Modeling construction cost factors in the Klang Valley area of Malaysia

Abstract

Factors that should be taken into consideration during the economic evaluation of the building have a direct impact on the total project cost. Literature reviews on construction cost factors reveal that researches in this area have been conducted in various parts of the world decades ago. Nevertheless, none of these studies has substantively estimated the causal relations among the construction cost factors. As a result, this paper presents a research proposal to evaluate and model construction cost factors particularly in the Klang Valley area of Malaysia by using the structural equation modeling approach. The resulting construction cost factors models will be validated in terms of convergent and discriminant validity, construct reliability, and goodness of fit.