Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
Influential Factors ◽  
Project Design ◽  
Content Type ◽  
Factors Affecting ◽  
Public Construction

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.

The effects of cost-based contractor selection on construction project performance

2015 ◽  
Vol 20 (3) ◽  
pp. 235-251 ◽  
Author(s):  
Olugbenga Jide Olaniran
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
The Body ◽  
Contractor Selection ◽  
Content Type ◽  
Body Of Knowledge ◽  
The Impact ◽  
Practical Implications

Purpose – This paper aims to present the outcome of a study conducted on the impact that cost-based contractor selection (CBCS) might have on construction project performance. Several criteria are normally used to select construction contractors, competitiveness of the quoted prices of the prospective contractors is one such important criterion. However, choosing contractors solely on the basis of the quoted price may cause poor performance in the construction project. Design/methodology/approach – A quantitative approach was adopted. A critical review of the literature was conducted to develop 50 survey questions relating to the problems that CBCS might have on construction project performance. Findings – Analysis of close data obtained from the survey of construction experts showed the nature of project performance problems associated with the CBCS to be project time delays and non-compliance with construction standards. The major reason they occurred was found to be the reduced profit margin for contractors. Research limitations/implications – The research sample size is small and restricted to construction professionals in Brunei. Practical implications – The study findings present updated information to construction professionals about the inherent impacts of choosing contractors based on cost. Furthermore, this study enhances the approach of selecting contractors within the construction industry. Originality/value – The study made strong and unique arguments about the problems associated with choosing construction contractors based on cost. This study contributes to the body of knowledge relevant to the management of construction projects.

Impact of COVID-19 on project performance in the UAE construction industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Sami Ur Rehman ◽  
Muhammad Tariq Shafiq ◽  
Muneeb Afzal
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Health And Safety ◽  
Project Performance ◽  
Content Type ◽  
Government Institutions ◽  
Depth Analysis ◽  
The Government ◽  
The Impact

Purpose The coronavirus disease 2019 (COVID-19) pandemic has affected the global economy and, thus, the global construction industry. This paper aims to study the impact of COVID-19 on construction project performance in the United Arab Emirates (UAE). Design/methodology/approach This study adopted a qualitative and exploratory approach to investigate the impact of COVID-19 and its policies on project performance in the UAE construction industry in critical areas of the project management body of knowledge (e.g. schedule, cost, resources and contracts). Semi-structured interview questions were asked from ten construction professional to obtain valuable insights into the pandemic’s effects on the UAE construction industry and the effectiveness of policies implemented to rectify the damage and identify the industry’s new normal. Findings The findings indicate that the construction industry faced several challenges such as schedule delays, disrupted cashflows, delayed permits, approvals and inspections, travel restrictions, serious health and safety concerns, material and equipment shortages, among others which hindered the timely delivery of construction projects. It also indicates that efforts made by the government institutions and the construction industry of the UAE such as economic support programs, digitization of processes, fee and fine waivers, health facilities, among other statutory relaxations proved effective in supporting the construction industry against the adverse effects of the pandemic. Research limitations/implications The research findings are limited to the literature review and ten semi-structured interviews seeking an expert’s opinion from industry professionals working in the UAE construction industry. The research team did not get access to project documents, contracts and project progress reports which may be required to validate the interview findings, and to perform an in-depth analysis quantifying the impact of COVID 19 on construction projects performance, which is a limitation of this research. Practical implications The implication is that, owing to the imposed lockdowns and strict precautionary measures to curb the rapid spread of the pandemic, smooth execution of the construction project across the country was affected. The government institutions and stakeholders of the construction projects introduced and implemented various techniques and solutions which effectively handled the implications of the COVID-19 pandemic on the construction industry of the UAE. Originality/value This study has identified the challenges faced by the construction industry of the UAE in the context of the management of project schedule, project cost, construction contracts, health and safety of construction employees and other related aspects of the construction projects. This study also identified the techniques and solutions adopted by various public and private institutions of the country and their implications on construction projects. Therefore, this study provides guidelines for policymakers and future research studies alike.

Exploring the influence of religious elements on performance factors in developing countries: a case of the Ghanaian construction industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ernest Kissi ◽  
Kofi Agyekum ◽  
Theophilus Adjei-Kumi ◽  
Debrah Caleb ◽  
Ekow Donkor Micheal
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
The Body ◽  
Cost Performance ◽  
Content Type ◽  
Performance Factors ◽  
Schedule Performance ◽  
Religious Elements

PurposeReligiousness is evident in every aspect of life, and its impact on construction project performance is undeniable. However, little has been done to fully understand the influences one's religiosity has on performance factors. This paper aims to explore the influence of religious elements on performance factors in the Ghanaian construction industry (GCI).Design/methodology/approachUsing a desk survey and closed-ended questionnaire, data were obtained from the three religious' bodies (Christianity, Islamic and Traditionalist) in Ghana. The analysis of the collected data was done using mean score ranking and regression analysis.FindingsIt was revealed that most of the religious bodies were aware of the presence of the seven factors identified for measuring construction project performance. The findings suggested that there was a significant and positive relationship between the religious elements (of all the three religions) and cost as well as schedule performance. Islam recorded the highest relationship in influencing public construction project performance relative to cost performances. Specifically, 1% increase in Islamic elements accounted for an 82.7% increase in cost performance. Traditionalists and the Christian religion had minimal significance in influencing cost performance. Furthermore, a 1% progress in Islamic elements accounted for a 45.8% increase in the schedule performance of construction projects and among construction professionals.Research limitations/implicationsThis study has provided better understanding of the religious views on project performance. This research has also provided pragmatic directions to project stakeholders to encourage religious groups to take critical look at the other performance factors that were seen not to be significant.Originality/valueThis paper represents a novel attempt to measure the influence of religious elements on project performance factors in the construction industry. A key contribution to the body of knowledge is that the study has proven that religious element has tendencies to influence cost performance and schedule performance in the construction industry.

Factors affecting tender price in the Ghanaian construction industry

2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Negative Influence ◽  
Positive Influence ◽  
The Body ◽  
Content Type ◽  
Factors Affecting ◽  
Practical Implications ◽  
Structured Questionnaire

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.

Identification of knowledge assets in construction projects and their impact on project performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harish Kumar Singla ◽  
Abhishek Shrivas ◽  
Ashu Sharma
Keyword(s):  
Human Capital ◽  
Construction Projects ◽  
Conceptual Models ◽  
Construction Project ◽  
Project Performance ◽  
Relational Capital ◽  
Knowledge Assets ◽  
Content Type ◽  
Structural Capital ◽  
Building Process

PurposeThe previous researchers have identified human capital, relational capital and structural capital as knowledge assets in knowledge-driven organizations. The current study is an attempt to identify and validate the knowledge assets in construction projects. The study also aims to understand the interrelation of these knowledge assets and their impact on project performance through the development of a conceptual model.Design/methodology/approachThe study is divided into three phases. In phase I, the constructs of “knowledge assets” and “project performance” in construction projects are identified using the exploratory factor analysis. In phase II, these constructs are validated using confirmatory factor analysis. Two separate surveys are conducted for phase I and phase II, respectively. In phase III, the authors develop two conceptual models based on the literature review and two construction project cases in India. The models examine the inter-relationship of knowledge assets and measures their impact on project performance. The models are empirically tested using the responses of the second survey through a structural equation model.FindingsThe study extracts four knowledge asset constructs and one performance construct which are named human capital, structural capital, relational capital, human capital capacity building process and project performance, respectively. The study finds that both the conceptual models are statistically excellent fit. The results of the models suggest that relational capital and structural capital have a direct positive impact on project performance, whereas human capital has an indirect effect on project performance mediated through relational capital, structural capital and human capital capacity building process.Research limitations/implicationsThe items for knowledge asset constructs and measurement of project performance are moderated by experts, working in construction projects in India, hence the process may contain subjective bias. Further, two construction project cases were selected by authors in the study that originate from India.Practical implicationsThe study has implications for the project executors (contractors) as well as for project owners. The contractors must maintain healthy relations with all the stakeholders in a project like a client, suppliers, architects, etc. They must develop systems that are people-friendly to avoid the problems of time and cost overruns in projects. The owners must also maintain healthy relations. This can result in a win-win situation for both parties and can lead to superior project performance.Originality/valueThe study develops and empirically tests two conceptual models that explain the interrelations of knowledge assets and how it benefits the construction project performance in India. Therefore, the generalization of the results is difficult; however, the results can be replicated in projects with similar settings.

Research on the Relational Governance of Construction Project Transaction

2013 ◽  
Vol 368-370 ◽  
pp. 1922-1926 ◽  
Author(s):  
Zu Song Cheng
Keyword(s):  
Social Environment ◽  
Construction Projects ◽  
Social Relationship ◽  
Construction Project ◽  
Project Performance ◽  
Influential Factors ◽  
Governance Mechanism ◽  
Relational Governance ◽  
Project Governance ◽  
Project Contract

Project contract is only one aspect of project governance. Even a perfect contract can not ensure the project performance. The specific characteristics of construction project transaction determines the traditional project governance mechanism that focus on contract alone can not make sure that the construction project goes well. In fact, since construction projects are inserted to certain social environment, the influence of social relationship on project performance draws increasing attention as the research on project governance goes further. The paper applies the idea of relational governance to construction project transaction governance aimed at its specific characteristics and analyses the influential factors of relational governance in construction project transaction from the stakeholders angle and its application exemplified by the partnering pattern.

scholarly journals Study of factors affecting the performance of construction projects in AEC industry

2020 ◽  
Vol 12 (1) ◽  
pp. 2275-2282
Author(s):  
Saurav Dixit
Keyword(s):  
Construction Industry ◽  
Financial Management ◽  
Construction Projects ◽  
Construction Project ◽  
Primary Data ◽  
Enabling Factors ◽  
Management Planning ◽  
Factors Affecting ◽  
Living Entity ◽  
Questionnaire Surveys

Abstract A construction project is like a living entity and requires the interconnection and coordination of several stakeholders and many of them have their objectives, which sometimes create a conflict of interest between the teams and within the teams. The success of any project is repeatable, and a set of attributes for the success of a construction project can be identified, requiring discipline and hard work. The construction sector is the engine of growth for a nation and supplies services and goods to other industries. The objective of the study is to analyse the enabling factors affecting the performance construction projects in Architecture Engineering and Construction industry. The methodology chosen for the study is to collect primary data from the Indian construction industry using structured questionnaire surveys. The collected data are analysed using reliability and factor analyses. The findings of the study provide the value of reliability, that is, Cronbach's alpha value of (0.86) of the data collected using a questionnaire survey. Furthermore, exploratory factor analysis produced five main significant factors based on covariance between the attributes and grouped into factors such as site management and coordination, leadership and financial management, planning, commitment, and coordination having a variance of 17.65, 11.8, 9.1, 8.5, and 7.5%, respectively. This article is the extended version of the paper accepted and presented at CCC2019.

scholarly journals Assessment of Causes and Effects of Variation on Construction Project Performance in South West Nigeria

2020 ◽  
pp. 629-641
Author(s):  
Esan Martins Taiwo ◽  
Folaranmi Kazeem Adekunle ◽  
Hassan H ◽  
Buari T. A
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Cost Overruns ◽  
South West ◽  
Training Professionals ◽  
Negative Impacts ◽  
Proactive Measures

The construction industry in Nigeria faces many problems, including the delay due to variations in project execution. This delay has been studied as a major setback in the Nigerian construction industry. In Nigeria, the construction industry's performance in terms of time has been observed to be poor. The objective of this study is to examine the variation of the construction project in order to determine the effect on the delivery of the project. The maximum performance of the project would be reached if the work always goes efficiently on time with the budget. The result of the variation is delay, cost overruns, quality defects and other negative impacts. The causes of variation were identified by a questionnaire survey for two higher education institutions. The results of the study identified the five main factors, including change of plan or scope, defective labour, customers' financial problems, unavailability of skills and desired profitability of the entrepreneur. In general, the study shows agreement among clients, consultants and contractors regarding the classification of the 20 factors that cause the variation. The results also reveal that factors related to clients are the main causes of variation, followed by factors related to contractors. An understanding of the causes and effects of the variation would be helpful in training professionals to assess the variation. In addition, the study would also help professionals take proactive measures to reduce the gaps on construction projects.

Construction project productivity evaluation framework with expanded system boundaries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wenting Zhan ◽  
Wei Pan ◽  
Le Chen
Keyword(s):  
Hong Kong ◽  
Case Studies ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Real Life ◽  
Evaluation Framework ◽  
Two Stage ◽  
System Boundaries ◽  
Content Type

PurposeWhile the investment in construction projects has increased over the past few decades, low construction project productivity (CPP) appeared to be persistent, thereby reflecting an “investment-in-failure” paradox between the investment and CPP. Hence, this paper aims to develop a systematic and holistic CPP evaluation framework to explain the apparent paradox in the construction industry.Design/methodology/approachThe paper first reviews the literature about the theories of system, production, principal–agent and project success evaluation to re-conceptualise the CPP and proposes a two-stage CPP evaluation framework. The framework is subsequently explored through a sequential qualitative mixed-methods design within the context of the Hong Kong construction industry by combining 32 semi-structured interviews with senior industry experts and exploratory case studies, with three real-life construction projects.FindingsThe paper identifies three system boundaries for CPP evaluation, that is, parameter, timeframe and stakeholder, and develops a two-stage CPP evaluation framework to indicate site efficiency and utilisation effectiveness, thereby accessing the productivity of both the construction and post-construction stages. The “investment-in-failure” paradox associated with current CPP evaluation approaches is primarily attributed to the narrowly defined CPP boundaries.Research limitations/implicationsThe qualitative exploration of the evaluation framework only focusses on the Hong Kong construction industry. Further case studies within other urban contexts could be used to improve the generalisability of the findings. Quantitative research is also necessary to advance theoretical development of the two-stage CPP evaluation.Practical implicationsThe systemic CPP conceptualisation and the two-stage CPP evaluation framework support the systems thinking of industry stakeholders and enable them to formulate holistic strategies for long-term CPP enhancement.Originality/valueThe research demonstrates the needs to expand the system boundaries of CPP to reflect its systemic value and to shift the paradigm of CPP evaluation from being output-orientated and quantity-focussed to being outcome-orientated and value-focussed.

Identifying the performance areas affecting the project performance for Indian construction projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Prachi Vinod Ingle ◽  
Gangadhar Mahesh ◽  
Deepak M.D.
Keyword(s):  
Regression Analysis ◽  
Multiple Regression Analysis ◽  
Multiple Regression ◽  
Construction Industry ◽  
Construction Projects ◽  
Management Practices ◽  
Customer Relations ◽  
Project Performance ◽  
Content Type ◽  
Significant Performance

Purpose The construction industry is facing challenges because of performance shortfalls. Construction projects are highly complex, distinctive, fragmented and do not have well-established performance assessment models to evaluate their project success. The purpose of this paper is to assess the direction through determination of performance areas that would affect project performance in Indian construction projects. Design/methodology/approach A survey instrument was developed to gather data on the perception of industry professionals on these identified areas. Purposive sampling method was used to select respondents for the survey. These performance areas are ranked using relative importance index to ascertain a level of importance among the group. Factor analysis (FA) was conducted to identify the significant performance areas project performance. Further to identify the most influence performance areas on Indian construction projects, multiple regression analysis was carried out. Findings Findings indicated 28 significant performance areas. This shows the low level of adoption of good construction management practices in Indian construction projects. FA resulted in the areas being grouped to nine broad significant performance areas with 59.49% of the total variance, namely, quality, schedule, environment and stakeholder satisfactions, cost, productivity, safety, communication management, customer relations and finance. Multiple regression analysis revealed two pivotal factors “customer relations” and “schedule” that significantly influence project performance in Indian construction industry. Originality/value The outcome of the study will guide project stakeholders, who desire to improve project performance on construction projects, to prioritize their efforts. It also highlights performance areas of project management which required more focussed research in the context of Indian construction projects. The findings can be extended to the developing countries.

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