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Subject: search.filters.subject.Construction industry

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Now showing 1 - 6 of 6
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    Exploration and analysis of scope creep within project processes in the South African building industry
    (2014-02-17) Wiggins, Vincent John
    Project delays and cost overruns are an inherent part of the building industry both globally and in South Africa. This paper is predicated on the principles of the iron triangle in project management. The study assumes that an increase or change in scope, in most cases, is largely to blame for the incumbent time delays and cost overruns. These slippages in both time and cost are therefore established on the belief that scope definition is the primary offending constraint. Continued scope creep suggests that there may be an inherent fault within the core business processes prior to the execution phase of the project life cycle. Further analysis is therefore required to explore the fault within business systems. The exploration and analysis of scope creep within the initial phases of the project life cycle, reveals the current methodologies used by project management firms, which are then assessed against model theories to test any discrepancies. A qualitative, exploratory research methodology was adopted to gather the appropriate data to answer the pertinent research questions. The findings of the study suggest that the level of decomposition, during scope definition, may be inadequately vague for the South African building industry and that the introduction of additional change control measures into the process may add further value.
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    The relative importance of Project Management knowledge areas in the South African Construction Industry
    (2012-10-08) Spolidoro, Dino
    It is generally accepted that the knowledge and practices described by the Project Management Body of Knowledge (PMBOK) is applicable to most projects most of the time, and there is general consensus about their value and worth. Currently the world is experiencing economic instability. The South African government is therefore looking to improve growth for the country. One of the leading ways to improve growth for South Africa is through large scale investment in infrastructural development. The performance of the South African construction industry on carrying out these complex infrastructure projects will have a direct impact on the outcome of this growth strategy. This research report embarked to determine the relative importance of the nine knowledge areas described by the PMBOK to the South African Construction Industry. The research has been primarily quantitative in nature, using both descriptive and inferential statistical techniques with data gathered from a questionnaire. The key findings of the research reveal that the knowledge areas of cost, time and quality were regarded as relatively most important, with project communication being the knowledge area of least relative importance. It is recommended that a shift in attention is directed away from the narrow focus of these three knowledge areas and a more holistic approach to project management is taken, with particular attention to communication as technology continues to play a more dominant role in the modern work enviroment
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    Perceptions of successful mergers and acquisitions in the South African construction industry
    (2012-10-02) Boshoff, Christian Jacobus
    Most research studies on the success of mergers and acquisitions (M&A) have focused on the financial measures of success. The purpose of this research was to identify the key success factors of a merger and acquisition strategy given by the executives of construction companies and financial advisors who have dealt with mergers and acquisitions in South Africa. These key factors provide the construction executives with a set of recommendations which can be used as guidelines during merger and acquisition deals. Several sources of data collection were used as evidence for the research. A review of the available literature revealed ten key success factors, and these factors were used as propositions for the remainder of the research. A questionnaire containing open-ended questions, which were administered during face-to-face interviews with the various respondents were used. A content analysis was carried out on the data collected. The most significant factors identified in the study were sound implementation plans, immediate addressing of the softer key issues such as cultural differences, managing of management as well as open communication with all the relevant parties involved. These factors are essential to realising the long-term success rate of a merger or acquisition. Strong leadership emerged as the crucial factor in ensuring that these key success elements were driven to realisation.
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    The state of preferential procurement in the construction sector with specific reference to the Department of Public Works (DPW), Pretoria
    (2012-02-13) John, Venilla
    Executive Summary This research seeks to explore how the Preferential Point Scoring System has impacted on the construction sector with particular reference to the Department of Public Works. There is little empirical research being undertaken on the impact of the preferential point scoring system and thus there is a need for research in this field, to contribute to the knowledge of how to plan and implement policies in the public sector. It is our contention that the implementation of the laws and regulations is deficient, including the manner in which the allocation of points is awarded. This results we believe, in a poor success rate in terms of preference of businesses owned by black individuals, women or the disabled. The Department has not undertaken research to identify how successful the Preferential Procurement Framework Policy is and its impact on Black Economic Empowerment (BEE) in the Department. This study intends to identify, document and evaluate the current practices and impact of preferential point scoring system on the construction sector and to propose possible improvements. The objective of this study is to: provide a description of the department’s policy on preferential procurement and document its implementation for the construction industry. The research methodology includes a review of literature of public and private sector intervention as well as journals and internet searches in order to gain an overall context of preferential procurement. The primary tools that were used were the opinion survey and questionnaire (random sampling). Research covers the period 2005 -2006 and 2006-2007. A random survey of 25 cases (5 cases per year) was drawn using the Excel computer system. Members of the Bid Adjudication Committee and contractors were interviewed. Interviews were allowed to develop by allowing the interviewees to express themselves. 3 The findings were as follows: From the analysis it could be determined that the department was able to achieve its objective for the Historically Disadvantaged Individuals (HDI’s). It can be observed from the survey undertaken of the extent to which these groups are participating in the bid processes. The barriers to participation are briefly as follows: The use of fronting by companies to secure bids; a lack of contractor training and development programmes for women and disabled; a lack of finance by Historically Disadvantaged Individuals (HDI’s) and the need for contractor training. The number and value of contracts awarded to BEE companies has fallen well below the targets. HDI’s secured 53% of contracts in 2006-07 compared to 60% in 2005-06. The shortage is especially acute as regards black women and disabled contractors in the mechanical and electrical sectors. During 2006-07 women made up a mere 1.7% in the construction sector but 12% during 2005-06. This shows a decrease of 10.3% of women owned construction companies from 2005-2007. Women owned construction companies represented 10.3% in the mechanical sector for 2005-06 but do not feature in this sector at all during 2006-07. The mechanical and electrical industries are particularly problematic. HDI’s are mostly registered in grades 1-4 (bids valued from R200, 000- R3m) and are underrepresented in grades 7-9 (bids from R30m and over). Where targets were reached, it is primarily in the smaller categories. This is primarily due to newly emerging black companies. In addition to this is: the inability of small contractors to prepare acceptable proposals. Contractors lack the experience and expertise to properly prepare price proposals; failure to meet the requirements for registration on the supplier database. Many fail to submit the correct documentation for registration purposes with CIDB. This ultimately delays contractor registration; frequency of poor performance ratings, leading to failure to be re-appointed. A contractor will abandon site, often due to financial difficulties on site and lack of project management skills; deficiencies in the point scoring process. There is no proper verification checks undertaken and this makes it easy for companies which tender to misrepresent themselves by claiming fraudulently for preference points; contractors expressed 4 the need for training especially in the business environment; the creation of opportunities for fronting to occur; the lack of formation of joint ventures. Based on these findings, we suggest the following improvement framework: The Department of Public Works (DPW) needs to embark on a communication awareness and hold briefing sessions with prospective contractors on the bidding process, and the documents required in the tender process; DPW together with the Construction Industry Development Board (CIDB) should undertake road shows, workshops and use the media to disseminate information to potential contractors; DPW should partner with financial institutions to assist successful bidders to secure funding for the project. The letter of award should be used as proof that it has secured a government contract; officials in the Supply Chain Management unit should conduct verification checks on the preferences claimed by contractors. This should include in-loco inspections; specific days in the year should be devoted to training of potential bidders. The dates should be advertised in the media and the department’s website, public places and at hardware stores; measures should be placed to verify preference points claimed by contractors before award of bids. The investigation of fronting by companies, criminal prosecution and blacklisting of companies should occur; a plan must be embarked upon to encourage black and white business to partner with each other by means of outsourced production elements processes
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    Skills Development in the Gauteng
    (2011-04-19) RAMAPEPE, SIMON
    As part of its broad strategy to tackle rising unemployment, poverty and to facilitate black economic empowerment, the South African government resolved to promote skills development in the workplace. To this end, the national skills development strategy was introduced. This policy came at a time when organisations were battling to increase productivity in the workplace, due to skills shortage. This hampered economic growth and social development in South Africa. The purpose of this research was to examine the implementation of skills programmes for an empowerment company in the Gauteng construction industry. The study used qualitative research methodology. It was established that management showed optimism regarding the implementation of skills plans, whilst workers felt that practical training and financial incentives lacked. It was concluded that skills development is impeded by poor planning and implementation processes. As a result, it was recommended that these be revised and aligned to improve service delivery
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    Customer Perceptions of Value Disciplines in
    (2011-04-13) Govender, Jerome Neil
    The purpose of this research was to determine to what extent construction customers’ views of the value disciplines (Treacy & Wiersema, 1993, 1995a, 1995b) could be used by construction companies to develop a broader platform for competitive advantage, other than lowest price. To achieve this, the research determined the most important value discipline to customers and the most important attributes per value discipline. Furthermore, construction consultants are important influencers in the selection of construction firms. Therefore the research also determined to what extent consultants’ views of the value disciplines were consistent with the views of customers. The research found that customers rated the value discipline of Customer Intimacy the highest as opposed to consultants who rated Operational Excellence the highest. The three most highly ranked attributes of all value disciplines were quality, understanding customer needs, and the reputation of the contractor’s project team