i THE ADOPTION OF ICT PROJECT MANAGEMENT SOFTWARE TO FACILITATE THE ...

140 Pages·2015·2.35 MB·English

by  Michael Savvides

THE ADOPTION OF ICT PROJECT MANAGEMENT SOFTWARE TO
FACILITATE THE TRANSITION TO BECOMING A MEDIUM SIZED
CONTRACTOR

Michael George Savvides

A research report submitted to the Faculty of Engineering and the Built
Environment, University of the Witwatersrand, in partial fulfilment of the
requirements for the degree of Master of Science in Engineering.

Johannesburg, 2015

  i
DECLARATION

I declare that this research report submitted by me for the Master of Science in
Engineering degree to the University of Witwatersrand is my own work and has not
been submitted before by me for a degree at another university or higher education
institution.

Signed…………………………………………………………

Date………………………………………………

  I
ABSTRACT

The research investigated the practices of some grade 4 contractors registered with the
CIDB operating in Johannesburg, with the intention to establish the path they took in
order to become a medium-size contractor. The research was based on the assumption
that, in order for a small contractor to upgrade to a medium sized contractor and take
on more complex projects, they need to upgrade their project management software
first, before upgrading their CIDB rating. The research is premised on the supposition
that the development of small and medium contractors contribute significantly to the
country’s employment rate and economy.

It was found that the majority of the respondents upgraded their project management
software first before upgrading their CIDB rating, establishing the initial assumption
to be true. Other success factors included being able to maintain and develop current
staff, sustain adequate cash reserves, maintain good relationships with project
stakeholders, ensure good company control, completing projects on time and within
budget, and improving the company’s project management capabilities.

The recommendations suggest that, as a result of South Africa’s weak economic state,
it is advisable for grade 3 contractors to grow their respective companies at a
consistent rate. Utilizing the project management software effectively, and to its full
capabilities, is crucial. Training the staff that will be using the software is just as
important.

Keywords: Project Management Software; Small and Medium Contractors;
Construction Industry Development Board

  II
DEDICATION

This thesis is devoted to the South African construction industry community, mainly
the small as well as medium sized contractors who are determined to work hard and
advance within their companies, as well as contributing to the development of the
much needed infrastructure in South Africa. It is hoped that the small and medium
contractors will make use of the outcome and result from this thesis to advance in
their respective companies within this very competitive industry.

  III
ACKNOWLEDGEMENTS

With the completion of this research I am eternally grateful for the help and assistance
I received from my research supervisor, Dr Anne Fitchett for her tireless effort in
ensuring that this research was completed. Her comprehensive and critical comments,
detailed insights, expertise and valuable suggestions are highly appreciated.
I sincerely thank the school of Civil Engineering at the University of Witwatersrand
for allowing me to make use of their resources and facilities, which permitted me to
complete this research. A special thank you goes out to all the respondents for the
time they set aside to partake in this study as well as the trust and enthusiasm to co-
operate, and all the people who in one way or another, contributed to, and supported
me in this research.
Last but not least, I personally would like to show my utter most appreciation and
thankfulness to my amazing parents Mr. and Mrs. Savvides and my older brother
Andréa as well as my incredible friends for the moral support they gave me, ensuring
that this thesis was completed successfully.
Lastly, I would like to dedicate a special thank you to the Lord for giving me this
opportunity and the knowledge to take on this task.
Mr. Michael George Savvides
2014

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CONTENTS Page
DECLARATION .......................................................................................................... I
ABSTRACT ................................................................................................................. II
DEDICATION ........................................................................................................... III
ACKNOWLEDGEMENTS ...................................................................................... IV
LIST OF FIGURES ............................................................................................... VIII
LIST OF TABLES .................................................................................................... IX
ACRONYMS AND ABBREVIATIONS ................................................................... X
1. INTRODUCTION ................................................................................................ 1
1.1 Purpose of Study ............................................................................................. 1
1.2 Research Background ..................................................................................... 1
1.3 Research Motivation ....................................................................................... 5
1.4 Research Question .......................................................................................... 6
1.5 Assumptions ..................................................................................................... 6
1.6 Hypothesis ........................................................................................................ 6
1.7 Chapter Overview ........................................................................................... 7
1.7.1 Chapter 1 .................................................................................................... 7
1.7.2 Chapter 2 .................................................................................................... 7
1.7.3 Chapter 3 .................................................................................................... 7
1.7.4 Chapter 4 .................................................................................................... 8
1.7.5 Chapter 5 .................................................................................................... 8
1.8 Sources of data ................................................................................................ 9
1.9 Limitations ....................................................................................................... 9
2. LITERATURE REVIEW .................................................................................. 10
2.1 Introduction ................................................................................................... 10
2.2 The State of South African Construction Industry ................................... 11
2.3 Skills Shortages ............................................................................................. 13
2.4 Uniqueness of Construction Industry ......................................................... 14
2.5 Complexity of the Construction Industry ................................................... 15
2.6 Grading of Contractors in South Africa ..................................................... 17
2.7 Upgrading to Higher Grading Level in South Africa ................................ 18

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2.8 Financial Position .......................................................................................... 21
2.9 Importance of Project Management in the Construction Process ........... 21
2.10 Evolution of Project Management Software ............................................ 22
2.11 Mainstreaming Computer Applications in Universities ......................... 24
2.12 Driving Forces Behind the Implementation of ICT in Project
Management Software ........................................................................................... 26
2.13 Level of Adoption of Project Management Software in the Construction
Industry ................................................................................................................... 27
2.14 Barriers to Adopting ICT Project Management Software Globally ...... 28
2.15 Barriers to Adopting ICT Project Management Software in South
Africa 29
2.16 Available Project Management Software in SA ...................................... 32
2.16.1 Procore ...................................................................................................... 32
2.16.2 Microsoft Dynamics NAV ....................................................................... 32
2.16.3 Contract Communicator ........................................................................... 33
2.16.4 MS Project ................................................................................................ 33
2.16.5 Open Project ............................................................................................. 33
2.16.6 Primavera Software .................................................................................. 33
2.16.7 Comparison of the Software ..................................................................... 34
2.17 Benefits of ICT Project Management Software ....................................... 34
2.18 Conclusion ................................................................................................... 36
3. RESEARCH METHOD ..................................................................................... 38
3.1 The Sample Interviewed ............................................................................... 41
3.2 Sample Size .................................................................................................... 41
3.3.1 Pilot Testing .............................................................................................. 42
3.3.2 Semi-Structured interview ........................................................................ 42
3.3.3 Open-ended Interview .............................................................................. 43
4. DATA COLLECTION AND EVALUATION ................................................. 45
4.1 Introduction ...................................................................................................... 45
4.1.1 Pilot Testing .............................................................................................. 45
4.1.2 Pilot Test Questions: ................................................................................. 46
4.1.3 Government Development Programmes .................................................. 49
4.1.4 Selection Criteria ...................................................................................... 49

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4.2 Interview Process .......................................................................................... 50
4.3 Software used prior to CIDB grading ......................................................... 53
4.4 Web-based Vs. Desktop Application ........................................................... 57
4.5 Cellphone Contractor ................................................................................... 60
4.5 Comparison of Different Age Groups ......................................................... 62
4.6 Transition Process ......................................................................................... 67
4.7 Key Findings .................................................................................................. 69
4.9 Government Policies ..................................................................................... 72
4.10 Time taken to upgrade CIDB rating ......................................................... 74
4.10.1 Timeline of Projects Taken on by Each Respondent ................................ 75
4.11 Discussion on Transition ............................................................................ 80
4.12 Financial Position of Each Company ........................................................ 81
4.13 Comparison of Software Being Used As Grade 4 Contractors .............. 82
4.14 Benefits Realised Using New Software ..................................................... 87
4.15 Comparison between Grade 3 and Grade 4 ............................................. 90
4.16 Summary of Core Findings ........................................................................ 96
4.16.1 Mapping the Path for Small Contractors .................................................. 96
4.16.2 Tactical Decisions .................................................................................... 99
5. CONCLUSION AND RECOMMENDATIONS ............................................ 101
5.1 Conclusions .................................................................................................. 101
5.2 Recommendations for Small Contractors ................................................ 104
5.3 Providing Additional Support ................................................................... 106
References ................................................................................................................. 109
Appendix A: Data Collection Spread Sheet ........................................................... 114
Appendix B: Interview Questions ........................................................................... 115
Appendix C: Comparison of PM software features .............................................. 120
Appendix D: Participant Information Sheet and The Consent Form ................. 121
Appendix E: Ethics Application Form ................................................................... 123

 VII
LIST OF FIGURES

Figure Page

2.1 The first digital CPM analysis diagram from 1957 (EPM, 2011) ..................... 23
4.1 List of Emergent Themes .................................................................................. 52
4.2 Effective use of project management tools prior and after upgrade ................. 56
4.3 Project time line of respondent 1 ...................................................................... 75
4.4 Project time line of respondent 2 ...................................................................... 76
4.5 Project time line of respondent 4 ...................................................................... 77
4.5 Project time line of respondent 7 ...................................................................... 78
4.6 Project time line of respondent 8 ...................................................................... 79
4.7 Staff Prior to Upgrading CIDB Rating ............................................................. 92
4.8 Current Staff Employed ................................................................................... 93
4.9 Total construction works annual percentage change over the years in South
Africa (Industry Insight, 2014) ................................................................................... 98

V
  III
LIST OF TABLES

Table Page

1.1 Tender range for CIDB registered contractors from grade 1 to 9.....................4
2.1 Comparing SA’s purchasing parity of labour costs ......................................... .13
2.1.1 Comparing the UK’s purchasing parity of labour costs .................................... 14
2.1.2 Comparing the USA’s purchasing parity of labour costs .................................. 14
2.2 Evolution of technology and project management software through the years in
South Africa (Kwak, 2003) .............. ……………………………………………….. 24
4.1 Pilot Test data collection spread sheet .............................................................. 47
4.2 Web-based software vs. Desktop application software ..................................... 53
4.3 Comparison of software used before upgrade to after the upgrade .................. 58
4.4 Evaluation of software used prior to upgrade ................................................... 65
4.5 Contractors who upgrade their software first before upgrading their CIDB
rating………………………………………………………………………….............69
4.6 Comparison of time taken for each contractor to upgrade…………………. .... 75
4.7 Financial position from inauguration to current year ......................................... 82
A1 Data collection spread sheet ............................................................................ 114
A2 Comparison of PM software features …………………………….. ................ 120

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