The Relevance of the Consumer Decision-making Theory to Construction Projects in Malaysia

Joshua Allan Netto, Valliappan Raju


The use of standard form contracts is a popular option in the Malaysian construction environment due to the resources and experience required to produce a customized contract, and the reassurance resulting from the “tried and tested” clauses found in standard form contracts. The use of the consumer decision-making theory is relevant in explaining the intentions of the client and employer organizations in the transfer risks to the contractor during the operational stages of the project, in the conventional client, consultant, and contractor arrangement. The isolating of the consultant in the competitive bidding process and the design and build strategy also reveals the objective of the employer in pursuing a single source of accountability on such projects. This theory also is useful in explaining the contractor’s assessing of internal resources and the desirability of the project against the acceptance of the risk and responsibilities during evaluation of alternatives before the purchase decision, and the defense mechanisms against the employers and consultants post-purchase behavior in the challenging project environment.

Aus. J. Bus. Sco S. & IT. Vol 4(2), April 2018, P 84-93


Project Management; Construction; Marketing; Consumer Decision-making; Purchase Behavior; Contracting

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