ETD Collection

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2016 - 20176

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Subject: search.filters.subject.Contractors--South Africa

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    Relationship quality and service quality between contractor and construction client
    (2017) Singh, Evashne
    Purpose Existing studies demonstrate that contractors have not fully embraced the idea of forming relationships with their clients and providing superior service quality through improved project performance. Performance on projects has been poor and client contractor relationships have become adversarial as a result of the short term, profit orientated approach adopted by many construction firms. To improve client value and construction business sustainability, it is necessary that construction firms adopt a client- orientated approach to managing projects and this can be achieved through understanding the client’s needs closely. In line with the foregoing, the aim of the current research is to investigate South African public sector construction client’s perspectives on relationship quality between contractors and construction clients and their perceived shortcomings in service quality. Having this understanding will help contractors improve their service quality and their relationship with clients. This is likely to improve the competitiveness of contracting firms, thereby improving business sustainability. Methodology/ Approach A survey research design was adopted for this study. Adopting a semi-structured mailed questionnaire survey, 45 different construction client representatives, from 11 public sector organisations in South Africa were approached, out of which 10 client representatives of different roles and responsibilities responded (22% response rate). Public sector clients targeted were those who have mainly worked with contractors undertaking medium to large scale construction projects. The respondents incorporated project managers/ leaders and middle and senior management who have experience on construction projects. Initial contact was made telephonically and this was followed by the distribution of survey questionnaires through email. Findings Based on the responses from client representatives, the primary factors influencing relationship quality between client and contractor was found to be open and honest communication, followed by trust and fairness. The primary shortcoming in service quality was found to be competency, followed by a lack of open and honest communication. Competency related shortcomings incorporated the contractor’s inability to manage resources, time and cost on projects. The findings have also revealed that a small percentage of public sector clients are aware of the problems in service quality and have started to consider alternative procurement approaches to offset performance related risks and consequently, improve contractor client relationship quality and service quality. However, some public sector clients still support traditional procurement approaches and others are not knowledgeable on how ongoing challenges in relationship quality and service quality may be mitigated though adopting appropriate procurement strategies. Practical Implications Client contractor relationships are likely to improve when there is open and honest communication at all times and where there is a level of trust between contractors and clients. Service quality is likely to improve if contractor competence issues are addressed to effect better service quality through improved project delivery. Contractors engaging in open and honest communication with their clients is also likely to improve the service quality of contractors. To effect change it is necessary for clients to consider alternative procurement approaches to achieve better service quality and client contractor relationships. The consultant’s role becomes pivotal in ensuring quality service delivery and harmonious client contractor relationships. Originality This research adds to the limited studies in South Africa on the client’s perspectives on relationship quality and service quality. It bridges a gap in the previous studies, which have not investigated public sector clients’ views on relationship quality and service quality. Keywords: Construction Industry, Construction Projects, Contractor Performance, Relationships, Service quality
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    Investigating public sector client performance in South African construction procurement
    (2017) Saad, Mohammed Mustapha
    This study proceeds from the premise that the dissatisfaction of the clients with the outcomes of the construction projects stems from their objectives not being met by the industry. The study aimed at investigating public sector clients’ performance in the South African construction procurement with a view to establishing how their efficiency and effectiveness could be improved during procurement processes. The specific research objectives are to: identify the key performance indicators (KPIs) for public sector clients in their procurement process; assess and analyse the weaknesses and strengths associated with public sector clients’ performance in the construction procurement process; develop a methodical approach to the measurement of public sector clients’ performance in their procurement processes; and recommend implementable approaches to improving client performance in the public sector procurement process. A qualitative and quantitative mixed method research design was adopted in carrying out the study. This involved the use of interviews and structured questionnaire survey. Data were collected from National and Provincial Departments of Public Works as public sector client representatives in South Africa. Based on the analysis of the organogram, a total of six functional units involved in the procurement process were identified and targeted for the purpose of data collection. The purposive sampling technique was adopted for the study. These are Heads of Departments, Deputy Directors General responsible for construction projects, Chief financial officers, Heads of supply chain management, Heads of human resources management, and senior project managers. Information collected included issues leading to uncovering of public sector key performance indicators (KPIs) and strengths and weaknesses associated with public sector clients’ performance. Data collected were analysed using content analysis to determine the themes and constructs leading to the identification of public key performance indicators. Further analysis was carried out using mean ranking analysis of factors associated with the strengths and weaknesses associated with public sector clients’ performance. The results of the research show project delivery process as good, not excellent; no detailed template for clarifying project briefs; legislative and administrative procedures lead to time and cost overruns; lack of adequate capabilities within in-house trained professionals and technical expertise to supervise all projects, insufficient in-house professionals to be represented on each project site; lack of mechanism to monitor in-house professionals’ participation on project sites; low participation of end users’ agents due to high incapacitation of User Department organisation; DPW are highly incapacitated because of lack of standard documentations; lack of professional training and short courses to enhance the skills and expertise of technical professionals. Other results show that delayed/late payment to contractors and end user agents due to cash flow challenges; weak or neglect of project monitoring and supervision; disputes between project managers and consultants as a result of quality of work done by contractors; bureaucratic bottlenecks and long decision making processes; design changes and variation due to contingent events, unforeseen circumstances due to weather, earthworks, disasters, changes in User Department briefs and challenges due to administration and political issues. The findings could also be drawn from challenges in descending order of importance from the human resources management units, the financial management units, the supply chain management units, project management units, decision making processes, planning units, design, briefing, documentation and policy issues. The study concluded that 137 public sector key performance indicators are identifiable for assessing public sector client performance in South African procurement. It also concluded that out of several challenges, the human resources, financial management, supply chain management, and project management challenges are the most severe challenges that beset the National and Provincial Department of Public Works, while the documentation and policy issues are less severe. Implementable recommendations were made to specific user departments. The human resources management units in the South African National and Provincial Departments of Public Works should adopt the recommendation suggested in this study to improve the effectiveness and efficiency of professionals during their project delivery process.
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    Development of Previously Disadvantaged Individual subcontractors in Public Private partnerships
    (2017) Mokoala, Joseph Rapula
    Public Private Partnerships (PPPs) are an innovative method to deliver infrastructural projects without government having to use public funds for funding capital projects. This innovative method has been adopted worldwide and has yielded the intended results, more especially in European countries. This innovative method provides government with an opportunity to focus on governing and take advantage of skills and funding from the private sector to fund capital-intensive infrastructural projects. Within the South African context, all PPPs are required to comply with the requisites of the BEE Code of Good Practice for PPPs, which states that 10% of the bid weight will be allocated for compliance in terms of BEE. Over the years, this requirement has been met for the majority of PPP projects that reached financial close and complied with the requirements promulgated by the South African Government as a tool to promote, develop and empower up-and-coming entities. The aim of this study was to investigate the economic advancement occasioned by PPPs on Previously Disadvantaged Individuals (PDI) subcontracting. This was attained through the use of a case study method as a result of the type of questions and objectives to be met. The study revealed that PPP projects are compliant with the BEE Code of Good Practice for PPPs. However, the requirements are not specific and clear in the PPP agreement to facilitate better monitoring and evaluation. Keywords: Previously Disadvantaged Individuals, Subcontracting, Black Economic Empowerment, Public Private Partnerships
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    An investigation into the management of successful emerging general building and civil engineering contractors in Gauteng
    (2017) Govender, Neil
    The construction industry in South Africa has an array of challenges. These challenges make it difficult for emerging contractors to establish and maintain successful companies. The purpose of this report is to establish why there are so few successful emerging contractors in the construction industry. In this study, the success of an emerging contracting company was judged by the survival of that company for a minimum period of five years and an improvement in the company’s CIDB grade by at least three levels during its existence. Structured interviews were conducted with a sample of 10 successful emerging contractors in Gauteng. The study found that technical capacity is one of the components of successful emerging contracting companies. It also found that technical capacity, inconsistent work opportunities and financial constraints are challenges that affect contractors when trying to increase their CIDB grade. The successful emerging contractors in the study utilised various strategies to overcome challenges in the industry, however, these strategies were flexible for changing circumstances and new opportunities.
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    Sources of disputes in South African construction contracts and the resolution techniques employed between clients and contractors
    (2016) Sithole, Bryne Mandlenkosi
    Disputes are a common characteristic of the construction industry, the underlying sources of disputes, most frequent dispute resolution techniques employed and the responsiveness of the industry towards the available techniques was explored including detailed literature review on disputes in the construction industry. Disputes can lead to the significant waste of resources on contracts; and they thereby undermine the concepts of sustainability and value-for-money in contracts, thus affecting the overall health of the construction industry. The methodology involved interviews conducted among professionals with experience, review of published cases, contracts and media reports on disputes in the construction industry. The scarcity of research in this field is discussed and the empirical work on the sources of disputes, dispute resolution techniques and proficiency in the industry was reviewed. It is concluded that contractual issues need more attention to deter disputes occurrence, while negotiation, arbitration and litigation techniques dominate the industry. The industry lacks professionals with dispute resolution skills, therefore workshops and stringent policies are needed to advise the professionals to acquire the skills for the development and improvement of commercial relationships in contracts.
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    An exploratory study to improving project success through contractor-project manager planning in South Africa: a collaborative approach
    (2016-07-13) Egwuonwu, Ginika
    One of the causes of projects failing to meet their budget and schedule expectations is poor contractor performance. Small-medium sized contractors in the South African construction industry are faced with challenges such as poor management of cash flows, poor access to credit, not having enough capital to drive the project from their own coffers, challenges in obtaining finance, poor planning, challenges with getting competent staff, poor administrative capabilities, lack of experience and poor education, lack of management skills in general and the influence of the client such as imposing unrealistic deadlines. The competencies of the construction project manager are imperative to achieving project success in terms of meeting budget and time expectations. The specific competency of the construction project manager for handling small-medium sized contractors in South Africa are critical analysis, judgement, resource management, engaging communication and motivation. This study explores the need for a collaborative planning framework between small medium sized contractors and the construction project manager in South Africa, to address poor technical and managerial skills of small-medium sized contractors