The Study on Cause and Effect of Abandoned Housing Project in Selangor

Construction industry is one of the most dynamic, risky, and challenging industries not only in Malaysia but other countries too. The main issues facing by the construction industry is abandoned building project. The issue of abandoned building had happened across the globe and brings negative impact to the nation and country. In Malaysia, the magnitude of this issue has grown to an unbearable state. According to the Sales and Purchase agreement, abandoned building is a construction work in a project site that has been continuously stalled for 6 months or more, whether during the project completion period or beyond the scheduled. When the projects of the building become abandoned, it gives an adverse effect such as downfall of economic growth. Besides, it will cause a serious problem of sustainability especially a waste of natural resources/material used for the construction. In order to prevent this problem, some mitigation plan is needed. This study was conducted to study the cause, effect and economic analysis on abandoned project. There is a need for broader discussions on its implications to the society and nation. The questionnaire survey was conducted and distributed to most civil engineers around Malaysia. The results was analysed using average index methods and likert scale. The result shows that mismanagement of the project by developer is the main factor that contributes to the abandoned building project. A suitable solution suggested by the despondence is in order to avoid abandoned project, the developer should have a stable financial and risk management systems. By this, the abandoned project can be avoided and will help in the growth of economy in Malaysia.