CONSTRUCTION COST DATA

RESIDENTIAL & MATERIAL PRICES

PREPARED FOR

PROFESSOR MADYA SR. HASMAWATI HARUN

CONSTRUCTION ECONOMICS II BQS556

AP2244A

PREPARED BY

HAFIZ SYAFIY BIN HUSSAINI (2018259928)

ADAM BIN MOHAMMAD NASIR (2019620166)

FATIN NUR AZRIN BINTI AZIZ (2018200262)

AIZAR BINTI KAMALRUZAMAN (2018436192)

Table of Content

CONTENT PAGE

ACKNOWLEDGEMENT 2

3
1. INTRODUCTION

2. Literature Review: -
2.1 Uses of Construction Cost Data 4-8
2.2 Factors Affecting the Reliability and Accuracy of the
Cost Data

3. Cost Data: -
3.1 Methodology
3.2 Cost Data I - Construction Cost for Residential 9-22
Buildings
3.3 Cost Data II – Construction Material Cost

4. Construction Cost Database 23-28

5. CONCLUSION 28

6. RECOMMENDATION & IMPROVEMENT 28

7. REFERENCES 29

8. RESPONDENTS DETAILS 30

1
 Acknowledgments

First of all, we would like to Allah SWT as we finally able to finish our
assignment that have been given by our Construction Economics lecturer to us.
Tremendous efforts by every members of the group lead to the completion of this task.
We overcame the problems occurred throughout completing this assignment as a
team.

Besides that, a big thank you we address to our lecturer, Professor Madya SR.
Hasmawati Harun for her generous guidance throughout completing this assignment
properly. Despite the quarantine situation, she still gave us a clear explanation and
understanding regarding this task through digital medium. Our appreciation and thanks
is also dedicated to all of our friends for their helpful insights, cooperation and
stimulating comment. We also like to express our apology for any mistake and
shortcoming in carrying out this task. Not to forget, a big thank you to our group
members, who has worked very hard in order to complete this task within the time
given and has helped each other in completing and understanding the task.

Not to forget, we would like to show our tremendous gratitude towards our
respondents which are Encik Kamalruzaman, Encik Hussaini and Puan Maslinda for
providing us with the relevant information in completing this task. The information
provided by them are really significant in our study.

Hence, we hope that all the effort will gives a lot of benefits for us and also to
our group project. By doing this assignments, all of us has gained many knowledge
regarding cost data and how to prepared the cost data. It has increase more our
understanding and we hope that this will be benefit for us in the future.

2
1. Introduction

Cost is one of the main component in a construction project. It plays a major

role in deciding what a construction project will be like. Cost will determine the
feasibility and viability of a construction project. It consists of all the items, elements,
labour, fees, profits, plant and machineries, specialist works, and others in a
construction project. Every single thing will be measured in order to obtain the cost of
a construction project. Usually, cost is estimated by the work of quantity surveyor. In
the early stage of a construction project, quantity surveyor will perform a preliminary
estimate to obtain the cost of a project. Preliminary estimate is highly significant in a
construction project (Ayed, 1999). It allows clients and planners to evaluate a project’s
feasibility and effectively control costs (Feng et al., 2010).

During the preliminary stage, lack of data is always an issue for the quantity
surveyor to perform the estimation. In overcoming this issue, construction cost data
might be the right tool for this situation. Construction cost data is a set of information
that are required to obtain the cost of a project (Ahmad, 2011). It allows clients and
planners to accurately plan the budget for a construction project despite being in the
early stage without all those detailed information regarding the project (Arcadis, 2020).
Ahmad (2011) stated that cost data is required to forecast and control construction
activities. It helps the clients and planner in controlling the cost to be within the budget
at all time. The actual cost might differ with what given in the cost data but it is reliable
enough to be used in the early stage due to insufficient data regarding the construction
project.

There are several purposes in having a construction cost data as described by

Ahmad (2011). One of it is to manage any contractual part related to the project
especially during the interim payment and final account procedures. Besides that, it is
also required to estimate the cost of the proposed project and being a benchmark
during the design stage in order to get a figure approximating to tender estimate. Cost
data also serves as a tool to ensure that the cost is balanced according to the clients’
needs and preferences during the estimate. The other main purpose of having a cost
data is to assist the negotiation process between the client and contractor besides
speeding up the tender submission. Hence, all these purposes show that the
construction cost data is an essential tool in a construction project and perhaps toward
the construction industry as well.

3
2. Literature Review

2.1 Uses of Construction Cost Data

Early estimation of a construction project had been made easier with the
availability of construction cost data in the industry. Construction cost data is an
important tool in the construction industry (Ahmad, 2011). It is a collection of data that
consists most of the cost related to the construction industry. This include the cost of
materials, labours, houses, plant and machineries, and more. Ahmad (2011) stated
that to establish an accurate estimate, a systematic and sufficient cost data is required.
Cost data can be obtained from many sources such as the National Construction Cost
Centre (myN3C), Arcadis Cost Data Handbook, and Building Cost Information
Services Malaysia (BCISM). Construction cost data can be used for several uses and
purposes which are: -

2.1.1 Estimation of cost

Construction projects had always been relate to the situation where the actual
cost exceeds the estimated value of a project, which caused the investors a great loss
(Jiang, 2020). Cost estimation can be challenging and it is a highly concerned issue in
a construction project (Ma et al., 2016). The accuracy of an estimation will determine
the profitability of a project (Jiang, 2020). To obtain an accurate estimation, cost data
might be the right tool for the purpose as Ahmad (2011) mentioned that it consists of
data that can be used to predict cost such as cost/m2 of various buildings, element unit
rate, schedule of rates in the bills of quantities, and more. Ahmad (2011) also stated
that the cost data should be updated from time to time in order to stay reliable for
current use.

Table 1: Cost data for residential buildings in Singapore (Arcadis, 2020)

4
 Table 1 is an example of a cost data that is specifically for residential building
in Singapore. By having these data, a reliable cost can be estimated at the early stage
of a construction project. The cost can be obtained by multiplying the cost/m2 with the
area specified by the client.

2.1.2 Comparison of cost

Other than being used to predict a project cost, it is also being used to compare
cost between alternative element with similar functional requirement or buildings with
different designs (Ahmad, 2011). By having all these data, client will be able to forecast
the probable cost that they might deal with later on for each design which will eventually
help them make the right decision. Thus, client will be able to maximize their profit by
choosing the most viable choice based on the comparison obtained.

2.1.3 Balancing of cost

Ahmad (2011) said that a building cost should not only be seen as an overall
cost but it is necessary to view it in a more detailed cost breakdown. By having a cost
breakdown, the overall cost can be distributed more efficiently based on the client’s
specification (Ahmad, 2011). During preliminary stage, the cost data will be used in
order to obtain a detailed cost breakdown. It might not be exactly the same figure as
the actual cost but it will be close enough with proper and reliable cost data. Usually
the cost data are obtained from past similar projects (Ahmad, 2011).

2.1.4 Analysis of cost trend

Fluctuation of costs is normal in any industry including the construction

industry. This includes the cost of labour and materials in a construction project. By
having cost data, these cost trend can be analysed thoroughly and identify the possible
changes towards the overall cost of a building or component (Ahmad, 2011).

5
 Figure 1: The cost trend of the construction of office/commercial building in Kuala
Lumpur (Acadis, 2020)

Table 2 demonstrates the cost trend for the construction of office or commercial
building in Kuala Lumpur for the past decade. One of the most common purpose of
analysing these cost trends is to calculate the life-cycle-cost of a building (Ahmad,
2011). It allows quantity surveyor to actually predict the cost that might incur in the later
stage of the building. Life-cycle-cost (LCC) is described by Fuller (2010) as the total
cost of a building ever since its inception towards its demolition. This calculation will
provide the client with the overall cost of ownership for the building.

2.2 Factors Affecting the Reliability and Accuracy of the Cost Data

There are several factors that influences the reliability and accuracy of the cost data
which are: -

2.2.1 Project Duration

Construction cost data are the data that were based on past construction
projects and costs do fluctuate from time to time. This is why the cost data must be
updated regularly for it to be reliable with the current time. Any outdated information
would greatly affect the reliability and accuracy of the cost data. However, construction
project is common with long project duration which usually takes years to be
constructed. Hence, this might as well affect the reliability and accuracy of the cost
data. Projection of cost for future projects is a must in order to avoid inaccuracy in
estimation which will influences the profitability of a construction project.

6
 As shown in figure 1, the cost of constructing a prestige office from the year
2012 to 2013 reported a dramatic increase which is approximately around
RM600.00/m2 more than the previous year. Thus, it shows that the failure to project
the possible changes in cost will surely affect the profitability of a construction project.

2.2.2 Construction Cost Indices

It is defined by Minh- Tu et al. (2015) as a weighted aggregate for constant

quantities of items related to the construction activities. It indicates the changes
occurring in costs on certain period of time in obtaining a more accurate estimate
(Trefor, 1994). It is required to ensure that the cost data remain accurate and reliable
for estimation purposes (Elfahham, 2019).

Table 2: Changes in unit price index for building materials by region in Sarawak
(Department of Statistics Malaysia, 2016)

2.2.3 Project Location

Construction cost data can also be influenced by the location of the

construction project. It is caused by the differences in transportation costs, taxes,
labour supply and others. Certain locations might have high transportation cost due
to the unavailability of certain materials in that particular area. These caused the
construction cost data to be different in each location. To obtain an accurate cost
data for a certain location, cost indices that are based on differences in location will
be used (Ahmad, 2011).

7
2.2.4 Project Size

Project size may affect the accuracy and reliability of a cost data. Cost data
need to be adjusted depending on the size of the project as the unit cost decreases
when the quantity built increases. This happens usually due to the cost of materials
supply which may be a lot cheaper when being purchased in large sum compared to
purchasing it in small amount. Normally supplier will give a better rate for their materials
for the larger project.

2.2.5 Others

The accuracy and reliability of cost data may also be influenced by other factors
that are hard to quantify such as the quality, soil condition, weather condition,
competition and productivity. These factors may vary for each construction project.
Some project may require better materials or finishes, some has unexpected soil
condition and else. These factors need to be evaluate thoroughly in order to provide a
reliable and accurate estimation despite using the cost data provided by sources that
are readily available. Prices may also go up and down depending on how competitive
the tendering stage is for that particular project. Usually, firms are willing to cut down
their profits just to secure the job.

8
3. Cost data

3.1 Methodology

3.1.1 Data collection

For primary data collection, three interview session were conducted.

The respondents were the members of the Malaysian construction industry.
For the secondary data, the data were collected based on previous studies,
journal, articles, books and any other related sources based on the area of
research chosen.

3.1.2 Data analysis

The data obtained from the primary and secondary data were compiled
and analysed in the form of table, histogram or any other suitable method.

3.1.3 Discussion on findings

After the data had been analysed, the results from the research were
compared with the secondary data obtained from literature review.

3.1.4 Conclusion and recommendations

Once the discussion on the findings between primary and secondary

data obtained was completed, the data were then concluded.
Recommendations were made based on the research and self-opinion that
were related to the research which may be used as a guide for the next
researcher.

9
3.2 Cost Data I - Construction Cost for Residential Buildings (Cost/M2 GFA)

The data for the construction cost of residential buildings were obtained from
two interview session and several literatures. For the starter, all the of the data were
obtained from the Arcadis Construction Cost Handbook 2019. The data were
differentiated by the types of residential which is detached houses (mass housing),
detached houses (high end), terraced houses, average standard apartments and high
rise, luxury apartments and high rise, low cost housing, low cost flats and low rise (<6
level) and low cost flats and high rise (<15 level). Some of the data collected by the
interview might not include all these types of houses.

3.2.1 Limitations

The main limitation of our study is that the comparison is only between four
locations which is Kuala Lumpur, Penang, Sarawak and Johor. Therefore, the
comparison of the construction cost does not include all location in Malaysia, other
location might have different cost than the four location that have been chosen due to
material cost, market condition and so on. The next limitation is limited source of data,
which is the data from the internet could only obtained from Arcadis other website does
not have the data, and some of the website is a paid service or only can be accessed
by certain people. The data obtained from the interview also covered only one location
or by general cost only. Other than that, only data available for a one-year period which
is 2019 are considered. So, the changes in cost only be determined by location in 2019
and there are not much changes can be studied.

10
3.2.2 Data Collected from Literature: -

Table 3: Construction cost of residential building in several states (Arcadis, 2020)

RESIDENTIAL (RM / M2)

LOCATION KUALA
PENANG SARAWAK JOHOR
LUMPUR
ITEM

Detached houses
3295 2755 1945 3100
(mass housing)

Detached houses
4105 2925 4000 3805
(high end)

Terraced houses 1440 1320 1320 1480

Average standard
2425 1755 1735 2150
apartments, high rise

Luxury apartments, high

5700 3160 3185 3950
rise

Low cost housing 655 595 795 695

Low cost flats, low rise

935 805 1020 965
(<6 levels)

Low cost flats, high rise

1250 995 1160 1045
(<15 levels)

Table 3 shows the cost of the construction cost data in several state for the
year 2020. Kuala Lumpur was recorded as the most expensive cost among the others
in almost every types of house. This may be due to its congested area, prime location,
and else. These cost data are used to estimate the cost of houses. The unit of the
cost data is in cost/M2. Which means, the cost will be obtained by multiplying the cost
data with the gross floor area of a house.

11
3.2.3 Data Collected from Interview: -

The data collected by interview is obtained from three respondent and has been
done by face to face. The first respondent is Encik Kamalruzaman bin Kamaluddin, a
developer at Tahap Teknik Sdn Bhd with 26 years working experience. But the data
given is only a general price which include detached houses (mass housing), terraced
house, and average, standard apartments and high rise. The second respondent is
Encik Hussaini bin Senusi, a managing director at Pembinaan Hamid Abd. Rahman
Sdn Bhd with 28 years working experience. Lastly is Puan Maslinda binti Hussin, a
director at MF Associates Sdn Bhd with 28 years working experience. The last two
respondents’ data were based on Klang Valley. All the data obtained were in RM/sqft
and has been converted to RM/m2.

Table 4: Construction cost of residential building collected from interview

RESIDENTIAL (RM / M2)

ITEM GENERALLY KLANG VALLEY KLANG VALLEY

Detached houses
2500 2690 2798
(mass housing)
Detached houses
- 3766 3228
(high end)

Terraced houses 1296 1937 1184

Average, standard
apartments, high 1291 1721 1399
rise
Luxury apartments,
- 1937 2152
high rise

Low cost housing - 646 -

Low cost flats, low

- 1184 1076
rise (<6 level)
Low cost flats, high
- 1291 1183
rise (<15 level)

12
 3.2.4 Analysis of the data collected: -

Average Residential Construction Cost in 2020

(RM/m2)
KUALA LUMPUR PENANG SARAWAK JOHOR

4500

4000

3500

3000

2500

2000

1500

1000

500

0
Detached Detached Terraced Average Luxury Low cost Low cost flats, Low cost flats,
houses (mass houses (high houses apartments, apartments, housing low rise (<6 high rise (<15
housing) end) high rise high rise lvl) lvl)

Figure 2: The average of residential construction cost in 2020

Figure 2 is referring to the data of the average residential buildings construction cost
(RM/m2) in 2019 for Kuala Lumpur, Penang, Johor and Sarawak that were obtained from both
literature and interview session. The data from the table shows that there are cost differences
in the construction cost between each location. The construction cost also difference
according to the types of houses.

The construction cost for detached house (mass housing) in Kuala Lumpur is RM
2,820.75 which is the highest among the four location, RM 2,800.00 in Johor, RM 2,627.00 in
Penang and the lowest is in Sarawak which is RM 2,220.00. For detached houses (high end),
the highest is in Sarawak, RM 3,935.00 while the lowest is in Penang which is RM 2,927.00,
in Penang is RM 2,927.00 and in Johor is RM 3,805.00. Next is terraced house, RM 1,462.75,
RM 1,308.00, RM 1,293.00 and RM 1,388.00 which is Kuala Lumpur, Penang, Sarawak, and
Johor respectively. Johor has the highest construction cost. While the highest construction
cost for average apartments and high rise is RM 1709.00 which is in Kuala Lumpur. Other is

13
RM 1,522.50 in Penang, RM 1,510.50 in Sarawak, and RM 1,270.50 in Johor. For luxury
apartment and high rise, Johor was the highest, RM 3,950.00 and Kuala Lumpur is the lowest,
RM 2,923.00, other is RM 3,162.00 in Penang and RM 3,180.00 in Sarawak. As for low cost
housing, the construction cost is RM 650.50, RM 592.00, RM 780.00 and RM 695.00 which is
Kuala Lumpur, Penang, Sarawak and Johor respectively with Sarawak is the highest and
Penang is the lowest. Next, for low cost flats and low rise below six level is RM 1,065.00 the
highest which is in Kuala Lumpur, RM 801.00 in Penang was the lowest, RM 965.00 in Johor,
and RM 2,010.00 in Sarawak. Lastly, the highest and the lowest cost for low cost flats and
high rise below 15 level is in Kuala Lumpur and Penang which is RM 1,241.33 and RM 991.00
respectively. While the cost in Sarawak is RM 1,160.00 and in Johor RM 1,045.00.

3.3 Cost Data II - Construction Material Cost

The data was obtained from two sources which are the Malaysian Construction Cost
Centre (myN3C) CIDB Building Material Prices and Arcadis 2020. The data is differentiated
between states, which are Johor, Penang, Sarawak and Selangor. 6 materials that were
chosen are aggregate, glass, sand, cement, plywood and bricks. Both sources were obtained
from the internet and all the data were taken from the year of 2019 and 2020.

3.3.1 Limitations

One of the limitations of that we encountered during this research was that Arcadis
2020 provides less data compared to myN3C. While myN3C provides Malaysia-wide data,
Arcadis provides several states only such as Kuala Lumpur, Melaka, Negeri Sembilan,
Selangor, Sabah and Sarawak. However, most of the data covered Selangor, Sabah and
Sarawak, where only two states have relevant data for the research. Not only that, myN3C
provides better specifications. Every data from myN3C are stated with the detailed types of
materials while most data from Arcadis 2020 were a bit general. Hence, it will be hard to do a
comparison between two sources.

14
3.3.2 Data Collected from Literature (CIDB): -

Table 4: Cost data for aggregates in 2019 (CIDB, 2019)

Month \ States Johor Penang Sarawak Selangor

Jan 38.33 35.00 40.00 36.33
Feb 38.33 35.00 40.00 36.33
Mar 38.33 35.00 40.00 36.33
Apr 38.33 35.00 40.00 36.33
May 38.33 35.00 40.00 36.33
June 38.33 35.00 40.00 36.33
July 38.33 35.00 40.00 36.33
Aug 38.33 35.00 40.00 36.33
Sept 38.33 35.00 40.00 36.33
Oct 38.33 35.00 40.00 36.33
Nov 38.33 35.00 40.00 36.33
Dec 38.33 35.00 40.00 36.33

Table 5: Cost data for glass in 2019 (CIDB, 2019)

Month\ States Johor Penang Sarawak Selangor

Jan 80.83 78.33 82.00 78.50
Feb 80.83 78.33 82.00 78.50
Mar 80.83 78.33 82.00 78.50
Apr 80.83 78.33 82.00 78.50
May 80.83 78.33 82.00 78.50
June 80.83 78.33 82.00 78.50
July 80.83 78.33 82.00 78.50
Aug 80.83 78.33 82.00 78.83
Sept 79.17 78.33 82.00 78.83
Oct 79.17 78.33 82.00 78.83
Nov 77.83 78.33 82.00 78.17
Dec 77.83 78.33 82.00 78.17

15
 Table 6: Cost data for sand in 2019 (CIDB, 2019)

Month\ States Johor Penang Sarawak Selangor

Jan 40.33 36.33 44.00 40.67
Feb 40.33 36.33 44.00 40.67
Mar 40.33 36.33 44.00 40.67
Apr 40.33 36.33 44.00 40.67
May 40.33 36.33 44.00 40.67
June 40.33 36.33 44.00 40.67
July 40.33 36.33 44.00 40.67
Aug 40.33 36.33 44.00 40.67
Sept 40.33 36.33 44.00 40.67
Oct 40.33 36.33 44.00 40.67
Nov 40.33 36.33 44.00 40.67
Dec 40.33 36.33 44.00 40.67

Table 7: Cost data for cement in 2019 (CIDB, 2019)

Month\ States Johor Penang Sarawak Selangor

Jan 12.00 12.17 19.00 12.00
Feb 12.00 12.17 19.00 12.00
Mar 12.50 12.67 19.67 12.50
Apr 12.50 12.67 19.67 12.50
May 12.50 12.67 19.67 12.50
June 12.50 12.67 19.67 12.50
July 12.50 12.67 19.67 12.50
Aug 12.50 13.67 19.67 12.50
Sept 13.67 14.00 20.67 13.50
Oct 14.67 15.00 21.67 14.50
Nov 14.67 14.00 21.00 14.17
Dec 14.67 14.00 20.00 14.17

16
 Table 8: Cost data for plywood in 2019 (CIDB, 2019)

Month\ States Johor Penang Sarawak Selangor

Jan 18.50 19.40 19.51 18.61
Feb 18.50 19.40 19.51 18.61
Mar 18.50 19.40 19.51 18.61
Apr 18.50 19.40 19.51 18.61
May 18.50 19.40 19.51 18.61
June 18.50 19.40 19.51 18.61
July 18.50 19.40 19.51 18.61
Aug 18.50 19.40 19.51 18.61
Sept 18.50 19.40 19.51 18.61
Oct 18.50 19.40 19.51 18.61
Nov 18.50 19.40 19.51 18.61
Dec 18.50 19.40 19.51 18.61

Table 9: Cost data for clay bricks in 2019 (CIDB, 2019)

Month\ States Johor Penang Sarawak Selangor

Jan 54.00 50.40 60.00 48.00
Feb 54.00 50.40 60.00 48.00
Mar 54.00 50.40 60.00 48.00
Apr 54.00 50.40 60.00 48.00
May 54.00 49.20 60.00 48.00
June 54.00 49.20 60.00 48.00
July 54.00 49.20 60.00 48.00
Aug 54.00 49.20 60.00 48.00
Sept 54.00 49.20 60.00 48.00
Oct 55.20 49.20 63.60 50.40
Nov 55.20 49.20 63.60 50.40
Dec 55.20 49.20 63.60 50.40

17
3.3.3 Data Collected from Literature (Arcadis): -

Table 10: Cost data for aggregate in 2019 (Arcadis, 2020)

Month\ States Johor Penang Sarawak Selangor

Jan - - 31.17 33.35
Feb - - 31.17 33.35
Mar - - 31.17 33.35
Apr - - 31.81 33.35
May - - 30.21 33.35
June - - 31.17 33.35
July - - 31.17 33.35
Aug - - 31.17 33.32
Sept - - 31.17 32.72
Oct - - 31.17 32.59
Nov - - - -
Dec - - - -

Table 11: Cost data for glass in 2019 (Arcadis, 2020)

Month\ States Johor Penang Sarawak Selangor

Jan - - - 100.00
Feb - - - 101.20
Mar - - - 101.20
Apr - - - 101.20
May - - - 101.20
June - - - 101.20
July - - - 101.20
Aug - - - 101.20
Sept - - - 101.20
Oct - - - 101.20
Nov - - - -
Dec - - - -

18
 Table 12: Cost data for sand in 2019 (Arcadis, 2020)

Month\ States Johor Penang Sarawak Selangor

Jan - - 41.50 49.49
Feb - - 43.00 49.49
Mar - - 43.00 51.69
Apr - - 43.50 51.69
May - - 46.00 51.69
June - - 46.00 51.69
July - - 46.00 51.69
Aug - - 46.00 51.69
Sept - - 46.00 51.69
Oct - - 45.00 51.69
Nov - - - -
Dec - - - -

Table 13: Cost data for cement in 2019 (Arcadis, 2020)

Month\ States Johor Penang Sarawak Selangor

Jan - - 19.18 17.39
Feb - - 19.18 17.25
Mar - - 19.18 17.13
Apr - - 19.18 17.15
May - - 19.18 17.15
June - - 19.18 17.14
July - - 19.18 17.20
Aug - - 19.18 17.25
Sept - - 19.18 17.30
Oct - - 19.18 17.32
Nov - - - -
Dec - - - -

19
3.3.4 Analysis of the data collected: -

Basic Material Prices in 2019 (myN3C)

90
80
70
60
50
Rate

40
30
20
10
0
Aggregate Glass Sand Cement Plywood Clay Bricks
Material

Johor Penang Sarawak Selangor

Figure 3: Mean of the cost data for material prices in 2019 according to myN3C

Figure 3 shows the data for construction material prices in 2019 according to data from
myN3C. In 2019, Sarawak reported the highest price of aggregates, which was RM40.00,
followed by Johor which was RM38.33, Selangor with RM36.33 and Penang with RM35.00.
The highest price for glass was also from Sarawak which was RM82.00, followed by Johor
with RM80.05, Selangor RM78.53 and Penang RM 78.33. Next is sand, the highest price was
from Sarawak which was RM 44.00, Selangor with RM 40.67, Johor with 40.33 and Penang
RM36.33. For cement, the highest price was from Sarawak which was RM19.95, Penang with
RM13.20 Johor with RM13.06, Selangor with RM 12.95, Johor with RM13.06 and Selangor
with RM 12.95. For plywood, Sarawak had the most expensive price at RM 19.51, followed by
Penang at RM 19.40, Selangor RM 18.61 and Johor RM 18.50. and the last one which is
bricks, the highest price was from Sarawak at RM 60.90, Johor at RM 54.30, Penang at
RM49.60 and Selangor at RM 48.60. From this data, it is confirmed that Sarawak has the
highest price for most of the materials above while Penang has the lowest.

20
 Basic Material Prices in 2019 (Arcadis)
120

100

80
Rate

60

40

20

0
Aggregate Glass Sand Cement
Sarawak 31.14 44.6 19.18
Selangor 33.21 101.08 51.25 17.23
Material

Sarawak Selangor

Figure 4: Mean of the cost data for material prices in 2019 according to Arcadis

Figure 4 indicates the data for the mean of construction material prices in 2019
according to Arcadis. According to Arcadis (2020), Selangor reported a higher price for
aggregates which was RM 33.21 while Sarawak was RM31.14. For glass, only the data for
Selangor was provided which was RM101.08. For sand, Selangor had a higher price which
was RM51.25 while Sarawak was RM44.60. Next is cement, Sarawak had higher price of the
material which was reported at RM19.18 while Selangor was at RM17.23. The data for
plywood and bricks was not available in Arcadis cost data.

21
4. Construction Cost Database

The data used in this database were the result of the analysis from the previous collected data
through primary and secondary sources. It is the mean obtained based on the data collected.
These data are applicable for the usage of construction cost in the year 2020.

Table 16: Construction cost database for the year 2020

LOCATION
Klang Valley Penang Sarawak Johor
ITEM

MATERIAL (RM)

1 MT : 1000KG , 1 BAG : 50KG

Aggregates 34.91/MT 35.00/MT 35.97/MT 38.33/MT

Glass 88.78/M2 78.33/M2 82.00/M2 73.57/M2
Sand 45.48/MT 36.33/MT 44.27/MT 40.33/MT
Cement 16.38/BAG 13.20/BAG 19.60/BAG 13.06/BAG
Plywood 18.61/M2 19.40/M2 19.51/M2 18.50/M2
Clay Bricks 48.60/M2 49.60/M2 60.90/M2 54.30/M2

RESIDENTIAL BUILDING (RM)

Detached Houses
(Mass Housing) 2,927.67/M2 2755.00/M2 1945.00/M2 3100.00/M2
Detached Houses
(High End)
3,699.67/M2 2925.00/M2 4000.00/M2 3805.00/M2

Terraced Houses 1,520.33/M2 1320.00/M2 1320.00/M2 1480.00/M2

Average Standard
Apartments, High 1,848.33/M2 1755.00/M2 1735.00/M2 2150.00/M2
Rise
Luxury Apartments,
High Rise
3,263.00/M2 3160.00/M2 3185.00/M2 3950.00/M2

Low Cost Housing 350.50/M2 595.00/M2 795.00/M2 695.00/M2

Low Cost Flats, Low
Rise (<6 Levels)
1065.00/M2 805.00/M2 1020.00/M2 965.00/M2
Low Cost Flats, High
Rise 1,241.33/M2 995.00/M2 1160.00/M2 1045.00/M2
(<15 Levels)

22
4.1 Construction Cost Database Manual

The basic principle of using the cost database is by multiplying the quantity obtained through
measurement or given by the client with the cost shown in the previous database.

Formula: -

A = Quantity (m/m2/m3/kg…),
B = Cost as shown in the database
Cost =AxB

4.1.1 Cost for residential building

Example for Detached houses (mass housing) (GFA = 240m2),

Cost (Klang Valley) = GFA x Cost/m2

= 240m2 x RM 2,927.67/m2

= RM 731,917.50

Klang Valley: RM 731,917.50

Penang: RM 688,750.00

Sarawak: RM 486,250.00

Johor: RM 775,000.00

Example for Detached houses (high end) (GFA = 500m2),

Cost (Klang Valley) = GFA x Cost/m2

= 500m2 x RM 3,699.67/m2

= RM 1,849,835.00

Klang Valley: RM 1,849,835.00

Penang: RM 1,462,500.00

Sarawak: RM 2,000,000.00

Johor: RM 1,902,500.00

23
Example for Terraced houses (200m2)

Cost (Klang Valley) = GFA x Cost/m2

= 200m2 x RM 1,520.33/m2

= RM 304,066.00

Klang Valley: RM 304,066.00

Penang: RM 264,000.00

Sarawak: RM 264,000.00

Johor: RM 296,000.00

Example for Average standard apartments, high rise (100m2)

Cost (Klang Valley) = GFA x Cost/m2

= 100m2 x RM 1,848.33/m2

= RM 184,833.00

Klang Valley: RM 184,833.00

Penang: RM 175,500.00

Sarawak: RM 173,500.00

Johor: RM 215,000.00

Example for Luxury apartments, high rise (225m2)

Cost (Klang Valley) = GFA x Cost/m2

= 225m2 x RM 3,263.00/m2

= RM 734,175.00

Klang Valley: RM 734,175.00

Penang: RM 711,000.00

Sarawak: RM 716,625.00

Johor: RM 888,750.00

24
Example for Low cost housing (70m2)

Cost (Klang Valley) = GFA x Cost/m2

= 70m2 x RM 350.50/m2

= RM 24,535.00

Klang Valley: RM 24,535.00

Penang: RM 41,650.00

Sarawak: RM 55,650.00

Johor: RM 48,650.00

Example for Low cost flats, low rise (<6 levels) (70m2)

Cost (Klang Valley) = GFA x Cost/m2

= 70m2 x RM 1065.00/m2

= RM 74,550.00

Klang Valley: RM 74,550.00

Penang: RM 56,350.00

Sarawak: RM 71,400.00

Johor: RM 67,550.00

Example for Low cost flats, high rise (<15 levels) (70m2)

Cost (Klang Valley) = GFA x Cost/m2

= 70m2 x RM 1241.33/m2

= RM 86,893.10

Klang Valley: RM 86,893.10

Penang: RM 69,650.00

Sarawak: RM 81,200.00

Johor: RM 73,150.00

25
4.1.2 Cost for material

Example for Aggregates (100kg)

Cost (Johor) = 100kg x Cost/kg

= 100kg x RM 38.33/MT ÷ 1000kg/MT

= RM 3.83

Klang Valley: RM 3.49

Penang: RM 3.50

Sarawak: RM 3.60

Johor: RM 3.83

Example for Glass (50m2)

Cost (Johor) = 50m2 x Cost/m2

= 50m2 x RM 73.57/m2

= RM 3,678.50

Klang Valley: RM 4,439.00

Penang: RM 3,916.50

Sarawak: RM 4,100.00

Johor: RM 3,678.50

Example for Sand (300kg)

Cost (Johor) = 300kg x Cost/kg

= 300kg x RM 40.33/MT ÷ 1000kg/MT

= RM 12.10

Klang Valley: RM 13.64

Penang: RM 10.90

Sarawak: RM 13.28

Johor: RM 12.10

26
Example for Cement (1000kg)

Note: 1 bag is worth 50kg of cement

Cost (Johor) = 1000kg x RM 13.06/bag ÷ 50kg/bag

= RM 261.20

Klang Valley: RM 327.60

Penang: RM 264.00

Sarawak: RM 392.00

Johor: RM 261.20

Example for Plywood (80M2)

Cost (Johor) = 80m2 x Cost/m2

= 80m2 x RM 18.50/m2

= RM 1,480.00

Klang Valley: RM 1,488.80

Penang: RM 1,552.00

Sarawak: RM 1,560.80

Johor: RM 1,480.00

Example for Bricks (60M2)

Cost (Johor) = 60m2 x Cost/m2

= 60m2 x RM 54.30/m2

= RM 8,475.00

Klang Valley: RM 2,916.00

Penang: RM 2,976.00

Sarawak: RM 3,654.00

Johor: RM 3,258.00

27
5. Conclusion

Throughout the study, it is proven that construction cost data is really beneficial to the
construction industry. A lot of benefits can be obtained by the construction stakeholders
with the presence of construction cost data. It significantly improves the productivity of the
industry especially during the early stage of a construction project. Allowing estimation to
be done without proper or enough information regarding the project surely helps a lot since
most of the clients usually does not really provide the consultant with enough information
at the beginning of a project. Furthermore, it allows the client to actually monitor the cost
of their project with a reliable estimation of the actual cost. Contractors won’t be able to
easily manipulate the price of materials, plant and machineries and else. In other word,
the usage of construction cost data in the industry may shape the industry into a far more
transparent industry than it currently is. Nonetheless, it must be constantly being updated
from time to time in order to ensure its precision and reliability in the future. Moreover,
there are other factors or aspects that do influence the precision and reliability of the cost
data such as the location, project size, duration and else. All these must be taken into
consideration before applying the cost data for a construction project in order to obtain a
precise and reliable estimation of the cost. Last but not least, construction cost data can
be considered as one of the most important tool in the construction industry and it should
be utilized efficiently amongst the construction player in order to shape a more systematic
and transparent industry in the future.

6. Recommendations and Improvements

Our recommendations to improve the current construction cost data: -

I. Make sure to keep the database update from time to time in ensuring the precision
and reliability of the data to be used.
II. A more comprehensive and nationwide database may be more useful for the
industry.
III. The industry needs to provide more sources of construction cost data in the future
in order to obtain a more accurate cost estimation.

28
7. References

Ahmad, K.H. (2011). Construction Economics. 2nd Edition. Kuala Lumpur, Malaysia: Pearson
Malaysia Sdn Bhd

Ayed, A. (1999), Parametric Cost Estimating of Highway Projects Using Neural Networks,
National Library of Canada, Canada.

Jiang, Q. (2020). Estimation of construction project building cost by back-propagation neural

network. Journal of Engineering Design and Technology. 18(3), 601-609.
10.1108/JEDT-08-2019-0195

Ma, Z.L., Liu, Z. and Wei, Z.H. (2016), Formalized representation of specifications for
construction cost estimation by using ontology, Computer-Aided Civil and
Infrastructure Engineering, 3(1), 4-17.

Arcadis Singapore Pte Ltd. (2020). Construction Cost Handbook Singapore 2020.

Arcadis (Malaysia) Sdn Bhd (2020). Construction Cost Handbook Malaysia 2020.

S. Fuller. (2010). Life-cycle cost analysis (LCCA). Whole building design guide.

C. Minh-Tu, C. Min-Yuan, Yu-Wei. (2015). Hybrid computational model for forecasting

Taiwan construction cost index. J. Constr. Eng. Manage. ASCE, 141(4), pp.1-11

Trefor, W.P. (1994). Predicting changes in predicting changes in construction cost indexes
using neural networks, J. Constr. Eng. Manage. ASCE 120 (2), 306–320.

Elfahham, Y. (2019). Estimation and prediction of construction cost index using neural
networks, time series, and regression, Alexandria Engineering Journal. 58, 499-506.
10.1016/j.aej.2019.05.002

Department of Statistics Malaysia, (2016). Special Release 2 (For Building and Structural
Works) May 2016.

Feng, W., Zhu, W. and Zhou, Y. (2010), “The application of genetic algorithm and neural
network in construction cost estimate”, Advanced Materials Research, Vol. 756, pp.
3194-3198.

CIDB (2019). Building Materials Price (BMP) 2019. Received from:

http://myn3c.cidb.gov.my/cidb_n3c/output/a_web_bmp_details.php?4#

29
8. Respondents Details

Kamalruzaman Bin Kamaluddin. (9th May 2020). Developer at Tahap Teknik Sdn Bhd.
26 Years Working Experience

Hussaini Bin Senusi (9th May 2020). Managing Director at Pembinaan Hamid Abd. Rahman
Sdn Bhd. 28 Years Working Experience

Sr Maslinda Binti Hussin (9th May 2020). Director at MF Associates Sdn Bhd. 28 Years
Working Experience

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