Assessment of factors affecting the performance of construction projects in South Africa

183 Pages·2015·2.33 MB·English

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How to cite this thesis
Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/
M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved
from: https://ujdigispace.uj.ac.za (Accessed: Date).
ASSESSMENT OF FACTORS AFFECTING THE PERFORMANCE OF
CONSTRUCTION PROJECTS IN SOUTH AFRICA

By

SIBIYA MANDISA

A DISSERTATION

Submitted in fulfilment of the requirements for the degree

MASTERS TECHNOLOGIAE

in

CONSTRUCTION MANAGEMENT

in the

FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT

at the

UNIVERSITY OF JOHANNESBURG

SUPERVISOR: DR.C.O. AIGBAVBOA

CO-SUPERVISOR: PROF.W.D. THWALA
2015

ASSESSEMENT OF FACTORS AFFECTING THE PERFORMANCE OF
CONSTRUCTION PROJECTS IN SOUTH

SIBIYA MANDISA

SUPERVISOR: DR.C.O. AIGBAVBOA

CO-SUPERVISOR: PROF.W.D. THWALA

A Dissertation submitted in fulfilment of the award of the requirement for the award of a
degree Masters technologie in Construction Management in the faculty of engineering and
the built environment, department of construction management and quantity surveying at the
University of Johannesburg.

JOHANNESBURG, MAY 2015
DECLARATION

I, SIBIYA MANDISA, do hereby declare that this Dissertation is the result of my own
investigation and research, except to the extent indicated in the references and by comments
included in the body of the report and that it not been presented elsewhere for a similar
purpose. It is submitted to the University of Johannesburg, Department of Quantity Surveying
and Construction Management, as a requirement to obtain MASTERS OF
TECHNOLOGIAE degree in Construction Management.

Signature Date
University of Johannesburg,

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ACKNOWLEDGEMENTS

First and foremost I would like to thank God Almighty, for guiding me and protecting me
through life, for giving me the strength to pursue my all dream and for putting, in my life, a
wonderful support system that has been walking with me through life and my academic
career.
I would like to express my deepest gratitude and appreciation to the following people for
their guidance, support, assistance and contribution to my work:
 My supervisor, Dr Clinton Aigbavboa, for his professional guidance and moral
support, throughout the course of this study.
 My co-supervisor, Professor Wellington Didibhuku Thwala for the support and
guidance during this study.
 Statkon for data input and analysis. My special thanks goes to Dr Jurgen Backer for
the countless hours he spent on my study.
 All the respondents for their time in completing the questionnaire.
 My friends. Mulenga Mukuka, Liphadzi Murendeni, Livhuwani Tshikhudo, Justice
Kekana, Tidimalo Mokgatlane, Angel Buthelezi, for their support and words of
encouragement throughout the duration of this study.
 To my family: Christina Sibiya, Yvonne Mohlala, Phindile Sibiya, Vivian Sibiya,
Lucky Sibiya, Fikile Sibiya, Futhi Sibiya, Zanele & Disco Mhlongo, Zethu Sibiya,
Mbongeni Mohlala, Tshepo Lushaba, Zanokuhle Sibiya, Vuyelwa Mdleleni, Tsepiso
Lushaba, Lateefah Mohlala, Sihle & Sibusiso Mhlongo. Without their support, love
and prayer, I would not have got this far in life and in my career.
 Finally, I would like to express my deepest gratitude to the Department of
Construction Management and Quantity Surveying, University of Johannesburg,
South Africa for giving me the opportunity to be part of their prestigious institution.

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DEDICATION

I dedicate this dissertation to two very special people, who are no longer with us, but
remain alive in my heart; Jonathan Abraham Sibiya and Moosa Sibusiso Mohlala.
You will forever be loved and missed, may your souls continue to rest in peace.

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ABSTRACT

The construction industry plays an indispensable role in the South African economy, and is a
significant contributor to economic growth. However, several challenges have been
recognised as confronting and influencing the performance, development and growth of the
South African construction industry. This study therefore evaluates the factors that affect the
performance of construction projects in the Gauteng province of South Africa.
Data for this study were obtained from both primary and secondary sources. Primary data
were obtained from a well-structured questionnaire that was distributed to construction
professionals from contracting companies, consultant offices, and public and private sector
owners. Of the 160 distributed questionnaires, 131 were received back which represents a
response rate of 82%; these data formed the basis of this study. Frequency analysis and
various statistical procedures were used to analyse the returned questionnaire data.
The study revealed the following findings: all respondents agreed that the most important
factors affecting the performance of construction projects in Gauteng were project cash flow,
dispute management (clients and professionals) and leadership skills of project managers.
However, it was also found that the clients, consultants and contractors each had their own
individual views as to which aspects they regarded as being the most important factors
affecting the performance of construction projects. From the clients’ point of view the most
important factors affecting project performance were project cash flow, dispute management
(labour and supervisor) and risk assessment. Consultants viewed leadership skills of the
project manager, availability of personnel with high experience and qualifications as well as
average delays in payment from owners to be the most important factors affecting project
performance. Finally, contractors revealed that managerial participation in decision-making,
housekeeping on site, and the number of disputes between owner/client were the major
factors affecting the performance of construction projects in Gauteng, South Africa.
The study also examined the most significant KPIs according to responses received from all
respondents and also in terms of the perceptions of each individual group. Findings revealed
that according to all respondents, the most significant KPIs were; construction time,
profitability and project management. However, according to clients the most significant
KPIs were; Quality assurance; Material ordering, handling and management and project
management. Consultants considered, Construction time; material ordering, handling and
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management as well as risk management to be the most significant KPIs. Lastly contractors
viewed; Construction time; Profitability and Project management as the most significant
KPIs.
From the literature reviewed it was evident that project delivery in Gauteng was poor, the
study then identified measures that can be implemented to improve the performance of
construction projects in Gauteng. Findings revealed that; Proper project planning and
scheduling, use of effective project management techniques, clear information and
communication channels were the most effective ways for improving project performance.
The results from this study contributes to the body of knowledge and provides valuable
insight as to what are the factors affecting the performance of construction projects and the
most important KPIs (for measuring project performance), especially since it provides the
views of the major participants of construction project.
The study recommends that every project should develop additional KPIs beyond the
traditional project performance measurements, which are cost, time and quality. The project
objectives should be taken into consideration when developing KPIs, as all projects are
unique and their success is defines differently. It is further recommended that in order to
improve project delivery the abovementioned recommendations should be implemented by
all participants of construction projects.

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TABLE OF CONTENTS

DECLARATION ..................................................................................................................................... i
ACKNOWLEDGEMENTS ................................................................................................................. ii
DEDICATION ....................................................................................................................................... iii
ABSTRACT ........................................................................................................................................... iv
TABLE OF CONTENTS ....................................................................................................................... vi
LIST OF TABLES ................................................................................................................................. xi
LIST OF FIGURES .............................................................................................................................. xii
LIST OF ABBRIVIATION ................................................................................................................. xiii
CHAPTER ONE ..................................................................................................................................... 1
INTRODUCTION .................................................................................................................................. 1
1.0 BACKGROUND OF THE STUDY ........................................................................................... 1
1.1 PROBLEM STATEMENT ............................................................................................................... 2
1.2 RESEARCH QUESTIONS............................................................................................................ 2
1.3 RESEARCH OBJECTIVES ............................................................................................................. 3
1.4 PURPOSE OF THE STUDY ............................................................................................................ 3
1.5 RESEARCH METHODOLOGY ...................................................................................................... 4
1.6 RESEARCH APPROACH AND DESIGN ...................................................................................... 4
1.7 RESEARCH AREA AND TARGETED RESPONDENTS ............................................................. 4
1.8 SAMPLE AND DATA COLLECTION ........................................................................................... 5
1.9 LIMITATIONS ................................................................................................................................. 5
1.10 ETHICAL CONSIDERATION ...................................................................................................... 5
1.11 OVERVIEW OF CHAPTERS ........................................................................................................ 5
1.12 CONCLUSION ............................................................................................................................... 7
CHAPTER TWO .................................................................................................................................... 8
LITERATURE REVIEW ....................................................................................................................... 8
CONSTRUCTION PROJECT PERFORMANCE- AN OVERVIEW ................................................... 8
2.0 INTRODUCTION ...................................................................................................................... 8
2.1 PROJECTS ....................................................................................................................................... 8
2.2 CONSTRUCTION PROJECTS ........................................................................................................ 9
2.3 PROJECT PHASES AND PROJECT LIFE CYCLE ..................................................................... 10
2.4 PROJECT MANAGEMENT .......................................................................................................... 12
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2.4.1 The importance of thorough project management ................................................................... 13
2.4.2 The Project Manager ................................................................................................................ 14
2.4.3 The role of the project manager ............................................................................................... 14
2.5 PERFORMANCE ........................................................................................................................... 14
2.6 PERFORMANCE MANAGEMENT ............................................................................................. 15
2.6.1 Purpose of performance management ...................................................................................... 16
2.6.2 The Performance Management Process ................................................................................... 16
2.7 PERFORMANCE MEASUREMENT ............................................................................................ 17
2.7.1 Key performance indicators & Benchmarking and performance............................................. 18
2.7.1.1 Key performance indicators (KPIs) .................................................................................. 18
2.7.1.2 Benchmarking and Performance ....................................................................................... 21
2.8 PROBLEMS OF PERFORMANCE IN THE CONSTRUCTION INDUSTRY ............................ 22
2.9 CONSTRUCTION MANAGEMENT AND PERFORMANCE .................................................... 26
2.9.1 Risk management and project performance ............................................................................. 26
2.10 FACTORS AFFECTING PERFORMANCE OF PROJECT MANAGERS ................................ 28
2.11 COST AND TIME PERFORMANCE ......................................................................................... 29
2.11.1 Cost Performance ................................................................................................................... 30
2.11.2 Time performance .................................................................................................................. 31
2.11.2.1Types and courses of delay/time overruns ...................................................................... 32
2.12 PROJECT SUCCESS ................................................................................................................... 33
2.13 CONCLUSION ............................................................................................................................. 35
CHAPTER THREE .............................................................................................................................. 36
INTERNATIONAL LITERATURE REVIEW .................................................................................... 36
3.0 INTRODUCTION .................................................................................................................... 36
3.1 MALAYSIA ................................................................................................................................... 36
3.1.1 BACKGROUND ..................................................................................................................... 36
3.1.2 THE MALAYSIAN CONSTRUCTION INDUSTRY ............................................................ 37
3.1.3 CHALLENGES FACING THE MALAYSIAN CONSTRUCTION INDUSTRY ................. 38
3.1.3.1 Problems with Consultants ................................................................................................ 39
3.1.3.2 Problems of Cost and Delay .............................................................................................. 39
3.1.3.3 Problems facing the public sector ..................................................................................... 40
3.1.3.4 Problems facing small companies ..................................................................................... 40
3.1.3.5 Problems of project abandonment ..................................................................................... 41
3.1.3.6 Late payment problems ..................................................................................................... 41
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