Computerization of the accounting and job costing system in the construction industry : Inhibitors and facilitators

• Main Author: Ching, Hui Leng
• Other Authors: Lee Kenny Kwai Fong
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Business
• Online Access: http://hdl.handle.net/10356/64329
• Institution: Nanyang Technological University

Information technology adoption in Singapore is growing rapidly. However, the level of computerization in the construction industry lags behind the other economic sectors (Chapter Two). In pursuit of this phenomenon, the report examines the current status of technology in the building contractor sector of this industry, focusing on two aspects: accounting and job-costing systems. The research methodology adopted involves performing a literature review of the contemporary literature on generic facilitators and inhibitors of computerization to propose a preliminary framework of facilitators and inhibitors, and to develop a research instrument for investigating the construction industry sector of choice. Through interviews and further literature review, factors that prohibit the growth of information technology are explored to arrive at a final framework of facilitators and inhibitors (Chapter Three and Four). Some of these major factors are the unique characteristics of construction accounting, rapid technological change and organizational resistance. The report also covers the facilitators and the long term benefits of computerization. To illustrate these findings, three local construction companies which have computerized are studied and presented as mini cases. The results have revealed that these companies have overcome various inhibitors similar to our findings, and the benefits reaped have put them in a more competitive and efficient position. The benefits of computerization would have been higher when some of the controllable inhibitors are overcome. Recommendations to overcome these factors are presented. For example, the high cost of computerization can be subsidized by the government and user resistance can be reduced through proper management of change. And a systematic approach to computerization is also presented to aid contractors who are interested in computerizing their accounting and job-costing systems.