BLUEPRINT TO BREAKDOWN: FACTORS AND IMPACTS OF EARLY CONTRACTOR TERMINATION IN MALAYSIAN HOUSING PROJECTS
DOI:
https://doi.org/10.33736/jcest.8996.2026Keywords:
early termination, housing, main contractor, factor, impactAbstract
Malaysia, as a fast-developing nation, is experiencing a serious shortage of housing, surpassing the government’s capacity to meet citizens’ needs due to rapid population and urban growth. Despite efforts to meet this demand, the early termination of main contractors in housing projects continues to affect the industry, causing consequences such as project delays and cost overruns. This paper reports research that aims (1) to identify the key factors leading to the early termination of main contractors in Malaysian housing projects, and (2) to investigate the resulting impacts. A qualitative approach was adopted, using semi-structured interviews with five respondents from the developer, main contractor, and consultant perspectives. The study identified four key factor categories—client-related, consultant-related, contractor-related, and external—and four impact categories—operational, stakeholder, economic, and psychological/team dynamics. The findings will assist the Ministry of Housing and Local Government (KPKT) in understanding these factors and impacts, enabling the development of mitigation measures and initiatives to improve housing delivery in line with the National Housing Policy 2018–2025.
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