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Published in 2011 by
Construction Research Institute of Malaysia (CREAM)
MAKMAL KERJA RAYA MALAYSIA
IBS Centre, 1st Floor Block E, Lot 8,
Jalan Chan Sow Lin
55200 Kuala Lumpur
MALAYSIA

ISBN 978-983-44938-5-1

Copyright 2011 by Construction Research Institute of Malaysia (CREAM)

All rights received. No part of this publication may be reproduced, stored and transmitted in any form, or by any means without prior
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The views expressed in the papers are of the individual authors. The editors are not liable to anyone for any loss or damage caused
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realm of a licensed professional practice.

Construction Research Institute of Malaysia (CREAM)

Editorials
1. Ir. Dr. Zuhairi Abd Hamid
2. Dr. Kamarul Anuar Mohamad Kamar
3. Mohamed Azhari Nor Azman
4. Mohd Nasrun Nawi
5. Maria Zura Mohd Zain
6. Mohd Khairolden Ghani
7. Ahmad Hazim Abdul Rahim
8. Ani Saifuza Shukor
9. Zulkefli Ismail
10. Helmi Aizat Ahmad Fuad

Construction Research Institute of Malaysia (CREAM)

Executive Summary
This report is a compilation of outcome derived from workshop organised by Construction Research Institute
of Malaysia (CREAM), University Sains Malaysia (USM) and University of Salford, United Kingdom entitled
Industrialised Building System (IBS): Towards Sustainable Implementation on 11th January 2011 at Grand
Seasons Hotel, Kuala Lumpur
The workshop discussed and scrutinised the following IBS themes:
o Sustainable IBS (Social, Economic and Enviroment)
o Selection criteria for IBS manufacturing sites in Malaysia
o The concept of team integration in IBS project
The workshop highlighted the following issues:
o Factors that are highly important towards the adoption of sustainable IBS implementation
o Factors that need to be considered for opening an IBS manufacturing facilities
o Selection criteria for IBS manufacturing sites
o The concept of Integrated Project Team in IBS
o Factors that effecting the establishment of team integration in IBS project
Recommendations derived form the workshop are:
o IBS has the potential to promote sustainable development by implementing controlled production
environment, minimisation of construction waste, extensive usage of energy efficient building material,
provide a safer and more stable work environment, and possibly better investment for long term project
economy. Encouragement policies and incentives is needed to drive the agenda forward.
o The top five main criteria in selecting appropriate site for IBS plant are cost to set up factory, current and
future economic trend, existing infrastructure, distance of projects from factory, and the factory capacity.
A methamatical model should be developed to assist future investors in conducting feasibility study
o The optimum distance for transportaion of IBS components from factory to site is in the range of 50 to
100 km. The optimum size of factory is 10 to 20 ecre. The optimum concrete production is 60 m3/ day
for a medium sized factory.
o IBS manufacturers should seek opportunity for oversea ventures to emerging markets such as Indonesia
and Vietnam to get bigger market size for their business
o Main barriers of IBS implementation in the Malaysia is related to poor integration and communication
among stakeholders. The establishment of Integrated Project Team will solve this problem, thus
enhance IBS project delivery and creating value. Integrated procurement and partnering are reccomended
as the way forward.
This document will be proposed Pusat IBS, CIDB as IBS promoters to path the way forward in establishing new policies
on IBS, and guiding their promotion programs.

Construction Research Institute of Malaysia (CREAM)

CONTENT

Editorial
Executive Summary
Content
1.0
Introduction
2.0
Problem Statement
3.0
The Objective
4.0
Workshop Program
5.0
Lab 1: Sustainability in IBS
6.0
Lab 2: Selection Criteria for IBS Manufacturing Sites in Malaysia
7.0
Lab 3: The Concept of Team Integration in IBS Project
8.0
Recommendation
9.0
Photos
10.0
Bibliography and Further Readings

Construction Research Institute of Malaysia (CREAM)

PAGE
2
3
4
5
5
6
6
7
10
14
21
23
25

1.0 Introduction
Malaysian construction industry has been urged to use innovative construction technique and to shift from traditional
practice to Industrialised Building System (IBS) construction. The importance of IBS is highlighted under the Strategic
Thrust 5: Innovate through R&D to adopt a new construction method in the Construction Industry Master Plan 20062015 (CIMP 2006-2015). Despite a well-documented benefits and strong support from the government, the take-up for
IBS was not as high as first anticipated at this stage. Low labour cost in Malaysia could perhaps was the root cause of
the problem. Although the members of the industry are open to the idea, a major portion of the industry stakeholders
are indifferent, perhaps due to resistance towards change and insufficient fund and information to support feasibility of
change to implement IBS construction. In November 2008, the Treasury Malaysia issued a Treasury Circular Letter, now
referred to as SPP 7/2008, to all Malaysian government agencies directing them to increase the IBS contents of their
building development projects to a level not less than 70 points of the IBS score and IBS must be incorporated as part of
the contract document for tender. The decision was to create sufficient momentum for the demand for IBS components
and to create a spill-out effect throughout the nation. However, there is also slightly concern from the government sector
whether the current policy and implementation of IBS in public building project is sustainable and can really reform
our construction industry. There is also a need to investigate the issue of sustainability within IBS context in term of
environment, social, economy and policy (institutional).
To promote sustainable implementation of IBS construction in Malaysia, Technology and Innovation Development
Sector (SPTI) of CIDB, IBS Centre, Construction Research Institute of Malaysia (CREAM), University Sains Malaysia
(USM) and University of Salford, United Kingdom have jointly organised a workshop entitled Industrialised Building
System (IBS): Towards Sustainable Implementation on 11th January 2011 at Grand Seasons Hotel, Kuala Lumpur.
The workshop aims to measure industry perception towards sustainable issues, to reassess, and augment as necessary,
factors that important towards sustainable IBS implementation in Malaysian construction industry and formulate a
clear way forward towards the improvement of the IBS implementation. The workshop discussed and scrutinised the
following IBS themes:
o Sustainable IBS (Social, Economic and Enviroment)
o Selection criteria for IBS manufacturing sites in Malaysia
o The concept of team integration in IBS project
The workshop was facilitated by CREAM and representatives from Universiti Sains Malaysia (USM) and University of
Salford, United Kingdom and the programme involved strong participation from 45 member of the industry from various
background.
2.0 Problem Statement
Based on recent study, 30-40% of natural resources were exploited by building industry, 50% of energy
used for heating and cooling in buildings, almost 40% of world consumption of materials converts to built
environment and 30% of energy use due to housing. There is need for the industry to use IBS as a mean for
Construction Research Institute of Malaysia (CREAM)

promoting sustainable development.

There is also slightly concern from the government whether the current policy and implementation of IBS
in public building projects under SPP 7/2008 is practical and therefore sustainable and can really reform our
construction industry.
Based on the CIDBs report, the number of IBS manufacturers is gradually increasing as a result of the
government requirement under SPP 7/2008. Consequently, the private sector is predicted to use IBS in the
future either by manatory or voluntary. However, the problem is that there are very few IBS manufacturing
plants in Northern Peninsular Malaysia, Western Peninsular Malaysia, Sabah and Sarawak.
Investigation by some researchers identified that one of the main barriers of IBS implementation is related
to poor integration and communication among stakeholders involved during the design stage. At present,
common practice shows that manufacture of IBS components is involved only after the tender stage of the
value chain. This lack of integration among relevant players in the design stage has resulted in a need for
redesign and additional costs to be incurred if IBS is adopted.There is a desperate need of a new approach of
procurement using strategic partnering in the construction delivery system.
3.0 The Objective
To identify factors that are highly important towards the adoption of sustainable IBS implementation in
Malaysia
To identify selection criteria for IBS manufacturing sites in Malaysia
To identify the factors that effecting the establishment of team integration in IBS project
4.0 Workshop Progam
Time

0830 - 0900
0900 - 0915

Detail

Presentation 1

IBS Towards Sustainable Construction:

Examining the Role and Contribution of IBS to
Green Construction and Sustainable Initiatives
Ir. Dr. Zuhairi Abd. Hamid (Executive Director
CREAM)
Group Discussion

Registration

0915 - 0945

Lab 1

0945 -1030

Group Presentation 1

1030 - 1100

Presentation 2

1100 - 1130

Program

Lab 2

Construction Research Institute of Malaysia (CREAM)

Integrated Project Team for IBS Design Project in

MalaysiaSr. Mohd Nasrun Mohd Nawi
(University of Salford/Universiti Utara Malaysia)
Group Discussion

Output

Criteria Setting and

Ranking of Sustainable
Variable on IBS

1130 - 1230

Group Presentation 2

1230 - 1400

Lunch

1400 - 1415

Presentation 3

Integrated Project
Team in IBS: Criteria
Ranking -Validation,
Recommendation &
Improvement

Statistical Study on the Appropriateness of

IBS Manufacturing and the Determination of
Spatial Criteria for New Precast Concrete IBS
Manufacturing Sites-

1415 - 1515

Lab 3

Mohamed Azhari Nor Azman (Universiti Sains

Malaysia)
Group Discussion

1615 - 1645

Wrap up Session

Conclusion & Recommendations

1515 - 1615

1645 - 1700

Group Presentation 3

Coffee Break

Determination of
Spatial Criteria Site
Selection and Ranking
the Criteria - Validation,
Recommendation &
Improvement

5.0 Lab 1: Sustainability and IBS

The rising awareness of sustainability around the globe has put the construction industry under immense pressure
to improve project efficiency and deliverables. The implementation and adoption of sustainable agenda lead by the
government is significant to construction industry which affects the whole spectrum of the Malaysian economy. Sustainable
construction in construction industry aims at reducing the environmental impact of a building over its entire lifetime,
while optimizing its economic viability and the comfort and safety of its occupants. While standard building practices are
guided by short term economic considerations, sustainable construction is based on best practices which emphasize long
term affordability, quality and efficiency. At each stage of the life cycle of the building, it increases comfort and quality
of life, while decreasing negative environmental impacts and increasing the economic sustainability of the project.
Sustainable construction, which has inevitably been dubbed green construction, describes the responsibility of the
construction industry in attaining sustainability. Sustainable construction aims to produce structures that enhance the
quality of life and protect the environment efficiently and profitably. It is all about maintaining a balance between the
human need for buildings for shelter and business operations and infrastructure for higher quality of well-being at one
hand, and preserving natural resources and ecosystems, on which we and future generation depend at the other hand.
The sustainable construction agenda in construction industry includes sustainable planning for construction, sustainable
building design, application of green technologies, creating building that use low energy and utilize natural resources,
applying the concept of 3Rs (Reuse, Reduce and Recycle) and embarking on waste minimisation and recycling of
construction waste materials. There are several aspects of IBS that has the potential of contributing to different aspects
of sustainability and green construction. Some of the major aspects are explained below:
1. Sustainability from Controlled Production Environment: IBS offers a controlled manufacturing environment
Construction Research Institute of Malaysia (CREAM)

with the ability to reach difficult nooks and corners, which are often inaccessible in regular in-situ construction.
With the availability of production tools, and permanent jigs and fixtures, it is easier to control the workmanship
of construction, ensuring a tighter construction resulting in lot lesser energy losses due to leakages (thermal
leakage)
2. IBS and Waste: IBS traditionally has been known to minimize waste, with the ability to reuse material from one
module or product into another, the sustainability agenda is supported through its use. However, several aspects
of planning both in terms of materials management and production management have to be monitored in order
to achieve the waste minimization benefits promised by IBS.
3. IBS and Building Materials: Several pre-fabricated technologies such as Structural Insulated Panels (SIPS) etc
offer great potential in terms of fabrication of more energy efficient buildings. However, if appropriate process
control and planning are not implemented these potential benefits could be lost due to expensive on-site assembly
processes. Therefore, it is important that the advent of new technologies should be accompanied by proper
process design for on-site assembly.
4. IBS and Logistics: Some estimates recently have put the amount of environmental impact from material
transportation activities to be one-third of total environmental impact on the entire construction process. IBS
offers another benefit, and that is the ability to order in large quantities thus reducing the number of trips to be
taken. Despite this potential benefit, it is important that a detailed material transportation and logistics plan be
put in place.
5. IBS and Economic Sustainability: With Malaysian governments emphasis on reduction of reliance on foreign
labour, and the ability of IBS to deliver to this goal is well documented. However, for this to succeed there is the
need to develop a detailed training and dissemination strategy for promoting IBS and preparing the workforce
for that.

With these potential benefits of IBS in mind, it is important that a detailed strategy for the implementation of sustainability
through the use of IBS in Malaysia be formulated. A study to link and merge IBS and sustainability should be the way
forward. This workshop aim to factors that are highly important towards the adoption of sustainable construction and IBS
implementation in Malaysian construction industry. This will help CIDB in developing better policy and programme to
support both agenda. In this workshop each group need to identify factors that are highly important towards the adoption
of sustainable construction and sustainable IBS implementation

Construction Research Institute of Malaysia (CREAM)

Group
A

Factors that are highly important towards the adoption of sustainable construction and
sustainable IBS implementation
1. Profitability to organisation to sustain business
2. Organization adaptability & flexibility
3. Standardisation of IBS components
4. Improves confidence, enthusiasm and motivation to adopt IBS
5. Encouragement policies on IBS and sustainable
6. Imposition of strict regulations
7. Engaging local economy
8. Innovation
9. Incentives (tax and subsidies)
1. Public awareness
2. Public participation
3. Standardisation
4. Modular
5. Improved Confidence, Enthusiasm and Motivation
6. Encouragement policies
1. Modular
2. Innovation
3. Sustainable demand & volume
4. Standardisation of IBS components
5. Participation of Bumiputera
6. Encouragement policies
7. Incentives (tax breaks & subsidies)
8. Engaging local economy
9. Customers willingness to pay for green construction and energy saving
1. Improved occupant comfort
2. Sustainable principal & value
3. IBS to reduce dependency on foreign workers
4. IBS to meet shortage in housing
5. Innovation
6. Mass-customization
7. Encouragement policies
1. Waste minimisation
2. Waste auditing
3. Environmental managements system
4. Standardisation of IBS components
5. Innovation
6. Modular
7. Mass customisation
8. Improved confidence, enthusiasm and motivation to adopt IBS
1. Material security
2. Environment management system (EMS)
3. Modular
4. Mass customisation
5. Confidence, enthusiasm & motivation to adopt IBS
6. Incentives (tax breaks & subsidies)
7. Encouragement policies
8. Customers willingness to pay for green construction and energy saving

Construction Research Institute of Malaysia (CREAM)

1. The rising sustainability awareness around the globe has put the construction industry under immense pressure to
improve project efficiency and deliverables. IBS has the potential to promote sustainable development and green
construction by implementing controlled production environment, minimisation of construction waste, extensive
usage of energy efficient building material, a safer and more stable work environment, and possibly better
investment for long term project economy.

2. Critical factors that important in promoting sustainable development and green construction are material security,
preservation, waste minimisation, incentives (tax breaks & subsidies), innovation, encouragement policies,
customers willingness to pay for green construction and energy saving.
3. Important factors affecting sustainable IBS implementation in Malaysia are standardisation, innovation, modular,
mass-customisation and improved confidence, enthusiasm and motivation to adopt IBS. The enablers for IBS
implementation in Malaysia are incentives (tax breaks and subsidies), encouragement policies, and imposition of
strict regulations.
4. There is a need for IBS to ensure quality to the clients. Component should be tested and verified by the authorised
body. Contractors should be certified by CIDB before they are allowed to tender project in IBS.
5. The incentives for IBS are not sufficient. IBS adoption requires more pull and push factors from the government. Due
to the small profit margin, the change from conventional to IBS was not feasible, unless, more attractive incentive
systems and benefits which can lure the conventionalist to IBS are in place. As we live in open and liberal market
place, the decision to use IBS is commonly based on dollar and cent judgment. Any promotion efforts should be
focused on the demand side of IBS as well as develop capacity in the supply side.

6.0 Lab 2: Selection criteria for IBS manufacturing sites in Malaysia

Based on the CIDB Report, the number of IBS manufacturers is gradually increasing as a result of the government
requirement 70% of IBS components must be use in government projects that valued RM10 million above. Consequently,
the future of private projects will follow suit in the use of IBS as mandated in government projects. However, the problem
is that there are few IBS manufacturing plants in Northern Peninsular Malaysia, Western Peninsular Malaysia, Sabah and
Sarawak.
Therefore, a vendor development programme modeled along the lines of the development of the national car industry
should be established to target delivery of building components for the construction. The vendor program is to be
accredited by existing government agencies which can provide a vetting process not only to guarantee consistent quality
but also the achievement of structural capacity, fire rating and other requirements. The selected vendor are to be provided
training, seed capital, components design, and selected private sector consultant to start up production factories. The
government can help by conducting market research to ascertain market opportunities to the vendors. Site selection for
future IBS manufacturing vendor is also important in determining the success of the program. Before potential investors
being invited to participate in this program , there is a need for study to determine the cretira of site selection of IBS
manufacturing vendor in Malaysia. The initial research has been conducted to identify the 15 criteria for selection of new
10

Construction Research Institute of Malaysia (CREAM)

IBS manufacturing site. Apart from the selection of criteria for new IBS manufacturing site, the multi-criteria decision
making (MCDM) is a vital tool to determine the criteria and it is an important part of management science (location
decision).
Each group need to rank and priorites factors that are highly important in the selection criteria for IBS manufacturing
sites in Malaysia. The result are as follows:
Rank

Criteria

Costs

Transportation and
Optimum Distance

Land Sites

Resource and Utilization

Infrastructure

Market Access

Labor

12

Inter-industry Linkage

13

Environment Risk

11

Competition

10

Work Suitability

14

Population

Attribute
C1: Minimum transportation cost
C2: Cheap land
C3: Minimum initial capital
C4: Cheap raw material (cement, sand, steel)
C5: Lowest operational costs
C6: Cheap manpower
C7: Low tax
C8: Initial capital
T1: Maximum coverage to access to construction sites
T2: Minimum distance travel to construction sites
T3: Good access federal roads to the construction sites
T4: Good access highway roads to the construction sites
T5: Good access roads to the construction sites
T6: Near to the potential development area
T7: Optimum coverage distance travel
L1: Relatively the potential prefab manufacturing have many
alternative transportation access to the construction sites
L2: Near to development areas
R1: Close to raw materials
R2: Ready supply of abundant quantities
I1: Benefits from the industrial estate
I2: Benefits from the free-trade zones
I3: Availability of power and water
I4: Proximity to airport
I5: Proximity to railways
I6: Proximity to sea port
M1: Central to major markets of new development area
M2: Area of high purchasing demand
L1: Availability of labor
L2: Quality manpower
L3: Required skilled worker
I1: Forward industrial linkage with other firms in Malaysia
E1: Nature habitat is protected
E2: Convenience place of handling construction waste
C1: Number of competitor
C2: Intensity of competition
W1: Attractive to environment
W2: Ideal location
W3: Social facilities for workers
W4: Good public transport for workers

P1: Suitability to the nearest residential

P2: Nearest to the development area
P3: Near an urban centre

Rank
3
8
6
7
5
4
1
2
3
6
4
1
7
2
5
2
1
2
1
5
4
6
1
3
2
1
2
3
1
2
1
1
2
1
2

1
4
2
3
3

2
1

Construction Research Institute of Malaysia (CREAM)

11

Capacity

15

Political

Safety

C1: Site capacity

C2: Volume product capacity
P1: Proximity to the Ministry offices for quick execution
S1: Near with police station
S2: Design safety property is important

1
2
1
2
1

The mean rating analysis was done by sorting and ranking the views of 42 correspondents as in the table. The
top three criteria on the list are costs, market access and infrastructure.
Costs are the major concern in the global industry as the price will change based on the number of projects
from government and private sector. The setting up of an IBS manufacturing factory requires a strong financial
planning to ensure that the demand is able to sustain for the long term period based on the current and future
demand.
Market access ranks as second in importance. The market access criteria is focussed on supply and demand
issues of product to consumers or provision of services for long term expansion of construction projects.
The infrastructure criterion is rank in the third order of importance. Infrastructures criteria for instance
roads,railways, water supply,bridges and telecommunications, is also the potential project development. The
higher service facilities of infrastructure will enhance the productionofgoodsandservices as well as increase
the accessibility.
While the three other criteria being environment risk, population, and political and regulation falls in the
bottom rank of the table. The environment risk is rank less of importance due to non-profit investment to the
industry.
The population criterion refers to demographic data as well as collection of gross domestic product (GDP)
per capita in a potential region for future development, is also rank as less of importance. This is due to the
stable growth population in Malaysia.
Political and regulation criteria is ranked last as it is seem not vital and as the government involvement is in
the early stage of project and at the final stage of hand-over of the project.
The Outcome Two Types of IBS Precast Manufacturing: Close (Permanent) Manufacturing and Open (Mobile) Manufacturing
No

Close Manufacturing

Open Manufacturing

Fixed factories
New Production
High volume production of integrated
modules

Mobile Factories
Manufacturing
Assembly of pre-fabricated parts

Picture

Production
Technology

12

Construction Research Institute of Malaysia (CREAM)

History

Maintenance

Mould
Crane
Land Capacity
Production

Proton Haus (German)

Eastern Pretech (Finland)
Osable (Double storey house)
Ezidek
MTD (German + Italy)
High maintenance:
High consumption electricity (e.g. RM100k/
month)
Manpower (40 m3 require 100 people)
High cost
High cost
At factory: 25-30 tones
At site: 50-260 tones
Minimum 10 acres
Max production: Hollow Core Slab (HCS)
1000 m3/ day (50 acres)
300-400 m3/ day (25 acres)
Protected from rain and theft

Weather
Manpower
Product
Return
Investment
Capital
Technology
Concrete
Facility storage

Max 500 workers, Average 200 workers

Specific task, High payment
Hollow Core Slab, Half slab, Stair case
Beam, Column and Wall panel
Minimum per anum RM35 Million
70% profit & 30% cost (e.g. MTD case
study)
High
Semi Automatic & mechanization
Eg. Slab factories cost RM15 M
Required batching plant concrete
Required high open space to manage the
product and process

Taisei (Learn from Eastern Pretech)

KUB (IBUZAWA)
SP Setia, Global Globe
HC Precast, OKA
SPC Industries, CSR and MTD
Low maintenance
- Low consumption electricity
- Less manpower (4m3 require 4people )
- Low cost
Flexible and low cost
At factory: 25-30 tones
At site: 50-260 tones
Can start with 5 acres
But limited for half slab and cannot produce
HCS because require high consumption space
100 m3/ day (10 acres)
40 m3/ day (5 acres)
Rain max 1-2 hours usually in evening.
Develop portable roofing and canvas to
protect the products
25 workers, Multi tasking and Low payment
Half slab, Stair case, Beam, Column and Wall
panel
Minimum per anum RM10 Million
RM 1 Million cost & RM9 Million profit
Low
Mechanization
Out source or Setup Batching Plant RM160k
Easy to manage

Characteristic IBS Precast Manufacturing

Rank

Criteria

Costs

Characteristic
Near to the new potential development area with RM 100
million of the value projects.
Example of the future projects is institution education,
infrastructure facilities, new housing area, new industry
area and new business centre area.
20% cost spent for land
Initial capital RM5 30 Million
Cost local labour RM50 120/ day

2
3

Market Access
Infrastructure

Cost foreign labour RM50 70/ day

Nil
Nil

Construction Research Institute of Malaysia (CREAM)

13

Transportation and
Optimum Distance

The optimum distance for transportation is 50 100 km

or 151 200 km
The optimum size of land is 10 20 acres

5
6
7
8
9
10
11
12
13
14
15

Capacity
Land Sites
Labour
Resource and
Utilization
Safety
Work Suitability
Competition
Inter-industry Linkage
Environment Risk
Population
Political

The maximum of production concrete 60 m3/ day

The minimum of production concrete 40 m3/ day
Nil
20 workers per 5 acres land
Nil
Nil
Nil
Nil
Nil
Near with to the recycling facilities
Nil
Nil

7.0 Lab 3: The concept of team integration in IBS project

Investigation by some researchers identified that one of the main barriers of IBS implementation in the Malaysian
construction industry is related to poor integration and communication among stakeholders involved during the design
stage. In the construction process of a traditional contracting system, most design drawings and specifications that
produced by the design engineers are tend to be performance oriented, specifying an end result and materials, while
leaves the means and methods for constructing the work to the contractors. Contractors is often responsible for the project
problems while in the reality, most of the problems encountered in the field such as reworks, delay and low in quality or
productivity are often compounded by inherent design flaws that generated in the design phase. An alternative solution
to overcome the problem is by implementing the Integrated Design Team to integrate the design from the beginning and
incorporate the issue of constructability, manufacturability and even facilities management from the beginning of design
stage. At present, common practice shows that manufacture of IBS components is involved only after the tender stage
of the value chain. This lack of integration among relevant players in the design stage has resulted in a need for redesign
and additional costs to be incurred if IBS is adopted.There is a desperate need of a new approach of procurement using
strategic partnering in the construction delivery system.
In the construction industry, the term of integration has been used to describe a collaborative work environment
culture that created by all participants involved in a project either by individuals or organizations (Strategic Forum for
Construction, 2003; Vyse, 2001). This culture is required in order to bring the various organizations that make up the
project delivery team to work together more effectively as a single unit. An integrated delivery team for example, is a
highly effective and efficient collaborative team that responsible for the design and construction of a project (Baiden et
al., 2006). The team brings together various skills and knowledge, and removes the traditional barriers between those
with responsibility for design and construction in a way which improves the effective and efficient delivery of the project
(Achieving Excellence in Construction, 2003; Akintoye, 1994; Fleming and Koppelman, 1996).

14

Construction Research Institute of Malaysia (CREAM)

Six main dimension towards Integrated Team

Has a single focus and objectives for the project (Anumba et al. 2002; Baiden et al. 2003; Comick and Mather
1999; Moore and Dainty 1999; Strategic Forum for Construction 2003; Vyse 2001)
Operates without boundaries among the various organization members and work towards mutually beneficial
outcomes (Baiden et al. 2003; Bromley et al. 2003; Love and Gunasekaran 1998; Moore and Dainty 1999;
Strategic Forum for Construction 2003; Vyse 2001)
Shares information freely among its members such that access is not restricted to specific professions and
organisational units within the team (Anumba et al. 2002; Bromley et al. 2003; Comick and Mather 1999;
Evbuomwan and Anumba 1998; Moore and Dainty 1999; Vyse 2001);
Has a new identity and is co-located, usually in a given common space (Anumba et al. 2002; Bromley et al.
2003; Strategic Forum for Construction 2003)
Operates in an atmosphere where relationships are equitable, offers its members equal opportunities to
contribute to the delivery process and all members are respected (Baiden et al. 2003; Bromley et al. 2003;
Dainty et al. 2001; Love and Gunasekaran 1998; Moore and Dainty 1999; Vyse 2001)
Has a no blame culture (Bromley et al. 2003; Dainty et al. 2001; Evbuomwan and Anumba 1998; Strategic
Forum for Construction 2003; Vyse 2001)
Tools for implementing Integrated Team in construction
Anumba et al., (2002); and Love & Gunasekaran (1998) proposed that partnering arrangements have been
used to integrate the project delivery team in the traditional construction industry practice.
Integrated forms of procurement, such as design and build, that bring together the design and construction
phases of projects, have also been introduced (Bourn, 2001; Stutz, 2000; Mohammed, 1999; Bowron,
2002).
IPD Guide (2007) introduced a new integrated project delivery approach namely as Integrated Project
Delivery (IPD) purposely to integrate people, systems, business structures and practices into a construction
process. Contrast to the traditional construction practice, the team members in IPD are demanded to work
together in concurrently either in making a decision process or when trouble arises throughout of design,
fabrication, and construction phases
Concurrent engineering (Kamara et al., 2000; Evbuomwan and Anumba, 1998; Broughton, 1990)
Lean thinking (Huovila, et al., 1997; Matthews and Howell, 2005);
Boundary object method (Fong et al., 2007; Forgues and Koskela, 2009)
Integrated supply chain management (Khalfan and McDermott, 2009; Love et al., 2003; Vrijhoef and Lauri
Koskela, 1999).

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Each group need to rank and priorites factors that are highly important effecting the implementation of integrated team
in IBS. The result are as follows:
Rank
1

Policy

Procurement &
Contract

Team
Organisation

16

FACTOR

Personal Working
Attitude

Team Base
Accountability

Level of importance to the project

(as discussed and agreed by participants)
High (Project) High (Organisation);
The participants agreed that this factor is the highest important for the
team to work in integrated and collaboratively. Typically, the decision
making process depends on policy such as vision or mission from top
level of management. Therefore, a strategy or approach for the delivery
of a project is based on direction from the top level of management. For
example, the government policy towards IBS implementation is clearly
shows how powerful of top level direction can influence the industry to
shift from conventional to IBS in comprehensively.
High (Project) High (Organisation);
In average, majority of the participants agreed that this factor is a
vital element towards integrated design team delivery. Even there
have some efforts to overcome the over the wall syndrome either by
the introduction of integrated forms of procurement (such as Design
and Build, Constructing Management and other variants) seems have
not been able to fully merge the teams into one multi-professional
and functional team however the significant of this factor is still
relevant. Detail agreement or documentation of contracts is required
to understanding the distinctive roles and responsibilities among the
main stakeholders involved in a project. At the same time this factor can
protect the conflicts of ever lapping roles and responsibilities which can
cause of collaborative problems.
High (Project) High (Organisation);
Majority of the participants agreed that to be an integrative organization
structure, the project team must be lead by a senior manager or
designer for the high performance achievement. The characteristics and
capabilities of the team leader in terms of team leader skills and vision
(to create and articulate a holistic vision of the product concept) are
among of critical contributor to team effectiveness. Further, utilizing of
collective skills and expertise through a concept of early involvement
of key players are recognized that can contribute to the successful of
integrated design team delivery.
High (Project) High (Organisation);
Majority of the participants agreed that working in high motivation is
very important in order to enhance team integration because, when the
team members are not motivated, the work progress will be slowed and
the project will be delayed or uncompleted within period of time. When
all members of the team are motivated, surely they have self-pushed to
get jobs done quickly and efficiently, and proud of the work that they do.
This approach indirectly will create a team more productive, contentment,
enjoyable, and interesting towards overall project success.
High (Project) High (Organisation);
Most of the participants agreed that all the members must have a feel of
sense of ownership to become an effective integrated team. On the other
words it means when employees feel included as part of a team and
part of a work family (integrated team), they will be more productive and
more efficient. Typically, it goes beyond their responsibility or duty such
as commitment, in that members of the team begin to tie their identity to
a projects outcome, thus putting forth extra effort to ensure its success.

Construction Research Institute of Malaysia (CREAM)

Management of
Leadership

Transparent
Communication

Appropriate
Technology

High (Project) High (Organisation);

Majority of the participants agreed that this factor is vital towards
integrated design team. The justifications are more related to the nature
and amount of support from the management for the projects team. The
management supports such as providing sufficient resources (financial,
manpower, time, etc.), commitment and encouragement to a team is
crucial towards fully integrated practice. In addition, commitments from
top management to provide reward, education and training scheme for
the team members are also significant towards this approach.
High (Project) High (Organisation);
Majority of the participants consented that this factor is extremely
important in creating an atmosphere for successful project and team
effectiveness. Transparent communication refers to gathering and sharing
information and knowledge and to assure follow-up activities among
teams member. The genuine process communication is not about passing
paper (information) from one point to another only but it is more about
bringing the right information to the right person and time. Normally, the
best or effective medium to improve communication is thorough regular
meeting (such as consultant/site meeting etc.). The best frequency of
communication is short but weekly meetings to ensure that the entire
team is up to speed. This meeting must be attended by all members those
involve with the project without any excuse. All the outcomes from the
meeting must be documented. In order to ensure that all parties involved
in the project are informed, therefore the information will not only have
to be available but also easily accessible to all members
Low (Project) High (Organisation);
Most of the participants agreed that this factor is highly important
for the successful of integrated design team. However 40% of the
participants still argue that this factor is more towards as enabler instead
of critical success factors for fully integrated design team. This factor
has been looked as a critical factor for the successful of team in future
of construction project. For the example, due to physical, temporal and
departmental constraints, face-to-face convention and physical selfmanaged teaming are not always feasible, in this way, telecommunication
technology will play as a medium or appropriate mechanism to coordinate activity, enhance interaction and knowledge sharing within a
project team.

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Operational

Low (Project) High (Organisation);

Most of the participants agreed that this factor is less important for
project but it highly important for an organization. The arguments are
more focus to the culture and current practice in Malaysian construction
industry which is still not ready towards fully integrated team. For
example, majority of the participant disagree with element of nonoperation boundary such as unrestricted access of private spaces and
free information access and distribution can contribute to the successful
of integrated design team. This is because the level of trust and loyalty
among practitioners in the current construction project are still at
low level and doubtful. Therefore, it is difficult for the unfamiliar
practitioners to work together and share their information until the end
of a project. Further, participant argued that there has no practicality to
sited multidisciplinary and multifunctional teams within a single location
until the completed of project. The reason is most of the staffs have been
paid based on multitasking (more than one project) but not purposely for
one project in a time. However, majority of the participants agreed that
the element of concurrent work process is significant for the successful
of integrated team. The arguments are more emphasize on overlapping
problem-solving between upstream (product design) and downstream
(manufacturing process) functions of a project.

Personel Working Attitude - Personal working attitude in this means a hypothetical construct that represents
an individuals degree of like or dislike for work. This factor has been identified as one of the critical factors
to achieve fully integrated team in construction project (Liddell, 2010; Koutsikouri, 2008; Seligman, 2002;
Johansson, 2002; Amabile, 1997). Previous researchers relate this factor to the psycho-social dynamics
such as motivation, positive can do it attitude, highly commitment, flexibility and openness to learning (or
willingness to change) towards continuous working improvement (Koutsikouri, 2008; Holland et al., 2000;
Jassawalla and Sashittal, 1998). Further, there has a strong relationship between integrated team effectiveness
and team members perceptions of the task (Younker, 2010; Denison et al., 1996). For example, doing what
you love or having/creating sense of challenge in routine work can creates a powerful motivator of group
performance. Fundamentally, a team groups need intrinsically meaningful tasks in order to perform well
(Brickner et al., 1986).
Team Based Accountability - Numerous of authors (IPD, 2007; Abdelhamid, 2007; Bowron, 2002; Holland
et al., 2000; Jassawalla and Sashittal, 1998; Love and Gunasekaran, 1998; Rowlinson, 1999; Anumba &
Evbuomwan, 1997; Ayers et al., 1997) highlighted that team accountability is significantly influence the
effectiveness of team integration. In the scope of this study, team accountability is defined as all team players
are responsible for the progress and performance of the project (Cooper, 1995). To become an effective
integrated team, all the members must have a feel of sense of ownership, cleared understanding on their
roles and be responsible for the project from beginning to end of the project (IPD, 2007; Abdelhamid, 2007;
Holland, 2000). Previous authors (Donough, 2000; Mohammad, 1999; Hershock et al., 1994) described sense
of ownership as a feeling of being able to make a difference and wanting to do so. This sense basically goes
beyond teams member responsibility or routine duty. It is more towards as commitment, in that member of
the team begin to tie their identity to a projects outcome, thus putting forth extra effort to ensure its success
(Donough, 2000; Jassawalla and Sashittal, 1998; Evbuomwan and Anumba, 1998). As emphasized by Ayers
et al., (1997), team-based accountability is a necessary counter balance to empowerment, and helps to prevent
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excessively cost relational norms which have a negative impact on new product success.
Team Ogranisation - Organization structure has consistently been related to the effectiveness of an integrated
team (Garza et al., 2009; BuildOffsite, 2008; Koutsikouri, 2008; Baiden et al., 2006; Pan et al., 2005;
Love et al., 2004; Holland et al., 2000; Evbuomwan and Anumba, 1998; Love and Gunasekaran, 1998).
Fundamentally, the nature and composition of the construction team makes the issue of leadership as a very
important (Baiden, 2003). This is because of construction industry practice consist from a number of different
department and functional units with unique identities that come together since at the beginning of the project
(construction period) to assume a new identity. In this environment creates integration became obvious as
all the functional expertise that are required for the project would have to be brought together to act within a
single entity with focus on issue rather than individuals (Garza et al., 2009; Baiden, 2006; Kahn, 1996).
Management of Leadership - Leadership has consistently been related to the effectiveness of an organizational
group or work team (Baiden, 2006). This is because leadership ensures that the vision and strategy that are
required to align the culture and values of the organization are communicated effectively to all members.
This factor focuses more on people rather than processes to create direct affect on project performance. For
example, the characteristics and capabilities of the team leaders skill and vision are very important in order
to create changes that are required for progress (Jassawalla and Sashittal, 1998; Denison et al., 1996). At the
same time, top management and all senior managers from the various functions must be supportive, acting
as executive sponsors and maintaining commitment of projects as well (Khang and Moe, 2008; Turner and
Muller, 2007; Belassi and Tuker, 1996). Giving empowerment such as autonomy, authority or power such
as decision-making authority or responsibility to the team is part of the top managements support towards
fully integrated team (Holland et al., 2000). Furthermore, the leadership must, therefore, understand the
dynamics of the team such as the development stages, cohesiveness and conflict (Baiden, 2006). Provide well
education or training and incentive such as team based reward and recognition are among the components
in the leadership in order to increase the level of the employees motivation to lead to an increase in their
performance (Appelbaum, 2007; Parker, 2003; Holland et al., 2000).
Transparent Communication Process - Transparent communication is extremely important in creating an
atmosphere for successful project and team effectiveness (Koutsikouri, 2008; IPD, 2007; Anumba et al., 2002;
and Bowron, 2002; Hoegl and Gemuenden 2001; Holland et al., 2000; Pinto and Slevin, 1987). Transparency
refers to the commitment of open, frequent and genuine communication at all levels in the integrated
design team organization. This communication process provides tangible opportunities and a channel for all
members of the team to directly involve, and to directly input into, the project goals, changes in policies and
procedures, status reports, etc. (Smith, 2006). This process significantly relates with a good informal working
relationship environment that indirectly will enhance the level of trust, respect and understanding among
project team members (Baiden et al., 2006; Strategic forum for construction, 2003; Holland et al., 2000;
Edmondson, 1999). This transparency communication will create a good collaborative working environment
such as resolution of disagreement without confrontation among teams members in a project (Hoegl and
Gemuenden, 2001).

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 Policy - Construction industry is normally bounded by governmental policies and regulations (Nifa and
Ahmed, 2010). Government policy have been noted as one of the key influences in promoting a new technique
or products in the construction industry, simply because the government is one of the biggest client in any
construction industry (Nifa and Ahmed, 2010). This policy normally will affect the delivery of a construction
project either in term of process or team structure. In UK construction industry for example, team working
concept (such as partnering) gain its popularity with support from governmental policies and recommendation.
The important of policies in achieving successful integrated team can be reflected in the findings of previous
studies (such as UKCG, 2009; Baiden, 2006; Egan, 2002; Holland et al., 2000). In can be summarized that
construction industry has been challenged to create a fully integrated service capable of delivering predictable
results to clients through processes and team integration.
Procurement and Contract - Teams in construction have traditionally been formed along professional and
functional lines and have unfortunately remained separate thus making the team industry a teams industry
(Baiden, 2006). The impact of this practice is indirectly influence the delivery of a project. For example,

currently, most of the processes in the Malaysian IBS project have been done separately or in sequence instead
of parallel. As highlighted earlier, this practice has much potential point for conflicts when each participant
tries to pass on the risk to others within the work. Many reports (such as Egan, 2002; Egan, 1998; Latham,
1994) advocated for the replacement of traditional practice within the construction with cooperation. This
has resulted in calls for the integration of the entire supply chain to the traditional project delivery practice
(Bourn, 2001). This process includes procurement occurs across the development process from briefing to
construction; relationships between parties involved in the process; and apportion of risk between the parties
involved in the process (Bowron, 2002).

Operational - Previous authors (Stapley, 2006; Baiden et al., 2006; Love et al., 2004; Strategic forum for
construction, 2003; Bromley et al., 2003; Anumba et al., 2002; Austin et al., 2002; Holland, 2000; Pinto et
al., 1993) highlighted that this factor is required to enhance fully integrated team in a project. Operational
in this study means pertaining to a process or series of actions towards collaborative work environment for
achieving a successful integrated team. This factor includes all the integrated components included people
and process such as interaction space, team co-located, non operational boundary, intensify planning, working
in concurrently, and collaborative, co-operative and climate supportive of teamwork. These components are
very important because once the organization became a fully integrated team thus indirectly will improve team
culture and attitude among professional disciplines (Austin et al., 2002; Moore and Dainty, 1999). For example,
this approach can create the environment where the individual opinions and preferences are acceptable and no
longer considered as threats. Dennellon (1993) point out that the one which most successfully implemented
integrated team working has a conscious aim to develop a more collaborative culture and creative utilization
of every participants potential for delivering of a project.
Technology - Several authors cite the vital importance of appropriate technology in shaping an organization
structure towards a successfully integrated team (Koutsikouri, 2008; IDP, 2007; Anumba et al., 2002; Durst
and Kabel, 2001). For the purpose of this study, technology will play as a medium or appropriate mechanism
to co-ordinate activity, enhance interaction and knowledge sharing within a project team (Koutsikouri, 2008;
Mohammed et al., 2004; Stough et al., 2000; Holland et al., 2000). Technology also needs to support team
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Construction Research Institute of Malaysia (CREAM)

communication in order to coordinate the detailed design and construction methods, cost, and schedule in
a project (Mohammed et al., 2004). For example, due to physical, temporal and departmental constraints in
which face-to-face convention and physical self-managed teaming are not always feasible there technology
can play as a channel system between team members help them to integrate their activities and keep them
supplied with up-to-date design information (Holland et al., 2000). Currently, there are a lot of technology
applications or tools has been used in the construction market such as groupware system (i.e. Building
Information Modeling - BIM), Computer Aided Design (CAD), Computer Aided Manufacturing (CAM),
material database, and decision support software that will significantly aid communication and coordination
between parties towards successfully integrated project team (Kamar et al., 2010; Anumba & Evbuomwan,
1997; and CIDB, 2003).

8.0 Reccomendation
1. IBS has the potential to promote sustainable development and green construction by implementing controlled
production environment, minimisation of construction waste, extensive usage of energy efficient building
material, a safer and more stable work environment, and possibly better investment for long term project
economy. Better policies and incentives is needed to drive the agenda forward.
2. In order to attain environmental sustainability, the policy should consider three major characteristics as follows:
a. Direct regulations encompass the following obligations for building construction. To carry out action,
prevention, and decontamination plans, especially focused at waste management and to stick to norms
and regulations for energy saving in buildings and reduction of emissions.
b. Indirect regulations charges for waste dumping and technical assistance for the improvement of the
environmental practices.
c. Self-regulation the facilitation of dialogue between the public and private sector to voluntarily change
the behaviour in the construction industry towards sustainable construction.
3. To introduce indicators as one of the sustainability improvements. Various indicators related to sustainability
have emerged. Most of the indicators are used for evaluation or assessment purpose. In Malaysia, indicators can
be introduced to evaluate how well the industry in meeting the needs and expectations of the present and future
users and also suppliers
4. The introduction and adoption of while whole life cycle costing (WLCC) and green procurement in construction
industry is important to promote sustainable construction. Whole-life cost, or Life-cycle cost (LCC), refers to the total
cost of ownership over the life of an asset. It also commonly referred to as cradle to grave or womb to tomb costs. The
primary benefit of whole-life costing is that costs which occur after an asset has been constructed or acquired, such as
maintenance, operation, disposal, become an important consideration in decision-making. By introducing the WLCC,
the industry has resources to plan for sustainable and use green materials when the investment is justified.

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5. Integrated and effective cooperation and coordination among government and other sectors shall be enhanced
in order to achieve efficient environmental management and protection. Environment-related legislation and
standards shall be reviewed regularly and revised where necessary to ensure the continued effectiveness and
coordination of laws. Particular attention will be paid to effective enforcement
6. Research and innovation is the best way to improve and expand knowledge and technology. The government
should increase grant allocation on the research area related to sustainable and green construction. The research
agenda need to include a benchmarking and technology transfer of best practices exercise from developed
countries in implementing sustainable and green construction agenda.
7. To encourage more IBS plant other than in Klang Valley, a guideline should be established to help manufacturers
in setting up their plant. The top five main criteria in selecting appropriate site for IBS plant are cost to set up
factory, current and future economy markets, existing infrastructure, distance of projects from factory, and the
factory capacity. A methamatical model should be developed.

8. The selection of manufacturing approach either using open-liner concept or in a close compound is hugely
depand on the volume and type of components to be produced. For start up, open-linear concept is recommended
due to low maintenance and low setting up cost. However, quality control is paramount.
9. IBS manufacturer should optimise the capacity of the production and make fully use of the resource. The optimum
distance for transportaion of IBS components from factory to site is in the range of 50 to 100 km. The optimum
sise of factory is 10 to 20 ecre. The maximum production concrete is 60 m3/ day and minimum production of
concrete is 40 m3/ day. Reduce, reuse and recyle in production is the way forward.

10. IBS not only can benefit lacal construction but the expertise and know-how can be exported to oversea market.
The manufacturers should seek opportunity for an oversea ventures to emerging market such as Indonesia,
Viatnam, Middle East, China and Thailand to get bigger market value. With our knowledge and expertise on IBS
and precast production started way back from 1980s, we can offer better solution at competitive prices in the
global market.
11. The integration of IBS components or modules into the building requires various parties and supply chain to
cooperate closely. It has been suggested that by implementing integrated approach and partnering in design and
construction, the fragmentation gaps between parties involved in IBS could be minimised. The critical success
factors in developing integrated team in IBS are company and clients policies, management support, clear team
structure, working environment, transparent communication, and utilisation of Information Technology.
12. Integrated procurement is also suggested in IBS. Integrated procurement approach gives clients a single point of
contact for both design and construction besides creates an opportunity to implement constructability principles
early during design stage of project.

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9.0 Photos

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24

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