projection of construction and material demand for …€¦ · 4 executive summary projections are...
TRANSCRIPT
Projection of
Construction and Material
Demand for
2018
December 2017
(Version 1.0)
2
Projection of
Construction and Material Demand
for 2018
Prepared by
Business & International Division
Policy and Corporate Sector
Construction Industry Development Board (CIDB)
Malaysia
December 2017
(Version 1.0)
Disclaimer and terms for provision of report: This report is prepared for general circulation and for information purposes only. The information contained herein has been obtained from sources believed to be reliable and different methodologies applied as technical evaluation. Past performance is not necessarily a guide to future performance. CIDB holds no liability for the data, views and interpretation obtained in this publication due to the possibility of error that is not deliberate.
3
CONTENT
EXECUTIVE SUMMARY 4
INTRODUCTION 5
CONSTRUCTION DEMAND 6
MAJOR CONSTRUCTION MATERIALS DEMAND 8
CONCLUDING REMARKS 10
APPENDICES
i. Guidelines on Projections 11
Established Constants for Major Construction Materials
Developed S-Curve Model
Integration of Materials Usage on S-Curve
ii. Assumptions of Projection Model 15
iii. Components of Construction Categories, Sub-Categories and
Types of Project 17
iv. Recommendations 21
4
EXECUTIVE SUMMARY
Projections are generated based on the estimated progress of the construction works that has
been awarded according to the work progress cycle that is translated from a series of
S-curves.
For the period of 2014 until 2016, there are 23,610 projects valued at RM557.5 billion extracted
from CIDB’s database. This report projected an estimated of 8,560 projects valued at RM377.1
billion are still under construction in 2017 and continues in 2018. Deriving from these figures,
the estimated construction demand for 2017 and 2018 are projected as follows:
Year Upcoming Work
Number Value (RM b)
2017* 6,600 224.6
2018e 1,960 152.5
Note: * Projects awarded until July 2017
e Estimated
Similarly, with regards to material demand, in 2017, an estimated of 6,600 projects valued at
RM224.6 billion were carried out with 8 major material demand amounted to RM44.5 billion.
Meanwhile in 2018, an estimated of 1,960 projects valued at RM152.5 billion are currently
under construction with a material value of RM15.8 billion. From this amount, the estimated
demand for these major construction material are as follows:
Construction Material Unit Material Quantity
1. Steel reinforcement tonne 1.5 million
2. Ready mixed concrete m² 19.1 million
3. Plywood piece 49.5 million
4. Bricks pallet 12.8 million
5. Paint 5 litre 12.7 million
6. Sand (finishes) tonne 25.5 million
7. Glass m² 28.4 million
8. Cement (finishes) tonne 2.6 million
The material demand projection does not take into account new projects to be awarded in
2018.
5
INTRODUCTION
Movement of material prices are generally dictates by supply and demand. Many observations
from past trends show that insufficient supply of construction material will result in a spike in
the material price. This will then bring about a sudden surge in demand. Therefore, it is
important to be able to pre-empt material demand through a projection exercise. Applications
of this projections are important to the Malaysian Construction Industry for many reasons:
i. The foremost being that it can be used as budgetary control measure whereby industry
players are able to plan ahead collectively on materials usage based on a common
guideline where average prices and quantities are provided via the use of constants.
Thus, indirectly encouraging uniformity in building works and cost efficiency.
ii. The historical and current actual demand for construction and construction materials
demand statistics sets a trend line for forecasting the future path in the country’s
economic growth since construction output is an indicator of the country’s GDP. It can
help the government and its relevant agencies to better strategise the country’s
development during the master plan periods.
iii. A periodical review of the statistics can gauge country’s development value over the
analysed period. The statistics can also be used to justify the country’s rate of growth
in comparison to development value. It can also be used as a reference by many
parties especially the construction industry players in the construction field,
consultants, academicians and students. These reviews also will lead to potential
studies on construction methodology and perhaps the development of better
innovations in building technology.
iv. The development of a standard projection methodology for construction demand will
create a database for which, current and future requirements for construction materials
in relation to awarded and ongoing projects based on project timelines, can be
determined. This serves as a fundamental basis for CIDB to offer consultative
recommendations to the Federal and the State Governments on matters related to the
construction industry. Hence swift action can be made whenever there are abnormal
deviations in any projected construction demand and construction materials trend
within the review period; resulting in better management of materials, and financial
resources.
6
Following this observation and in an effort to provide an innovative and comprehensive
advisory service in the Malaysian construction industry, CIDB initiated a special methodology
for the projection of construction demand known as myPROJEXIS. The system collates raw
data from several sources as indicated below:
i. Awarded projects information from CIDB’s database;
ii. New projects announcement by the government and private sector; and
iii. Construction materials prices.
Statistics gathered from these sources are then incorporated into the development of a
methodology, which enables the determination of a standard projection for construction
demand in terms of work done and materials demand. The projection of construction demand
is based on the confidence levels and other assumption as explained in Appendix 2.
CONSTRUCTION DEMAND
Construction demand is defined as value of construction awarded. Meanwhile, construction
output is equals to the value of work done on a project during the year (Department of
Statistics). Research undertaken by CIDB has found that construction output is generally 46%
of construction demand. This assumption together with other relevant data has been applied
into myPROJEXIS in the effort of projecting construction and material demand for 2017 and
2018.
Table 1 shows the number and value of project awarded according to year from 2014 to 2018.
The table also relates the numbers and estimated values of completed (work done) and
prediction of upcoming work (work to be done) according to size of projects. In 2017, the total
value of projects awarded are forecasted at RM170.0 billion. This projection based on targets,
information and other periodic announcements on investment proposals published by several
official sources such as the Ministry of Finance (MOF), Bank Negara Malaysia (BNM),
Malaysia Investment Development Authority (MIDA) and National Property Information Centre
(NAPIC). The demand for this project is also generated from projects announced under 11th
Malaysia Plan (11MP); Federal Government's annual budget; and other private projects.
Details of the projection can be referred in the Construction Industry Review and Prospect
2016/ 2017 publication.
7
In 2015, there were 7,544 projects awarded and commenced with a value of RM142.0 billion.
It is estimated that out of this value, RM47.2 billion were completed in 2015. In 2016, out of
7,544 projects awarded in 2015, 4,900 project with a value RM58.1 billion were then
completed. Subsequently another 1,600 of these projects were completed in 2017 for RM28.5
billion. What remains of the 7,544 projects awarded in 2015 are approximately 300 projects
estimated to complete in 2018 for RM10.0 billion.
The estimated 7,000 projects awarded in 2016 is assumed to commenced in the same year,
with a completion value of RM57.1 billion. Subsequently, an estimated 3,700 projects were
completed at a value of RM138.0 billion in 2017, leaving another 1,200 projects forecasted for
completion during the rest of 2018. The estimated value of total project awards for 2017 is RM
170.0 billion with an upcoming work at RM47.6 and RM102.0 billion for 2017 and 2018
respectively.
It should be noted that, figures for 2016 is preliminary and does not include late notifications.
Some new projects have not been accounted for, due to inadequate project information such
as undeclared project dates, eg. no completion date declared at the time of this report being
compiled.
Table 1 Estimated Total Projects Work Done and Upcoming Work
Year
Total Projects Award Work Done Upcoming Work
Number Value (RM b)
2015 2016 2017 2018
Number Value (RM b)
Number Value (RM b)
Number Value (RM b)
Number Value (RM b)
2014 8,076 185.5 5,600 64.6 1,800 32.2 300 10.2 60 4.6
2015 7,544 142.0 7,500 47.6 5,000 58.7 1,600 28.8 300 10.1
2016 7,000ᶠ 230.0ᶠ - - 7,000 65.4 4,700 138.0 1,600 35.8
2017 - 170.0ᶠ - - - - - 47.6 - 102.0
Total 13,100 112.2 13,800 155.7 6,600 224.6 1,560 152.5
Note: ᶠ Forecast
From Table 1, an estimated total value of RM224.6 billion being targeted for execution in 2017.
These are projects awarded from 2014 to 2017. 2017 being the second year of the 11MP, will
see much of infrastructure projects being intensely implemented. These include major high
impact civil engineering projects in transportation and road networks that will consume billions
of Ringgit to complete. Examples are the ongoing 2,300km Pan Borneo Highway project
located in Sabah and Sarawak; the 390km Central Spine Road in Pahang; the Mass Rapid
Transit 2 (MRT2) project which expected to be completed in 2022; the Light Rail Transit 3
8
(LRT3); the East Coast Rail Line (ECRL); and the High Speed Rail Kuala Lumpur - Singapore
to name a few prominent economic high impact projects. The ongoing heavyweight non-
residential category are the Deepwater Petroleum Terminal 2 project located at The Refinery
and Petrochemical Integrated Development (RAPID) Complex in Pengerang, Johor and the
Central Processing Platform (CPP) for Bokor Development Project in Sarawak. Another
ongoing mega mixed development projects are the Tun Razak Exchange and Bukit Bintang
City Centre in Kuala Lumpur; and further development of the 5 economic corridors.
At the start of 2017, the Government of Malaysia announced RM89.3 billion worth of projects
to be implemented in several years under the 2nd Rolling Plan of the 11MP. This include Pan
Borneo Highway and the like. It is worth noting that this value includes the previous year’s
spill over (2016 and before). However, in 2017 Budget, it was announced that RM46.0 billion
has been allocated for development purposes.
In 2018 Budget, government further announce another RM59.1 billion worth of projects. This
include some social housing and extension of existing hospital projects. From this budget,
again RM46.0 billion was allocated for development purposes.
The figures mention above, will in turn, translated into construction demand for public sector
in 2017 and 2018.
All of these high impact projects, both public and private, are expected to be implemented in
2018, with a total estimate of RM152.2 billion worth of project.
MAJOR CONSTRUCTION MATERIALS DEMAND
A research done in 2012 indicated that construction materials constitute about 74% on
average from the overall construction value or cost for building works only with the assumption
of overhead and profit margin at 15% from the cost of goods sold and construction workers.
To determine constants for major construction materials in use, analysis was made for
different stages of construction with varying materials being used (please refer Appendix 1).
As a result, it is established that 8 types of materials has emerged as the main construction
material used in any project.
Table 2 Estimated Construction Material Demand
Construction Material
Unit
Material Demand for Total Work Done
2016
Material Demand for Total Upcoming Work
2017
Material Demand for Total Upcoming Work
2018
Number of
Projects
Material Quantity (million)
Material Value
(RM m)
Number of
Projects
Material Quantity (million)
Material Value
(RM m)
Number of
Projects
Material Quantity (million)
Material Value
(RM m)
Steel Reinforcement
tonne 9,000 7.7 18,800.0 6,000 8.2 20,000.0 2,000 1.5 3,700.0
Ready Mixed Concrete
m³ 9,000 45.5 12,000.0 6,000 56.0 14,700.0 2,000 19.1 5,000.0
Plywood piece 9,000 66.9 3,800.0 6,000 100.0 5,700.0 2,000 49.5 2,800.0
Bricks pallet 9,000 13.5 3,000.0 6,000 23.6 10.4 2,000 12.8 5.6
Paint 5 liter 9,000 9.7 1,300.0 6,000 13.3 1,800.0 2,000 12.7 1,700.0
Sand (finishes)
tonne 9,000 19.3 820.0 6,000 24.1 1,000.0 2,000 25.5 1,000.0
Glass m² 9,000 16.2 870.0 6,000 22.0 1,200.0 2,000 28.4 1,500.0
Cement (finishes)
tonne 9,000 2.5 956.0 6,000 3.3 62.9 2,000 2.6 50.7
Note: Material value is calculated based on material’s average price in 2016.
The above table shows the estimated utilisation of 8 major construction materials that were
used in building projects and civil engineering works done in 2016 as well as forecast for future
works in 2017 and 2018. It is estimated that lesser quantity and there for value in construction
materials demand are expected for upcoming work in 2017 and 2018 in tandem with the
volume of ongoing or newly started projects that are mostly the spill over projects from those
awarded in previous years. The 2017 and 2018, figures are pure estimation that had taken
into account only for project awarded until July 2017.
The demand for construction materials are directly related to the stages of construction of a
project for they have specific applications throughout the entire construction timeline. The
estimated material demand for 2018 is based on the overflow of projects awarded in the
previous year.
Some materials utilisation estimation are reduced drastically in 2018’s work-to-be-done
projection since most of these materials such as steel reinforcement, ready mixed concrete
and plywood were applied at the beginning stage of construction in 2017. Other materials
forecasted usage such as sand, glass and paint shows a higher demand in 2018 since it is
mostly used towards completion cycle. Most ongoing building projects in 2017 are in the
advanced stage of construction whilst civil engineering projects do not require the same
combination of construction materials as buildings. These conservatively forecasted materials
10
demand for 2017 are also an outcome of the fact that more projects are yet to be reported and
recorded in CIDB’s database at the time of this report is published.
CONCLUDING REMARKS
There is a significant need for CIDB to establish a credible model in projecting both
construction demand and its resources, using different level of confidence based on
acceptable assumption to achieve market equilibrium in the construction industry (please refer
Appendix 2). This underlined the importance of CIDB to undertake its statutory function under
the Act 520 (Amendment 2011).
Due to the high contribution from the cost of construction materials to the overall construction
cost of a building project, it is important to monitor the supply and demand of construction
materials at any point of time. In promoting market equilibrium in the construction industry, the
supply of construction materials should meet the materials demand. Generally, shortage or
oversupply of construction materials will affect the materials price. Any volatility to the prices
especially for major materials will affect the whole cost of construction. Thus, projection of
demand for construction materials will serve as a guide for the producer to plan their supply
and will assist the Government in preparing national policy including addressing the impact of
materials’ price to construction cost.
11
Appendix i
Guidelines on Projections
Realising the importance of having a system to project construction demand, the projection
system was established, intended to reasonably foresee the demand for following elements:
i. Projection of construction demand (work done and upcoming work); and
ii. Projection of materials demand.
In establishing the projection model and system, CIDB had initiated the development of the
following methodologies in establishing constant of construction materials, S-curve model and
integration of material constant on S-curve model.
1. Established Constants for Major Construction Materials
In order to provide a projection methodology for construction demand, it is important that a
constant should be ascertained for measuring construction demand and materials demand.
CIDB undertook a study in establishing standard constants of construction materials that are
used in building constructions according to categories of construction projects identified. The
construction categories are:
i. Residential;
ii. Hotel;
iii. Office;
iv. Commercial and industrial;
v. Education;
vi. Health;
vii. Social facilities;
viii. Safety; and
ix. Auxiliary building.
This constant is established by comparing various Bill of Quantities (BQ) in the above
categories. It is noted that there are 8 major categories of materials that significantly
contributed to the construction cost. From this, by using cost comparison, this study managed
to establish a typical constant for the individual building material.
These constants were adopted in the creation of a model that calculates the demand for 8
major construction materials in relation to the projected construction demand. They are:
12
i. Steel reinforcement;
ii. Ready mixed concrete;
iii. Plywood;
iv. Bricks;
v. Paint;
vi. Sand (finishes);
vii. Glass; and
viii. Cement (finishes).
Based on the total value (Malaysian Ringgit) and quantity of projected demand for construction
materials, details of projection is elaborated into annual demand. As such, occurrences of
demand for major construction materials from the total progress of projected construction
demand are developed.
CIDB has collected historical data for this empirical study (standard constants) from 114
projects, all valued at more than RM500,000 each; with individual project commencement and
completion dates. Respondents for the study are relevant public and private sectors
stakeholders comprising of clients, consultants, contractors and suppliers. BQ were collected
from respondents who have secured projects related to relevant construction type. For now,
this study is limited only to building and civil engineering projects. Categories of building
projects are as mentioned earlier, while civil engineering projects are infrastructure-related
projects that cover utilities; transportation and road networks; drainage and irrigation;
landscaping; and the like.
2. Development of S-Curve Model
Based on previous studies (standard constant), CIDB has establish the following work
progress expenditure based on S-curve model using projects’ duration. S-curve is a project
management tool that tracks progress over time and allows for a quick visual to determine
project status.
To establish a projection model, CIDB has initiated the development of a methodology in
determining a standard S-curve construction model for each category of construction projects
awarded. This study was done across 150 types of project (e.g. terrace houses, shopping
complexes, office buildings, hospitals, sewerage and roads) (please refer Appendix 3) within
4 years of construction period, divided into 23 sub-categories. The S-curves are ascertained
13
by formula that uses historical data from similar construction projects, and are based on simple
average (mean) whilst the constants were developed based on multi-completion periods
(duration in years). The S-curve indicates the levels of work done on a project at progressive
junctures from project’s commencement to completion and hence allow for calculation of the
materials at any stage of project completion as illustrated in Chart 1 below.
Chart 1 Models of Work Progress or Construction Output
Legends: C1 – Construction 1
C2 – Construction 2
C3 – Construction 3
C4 – Construction 4
3. Integration of Materials Usage on S-Curve Constants for materials used at various stages or elements of construction were subsequently
applied to the S-Curve of relevant projects. Employing the myPROJEXIS system, raw input
lists of projects from varying categories and completion periods were matched to produce the
output of “work done” and “upcoming work”:
i. Based on the different construction stages of project implementation, the related
materials used during a construction stage can be identified and calculated for every
project; and
14
ii. The sum of total material to be used for each project, can be equate as the total
projected construction materials demand. Occurrences of demand for major
construction materials from the total progress are developed as illustrated in Chart 2.
Chart 2 Material Used by Project Element
Chart 2 is an example of project elemental breakdown for certain type of throughout the 3
years of project timeline with related materials used in respective elements. Highlighted on the
graphic are the element of Work Below Lowest Floor Finish and Frame to be carried out with
major materials used. These may include concrete piles, ready mixed concrete, steel
reinforcement and plywood. Once the same type of project is keyed-in into the myPROJEXIS
system, it will be matched with the above constants and related materials required at every
construction element can be calculated.
Legends: WBLFF – Work Below Lowest Floor Finish Int. Wall – Internal Wall Ext. Wall – External Wall Ext. Works – External Works
15
Appendix ii
Assumptions of Projection Model
The following assumptions has been used as parameter for both projections of construction
and materials demand:
1. The source of information on all construction projects awarded in the country is CIDB’s
integrated database where information on construction projects valued in excess of
RM500,000 are captured. Precise estimates depend on the actual number of new
construction projects that are reported by successful contractors;
2. The method of procurement of construction is based on the conventional method that
refers to a design development stage that is separate from construction. Design
development is generally undertaken by consultants, while constructions are by
general contractors. The sample does not consider different types of procurement
arrangement and construction method;
3. Projection for construction output is based on 3 levels of confidence:
i. High confidence:
Target population is based on awarded projects only;
ii. Moderate confidence:
Target population is based on future projects announced by the government;
and
iii. Fair confidence:
Target population is based on future projects announced by private clients.
4. The commencement and completion date is that which is stated in the Letter of Award
without consideration of extension time;
5. Methodology of construction is based on tender documentation. Alternative
construction method proposed by the contractors to clients is not considered;
6. Typical percentage of 15% is used as an assumption for overhead and profit margin
on any sample adopted;
16
7. It is assumed that the construction projects are without variation works, neither
additional nor omission;
8. It is assumed that the whole allocation of Prime Cost Sum and Provisional Sum
allocated (if any) in the BQ will be fully utilised; and
9. The constants are equally distributed on all projects irrespective of types of project
including repair, maintenance and the likes. Project of this nature normally represent
an average of 10% from total projects awarded.
In addition, there are 3 other assumptions for projection of materials demand:
1. Volume of cement and sand are being extracted from plastering and finishes items
only;
2. Ready mixed concrete is a stand-alone item; and
3. The range, type, brand, specification, performance and constructability of construction
materials are as per normal specifications.
17
Appendix iii Component of Construction Category, Sub-Category and Type
Category Sub-category Types of Project
1. Residential
1. House
2. Dormitory
1. Quarters 2. Terrace 3. Semi-detached 4. Bungalow 5. Flat 6. Condominium 7. Apartment 8. Townhouse 9. Rumah rakyat 10. House (residential that not specified
type of house)
11. Dormitory
2. Trade
3. Business
4. Hospitality
5. Tourism and entertainment
12. Shop house 13. Office house 14. Shop 15. Stall 16. Business complex 17. Exhibition centre 18. Petrol station 19. Warehouse/ store 20. Oil rig 21. Market 22. Shop office 23. Toll plaza 24. Hotel 25. Dorm 26. Rest house 27. Chalet 28. Service apartment 29. Motel
30. Vacation resort 31. Theme park/ playground 32. Picnic area 33. Cultural centre/ handicraft 34. Heritage building 35. Museum 36. Cinema/ theatre 37. Casino 38. Spa/ beauty centre
3. Administration
6. Office
39. Private office space 40. Government / statutory body office
building
18
Category Sub-category Types of Project
4. Industrial
7. Factory/ plant
8. Industrial area
41. Factory 42. Oil refinery plant 43. Storage tank
44. Land fill (for industrial area only)
5. Social amenities
9. Health 10. Education 11. Welfare and sociality
12. Public facilities
13. Recreation and sport
14. Club and association
45. Hospital 46. Clinic 47. Medical laboratory 48. Medical treatment centre 49. Higher learning institution 50. School 51. Skills centre 52. Training centre 53. Library 54. Laboratory 55. Kindergarten/ childcare centre 56. Youth centre 57. Welfare/ protection centre 58. Rehabilitation centre
59. Public toilet 60. Solid/ liquid disposal centre 61. Mortuary 62. Community centre 63. Hall 64. Incinerator 65. Signboard 66. Memorial centre 67. Public works 68. Public parking space 69. Street light 70. Religious house 71. Pedestrian bridge
72. Sports centre 73. Recreation centre 74. Rest area 75. Playground
76. Club 77. Association office
6. Agriculture
15. Farming
78. Livestock/ poultry production centre 79. Livestock inspection centre 80. Livestock treatment centre 81. Slaughterhouse 82. Livestock/ poultry farm 83. Insect farm 84. Wildlife sanctuary
19
Category Sub-category Types of Project
16. Fisheries
17. Agricultural
85. Fish farm 86. Fish production centre 87. Stiff and reed 88. Shrimp farm
89. Plant production centre 90. Agricultural research centre 91. Agricultural field
7. Safety
18. National safety
92. Military camp 93. Police station 94. Jail 95. Civil defence centre 96. Fire station 97. Target field 98. Immigration 99. Customs inspection centre 100. Marine police base 101. Naval base
8. Infrastructure
19. Utility
20. Transportation
102. Water treatment plant 103. IT cable 104. Pipeline 105. Oil/ gas pipeline 106. Dam/ hydroelectric 107. Telephone cable 108. Substation 109. Internal wiring 110. Water tank 111. Oil tank 112. Chemical tank 113. Telephone exchange centre 114. Audio visual station 115. Electric power plant 116. Weather station 117. Pump house
118. Airport 119. Train & LRT station 120. Bus station 121. Taxi station 122. Road 123. Highway 124. Rural road 125. Railway/ LRT track 126. Street light 127. Bridge/ flyover 128. Tunnel 129. Harbour/ jetty 130. Security equipment & surveillance
systems
131. Walkway
20
Category Sub-category Types of Project
21. Drainage and
sewerage
22. Disaster prevention
132. Sewage plant/ sewerage 133. Drainage 134. Sewerage drainage 135. Aqueduct 136. River
137. Flood barrier 138. Slop work 139. Fire prevention 140. Floodgate 141. Beach erosion control
9. Landscape
23. Landscape
142. Gardening works 143. Land work for plants 144. Plant cultivation
10. Others
24. Others
Other projects not included in any category. Example:
145. Gate 146. Lighthouse 147. Gateway 148. Land work only 149. Guard house
Note: Construction projects has been categorised by its usage not by construction activities.
21
Appendix iv
Recommendations
This empirical study on the methodology for projection/ forecast of construction demand and
construction materials is not without its limitations. For starters, a limited sample was acquired
in the development of a construction in S-curve model. The samples used to generate the
formula for monthly/ quarterly constants for construction of S-curve model may be small for
certain construction types to be considered as national average. Awarded projects have been
confined to those valued in excess of RM500,000 as recorded in CIDB’s database.
Proposals were drafted to highlight the identified areas to improve the reliability, accuracy and
credibility of the projection of construction and material demand:
i. Project category.
Review of the project category in the construction of S-curve models so as to reflect a
standard categorisation in the construction industry to include special projects such as
the Mass Rapid Transit (MRT) and similar projects.
ii. Samples of Construction S-curve models.
Employment of more samples for construction S-Curve models to develop more
precise and accurate statistical formula for quarterly and monthly constants or, at more
flexible time intervals.
iii. Variation Orders.
It is necessary to establish the impact of variation orders on final construction cost, and
to set the national average so as to include the External Factor in the formula in the
projection of construction demand.
iv. Extension of Time (EOT).
To determine of the impact of EOT and the amount of Liquidated Ascertained
Damages (LAD) on projects as those in the CIDB’s database, so as to capture the
actual date and revision of construction period in the projection of construction
demand.
22
v. Constants for Projects Other Than New Projects.
To undertake research in other than new projects (repair, renovation, extension,
upgrade and maintenance projects) in order to establish more realistic constants.
Beyond the above recommendations to improve the projection for construction demand and
construction materials demand projection methodology, most important of all is industry
players such as contractors and clients; and professionals such as quantity surveyors,
architects and engineers provide support for the endeavour by furnishing CIDB with BQ
samples. A bigger sample database will provide more acceptable and truer constants in
forecasting future demand for construction and construction materials.