scholarly journals Selection of procurement systems in the South African construction industry: An exploratory study

2012 ◽  
Vol 12 (1) ◽  
Author(s):  
W. D. Thwala ◽  
M. D. Mathonsi

Purpose of this paper: Procurement systems are vital in ensuring the successful implementation of construction projects precisely in all the phases of any particular project. Therefore, this paper aims to investigate in a systematic manner the factors that influence the selection of a procurement system in the South African construction industry. Research methodology: An extensive theory and literature review of procurement systems was conducted. The literature reviewed included a sample of case studies of procurement systems successfully implemented in completed building and civil engineering projects in South Africa. A questionnaire using a four-round Delphi survey method was used to conduct the empirical study in order to obtain participants' opinions about factors influencing the selection of procurement systems as well as the utility value of various procurement systems on each factor as identified. Finally, data analysis of both qualitative and quantitative techniques was performed using the Statistical Package for Social Sciences (SPSS). Findings: After qualitative analysis, findings of the literature reviewed suggest that factors that influence the selection of procurement systems cut across all the phases of the project as identified in this paper. Therefore, these factors are categorically classified into internal and external factors. Factors from the internal environment were further classified into client characteristics and project characteristics, with client characteristics comprising of variables such as clients' level of knowledge and control, political and social consideration, familiarity of procurement systems, competition, funding arrangement, government public/private sector projects and risk allocation whereas project characteristics comprise of factors (variables) such as size and technical complexity of the project, influence of the project life cycle, expedited project delivery, time, quality and price certainty. Factors from the external environment include variables such as market competition, information technology, regulatory environment, natural causes and globalisation. Research limitations: In terms of its scope this study focused on both national and international literature reviews and the empirical survey of this study was conducted within South Africa. Its target participants were limited to civil engineers, quantity surveyors, construction/project managers, architects and contractors located in three provinces of South Africa, namely Gauteng, Mpumalanga and Limpopo Provinces. Value: This study investigates factors that influence the selection of procurement systems in South Africa for the purpose of assisting and guiding construction practitioners in selecting suitable procurement systems for their planned projects. Conclusion: This study demonstrated that due to changes in the construction industry both factors from the internal and external environments such as size and complexity of construction projects, macro and micro economic conditions, political and social and information technology prevailing, traditional procurement method need to be supplemented with contemporary procurement systems in order to meet the new demands of the industry.

Author(s):  
Douglas Aghimien ◽  
Clinton Aigbavboa ◽  
Ayodeji Oke ◽  
Nteboheng Koloko

This study presents the result of an assessment of digitalisation within the South African construction industry from the construction professionals' perspective. The study adopted a quantitative approach through a questionnaire survey carried out among construction professionals in Gauteng Province, South Africa. Appropriate descriptive statistical tools were used in analysing the data gathered. The study revealed that the major stages of construction where digitalisation is evident are the design phase, and the feasibility phase. The major construction processes where it is mostly visible are, construction cost control, cost planning, preliminary cost estimate and building system analysis. In addition, the most significant benefits to be derived from digitalisation in the industry includes time-saving in construction projects delivery, increase productivity, increase speed of work, increase document quality, speeding up of response time, and simpler working methods. This study contributes to the body of knowledge as it reveals the happenings surrounding digitalisation within the South African construction industry; an aspect that seems to be lacking research attention.


2007 ◽  
Vol 7 (1) ◽  
pp. 30-37
Author(s):  
Chao Nkhungulu Mulenga ◽  
Burger Van Lill

This study investigated procedures and processes used in the selection of prospective foreign applicants by recruitment agencies in South Africa. An electronic survey was distributed to the accessible population of 244 agencies on a national employment website, yielding 57 respondents. The results indicate that the recruitment industry does not have standard, well articulated procedures for identifying and selecting prospective foreign employees and considered processing foreign applicants difficult. Difficulties with the Department of Home Affairs were a major hindrance to recruiting foreign applicants.


Author(s):  
Poobalan Pillay ◽  
Chengedzai Mafini

Background: The construction industry in South Africa has a lot of potential but its performance is still restricted by numerous internal and external challenges. Unless these challenges are identified and understood better, further growth of this industry is likely to be hindered, which has negative economic implications for the South African economy.Objectives: This study investigated supply chain bottlenecks faced by the construction industry in South Africa. It also discussed solutions for addressing the identified bottlenecks in order to facilitate the continued development of supply chain management in the construction industry.Method: The study used a qualitative approach in which in-depth interviews were held with purposively selected senior managers drawn from the construction industry in South Africa. Content analysis using ATLAS.ti software was employed to identify the themes from the collected data.Findings: The findings of the study showed that supply chain management in the construction industry in South Africa is constrained by five major bottlenecks: skills and qualifications, procurement practices and systems, supply chain integration, supply chain relationships and the structure of the construction industry. Recommendations for addressing each of these five challenges were put forward.Conclusion: The study concludes that both awareness and application of supply chain management in the construction industry in South Africa remains inhibited, which creates opportunities for further improvements in this area to realise the full potential of the industry.


2015 ◽  
Vol 13 (1) ◽  
pp. 1028-1051 ◽  
Author(s):  
Nehemiah Mavetera ◽  
Kagiso Sekhabisa ◽  
Chipo Mavetera ◽  
Ireen Choga

Emerging contractors play a critical role in the South African economy in terms of rendering services to government especially in the construction sector. However, literature findings reveal that some of the SMMEs are unable to deliver their projects successfully due to project management issues. The focus of this study was to establish the project management factors influencing the successful delivery of construction projects by emerging contractors in the Mahikeng area of South Africa. A mixed design research method was used to collect, analyse and derive the findings. Findings revealed that projects do not comply with the time, scope, cost and quality requirements. Focus group interview results attributed these problems to lack of project management skills among the emerging contractors. It is recommended that more support initiatives from the South African Department of Public Works, and other key stakeholders in the construction industry be provided to these contractors


2014 ◽  
Vol 6 (10) ◽  
pp. 771-778 ◽  
Author(s):  
Aigbavboa C.O.

The purpose of the paper is to investigate current challenges and problems facing small and medium size contractors (SME) in Mbombela (Nelspruit) - Mpumalanga Province of South Africa. This study was necessitated because the importance of small and medium sized enterprises in national building and economic development is of paramount importance in the South Africa economic debate. The primary data for the study was collected through a structured questionnaire survey which was distributed to Small and medium contractors within grade 1-4 of the South Africa Construction Industry Development Board. The survey results indicated that external factors such as high competition when tendering for construction jobs within the CIDB category is a major challenge the SME’s face’s in the procurement of work. Also, internal factors such as poor administrative management within the company, lack of skilled professionals and lack of capacity to deliver on certain project were the greatest challenges faced by the construction companies. The scope of this study is only focused on small and medium size contractors in Nelspruit (Mpumalanga province). In addition, the study is not focused on large established contractors in South Africa. The South African construction industry will continue to provide jobs but intervention is needed to develop the SME’s contractors who contribute a greatly to the economy.


Author(s):  
Abimbola O. Windapo

Orientation: Construction human resource management.Research purpose: The study examines the skilled labour supply in the South African construction industry and determines whether there is a relationship between trade certification, quality of work output and scarce labour skills.Motivation for the study: The rationale for the investigation is based on the view of scholars that a skilled labour shortage is preponderant in the South African construction industry even though there is a high level of youth unemployment in South Africa and that the perceived skills shortage contributes to a decrease in productivity and product quality.Research design, approach and method: The paper reviews relevant literature and employs a mixed method research approach in collecting empirical data from contracting companies within the Western Cape Province of South Africa that are listed on the Construction Industry Development Board contractor register.Main findings: The study demonstrated that there is no shortage of manpower, but there is a shortage of qualified or skilled tradesmen, such as electricians, plumbers, welders, fitters and carpenters, whose professions are more technical and require formal training and certification. The level of supply of skilled tradesmen is attributed to the lack of high-quality basic education, the state of the economy, compulsory certification of tradesmen and an ageing workforce. It was also found that there is a significant relationship between skilled labour shortages and the requirement that labour be certified and that work output is unsatisfactory when there is no certification requirement.Practical/managerial implications: Based on these findings, the study concludes that skilled labour shortages and poor work output quality continue to be experienced in the South African construction industry when workers are unable to obtain formal certification for informal work experience acquired through years of practice on construction sites.Contribution: It is recommended that the South African government establish proactive strategies in the form of a framework for use in evaluating, certifying and grading the informal expertise acquired by workers through years of practice. This recommendation seeks to ensure that the supply of certified craftsmen capable of undertaking and producing high-quality construction work meets demand.Keywords: Artisans; Education; Experience; Expertise; Practice


2012 ◽  
Vol 4 (12) ◽  
pp. 712-722
Author(s):  
Godfrey Mofokeng

The South African government has been implementing various small and medium sized contractor development programmes in an effort to redress the legacy created by apartheid government. The programmes fulfil such an objective through awarding construction projects to the historically disadvantaged Black contractors to enable them develop competent skills, build viable construction firms, create jobs and redistribute wealth. A mentorship programme was put in place to assist the contractors with technical, managerial, contractual and business impediments they might be encountered in the project execution and in running the construction business. The main aim of the paper was to conduct an evaluation of the contractor development mentorship programme in South Africa using the Free State Province as a case study. Questionnaires were distributed to 120 small and medium contractors in the Free State Province, and a review of literature was undertaken. Financial factors were found to be amongst the leading causes of contractors’ failures. It was also established that educational qualification and experience in the construction industry have an effect in a contractor’s failure or success. A lot of contractors revealed that they were not exposed to the Contractor Development Programmes like in other provinces hence 74% did not participate in any contractor development programmes and only 26% did participate. The paper concluded with recommendations on how mentorship within the contractor development programme can be improved.


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