INDUSTRIALISED BUILDING SYSTEM (IBS) IN RESIDENTIAL PROJECT: READINESS AMONG CONTRACTORS IN TERENGGANU (INTERIM REPORT) Faculty : FACULTY OF ACHITECTURE, PLANNING AND SURVEYING Program : BACHELOR OF QUANTITY SURVEYING Program Code : AP224 Course Code : BQS 664 Semester : 5 Name : MUHAMMAD HARIZ BIN HASAN Student ID : 2018298006 Submitted to: PUAN SUHAILA TABLE OF CONTENTS CHAPTER TITLE PAGE TABLE OF CONTENTS i 1.1 INTRODUCTION INTRODUCTION 1 1.2 BACKGROUND OF THE STUDY 1 1.3 PROBLEM STATEMENT 3 1.4 OBJECTIVES 5 1.5 RESEARCH QUESTIONS 5 1.6 LIMITATION OF THE STUDY 6 1.7 SCOPE OF THE STUDY 6 1 2 LITERATURE REVIEW 2.1 INTRODUCTION 7 2.2 HISTORY OF IBS 2.3 DEFINITION OF IBS 7 9 2.4 TYPES OF IBS 10 2.2.1 Cast In Situ Construction Method 10 2.2.2 Composite Construction Method 11 2.2.3 Fully Prefabricated Construction Method 11 CLASSIFICATION OF IBS 12 2.3.1 Pre-Cast System 12 2.3.2 Formwork System 13 2.3.3 Steel Framing System 14 2.3.4 Prefabricated Timber Framing System 14 2.3.5 Block Work System 15 2.3.6 Innovative On-Site System 16 ADVANTAGES OF IBS 16 2.4.1 Reduce built time 16 2.4.2 Reduce the number of labours 16 2.4.3 Improvements in construction quality 17 2.4.4 Clean site conditions and reduced health and safety risk 17 2.4.5 Waste reduction 18 2.4.6 Potential cost financial advantage 18 2.5 2.6 i 2.7 READINESS IN IMPLEMENTATION OF IBS 19 2.8 CHALLENGES IN IBS IMPLEMENTATION 2.5.1 People 20 20 2.5.2 Process 21 2.5.3 Technology 22 2.9 BARRIERS TO IBS IMPLEMENTATION 2.10 WAYS TO INFLUENCE CONTRACTOR TO 22 24 IMPLEMENT IBS 3 METHODOLOGY 3.1 INTRODUCTION 25 3.2 METHOD OF DATA COLLECTION 25 3.2.1 Questionnaire 25 REFERENCES 26 ii CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION Industrialised Building Systems (IBS) is a method of construction that involved techniques and production of components or structures of construction requiring prefabricated components assemble on-site. The IBS has been recognised as a possible technique for improving the overall performance of building in terms of efficiency, cost effectiveness, health and safety, reduction of waste and duration of construction. This study was conducted to identify the readiness among contractors about IBS in residential project in Terengganu. In this chapter, it consists of background of study, problem statement, objectives, research questions, scope of the study and limitation of the study. 1.2 BACKGROUND OF THE STUDY The Industrialised Building System is a concept used by Malaysia's industry and government to reflect the industrialization and prefabrication of construction components. IBS can be described as a construction technique consisting of components that are manufactured, shipped, placed, and installed in a controlled condition to become a structure with little additional site work (CIDB, 2003). It is necessary to be cast on-site for parts of the building that are complex, repetitive, labour intensive, and time-consuming. The comprehensive design was carried out at the factory as standardized parts and then shipped to the site to be assembled. IBS offers clean mould technology for waste reduction during on-site assembly. IBS has begun to be adopted by the construction industry as a tool for achieving higher building efficiency and quality, lower health and safety risks, problems related to the availability of qualified labour, the illegal number of foreign workers, and the reduction of overall construction costs. Besides, it also produced less waste, low site material development, clean 1 surroundings, maintained quality, and lower overall cost of construction (Pan et al., 2007). IBS has been in use since the 1960s and looks forward to drawing stakeholders from the sector for the good of the building industry. In particular, the government offers incentives and encourages the construction industry to switch from traditional methods to IBS construction. According to CIBD in 2016, there were 21 manufacturers and suppliers for IBS in Malaysia. In many mega projects, IBS has been introduced such as Kuala Lumpur International Airport (KLIA), Light Rail Transit (LRT), and KL Sentral. For residential project, IBS system has been widely implemented by private residential projects in Malaysia such as Shah Alam, Wangsa Maju, and Pandan (Sarja, 1998), Dua Residency in Kuala Lumpur, Taman Mount Austin and Tongkang Pecah in Johor (CIDB, 2006). In other countries, IBS for housing industry in Japan has been adopted in the 1960’s. About 20% of all houses in Japan using prefabricated during April 1999 to March 2000. From that, there were 73% using steel framing system, meanwhile wood framing 18% and the nine percent using concrete framing. In Australia, at Bradley’s Head in 1904, the first lighthouse using precast concrete has been built. The use of IBS clearly seen after the Cyclone Tracy, which hit Darwin in the small hours of Christmas Day 1974, killed 71 people and devastated 80 per cent of the city. After the tragedy, there were about 425 precast concrete of cyclone-proof had been constructed with one house can be built per day (CIDB, 2016). Five common types of IBS are commonly used in construction are Block Work System, Pre-Cast Concrete Framing, Panel and Box Systems, Steel Formwork System, Steel Framing System, and Prefabricated Timber Framing System (Hamid et. al. 2011). The steel formwork scheme, for instance, does not use heavy machinery or high technology to manage it. It is the best choice since steel formwork can be used for a longer time rather than timber which can be used only several times and required a lot of timber usage and labour intensive. It also can improve the accuracy of the quality, design, and faster completion time. 2 1.2 PROBLEM STATEMENT For the ongoing building pattern in Malaysia, traditional construction techniques are still being used even with the government's demand for more affordable housing and other forms of construction project (Zuraidah A., 2012). Based on Kamar et al. in 2009, in terms of cost, time and quality, IBS delivers advantages, ensuring higher building efficiency and competitiveness, minimizing risks related to occupational health and safety, relieving the dilemma of skilled workers and reliance on foreign labour and accomplishment of the key aim of reducing total building costs. Even though IBS has been used in the past 40 years with technology advancement to introduce IBS, the application still not widely use (Zuraidah A., 2012). The surveys also reveal that IBS's small take-up is largely due to price and budget limitations, along with the abundance of cheaper foreign labour. This is commonly between the small contractors. Since heading in the direction of large capital spending in heavy machinery includes mechanisation and industrialised processes, small contractors in building facilities are difficult to bring to an unfamiliar method in order to protect their projects, which are often small-scale evolution (Hung et al., 2015). The number of contractors engaged in IBS implementation is still poor, according to CIDB statistics, despite action measures in Roadmap 2011-2015 (CIDB, 2010). In building project, there were 6.14% of contractors in Malaysia that apply IBS (CIDB, 2007). According to Susanto in 2008, readiness can be reflected in the mindset of members of the organization as their intention to improve and to change. Especially where the transition is due to the adoption of emerging innovations, the organizational change process is often difficult for the organization (Nawi et al., 2011). The contractors, especially small contractors are familiar with the traditional method and claim that the older one is enough even IBS method is also suitable for small-scale projects and they are not prepared to move to the mechanised and industrialised method. It is because they have smaller amounts of 3 financial funding. They are reluctant to set up their own manufacturing factory since it requires capital-intensive investment. (Badir et al., 2002). Readiness is one of the parameters used in the process of change management, which is whether when the organization is prepared for the phase of change, it would ease the process to introduce changes (Susanto, 2008). The readiness among contractors to implement IBS method in residential are important to make sure they can adapt with the method. There are some challenges faced by the contractors to implement IBS in residential project. For instance, high in capital cost. According to Qays et al in 2010, at the starting of project, great investment is required to set up the factory, machine and mould production, and also engineering consideration to implement IBS method. Maintenance cost need to be considered as well. It will be difficult especially for small contractors since they did not have enough finance and capital to implement IBS method in their projects (Sadafi et al., 2011). Based on Razak & Awang in 2014, one of the most commonly challenges faced by the contractor is lack of IBS knowledge in term of design, fabrication and installation of work. Some of other challenges are having inadequate IBS awareness, unwillingness to change, inadequate employees in the industry, lack of IBS suppliers in the sector and inability to shift technologies (Razak & Awang, 2014). It is important to the contractors to identify the challenges as a preparation for them when adopting IBS method in residential projects. There are some recommendations about the best ways to implement IBS among residential contractors. Based on Lu & Liska in 2008, good collaboration in the workplace can address the issue of complicated interfaces between systems and ensure that successful series of processes in the production factory and on site. Blismas in 2007 described during the design processes, the team members such as contractor should be interested in collaborating with the designers to ensure that the development is not brought to a point where the advantages that can be accomplished by the use of this process are restricted. It is to avoid design conflict between contractor and designers. The contractors also need to enhance 4 the knowledge about the IBS method. Enhancement and learning will help to improve understanding of the systems and the philosophy underlying them as awareness to practice IBS increases (Neala et al., 1993). The recommendations of the best ways are to influence the contractors in residential projects to implement IBS method since it will encourage them to choose IBS method instead of traditional method. IBS method is important in residential project such as in large scale project. IBS will give benefits in term of cost, time and quality of the construction. Lack of previous studies about the implementation of IBS method by contractors in residential project influenced the researcher to conduct the study. 1.3 OBJECTIVES i. To determine the readiness of IBS implementation among residential contractors players. ii. To identify the challenges of contractors in adopting IBS construction. iii. To recommend the best ways in implementation of IBS among residential contractors. 1.4 RESEARCH QUESTIONS i. What is the readiness of IBS implementation among residential contractors players? ii. What are the challenges of contractors in adopting IBS construction? iii. What are the best ways in implementation of IBS among residential contractors? 5 1.5 SCOPE OF THE STUDY The study will be carried out to identify the readiness among contractors about IBS in the residential project. The location of the study is at Terengganu. The study is conducted at Terengganu because less adoption of IBS method at there. According to Orange Book in 2009, the number of IBS manufacturers in Terengganu was five comprises of one for precast concrete, two for timber framing and also two for blockwork systems. Compared to the other states by Orange Book, Terengganu is placed at the middle for IBS manufacturers in Malaysia meanwhile Selangor recorded the highest number of IBS manufacturers which is 49. Lack of adoption of IBS among contractors is one of the reasons why IBS manufacturers is less in Terengganu. Based on Department of Statistics Malaysia, at Terengganu, in 2018, there were 1.23 million of population meanwhile in 2019, there were about 1.25 million. From that comparison, it can be said that the population of the people in Terengganu increase about 20000. Since the population increase by year, the demand for the residential projects will be increase. To fulfil the demand for the residential projects, IBS method is the best way to make sure the project will be finished on time without affecting its quality with affordable cost. This statement was supported by CIDB in 2006 stated that IBS engage at first place in construction of high rise with low cost for residential building to succeed in dealing with increasing demand for housing needs. It not only provides benefits to the contractors, but also for the buyer as well. 1.6 LIMITATION OF THE STUDY There are some limitations to conduct the study. Firstly, during the COVID-19 pandemic, there are some restrictions such as the need to stay at home and could not stay out for too long. To conduct an interview session, it is difficult to conduct face-to-face and need to call to reach them. After that, the questionnaires distribute through online. It may be easy to do but some contractors did not answer the questionnaires given. 6 CHAPTER 2 LITERATURE REVIEW 2.1 INTRODUCTION In this chapter, it focusses about literature review from previous studies. The content of literature review is based on the objectives of the study. It consists of history of IBS, definition of IBS, types of IBS, classification of IBS, advantages of IBS, readiness of IBS, challenges of IBS, barriers of IBS and ways to influence construction players to implement IBS. 2.2 HISTORY OF IBS Based on Thanoon et al. in 2003, IBS began in Malaysia in the early 1960s when Malaysia's Minister of Housing and Local Government visited several European nations to analyse their housing development policy. The first project using IBS was initiated by the government after their visit in 1964. The targets were to create quality and affordable houses and accelerate the delivery time. Kuala Lumpur was committed to the project of around 22.7 acres of land along the Jalan Pekeliling, containing 7 blocks of 17 stories flat, 3000 units of low-cost flat and 40 shops lot. This project was awarded using wide panel precast concrete wall and plank slabs to JV Gammon & Larsen and Neilsen. According to Din in 1984; CIDB in 2003; CIDB in 2006, the project was completed in 27 months, including the time taken to build Jalan Damansara's RM2.5 million casting yard. The second government-initiated housing project is at Jalan Fifle Range, Penang. It consists of 6 blocks of 17-story flats and 3 blocks of 18-story flats. Hochtief and Chee Seng were given the project using the French Estoit Method System (Din, 1984; CIDB, 2003; CIDB, 2006). 7 Precast wall panel system was the common types of IBS method used on that time. The industrialisation of building at the earlier level, however, was never maintained. The collapse of the early manufactured closed structure made industry players fearful of modifying the method of construction. Any of the international structures adopted in the late 60s and 70s were also found to be inadequate for social and environment activities in Malaysia (CIDB, 2005). The industry has been continually developing new and improved innovations. Wet joint structures have been described as more fitting for use in our tropical climate. Bathroom styles, which were comparatively wetter than those in Europe, were also best used (CIDB, 2005). In 1978, another 1200 housing units using prefabrication technologies were introduced by the Penang State Government. After two years, the Ministry of Defense introduced a large prefabricated panel building scheme at Lumut Naval Base 9 for the construction of 2800 units of living quarters (Trikha and Ali, 2004). The use of structural steel components took place in high-rise buildings in Kuala Lumpur during the period from the early 80s to the 90s. The use of steel structures drew a great deal of interest with the construction of the 36-storey Dayabumi complex by Takenaka Company of Japan in 1984. (CIDB, 2003 and CIDB, 2006). The demand for the new township saw an increase in the use of precast concrete structures in high-rise residential buildings in the 1990s. Based on CIDB, 2003 and Hassim et al. 2009, between 1981 and 1993, as a state government development department, Perbadanan Kemajuan Negeri Selangor (PKNS) acquired precast concrete technology from Praton Haus International. Germany was focused on the design of a low-cost house and highcost bungalow for the new townships in Selangor. Around 52,000 housing units were registered using the Praton Haus system (Trikha and Ali, 2004). According to CIDB in 2006, in 1994 to 1997, in several national iconic landmarks, such as Kuala Lumpur Convention Center, Bukit Jalil Sport Complex, hybrid IBS application is used, built using steel beam and roof trusses and precast concrete. Other than that, using steel roof framework and precast hollow core, the Lightweight Railway Train (LRT) and KL Sentral were built. While the KL Tower was designed using steel beams and the tower head column. The 8 steel roof framework was designed at Kuala Lumpur International Airport (KLIA) and the Petronas Twin Towers had 9 steel beams and steel decks for the floor system. In terms of time, cost, quality and architectural aspects, the modern generation of construction used by IBS is better compared to traditional method. Steel frame, precast panel and other IBS structures were used to build government buildings using hybrid design techniques (CIDB, 2006). 2.3 DEFINITION OF IBS IBS is a revolutionary development in the production of construction material that is installed on-site. It is a very significant indication that can change the current situation and difficulties in the local construction industry. The prefabricated parts were manufactured at the factory and then transported to the site. The manufacture of the component requires preparation, management, and quality maintenance at the beginning of the process to minimize waste in terms of material and cost and to ensure that the component has no defects and can be delivered on time. IBS can minimize unskilled and foreign workers, provide a secure on-site environment, shorten construction phase times, ensure the quality of structural works, and save costs. In many aspects, IBS can be defined based on the conceptual understanding of IBS. According to Rahman & Omar (2006), IBS is a building that involves the construction of prefabricated materials produced and pre-assembled in the factory and then transported to the site to be fully constructed and assembled. By using the machine or formwork in the factory, the produced parts are manufactured mechanically. 9 Chung & Kadir (2007) described IBS as the mass manufacturing of construction parts that are manufactured on the principle of the standard form, size, and dimension of the components in the factory or on-site. The part would then be brought to the construction site to be re-arranged to build the building according to the standard requirement. The CIDB has described IBS as construction systems where the components are assembled in a factory, on or off-site, or may be referred to as prefabricated components. The components would then be delivered, placed, and assembled on-site with fewer additional site activities. 2.4 TYPES OF IBS There are some types of IBS in the construction industry. According to Badir & Razali (1998), The IBS construction system can be divided into four groups such as the conventional method, cast-in-situ, composite method, and fully prefabricated. From the stated method of construction, the last three methods of construction can be described as non-conventional and labelled as the IBS method. 2.4.1 Cast in-situ Construction Method Prefabricated formwork elements are lighter and easier to erect and assemble. Formwork is a structure that is usually used for temporary but sometimes it can be partially or wholly permanent. Based on Dulaimi in 1995, Formwork is intended to hold fluid concrete, then it can be moulded into the appropriate dimensions and shape and stabilized until it recovers completely to become self-supporting. The most typically prefabricated formwork materials in construction are metal products such as aluminum and steel, plastic products, fiber products, and polythene formwork. Those prefabricated formworks can be used many times since it is using reuse material compared to timber formwork which can be economically used only several times. 10 Dulaimi (1995) described there are several forms of formwork mentioned, such as tunnel shape, column and beam shape, modular metal moulding shape, and permanent form. The tunnel formwork system used half and finished tunnels. Two horizontal and vertical frames, installed at the right angle and backed by strutting and props, comprise a half tunnel. In a single operation, the walls and slabs are built. This technique has no joints, and there will be no leaks (Friedman & Cammalleri in 1993). The modular moulding metal is also a tunnel forming method, but by the traditional methods erected on the finished walls, complete walls are cast-in-situ and precast slabs or cast-in-situ slabs (Dulaimi 1995). 2.4.2 Composite Construction Method The aim of the composite construction process, referred to as partially industrialized, is to increase efficiency, minimize costs, and shorten construction time. Badir & Razali (1998) the definition of "partially industrialized" mentioned comes from the combination of the fully industrialized and traditional construction process. Some elements that can be standardized from this construction process are prefabricated in the factory while the remainder is cast onsite. The installation of precast components such as slabs, infilled partitions, toilets, staircases, and floors for integration into the main unit would require this procedure. But it is different for columns and beams. Partadinate in (1998) stated that as it is comparatively cheaper and requires less time for part of the process, columns and beams are usually cast in situ. 2.4.3 Fully Prefabricated Construction Method Based on Badir & Razali in 1998, it is possible to divide entirely prefabricated building methods into two major groups, such as prefabricated on-site and prefabricated off-site. Onsite is from the construction site meanwhile off-site is at the factory. On-site precast involves casting the roof and floor slabs on top of each other so that while the columns and jacking machinery are in place, the components can be raised into place. Cast precast components 11 at or near the construction site will give the factory some advantages to the project, and in some cases, the most satisfactory approach is economically and organizationally. Part or all of the building's materials are produced or prepared away from their final location in off-site prefabrication. Great quality of the products can be accomplished by converting the design and construction into the factory, so the components and suppliers are optimized and produce in massive loads economically. 2.5 CLASSIFICATION OF IBS According to Hamid et. al. 2011, the IBS system can be divided into the precast system, the formwork system, the steel framing system, the prefabricated wood framing system, the blockwork system, and the innovative on-site system. 2.5.1 Pre-Cast System Based on Hamid et. al. 2011, pre-casting a panel and construction method offers simple standardization, speed, cost-effectiveness, high-quality finish, and improved design of the façade. For high-rise buildings like condo towers, the precast system is more economical. Due to the repetitive nature of the architecture, IBS may give them advantages. Precast materials include a range of shapes, such as architectural and structural, for various styles of use. In the meanwhile, conventional precast beams, slabs, walls, columns, staircases, parapets, and drains were used as the latest precast elements for toilets, façades, pile caps, lift shafts, and refuse chambers. Proper management of installation between panels and facilities is compulsory in the precast method. The adopters of IBS need standardized tagging and coding of the components to resolve the issue. To avoid double handling, systematic numbering and uniform details are needed. If the decision to use it is made at the early stage of the building, this IBS method offers benefit. This practice would enable IBS consultants, suppliers, engineers, or other experts to participate by exchanging their skills during the design process. The cooperation of the design team can be developed by strengthening contract and 12 recruitment, making a consistent declaration of customer expectations, or incorporating them starting from the project briefing of the initiative of all customers. The benefits of using the precast concrete framed system are that the system uses a highly mechanized building process to facilitate faster track construction and less on-site operation. In terms of wide spans and open spaces, the system provides stability without disrupting internal walls. The skeleton frame also allows architects more flexibility to build claddings for façades. After that without the use of the pole, the precast wall framework creates open spaces between bearing walls. With the use of light partition walls, the system will also provide versatility in the internal interface design. It is possible to standardise and manufacture precast panels on broad scales. It will have the benefits of speed and cost savings in the building. As a consequence, it allows the owner with better cash flow. Prefabricated walls may be used to produce the consistency of the building's interior and exterior finishes. 2.5.2 Formwork System Hamid et. al. 2011 stated that for low-rise and high-rise buildings, the steel formwork method is appropriate. In several locations in Malaysia, the method has quickly gained popularity because it offers faster erection speed, lower cost, and basic equipment used. For the cast in situ elements, the steel formwork method offers reasonable accuracy and a smoother internal finish that removes the need for plastering. Besides, the system offers more advantages, such as fire resistance and sound insulation. Due to its advantages, the method has become more famous for big and small contractors. Instead of the traditional approach, the formwork technique is safer, cleaner, and needs less labour intensive because it is modular enough to carry out instant requirement adjustments and can be used again in many programs. For high-rise building construction, some formwork systems are economical and effective. The initial investment cost for formworks and moulds is minimal, taking into account the aspects needed to complete the shell structure of the building structure. 13 For example, the tunnel form system is a formwork system that can be used by contractors to easily cast slabs and walls in one process. By offering a smooth and quick operation that results in efficiency, cost-effectiveness, and high finish consistency, a tunneltype system simplifies the entire construction process. Projects in tunnel form have proved to yield remarkable outcomes that can be obtained in terms of performance, production, quality, and economy. It can be reused roughly 500 to 1000 times and can be an economical way to construct buildings with redundant layouts and components. The systems are the most favoured by contractors in Malaysia for cellular construction, while the customer appreciates the potential of Tunnel Type to offer budget and one-time projects. 2.5.3 Steel Framing System The use of steel structures was mainly for commercial and industrial buildings. The housing application is restricted to roof trusses only. According to Hamid et. al. 2011, in the construction industry, the implementation of steel roof trusses has proved its potential by making the cost-efficient relative to timber roof trusses. Simplification and workability of design and even the greater speed of construction are the advantages of using a steel frame method. With a large number of replicated components in the structural framework, the economy and speed of construction can be increased. In addition to high-rise structures, the use of steel components is also common with colleges, universities, schools, hospitals, and commercial complexes being built. The structural steel provides the builders with greater stability and efficiency, quicker returns on the owner's investment, and easy construction for the contractors. 2.5.4 Prefabricated Timber Framing System The Malay and Orang Asli of peninsular Malaysia and their associated Bumiputera in Sabah and Sarawak have already built traditional housing by using timber structures before the approach of modern and international presence. Hamid et. al (2011) described the design and construction of structures and buildings using prefabricated wood-based components for structural or load-bearing elements were included in the timber structure method. The 14 prefabricated timber consists of ready-cut plus workshop manufacture of column and beam joints and structural panels that only without column and beam walls and floors. While timber components are also seen as limitations to the use of timber in building since their availability and expensive. Timber construction frame systems have their demand, from basic housing units to buildings requiring high aesthetic values such as resorts and chalets, provide fascinating architecture. 2.5.5 Block Work System Malaysia's IBS method would not inhibit the idea of mass manufacturing and technologically advanced technology. A modular, simple, and most versatile method that can be used for many industries is the blockwork system. With the low capital spending that many contractors took part in the blockwork produced low-cost IBS. The best way of implementing IBS is IBS blockwork, and blockwork systems can effectively apply to the building industry. But to design blockwork, there is a need for professional designers. At the design phase, the blockwork method can be compared according to the modular dimension and also to the LEGO system that incorporates multiple parts to become a structure. The load-bearing wall applies for some engineered block work by combining the columns and beams as an integrated part of the wall for all forms of houses up to 5 storeys high. In the meanwhile, the partition and fence are ideal for a non-load-bearing wall for the blockwork method. The system includes uniform scaling that keeps the site coordinated, tidy, and safe for construction. The block structure is modular and sufficient and utilises other IBS technology. It is also manufactured and assembled quickly. In terms of calculation, the block structures must be recognized as modular in some form of standardization and also integrate industrialization and factory automation. 15 2.5.6 Innovative On-Site System A temporary manufacturing facility was also built on-site by some businesses. The temporary manufacturing plant was extremely efficient in delivering components to very high quality, at a pace that met demand, and at lower costs than anticipated, such as no transport costs to bring the prefabricated components from the factory to the construction site as they were already prefabricated on site. It should be seen that the IBS options were not limited to fixed long-term services but were all about recognizing the principles of production and manufacturing. 2.6 ADVANTAGES OF INDUSTRIALISED BUILDING SYSTEM IBS consists of such benefits that influence the market to accept and recognize them to apply to their project. IBS offers them advantages, eventually leading to a cost-benefit. The application of the IBS approach has several benefits. 2.6.1 Reduce built time Firstly, the construction time was shortened. Since the use of modular materials and a simple construction process, IBS designs are easier to complete than traditional approaches (Trikha & Ali, 2004; Blismas 2007; Pan et al. 2007). Since on-site and assembly processes are typically carried out at the same time, it has been seen to be easier to develop (Trikha & Ali, 2004). That would decrease the length of work and shorten operations by reducing on-site tasks and the volume of work (Mann, 2006; Blismas, 2007; Blismas & Wakefield, 2008). 2.6.2 Reduce the number of labours After that, the quantity of workers would be minimized. IBS delivers a reduction of labor and resources economic benefits as the amount of labour-consuming criteria of IBS is smaller than conventional approaches. (Badir et al. 2002; Marsono et. al., 2006; Na & Liska, 2008). In certain cases, the use of IBS indicates that the number of unqualified and skilled workers 16 participating on-site would dramatically decrease. In Singapore, relative to the traditional process, the use of a prefabricated method eliminates labor by up to 46.5 percent (Chung, 2006). For younger generations who are unable to be active in the building industry, the use of IBS can offer more opportunities. Any uncommon workers do need the qualifications and IBS training (Trikha & Ali, 2004). Compared to unskilled workers doing manual jobs in traditional construction, it can be calculated that qualified professional workers at IBS will have more productivity and benefits (Trikha & Ali, 2004) 2.6.3 Improvements in construction quality In terms of productivity, consistency, performance, IBS offers advancement as it uses technological development by factory-made components. The chances of bad workmanship and low-quality control would be minimized. Because of the development of the components under the strictly regulated environment, the quality of the final products of IBS is usually much better than traditional work (BRE, 2002; Haas & Fangerlund, 2002; Gibb & Isack, 2003; Trikha & Ali 2004; BURA, 2005). Detailed and complicated structures will be inspected, and before they are assembled into the system, any damaged components will be discarded. According to CIDB in 2010, IBS also offers high-quality finished surfaces where the section of joints is the only section to be grouted and surface plastering is excluded. 2.6.4 Clean site conditions and reduced health and safety risk Compared to traditional approaches, which are wet and unorganized building conditions, IBS construction sites have been shown to look planned and tidy. When using IBS, temporary work waste, such as props and timber designs, which are widely found in traditional construction, can be avoided. It also eliminates safety and health risks because IBS delivers better working conditions (Pasquire & Connolly, 2002; BURA, 2005; Chun, 2006). 17 2.6.5 Waste reduction As the elements of the buildings are often prefabricated, IBS may reduce the amount of waste. Then the pieces will be assembled into the building's frame. The strategy has allowed reducing the environmental effect of building operations in productive ways. In the factory world, prefabricated products consist of waste minimisation through the alignment phase, uniform procedures, and coordinated production. IBS often offers environmental and economic protection as the mould materials can also be recycled by another project, minimizing costs and economies of scale (Thanoon, 2003; Kamar et al. 2009; CIDB, 2010). 2.6.6 Potential cost financial advantage Compared to the traditional method, IBS may be a cheaper method of construction. IBS will be less costly for the whole life of the construction. There are similar expense savings for the material and building overheads. (Kamar et al. 2009). There are similar expense savings for the material and building overheads. In the meantime, it provides easier distribution to finish the building construction at the indirect expense (Trikha & Ali, 2004). The incentives are useful for the development of small offices and shops because as implemented for the construction of McDonald's outlet in the UK, it will speed up the timely completion (Ogden, 2007). In comparison, the prefabricated materials for manufacturing and installing the components in the IBS structure eliminate the use of shuttering, scaffolding, and other temporary support compared to the traditional approach used for on-site installation. (Trikha & Ali, 2004). 18 2.7 READINESS IN IMPLEMENTATION OF IBS According to Weiner in 2009, readiness, which represents a condition able to take on both mentally and behaviourally that is ready and competent. Readiness can be stated at any level of study and can arise at any level for the individual, team, group, department or level of organization. In organizational change, the initial aspect is readiness for transformation and this is the most important thing that need to be consider (Walinga, 2008). According on the significance of readiness to adapt and the lack of readiness of the Malaysian IBS construction teams, more analysis on the requirements or factors that lead to transform the readiness from the traditional approach to IBS should be applied. Several studies have shown that, in IBS application, the barriers in Malaysia are bad perception, preparation problems, costs and supplies, poor planning and regulations, poor in term of readiness to implement IBS, and lack of knowledge (Nawi et al., 2011; Kassim & Walid, 2013). It shown that readiness is one of the barriers in IBS application. It is important for the contractors for their readiness to implement IBS method to make sure they can prepare if any consequences happened. Since 1960, IBS has been adopted, and since then, there are many benefits that can be found from the IBS application in Malaysia. Even though the advantages of IBS are already understood by construction players, but IBS implementation in Malaysia is still at a low level. The studies in IBS administration or soft problems in IBS, such as suppliers, depending on the experience of academic study compared to technological challenges such as concept framework, material testing, and product implementation, development projects, readiness of implementation, benchmarking, collaborative and interconnected design and supply chain processes are less oriented (Nawi et al., 2015). Based on Mohammad et al. in 2009, the acceptance and perception stage, issue and implementation strategies for IBS in Malaysia had been studied. Their study indicates that to incorporate IBS in terms of general readiness is practically, financially competent and even the client needed. 19 In CIDB report, is has been subjected about the main objective of the research to measure the level of the IBS adoption and readiness in Malaysia (Hamid et al., 2013). Nevertheless, there is lack of research carried out on the key factors that affect readiness. This is useful as a guideline for the successful implementation of the IBS project, particularly for new or small players in the Malaysian building industry at IBS (Kamar, 2011; Yahya et al., 2012). The readiness is important especially from new and small contractors since lack of guidance among them to implement IBS method. 2.8 CHALLENGES IN IBS IMPLEMENTATION One of the key contributors to economic activities in the country is the building industry. For example, because it is considered an important part of the sustainable construction programme, the Malaysian government has allowed the industry to use IBS partially or completely. But the introduction of IBS raises several difficulties. According to Othuman et. al. (2016), the people, process, and technology are the challenges of IBS implementation. 2.8.1 People Othuman et. al. (2016) described that there is still a shortage of trained workers in the industry in Malaysia. In order to lead the IBS implementation on-site, most of the contractors and local professionals lack an accomplished technical engineer. The absence of a construction engineer to perform molding, assembling, and manufacturing and the absence of land surveyors for the guidance panel represent obstacles to the adoption of the IBS. To build IBS for advanced skills, such as assembly and system integration, additional rigorous training programs are required. These projects however require more investment and time. Universities and colleges can deliver, at the undergraduate level, an IBS program. In order to facilitate IBS, prospective practitioners should be introduced to IBS in the early part of their education. Instead of the IBS scheme, architects use traditional building approaches more 20 often and have not yet changed their strategy. They just assume that IBS is committed to highrise buildings. 2.8.2 Process According to Othuman et. al. 2016, under the IBS method, the utilization of on-site workers such as carpenters, bar benders, and concreter is low. Machine-oriented skills were used in the method, both on-site and the factories. For the IBS system's direction, the industry needed a team. Compared to qualified skill workers from IBS, housing developers choose onsite workers to install the structure and to reduce construction and design coordination problems. In the current procedure, the client compensated the contractor before work began, who awarded between 10% and 25% of the overall amount of the contract value as the initial cost. (Nawi et. al.,2007). Meanwhile, in an IBS project, before any improvement in the payment, the contractor is required to invest in the initial expenditure to be billed to the suppliers. However, in order to finance the initial process of IBS programs, local contractors do not have enough funds. Nawi et. Al. in 2007 described that before supplying these components to the building site, IBS suppliers are typically expected to advance approximately 75 percent of the capital to produce the IBS components. For housing developers, the situation is the same. For example, in traditional and IBS methods, the payment advance for on-site materials is different. Instead of being a traditional system, the cost of resources, equipment, and labour is not a good business expenditure. Housing developers must have enough funding to use the method. The developer remains in a struggle concerning the demand continuity aspect in applying the IBS method in housing projects. For instance, if the developers wanted to build a new production facility for IBS panels, the return on investment would not in particular, especially for small buyers and the uncertainty of obtaining the project. 21 2.8.3 Technology Based on Othuman et. al. 2016, the problems of flexibility exist in types of buildings are from housing developers that need a different design. Between the architecture of high-rise buildings and terrace houses, the approach is different. Developers assume that the IBS method is for high-rise buildings only as it requires repeated construction and large-scale development. If the same approach was used for terrace houses, it will cost more. More preference for IBS skilled workers instead of traditional skilled workers. In order to construct the components, the IBS system relies on machine and software expertise and requires specific preparation and learning skills to be interested in this system. The transition of technologies is also an issue for IBS implementation. To introduce this technology in Malaysia, local developers need guidance from international technology and expertise. To build the IBS parts, IBS materials and machines are imported. As a result, during the assembly of the components to become structure, the cost of development of IBS components and skills will increase. 2.9 BARRIERS TO IBS IMPLEMENTATION IBS has also not been adopted by the building industry, even though it has advantages for them. Since it is an existing sector, the building industry consists of several culturally embedded and deep-seated traditions, so the establishment of something is viewed as new or separate challenges. There are several challenges to IBS execution. Firstly, from a conventional construction method to the production process, IBS requires a significant and drastic transition. Compared to the traditional approach, it can be determined that the methods, idealism, leadership, and skills of the IBS method are very distinct (Hamid et al. 2008). Then the design, manufacturer, installation, and other procedures associated with the conventional approach require a coordinated process management and preparation system to ensure that mistakes and defects are prevented (Warszawski, 1999; Gibb, 2001). The lack 22 of understanding of the IBS system is a major restriction in the sector. There is no experience in the marketplace for the execution of the IBS amongst designers and parties interested in development. Because of a lack of expertise to manage and assemble the elements of the building from the IBS scheme, the construction methods still adopt the conventional process. (Blismas, 2006) After that, IBS is used to overcome the lack of expertise in the building industry, some argue that after numerous project approaches and tasks have been conducted, a skilled workforce in a particular skill such as coordination, incorporation, and assembly is more important to IBS. (Pan et al. 2007; Pan et al. 2008). Implementation of the IBS involves a modern sector, financial planning, and investment strategy, with an optimal combination of project selection and cost management that provides an adequate amount to support the investment (BSRIA, 1998; Pasquire & Connolly, 2002; Malik, 2006; Pan et al. 2008). The launch of IBS involves improvement in traditional supply chain management and procurement (Venables et al. 2004). Compared to traditional approaches, it is different to purchase supplies in advance before the actual site develops (BSRIA, 1998; Whelan, 2008). The key obstacles to the introduction of IBS by the industry are also not solely technological. They are linked to the operational challenges and techniques that support the ability of companies in the construction industry to adopt the IBS process. The basic fundamental improvement for the sector has to be the introduction of the IBS. IBS modifies the way people who have contributed to the construction industry work with their brand and procedure as well. IBS's benefits should be calculated based on an appreciation of the actual understanding development while respecting the decentralized construction industry's limitations and risks. 23 2.10 WAYS TO INFLUENCE CONTRACTORS TO IMPLEMENT IBS IBS is a possible strategy for enhancing overall building efficiency. Over 50 years, IBS has not been extensively embraced and used in Malaysia. The important considerations for IBS contractors need to be determined in order to speed up the implementation of IBS. According to Hamid et al. in 2008 and Pan et al. in 2008, the construction sector has started to believe IBS as a means of doing better construction in term of productivity, quality, elimination of workplace safety and health hazards, improvement of skilled worker and issues related to dependence on manual foreign labour, and accomplishment of the overarching aim of reducing total building costs. It is important to influence the contractor to implement IBS method since it will give benefits for them in term of cost, quality and time. There are some factors that influenced to the implementation of IBS among contractors. Based on Lu & Liska in 2008, good collaboration in the workplace can address the issue of complicated interfaces between systems and ensure that successful series of processes in the production factory and on site. Blismas in 2007 described during the design processes, the team members such as contractor should be interested in collaborating with the designers to ensure that the development is not brought to a point where the advantages that can be accomplished by the use of this process are restricted. It is to avoid design conflict between contractor and designers. The contractors also need to enhance the knowledge about the IBS method. Enhancement and learning will help to improve understanding of the systems and the philosophy underlying them as awareness to practice IBS increases (Neala et al., 1993). According to Warszawski in 1999, proper implementation of IBS includes an experienced workforce and professional expertise in design, planning, organisation and control with regard to the development, arrangement and assembling of components. Mohammad Kamar et al. in 2010 stated that Information and Communication Technology (ICT) is an effective and efficient method for facilitating tendering, developing integration, reliable 24 data, efficient management of project records, scheduling, detection, delivery, logistics, and cost comparison processes. CHAPTER 3 METHODOLOGY 3.1 INTRODUCTION The methodology of the study is the approach used for locating, gathering, evaluating data, and thus offering results based on observation. In order to act as a reference to achieve the goals and scope of the project, the proper preparation and thorough study of the flow of the research methodology is important. Furthermore, this chapter will address in-depth the analysis methods from how the data is obtained until the processed and evaluated to achieve the study objectives and scopes. It is including the literature review to obtain the input that is required. In this study, the primary data is for questionnaire to be done among contractors in residential projects at Terengganu meanwhile literature review is being used for secondary data to collect data and information regarding to the objectives and scope of the study. 3.2 METHOD OF DATA COLLECTION 3.2.1 Questionnaire After a comprehensive review of the literature, the questionnaire was planned and developed. The target respondents are among contractors from residential projects in Terengganu. It consists of four section. Section A is about demographic respondent. Section B is for level of readiness of IBS implementation among residential contractors. Section C is about the challenges of contractors in adopting IBS construction. The last section which is Section D is for the best ways in implementation of IBS among residential contractors. 25 References Badir, Y. F., Kadir, M. R. A., & Hashim, A. H. (2002). Industrialized building systems construction in Malaysia. 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