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Article

Oluwaseyi Alabi Awodele, Douglas Omoregie Aghimien, Olutayo Gabriel Akinkunmi and Clinton Ohis Aigbavboa

Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve…

Abstract

Purpose

Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve as a surviving strategy for construction contractors in a challenging economy.

Design/methodology/approach

The study adopted a mixed-methods design. An interview and questionnaire were used to harness information from 98 construction participants who have been involved in labour-only procured projects. These respondents were identified through snowballing. Frequency, percentage, mean item score, Mann–Whitney u-test and content analysis were used in analysing the data gathered.

Findings

Result revealed that participants are willing to execute more projects through this system because it gives considerable cost savings for clients and provides reduction in contractor’s risk and allows them to maintain healthy cash flow. The main factors influencing its usage are the client’s decision to procure materials, need for job at hand for contractors and the need for referrals from clients for subsequent jobs.

Practical implications

Findings of this study will assist contractors to understand the potential of this procurement system as a surviving option in a harsh economy. Small and medium contractors can make use of this available opportunity of having projects at hand at reduced risk to ensure continuous cash flow to keep their organisations afloat.

Originality/value

The contribution of this study to the body of knowledge lies in its provision of a reasonable insight on the inherent nature of a procurement system as a surviving strategy for contractors unlike the usual assessment of the generic survival strategies adopted in other studies.

Details

Journal of Engineering, Design and Technology, vol. 17 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

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Article

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

This research paper concentrates on the reasons why the labor-only procurement of construction services is being commonly used in Nigeria. Adopting a survival strategy for hard economic times of accepting labor-only work benefits small- and medium-sized contractors by providing quick sources of cash flow and by allowing them to build more client relationships, while small private clients benefit from cost savings and from controlling material quality.

Originality/value

The briefing saves busy executives, strategists, and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 35 no. 8
Type: Research Article
ISSN: 0258-0543

Keywords

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Article

Nicholas Chileshe, David John Edwards, Neema Kavishe and Theo C. Haupt

The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in…

Abstract

Purpose

The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing countries are fraught with challenges that often engender bidding practices (such as collusion through price fixing and intentional lower bidding) and threaten business survival. Therefore, in the quest to better understand these challenges and viable advocate solutions for overcoming them, this paper aims to identify the key challenges impacting the bid decision process by small indigenous building contractors in Dar es Salaam, Tanzania, and establish the strength of their relationship between the pairs of key challenges.

Design/methodology/approach

A comprehensive literature review was conducted to identify nine challenges impacting the bid decision of indigenous building contractors in Tanzania, which were used to design a questionnaire survey. Data collected were analysed using descriptive statistics, mean score, inferential statistics (One sample t-tests), Kendall’s concordance and correlation analysis.

Findings

Challenges identified from a literature review were empirically tested using survey responses accrued from 33 participating small indigenous building contractors in Dar es Salaam, Tanzania. The findings illustrate that lack of liquidity, profit returns, lack of equipment, lack of experience of several works and procurement procedures are perceived as being the five most critical challenges. Project location, site accessibility and lack of labour were least critical. The major finding from the correlation analysis was the existence of the strong and positive correlation between “project location” and “site accessibility”.

Research limitations/implications

The study is limited by its sample and geographical settings which focussed and confined the results on one country, Tanzania. However, the findings can be considered as important for other developing countries wishing to gain insights into the challenges impacting bid decisions.

Practical implications

Measures for addressing the identified challenges impacting the bidding decisions of the indigenous small building contractors would be undertaken. The findings will enable contractors to not only reconcile the challenges with the industry and in so doing benefit both themselves and the clients but also enable them to be better prepared to deliver contractual obligations and generate socio-economic wealth. Government and policymakers will also be able to appropriately develop macro interventions for managing these challenges, which could be custom-tailored to indigenous small contractors. Finally, improving the ability of local firms to compete in the construction industry has been recognised as having the potential of advancing socio-economic development within the comity of developing countries.

Originality/value

The study enhances government, client and practitioners’ understanding of the challenges affecting the bidding practices among the indigenous building contractors in Tanzania. This area of investigation has previously been under explored particularly sub-Saharan Africa.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 6
Type: Research Article
ISSN: 1726-0531

Keywords

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Abstract

Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the topic remain disintegrated and because both lack a sophisticated account of how social structure and interdependencies among organizations affect decline. This paper develops a perspective which tries to overcome these problems. The perspective explains decline through an understanding of how social ties and resource dependencies among firms affect market structure and the resulting behavior of firms within it. Evidence is furnished that supports the assumptions of the perspective and provides a basis for specifying propositions about the effect of network structure on organizational survival. I conclude by discussing the perspective’s implications for organizational theory and economic sociology.

Details

Collaboration and Competition in Business Ecosystems
Type: Book
ISBN: 978-1-78190-826-6

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Article

Brian Uzzi

Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on…

Abstract

Analysis of organizational decline has become central to the study of economy and society. Further advances in this area may fail however, because two major literatures on the topic remain disintegrated and because both lack a sophisticated account of how social structure and interdependencies among organizations affect decline. This paper develops a perspective which tries to overcome these problems. The perspective explains decline through an understanding of how social ties and resource dependencies among firms affect market structure and the resulting behavior of firms within it. Evidence is furnished that supports the assumptions of the perspective and provides a basis for specifying propositions about the effect of network structure on organizational survival. I conclude by discussing the perspective's implications for organizational theory and economic sociology.

Details

International Journal of Sociology and Social Policy, vol. 17 no. 7/8
Type: Research Article
ISSN: 0144-333X

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Article

Adnan Enshassi, Sherif Mohamed and Ala'a El Karriri

The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the…

Abstract

Purpose

The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the contracting parties operating in the Gaza Strip, Palestine.

Design/methodology/approach

The objectives of this research were investigated through a postal questionnaire, which covered a randomly selected sample of 63 contractors, 29 clients and 13 consultants operating in the construction industry in the Gaza strip. The questionnaire was structured based on related literature, the pilot study and actual factors affecting bidders' decisions to bid or not that arise from special conditions in the Gaza Strip. A total of 78 factors that affect the bid/no bid decision were identified. These factors were then ranked according to their relative importance to contracting parties operating in the Gaza Strip, Palestine.

Findings

The results illustrate that the financial capability of the contractors, the financial capability of the clients, the financial values of the project, the due date of the payments, the availability of construction raw materials in local markets, and the stability of the construction industry were the most critical factors affecting the bid/no bid decision, as agreed by all respondents.

Originality/value

The paper provides supportive practical solutions for contractors, clients and consultants to enhance and improve bidding decisions. It is recommended that clients and consultants consider the financial capabilities, technical capabilities and staff competencies of the contractors during the awarding stage, and not simply focus on the lowest bid.

Details

Journal of Financial Management of Property and Construction, vol. 15 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

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Article

Yat Hung Chiang, Jing Li, Tracy N.Y. Choi and King Fai Man

The purpose of this paper is to investigate whether a few leading Hong Kong construction firms are also efficient contractors. Theoretically, market leaders can exploit…

Abstract

Purpose

The purpose of this paper is to investigate whether a few leading Hong Kong construction firms are also efficient contractors. Theoretically, market leaders can exploit the virtue of economy of scale, learning curve and cost leadership to consolidate their competitiveness. However, if market share is key success factor for firms to become and stay competitive, smaller contractors will be further marginalized if the construction market continues to shrink as Hong Kong's economy approaches maturity. Hence the research question is: Have a few leading contractors been taking advantage of their market size to be efficient in Hong Kong?

Design/methodology/approach

Based on the Data Envelopment Analysis Assurance Region (DEA_AR) model, the efficiency scores of 17 major Hong Kong contractors are compiled over the last ten years. DEA is a non‐parametric approach to examine the relative efficiency among different firms, in terms of output/input ratios. Unlike traditional I‐O analysis which relies on a static table of coefficients, DEA does not require any priori and usually subjective weights for inputs or outputs.

Findings

The results identify efficient contractors, among which the three leading ones (China State Construction, Shui On Construction and Yau Lee Holdings) have captured the majority of housing construction contract values. Nevertheless, only China State Construction has ranked consistently as most efficient over time. The efficiency scores of Shui On Construction have decreased successively from 2002 to 2009, and it has been the least efficient contractor from 2006 to 2009. Yau Lee Holdings has a V‐curve of efficiency scores.

Originality/value

This study represents the first attempt to adopt a DEA_AR model to evaluate construction contractors' efficiency, which reduces the number of zeroes and the variation in weights for estimation and enhances the adequacy for individual contractor's efficiency scores, compared to other types of DEA models such as the CCR model and the BCC model.

Details

Journal of Facilities Management, vol. 11 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

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Article

Sarfo Mensah, Gabriel Nani and Joshua Ayarkwa

There is low adoption rate of existing environmentally sustainable construction frameworks. Contractors have dwindled capability to adapt to environmentally sustainable…

Abstract

Purpose

There is low adoption rate of existing environmentally sustainable construction frameworks. Contractors have dwindled capability to adapt to environmentally sustainable construction (ESC) towards achievement of SDGs. The aim of this paper is to develop a framework that leverages both theoretical and practical aspects of sustainable construction to enable contractors' adaptation to ESC at the micro level.

Design/methodology/approach

Due to the social constructivism orientation of the objectives of this research, abductive approach and qualitative research strategy were adopted. Data were obtained through interviews and validation focus group discussion. Content analysis and thematic template analyses techniques were employed to conduct qualitative data analyses.

Findings

There are peculiar ESC barriers that need to be overcome by contractors in the study area. Legislative and financing efforts of stakeholders are key contractors' ESC adaptation drivers. Contractors in less affluent societies, such as Ghana, require high resilience, dense and centralized social network structures and isomorphic and coercive drivers to be able to adapt to ESC.

Research limitations/implications

The scope of this research is limited to the data gathered from large construction firms in Ghana, a developing country in the sub-Saharan region.

Originality/value

This is one of the first papers that provide guidelines on developing capability of contractors in a developing country to adapt to ESC. The paper addresses the challenge in the ecological modernization theory by adducing empirical evidence to prescribe guidelines on how contractors can increase rate of efficiency through collaborative strategies that engender ESC.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

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Article

J.O. Kehinde and T.O. Mosaku

The paper aims to report the research findings on the assets structure of medium‐sized building construction contracting firms in Nigeria and its implications on their operation.

Abstract

Purpose

The paper aims to report the research findings on the assets structure of medium‐sized building construction contracting firms in Nigeria and its implications on their operation.

Design/methodology/approach

The survey approach was adopted for the study. Two sets of data were collected: secondary source data from audited financial statements and primary source data using a structured questionnaire administered to management personnel of contracting firms. Descriptive statistical analysis and ratio analysis were employed for data analysis.

Findings

The results show that the assets structure of these firms comprise of fixed assets being less than half of the total assets, which imply that a greater portion of the total assets is current assets (held mainly as account receivables that sometimes may not be available within one year). There is generally a low investment in fixed assets from earnings over the years. The assets structure of these firms could impact on their ability to compete successfully on some project types especially where hiring options for plant and equipment are unavailable.

Originality/value

The research provides information on the assets structure of the medium‐sized building construction contractors in Nigeria. The study points to the need for adoption of a more proactive approach by building contractors in the face of a fluctuating workload.

Details

Engineering, Construction and Architectural Management, vol. 13 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

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Article

Karl Blyth and Ammar Kaka

Cash flow forecasting is an indispensable tool for construction companies, and is essential for the survival of any contractor at all stages of the work. A simple and fast…

Abstract

Purpose

Cash flow forecasting is an indispensable tool for construction companies, and is essential for the survival of any contractor at all stages of the work. A simple and fast technique of forecasting cash flow accurately is required, considering the short time available and the associated cost. Seeks to examine this issue.

Design/methodology/approach

The paper argues that instead of producing an S‐curve that is based on historical projects combined (state‐of‐the‐art is based on classifying projects into groups and producing a standard curve for each group simply by fitting one curve into the historical data), here the attempt is to produce an individual S‐curve for an individual project. A sample of data from 50 projects was collected and 20 criteria were identified to classify these projects. Using the most influential criteria, a multiple linear regression model was created to forecast the programme of works and hence the S‐curves. A further six projects were used to validate and test the model.

Findings

The results of the model developed in this paper were compared with previous models and evaluated. It is concluded that the model produced more accurate results than existing value and cost models.

Originality/value

The paper proposes an alternative and novel approach to the development of standard value and cost commitment S‐curves. This approach is based on a multiple linear regression model of the programmes of works.

Details

Engineering, Construction and Architectural Management, vol. 13 no. 1
Type: Research Article
ISSN: 0969-9988

Keywords

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