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International Journal of Engineering & Technology, 7 (4.35) (2018) 299-306 International Journal of Engineering & Technology Website: www.sciencepubco.com/index.php/IJET Research paper A Review of Structural Equation Model for Construction Delay Study Mohd Zakwan Ramli 1 *, Marlinda Abdul Malek 2 , Mohamad Zaki Muda 3 , Zulkhairi Abd Talib 4 , Nor Syahirah Azman 5 , Nur Farah Syazana Mohamad Fu’ad 6 , Mohd Hafiz Zawawi 7 , and Herda Yati Katman 8 1 Department of Civil Engineering, College of Engineering, Universiti Tenaga Nasional, Kajang, Selangor, Malaysia. 2 Institute of Energy Policy Research (IEPRe), Universiti Tenaga Nasional, Kajang, Selangor, Malaysia. 3 Project Execution Department, Energy Ventures Division, Tenaga Nasional Berhad, Petaling Jaya, Selangor, Malaysia. *Corresponding author E-mail: zakwan@uniten.edu.my Abstract Structural Equation Modelling (SEM) has been widely used in science social area compared to construction engineering and management field especially in area of delay construction. SEM is a second generation multivariate analysis that has an advance features compare to first generations of analysis tools. First generation techniques suffer with some assumptions such as error measurement is neglected, only observed variable allowed, only for simple model and other limitations. In construction delay study, comprehensive and complex analysis which involves hidden variables need to be considered to get precise results. Therefore, the main objective of this paper is to review the importance of applying SEM for construction delay study. Various papers which were taken from construction delay and construction management studies has been reviewed to observe the suitability of SEM for construction delay study. Outcome of this review reveals that SEM can include latent variable in the analysis model and consider of error measurement as integral part of the model as well as simultaneously analyse theory and measurement in a structural model while it is unobtainable for first generation techniques. This review proves that SEM can be an appropriate analysis tool for construction delay study. Keywords: Construction delay; construction management; multivariate analysis; error measurement; Structural Equation Modelling (SEM) 1. Introduction Delay is known as a time disruption during the construction project. Interference during projects may prolong the project duration and exceed the specified date. According to [1], delay factors are critical factors that lead to cost overruns. Furthermore, claims, disputes, and additional costs are the consequences of the project delays [2]. In order to achieve a successful project, it is crucial to identify the factors that contribute to project delays. Therefore, delay analysis is required, so that the delay issues can be resolved before it occurs or it will be beneficial for another project in future. The construction sector has a pivotal role in economic growth in Malaysia. Results from the earlier study demonstrate a strong and consistent association between construction sector and economic growth in Malaysia [3]. Improvement of the economic sector in the country relies on the development of infrastructure. Poor infrastructures are the biggest challenge for one country to expand which it may lead to the unwillingness of investor in performing their business activity. Narrow roads, lack of transportation, poor water quality, and electricity problems are amongst of the issues that require attention in order to enhance the living standard of society and improve healthy lifestyle for the sake of the country and worldwide. Nevertheless, a large-scale infrastructure is normally extremely complex. Thus, the government has invested a big amount of money on infrastructure projects. Part of infrastructure projects is including railway, roads/bridges, ports, hydropower plants, and water/wastewater treatment plants. However, major infrastructure plan always has an obstacle and issues that raised such as delays in project completion. There are several mega construction projects that have been developed in Malaysia but suffered from delay problems. Large infrastructure projects that suffer from delays are common but without proper management and supervision, it will cause cost overrun. Huge losses have been reported during a construction of Kuala Lumpur’s airport terminal, KLIA2 and eventually faces with delay problems [4]. Due to modifications terminal concept during construction, ultimately it costs RM4 billion rather than RM1.7 billion at the initial project as planned [5]. Another mega project in the country, which is the project of a hydropower plant in Bakun, Sarawak also experienced huge delay and cost overrun [6]. The longest bridge in Southeast Asia and also known as the second bridge in Pulau Pinang of Malaysia was scheduled to be completed in 2011 but the bridge only available for people to use in 2013 [7]. The bridge project was suffered from two years delays time and the cost had increased about RM1.5 million because of location issues, increasing of material cost and other unexpected events [8][9]. Schedule control is the main key to a successful project [10]. Time overruns give negative impacts on the project and all the involved construction parties. The overall project performance will decrease and competency of involved workers and professionals will be doubtful. According to current trend, there is an increasing demand of researchers in implementing SEM for various study area. SEM is a powerful tool in analysing multivariate analysis especially for second generation technique. Even though there were positive increment number of construction management study using SEM, there were limited study that applied SEM for