ADOPTION OF SOCIAL COST AMONG STAKEHOLDERS IN MALAYSIA CONSTRUCTION INDUSTRY

Abstract

Social costs are the overall impact of economic activity on the welfare of society. Social costs are the 'invisible' components of building operations, hence are not included in the tender price. However, the people of a nearby construction zone pay the price by enduring disturbed economic activity, pollution, and disrupted health and social well-being; without any adequate compensation. The purpose of this study is to identify the level of understanding of social cost among construction players and to identify the level of importance of social cost consideration among construction players. This research will provide new information for predicting or assuming the link between the level of understanding and level of importance among construction stakeholders. According to the literature, social cost indicators as a result of construction-related negative impacts for construction players include transportation, economic activities, and social, ecological, and health systems. The respondents for this research were conducted among clients, contractors, architects, engineers, and quantity surveyor firms. A quantitative method using questionnaires is applied to obtain data. In terms of social cost understanding, the data shows that different types of construction stakeholders have varying levels of understanding. According to the findings of the study by mean, the level of understanding of social costs for most respondents is road safety problems, followed by construction site water pollution causing irreversible damages. Then, the third highest mean score which is the air pollution of construction machinery produces air emissions that contain carbon and nitrogen oxides, toxic substances, and heavy metals. The finding emphasises that the level of understanding and the level of importance of social costs consideration among construction players are aware that road safety problems are the main reason for missing construction projects. Meanwhile, there is no significant relationship between the level of understanding and the level of importance of social costs.