Impact of inflation rate on construction projects budget: A review

Musarat, Muhammad Ali; Alaloul, Wesam Salah; Liew, Mohd Shahir

doi:10.1016/j.asej.2020.04.009

Cited by 122 publications

(77 citation statements)

References 39 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Therefore, the influence of the inflation rate on the construction industry cannot be overlooked [20]. In a construction project budget, 35% to 60% of the cost belongs to building materials [21,22], which is being affected by the inflation rate annually [23,24]. The inflation rate keeps influencing the construction sector and is ignored initially, where clients keep paying an excessive project cost that rises due to the inflation rate effect [25].…”

Section: Figurementioning

confidence: 99%

The Effect of Inflation Rate on CO2 Emission: A Framework for Malaysian Construction Industry

et al. 2021

Self Cite

View full text Add to dashboard Cite

Inflation and CO2 emission are the two most deleterious elements in the construction industry. However, so far no linkage between the two has been estimated. Therefore, this study examines the relationship between carbon dioxide (CO2) emission and the inflation rate in the construction industry of Malaysia and proposes a CO2 emission calculator framework. As it is not possible to calculate the effect directly, therefore, an indirect assessment of the correlation coefficient was performed between the inflation rate (independent variable) and construction rates, i.e., building material prices and value of construction work (dependent variables) along with percentage deviation of each variable. The results show that with a decrease in the inflation rate, the prices of the building materials also decrease, whereas the value of the construction work increases. The relationship looks attractive from an end-user perspective, but it creates a major problem of CO2 emission. The effect impacts directly on environmental sustainability as it is not suitable for the greenhouse effect because it triggers CO2 emission. While estimating how much CO2 emission occurs from the value of construction work of Malaysia, it was revealed that there is no such calculator available to perform the estimation. Therefore, a CO2 emission calculator framework is proposed, which will be beneficial after its practical implementation for the construction industry stakeholders and government/policy makers to monitor the emissions and control the adverse effects of massive construction work.

show abstract

Section: Figurementioning

confidence: 99%

The Effect of Inflation Rate on CO2 Emission: A Framework for Malaysian Construction Industry

et al. 2021

Self Cite

View full text Add to dashboard Cite

show abstract

“…Posisi inflasi dalam pertumbuhan ekonomi tidak dapat diabaikan, karena ia membalas secara positif atau negatif. Peran inflasi berpengaruh terhadap ekonomi dan profitabilitas perusahaan (Musarat, Alaloul, & Liew, 2020). Selain itu adanya hubungan antara tingkat inflasi dan pertumbuhan laba pada perusahaan secara signifikan (Ndubuisi, I, & JI, 2019).…”

Section: Latar Belakangunclassified

Pengaruh Leverage, Ukuran Perusahaan dan Inflasi terhadap Profitabilitas Pada Bank Umum Syariah di Indonesia

Syafi'i

Haryono

2021

MALIA

View full text Add to dashboard Cite

The company has orientation to gain profit in carrying out business activities. There are factors that affect the company's profitability, both internally and externally. Company management, must control their financial ratios and consider macroeconomic and environmental conditions because these factors can affect the company's profitability. The purpose of this study is to examine the effect of leverage, firm size and inflation on the profitability of Islamic Commercial Banks in 2012-2019. This type of research is quantitative research. The object of this research is the banking sector companies, namely Islamic Commercial Banks registered with the Financial Services Authority (OJK) in the period 2012 to 2019. The sampling technique used is purposive sampling technique. The method used for data analysis is panel data regression, which is a combination of cross section data and time series data using data from 10 Islamic Commercial Banks. The findings of this study indicate that the leverage that uses the DER indicator partially has a significant positive effect on the profitability of Islamic banking, which uses the ROA indicator. Furthermore, the size of the company that uses the indicator Ln Assets and Inflation does not have a significant partial effect on profitability at Islamic Commercial Banks, but has a simultaneous effect. The variables of leverage, firm size, and inflation simultaneously affect the profitability of Islamic Commercial Banks.

show abstract

“…The construction industry contributes a valuable amount to the economy of any country, however, it is still badly affected by several issues such as cost overrun [ 1 , 2 ], time overrun [ 3 , 4 , 5 ], price fluctuation due to inflation [ 6 , 7 , 8 ], and most importantly due to poor safety performance [ 9 ]. Despite these severe issues, a project gets completed, but is not declared successful because the project failed to achieve the projects’ objectives [ 10 , 11 ].…”

Section: Introductionmentioning

confidence: 99%

Barriers of Occupational Safety Implementation in Infrastructure Projects: Gaza Strip Case

Aisheh

Tayeh

Alaloul

et al. 2021

IJERPH

Self Cite

View full text Add to dashboard Cite

Infrastructure projects are the foundation for essential public services and have an influential position in societal development. Although the role of infrastructure projects is substantial, they can involve complexities and safety issues that lead to an unsafe environment, and which impacts the project key stakeholders. Therefore, this study aimed to evaluate the barriers to implementing occupational safety in infrastructure projects in the Gaza Strip, which cause serious threats and reduce project performance. To evaluate the barriers, 39 items were highlighted and modified as per the construction context and environment, and which later were distributed in the form of a questionnaire, to get feedback from consultants and contractors. The analysis shows that in the safety policy barriers group, consultants and contractors both ranked the item “a contractor committed to an occupational safety program is not rewarded” first. In the management barriers group, consultants and contractors both ranked the item “safety engineer does not have significant powers, such as stopping work when needed” in the first place. In the behavior and culture barriers group, consultants and contractors both ranked the item “workers who are not committed to occupational safety are not excluded” in the first place. Overall, both consultants and contractors shared the same viewpoint in classifying the barriers in the working environment. The outcome of this study is beneficial for Palestinian construction industry policymakers, so they can monitor the highlighted barriers in on-going infrastructure projects and can modify the safety guidelines accordingly.

show abstract

Impact of inflation rate on construction projects budget: A review

Cited by 122 publications

References 39 publications

The Effect of Inflation Rate on CO2 Emission: A Framework for Malaysian Construction Industry

The Effect of Inflation Rate on CO2 Emission: A Framework for Malaysian Construction Industry

Pengaruh Leverage, Ukuran Perusahaan dan Inflasi terhadap Profitabilitas Pada Bank Umum Syariah di Indonesia

Barriers of Occupational Safety Implementation in Infrastructure Projects: Gaza Strip Case

Contact Info

Product

Resources

About