Professional Documents
Culture Documents
3.0 INTRODUCTION
outlines the researcher's choice of the research approach in the initial section. This
establishing the population and sampling criteria, culminating in the creation of the
accomplish all of the objectives for the research that were established in Chapter
One. In conclusion, the last section of this chapter outlines the data analysis
maintain a professional standard in the research conduct and minimize the difficulties
and essential part of the investigation process for any thesis, dissertation, document,
(Sidharth, 2023)
or proposal .
According to McCombes (2021), research design is the systematic and
orderly planning methodology used to achieve the goals of the research from the
beginning to the end. The implementation of research design can improve the
researcher’s understanding of the research aim, ensuring alignment with the expected
trajectory towards achieving the final objective. This involves making decisions
determining the sampling strategy, and planning for data collection and analysis
(McCombes, 2021)
.
impacts on SME contractor cash flow and the subsequent impacts on the project
(3) steps have been planned for this research: Step 1 is a systematic review of the
literature. The following step: Step 2 is the creation of the methodology and survey
questionnaire; and the final step: Step 3 is the analysis, interpretation, and conclusion
(Taherdoost, 2022)
of the findings . The comprehensive framework of research design
Step 1: Look for suitable sources for identifying the most requested technology to be
studied in the research.
-Keywords used when searching for sources: “Retention Money, SME Contractor, Cash
Flow, Project Performance, PAM Construction Contracts
-A total of 85 papers are studied.
-Frequency analysis is carried out and Retention Money is indicated the common
challenges to contractors’ cash flow and project performance.
Figure xx: Research Design Framework
related to the study, ensuring a more precise outcome. Initially, the goal was to
identify the impacts of retention money practice on cash flow of SME contractors.
and published e-books from 1976 to 2023. The keywords used for searching reading
materials from Google Scholar are “Retention Money”, “SME Contractor”, “Cash
practice on contractors’ cash flow in the context of Malaysia and other countries,
findings and identify the impacts of retention money practice on contractors’ cash
flow before delving into a detailed discussion. With the impacts of retention money
practice on contractors' cash flow as the research’s focal point, research problems
were identified in the third step, shaping research questions and objectives,
cash flow, along with its subsequent impacts on the construction project
SME contractors, research questions and objectives were formulated to explore the
contractors’ cash flow and its subsequent impacts on the construction project
provide the existing impacts of retention money practice on SME contractors’ cash
capital constraint as part of the final step. Simultaneously, the subsequent impacts of
retention money on project performance were also grouped into five aspects: project
construction workers, and risk of project abandonment. In summary, the initial phase
of the systematic literature review, comprising five steps, establishes the groundwork
for this research and fulfills the primary objective of examining how retention money
practice of PAM contract impacts the cash flow of SME contractors in Malaysia
construction industry.
Design involving three (3) steps Initially, the researcher decides on a quantitative
research method utilizing an online structured survey questionnaire, chosen for its
Subsequently, the research population and sampling are determined, with a goal of
the key tool for the quantitative research study, following the approach outlined by
(Sanda et al., 2021).
The concluding stage of this research involves Data Analysis, Results, and
population through a Google Form link, shared via direct messages on WhatsApp
and LinkedIn. Using the collected primary data, the researcher will employ the
Frequency Analysis Method for thorough data analysis. Following this, the
describe and explain phenomena, allowing for measurement, trend identification, and
employed across various disciplines, including natural and social sciences such as
collecting and analysing numerical data to draw conclusions and make informed
(Sukamolson, n.d; Watson, 2013)
interpretations about the researched phenomena .
data collected from experiments, which may include true-experimental and quasi
includes obtaining data used to describe subjects; compare situations and establish
trends for the information. Some non-experimental quantitative research designs are
(Voxco, n.d.)
descriptive, comparative and correlational .
construction players regarding the challenges they face. The decision to employ a
quantitative approach was made after considering factors such as the study's purpose,
research questions, objectives, and the overall nature of the research. Specifically, a
non-experimental quantitative research design has been chosen for a more detailed
investigation.
The non-experimental descriptive research is chosen to effectively serve the
retention money practice on contractors’ cash flow and the project performance in the
"What is," and through the collection of descriptive data, the researcher can acquire
the utilization of relevant questions that can be sent through different avenues such as
obtain primary data. This method is chosen to address the research objectives and
answer the research questions appropriately. Opting for a quantitative approach for
numeric data collection is preferred, since the objective of this research is to gather
substantial data on the impacts of retention money on SME contractors’ cash flow
and project performance in the context of PAM contract. This is because quantitative
approaches excel in collecting information from larger sample sizes. Moreover, the
choose from predefined answers, streamlining the data analysis process and saving
(Sukamolson, n.d.)
time for the researcher .
Hasmori et al. (2012) and Sambasivan & Soon (2007) both adopted the
Hasmori et al.’s (2012)
quantitative approach in their research. In research, a closed-
ended survey was conducted for the quantitative study, and they successfully
obtained responses from a total of two hundred and sixty-four (264) respondents
The researcher recognized that the adoption of a quantitative method eased and
(Hasmori et al., 2012)
streamlined the data analysis process .
in his research on the causes and effects of delays in Malaysia construction industry.
given locality, town, or nation. Specifically, within the realm of statistics, the
statistical population denotes the group of entities that captures the researcher's
target population and the accessible population. The target population consists of
individuals with similar characteristics that align with the study's interests, while the
In this context, the target population for the study are the SME contractors in
construction project involving the retention money practice in the context of PAM
who can accurately represent the entire community. This is critical due to the
general, sampling methods are classified into two types: probability sampling and
population has an equal chance of being chosen for the sample, but non-probability
sampling operates differently, with sample selection not random and potentially
(McCombes, 2019)
biassed, limiting generalization .
cultural domains involving knowledgeable experts. Its effectiveness stems from the
random probability sampling methods. The success of this approach relies heavily on
reliable and competent informants to ensure the quality of the gathered data
(Tongco, 2007)
. The group of contractors with grade from G1 to G5 serves as the unit of
analysis in this approach, as the research seeks to investigate their viewpoints on the
impacts of retention money practice on SME contractors’ cash flow and construction
project performance and also the potential strategies to minimize the impacts of
retention money practice on SME contractors’ cash flow and its subsequent impacts
Up to January of 2024, the official website of CIDB has shown that the there
(CIDB, 2024)
is a total amount of 12027 registered contractors with grade G1 to G5
The statistic of registered contractors with grade G1 to G5 has been implemented for
assisting the calculation of sample size for this research. The table below shows the
G1 6651
G2 2276
G3 1773
G4 559
G5 768
Total 12027
Since the target population for this research exceed 10000, the formulae
Pourhoseingholi et al. (2013)
suggested and demonstrated by in his research is being
Where:
n= desired sample size
Z= standard normal deviate; usually set at 1.96 (or~2) which correspond to 95% of
confidence level
p= proportion in the target population estimated to have a particular characteristic. If
there is no reasonable estimate, use 50%
1-p= proportion in the target population not having the characteristic
d= degree of accuracy required, usually set at 0.05 level (occasionally at 2.0)
Calculation:
n=(1.962)(0.5)(0.5)/(0.05)²
n=385
Upon the calculation of the sample size, the expected sample size is 385.
Hence, in this scenario, the structured questionnaire designed for this study will be
invitation through both direct messages and the Google Form link. On LinkedIn, one
Moreover, scaling questions are also included providing nuanced answers, while
distributed via email or online platforms, offer anonymity and comply with data
(Bhat, 2019)
security regulations .
retention money practice on SME contractors’ cash flow and project performance in
the context of PAM contract in Malaysia construction industry and also the potential
of the most fitting response from a spectrum of options, ranging from "strongly
(Bhat, 2019).
agree" to "strongly disagree"
Online questionnaires are used to collect raw data and information in this
questionnaire includes six (6) sections that are carefully developed to align with the
research goals. The table below summarizes the research objectives in the first
of questions. Lastly, the third column describes variables and specifies the sources of
Self-Develop
1. CIDB Grade
2. Number of employees Adapt & Modify
3. Tendering capacity
4. Paid-up capital Mohamed et al.
5. Types of Standard Form of (2018)
Contract Used
(PWD/PAM/FIDIC…)
interviewer's details, the interview subject, assurances of privacy, a time estimate for
the survey, consent if needed, and an invitation for the respondent to participate. The
(Retention Money Practice based on types of PAM contract used) are designed to
identify the SME contractors who used PAM contract as the standard form of
the impacts of retention money practice on SME contractors’ cash flow in the context
project performance. Section 4 and Section 5 draw on major topics from the
performance. The table below shows the summary of research objectives and the
Objective 2:
To investigate the impacts on project performances subsequent
to the practice of retention money practice of PAM contract in Section 5
Malaysia construction industry.
Objective 3:
To study the strategies to minimize the negative impact of
retention money on contractor's cash flow and project Section 6
performance.
The survey findings were examined using the frequency analysis method, a
common quantitative research approach applied in diverse scientific fields and social
assessing behaviours and aspects of quantitative data. The initial stage involves
determining the frequency of each operation, with segmented codes tallied during
Adopting frequency analysis is the most direct method for the researcher to
specific, utilizing the frequency analysis method involves initially obtaining the
number of respondents for each questionnaire item. For example, the analysis of
analysis to gather the frequency and percentage of respondents who answered related
contractors’ cash flow and its subsequent impacts on project performance, then the
analysis is employed to pinpoint the most effective strategies to minimize the impacts
of retention money practice on SME contractors’ cash flow and its subsequent impact
statistics for summarizing data in the research on the impact of retention money
practices on SME contractors in the Malaysian construction industry and also the
on SME contractor’s cash flow, measures like mean, median, and standard deviation
retention money practices influence cash flow, project performance, and the
retention money practice on their cash flow and the project performance in the
This chapter provides insight into the methodology of research that was
selected by the researchers to carry out this study and meet its goals in an effective
manner. The research design comprises three stages: Stage 1 (systematic literature
review), Stage 2 (methodology and survey questionnaire design), and Stage 3 (data
analysis, results and conclusion. This well-structured framework gives clarity to the
gathering responses from different stakeholders in the construction industry. For this
research objectives defined in Chapter One has been developed. The study selects
Malaysia construction industry, intended to study their view about the impacts of
retention money practice on SME contractors’ cash flow and its subsequent impact
on project performance and also the potential strategies to minimize the impacts of
retention money practice on SME contractors’ cash flow and its subsequent impact
eighty-five (385) SME contractors (contractors with grade from G1 to G5) through
WhatsApp, Telegram and LinkedIn using Google Form. The primary data gathered
from this survey will be analysed using the Frequency Analysis Method and
Descriptive Statistics Method. The following chapter shall contain a more in-depth
analysis of the results gleaned from information collected from the survey
distribution.
REFERNCES
3.-tnc-pam-contracts-2018with-quantities. (n.d.).
Abas, M., Khattak, S. B., Hussain, I., Maqsood, S., Abas, M., Khattak, S. B., Hussain, I.,
Maqsood, S., & Ahmad, I. (2015). Evaluation of Factors affecting the Quality of
Abdul Kadir, M. R., Lee, W. P., Jaafar, M. S., Sapuan, S. M., & Ali, A. A. A. (2005).
Abdullah, A. H., Yaman, S. K., Mohammad, H., & Hassan, P. F. (2018). Construction
https://doi.org/10.1108/ECAM-07-2016-0176
Abdul-Rahman, H., Ali Berawi, M., & Ariff Yahya, I. (2006). Delay Mitigation in the
Abdul-Rahman, H., Takim, R., & Min, W. S. (2009). Financial-related causes contributing
https://doi.org/10.1057/rlp.2009.11
Abdul-Rahman, H., Wang, C., & Ariffin, N. H. (2015). Identification of Risks Pertaining
Adjei, E. A.-G., Fugar, F. D. K., Adinyira, E., Edwards, D. J., & Parn, E. A. (2018).
Afrifa, G. A. (2016). Net working capital, cash flow and performance of UK SMEs.
2015-0031
performance. https://www.researchgate.net/publication/284823994
performance. https://www.researchgate.net/publication/284823994
https://doi.org/10.1016/S0263-7863(96)00035-X
Al-Joburi, Al‐Aomar, & Bahri, M. E. (2012). Analyzing the impact of negative cash flow
5479.0000123
SACPCMP.
https://www.researchgate.net/publication/366418834
https://www.researchgate.net/publication/366418834
https://www.researchgate.net/publication/311808133
Argenti, J. (1976). Corporate Collapse: The causes and Symptoms, MacGraw Hill,
London.
Ariffin, N. F., Ali, M. I., Ramli, N. I., Md Jaafar, M. F., Wan Ahmad, S., Shukor Lim, N.
H. A., & Abd Khalid, N. H. (2018). The Study on Cause and Effect of Abandoned
Banwell, H. (1964). The Placing and Management of Contracts for Building and Civil
Bao, D., Chan, K. C., & Zhang, W. (2012). Asymmetric cash flow sensitivity of cash
https://doi.org/10.1016/j.jcorpfin.2012.05.003
Construction Industry.
Construction Industry.
Bharu, K., Nor Hidayah Abdullah Rodiah Zawawi Zuraini Md Ali, K., Ganiyu Wasiu A
Ola-awo Kabir Adetoro Moh, B. O., Umar, K., & Zakiyuddin Ahmad Rashid
in the Construction Industry Calistus Ayegba Adakole Edwin Agbo Singgora Tiles:
Bhat, Adi. (2019, September 20). Questionnaire: The ultimate guide, advantages &
examples. QuestionPro.
https://www.questionpro.com/blog/what-is-a-questionnaire/#:~:text=A
%20questionnaire%20can%20is%20a,on%20various%20topics%20of%20interest.
Bilotta, C. (2013). Issue 2 Article 5 2013 Ending the Commercial Siesta: The
38).
Central Unit on Procurement. (1994). Bonds and Guarantees - A Guidance Paper of the
Chadee, A., Ali, H., Gallage, S., & Rathnayake, U. (2023). Modelling the Implications of
05
Chauhan, G. S., & Banerjee, P. (2018). Financial constraints and optimal working capital
Chen Tan, H., Choy Chia, F., Yap, E., Tan, H., & Chia, F. (2010). Causes of Abandoned
Chong, H. Y., & Zin, R. M. (2010). A case study into the language structure of
https://cims.cidb.gov.my/smis/regcontractor/reglocalsearchcontractor.vbhtml
Cui, Q., Hastak, M., & Halpin, D. (2010). Systems analysis of project cash flow
https://doi.org/10.1080/01446191003702484
https://doi.org/10.5923/j.ijcem.20150404.01
Ellis, L., Hickson, B. G., & Ellis, L. A. (2014). Factors affecting Construction Labour
https://www.researchgate.net/publication/258245754
Gumusburun Ayalp, G., & Çivici, T. (2023). Factors affecting the performance of
https://doi.org/10.1108/ECAM-10-2021-0890
Harisudin, M., Adi, R. K., & Qonita, R. R. A. (2022b). SYNERGY GRAND STRATEGY
Hartoonian, A. (n.d.). Confronting Retainage and its Disruptive Effects on the Business
Hasmori, M. F., Said, I., & Ismail, I. (2012). Issues of Late and Non-Payment Among
Contractors in Malaysia.
Hoque, M. I., Safayet, M. A., Rana, M. J., Bhuiyan, A. Y., & Quraishy, G. S. (2023).
https://doi.org/10.1108/IJBPA-03-2021-0032
Irfan, M., Zahoor, H., Abbas, M., & Ali, Y. (2020). Determinants of labor productivity for
Ismail, M., Haezah Noruzman Politeknik Sultan Salahuddin Abdul Aziz Shah, A., Ola
Yusuf, T., & Mohd Apandi, N. (2019). Clean Strength, Leaching and Microstructure
https://www.researchgate.net/publication/339139736
Kaming, P., Olomolaiye, P., Holt, G., & Harris, F. (1997). Factors influencing construction
Kazaz, A., & Birgonul, Talat. M. (2005). Determination of Quality Level in Mass Housing
195.
Koopman, K., & Cumberlege, R. (2021). Cash flow management by contractors. IOP
https://doi.org/10.1088/1755-1315/654/1/012028
CONTRACTORS.
Lagares Barreiro, P., & Puerto Albandoz, J. (2001). MaMaEuSch Population and sample.
GHANA.
Latham, M. (1994a). Constructing the team : final report : joint review of procurement
Industry.
Effects and Remedies. In World Journal of Innovation and Modern Technology (Vol.
Makori, D. M., & Jagongo, A. (2013). Working Capital Management and Firm
Project Success.
Marshall, G., & Jonker, L. (2010). An introduction to descriptive statistics: A review and
https://doi.org/10.1016/j.radi.2010.01.001
Performance: An Empirical Study from Kuwait. Journal of Asian Finance, 9(3), 53–
0063. https://doi.org/10.13106/jafeb.2022.vol9.no3.0053
McCombes, S. (2019, September 19). Sampling Methods | Types, Techniques & Examples.
Scribbr. https://www.scribbr.com/methodology/sampling-methods/.
McCombes, S. (2021, June 7). What Is a Research Design | Types, Guide & Examples.
Scribbr. https://www.scribbr.com/methodology/research-design/#:~:text=A
%20research%20design%20is%20a,or%20criteria%20for%20selecting%20subjects
Mj, J., & Suman, V. (2021). Factors Contributing Stalling or Abandonment of
Mohamed, M. R., Rizal Mohamed, M., Fadhil Mohammad, M., Mahbub, R., Ramli, M.
A., Aizat, K., & Jamal, A. (2018). The Issues and Challenges of Small and Medium-
https://www.researchgate.net/publication/327417154
Muhammad, N. Z., Sani, A., Muhammad, A., Balubaid, S., Ernest Ituma, E., & Suleiman,
https://doi.org/10.11113/jt.v77.6314
Muhammed, U., Eze, E. C., Tsado, J. A., & Okokun, B. (2019). Assessment of bonds
https://doi.org/10.1016/j.procs.2017.11.032
Lumpur.
Nikulin, D. (2015). relationship-between-wages-labour-productivity-and-unemployment-
Nor Azhari Azman, M., Azman, M., Ahamad, M., Majid, T., & Hanafi, M. (2012). A
https://www.researchgate.net/publication/260202571
Nor Azhari Azman, M., Dzulkalnine, N., Abd Hamid, Z., & Wai Bing, K. (2014). Jurnal
Ofori, G. (2015). Nature of the Construction Industry, Its Needs and Its Development: A
Oke, A., Aigbavboa, C., & Dlamini, E. (2017). Factors Affecting Quality of Construction
Projects in Swazilland.
Oke, A. E. (2013). Benefits and Level of Using Retention Bond for Construction Projects
Omopariola, E. D., Lowe, J. G., & Abimbola, W. (2017). The effects of cashflow on
Omopariola, E. D., Windapo, A., Edwards, D. J., & Thwala, W. D. (2020). Contractors’
04-2019-0099
Omran, A., Saleh, M. S. H., & Gebril, A. O. (2023). Factors Causing Time and Cost
Paul, S. Y., & Boden, R. (2011). Size matters: The late payment problem. Journal of
https://doi.org/10.1108/14626001111179776
Pavlović, R., Bukvić, R. M., & Pavlović, R. Ž. (n.d.). The Cash Flow Concept in Modern
Pourhoseingholi, M. A., Vahedi, M., & Rahimzadeh, M. (2013). Sample size calculation
Issue 1).
https://www.qualtrics.com/au/experience-management/research/cross-tabulation/
Rahim Abdul Hamid, A., Zakaria, R., & Reza Mohandes, S. (2016). LATE PAYMENT
https://www.researchgate.net/publication/312016972
construction industry.
construction industry.
Raina, P., & Tookey, J. (2012). World Construction Conference 2012-Global Challenges
analysis.php#:~:text=Frequency%20Analysis%20is%20a%20part,%2C
%20dispersion%2C%20percentiles%2C%20etc.
Salam, S. A. nisaa, Ariffin, N. F., Ali, M. I., & Ramli, N. I. (2023). Assessment On
https://doi.org/10.30880/IJIE.2023.15.02.023
Sambasivan, M., & Soon, Y. W. (2007). Causes and effects of delays in Malaysian
https://doi.org/10.1016/j.ijproman.2006.11.007
Sanda, Y. N., Anigbogu, N. A., Izam, Y. D., Hannatu, ;, & Datukun, L. (2021).
Shah Ali, A. (2011). Building Defects: Possible Solution for Poor Construction
https://www.researchgate.net/publication/271201366
Shantikumar, S., & Barratt, H. (2018, August 20). Methods of sampling from a population.
Health Knowledge.
https://www.healthknowledge.org.uk/public-health-textbook/research-methods/1a-
epidemiology/methods-of-sampling-population
Shash, A. A., & Qarra, A. Al. (2018). Cash Flow Management of Construction Projects in
https://doi.org/10.1177/8756972818787976
SCHOOL OF BUILT.
665–674. https://doi.org/10.1016/j.ijproman.2007.09.009
and Limitations. Journal of Management Science & Engineering Research, 5(1), 53–
63. https://doi.org/10.30564/jmser.v5i1.4538
Tak, D., & Yek, W. (n.d.). THE DRAFT CIDB STANDARD FORM OF BUILDING
Tarawneh, S., Almahmoud, A. F., & Hajjeh, H. (2023). IMPACT OF CASH FLOW
https://doi.org/10.2478/emj-2023-0006
Turnea, E. S., Neștian, Ștefan A., Tiță, S. M., Vodă, A. I., & Guță, A. L. (2020).
demand and cash flow problems during the COVID-19 economic lockdown.
https://www.voxco.com/blog/non-experimental-design/#:~:text=Meaning%2C
%20unlike%20the%20experimental%20researc
https://doi.org/10.1108/IJMF-01-2013-0016
Nursing, 29–48.
Wong, J. M. W., Ng, S. T., & Kong, H. (2010). TS 1M-Project and Organisation
https://doi.org/10.46300/91014.2022.16.1
https://doi.org/10.46300/91014.2022.16.1
Zayed, T., & Liu, Y. (2014). Cash flow modeling for Construction projects. Engineering,
https://doi.org/10.1108/ECAM-08-2012-0082