Financial Considerations of Suppliers, Contractors, And Homeowners in Constructing Decent Residential House Amidst Rising Cost of Materials: A Mixed-Method Study

Abstract

The purpose of this study was to determine the financial considerations of homeowners, suppliers, and contractors on constructing decent residential house amidst rising costs. This study utilized mixed-method research design. Initially, a semi-structured interview was initiated to determine the financial considerations. Afterwards, a survey was used to collect their ranking of financial considerations. There were eight identified financial consideration as manifested from the thematic analysis. Homeowners listed cost contingency as their primary consideration. For supplier it is material contingency and use of promotions and discounts. While outsourcing was the main considerations for contractors. Results further revealed that bulk buying was least considered by homeowner and debt financing was least considered by both supplier and contractor. When test of difference was taken into account using Kruskall-Wallis’ test, four (i.e., cost contingency, debt financing, outsourcing, and bulk buying) were identified to have statistically significant difference. The study was able to identify the financial considerations of the three stakeholders and the way they considered these. Future works should explore other financial consideration that might not considered in this study. At the same time, identifying and looking into financial considerations with types of buildings is worth exploring.