Critical Success for Kelantinies Constraction Operate Outside Kelantan State in Malaysia

The Malaysia construction industry has been experiencing boom and bust conditions in the past few decades. For example, the construction industry suffered three business cycle downturns in 1976-1978, 1984-1988 and 1997-1999. Furthermore in 1998 the industry contracted sharply by 23 percent and finally moderated to a further contraction of 5.6% percent in 1999. However, the industry has shown a small growth of 1 percent in 2000. With the higher public and private investment especially in infrastructure projects, education, health, and social infrastructure, the construction industry is expected to have grown bye 5 percent in year 2001 and forecasted to grow by 4.3 percent in 2002. With the expected growth in the industry, this will enhance the number of contracting firm in the industry. The contracting firm, which is also known as the ‘builder’, is defined as a supplier of services whose scope of work and engagement is determined by the requirements of the client (user of services) formalized in the form of a contract document. The client engages a contractor through a tendering process, to construct and to complete the project in accordance with certain design, specification and period of completion at an agreed price. Despite the Malaysian Economics growth, Kelantan still lags behind because of political reason. Governed by an avowedly Islamic party, party selslam Malaysia (PAS), the past has been unable to attract vital foreign direct investment. This has led to poor project development in the state compared to other states in Malaysia. In order to succeed, Kelantanies contractor are driven to get jobs outside Kalantan. The most popular state is Selangor to the intense development demand.