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PRESENTER
Prof. Dr. Christopher Preece
Department of Civil Engineering, RAZAK School of Engineering & Advanced Technology
STRUCTURE OF PRESENTATION
BRIEF BACKGROUND TO IBS IN MALAYSIA
ARE THERE BUSINESS OPPORTUNITIES IN IBS IN MALAYSIA? HOW DO WE ASSESS WHETHER IBS IS GOOD FOR OUR BUSINESS OR NOT?
WHAT ARE THE THINGS THAT COULD MAKE IBS MORE ATTRACTIVE AS A BUSINESS OPPORTUNITY?
CONCLUSIONS
Key Points
There are business opportunities in IBS in Malaysia from both the Government and private sectors. Focus is now on the private sector developers/owners/clients IBS is a good product Do we have the business strategies, resources and management skills to be able to compete? There are perceived and real problems in the construction value chain to be overcome if there is to be a general move from conventional construction to IBS. IBS can help to improve the general image of construction which will benefit all stakeholders.
There is therefore a market and opportunities for construction businesses across Government, Government Linked & private sectors ie. developers, manufacturers, designers, contractors etc.?
WHAT ARE THE NEGATIVE PERCEPTIONS ABOUT IBS THROUGHOUT THE VALUE CHAIN?
WHAT ARE THE NEGATIVE PERCEPTIONS ABOUT IBS THROUGHOUT THE VALUE CHAIN?
1. High initial investment
It was seen as the most significant barrier to IBS. The use of the system increases overall construction costs and this limits contractors interests as they will normally prefer using a method that is more economical since their main objective is to maximise profit. This results in them choosing to use the conventional method instead of IBS.
WHAT ARE THE NEGATIVE PERCEPTIONS ABOUT IBS THROUGHOUT THE VALUE CHAIN?
2. Monopoly of manufacturers and large contracting firms
In Malaysia, there are limited numbers of IBS manufacturers and this leads to market control, resulting in higher price of IBS components. Besides, since IBS requires high investment, the involvement of small contracting firms is limited since they lack the capacity to undertake IBS projects.
WHAT ARE THE NEGATIVE PERCEPTIONS ABOUT IBS THROUGHOUT THE VALUE CHAIN?
3. Limited knowledge of IBS among industry stakeholders
Developers/clients who lack understanding of the system and its benefits may not be interested in applying it; Designers with limited knowledge on IBS might find it difficult to produce drawings according to the concept of IBS; Contractors lack of awareness on the system may result in errors during construction such as problems in jointing and leakages.
WHAT ARE THE NEGATIVE PERCEPTIONS ABOUT IBS THROUGHOUT THE VALUE CHAIN?
4. Lack of integrity between designers, contractors and manufacturers
Cause - poor implementation of the system and often lead to mismatch between design and manufactured products
What the business challenges in moving from conventional approaches to IBS in the construction value chain?
What the business challenges in moving from conventional approaches to IBS in the construction value chain?
What are the business challenges in moving from conventional approaches to IBS in the construction value chain?
Property developers/contractors/building owners Insufficient push factor from the end buyer for IBS No tax breaks for IBS unlike Green Buildings
What are some of the business challenges in moving from conventional approaches to IBS in the construction value chain?
Designers Perceived as limiting creativity Lack of design knowledge Proprietary systems make is harder to adopt by designers
What are some of the business challenges in moving from conventional approaches to IBS in the construction value chain?
Manufacturing base Lack of volume and economies of scale due to non-standardisation of designs Lack of quality control in the smaller IBS manufacturers Lack of R&D, support services, technologies and testing labs Lack of innovative products
What are some of the business challenges in moving from conventional approaches to IBS in the construction value chain?
Construction site Lack of skilled people in IBS project management ie. Logistics planning and coordination, on-time deliver etc. Additional costs of hiring special equipment and machinery.
What things that would make IBS more attractive as a business opportunity
Can Government offer more tax incentives to increase contractors interests in IBS? Can it provide subsidies for machineries and moulds used to manufacture IBS components to lessen the contractors financial burden in undertaking IBS projects?
What things that would make IBS more attractive as a business opportunity
Is IBS in Malaysia perceived to be innovative and advanced in terms of R & D, use of IT and development of new technologies? Does involvement in IBS open up oppportunties for design and contracting firms to compete both domestically and internationally?
WHAT ARE THE THINGS THAT COULD MAKE IBS MORE ATTRACTIVE AS A BUSINESS OPPORTUNITY?
CONCLUSIONS
THANK YOU.