Construction machinery hire rates deviation in Malaysia: an inflation rate effect analysis
Keywords:percentage deviation, inflation rate, correlation coefficient, construction industry, machinery hite rates
Machinery has been used in the construction industry in both small and large scale projects for a long time. Machinery is one of the main components of any construction projects and rates deviation within the hiring of the machinery can result in cost overrun of the project. To deal with the issue of deviating the machinery hire rates in the construction industry, this study has been conducted. The study accesses the machinery hire rates and aims to investigate the percentage deviation from 2013 to 2018, where statistical analysis was performed to identify the influence of the inflation rate in deviating the machinery hire which results in cost overrun. The analysis shows that the inflation rate possesses a weak relationship with nine of the machinery hire rates, where five shows a moderate relationship. It is therefore recommended to observe other factors which deviate the machinery hire rates within the construction industry.
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