TYPICAL CORRUPTION IN THE CONSTRUCTION INDUSTRY

 

THE 21ST CENTURY PROJECT MANAGEMENT - Tips by Nik Zafri (Malaysia vs International)

 

Note : This article is also based mostly on my 30 years experience in the capacities of a Client, Consultant and Contractor. I am proud to be part of the solution for some of the projects mentioned herein. Almost all examples/case studies are based on real construction projects in Malaysia and International.

Becoming the best construction project management requires a mix of technical knowledge, leadership skills, and on-the-ground experience. Based on professional experiences from seasoned experts in the field, here are the best ways :

1. FUNDAMENTALS

1.1 Strong foundation in construction methods, materials, and project management principles,

1.2 Construction Method – e.g. Post-Tensioned Concrete Slabs

Source : EPP Concrete

• Instead of traditional reinforced concrete slabs, post-tensioning involves steel tendons that are tensioned after the concrete has set.

• This method reduces material usage, minimizes cracking, and allows for longer spans in buildings, reducing the need for columns.

• Commonly used in high-rise buildings and parking structures for structural efficiency and cost savings.

Tips : Work together with C & S or M & E Engineer - those who are in charge of developing construction method statement.

1.3 Construction Material 

e.g. Autoclaved Aerated Concrete (AAC) Blocks

Source : Cement Plant Supplier dot com

• AAC blocks are lightweight, energy-efficient, and have excellent fire resistance.

• Compared to traditional red clay bricks, they offer better insulation, faster installation, and reduced dead load on structures.

Tips : AAC are mostly used in sustainable building projects to improve thermal performance and reduce environmental impact.

1.4 Project Management Principle 

e.g. Earned Value Management (EVM)

EVM is a project tracking method that combines cost, schedule, and performance to measure project progress. It helps project managers make data-driven decisions to bring the project back on track.

Tips : If a construction project has a budget of $1 million and after 50% of the timeline, only 40% of the work is completed, EVM will highlight that the project is behind schedule and over budget.

1.5 Contracts, procurement, and local regulations to navigate compliance issues

1.5.1 Contract (Malaysia)

e.g. Malaysia: PAM 2006/2018 ( [PAM] Pertubuhan Akitek Malaysia - Malaysian Institute of Architects) Standard Form of Contract

• Used for private sector building projects in Malaysia,
• Covers contractor’s obligations, progress payments, variation orders, and dispute resolution.

Tips : If a contractor fails to complete a project on time, Liquidated Ascertained Damages (LAD) clauses in PAM contracts allow the employer to claim compensation for delays.

1.5.2 International

e.g. FIDIC - International Federation of Consulting Engineers Red Book (Conditions of Contract for Construction)

• Commonly used for large-scale infrastructure projects worldwide,
• Includes design responsibility, payment terms, variations, and dispute resolution.

Tips: Typically, in an international project, if the employer delays providing site access, the contractor can claim Extension of Time (EOT) and additional costs under FIDIC clauses.

1.6 Procurement (Malaysia)

e.g. CIDB Malaysia (Construction Industry Development Board) Pre-Qualification and Open Tendering

In Malaysia, government projects follow open tendering through the ePerolehan system. (Treasury)

Tips : If a contractor wants to bid for a government hospital project, they must be registered with CIDB (G7 for high-value contracts) and meet technical, financial, and performance criteria.

1.7 International 

e.g. The World Bank Procurement Guidelines

Used for projects funded by international agencies.

Tips: Say for example - Malaysia receives World Bank funding for a flood mitigation project, procurement must follow transparent bidding rules to prevent corruption and ensure fair competition. (Refer to ISO 37001 ABAC)

1.8.1 Local (Malaysian) 

e.g. Uniform Building By-Laws (UBBL) 1984

Governs fire safety, structural integrity, and building design.

Tips: UBBL requires that high-rise buildings have fire escapes and smoke extraction systems. If a developer does not comply, they cannot obtain a Certificate of Completion and Compliance (CCC).

1.8.2 International

e.g. OSHA (Occupational Safety and Health Administration – USA

Ensures workplace safety in construction.

Tips : OSHA requires fall protection measures for workers on scaffolding above 6 feet. Failure to comply can result in heavy penalties and project shutdowns.

Source : Simplified Safety Dot Com

2. KNOW THE TRENDS

2.1 #BIM (Malaysia) Building Information Modelling

Source : Malay Mail

e.g. MRT Line 2 (Malaysia – Klang Valley Mass Rapid Transit)

• BIM was used for clash detection in M & E works, ensuring no conflicts between underground utilities and building structures, 
• 
  
• Reduced rework and delays by identifying design issues before construction began,
• 
  
• Enabled better coordination between consultants, contractors, and suppliers in real-time using a 3D digital model.

2.2 #BIM (International) Building Information Modelling

Source : CNN Media

e.g. Beijing #Daxing International Airport ( #China )

• BIM was used to coordinate the design and construction of the massive airport, which covers 700,000 square meters.
• 
  
• Enabled real-time collaboration between architects, engineers, and contractors to detect clashes in complex structures.
• 
  
• Reduced construction time by 6 months and ensured high precision in steel and concrete works.

2.3 Project Management Software (Malaysia)

e.g. #Primavera P6 ( #Oracle )

e.g. Project : High-Rise Construction in Kuala Lumpur

Source : ecentral.my

• Used in projects like TRX ( Tun Razak Exchange ) skyscrapers to track schedule, budget, and resource allocation.

• Helped project managers monitor critical paths and prevent project delays.

Tips : If concrete pouring is delayed due to rain, Primavera P6 recalculates the schedule to avoid affecting other tasks like steelworks and M&E installations.

2.4 Project Management Software (International)

Source : businesswire.com

e.g. #Procore

e.g. Project Hudson Yards New York Development (USA) 

• One of the largest private real estate developments in the U.S.

• Used Procore to manage contracts, RFIs (Requests for Information), submittals, and project documentation across multiple buildings.

Tips : Procore helps project managers track progress in real-time and streamline communication between developers, architects, and subcontractors.

2.5 Sustainable Building Practices (Malaysia)

e.g. Green Building Index ( #GBI ) Malaysia

e.g. Project : Menara Kerjaya Prospek (Platinum-Rated GBI Building in KL) ( Kerjaya Prospek Group Bhd)

• Used rainwater harvesting, solar panels, and energy-efficient lighting to reduce operational costs.

• Designed with natural ventilation and low-E glass windows to minimize air-conditioning use.

Tips : By using recycled materials in construction, the project reduced carbon footprint and achieved a GBI Platinum rating - Malaysia’s highest sustainability certification.

2.6 Sustainable Building Practices (International)

e.g. LEED-Certified Skyscrapers

Source : Wikipedia

e.g. The Edge ( #Amsterdam, #Netherlands)

• Considered the world’s most sustainable office building, achieving a #LEED Platinum rating,

• Uses solar panels, rainwater harvesting, and an AI-driven smart lighting system that adjusts based on occupancy.

• Reduced energy consumption by 70% compared to conventional office buildings.

3. HANDS ON EXPERIENCE

3.1 Work on-site early in your career to understand the practical aspects of construction.

3.1.1 Work On-Site Early and Understand Practical Construction Aspects ( #Malaysia )

Source : Wikipedia

e.g. Merdeka 118 Tower (Kuala Lumpur, Malaysia)

Junior engineers and site supervisors working on this 678.9m skyscraper gained hands-on experience in : 

• Deep foundation works, including bored piling for stability on challenging ground conditions,

• Structural sequencing, ensuring concrete curing and high-rise steelwork were coordinated to prevent structural stress,

• Coordination with M&E teams to integrate power and HVAC systems within a tight core structure.

3.1.2 Work On-Site Early and Understand Practical Construction Aspects (International)

e.g. #London Crossrail (United Kingdom)

Young engineers on Europe’s biggest rail project gained experience in:

• Tunnel boring machine ( #TBM ) operations to dig under London without disturbing existing buildings.

• Managing waterproofing and drainage issues in complex underground stations.

• Learning logistics coordination, ensuring materials arrived at constrained city-center sites on time.

4. CHALLENGES, DELAY AND HSE ISSUES (Malaysia)

Source : Wikipedia

e.g. Pan Borneo Highway (Sabah & Sarawak, Malaysia) (Pan Borneo Highway Asset Management Sdn Bhd)

4.1 How Site Supervisors and Engineers Handle them

Challenge : Site supervisors faced delays due to unpredictable weather and remote locations.

Solution - Adopted modular bridge components, allowing faster installation even in rain-prone areas.

HSE Challenge - Work in dense forest areas required strict wildlife impact assessments and controlled blasting for excavation.

4.2 How Site Supervisors and Engineers Handle them (International)

Source : Wikipedia

e.g. Burj Khalifa ( #Dubai, #UAE ) ( Burj Khalifa LLC )

Challenge: Extreme heat (up to 50°C) affected concrete curing and worker health.

Solution: Concrete was poured at night to prevent premature setting and cracking.

HSE Issues: Cooling stations were installed on-site, and work shifts were adjusted to prevent heatstroke.

5. COST CONTROL AND VALUE ENGINEERING 

5.1 (Malaysia)

Source : AECOM

e.g. Second Penang Bridge (Sultan Abdul Halim Muadzam Shah Bridge, Malaysia)

Cost Challenge: The original design required expensive deep foundations due to the seabed condition.

Value Engineering Solution: Used high-durability marine concrete with precast pier segments, reducing construction costs by 20%.

5.2 (International)

Source : Wikipedia

e.g. The Shard (London, #UK) #TheShard

Cost Challenge: The Shard’s high-rise design required heavy steel framing, which was costly.

Value Engineering Solution: Used a top-down construction method, allowing the lower floors to be built while deep foundations were still being excavated—saving months of construction time and labor costs.

6. MANAGING AND MOTIVATING 

6.1 (Malaysia)

6.1.1 Target Group : Contractors, Engineers, Suppliers

e.g. MRT Putrajaya Line (Malaysia)

Challenge: 

• Diverse teams from different backgrounds (local & international contractors, engineers, suppliers).

• Language barriers and differing work ethics slowed coordination.

Solution:

• Regular toolbox meetings to align expectations and provide clear daily targets,

• Used multilingual communication boards on-site for better clarity.

• Recognized worker contributions with safety awards and performance incentives, keeping morale high.

6.2 (International)

e.g. Three Gorges Dam (China)

Challenge:

• Coordinating 30,000 workers, local and foreign engineers, and over 100 suppliers.

• Extreme weather conditions and long shifts led to worker fatigue.

Solution:

• Rotational shifts to avoid burnout.

• Created on-site dormitories, canteens, and recreation zones to improve worker welfare.

• Clear communication channels through daily briefings and digital updates for all stakeholders.

7. CONFLICT RESOLUTION (Disputes Between Stakeholders)

7.1 (Malaysia) 

e.g. LRT3

Dispute:

Cost overruns led to a dispute between the government, main contractor (MRCB George Kent), and subcontractors over payment structures.

Resolution:

• Government restructured the contract from PDP (Project Delivery Partner) to a fixed-price contract, reducing project costs by RM15 billion.

• Contractors had to adjust to a new procurement model but were assured of on-time payments and contract transparency.

7.2 (International) 

e.g. BER - Berlin Brandenburg Airport (Germany)

Dispute:

Project delays and poor design coordination led to legal disputes between the German government, architects, and construction firms.

Resolution:

• Appointed a third-party independent arbitrator to mediate conflicts,

• Revamped contractor responsibilities with stricter milestone-based payments,

• Introduced transparent reporting and digital tracking to prevent further delays.

8. CLEAR INSTRUCTIONS AND REPORTS (to Avoid Miscommunication)

8.1 (Malaysia) 

www.malaysia.travel

e.g. Petronas Twin Towers (Malaysia) #KLCC #PETRONAS 

Issue:

During construction, the two towers were found to be misaligned by 25mm due to early measurement miscommunication.

Solution:

Implemented a strict reporting protocol:

• All critical measurements had to be double-verified and documented before execution,

• Clear daily reporting templates were used to track alignment corrections.

8.2 (International)

Source : Getty Images

e.g. #Sydney Opera House, #Australia

Problem : 

Unclear structural drawings caused steel miscalculations, leading to redesign delays.

Solution:

• Introduced detailed, standardized documentation, ensuring all engineers and contractors received the same clear information.

• Established a dedicated review team to cross-check reports before approvals.

9.0 RISK MANAGEMENT AND MITIGATION 

9.1 Anticipating Problems and Solution (Malaysia)

Source : Wikipedia

e.g. East Coast Rail Link ( #ECRL)

Risk:

The project passes through challenging terrains, including hilly and soft soil areas, leading to potential landslides and settlement issues.

Mitigation : 

• Conducted geotechnical risk assessments early, allowing engineers to select soil stabilization techniques (such as deep soil mixing and retaining walls) before major problems occurred,

• Used LiDAR and drone technology for continuous monitoring of high-risk zones.

9.1 Anticipating Problems and Solution (International)

e.g. #Panama Canal Expansion (Panama)

Risk:

The high water pressure in the new lock system posed a risk of failure due to unforeseen geological conditions.

Mitigation : 

• Conducted extensive hydraulic modeling simulations before construction to predict potential failures,

• Adjusted the concrete mix design and reinforced critical areas with additional steel structures to prevent long-term cracking.

9.3 Contingency Plan for Labour Shortages, Material Delays and Design Changes

9.3.1 (Malaysia) 

e.g. Klang Valley Mass Rapid Transit (MRT2 – #Putrajaya Line, #Malaysia)

Challenge:

The project faced labor shortages due to foreign worker permit issues and material supply chain disruptions during the COVID-19 pandemic.

Solution:

9.3.1.1 Labor Contingency Plan

• Reallocated local workforce from less critical areas to key sections,

• Implemented night shifts to maximize productivity with available manpower.

9.3.1.2 Material Contingency Plan

• Secured alternative suppliers in advance to avoid complete reliance on single-source vendors,

• Used precast concrete elements to reduce on-site dependency on raw materials.

9.3.2 (International) 

Source : Google

e.g. One World Trade Center (New York, USA)

Challenge:

Steel price fluctuations and design modifications after 9/11 security reviews caused cost overruns and delays.

Solution:

9.3.2.1 Material Contingency Plan

Locked in long-term contracts with multiple steel suppliers to hedge against price volatility.

9.3.2.2 Design Contingency Plan

• Kept modular components flexible for adjustments without affecting the project timeline.

• Used BIM modeling to simulate changes before physical construction, avoiding costly rework.

10. PROACTIVE VS REACTIVE

10.1 (Malaysia) 

e.g. PNB 118 (Merdeka 118 Tower, Malaysia) Permodalan Nasional Berhad 

Proactive:

Engineers anticipated wind load effects on the 678.9m structure, which could cause excessive sway.

Solution:

Integrated a tuned mass damper (TMD) system early in the design phase to counteract wind forces.

Tips : This prevented structural instability issues that could have been costly to address later.

10.2 (International)

Source : Wikipedia

e.g. Hong Kong-Zhuhai-Macau Bridge (China) #HongKong #Zhuhai #Macau #Bridge

Proactive:

Predicted long-term corrosion issues due to constant exposure to seawater.

Solution:

• Used anti-corrosion concrete and special steel reinforcements coated with epoxy to extend the bridge’s lifespan.
• Incorporated self-monitoring sensors in the bridge structure to detect early signs of material degradation.

11. STAY ORGANIZED AND BE PREPARED FOR SUDDEN CHANGES

11.1 Use project management tools like #Primavera P6, Microsoft Project, or #Procore to track timelines and resources (See 2.3 above)

11. 2 Detailed Documentation of Work Progress, Change Orders and Contractual Obligations

11.2.1 (Malaysia)

e.g. MRT Kajang Line (MRT1)

Challenge:

• Frequent design changes due to site constraints and unforeseen underground utilities.
• Contractors (WPC) required clear documentation of change orders to track variations in scope and cost.

Solution:

• Used #CDE (Common Data Environment) software to store all contract documents, work progress reports, and change orders in one digital platform.
• Maintained a structured approval process where each variation order (VO) was documented, approved by the client, and reflected in the payment certificates.

Tips : This prevented disputes over extra costs and scope creep while keeping the project within budget.

11.2.2 (International)

e.g. Crossrail (Elizabeth Line, UK)

Challenge:

Managing thousands of subcontractors across multiple stations, tunnels, and rail segments required strict documentation of progress and contractual obligations.

Solution:

• Implemented Aconex (Project Document Control Software) to track work progress in real-time.
• Every change order was logged with a clear paper trail, ensuring transparency in cost variations.

Tips : The detailed record-keeping helped resolve disputes efficiently, preventing legal claims from delaying the project further.

12. QUALITY CONTROL

- Catching Mistakes Early to Prevent Costly Rework

12.1 (Malaysia)

https://themalaysianreserve.com/

e.g. #Petronas Refinery and Petrochemical Integrated Development ( #RAPID, #Pengerang, #Johor, Malaysia)

Issue:

Early in construction, piping and structural steel misalignment was discovered due to inconsistent fabrication tolerances.

Tips : If left unchecked, it could have led to costly rework and safety hazards.

Solution:

• Introduced laser scanning technology for quality checks before final installation, ensuring perfect alignment,

• Established strict quality checkpoints at the prefabrication stage, catching errors before materials reached the site.

Tips : The proactive approach saved millions in rework costs and prevented project delays.

12.2 (International) 

e.g. #Burj Khalifa (Dubai, UAE) #BurjKhalifa Dubai #UnitedArabEmirates

Issue:

During construction, concrete shrinkage was found to be higher than anticipated, which could cause structural misalignment in the upper floors.

Solution:

• Engineers implemented real-time structural monitoring sensors to track concrete shrinkage and adjust accordingly,

• Quality control teams tested concrete batches extensively before use, ensuring consistency.

Tips : By catching this issue early, they avoided rework on critical load-bearing components, preventing severe delays

13. CLIENT AND STAKEHOLDER

Balancing Client Expectations with On-the-Ground Realities

13.1 (Malaysia) 

e.g. TRX Exchange 106 (Kuala Lumpur, Malaysia) #TRX #KualaLumpur

Challenge:

The client wanted rapid project completion to meet commercial leasing commitments, but complex foundation work (deep piling and excavation) required more time.

Solution:

• The project team explained technical constraints clearly to the client, emphasizing the risks of rushing structural works,

• Proposed a phased construction approach where lower floors were handed over earlier for tenant fit-outs while upper floors were still being completed.

Tips : This ensured both safety and client satisfaction without compromising the structural integrity of the skyscraper.

13.2 (International)

e.g. #Doha Metro ( #Qatar ) #DohaMetro

Challenge:

Pushing an unrealistic 2022 FIFA World Cup deadline, despite unforeseen underground utility conflicts delaying tunneling.

Solution:

• The project team presented a revised schedule with risk assessments, showing why adjusting deadlines was necessary,

• Used cut-and-cover tunneling methods in some areas to speed up progress without compromising safety.

Tips : This managed the client's expectations while keeping the project on track.

13.3 Maintaining Good Relationships with Subcontractors and Suppliers 

You may need help in Crisis Situations

13.3.1 (Malaysia) 

e.g. Second Penang Bridge (Malaysia) #SecondPenangBridge

Crisis:

Unexpected delays occurred due to concrete supply shortages and issues with marine piling in deep waters.

Solution:

Because of strong relationships with key suppliers, the project team was able to :

• secure emergency material allocations from alternative suppliers without price hikes,

• Worked closely with marine piling specialists, negotiating flexible work hours to complete work faster.

Tips : These supplier and subcontractor relationships prevented further delays and kept costs under control.

13.3.2 International 

Source : Wikipedia

e.g. London #Heathrow Terminal 5 (UK) #HeathrowTerminal5

Crisis:

A critical steelwork supplier went bankrupt mid-project, threatening the terminal’s structural completion.

Solution:

Because the main contractor, BAA , had good relationships with secondary suppliers, they were able to quickly source steel from alternative suppliers in Spain without significant cost increases.

Tips : The supply chain adaptability minimized disruption and kept the project moving.

14. TRANSPARENCY 

14.1 (Malaysia) 

e.g. MRT2 (Putrajaya Line, Malaysia)

Issue:

Ground settlement near Persiaran APEC Station caused cracks in adjacent buildings.

Response:

• MRT Corp immediately informed the public and stakeholders, explaining the cause and corrective measures. #MRTCorp

• Implemented real-time monitoring systems and compensated affected property owners.

Tips : This built public trust and prevented legal disputes, ensuring smoother project continuation.

14.2 (International) 

e.g. Sydney Opera House Renovation (Australia)

Issue:

During a major renovation, unexpected structural deterioration was discovered in the foundation, risking long delays.

Response:

Engineers openly communicated the issue with stakeholders and the public, explaining why repairs were necessary.

Tips : The transparency helped secure additional funding and adjusted timelines, ensuring the project could be completed without cutting corners.

15. LESS BUT NOT LEAST - NEVER STOP LEARNING

• Attend industry seminars, certification courses (like #PMP, #RICS, or #LEED), and network with senior professionals.

• Learn from past mistakes and successes - analyze what worked and what didn’t on every project.

Tips : Stay adaptable - construction is constantly evolving, and a rigid mindset won’t work.