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Failure factors–a comparative study of private and government construction firms

Yogeshwar V. Navandar (Department of Civil Engineering, National Institute of Technology Calicut, Calicut, India)
Chintaman Bari (Department of Civil Engineering, Sardar Vallabhbhai National Institute of Technology, Surat, India)
P. G. Gaikwad (Civil Engineering Department, Sardar Patel College of Engineering, Mumbai, India)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 10 June 2021

Issue publication date: 24 June 2022

469

Abstract

Purpose

The purpose of the present study is to examine the failure factors for the construction firms in a developing nation. Furthermore, the comparison of failure factors for private and government firms are evaluated.

Design/methodology/approach

In the present study, comparison between private and government construction firms is done in the context of a construction firm failure. About 60 construction firms were selected in and around the Nashik region for the investigation, where a simple multi-attribute rating technique (SMART) is used for analysis purpose.

Findings

It is found that for private firms (private contractors and builders) lack of experience is the major factor for failure of the business as against lack of managerial experience is a critical factor in case of a government contractor.

Practical implications

The outcome of the present study will be used to guide the policymakers during the implementation of governmental and private projects in order to lessen the construction project failures.

Originality/value

Construction company failure is an important aspect in developing countries like India. The limited studies were available in literature which shows failure factors for government and private firms and distinguished them. Hence, the present study extends the construction company failure literature by focusing on government and private firms. Also, the study provides some theoretical guidelines for management to avoid construction company failure in India.

Keywords

Acknowledgements

The authors are very much thankful to the director Mr. Anil B. Lodha, ABL INFRA. LTD, Nashik, for their cooperation. The authors are also thankful to anonymous reviewers for their insightful comments for enrichment of the manuscript.

Citation

Navandar, Y.V., Bari, C. and Gaikwad, P.G. (2022), "Failure factors–a comparative study of private and government construction firms", Engineering, Construction and Architectural Management, Vol. 29 No. 6, pp. 2495-2513. https://doi.org/10.1108/ECAM-03-2020-0184

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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