering.
Marsh (2003) has pointed that building services have the following
characteristics:
• Connected parts of other systems and environments.
• A complex, specialised, organisational and institutional sub-system.
In general, the building services element includes two main components
namely the mechanical and electrical (M&E) components. The components include
19
the plumbing installation, electrical installation, air-conditioning, heating ventilation,
lift installation, firefighting and communication installation (Olanrewaju & Anahve,
2015).
2.2.4 High-rise building
A building with the vertical height over 75 feet can be deemed as high-rise
building. High rise-building is approximately with 7 to 10 stories reliant on the floor
height of the building. The building is measured from the bottommost floor to the
topmost floor (Hall, 2013).
According to Chllinger (2008), the building with the multi-story construction
and mainly rely on lifts to move to other floor is named as a high-rise building. Besides,
high-rise building also offers a huge occupying place inside a relating small ground
area.
According to Lotfabadi (2014), there are some benefits of high-rise buildings
as stated below:
• Reducing the material used for the same type of plan layout.
• Sizable quantity which led to lower construction costs in total.
• Higher possibility to reduce energy consumption and construction wastage.
• High-rise buildings require a smaller amount of land for construction.
• Optimize the utilisation of natural lighting and thermal source.
20
2.3 Building services system
In this section, type and element of buildings in high-rise building are discussed.
Other than that, design consideration for building services system also studied. These
are the important parameters to establish the trend of services cost.
2.3.1 Building services system in high-rise building
Building services system in high-rise building comprised mainly the cold-
water supply system, ventilation system, sanitary plumbing and electrical distribution
system, lift system and fire safety system.
2.3.1.1 Cold water supply system
Firstly, water distribution system comprised of joint facilities that function to
distribute water from its resource to the users in a building (Adeosun, 2014).
Geography, location and size of the distribution area, elevation, and situations on site
are the factors for selection of the type of water supply distribution system. Gravity
system pumped system, combined gravity and pumped system water are the
mainstream type of supply distribution system (Elojti, 2011).
Communication pipe is functioning to connect water distribution system and
water mains to a building. In a typical manner, communication pipe located inside the
site border from the water mains to the water authorities cock (Fussell, 1976). The
21
common types of cold water supply system within a building are a direct and indirect
system (Muscroft, 2007). A direct system means all the cold-water draw-off point in
the building supplies directly from the supply main. On the other hand, there is only
one draw-off point is supplied from the mains supply and the others supplied by cold
water storage cistern in the indirect system (Treloar, 2011).
For high-rise buildings, there is a common issue of low mains pressure to
distribute water wholly to the upper floors. Therefore, supply water to the topmost
floor by a pump from a storage tank is required and the number of tanks required might
be more than one as the number of floor stories increase (Greeno & Hall, 2009). There
are two types of pumps, the direct boosting and indirect boosting system. Indirect
boosting systems are more popular than the direct boosting system. This is because
the direct boosting system is rarely permitted by water authority as they lower the
mains pressure offered to users and there is increasing chance of backflow (Garrett,
2008).
2.3.1.2 Electrical supply and distribution system
Firstly, electric power generating companies supply electrical power into the
national 500kv or 275kv grid system of overhead bare wire conductors. The high
voltage is applied to reduce the current passed through the cables over long distances.
Step down transformers lower the voltage to 132kv for large power consumers such as
industrial consumers and steps down to 240v for hospitals, schools, residential areas
and shops (Tenaga Nasional Berhad, 2007).
The endpoint of electricity distribution electricity is from the end user unit to
familiar domestic output appliances, such as power sockets outlet and electric lighting.
22
There are three types of wiring circuit which are lighting, ring main and spur outlets
(Muscroft, 2005).
In the case of a high-rise building, the requirement could be regarding 1 to 2
megawatts depending on the number of apartments. The M&E engineer must
appropriately design the feeders and the outgoing cables to make sure suitably stable
on all the three phases, and all user acquire stable voltage at his apartment unit (Raju,
2015).
2.3.1.3 Sanitary pipework and appliances
Sanitary pipework is a system of above-ground drainage designed to remove
all the foul and wastewater to the below-ground drainage system (Treloar, 2011).
Discharge pipes carry foul water and solids from the various sanitary appliances within
the building to the external drainage installation (Fussell, 1976). The primary function
of sanitary pipework system is to remove waste water from the building as quickly and
quietly as possible to prevent nuisance or danger to health (Blower, 2002). Sanitary
appliances can be broadly divided into two groups, those used for washing purposes
and those used for the removal of human excreta (Treloar, 2011).
There are three primary systems in use, these being the ventilated discharge
branch system, the primary ventilated stack system, and the secondary ventilated stack
system. For high-rise building, secondary ventilated stack system is employed. In the
secondary ventilated stack system, only the main discharged stack is ventilated, to
overcome pressure fluctuations (Treloar, 2011). According to an investigation
conducted by Cheng et al.(2005), findings show that secondary ventilated stack system
is commonly applied in the high-rise buildings in Taiwan.
23
2.3.1.4 Fire safety system
Fire safety system includes fire alarm system and fire-fighting system. The
definition of fire alarm system is the systems function to warn the residents of the
building about the occurrence of fire accident within the buildings. This system
comprises of fire alarms, fire detection equipment, and link to remote stations. Besides
that, the fire-fighting system includes equipment like fire hose reels and sprinkler
system which prepares for occupants within building and function as fire-fighting
purpose (Tharmarajan, 2007).
In the starting phase of fire accident, hose reel system is prepared for resident
to utilise for fire-fighting purpose. This system includes hose reel pumps, fire water
storage tank, hose reels, pipework and valves (Soh et al., 2011). Besides, the primary
function of the sprinkler system is to detect, control and snuff a fire, as well as to alert
the residents about the incidence of fire. Sprinkler system includes fire pumps, water
storage tanks, control valve sets, sprinkler heads, pipework and valves (Soh et al.,
2011).
According to Uniform Building By Law (2012), high-rise building should
consist of fire-fighting access lobbies, fire-fighting staircases, fire lifts and dry or wet
riser. The primary function of wet risers is to provide water sources to firemen and
continue to fill with water which includes duty fire pump with standby pump, riser
pipe and landing valves (Soh et al., 2011).
24
2.3.1.5 Ventilation system
Ventilation system function to deliver fresh air to allow people and processes
function. A ventilation system comprises a source of fresh air and a means of
distributing it to the required space. Ventilation system range from natural ventilation
to full mechanical ventilation (Portman, 2014). Normally, ventilation system is
installed for car park in the podium of the high-rise building.
2.3.1.6 Lift system
Lift system supports the movement of people and goods between different
levels of a building (Portman, 2014). According to Barney et al.(1977), the lift stated
the vertical conveyance that been created to convey the resident or the physical object
from one floor to another floor. Lift is vital for the high-rise building which deemed
as an essential building services system for it. Furthermore, lifts are compulsory in
the high-rise building to comply with the rules of the fire department (Mohamed
Rashid Embi, 1989).
2.3.1.7 Security system
According to Yeang (1996), the access control and alarm monitoring system
can be a fully supervised, digital multiplex and interfaced to the closed-circuit
television (CCTV) system. This system makes provision for alarm call up and
initiation of real-time video recording for overhead security cameras associated with
alarms. The CCTV system can be solid-state electronics or colour cameras and
25
monitors installed at all entrances, elevator lobbies, main building lobbies and areas of
refuge in high-rise building.
2.3.2 Element of building services system
Building services system can be classified into different elements which relate
to different natures of building services system in a building. Elements of the system
are plant and equipment (source), services run (distribution) and appliances (outlets
and control) (Ganiyu & Fikri, 2015).
2.3.2.1 Plant and equipment (Source)
Installation expense on plant and equipment contribute to a significant part of
the building services budget (Ganiyu & Fikri, 2015). There are around 60% capital
costs for building services system go to sizable plant and equipment (Swaffield, 1998).
The expense of sources is around 25 to 70 percent of the building services budget
which reliant on the scope of the project (Potts, 2008). According to Swaffield (1998),
capacity and quantity of plant and equipment also affect the capital cost of building
services system. The purpose of the building and the design specifications related to
all services element are the critical elements to establish the fee for the plant and
equipment (Matthews & Howell, 2005). It is critical to study against capital cost
reductions to accomplish the desirable design solution for the building and fulfil the
client's need for maintenance costs for an extended period (Swaffield, 1998). A
particular design resolution raise the capital cost of building services system but could
notably decrease the maintenance cost. Hence, before the precise cost could be
26
decided and preceding the installation, it is necessary that M&E engineer provide
sufficient information.
2.3.2.2 Service run (distribution)
The distribution component in all building services system means the route
from beginning to end which the production from the equipment (source) element
conveyed to its outlet points (Swaffield, 1998). Service run deems as the medium
through which the productions of the equipment transmitted to the final point. For
instance, water supply from "source", should be "distribution" to the water tap. This
"distribution" in this case are pipes with fittings. Therefore, distribution costs of water
supply installations should comprise costs of pipes with fittings. Besides that, cables
with conduit pipes are applied to allocate electricity to different outlets and lighting
points (Ganiyu & Fikri, 2015).
2.3.2.3 Appliances (outlet)
“Outlet” was the element that represent the facility serviceable to the residents
for instance, the radiators that allowed the "heat" generate by a boiler, and delivered
through pipework, to be " utilised " by the residents (Swaffield, 1998). The appliances
are the final point of distribution of a building services system where the residents can
utilise the services output (Ganiyu & Fikri, 2015). In electric supply system, socket
outlets deem as appliances which allowed electricity produce and allocated to be
"utilised" (Swaffield, 1998). Besides that, diffuser in air conditioning system deems
as the appliances which released conditioned air after it produced by the chillers and
conveyed by air-handling unit via air conditioning ducts. Appliances are usually
27
taking off in quantity of numbers based on the instruction in the standard method of
measurement (Murray, 1997).
2.3.3 Design consideration for building services system
Design consideration of building services system is vital to make sure the
building services system can fulfil the requirement of client. Fulfilling the needs of
the client is the most critical part of the design, and all needs are always put in the
priority at all times despite the performance of a system (Bownas & Bownass, 2001).
The design consideration is indirectly giving an impact on building services cost.
2.3.3.1 Maintenance
Ignorance of the maintenance issue related to plant and equipment in building
services system caused the system failure with the high possibility (Lam, 2000).
Besides that, it also caused the huge amount of buildings operating cost which spent
on the current maintenance of building services. According to Lam (2000), the
primary obligations of an M&E engineer is to integrate necessary facilities for services
to be maintained in their designs. M&E engineer is also accountable for improving
systems that need low maintenance and allowing ease to entrance for maintenance
when needed. Maintenance is a crucial part of design consideration because most of
the client are tending to have low maintenance cost for building services system.
28
2.3.3.2 Energy efficiency
Marsh (2003) expresses that the design and technology of building services
may changed due to sustainability issue and intention to accomplish lower energy
consumption target. There are a growing number of client intent to conduct the project
with sustainable principle (Lam, 2000). Therefore, design solution of building services
influent by the sustainable principle directly. For instance, solar thermal is one of the
most cost-effective renewable energy technologies. Solar water heating is one of the
most popular solar thermal systems for a building (Wang et al., 2015). Thus, energy
efficiency and sustainability principle are the trends for building service design and it
is an important consideration for the client.
2.3.3.3 Location and access to plant and equipment
There are some details which are required by M&E engineer to study further
regarding the position and entry of main apparatus plan to install within a premise.
M&E engineer should provide an extra note on the drawing if sizable equipment plans
to be installed within the building and it needs to deliver to the site early before the
structure frame and have been constructed (Yanez, 2011). Location and access to plant
and equipment are important design considerations for the client in order to avoid
unnecessary demolition of work and the issue of variation order.
2.3.3.4 Building Codes & Standards
Building codes and standards specify the instructions and regulations which to
be followed by all construction parties while planning and constructing for all new
29
buildings and renovation work. According to Bownas & Bownass (2001), building
codes are strict and up-to-date documents with regular adjustments from analysis on
existing buildings. For instance, Malaysian Standards (MS) for fire safety in building
are mentioned in the Uniform Building By-Laws (1984), Building (Federal Territory
of Kuala Lumpur) By-Laws (1984), and Fire Services Act (1988). These laws and acts
also comprise requirements for room plans, the requirement of fire extinguishing
methods and systems, fire resistance of materials, and design practices. Thus, building
services engineer should take consideration of building codes in their design solution.
2.3.3.5 Whole Life Cost
The whole life cycle costs provide a building services designer as a cost-
effective evaluation of competing for design options, studying all significant
possession costs over the functioning life of each option, stated in corresponding
economic value (Marsh, 2003). March (2003) also noted that, whole life cost
evaluation offers an actual amount and recognising building services systems actual
cost. Generally, the operation and maintenance costs higher than initial construction
cost around tenfold. Therefore, study and evaluate the whole life cost for a building
services system are essential parts for selection of appropriate equipment during the
early design stage. If M&E engineer only takes consideration of the initial installation
cost of a system, it probably cause a high operation cost of building services system.
2.3.3.6 Safety
Health and safety issue in construction industry usually is a critical issue which
concerned by all parties in the industry. Safety is one of the critical design principal
that require an M&E engineer to study further to make sure the building services
30
system can install, function or maintain in a safer means (Yanez, 2011). Integrate a
risk evaluation and safety management into the early design stage of a project can
generate a safer nature with low the number of accidents, injuries, and illnesses
(Christensen, 2010). Therefore, the design consideration for safety is essential to
ensure client not suffer unnecessary cost for remedy of injuries.
2.3.3.7 Quality
Quality in building services system means that a system fulfils the requirement
of the client (Marsh, 2003). The quality of the design is evaluating the competence of
the building services system to achieve its needs. Quality of a building services system
concerned about the impeccable of the system, maintainable of a system, offer function
on time, value for money, easy for maintenance, consistent of systems, and fulfilling
all requirement” (Marsh, 2003). The opinions from majority client shows that the
traditional procurement system delivers a high level of certainty that quality and
operation of a building services system will be achieved (Masterman, 2002).
Therefore, the quality of a building services system should be taken into consideration
because different quality required by the system will give an impact to initial cost.
2.4 Building services cost
Building services cost element, approach to preparing building services cost,
the problem in managing building services cost and factors affect the building services
cost are discussed in this part. All of those are the main reference to be used in the
interview.
31
2.4.1 Building services cost element
There are several cost elements involve in the building services system.
According to Carr (1989), the cost of construction items can be categories to direct
costs and indirect costs. The direct costs include material cost, labour cost and
equipment cost whereas the indirect costs are also called as overhead costs. On the
other hand, Geddes & Williams (1996) has stated that the major cost element for
construction works consists of material cost, labour cost and plant cost.
2.4.1.1 Material cost
Material cost is an essential element for building services cost in a building.
According to Geddes & Williams (1996), in order to determine the material cost, apart
from quantity, the availability of supply delivered to site at regular interval, the cost of
delivering the materials, double handling (if any), unloading, dumping, stacking,
reloading and distributing to the working place shall be considered. The most effective
way to obtain the material cost is by requesting a quotation from the suppliers. Within
the context of requesting a quotation, Campbell (1988) suggest that the quotation
should be requested earlier before the estimation process to ensure an accurate
estimated cost produced by the quantity surveyors.
There is different material required in different building services system. For
instance, pipe is essential material for cold water supply system in a building (Smith,
2005). Material cost increases in different type of building services system as shown
in Table 2.2 and Table 2.3. The increase of material cost for building services system
are affected the initial construction cost of building services system.
32
Table 2.2: Material price for plumbing works in Johor (Source: CIDB, 2017)
Year Galvanised Iron
Pipes, Class B25mm
Diameter
(Maruichi), MS863
(RM/6m run)
PVC Pressure Pipes
Class D Grey Colour
- 50mm Diameter
(paling), MS628
(RM/4m run)
HDPE Pipe PN 16
50mm Diameter,
MS 1058
(RM/100m roll)
2017 87.13 46.67 530.00
2016 87.13 40.03 530.00
2015 64.31 33.92 507.03
2014 60.67 32.33 467.67
The material price for plumbing works and sanitary fitting in Johor showed
upward increment as indicated in Table 2.2 and Table 2.3.
Table 2.3: Material price for sanitary fitting in Johor (Source: CIDB, 2017)
Year Fibre reinforced
plastic sectional tank –
1000 litre / 220
gallons, Mui Tank. 6
Panels (RM/number)
Wash Hand Basin
560mm x 406mm,
white colour,
Jacqueline WB,
Claytan (RM/set)
Water Closet
Western Type- WC
644, white colour
without cistern,
Claytan (RM/item)
2017 1900.00 110.00 213.33
2016 1900.00 92.67 178.67
2015 1890.33 83.74 158.65
2014 1750.00 79.00 149.67
33
2.4.1.2 Labour cost
Besides that, labour cost also is the critical element for building services cost.
Labour cost is the cost consumed to pay for the labour wages related to the trade item.
According to Geddes & Williams (1996), apart from the direct labour cost related to
the trade items, the cost of labour must include the cost of supervision. Typically, the
labour cost is obtained by multiplying the labour constant per hour with the current
labour rates per hours. The labour constants and labour rates are usually obtained from
data provided by the certain board of statistics or professional organisations.
Different type of worker required in installation work for different type of
building services system. For instance, plumber is essential in installation work for
cold water supply system for a building (Clark, 1963). Different type of worker
required in installation work for building services system increases as shown in Table
2.4. The increase of labour cost for building services system are give an impact to
initial construction cost of building services system.
Table 2.4: Labour wage for wiring installer and plumber in Johor (Source: CIDB, 2017)
Year Building Wiring Installer
(Semi-skilled Local
Installer)
(Wage/day)
Plumber - Building & Sanitary
(Skilled Local Plumber)
(Wage/day)
2017 94.55 98.65
2016 90.00 93.00
2015 90.00 95.00
2014 88.50 92.00
2013 87.00 89.50
34
2.4.2 Approach to prepare building services cost
The first cost estimation of building services component prepares for the client
in the design phase is generally based on the gross floor area of the building.
According to questionnaires survey conduct by Swaffield (1998), it shows that 91% of
quantity surveyor firm prepare their estimated initial building services cost with
estimates on cost per m2 gross floor area and 71% of mechanical and electrical
engineering firm used cost per m2 gross floor area as a basis for their initial building
services cost estimation.
Building services element is handled on the basis of outline drawings and
eventually priced as a lump sum contract or cost reimbursable contract which subjects
the quantity subject to re-measurement (Olanrewaju & Anahve, 2015). The
approaches applied for the main building structure components were probably not
suitable for the building services component, and the most suitable methods for it
seemed to involve the respect of variables that influenced the design of building
services system (Swaffield, 1998).
However, the building services work with the lump sum or cost reimbursable
method is incompetent in existing construction industry (Olanrewaju & Anahve, 2015).
Clients in the construction industry are gradually feeling unpleasant about the
incapability of quantity surveyors to present convincing and precise costing for the
project result from using lump sum methods to estimate building services element
(Olanrewaju & Anahve, 2015).
35
2.4.3 Problem in managing building services cost
According to McCaffrey (2011), the problems which faced by quantity
surveyor in managing the cost of building services project is inadequacy of design
information; no involvement of building services contractor in early design stage;
coordination of building services; coordination of design and cost controlling of
services and commissioning. Besides that, lack of generally accepted SMM for
building services element is also one of the problems in managing building services
cost (Ganiyu & Fikri, 2015).
2.4.3.1 Lack of generally accepted SMM for building services element
Measurement and taking off quantity practice for building element based on
the instructions of the standard method of measurement (SMM) is the most significant
task of quantity surveyors (Ashworth & Skitmore, 1999). However, this practice
seldom applied in measurement task for building services elements (Olubola & David,
2008). Malaysian Standard Method of Measurement of Building Works Second
Edition (SMM2) comprise the instructions for measuring building services element
where sections Q (plumbing and mechanical installations) and R (electrical
installations). However, quantity surveyors simply allow prime cost sums for building
services element and the instruction in SMM2 are not implemented by them (Kumar,
2009). Besides that, M&E engineer who is responsible for controlling the building
services cost is not familiar with the instruction of actual SMM cause the situation
more worsened (Yusuf & Mohamed, 2012).
Consequently, different consultants applied different methods, terms and
naming conventions thus measurement of building services element is not regulated
and there is no consistency in practice (Sabaria, 2009). The negative impact of the
36
existing practices in cost management of building services are disputes in identify the
final quantity of work, the problem in deciding the value of variation works, problem
in determining the actual quality of work expected at tender stage and difficulties in
tender evaluation (CIDB, 2009; Entrusty Sdn Bhd, 2011). There are around 10 to 70
percent differences between initial and final contract amount of building services are
reliant on the complexity of projects. The adverse effects include clients dissatisfied
with the performance of quantity surveyor and non-accessibility of trustworthy cost
information from previous projects.
2.4.3.2 Inadequate design information
Murray (1997) found that inadequate design information is one of the main
factors obstructing the management of the building services cost. Michie (1981) found
that architect’s knowledge and experience in building services is inadequate and client
normally employed the M&E engineer during the later stage of design have caused the
incomplete of design. The preparation of bill of quantity only can be initiated once
certainty has been established in the design process. Therefore, the estimations
generated from an incomplete project data can’t ensure the particulars are accountable
for accuracy (Potts, 2008).
2.4.3.3 Inability of quantity surveyors offer cost advice on building services
Clients in the construction industry are gradually becoming unpleasant with the
inability of quantity surveyors to offer convincing and precise estimation for their
project result from applied lump sum methods to estimate building services cost
(Olanrewaju & Anahve, 2015). This is because of lack necessary practical expertise
37
by quantity surveyors in the knowledge of building services. Similarly, M&E engineer
is not familiar with the preparing required tender documents for the procurement of
building services (McCaffrey, 2011). Therefore, the inability of quantity surveyor to
provide a precise estimation of building services element has caused the cost certainty
can’t be achieve in early stage of design.
2.4.3.4 No involvement of building services contractor in early design stage
Pavitt & Gibb (2003) believed that no participation of specialist contractors in
the early design stage always lead to a critical problem during the on-site construction
stage, specifically at the interface between the M&E engineer and building services
contractor. Building services contractors obtain information from the main contractor
of the project directly and develop client requirements at their company level without
the idea from the client also M&E engineer. Consequently, there are many useful
suggestions are keep back by building services contractors in order to secure a
competitive advantage during the tender stage. This situation has caused problems for
M&E engineer in enhancing and improving the design solutions and to prepare more
accurate estimation. The preparation of bill of quantity cannot be completed due to
the lacking of certainty in the design (Potts, 2004). Therefore, if the cost certainty of
building services element cannot be achieved, it exposed client to design risk.
2.4.3.5 Poor coordination at pre-installation stage
Building services industry involves many parties from different professions
such as M&E engineer, quantity surveyor, main contractor and specialist sub-
contractor. Critical coordination issue may occur because of this high interdependent
38
relationship between all parties that are execution work parallel and competing for site
resources (Ballard et al., 2002; Riley et al., 2005). The poor coordination process is
causing the conflict of on-site building service tasks such as the discrepancy piping
layout between drawings (Yusuf et al., 2012). The architects is facing a great
challenge in satisfying the management task as the building services system become
more complicated while they have not enough experience and knowledge to handle
issue related to building services (Michie, 1981). According to Baldwin & Chan
(1994), the possible parts of conflict causing from lack of coordination as follows:
• Services element contradictory to the structural frame.
• Differences in size as specified in various drawings.
• Inappropriate reservation of holes.
• Divergences between other building services.
• Discrepancies between the sizes of the plant on site and the
information provided in the complete design.
• Discrepancies between the position of plant and the information
provided in detailed design.
• Inappropriate procedure for the arrangement of tasks.
• Problems in ascertaining the entry points and services.
• Problems in the installing of services.
• Not enough place for the accomplishment of adjoining finishing works.
• Trouble in checking, commissioning, and maintenance.
Therefore, discrepancies and conflict are lead to variation order issue.
According to McCaffrey (2011), the discrepancies and imprecise estimation are main
contractual cost problems that frequently happens in building services element.
Common influences of a variation order in building services element have been
recognized as the rise in project budget amount; rebuild and destruction and project
cannot complete on time (Manzoor Arain & Sui Pheng, 2005). According to
McCaffrey (2011), the argument between the main contractor and the client also
caused by inappropriate management.
39
2.4.4 Factor affecting the trend of building services cost
There are many factors affect the trend of building services cost. For instance,
the general standards of living improved, the request for more attractive and closely
managed internal environments, increase in technological and functional complexity,
and the requirement for better energy conservation (Smith et al., 2016).
2.4.4.1 Complexity of project
i) Organisational complexity
A complex organisational structure is one containing differentiated parts so
that the greater the differentiation, the more complex the organisation. The complexity
of organisation structure in building services industry means that it involves many
parties from different professionals such as a specialist contractor. This situation will
give a significant impact on initial cost from procurement viewpoint (Marsh, 2003).
This is because every party within the project claim for certain amount of profit
margins and handling costs from the client. Therefore, the lesser number of parties
included will cause the shorter the supply chain and reduce the capital cost of the
project. Hence, the building services industry involve increasing number of the
specialist contractor will give an impact on the capital cost of a project.
ii) Technology complexity
Technological complexity states to the variety or multiplicity of some aspect
of a task, such as:
40
• Number and diversity of inputs and outputs (Miller, 1959).
• Some separate and different actions or tasks to produce the end product of a
project (Bennett, 1991).
• Number of specialities involved in a project (CIOB, 1991).
With the improvement of technology in the construction industry and the
concern of environmental sustainability, building services systems is required to
supervisor the functionality. According to J. G. Smith & Hinze (2009), Building
Management System (BMS) provide a function to control the HVAC system remotely.
However, these systems require a high initial cost for installation. This system is more
suitable for high-function and intensive building such as industrial, education,
commercial building (Smith & Hinze, 2009).
iii) Functional complexity
Historically, building services engineering comprised mainly the heating,
lighting ventilation, plumbing and electrical distribution system. With the increase in
the functionality of buildings, there are now include intelligent building control system,
medical and laboratory gases system, communications and IT system, transportation
system and security system (Portman, 2014). With the increasing demands of the user
on building functionality, the building services component bears the major part of the
demand for better performance (Smith et al., 2016).
2.4.4.2 Design factor
High-rise buildings have become a prominent solution for increasing number
of the citizen in many capitals around the world. During the last decade, high-rise
buildings in the world are both rising in number and increasing in height (Wenjia,
2015). The changing in building height give an impact on the capital cost of building
41
services system. According to Smith et al. (2016), the changes in building height had
influenced the cost of a premise without changing the gross floor area. Those changing
in the cost per gross floor area were influences by services such as lift, services run
and waste piping which considered as the vertical element of building. For services
intensive buildings such as hospitals, laboratories are more noticeably affected.
Besides that, the volume to be cooled and heated may require a higher capacity cooling
and heating source to fulfil the function requirement. More expensive site lifts,
carnage and plant are required to move people and materials during construction stage
(Smith et al., 2016). Hence, the changing in story height give an impact on building
services cost indirectly.
2.4.4.3 General rise in standard of living
The definition of standard of living is the amount of money and comfort people
have in society (Cambridge Dictionary, 2017). The Indoor Environmental Quality
(IEQ) in a building is a significant part to identify the healthiness and comfort level
for the user (Jamaludin et al., 2016). Indoor Environmental Quality (IEQ) is closely
related to the building services system in a building. For instance, mechanical
ventilation system plays an important role in control relative humidity and fresh air
ventilation rates (Sulaiman et al., 2013). Based on the reason that standards of living
increased, client or users tend to demand ever higher standards of interior comfort and
ease of access and travel through a building (Smith et al., 2016). Therefore, a general
rise in the standard of living deemed as a potential factor affecting the building services
cost.
42
2.4.4.4 Desire for controlled internal environment
There are many elements that affect Indoor Environmental Quality (IEQ), the
three most significant being temperature, humidity and ventilation. Building controls
are critical to certify that buildings with high Indoor Environmental Quality (Fletcher,
1998). For instance, building automation system is a network of microprocessor based
wired or wireless controllers connected to diverse systems in a building to better
manage the equipment and optimise a company’s energy spend. With a clear view
and ease of control into the building’s systems, users can be beneficial from the
improved occupant comfort, efficient operation of building systems, and reduction in
energy consumption and operating costs (Eden, 2017). However, the initial costs for
building automation system are relatively high (Sridhar, 2016). Therefore, the
building automation system give cost impact on the capital cost of building services
system.
2.4.4.5 Greater energy conservation
It is unlikely to have major changes in building services technology before the
end of the decade. The current drivers of change are mainly the sustainability the
seeking of lower energy consumption and the combining of controls and information
technology (Marsh, 2003). Solar thermal is one of the most cost-effective renewable
energy technologies, and solar water heating is one of solar thermal systems for a
building. However, the installation cost of the solar water heating system is high
compared to the conventional water heating system (Wang et al., 2015). Therefore,
the energy conservation technologies will give cost impact on the capital cost of
building services system.
43
2.4.4.6 Attitude towards whole life costs
According to Marsh (2003), whole life cost analysis presents an actual
evaluation of a building services systems actual cost as the operation and maintenance
costs make up ten times the initial construction cost. A lower initial cost of equipment
is possible to cause higher operating cost in the long term because it will be less
efficient to function (Yanez, 2011).
According to Maver (1971), client and M&E engineer only take consideration
of capital cost in designing building services systems is unwise. M&E engineer should
evaluate a system with lower operational costs and advised client to install such system
by proving that it provides good value for money in the long term (Yanez, 2011).
Therefore, client’s attitude toward whole life costing give an impact to initial
construction cost of a building services system.
2.4.4.7 Cost of construction material
Factors affecting material cost are currency exchange, supply and demand of
material, material specification, inflation and accessibility of new materials in the
country (Eshofonie, 2008). The increment in steel bars prices in the year 2004 has
resulted by manufacturers export their product to the foreign country and caused prices
higher than the controlled price of steel bars (Utusan Online, 2004). Property
developers are expected to incur 5% to 10% higher costs for construction materials
and consultancy services due to the ringgit’s poor performance (The Malaysia Reserve,
2017). Therefore, the cost of construction material for building services system also
affected and deemed as a potential factor affecting the trend of building services cost.
44
2.4.4.8 Amendment of building regulation
M&E engineer must make sure their design to adhere to the requirements of
the authorities within the state for which the building is to be constructed. According
to Uniform Building By Law (2012), high-rise building should consist of fire-fighting
access lobbies, fire-fighting staircases, fire lifts and dry or wet riser in Malaysia. The
building regulation is updated as per required by a panel of industry professionals,
academics, government representatives, and representatives from different states
(Chong, 2013). The changes in statutory and legal requirement affect the initial
construction cost of building services system.
2.5 Summary of Chapter
In this chapter, types an element of building services system in high-rise
building have been discussed in general to provide a clear image about the building
services system in a high-rise building. Besides that, design consideration for the
building services system also has been discussed. All of those are the significant
parameters to establish trend of services cost.
On the other hand, factors affect the trend of building services cost has been
discussed and used to formulate the questions in the interview. Besides that, building
services cost element, approach to preparing building services cost and the problem in
managing building services cost have been studied. This useful information from the
previous study are the primary reference to be used in the interview.
45
CHAPTER 3
RESEARCH METHODOLOGY
45
CHAPTER 3
3. RESEARCH METHODOLOGY
3.1 Introduction
This chapter described the methodology of the study. Research Methodology
help indicates the designed route of flow how the research objective to achieved. A
series of smooth procedures shall be designed to reach the targeted objectives. The
distinction between the research methodology and research method is essential
because research methodology is a whole process of research. However, the research
method only merely depicts in the way of data collected. In this chapter, the discussion
are based on research approaches, research instruments and its key measurement, data
collection, data analysis and conclusion.
46
3.2 Research Methodology
Research methodology is a systematic way to carry out study to solve a
problem (Rajasekar et al., 2006). The research methodology designed into five stages
which are:
i) Preliminary study,
ii) Literature review,
iii) Data collection,
iv) Data analysis,
v) Conclusion and recommendation.
3.2.1 Stage 1-Preliminary study
First, this study started by examining the current issues related to the
construction industry through various supplements and resources such as journals,
articles, newspaper and magazines. Once the issues had been investigating, the
following step was further discussed, and the particular problem statement developed.
Then, the research aim and objectives were formed and had been following by the
establishment of the scope and significance of the study.
The problem statement signifies the core reason reinforced to the study, and it
should resolve the issues and uncertainties arose. The problem statement is crucial
and critical for the analysis in the study itself, and the study will be beneficial for the
body of acknowledgement improvement (Chua, 2011).
47
3.2.2 Stage 2-Literature Review
As the study topic and scope of study has been confirming, a literature review
was carried out to discover the related topic. Some terms, such as trend, cost, building
services engineering and high-rise building have been defining and explained to gain
further understanding. Those sources of data were obtained from database links
through Perpustakaan Sultan Zanariah (PSZ) website, Science-Direct online database,
past thesis, journals, and books from PSZ.
The contents of the literature review produced after discussion with the
supervisor. The contents divided into six main parts that are the definition of terms,
the building services system in high rise building, element of building services system,
design consideration for building services system, the problem in managing building
services cost, and determinant affecting building services cost. All components of
literature review function as supporting ideas to support the study title.
3.2.3 Stage 3-Data collection
The third stage of research methodology discussed the technique applied in this
study. This stage is lead the researcher to achieve the objective as stated in Chapter 1.
The research design carried out before the process of collecting data. The purpose of
the research design is to ensure that the researcher can understand the process of
research in detail. Wisker (2007) clarified that there is two type of research method
which is a quantitative method and qualitative method.
48
3.2.4 Stage 4-Data Analysis
After the data has been collecting, the process of analysing data was carried
out. Data analysis is the conversion of raw data into useful information (Naoum, 2007).
Data analysis is a procedure that needs to handle and arrange the raw data. The
researcher should keep an overall sense of the project continually moving between the
data and the research question, aims and objective (O'Leary, 2004).
3.2.5 Stage 5-Conclusion and Recommendation
After the process of data analysis completed, conclusion and recommendation
are processed. The chapter of conclusion and recommendation is the end product of
the study in this research, which was to conclude the investigation within the broader
context in the study of this research (Naoum, 2007). The conclusion deduced precisely
and systematically. Besides that, personal recommendations are provided by the
researcher as to what should and should not be done based on the study findings.
3.3 Research design
In this study, qualitative method used to collect the information and variables.
Features of the qualitative method are more subjective, speculative, flexible and
contextual (Silverman, 2000). Therefore, this research method was unstructured
systems in the way of acquiring data.
49
Besides that, the quantitative method tend to be more social or human problem.
Specific theories are tested by assessing to the relevance among variables in a
quantitative method. Hence, the data analysis is carried out in an assumption statistic
to obtain the relevant numerical data. Thus, the result of study would be in the pattern
of systematised and structured (Creswell, 2014).
3.4 Case study
Case study is a comprehensive study on a particular topic or phenomenon
(Shuttleworth, 2008). The advantages of carry out case study research method is to
discover new variables, investigate dominant variables in individual cases to identify
the underlying mechanism, develop explanations, achieve high validity for developing
ideas and visualise complicated relationship (Bennett, 2004).
In this study, only five (5) case studies high-rise residential project with seven
(7) respondents was selected and involved in the interview section. However, based
on O'Leary (2004), working with qualitative data is not so much dependent on
representativeness and sample size as they are on the ability of the researcher to argue
the relativeness of any sample even a single case to a broader context. The selected
respondents are the mechanical & electrical engineer who in charge of high-rise
residential building project, hence the quality of collected data can be ensured and
maintained.
50
3.5 Research Instruments
Research instruments refer to devices used to collect data such as document
analysis, semi-structured interview, questionnaires tests and checklists.
3.5.1 Document Analysis
The document analysis is a method of qualitative research in which documents
are understood and translated by the researcher to give opinion and meaning around
the research topic. Document analysis as known as content analysis which an
instrument for data collection which researchers are required to read, understand,
interpret and analyse the works carefully from relevance resources (Blaxter et al.,
2010). The document analysis is an investigation method which focuses on secondary
data material and documents.
Mayring (2002) proposed the process of document analysis in four following
steps:
Figure 3.1 Process of Document Analysis
Clear defined question
Definition of documents: what is a document?
Consideration about the documents relevance for the
defined question.
Interpretation of the document according to the
defined question with proposed checklist.
51
Document analysis implemented as data collection method of this study for
objective 1 as stated in Table 3.1. Building services (M&E) cost for high-rise
residential building obtained in contract document or final account from QS firm in
Johor Bahru.
Table 3.1: Approaches of Data Collection in This Research (Document analysis)
Objective Techniques Data Gathered Document
To analyse the trend of
services cost in a high-
rise residential building
Document
Analysis
i) Total Building
services cost.
ii) Breakdown
cost of different
building services
system.
iii) Gross floor
area of the
building.
i) Final account
prepared by a
quantity surveyor in
QS Firms.
ii)Contract document
prepared quantity
surveyor in QS
Firms.
For this study, study form RF/01 (refer to Appendices A) used as an instrument
for collecting all the data that required. Research form RF/01 is used to collect the
data for objective 1. Research form is used to collect the data, allow respondents to
fill in and ensure the data required is in organised form before data analysis. The
function of form is to record the total building services (M&E) cost and breakdown
cost of different building services system, the gross floor area of the building.
52
3.5.2 Semi-structured interview
The semi-structured interview are conducted by open-ended questions. It is a
face to face interview with the most efficient method utilised for gathering factual
information as well as opinions compared to the questionnaire. It is flexible in reword
questions and clarifies the terms that are not clear (Naoum, 2007). Based on O'Leary
(2004), the series of questions for the interview was the outcome of the discussion
from the supervisor and literature review. These open-ended questions allowed the
respondents to express their view freely during the interview. All the respondents are
present with the same question. By this, a variety of answers and views are obtained
for the same questions. Indirect questions are carried out in the starting of semi-
structured, to build up a rapport with the respondent.
Semi-structured interview is applied to collect primary resource whereby the
respondents are M&E engineer who incharge for case study project in this study.
Semi-structured interview are the research instrument that applied in this study for
objective 2 as stated in Table 3.2.
Table 3.2: Approaches of Data Collection in This Study (Semi-structure interview)
Objective Techniques Data Gathered Respondents
To determine the main
determinants that
justify the trend of the
cost of services in a
high-rise residential
building.
Semi-
structured
interview
Determinants that
justify the trend of
the cost of services
in high-rise
residential
building.
Mechanical and
electrical engineer
incharged for 5 high-
rise residential
building case study
project
53
The open-ended questions in the semi-structured interview are divided into
three sections, namely:
i. Section A: Interviewee Profile
This part of interview question is to identify the respondent’s designation and
background in the construction field. Therefore, the participated respondent’s
qualification in this study can be identified.
ii. Section B: General Information
This part of interview question is to identify the background information of
case study project. Therefore, the type of building services system for case study
project in this study can be identified.
iii. Section C: Determinants that justify the trend of the cost of services in a
high-rise residential building.
In section C, the questions are designed to meet the study objective, i.e., to
determine determinants that justify the trend of the cost of services in a high-rise
residential building. The questions were set up based on the literature review. These
questions were used for interviewing the respondent to investigate their view and
opinion to achieve the study objective. The respondents gave the right to express their
opinions.
54
3.6 Method of Data Analysis
Data analysis defined as the conversion of raw data into meaningful
information where such information is used to achieve the study objective. According
to Naoum (2007), after collecting all the information, it is tough to present and lay out
the information. Therefore, the data should be analysed to produce the key trends that
represent the entire data collection.
For this study, the data and information that obtained from respondents are
arranged, analyse and show in table and graph form to achieve objective 1. Tabulation
is the most straightforward method to organise all the data into a systematic form. This
method can ease the readers to understand. Table 3.3 and Table 3.4 shown the form
used to record and analyse data for objective 1. The expected data is record in Table
3.3 and Table 3.4.
Table 3.3: Form used to record and analyse data for objective 1
Building services cost in high-rise building (Cost per GFA)
Years Project
A
Project
B
Project
C
Project
D
Project
E
Project
F
Average
2012 250
250
2013 240
280
260
2014 270
270
2015
250
250
2016
280
280
55
Table 3.4: Form used to record and analyse data for objective 1
Years 2012 2013 2014 2015 2016
Cost per GFA 250 260 270 250 280
% Change 0 0.04 0.04 -0.07 0.12
The table above shows how the building services cost collected from QS firm
to be organised. The building services (M&E) cost collected based on the year as the
building services (M&E) contract sum are an award. Figure 3.2 shows the JKR tender
price index. The building services cost per GFA are adjusted to current year with
tender price index. Building services cost per GFA are adjust to tender price index by
applied formula below:
Adjusted cost per GFA on current year = (TPI base year/TPI current year)
*nominal cost per GFA current year
Figure 3.2 Tender price index
(Source: JUBM Sdn Bhd, 2014-2017)
56
After that, the percentage change calculated and record in Table 3.4. Next, all
the data converted into line chart to show the trend of services cost. Figure 3.3 shows
the expected building services cost in different years. The expected result that are
obtained for objective 1 which to analyse the trend of building services cost in high-
rise residential building.
Figure 3.3: Illustration of building services cost
The method which has been used to analyse the data to achieve objective 2 is
content analysis method. According to Majid (2006), notes from observations that
were transcribed and data from interview should be analysed and tabulated in the table
for data analysis. After collecting the raw data from the interview, the data analysis
was carried out by the following steps:
0%
4% 4%
-7%
12%
y = 5x + 247
-10%
-5%
0%
5%
10%
15%
235
240
245
250
255
260
265
270
275
280
285
2012 2013 2014 2015 2016
Building services cost in high-rise building (Cost per GFA)
Cost per GFA % Change Trend line
57
Step 1: Identify the main themes
Firstly, the researcher went through the descriptive responses given by the
respondents to each question through the transcripts of all interviews to understand the
meaning. Table 3.5 shown the sample of raw data collected in interview.
Table 3.5: Sample of Raw Data
Part of Interview Interview question Respondent’s Answer
A. Interviewee Profile
B. General Information
C. Determinants that justify
the trend of the cost of
services in a high-rise
residential building.
Transcript is analysis by NVivo software feature. This can identify the words
most frequently mentioned by respondents. The result indicated in word cloud based
on NVivo analysis feature. It can identify main themes or main ideas for certain topic.
Figure 3.4 shows the word cloud based on NVivo analysis feature.
Figure 3.4: Word cloud
58
Step 2: Classify responses under the main themes
Next, classify the responses or contents of the notes under the different themes.
For easily undertaking this thematic analysis, the computer program such as NVivo
and Microsoft Excel was used.
Step 3: Export the file in NVivo and analyse it into the text of the report
Lastly, export the file in NVivo and analyse it into the text of the report. After
that, the conclusion of the study was drawn in the next stage.
3.7 Research Flow
In order to achieve the study objectives, several data collection and analysis
method has been employed by the researcher including semi-structured interview and
documentary analysis, coding interview questions and content analysis by NVivo
software. Figure 3.5 shows the study flow for this study.
59
Figure 3.5: Flow Chart of Study Design
Qualitative Research
Research Instrument
Case study
5 high-rise
residential
building projects
Semi-
structure
interview
Document
Analysis
Determinants that
justify the trend
of building
services cost
Building
services cost in
high-rise
building
Objective 1:
To analyse the trend
of building services
cost in high-rise
residential building.
Objective 2:
To determine the main
determinants that justify the
trend of the building services
cost in high-rise residential
building.
Data Analysis
Conclusion and
recommendation
Developing themes
-Coding technique
Content Analysis
-NVivo, Ms Excel
Research Methodology
Final account or
contract document
prepared by a
quantity surveyor in
QS Firms.
Mechanical and
electrical engineer
incharged for high-
rise residential
building project
Respondents Document
60
3.8 Summary
In this chapter, the study approaches which are chosen for conducting this study
was determined. The research methodology is referred to certain research method and
techniques that planned to be used during the research to achieve objectives 1and 2 as
discussed earlier in chapter 1. The data collection methods are using the documentary
analysis and semi-structured interview. Upon receiving the returned interview
answers from the respondents, all the data were analysed with the aid of Microsoft
Excel and NVivo. Further findings were discussed in the following Chapter.
61
CHAPTER 4
ANALYSIS, RESULT AND
DISCUSSION
61
CHAPTER 4
4. ANALYSIS, RESULT AND DISCUSSION
4.1 Introduction
In this chapter, the results obtained from the five projects are presented and
analysed. In the first section, the background of the project together with the
respondent details are presented. In the second section, the trend of building services
cost in high-rise residential building are discussed and analysed. In the third section,
main determinants that justify the trend of the building services cost in high-rise
residential building are highlighted.
4.2 Background of the Project
In this section, the background of the five projects samples which have been
collected through document analysis are presented. The projects are Project A, B, C,
D, E. The following sub-section are discussed background of all case study projects.
62
4.2.1 Project A
Project A is located in Nusajaya, Mukim Pulai, Daerah Johor Bahru, Johor. It
is a construction of a residential complex which consist 2 blocks of 21 storeys and 2
blocks of 9 storeys residential apartment with 3 storeys of carpark. The total contract
sum for Project A is RM 185,867,863.40. The project duration is 22 months. The
mechanical & electrical engineer for this project is Jurutera Perunding Inspirasi Sdn.
Bhd. The background of Project A is shown in Table 4.1.
Table 4.1: Background of Project A
Item Detail
Mechanical &
electrical engineer
Jurutera Perunding Inspirasi Sdn. Bhd
Project title Proposed construction and completion of 12 & 24 storey
residential apartments (488 units) comprising of:
i) 2 blocks (A&B) of 9 storeys apartments-272 units
ii) 2 blocks (C&D) of 21 storeys apartments-216 units
iii) 3 storeys podium carpark with recreation facilities
in Nusajaya, Mukim Pulai, Daerah Johor Bahru.
Total building
services cost
RM 23,941,418.50
Tender date June 2011
Type of contract Basis of Bills of Quantities with quantities, Selective
Gross floor area 107,682m2
Total building services cost for project A is RM23,941,418.50. Total cost for
electrical installation form the highest portion of the building services cost compared
with the other type of building services. Total cost for electrical installation is RM
12,106,495.00 which is 50.6% of total building services cost for the project. However,
total cost sanitary appliances form the lowest portion of the building services cost
63
compare with other type of building services. Total cost for sanitary appliances is RM
1,300,288.50 which 5.4% of total mechanical and electrical cost for the project. Table
4.2 shows the cost breakdown for building services cost in project A with a gross floor
area of 107,682m2.
Table 4.2: Cost breakdown for building services cost in project A
Type of Building
Services Total cost (RM)
Percentage
(%)
Cost
per m²
of GFA
Position
(RM)
A Sanitary Appliances 1,300,228.50 5.4 12.07 5
B Plumbing Installation 3,687,673.00 15.4 34.25 3
C Air-conditioning & - - - -
Ventilation System
D Electrical Installation 12,106,495.00 50.6 112.43 1
E Fire Protection
Installation 2,140,174.00
8.9 19.87
4
F Lift & Conveyor
Installation 4,706,848.00
19.7 43.71
2
G Special Installation - - - -
Total 23,941,418.50 100 222.33 -
4.2.2 Project B
Project B is located in Mukim Bandar Johor Bahru, Daerah Johor Bahru, Johor.
It is a construction of a residential complex which consist 2 blocks of 24 storeys
residential apartment and 7 storeys of carpark. The total contract sum for Project B is
RM 159,799,876.00. The project duration is 24 months. The mechanical & electrical
64
engineer for this project is BES Perunding Sdn. Bhd. The background of Project B is
shown in Table 4.3.
Table 4.3: Background of Project B
Item Detail
Mechanical &
electrical engineer
BES Perunding Sdn. Bhd.
Project title Proposed construction and completion of 533 units of
residential apartment in Mukim Bandar Johor Bahru, Daerah
Johor Bahru, Johor, Malaysia.
Total building
services cost
RM 26,085,363.45
Tender date Dec 2012
Project’s Duration 24 months
Type of contract Basis of Bills of Quantities with quantities, Selective
Gross floor area 99,474 m2
Total building services cost for project B is RM26,085,363.45. Total cost for
electrical installation form the highest portion of the building services cost compared
with other type of building services. Total cost for electrical installation is RM
12,000,000.00 which is 46.0% of total building services cost for the project. However,
total cost for sanitary appliances form the lowest portion of the building services cost
compare with other type of building services. Total cost for sanitary appliances is RM
1,354,163.45 which 5.2% of total building services cost for the project. Table 4.4
shows the cost breakdown for building services cost in project B with a gross floor
area of 99,474 m2.
65
Table 4.4: Cost breakdown for building services cost in project B
Type of Building
Services Total cost (RM)
Percentage
(%)
Cost
per m²
of GFA
Position
(RM)
A Sanitary Appliances 1,354,163.45 5.2 13.61 6
B Plumbing Installation 3,800,000.00 14.6 38.20 3
C Air-conditioning & 2,231,200.00 8.6 22.43 4
Ventilation System
D Electrical Installation 12,000,000.00 46.0 120.63 1
E Fire Protection
Installation 2,080,000.00
8.0 20.91
5
F Lift & Conveyor
Installation 4,620,000.00
17.6 46.44
2
G Special Installation - - - -
Total 26,085,363.45 100 262.23 -
4.2.3 Project C
Project C is located in Taman Kempas Utama, Mukim Tebrau, Daerah Johor
Bahru, Johor. It is a construction of a residential complex which consist 2 blocks of
18 storeys residential apartment with 7 storeys carpark. The total contract sum for
Project C is RM 296,400,000.00. The project duration is 33 months. The mechanical
& electrical engineer for this project is Perunding Yuli. The background of Project C
is shown in Table 4.5.
66
Table 4.5: Background of Project C
Total building services cost for project C is RM 42,534,894.00. Total cost for
electrical installation form the highest portion of the building services cost compared
with other type of building services. Total cost for electrical installation is RM
22,000,000.00 which is 51.6% of total building services cost for the project. However,
total cost for swimming pool M&E equipment installation forms the lowest portion of
the building services cost compare with other type of building services. Total cost for
swimming pool M&E equipment installation is RM 33,000.00 which 0.1% of total
building services cost for the project. Table 4.6 shows the cost breakdown for building
services cost in project C with a gross floor area of 157,049 m2.
Item Detail
Mechanical &
electrical engineer
Perunding Yuli
Project title Proposed construction and completion of phase 1 development
of residential apartments comprising 941 units in Tower A and
849 units in Tower B, part of level 1 to level 6 carparks one
level of sub-basement carparks at lower ground floor, one level
of facilities floor at level 7, ancillary buildings and external
works in Taman Kempas Utama, Mukim Tebrau, Daerah Johor
Bahru, Johor, Malaysia.
Total building
services cost
RM 42,534,894.00
Tender date July 2013
Type of contract Basis of Bills of Quantities with quantities, Selective
Gross floor area 157,049 m2
67
Table 4.6: Cost breakdown for building services cost in project C
Type of Building
Services Total cost (RM)
Percentage
(%)
Cost
per m²
of GFA
Position
(RM)
A Sanitary Appliances 2,112,524.00 5.0 13.45 5
B Plumbing Installation 7,300,964.00 17.2 46.49 3
C Air-conditioning & - - - -
Ventilation System
D Electrical Installation 22,000,000.00 51.6 140.08 1
E Fire Protection
Installation 3,358,406.00
7.9 21.38
4
F Lift & Conveyor
Installation 7,730,000.00
18.2 49.22
2
G Special Installation 33,000.00 0.1 0.21 6
* Swimming pool M&E
equipment installation
Total 42,534,894.00 100 270.84 -
4.2.4 Project D
Project D is located in Mukim Bandar Johor Bahru, Daerah Johor Bahru, Johor.
It is a construction of a residential complex which consist 1 block of 25 storeys
residential apartment with 7 storeys carpark. The total contract sum for Project D is
RM 176,000,000.00. The project duration is 30 months. The mechanical & electrical
engineer for this project is BES Perunding Sdn. Bhd. The background of Project D is
shown in Table 4.7.
68
Table 4.7: Background of Project D
Item Detail
Mechanical &
electrical engineer
BES Perunding Sdn. Bhd
Project title Proposed construction and completion of thirty three (33)
storey of building consist of one (1) level sub-basement
carpark and M&E, 1 level basement carpark and M&E, 6
level carparks, one (1) level of facilities floor, one (1) block
of twenty five (25) storey (461 units) apartment in Mukim
Bandar Johor Bahru, Daerah Johor Bahru, Johor, Malaysia.
Total building
services cost
RM 30,768,988.50
Tender date Feb 2014
Type of contract Basis of Bills of Quantities with quantities, Selective
Gross floor area 105,918 m2
Total building services cost for project D is RM 30,768,988.50. Total cost for
electrical installation form the highest portion of the building services cost compared
with other type of building services. Total cost for electrical installation is RM
16,000,000.00 which is 52.0% of total building services cost for the project. However,
total cost for swimming pool M&E equipment installation forms the lowest portion of
the building services cost compare with other type of building services. Total cost for
swimming pool M&E equipment installation is RM 280,000.00 which 1.0% of total
building services cost for the project. Table 4.8 shows the cost breakdown for building
services cost in project D with a gross floor area of 105,918 m2.
69
Table 4.8: Cost breakdown for building services cost in project D
Type of Building
Services Total cost (RM)
Percentage
(%)
Cost
per m²
of GFA
Position
(RM)
A Sanitary Appliances 1,468,988.50 4.8 13.87 5
B Plumbing Installation 5,400,000.00 17.5 50.98 2
C Air-conditioning & - - - -
Ventilation System
D Electrical Installation 16,000,000.00 52.0 151.06 1
E Fire Protection
Installation 2,320,000.00
7.5 21.90
4
F Lift & Conveyor
Installation 5,300,000.00
17.2 50.04
3
G Special Installation 280,000.00 1.0 2.64 6
* Swimming pool M&E
equipment installation
Total 30,768,988.50 100 290.50 -
4.2.5 Project E
Project E is located in Mukim Plentong, Daerah Johor Bahru, Johor. It is a
construction of a residential complex which consist Block A (36 storeys), Block B (39
storeys), Block C (42 storeys) of residential apartment with 4 storeys of carpark. The
total contract sum for Project E is RM 382,000,000.00. The project duration is 38
months. The mechanical & electrical engineer for this project is Perunding Yuli. The
background of Project E is shown in Table 4.9.
70
Table 4.9: Background of Project E
Total building services cost for project E is RM 74,151,351.90. Total cost for
electrical installation form the highest portion of the building services cost compared
with other type of building services. Total cost for electrical installation is RM
37,500,000.00 which 50.6% of total building services cost for the project. However,
total cost for swimming pool M&E equipment installation forms the lowest portion of
the building services cost compare with other type of building services. Total cost for
swimming pool M&E equipment installation is RM 618,000.00 which 0.8% of total
building services cost for the project. Table 4.10 shows the cost breakdown for
building services system in project E with a gross floor area of 242,748 m2.
Item Detail
Mechanical &
electrical engineer
Perunding Yuli
Project title Pembangunan Pangsapuri yang mengandungi:
A) 3 Block Pangsapuri Perkidmatan:
I) Block A: 36 Tingkat (335 unit)
II) Block B: 39 Tingkat (365 unit)
III) Block C: 42 Tingkat (434 unit)
B) 3 tingkat tempat letak kenderaan
D) 1 tingkat tempat letak kenderaan aras bawah tanah di
Mukim Plentong, Daerah Johor Bahru, Johor.
Total building
services cost
RM 74,151,351.90
Tender date Feb 2015
Type of contract Basis of Bills of Quantities with quantities, Selective
Gross floor area 242,748 m2
71
Table 4.10: Cost breakdown for building services cost in project E
Type of Building
Services Total cost (RM)
Percentage
(%)
Cost
per m²
of GFA
Position
(RM)
A Sanitary Appliances 4,306,351.90 5.8 17.74 5
B Plumbing Installation 13,568,000.00 18.3 55.89 2
C Air-conditioning & - - - -
Ventilation System
D Electrical Installation 37,500,000.00 50.6 154.48 1
E Fire Protection
Installation 5,555,000.00
7.5 22.88
4
F Lift & Conveyor
Installation 12,604,000.00
17.0 51.92
3
G Special Installation 618,000.00 0.8 2.55 6
* Swimming pool M&E
equipment installation
Total 74,151,351.90 100 305.47 -
4.2.6 Summary
Cost per GFA for building services system are different between case studies.
Table 4.10 shows cost per GFA for different building services system between case
studies.
72
Table 4.11: Cost per GFA for different building services system between case studies
Project A
2011
Project B
2012
Project C
2013
Project D
2014
Project E
2015
Type of
Building
Services
Cost per
m² of GFA
(RM)
Cost per
m² of GFA
(RM)
Cost per
m² of GFA
(RM)
Cost per
m² of GFA
(RM)
Cost per
m² of GFA
(RM)
A Sanitary
Appliances 12.07 13.61 13.45 13.87 17.74
B Plumbing
Installation 34.25 38.20 46.49 50.98 55.89
C Air
conditioning & - 22.43 - - -
Ventilation
System
D Electrical
Installation 112.43 120.63 140.08 151.06 154.48
E Fire
Protection
Installation 19.87 20.91 21.38 21.90 22.88
F Lift &
Conveyor
Installation 43.71 46.44 49.22 50.04 51.92
G Special
Installation - - 0.21 2.64 2.55
* Swimming
pool M&E
equipment
installation
Total 222.33 262.23 270.84 290.50 305.47
73
4.3 Overall trend of building services cost from case studies
Figure 4.1 shows the trend of building services cost between case studies.
Building services cost per m2 in project B increase 12% in the year 2012 compare with
project A. Thus, building services cost per m2 for project C increase with 1%
compared with project B in the year 2013. 5% of increases shown in project D
compared with project C in the year 2014. In project E, there was an increase of
building services cost per m2 compared with project D with 2% of the increase.
In overall, the building services cost per m2 indicates an increasing trend
across five case studies. Increase of building services cost per m2 in year 2012 (project
B) with highest percentage which 12%. The average building services cost per m2 is
RM294.60.
The trend line equation is y = 13.114x + 255.26. The number 13.114 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the building services cost per m2. Therefore, the trend of building services
cost is in an increasing trend.
Table 4.12: Adjusted building services cost per m2 GFA between case studies
Years 2011
(Project A)
2012
(Project B)
2013
(Project C)
2014
(Project D)
2015
(Project
E)
Cost per
GFA
222.33 262.23 270.84 290.5 305.47
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted
Cost per
m2 GFA
259.70 291.40 295.50 310.80 315.60
% Change 0.00 12.00 1.00 5.00 2.00
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
74
Figure 4.1 Overall trend of building services cost between case studies
The following sub-section are discussed about the trend of cost for different
type of building services system between case studies. Only five common type of
building services system are discussed and analysed.
4.3.1 Trend of cost for sanitary appliances
Figure 4.2 shows the trend of sanitary appliances cost between case studies.
Sanitary appliances cost per m2 in project B increase 7 % in the year 2012 compare
with project A. Thus, sanitary appliances per m2 for project C decrease 3% compare
with project B in the year 2013. 1% of increases shown in project D compare with
0%
12%
1%
5%
2%
y = 13.114x + 255.26
0%
2%
4%
6%
8%
10%
12%
14%
0
50
100
150
200
250
300
350
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Overall building services cost (Cost per m2)
Cost per GFA % Change Trend line
75
project C in the year 2014. In project E, there was an increase of sanitary appliances
cost per m2 compared with project D with 24% of increases. According to CIDB
(2017), the material price for sanitary appliances in Johor showed upward price
increment.
In overall, the sanitary appliances cost per m2 indicates an increasing trend
across five case studies. Decreases of sanitary appliances cost per m2 in year 2013
(project C) has been offset by increase of 1% and 24% in year 2014 and 2015 (project
D and E). The average sanitary appliances cost per m2 is RM15.41.
The trend line equation is y = 0.8172x + 12.962. The number 0.8172 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the sanitary appliances cost per m2. Therefore, the trend of sanitary appliances
cost is in an increasing trend.
Table 4.13: Adjusted sanitary appliances cost per m2 GFA between case studies
Years 2011
(Project A)
2012
(Project B)
2013
(Project C)
2014
(Project D)
2015
(Project
E)
Cost per
GFA
12.07 13.61 13.45 13.87 17.74
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted
cost per
m2 GFA
14.10 15.10 14.70 14.80 18.30
% Change 0.00 7.00 -3.00 1.00 24.00
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
76
Figure 4.2 Trend of cost for sanitary appliances between case studies
4.3.2 Trend of cost for plumbing installation
Figure 4.3 shows the trend of plumbing installation cost between case studies.
Plumbing installation cost per m2 in project B increase 6 % in the year 2012 compared
with project A. Thus, plumbing installation cost per m2 for project C increase with
19% compared with project B in the year 2013. 8% of increases shown in project D
compared with project C in the year 2014. In project E, there was an increase of
plumbing installation cost per m2 compared with project D with 6% of increases.
According to CIDB (2017), the material price for plumbing in Johor also showed
upward price increment.
0%
7%
-3%
1%
24%
y = 0.8172x + 12.962
-5%
0%
5%
10%
15%
20%
25%
0
2
4
6
8
10
12
14
16
18
20
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Sanitary appliances cost (Cost per m2)
Cost per GFA % Change Trend line
77
In overall, the plumbing installation cost per m2 indicates an increasing trend.
Plumbing installation cost in every case study project increases from year to year. The
average plumbing installation cost per m2 is RM49.10.
The trend line equation is y = 4.7558x + 34.826. The number 4.7558 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the plumbing installation cost per m2. Therefore, the trend of plumbing
installation cost is in an increasing trend.
Table 4.14: Adjusted plumbing installation cost per m2 GFA between case studies
Years 2011
(Project A)
2012
(Project
B)
2013
(Project
C)
2014
(Project
D)
2015
(Project
E)
Cost per
GFA
34.25 38.20 46.49 50.98 55.89
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted cost
per m2 GFA
40.00 42.45 50.70 54.55 57.75
% Change 0.00 6.00 19.00 8.00 6.00
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
78
Figure 4.3 Trend of cost for plumbing installation between case studies
4.3.3 Trend of cost for electrical installation
Figure 4.4 shows the trend of electrical installation cost between case studies.
Electrical installation cost per m2 in the project B increase 2% in the year 2012
compared with project A. Thus, electrical installation cost per m2 for project C
increase 14% compared with project B in the year 2013. 6% of increases shown in
project D compared with project C in the year 2014. In project E, there was a decreases
of electrical installation cost per m2 compared with project D with 1% of decreases.
0%
6%
19%
8%
6%
y = 4.7558x + 34.826
0%
5%
10%
15%
20%
25%
0
10
20
30
40
50
60
70
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Plumbing installation cost (Cost per m2)
Cost per GFA % Change Trend line
79
In overall, the electrical installation cost per m2 indicates an increasing trend
across five case studies. Increase of electrical installation cost per m2 in year 2013
(project C) with highest percentage which 14%. The average electrical installation
cost per m2 is RM147.90.
The trend line equation is y = 8.4091x + 122.66. The number 8.4091 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the electrical installation cost per m2. Therefore, the trend of electrical
installation cost is in an increasing trend.
Table 4.15: Adjusted electrical installation cost per m2 GFA between case studies
Years 2011
(Project A)
2012
(Project B)
2013
(Project
C)
2014
(Project D)
2015
(Project E)
Cost per
GFA
112.43 120.63 140.08 151.06 154.48
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted
cost per
m2 GFA
131.30 134.10 152.80 161.60 159.65
% Change 0.00 2.00 14.00 6.00 -1.00
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
80
Figure 4.4 Trend of cost for electrical installation between case studies
4.3.4 Trend of cost for fire protection installation
Figure 4.5 shows the trend of fire protection installation cost between case
studies. Fire protection installation cost per m2 in project B remain unchanged in the
year 2012 compared with project A. Fire protection installation cost per m2 for project
C increase 0.01% compared with project B in the year 2013. Fire protection
installation cost per m2 in project D increase 0.01% in the year 2014 compared with
project C. In project E, there was an increases of fire protection installation cost per
m2 compared with project D with 1% of increases.
0%
2%
14%
6%
-1%
y = 8.4091x + 122.66
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
20
40
60
80
100
120
140
160
180
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Electrical installation cost (Cost per m2)
Cost per GFA % Change Trend line
81
In overall, the fire protection installation cost per m2 indicates an increasing
trend across five case studies. Increase of fire protection installation cost per m2 in
year 2013 (project C) with highest percentage which 1%. The average fire protection
installation cost per m2 is RM23.40.
The trend line equation is y = 0.1048x + 23.054. The number 0.1048 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the fire protection installation cost per m2. Therefore, the trend of fire
protection installation cost is in an increasing trend.
Table 4.16: Adjusted fire protection installation cost per m2 GFA between case studies
Years 2011
(Project A)
2012
(Project B)
2013
(Project C)
2014
(Project D)
2015
(Project
E)
Cost per
GFA
19.87 20.91 21.38 21.90 22.88
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted
cost per
m2 GFA
23.25 23.25 23.35 23.45 23.65
% Change 0.00 0.00 0.01 0.01 1.00
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
82
Figure 4.5 Trend of cost for fire protection installation between case studies
4.3.5 Trend of cost for lift and conveyor installation
Figure 4.6 shows the trend of lift and conveyor installation cost between case
studies. Lift and conveyor installation cost per m2 in project B increase 1% in the year
2012 compared with project A. Thus, lift and conveyor installation cost per m2 for
project C increase with 4% compared with project B in the year 2013. Lift and
conveyor installation cost in the project D decrease 0.01% in the year 2014 compared
with project C. In project E, there was an increase of lift and conveyor installation
cost per m2 compared with project D with 0.01% of increases.
0%
0%
0%
0%
1%
y = 0.1048x + 23.054
0%
0%
0%
0%
0%
1%
1%
1%
1%
1%
1%
22.9
23
23.1
23.2
23.3
23.4
23.5
23.6
23.7
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Fire protection installation cost (Cost per m2)
Cost per GFA % Change Trend line
83
In overall, the lift and conveyor installation cost per m2 indicates an increasing
trend across five case studies. Increase of lift and conveyor installation cost per m2 in
year 2013 (project C) with highest percentage which 4%. The average lift and
conveyor installation cost per m2 is RM52.75.
The trend line equation is y = 0.7091x + 50.582. The number 0.7091 knowns
as the gradient of the trend line and positive value of the number mean an increasing
trend of the lift and conveyor installation cost per m2. Therefore, the trend of lift and
conveyor installation cost is in an increasing trend.
Table 4.17: Adjusted lift and conveyor installation cost per m2 GFA
Years 2011
(Project A)
2012
(Project B)
2013
(Project
C)
2014
(Project D)
2015
(Project E)
Cost per
GFA
43.71 46.44 49.22 50.04 51.92
Factors 1.17 1.11 1.09 1.07 1.03
Adjusted
cost per
m2 GFA
51.10 51.60 53.70 53.50 53.60
% Change 0.00 1.00 4.00 -0.01 0.01
*All prices have been adjusted to Tender Price Index (TPI) in the year 2016 (1)
84
Figure 4.6 Trend of cost for lift and conveyor installation between case studies
4.3.6 Services cost contribute to construction cost
Figure 4.7 shows the percentage of building services cost contribute to total
construction cost between case studies. Percentage of building services cost contribute
to total construction cost increase from 12.88% to 16.32% in the year 2012. In the
year 2014, the percentage of building services cost contribute to total construction cost
increase from 14.13% to 17.48%. The percentage contribution to total construction
cost increase to 19.41 in the year 2015.
0%
1%
4%
0%
0%
y = 0.7091x + 50.582
-1%
-1%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
49.5
50
50.5
51
51.5
52
52.5
53
53.5
54
54.5
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Lift and conveyor installation cost (Cost per m2)
Cost per GFA % Change Trend line
85
Table 4.18: Percentage of building services cost to total construction cost
Years 2011
(Project
A)
2012
(Project
B)
2013
(Project C)
2014
(Project D)
2015
(Project
E)
Percentage of
Building
services cost
to total
construction
cost
12.88
16.32
14.13
17.48
19.41
In overall, the percentage of building services cost contribution towards the
total construction costs indicate an increasing trend.
Figure 4.7: Percentage of Building services cost to total construction cost
y = 1.422x + 11.778
0
5
10
15
20
25
2011 (Project A) 2012 (Project B) 2013 (Project C) 2014 (Project D) 2015 (Project E)
Building services cost contribute to total construction cost (%)
Percentage of Building services cost to total construction cost Trend line
86
4.4 Interviewee profile
Table 4.1 showed the lists of interviewees’ backgrounds. There were 7
interviewees involved in interview session and all of them were coming from
consultant firms in Johor. They are project director (M&E engineer), project engineer,
supervising engineer and contract executive (M&E engineer). The interviewees
provided useful opinions to support the data collection of the study.
Table 4.19: Lists of Respondents Background
Interviewee Company Name Designation
R1 Megatech Consult Director (M&E engineer)
R2 B.E.S. Perunding Sdn Bhd Director (M&E engineer)
R3 PCM Consultant Sdn Bhd Project engineer
R4 KPK Quantity Surveyors Sdn.
Bhd
Contract Executive (M&E
engineer)
R5 KPK Quantity Surveyors Sdn.
Bhd
Contract Executive (M&E
engineer)
R6 Kong & Associates Consultants
Sdn Bhd Supervising engineer
R7 Kong & Associates Consultants
Sdn Bhd Supervising engineer
4.5 Determinants justifing trend of building services cost
In this section, the determinants that cause the increasing trend of building
services cost in high-rise residential building discuss according to the different type
building services system. After conducting semi-structured interview with seven
respondents, the conversation between respondents is translated into transcript.
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Transcript is analysis by NVivo software feature. This can identify the words most
frequently mentioned by respondents. The result indicated in word cloud based on
NVivo analysis feature. It can identify main themes and determinants causing the
increasing trend of building services cost in high-rise residential building.
Figure 4.8: Word cloud for the study
Determinants causing the increasing trend of sanitary appliances cost discuss
in section 4.5.1, followed by plumbing installation cost in section 4.5.2, air
conditioning and ventilation installation cost in section 4.5.3, electrical installation
cost in section 4.5.4, fire protection installation cost in section 4.5.5, lift and conveyor
installation cost in section 4.5.6 and special M&E installation cost in section 4.5.7.
Figure 4.9 shows the main determinants that causing the increasing trend of building
services cost in a high-rise residential building.
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Figure 4.9: Determinants causing the increasing trend of building services cost in high-rise residential building
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4.5.1 Determinants causing the increasing trend of sanitary appliances cost
The two main determinants causing the increasing trend of sanitary appliances
cost in a high-rise residential building are client requirement and consideration on eco-
friendly product. Figure 4.10 shows the main determinants causing the increasing
trend of sanitary appliances cost.
Figure 4.10: Determinants causing the increasing trend of sanitary appliances cost in
high-rise residential building.
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4.5.1.1 Client requirement
Client requirement is one of the reason causing the increasing trend of sanitary
appliances cost according to the viewpoint from respondents. Client requirement can
be classified into client requirement cause by general rise of standard living of end
user and consideration of life cycle cost.
i) General rise of standard living
According to respondent R1, client requirement for high-end sanitary
fitting is the main determinant causing the increasing trend of sanitary appliances
cost. This is because client intends to create a luxury internal environment for the
end user. Besides that, the client requests an extra number of bathroom in each
unit of the apartment for end-user accessibility according to respondent R1 and R2.
That reason indirectly lead to the sanitary appliances costs increases because the
quality and quantity of sanitary appliances are increasing. General rise of living
standard of the end user triggering them intend to have a luxury internal
environment. According to Department of Statistics (2017), the average household
income in Malaysia indicates upward trend. This should indicates increase in the
purchasing power being the inflation rate maintained. In this case, clients are
willing to fulfil the requirement to attract more house buyers.
According to respondent R3 and R4, client requirement for the advanced
or brand-new type of fittings and product increase the sanitary appliances cost. For
example, some special projects are now installing automation sanitary fitting
which required electrical supply and sensor device for it to function. Therefore, it
required additional installation cost for electrical cable and sensor devices.
Automation sanitary appliances also required the specialist skilled worker to install
which are costly compared to normal one. Introduce of advanced technology to
meet general rise of living standard of the end user are indirectly increase the
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sanitary appliances cost for a high-rise residential building. However, clients are
willing to install the advanced and brand-new type of sanitary fittings to attract
more buyer for the apartment unit.
ii) Consideration of life cycle cost
According to respondent R6 and R7, client requirement for high quality
and branded sanitary fittings is the main determinant causing the increasing trend
of sanitary appliances cost. This is because branded sanitary fittings are more
durable which provide the benefit of low maintenance cost for the end user.
Nowadays, end users consider the durability of fittings and maintenance cost of
fittings in the whole life cycle. This situation triggering client to install high
quality and branded product to attract more house buyer.
4.5.1.2 Consideration of eco-friendly product
According to respondent R5, installation of eco-friendly material or water
saving sanitary ware is the main determinant causing the increasing trend of sanitary
appliances cost. For example, toilet cistern with two buttons and two flush volumes
which one with smaller volume and another one with bigger volume. Those eco-
friendly material or water saving sanitary ware is more expensive than the normal one.
Therefore, it increases the sanitary appliances cost for a high-rise residential project.
The purpose of installation of the eco-friendly material or water saving sanitary
appliances is to achieve Green Building Index (GBI) certificate in order to have the
benefit of Investment Tax Allowance (ITA), Import Duty Waiver and Sales Tax
Waiver. Besides that, it also can build up a responsibility and positive reputation for
the developer. Therefore, client is willing to install eco-friendly material or water
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saving sanitary ware and this indirectly increases the sanitary appliances cost for a
high-rise residential project.
4.5.2 Determinants causing the increasing trend of plumbing installation cost
The three main determinants causing the increasing trend of plumbing
installation cost in a high-rise residential building are client requirement, design factor
and economic factor. Figure 4.11 shows the main determinants causing the increasing
trend of plumbing installation cost.
Figure 4.11: Determinants causing the increasing trend of plumbing installation cost
in a high-rise residential building.
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4.5.2.1 Economic factor
Economic factor is one of the reason causing the increasing trend of plumbing
installation cost base on the viewpoint of respondents. Economic factors can be
classified into an increase of material cost and an increase of labour cost. Increases of
material and labour cost affect the plumbing installation cost in different ways.
i) Increase of material cost
According to opinion from respondents, increases of material are caused
by the implementation of Goods and Services Tax (GST), depreciation of Ringgit
Malaysia and inflation. For example, PVC pipe and GI pipe are increased in price
because of inflation and depreciation of Ringgit Malaysia from the viewpoint of
respondent R1 R2 and R6. Besides that, implementation of Goods and Services
Tax (GST) also causing the increases price of piping materials and other fittings
from the viewpoint of Respondent R3.
ii) Increase of labour cost
According to opinions from respondent R2 and R7, skilled worker such as
plumber is facing problem shortage in the local market. Therefore, it required
foreign workforce from a country like Indonesia. However, employers are
responsible to pay the levy for recruitment of foreign workers starting from 1st
January 2018. Thus, recruitment fee for the foreign worker is increase and
indirectly affect the plumbing installation cost.
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4.5.2.2 Design factor
According to respondent R1, R2, R5 and R7, the complexity of building design
also is another factor that affects the plumbing installation cost. The building design
for high-rise residential building become more complex. It caused the building with
the higher possibility to have the problem of overlapping between building structural
component and M&E component. Therefore, the layout of piping work is affected by
engineer design based on the viewpoint of respondents. This is because location and
size of a structural element like beam and column determine the layout of pipe to make
sure do not have overlapping problem between structural component and M&E
component. It indirectly increases the length and quantity of pipe require for piping
work and increase the plumbing installation cost.
Based on the opinion of respondent R4, installation of building services
components need to suit and match to the interior design to make sure it does not ruin
the aesthetic value of it. For example, piping work needs to install without ruined the
aesthetic value of internal wall finishes and ceiling finishes. It affects the layout of
pipe and installation method for piping work. Therefore, it indirectly increases the
plumbing installation cost.
According to respondent R6, building height also affects the plumbing
installation cost. Nowadays, the high-rise residential buildings are designed to
construct higher than old style flat building. Therefore, higher quality and capacity of
pump motor for plumbing installation is required as the building was constructed
higher than old style flat building. This can make sure pump motor fulfil the functional
requirement and with lower maintenance cost. However, it indirectly increases the
installation cost while choosing high quality and high capacity pump motor for
plumbing installation.
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4.5.2.3 Client requirement
Client requirement is one of the reason causing the increasing trend of
plumbing installation cost according to the viewpoint of respondents. Client
requirement can be classified into client requirement cause by general rise of standard
of living of end user and consideration of life cycle cost.
i) Consideration of life cycle cost
According to respondent R3 and R6, clients are taking consideration of the
capacity and durability of the pipe material. For example, the consultant suggests
UPVC pipe for a client who wants to install more durable and with low
maintenance cost pipe material for high-end residential building. However, UPVC
pipe is costlier compared to normal one. Therefore, client takes consideration of
capacity and durability causing increase the plumbing installation cost. According
to respondent R7, client intends to install UPVC pipe which is more durable and
with low maintenance cost compared to ABS pipe. In this case, UPVC pipe is
costly compared to ABS pipe. Therefore, client takes consideration of life cycle
cost are increase the plumbing installation cost.
ii) General rise of standard living
According to respondent R1 and R3, a client request for an extra number
of the bathroom for a unit apartment and different location of toilet also increase
the quantity of pipe required. This is because end users intend to have the high
accessibility to bathroom for the convenient of them. That reason indirectly
causing plumbing installation costs increase.
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4.5.3 Determinants causing the increasing trend of air conditioning &
ventilation installation cost
The three main determinants causing the increasing trend of air conditioning
& ventilation installation cost in a high-rise residential building are client requirement,
design factor and consideration on eco-friendly product. Figure 4.12 shows the main
determinants causing the increasing trend of air conditioning & ventilation installation
cost.
Figure 4.12: Determinants causing the increasing trend of air conditioning &
ventilation installation cost in high-rise residential building.
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4.5.3.1 Client requirement
According to respondent R1, R2 and R7, client requirement is the main
determinants for air-conditioning & ventilation system installation cost. Nowadays,
there are clients request to install air conditioning system in high rise apartment
building compare to the old style flat building. This is because clients intend to create
a comfort internal built environment for the end user. General rise of living standard
of the end user and they intend to have a comfort internal built environment. This
situation triggering client to install air conditioning system for the high rise residential
building to attract more house buyer. Therefore, the installation cost for air
conditioning system increase in a project.
Normally, client request to install the split unit system or centralise air
conditioning system. According to respondent R6, air conditioning installation cost
effect the type of system request by the client to install. For example, a client request
to install centralised air conditioning system causing increase the installation cost. This
is because the additional ducting work compares to the ductless split unit system in the
lobby area. Besides that, installed new system like URV type inverter can provide
flexible air-conditioning together with low noise levels to have the more comfortable
internal environment. The new system is more expensive compared to the old system.
Client intends to provide a comfortable internal environment with new air conditioning
system to attract more house buyer also causing the increases in installation cost.
4.5.3.2 Design factor
Almost all the respondents agreed that architectural design is the determinant
that affects ventilation system. According to respondent R1, R2, R4 and R5, building
with less quantity of window and without applying natural ventilation system are
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required to install mechanical ventilation system. For example, toilet, staircase,
basement and carparks area where are enclosed and did not apply natural air ventilation
design are required to install mechanical ventilation system like pressurised system
with equipment like exhaust fan and ducts. According to respondent R6, enclose
basement required around five million-ringgit Malaysia to install mechanical
ventilation equipment. This increase the installation cost for the ventilation system.
According to respondent R3, building with extensively glazed facades, external
wall with dark colour paint and orientation building collect massive sunlight and solar
energy requires to install higher capacity of air conditioning system inside the building
to create a comfortable internal environment. This situation indirectly increases the
air-conditioning & ventilation system installation cost.
4.5.3.3 Consideration of eco-friendly product
According to respondent R3, consideration of eco-friendly product is one of
the determinants that affect the air-conditioning installation cost. For example, client
intends to install inverter type air conditioning which is more energy saving and
environment-friendly, but the initial installation cost is higher than the normal one.
Therefore, a client request for installation of greater energy conservation system
increases the installation cost.
The purpose of installation of the energy conservation air conditioning system
is to acquire Green Building Index (GBI) certificate. This provides the benefit of
Investment Tax Allowance (ITA), Import Duty Waiver and Sales Tax Waiver to client.
Besides that, it also can build up a responsibility and positive reputation for the
developer. Therefore, the client is willing to install the energy conservation air
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conditioning system. This indirectly increases the air conditioning installation cost for
a high-rise residential building.
4.5.4 Determinants causing the increasing trend of electrical installation cost
The three main determinants causing the increasing trend of electrical
installation cost in a high-rise residential building are client requirement, design factor
and economic factor. Figure 4.13 shows the main determinants causing the increasing
trend of electrical installation cost.
Figure 4.13: Determinants causing the increasing trend of electrical
installation cost in a high-rise residential building.
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4.5.4.1 Economic factors
According to respondent R1 and R2, increases of material cost is the main
determinant that causes the increases trend of electrical installation cost. Copper is the
main element for electrical installation and the copper price increase around 10-20%
in this few years. The increase of copper price caused by depreciation of Ringgit
Malaysia. This caused the increasing trend of electrical installation cost in a high-rise
residential building.
4.5.4.2 Design factor
According to respondent R2 and R6, the complexity of building design also
affects the electrical installation cost. This is because building with an increase
number of stories with more units of apartment and different facility, electrical supply
load requires from Tenaga Nasional Berhad (TNB) will over 1 Mega Volt-Ampere.
Therefore, it required an incoming power supply with high tension line and to install
additional plant or equipment such as a transformer for electrical installation with
additional cost. Besides that, the building also required installing high-quality
electrical cable for electrical installation according to respondents R4 and R5. High
electrical supply load required transfer by high-quality electrical cable for the safety
consideration. According to respondent R7, building with more complex design layout
or with more building storey is required to install high-quality equipment based on
safety consideration. This is because high rise building with the complex design is
dangerous and with high possibility of accident occurs in the electrical supply system.
Therefore, it is causing the increasing trend of electrical installation cost in a high-rise
residential building.
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4.5.4.3 Client requirement
Client requirement is one of the reason causing the increasing trend of electrical
installation cost according to the viewpoint of respondents. Client requirement can be
classified into client requirement cause by general rise of standard living of end user
and consideration of life cycle cost.
i) General rise of standard living
According to respondent R2, R3 and R7, client requirement is the
determinant that affects the electrical installation cost. Clients request for more
number of socket outlet and lighting point in high-end apartment unit for
convenience of the end user. Nowadays, end user owning a lot of electronic
product and utilise it in daily life. Therefore, sufficient of socket outlet is important
for end user and client intend to fulfil the requirement by increasing number of the
socket for each unit of the apartment. This situation causing the increase of
electrical installation cost in a high-rise residential building.
ii) Consideration of life cycle cost
According to respondent R3, clients are taking consideration of the
operating cost and maintenance cost on electrical appliances also causing the
increase of electrical installation cost. In this situation, client wants to provide the
benefit of energy saving for the end user by request to install Light-Emitting Diode
(LED) light bulbs which are more energy saving and with longer lifespan
compared to fluorescent light bulbs. It increases the installation cost because the
LED light is expensive than fluorescent light. Therefore, it indirectly increases the
electrical installation cost.
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4.5.5 Determinants causing the increasing trend of fire protection installation
cost
The three main determinants causing the increasing trend of fire protection
installation cost in a high-rise residential building are amendment of building
regulation, design factor and economic factor. Figure 4.14 shows the main
determinants causing the increasing trend of fire protection installation cost.
Figure 4.14: Determinants causing the increasing trend of fire protection
installation cost in high-rise residential building
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4.5.5.1 Economic factors
According to respondent R1, material cost is the determinant that affects the
fire protection installation cost. Pipe is the essential element for fire protection
installation system. However, Galvanized Iron (GI) pipe increases in price because of
implementation of GST and depreciation of Ringgit Malaysia. Therefore, it indirectly
increases the fire protection installation cost.
4.5.5.2 Design factor
According to respondent R3, R4 and R5, architect design is the determinants
that cause the installation cost increase. For safety consideration, high rise buildings
with complex design and increase in building height are required to install additional
fire protection equipment in certain hazardous areas after fire authority assessment.
Therefore, it increases the installation cost of fire protection system with additional
fittings.
For a building with 14 storeys above, it required more efficient pump motor
for riser system or sprinkler system in the building based on the opinion of respondent
R3. According to respondent R7, fire authority is requested to install a sprinkler system
in basement car park which over 40m2. It cost around RM 300,000 to the project.
Therefore, it directly increases the installation cost for fire protection system.
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4.5.5.3 Amendment of building regulation
According to respondent R2, amendment of building regulation affects the fire
protection installation cost. This is because high rise residential building with service
apartment title is necessary to install sprinkler system without waiver since 2015.
Installation of sprinkler system increases 20%-30% of fire protection cost with
additional fittings like sprinkler tank, sprinkler head and additional plumbing.
According to respondent R6, latest requirement from fire authority is the
determinant that affecting the fire protection system installation cost. For example,
the wet rising system should provide in every building in which the topmost occupied
floor is more than 30 metres (before is 30.5 metres). Building with complex structure
design required to install additional fire protection equipment according to fire
authority requirement. Therefore, it directly increases the installation cost for fire
protection system.
4.5.6 Determinants causing the increasing trend of lift & conveyor installation
cost
The three main determinants causing the increasing trend of lift & conveyor
installation cost in a high-rise residential building are client requirement, design factor
and consideration on eco-friendly product. Figure 4.15 shows the main determinants
causing the increasing trend of lift & conveyor installation cost.
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Figure 4.15: Determinants causing the increasing trend of lift & conveyor
installation cost in high-rise residential building
4.5.6.1 Client requirement
According to respondent R2 and R6, client requirement is the determinant
affect the lift & conveyor installation cost. This is because client request to
increase the quantity of lift for convenient and high accessibility of lift services in
high rise building. According to respondent R3, R4, R5, R6 and R7, client request
to install exclusive lift which one lift only provide service for certain users in the
certain block of the building. This increases the number of lift required for a
building. This can reduce the waiting time for a lift and provide high accessibility
of lift services.
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Besides that, the client also requests to install branded and high-quality lift for
high rise building. According to respondent R4 and R5, client request branded and
good quality of lift from Finland rather than the lift manufactured by China.
According to respondent R7, client request branded lift from Japan with good
maintenance services are indirectly increase the lift & conveyor installation cost.
Therefore, lift and conveyor installation cost are increase because the branded lift
is more expensive than typical one.
General rise of living standard of the end user and they intend to high
accessibility of lift services and with shorter waiting time for a lift in the high rise
residential building. This triggering client to install exclusive lift in the high rise
residential building to attract more house buyer. Therefore, the installation cost
for lift & conveyor system increase in a project.
4.5.6.2 Design factor
According to respondent R1 and R2, design factor is the main reason that
causes the increases in lift & conveyor installation cost. The buildings with
complicated or long building layout design are required to install extra number of lift
for the convenience and accessibility of lift for the end user.
According to respondent R6, the functional capacity of lift required to increase
as the complexity of building design and building height are increased. The lift
required to fulfil the functional requirement such as faster moving speed and higher
lifting capacity of lift car. The high functional capacity lift is more expensive than
typical one. It increases the installation cost of lift for a building.
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4.5.6.3 Consideration of eco-friendly product
According to respondent R3, consideration of eco-friendly product is one of
the determinants affect the lift and conveyor installation cost. For example,
regenerative type of motor for the lift is more energy saving compare to typical one.
However, it is costly compared to the typical one. Therefore, it increases the overall
installation cost for lift and conveyor system.
4.5.7 Special M&E installation system that causes the increases in overall
building services cost
The main determinant that triggering the installation of a special M&E
installation system in a high-rise residential building is client requirement. Figure 4.16
shows the main determinant causing the installation of special M&E installation
system.
Figure 4.16: Determinants of special M&E installation system that causes the
increases in overall building services cost
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4.5.7.1 Client requirement
Client requirement is the reason for installing the special M&E system in high
rise building. Special M&E installation system causing the increases in overall
building services cost according to the viewpoint of respondents. Client requirement
can be classified into client requirement cause by general rise of standard of living of
end user and consideration of life cycle cost.
i) General rise of standard of living
According to all the respondents, Extra-low voltage (ELV) system and
security system are the special M&E installation that causing the increasing trend
of building services cost. ELV system functions for High-Definition (HD)
television, internet network (high-speed broadband) and intercom communication
purpose. Security system such as CCTV system in the car park and card access
also increases the M&E cost for a building. The purpose of that special M&E
installation is to fulfil the requirement of the end user in general rise of living and
desire for extra building services like internet access and security control.
According to respondent R4, R5, R6 and R7, Building Management
System (BMS) or smart home system also are the special M&E installation that
causing the increasing trend of building services cost. The smart home system can
remotely control household systems like lighting, doors and security alarm. For
example, fingerprint door lock system and sound control on the lighting system.
This can provide the end user more controllable internal environment.
General rise of living standard of the end user and they intend to have extra
building services system and the controllable internal environment in the high rise
residential building. This situation triggering client to install all that special M&E
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system in the high rise residential building to attract more house buyer. Therefore,
it causes the increase in overall building services cost.
ii) Consideration of life cycle cost
According to respondent R3, solar energy system also is the special M&E
installation that causing the increasing trend of building services cost. Solar energy
system can generate electricity from solar energy. This is a benefit to the end user
in saving money for paying the bill of electric every month. This can reduce the
operational cost for electric supply system. However, the initial installation
expenses are costly and one solar panel cost around RM30,000. Client intends to
install solar energy system in high rise building for the benefit of the end user. This
can attract more house buyer for the project. Therefore, it causes the increase in
overall building services cost.
4.6 Summary of chapter
Based on the outcome of documentary analysis, it shows an increasing trend of
building services cost in high-rise residential building. According to respondents, the
determinants that cause the increasing trend of the building services cost in high-rise
residential building is client requirement, design factor, economic factor, consideration
of eco-friendly product and amendment of building regulation.
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CHAPTER 5
CONCLUSION AND
RECOMMENDATIONS
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CHAPTER 5
5. CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
The chapter summarized and concluded the findings based on the research
objectives. It also encompassed on the limitations faced throughout the study and the
recommendations for future study.
5.2 Research Outcome
This study is conducted by documentary analysis on historical cost data and
semi-structured interview with M&E engineers. Once the documentary analysis
outcome was determined and concluded, semi-structured interview has been carried
out to obtain more depth information. The objective of this study is to analyse the trend
of building services cost in high-rise residential building as well as the determinants
that justify the trend of the building services cost in high-rise residential building.
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5.2.1 Objectives
Objective 1: To analyse the trend of building services cost in high-rise residential
building.
Based on the analysis and findings from Chapter 4, the trend of building
services cost in high-rise residential building is an increasing trend. In overall, the
building services cost per m2 indicates an increasing trend across five case studies.
Increase of building services cost per m2 in year 2012 (project B) with highest
percentage which 12%. The average building services cost per m2 is RM294.60.
The increasing trend of building services cost are indicating in sanitary
appliances cost, plumbing installation cost, electrical installation cost, fire protection
installation cost and lift and conveyor installation cost.
In overall, the sanitary appliances cost per m2 indicates an increasing trend
across five case studies. Decreases of sanitary appliances cost per m2 in year 2013
(project C) has been offset by increase of 1% and 24% in year 2014 and 2015 (project
D and E). The average sanitary appliances cost per m2 is RM15.41. Besides that, the
plumbing installation cost per m2 indicates an increasing trend. Plumbing installation
cost in every case study project increases from year to year. The average plumbing
installation cost per m2 is RM49.10.
In overall, the electrical installation cost per m2 indicates an increasing trend
across five case studies. Increase of electrical installation cost per m2 in year 2013
(project C) with highest percentage which 14%. The average electrical installation
cost per m2 is RM147.90. Besides that, the fire protection installation cost per m2
indicates an increasing trend across five case studies. Increase of fire protection
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installation cost per m2 in year 2013 (project C) with highest percentage which 1%.
The average fire protection installation cost per m2 is RM23.40.
In overall, the lift and conveyor installation cost per m2 indicates an increasing
trend across five case studies. Increase of lift and conveyor installation cost per m2 in
year 2013 (project C) with highest percentage which 4%. The average lift and
conveyor installation cost per m2 is RM52.75. Besides that, percentage of building
services cost contribute to total construction cost increase from 12.88% (year 2011) to
19.41% (year 2015). In overall, the percentage of building services cost contribute to
total construction cost indicate an increasing trend.
Objective 2: To determine the main determinants that justify the trend of the building
services cost in high-rise residential building.
Based on the analysis and findings from Chapter 4, the determinants that
causing the increasing trend of the building services cost in high-rise residential
building is client requirement, design factor, economic factor, consideration of eco-
friendly product and amendment of building regulation.
Client requirement is the main determinant causing the increasing trend of
building services cost. Client requirement can be classified into client requirement
cause by general rise of standard living of end user and consideration of life cycle cost.
General rise of living standard of the end user triggering them intend to have a
controllable, luxury and comfort internal environment. Besides that, client also intends
to have high accessibility of building services system like lift services. In this case,
clients are willing to fulfil the requirement to attract more buyer to the apartment unit.
Economic factor also is the determinant causing the increasing trend of
building services cost. Economic factors can be classified into increase of material
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cost and increase of labour cost. Increase of material cost mainly causes by the
implementation of Goods and Services Tax (GST), depreciation of Ringgit Malaysia
and inflation. Increase of labour cost caused by the shortage of skilled worker in the
local market. Therefore, it required foreign workforce which recruitment fee becomes
more expensive in this few years.
Design factor also causing the increasing trend of building services cost.
Complexity of building design in high rise building indirectly causing the building
services cost increase. This is because of the building required to fulfil the functional
and safety requirement while the complexity of building design is increased.
Consideration of eco-friendly product also causing the increasing trend of
building services cost. The purpose of installation of the energy conservation and eco-
friendly product for building to acquire Green Building Index (GBI) certificate. This
provides benefit of Investment Tax Allowance (ITA), Import Duty Waiver and Sales
Tax Waiver to client. Besides that, it also can build up a responsibility and positive
reputation for the developer.
Lastly, amendment of building regulation also causing the increasing trend of
building services cost. Amendment of building regulation on fire protection system
like no waiver for installing sprinkler system in serviced apartment building is causing
the increasing trend of building services cost.
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5.2.2 Conclusion
Based on the study, some conclusion can be made:
• The trend of building services cost in high-rise residential building is an
increasing trend and the percentage of building services cost contribute to total
construction cost also indicate an increasing trend.
• The determinants that cause the increasing trend of the building services cost
in high-rise residential building is client requirement, design factor, economic
factor, consideration of eco-friendly product and amendment of building
regulation.
The study outcome can provide client a cost benchmark for building services cost
through building services cost breakdown for cost controlling purpose. In addition,
the determinants that caused the increasing trend of building services cost in high rise
building can be an important information to client for decision making in early design
stage.
5.3 Limitation of Study
Although the study has reached and achieved its objective and aims, there still
were some unavoidable limitations when conducting and completing this study. The
limitations were listed as follows:
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a) Limitation on number of project being study
Due to the reason of private and confidential on project information, there are
only five construction projects cost data are studied and analyse in this study. It
may lower the reliability of the result.
b) Transportation, location and time limitation
Due to the limitation of time and transportation, this study only covers in Johor
state. This cause the data collected partial towards high-rise residential building
project and M&E engineer in Johor only. There might be a change that trend of
building services cost and opinion from M&E engineer in other State is different
with Johor and it may lower the reliability of the data collected.
c) Some of the consultant firm not willing to be interviewed due to their busy
schedule
Most of the M&E engineer are handle at least two construction projects and
must attain meeting every day with client or contractor. Therefore, most of them
really have not much time to have an interview session with me.
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5.4 Recommendation and suggestion for future study
The study that has been undertaken for this thesis has highlighted a number of
topics on which further study would be beneficial. There are some recommendations
and suggestion for the future study as follows:
i) This study had been done by case study based in Johor. As a
recommendation, the future study could be conducted in a group, where
each group will focus on the different state of Malaysia. The result of the
analysis could be compared and it will be able to contribute significantly to
the construction industry in Malaysia.
ii) The objectives of this study are to analyse the trend of building services
cost and determine the determinants that justify the trend of building
service cost in high rise building. As recommended, the future study could
be focus on another type of project like industrial buildings.
117
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