New Zealand Building Project Cost and Its Influential Factors: A Structural Equation Modelling Approach

Table 3

Measurement model results and reliability test results.

Variables	Abbr.	Standard coefficients	Cronbach’s alpha
Project characteristics factor	PCF		0.692
Site accessibility	PCF1	0.876
Project complexity	PCF2	0.905
Supply chain	PCF3	0.889
Contract selection	PCF4	0.008
Novel technology	PCF5	0.039
Key stakeholders’ perspectives	KSP		0.787
Clients	KSP1	0.898
Consultants	KSP2	0.909
Contractors	KSP3	0.876
Building officers	KSP4	0.683
Suppliers	KSP5	0.074
Market and industry conditions	MIC		0.745
Resource markets	MIC1	0.899
Competition level	MIC2	0.908
Market properties	MIC3	0.896
Boom and bust cycle	MIC4	0.897
Relationship of supply and demand	MIC5	0.872
Investment tendency and confidence	MIC6	0.153
House sell and rental prices	MIC7	0.142
Regulatory regime	RR		0.813
Building codes	RR1	0.881
Health and safety regulations	RR2	0.883
Political policy	RR3	0.871
Financial regulations	RR4	0.851
Construction contract act	RR5	0.879
Macroeconomic dynamics	MED		0.745
Global economic trends	MED1	0.778
Global political stability	MED2	0.799
Natural forces	MED3	0.816
Employment	MED4	0.689
Population	MED5	0.693
Labor cost	MED6	0.732
Economic inflation	MED7	0.070
Exchange rate	MED8	0.111
Project cost	PC		0.756
Capital construction cost	PC1	0.772
Associated capital cost	PC2	0.684
Client’s other cost	PC3	0.715

The removed measurement indicators in the final model.