The impacts of FOREX fluctuations on international construction projects

Abstract

The international construction project is a highly valuable market project and many of the contractors would like to be participate. This is because they are misled with the exchange rate (money) and instantly attracted with the profit they assumed will be gained after the project is completed. In fact, without noticing that they will be affected with the FOREX's fluctuations which might complicate the project further. In addition, many new vendors nowadays will try their luck in construction business without making a good judgement on the risks. So, the objective of this study is to identify the impacts of FOREX fluctuations on those perspectives at international level. This study also uses quantitative method through questionnaire survey that were distributed randomly, and the result obtained were from top management and non-top management in construction hierarchy with different level of experiences. The collected data were analysed by using two methods which are Statistical Package for Social Science (SPSS) and Microsoft Excel. The SPSS software is used to process the regression analysis for the impacts of FOREX data of the questionnaire. The Relative Importance Index then is applied to run the data for capability and mitigation actions in determining the ranking of priorities. Overall, the impacts of FOREX fluctuation on international construction projects have been identified with regards to three mechanisms which are business management, technical and financial. These outputs are useful as a guideline for international construction project companies when they are venturing into this challenging market especially in terms of managing/expediting quality, completion period, and optimising cost of the projects. © Published under licence by IOP Publishing Ltd.