Direct and indirect costs involved in implementing Industrialized Building System (IBS) construction / Alya Ilyani Mohammad Shukri and Husrul Nizam Husin

Industrialized Building System (IBS) is defined as a construction made of components manufactured either on or off site, then positioned and assembled into structures. The government has taken a few initiatives in order to encourage the practitioners to implement IBS in their project but the rate of usage of IBS is still low. The aim of this research is to study the direct and indirect cost involved in IBS construction. Objectives of the research are to identify the direct and indirect cost from the usage of IBS construction, to determine how the direct and indirect cost affect the usage of IBS construction and to recommend the improvement of IBS contractors involved with the IBS construction. In order to achieve this objective, a quantitative method of research is used and questionnaires as the tools for data collection. All data shall be analyzed using Statistical Package for Social Science (SPSS) software. All of the direct and indirect costs were known and familiar to the Contractor as most costs were known as very important costs in implementing IBS. Direct cost affects the implementation of IBS as the direct cost involvement is high. It became one of the causes behind the lack of implementation of IBS. However, indirect costs involved somehow gave advantages to the Contractors as they get profit and incentives from the Government. The result of this study may increase the number of IBS construction since the cost involved is clearly highlighted and how these costs can give advantages to the project.