Many reasons have led construction organizations to venture into international projects in the past years. Despite offering opportunities for business expansion, risks from foreign exchange (FOREX) fluctuations are some of the challenges that need addressing. These fluctuations have affected the construction business at company level and project levels. Most of the impacts are related to financial issues. Thus, coordinating strategic plans to deal and mitigate the impacts of FOREX fluctuations is crucial. A qualitative research was conducted in response to this. Data collection for this research involved interviewing 14 respondents who represented Malaysian construction organizations and actively involves in international construction projects. The respondents ranged from Chief Executive Officer (CEO), Chief Financial Officer (CFO), financial and project managers. NVivo Version 11.0 was used in managing the transcribed interview data. The data were analyzed via content analysis. Results revealed that FOREX fluctuations give impacts on the financial performance of construction businesses. This study also suggested mitigation actions that could be implemented to manage these issues. The most important finding is that Financial Capability (FC) is relevant and essential to overcome those issues. Finally, a framework of FC in managing impacts of FOREX fluctuations on construction business is proposed.
Full Text (PDF)