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

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.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou

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.


2015 ◽  
Vol 20 (3) ◽  
pp. 235-251 ◽  
Author(s):  
Olugbenga Jide Olaniran

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ernest Kissi ◽  
Kofi Agyekum ◽  
Theophilus Adjei-Kumi ◽  
Debrah Caleb ◽  
Ekow Donkor Micheal

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.


2016 ◽  
Vol 16 (3) ◽  
pp. 307-322 ◽  
Author(s):  
Hossein Karimi ◽  
Timothy R.B. Taylor ◽  
Paul M. Goodrum ◽  
Cidambi Srinivasan

Purpose This paper aims to quantify the impact of craft worker shortage on construction project safety performance. Design/methodology/approach A database of 50 North American construction projects completed between 2001 and 2014 was compiled by taking information from a research project survey and the Construction Industry Institute Benchmarking and Metrics Database. The t-test and Mann-Whitney test were used to determine whether there was a significant difference in construction project safety performance on projects with craft worker recruiting difficulty. Poisson regression analysis was then used to examine the relationship between craft worker recruiting difficulty and Occupational Safety and Health Administration Total Number of Recordable Incident Cases per 200,000 Actual Direct Work Hours (TRIR) on construction projects. Findings The result showed that the TRIR distribution of a group of projects that reported craft worker recruiting difficulty tended to be higher than the TRIR distribution of a group of projects with no craft worker recruiting difficulty (p-value = 0.004). Moreover, the average TRIR of the projects that reported craft worker recruiting difficulty was more than two times the average TRIR of projects that experienced no craft recruiting difficulty (p-value = 0.035). Furthermore, the Poisson regression analysis demonstrated that there was a positive exponential relationship between craft worker recruiting difficulty and TRIR in construction projects (p-value = 0.004). Research limitations/implications The projects used to construct the database are heavily weighted towards industrial construction. Practical implications There have been significant long-term gains in construction safety within the USA. However, if recent craft shortages continue, the quantitative analyses presented herein indicate a strong possibility that more safety incidents will occur unless the shortages are reversed. Innovative construction means and methods should be developed and adopted to work in a safe manner with a less qualified workforce. Originality/value The Poisson regression model is the first model that quantifiably links project craft worker availability to construction project safety performance.


2018 ◽  
Vol 11 (3) ◽  
pp. 761-782 ◽  
Author(s):  
Shamil George Naoum ◽  
Carlos Herrero ◽  
Charles Egbu ◽  
Daniel Fong

Purpose It is axiomatic that construction is a fast-paced and competitive industry, which goes hand in hand with many construction professionals suffering from stress including construction project managers (C-PMs). The role of C-PMs is crucial to achieving project success as they are responsible for planning the project, organising human resources, controlling operations and the budget, and forecasting probable difficulties. The purpose of this paper is to investigate the causal relationships between stressors, stresses, stress-coping behaviours and their impact on the performance of C-PMs. Design/methodology/approach To investigate the relationships between stress and performance among C-PMs, a questionnaire was designed based on the extensive literature, and was sent to 150 C-PMs who had amassed at least five years’ direct working experience in the construction industry. A total of 44 completed questionnaires were returned. Correlation analysis and structural equation modelling were employed to understand the integrated relationships between these factors. Based on the data collected and analysis of the results, an integrated structural equation model of the stresses and performances of C-PMs was developed using AMOS version 22.0. Findings The results of structural equation modelling reveal the following: burnout is the type of stress that has the highest impact on the performance of C-PMs, being detrimental to their interpersonal performance (IPP) and positive for their organisational performance (OP), whereas physiological stress worsens the task performance of C-PMs and objective stress improves their IPP. The most active stressor towards the performance of C-PMs is “workgroup cooperation”, which has an impact on the IPP in a positive way but is detrimental to the OP. Career-developing environment, poor organisational structure and role conflict affect both stress and performance together. Originality/value This study provides a comprehensive investigation into the impact of various types of stress on the performances of C-PMs. The result constitutes a significant step towards the stress management of C-PMs in the dynamic and stressful construction industry.


2019 ◽  
Vol 5 (1) ◽  
pp. 13-19
Author(s):  
Fitri Nur Kharina ◽  
Kusno Adi Sambowo

Construction projects in all regions continues to be developed for the creation of facilities that can be utilized by the community. One of them is the construction of apartments which are now being intensively carried out to meet residential needs for the community. Making a construction project plan always refers to estimates that exist at the time development plan is made, therefore problems can arise if there is a discrepancy between the plans that have been made and the actual reality. So the impact that often occurs is the delay in the time of project implementation which can also be accompanied by an increase in the cost of implementing the project. In the construction project of Cinere Terrace Suites Apartemen & Citywalk, Jakarta there was a delay resulting in a late payment of monthly bill progress by the owner. Based on the above reasons, this research was conducted to find out how the project performance was seen from the cost and time period of the review period. how is the estimated cost and time to complete the overall project work. The method used in the analysis of this study is the Earned Value Method. Based on the results of the analysis carried out for 29 weeks the project performance on schedule has been delayed and cost shows a positive value. For the estimated completion time of the project there is an increase in time whose duration increases from the planned 98 weeks or 685 days to 109,624 weeks or 768 days. While the estimated cost of completing the project from the results of the analysis obtained a value of Rp. 270,147,448,569.16 smaller than the planned cost of Rp. 315,272,727,272.73. With the difference VAC of Rp. 45,125,278,703.57 this shows that there are benefits obtained by the contractor.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Harish Kumar Singla ◽  
Abhishek Shrivas ◽  
Ashu Sharma

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.


2017 ◽  
Vol 15 (4) ◽  
pp. 471-487 ◽  
Author(s):  
Nnedinma Umeokafor

Purpose The purpose of this paper is to present the findings of a study that identified and assessed the barriers to client involvement in health and safety (H&S) in the Nigerian construction industry. Design/methodology/approach On the basis of literature review and a pilot study, structured questionnaires were designed and administered to clients and their representatives in ongoing construction projects in Nigeria. Descriptive and inferential statistics were then adopted while analysing the data. Findings The research reveals that the major barriers to client involvement in H&S in Nigeria’s construction industry focus on the gaps created by lack of H&S legislation in specifying client roles and responsibilities in H&S, trust and confidence in the supply chain, low levels of awareness at various levels, procurement issues, the attitudes of the various members of the project team and resource-related issues. In total, 20 barriers to client involvement in H&S were identified and assessed. Practical implications Policy makers will find the study beneficial as it provides a good understanding of the issues to address while making policies that seek to involve the client in H&S in Nigeria. Originality/value While the findings offer insight on the barriers to client involvement in H&S in Nigeria’s construction industry, the study also contributes to the discourse in developing countries. The paper recommends transparent steps in procurement, H&S legislation that factors in economic incentives and community and financial institutions contributions to involving clients in H&S. The study is the first attempt to investigate the barriers to client involvement in construction H&S in Nigeria, contributing to the dearth of H&S literature in Nigeria.


Author(s):  
Esan Martins Taiwo ◽  
Folaranmi Kazeem Adekunle ◽  
Hassan H ◽  
Buari T. A

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.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wenting Zhan ◽  
Wei Pan ◽  
Le Chen

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.


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