Preventive solution framework for improving final account closing in the Malaysian construction industry

In construction projects, the final account closing process is crucial for determining the final payment owed to either the contractor or the client upon project completion. Despite its significance, the Malaysian construction industry has long struggled with prolonged and disputed final account settlements, particularly in the private sector. While previous studies have explored various problems related to final account disputes, most of this research has focused on government-funded projects and has examined problems only after disputes have already arisen. There is also a lack of comprehensive frameworks to guide industry practitioners in preventing these disputes from occurring in the first place. This research therefore aims to develop a Preventive Solution Framework for improving final account closing in the Malaysian construction industry. To achieve this, an Explanatory Sequential Mixed-Methods (ESMM) approach was adopted, combining quantitative and qualitative data collection. In the first phase, a structured questionnaire survey was distributed to clients (developers), G7 contractors, and quantity surveying firms operating in the private sector. The data were analysed using Exploratory Factor Analysis (EFA) and descriptive statistics to identify and rank the major problems contributing to final account disputes. In the second phase, semi-structured interviews were conducted with twelve experienced industry practitioners, and the findings were analysed through thematic analysis using ATLAS.ti software, to explore the root causes of these problems and identify appropriate preventive solutions. The research identified eight major problems in final account closing, along with their underlying root causes and corresponding preventive solutions. These findings were then integrated to develop the Preventive Solution Framework, which was subsequently validated through a structured questionnaire survey involving forty experienced construction professionals. The validated framework was affirmed as comprehensive, practical, and relevant to the Malaysian construction industry. This research contributes to the body of knowledge by offering the first mixed-methods approach in developing the preventive framework that addresses final account disputes specifically within private-sector construction projects in. It provides construction stakeholders with a practical reference for proactively managing final account risks, helping to improve the efficiency and timeliness of the final account closing process.