Examining Factors Affecting Budget Overrun of Construction Projects Undertaken through Management Procurement Method Using PLS-sem Approach

This paper focused on examining the effect of various factors on budget overrun in construction projects undertaken using management procurement method in Malaysia. It adopted a quantitative method for data collection using structured questionnaire survey amongst contractors, consultant and clients. A total of 118 samples were collected against 200 questionnaires that had been distributed nationwide. Gathered data was analyzed with an advanced multivariate method of structural equation modeling with PLS approach using SmartPLS software. The major finding showed all the constructs in model contributed significantly to budget overrun with R2 value of 0.623. Also, the developed model has substantial explaining power with GoF value of 0.62. This indicates that the model was able to be generalized in representing the budget overrun factors occurring in construction projects nationwide. By identifying these factors, it will help the construction community to take measures in improving the cost performance of the projects.