2014. Proceedings Third NMMU Construction Management Conference

3rd CONSTRUCTION MANAGEMENT CONFERENCE

Edited by

Dr Fidelis A Emuze

ISBN: 978-1-920176-99-0

Published by: Department of Construction Management Nelson Mandela Metropolitan University PO Box 77000 Port Elizabeth 6031, South Africa

Correspondence: All correspondence pertaining to the 3rd CM Conference should be sent to: Dr Fidelis A. Emuze Department of Built Environment Central University of Technology, Free State Private Bag X20539 Bloemfontein 9300, South Africa Email: [email protected]

30 November – 2 December 2014 Protea Marine Hotel, Port Elizabeth, South Africa

FOREWORD

The Organising Committee of the 3rd Construction Management Conference welcome you to Port Elizabeth, South Africa.

The Conference provides an international forum for researchers and practitioners from to address fundamental problems and constraints that affect the Architecture, Engineering, and Construction (AEC) sector. The broad objectives of the conference include to:

 Provide a forum for interaction between academics and practitioners;  Provide an internationally recognised, accredited conference;  Disseminate recognised best practices, and  Contribute to the construction management body of knowledge.

The conference brings researchers, academics, and practitioners in higher education, government, and the private sector together in a single forum. The scope and topics that are organised around the conference theme are broad. In specific terms, the conference seeks responses to critical questions, which include:

 What changes would lead to an improvement in performance?  What are the barriers to change in practice?  How can business and project aspects of construction management be promoted?  How can education, training, and professional development be improved?  How can skills better be developed and transferred?  How can management difficulties be addressed?  How can efficiency and sustainability become engendered in the AEC sector?

The internationally peer reviewed and edited proceedings are thus aimed at contributing to the body of knowledge relative to the science and practice of construction as well as the improvement of construction management, teaching, learning, research and practice in South Africa, and internationally.

Dr Fidelis A Emuze Chair: Academic Programme Bloemfontein, South Africa November, 2014

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ACKNOWLEDGEMENTS

The Chairs of the Technical and Academic Programmes of the 3rd Construction Management Conference are grateful to the Nelson Mandela Metropolitan University (NMMU), the Central University of Technology, Free State (CUT), other South African universities, and individuals for supporting the conference.

The work of the International Scientific Committee (ISC), who diligently compiled w refereed and edited papers, and published proceedings of the highest standard that satisfy the criteria for subsidy from the Department of Higher Education and Training (DHET) in South Africa, is highly appreciated. The support of Prof Winston Shakantu (NMMU) and Prof Alfred Ngowi (CUT) are warmly acknowledged. The efforts of Mrs Mariana Botes, Dr Brink Botha, Mr Chris Allen, Ms Katharina Herich, and Mr Mark Abrey of the NMMU Department of Construction Management; and Ms Zanelle Matsane, Mr Arno Ferreira, and Mr Thabiso Monyane, are also commended.

ORGANISING COMMITTEE

Prof John Smallwood (Technical Programme Chair) Dr Fidelis Emuze (Academic Programme Chair) Mr Mark Abrey (Webmaster) Mrs Mariana Botes (Administration – NMMU) Ms Zanelle Matsane (Administration – CUT)

DECLARATION

All the papers in these conference proceedings were double-blind reviewed at abstract and full paper stage by members of the Scientific Committee. This process entailed detailed reading of the abstracts and papers, reporting of comments to authors, modification of papers by authors whose papers were not rejected by the reviewers, and re-evaluation of revised papers to ensure quality of content.

THE PEER REVIEW PROCESS

To maintain and assure the quality of the conference proceedings and comply with the requirements for subsidy from the Department of Higher Education and Training (DHET) in South Africa, a rigorous two-stage peer review process by no less than two acknowledged experts in the field was followed. In this context, each abstract received was twice blind reviewed in terms of:

 Relevance to conference theme and objectives;  Originality of material;  Scientific rigour, and  Contribution to knowledge.

Authors, whose abstracts were accepted, after the stage one review process was completed, were provided with anonymous reviewers‘ comments and requested to submit their full papers noting and addressing these comments. Proof was required relative to the revisions by authors regarding the comments received. These resubmitted papers were twice blind reviewed again in terms of:

 Relevance to conference theme and objectives;  Originality of material;  Scientific rigour – Conceptual and Theoretical framework and Methodology, and  Contribution to knowledge.

Authors whose papers were accepted after this second review were provided with additional anonymous reviewers‘ comments and requested to submit their revised full papers. These final papers were only included in the conference presentation programme and the conference proceedings after evidence was provided that all comments were appropriately responded to, having been double peer-reviewed for publication. At no stage was any member of the Scientific and Technical Committee or the editor of the proceedings involved in the review process related to their own authored or co-authored papers.

The role of the editor was to ensure that the final papers incorporated the reviewers‘ comments and arrange the papers into the final sequence as captured on the CD-ROM and Table of Contents. Of the 59 abstracts originally received, only 27 papers were finally accepted for presentation at the conference and inclusion in these proceedings, representing a rejection rate of 54.2%. To be eligible for inclusion these papers were required to receive a minimum score of 3 out of 5 allocated by the peer reviewers during the final review process.

INTERNATIONAL SCIENTIFIC COMMITTEE

The paper peer review exercise for this international conference was expedited through the voluntary contributions of experts from various countries. Sincere appreciations go to the under listed researchers that assisted in the review of abstracts and papers for the Conference.

Prof Ayman Othman, British University in Egypt, Egypt Prof Evelyn Ai‐Lin Teo, National University of Singapore, Singapore Prof Sena A Agyepong, Ashesi University College, Ghana Prof Tinus Maritz, University of Pretoria, RSA Prof Low Sui Pheng, National University of Singapore, Singapore Prof Herbert Uzoegbo, University of the Witwatersrand, RSA Prof Chien-Ho Ko, National Pingtung University of Science & Technology, Taiwan Prof Stella Zubairu, Federal University of Technology, Minna, Nigeria Prof Salman Azhar, Auburn University, USA Prof Hamimah Adnan, University Teknologi MARA, Malaysia Prof Ricky Best, Bond University, Australia Prof Esther Obonyo, University of Florida, USA Prof FK Omole, Federal University of Technology, Akure, Nigeria Prof Willy Sher, University of Newcastle, Australia Prof Low Sui Pheng, National University of Singapore, Singapore Prof Miimu Airaksinen, VTT, Finland Prof S Mohamed, Griffiths University, Australia Prof Edward Badu, Kwame Nkrumah University of Science and Technology, Ghana Prof SE Owusu, Kwame Nkrumah University of Science and Technology, Ghana Prof Joshua Ayarkwa, Kwame Nkrumah University of Science and Technology, Ghana Prof Paul Alagidede, University of the Witswatersrand, RSA Prof I Choudhury, Texas A&M University, USA Prof Samuel Laryea, University of the Witwatersrand, RSA Prof Emmanuel Achuenu, University of Jos, Nigeria Dr Rodney Milford, Construction Industry Development Board, RSA Dr Chika Udeaja, Northumbria University, UK Dr Divine Ahadzie, Kwame Nkrumah University of Science and Technology, Ghana Dr Paul Ho, City University of Hong Kong, China Dr Mohammed Ali Berawi, University of Indonesia, Indonesia Dr Abimbola Windapo, University of Cape Town, RSA Dr Nicholas Chileshe, University of South Australia, Australia Dr Geraldine Kikwasi, Ardhi University, Tanzania Dr Frank Fugar, Kwame Nkrumah University of Science and Technology, Ghana Dr Jasper Mbachu, Massey University, New Zealand Dr Senthikumar Venkatachalam, University of the Witwatersrand, RSA Dr AO Aiyetan, Central University of Technology, Free State, RSA Dr RA Jimoh, Federal University of Technology, Minna, Nigeria Dr John Ameh, University of Lagos, Nigeria Dr BZN Gasa, The Elilox Group, RSA Dr Nthatisi Khatleli, University of the Witwatersrand, RSA Dr Ezekiel Chinyio, University of Wolverhampton, UK Dr Nii Ankrah, University of Wolverhampton, UK

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Dr JA Fapohunda, Cape Penisula University of Technology, RSA Dr Innocent Musonda, University of Johannesburg, RSA Dr Obuks Ejohwomu, Bell University of Technology, Nigeria Dr Justus Agumba, University of Johannesburg, RSA Dr Suvi Nenonen, TKK, Finland Dr Robert Crawford, University of Melbourne, Australia Dr Grace KC King, University of Technology, Sydney, Australia Dr Bernard K. Baiden, Kwame Nkrumah University of Science and Technology, Ghana Dr E Adinyira, Kwame Nkrumah University of Science and Technology, Ghana Dr PO Adjei, Kwame Nkrumah University of Science and Technology, Ghana Dr Bing Li, Xiamen University, China Dr Ahmed Doko Ibrahim, Ahmadu Bello University, Zaria, Nigeria Dr A Hartmann, University of Twente, The Netherlands Dr Manya Mooya, University of Cape Town, RSA Dr N Blismas, RMIT University, Australia Dr John Ebohon, De Montfort University, UK Dr E Ibem, Covenant University, Nigeria Dr Dillip K Das, Central University of Technology, Free State, RSA Dr Bankole O Awuzie, Central University of Technology, Free State, RSA Dr Clinton O Aigbavboa, University of Johannesburg, RSA Ms Llewellyn van Wyk, Council for Scientific and Industrial Research, RSA Mr Theuns Knoetze, Council for Scientific and Industrial Research, RSA

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TECHNICAL COMMITTEE

Prof John Smallwood, Nelson Mandela Metropolitan University, RSA Prof Alfred Ngowi, Central University of Technology, Free State, RSA Prof George Ofori, National University of Singapore, Singapore Prof Winston Shakantu, Nelson Mandela Metropolitan University, RSA Prof PD Rwelamila, University of South Africa, RSA Prof Charles Egbu, London South Bank University, UK Prof Hojjat Adeli, Ohio State University, USA (Honorary) Prof Alfred Talukhaba, Tshwane University of Technology, RSA Prof WD Thwala, University of Johannesburg, RSA Prof PED Love, Curtin University of Technology, Australia Prof David Edwards, Birmingham City University, UK Prof Benedict Ilozor, East Michigan University, USA Dr Nicholas Chileshe, University of South Australia, Australia Dr Geraldine Kikwasi, Ardhi University, Tanzania

HOSTS

Department of Construction Management

Department of Built Environment

ENDORSEMENT

The South African Council for the Project and Construction Management Professions (SACPCMP)

November 2014

Dear Author,

PEER REVIEW PROCESS: 3rd CM CONFERENCE: PORT ELIZABETH, SOUTH AFRICA 2014

I confirm that the following peer review process was strictly undertaken in this conference. Because of the need to maintain and assure the quality of the conference proceedings and comply with the requirements for subsidy of the South African Department of Higher Education, a rigorous two-stage peer review process by no less than two acknowledged experts in the field was followed. In this context, each abstract received was twice blind reviewed in terms of:

 Relevance to conference theme and objectives;  Originality of material;  Academic rigour;  Contribution to knowledge, and  Research methodology.

Authors whose abstracts were accepted after the stage one review process was completed were provided with anonymous reviewers‘ comments and requested to submit their full papers noting and addressing these comments. Evidence was required relative to the action taken by authors regarding the comments received. These resubmitted papers were twice blind reviewed again in terms of:

 Relevance to conference theme and objectives;  Originality of material;  Academic rigour;  Contribution to knowledge;  Research methodology and robustness of analysis of findings;  Empirical research findings, and  Critical current literature review.

Authors whose papers were accepted after this second review were provided with additional anonymous reviewers‘ comments and requested to submit their revised final papers. These final papers were only included in the conference presentation programme and the conference proceedings after evidence was provided that all comments were appropriately responded to, having been multiple peer-reviewed for publication.

At no stage was any member of the Scientific and Technical Committee or the editor of the proceedings involved in the review process related to their own authored or co- authored papers. The role of the editor was to ensure that the final papers incorporated the reviewers‘ comments and arrange the papers into the final sequence as captured on the CD-ROM and Table of Contents.

Of the 59 abstracts originally received, only 27 papers were finally accepted for presentation at the conference and inclusion in these proceedings, representing a rejection rate of 54.2%. To be eligible for inclusion these papers were required to receive a minimum score of 3 out of 5 allocated by the peer reviewers during the final review process.

Best wishes

Dr Fidelis A Emuze Chair: Academic Programme Bloemfontein, South Africa

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TABLE OF CONTENTS

FOREWORD ...... iii

ACKNOWLEDGEMENTS...... iv

ORGANISING COMMITTEE ...... v

DECLARATION ...... v

THE PEER REVIEW PROCESS ...... vi

INTERNATIONAL SCIENTIFIC COMMITTEE ...... vi

TECHNICAL COMMITTEE ...... ix

HOSTS...... x

ENDORSEMENTS ...... x

Political Risk Factors Influencing Export of Construction Services into African Markets: A Preliminary Survey ...... 16 OA Windapo, SJ Odediran, LO Oyewobi and KS Cattell KS

The challenges of implementing public private partnerships – a decision-making framework for Zambia ...... 25 Peter M Mukalula and Mundia Muya

Perception of construction industry stakeholders on the critical attributes that contribute to project success ...... 34 Yvan Nimbona and Justus N Agumba

Project and construction managers‘ leadership characteristics in the South African construction industry ...... 44 M Liphadzi and CO Aigbavboa

A Project Management Approach to Improve Housing Delivery ...... 52 B Botha, Roy Cumberlege and Andrew Johnson

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Fundamental factors that trigger the shortfall of skilled artisans in South African construction ...... 61 Iruka Anugwo and Wayne Draai

Factors Influencing Skilled Labour Supply in the South African Construction Industry ...... 69 AO Windapo and SJ Odediran

Experiences of women in the construction industry: A case of South Africa ...... 80 GT Dlamini and WM Shakantu

An empirical analysis of the factors which influence construction workers‘ nutrition: A pilot study ...... 89 Chioma Okoro, Innocent Musonda and Justus Agumba

An exploratory study on the reduction of the cost of non-conformance to projects requirements in the Swaziland construction ...... 100 XN Mashwama and CO Aigbavboa

Quality Management practices in South African subsidised public housing schemes. 108 RM O‘Maker, CO Aigbavboa and WD Thwala

Determinants of employee job satisfaction and the influence of job dissatisfaction on absenteeism and employee turnover, in the Gauteng Province ...... 117 MP Lesailane, CO Aigbavboa and WD Thwala

An assessment of the barriers in adoption and implementation strategies of building information modelling (BIM) in South African construction ...... 126 TG Kekana, CO Aigbavboa and WD Thwala

Advantages of Including Core Real Estate Topics in Bachelor of Construction Management and Quantity Surveying Curricula in South Africa ...... 134 Samuel HP Chikafalimani, Ganesan Reddy and Krishna Ramphal

Proper implementation of development programmes as a key driver for creating construction industry interest among youth in Western Cape, South Africa ...... 142 MD Kazadi and L Wentzel

An architectural model for a healthier and safer construction industry in South Africa ...... 150 Craig Goldswain and John Smallwood

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Employers‘ attitude towards health and safety (H&S) improvement in the construction industry ...... 161 Z Mustapha, CO Aigbavboa and WD Thwala

Influence of the macro-economic environment on the prices of the construction material in South Africa...... 168 Adewumi Babalola1 and Fanie Buys

Assessing contractors‘ cash flow forecasting process capabilities ...... 174 Muhammad Abdullahi, Yahaya M Ibrahim, Ahmed D Ibrahim and Hassan A Ahmadu

Causes and effects of disputes on construction projects in Johannesburg, South Africa ...... 186 L Maseko, CO Aigbavboa, and WD Thwala

An empirical analysis of dispute causation in the Limpopo construction industry ...... 195 ME Thobakgale and CO Aigbavboa

Exploratory study of critical success factors of road infrastructure projects in Abuja, Nigeria: A probabilistic approach ...... 204 Ibrahim Binchak, Emmanuel Achuenu and Ache Achuenu

Direct and indirect causes of rework and their impact ...... 212 AO Aiyetan

An evaluation of the physical conditions of on-campus students‘ hostel blocks in a public Nigerian university ...... 220 AD Adamu and WM Shakantu

Construction risk management through the use of Contractors‘ All Risk (CAR) insurance policy: A South African case study ...... 226 S Musundire, CO Aigbavboa and WD Thwala

Perception of effectiveness of written communication in construction projects in Nigeria ...... 234 Anthony Ujene, Uche Edike and Emmanuel Achuenu

Knowledge of the Benefits of Green Building – Architects‘ Perspectives ...... 240 DJ Hoffman and E König

Political Risk Factors Influencing Export of Construction Services into African Markets: A Preliminary Survey OA Windapo, SJ Odediran, LO Oyewobi and KS Cattell KS4 Department of Construction Economics and Management, University of Cape Town, South Africa, [email protected] [email protected] [email protected] [email protected]

Abstract International risks influencing overseas construction markets were examined by earlier studies, political risk factors influencing export of construction services into African markets motivated this research due to recent political events in the continent. To investigate the impact of political risk on export of construction services, the paper examines whether there are significant political risk factors influencing export of construction services into African markets. The paper is a preliminary convergence mixed method research. Stratified random sampling of 597 construction companies with work categories in civil engineering and general buildings, and on grades 7, 8 and 9 of cidb in South Africa was made. This research design was adopted to explore South Africa construction companies exporting construction services into African markets. Data collected from 58 construction companies who responded to the online survey and interviews were analysed using descriptive (mean score) and inferential (factor analysis) statistics. It emerged that the key political risk factors influencing entry decision into African construction markets are red tape (legislative bottlenecks), unstable government, corruption, administrative delays, and political uncertainty. The paper concludes that there are significant political risk factors influence exports of construction services into African markets. The paper will provide international construction companies with the checklist of significant political risk factors in making strategic entry decision into African construction markets.

Keywords: Africa, construction, export, market, risks

Introduction

Construction market has amalgamated to become world (global/international) market due to the implication of globalization (Ngowi, Pienaar, Talukhaba & Mbachu, 2005). The continuous growth of the global construction market along with its growing openness to international firms has created new business opportunities for many international engineering and construction firms (Park, Lee, Jeong & Han, 2014). The World‘s construction market was US$3 trillion in 1998 (Reina & Tulacz, 2010) and grown to approximately US$ 4.6 trillion as at 2006 (Global Insight, 2007). The revenue of the Top 225 international contractors from projects outside their home countries was 383.78 billion in 2009 and the biggest increases in international contracting revenue came from Africa. International revenue in central and southern Africa for the top 225 grew by 31.7% to $27.52 billion in 2009 from $21.04 billion in 2008. North Africa grew by 30.8% among the Top 225 to $29.29 billion in 2009 from $21.04 billion in 2008 (Reina & Tulacz, 2010).

This implies that African construction market is becoming a significant share of international construction markets. However, construction markets in Africa is dominated by contractors from developed nations like US, Europe, Asia and other regions (Bon & Crosthwaite, 2000; Ofori, 2003; Reina & Tulacz, 2010; Deloitte & Touche, 2013) while participation of African- based contractors on the continent is low (Reina & Tulacz, 2010). The reason why international contractors from other continents dominate African construction markets demand investigation. Overseas development projects are risky compare to typical risks that domestic project face; and overseas development projects have unique risks and tend to have high possibility of loss/failure (Han et al., 2007; Li, 2009). Risk is a critical issue for overseas business which affects every aspect of firms‘ internal and external operations, and decision to expand to international markets (Gunhan and Arditi, 2005; Park et al., 2014). Previous studies have categorized risk factors in international markets into political, economic/financial, social/natural, cultural and project environment risks (Nawaz & Hood, 2005; Li, 2009; Park, et al., 2014). The impact of political risks are often more critical and sensitive to international construction markets (Al Khattaba, Anchorb & Daviesb, 2007; Ozorhon et al., 2007; Li, 2009; Xiaopeng & Pheng, 2013), and political risks are unfamiliar to foreign firms compare with those in the domestic environment (Xiaopeng & Pheng, 2013). Political risks should not be overlooked when managing overseas projects (Wang et al., 1999). Alas, previous studies pay little attention to political risks in making strategic entry decision into international construction markets and there is dearth of researches on overseas construction and international risks in African construction markets. This paper forms part of a preliminary investigation on export of construction services among South African construction companies with a view to exploring those exporting construction services into African markets. The paper identifies and explores the political risk in African construction markets with a view to establishing whether there are significant political risk factors influencing export of construction services into African construction markets.

Review of Political Risk Factors

Political risks management remains a significant business and project issue today in international business context (Jakobsen, 2010; Quer et al., 2011). Political risk is factors associated with the political decisions, political events or societal events in a country. Political risk factors have been classified into various groups namely the risks of adverse consequences arising from political events (Root, 1972) or government action(s) (Aliber, 1975) known as ―intervention‖ (Zhuang et al., 1998) and the risks of change or discontinuity in the government business environment as a result of political change (Robock, 1971). The political events identified in previous studies (Bing et al., 2005; Al Khattab et al., 2007; Han et al., 2007; Sachs et al., 2008; and Ling & Hoang, 2010) include: (1) political events (e.g. revolutions, demonstrations, wars, civil strife, terrorism); (2) government action or inaction (e.g., expropriation, confiscation or nationalization, restrictions, bribery and corruption, discriminate treatment, change in law, regulation and policy); and (3) power group‘s action (e.g., union activists and environmental activists). Political risk factors emanated from government action(s) or intervention(s) could also be attributed to discriminatory actions/inactions in the host country that would result in unexpected changes or discontinuities in the business environment and unwanted potentials effect on the profit or other goals of an enterprise (Xiaopeng & Pheng, 2013). However, political factors could also be in forms of inconsistency in policies, changes in laws and regulations, restrictions in fund repatriations and import restrictions that will impact the business climate (Howell, 2001; Ozorhon et al., 2007).

Xiaopeng & Pheng (2013) reported a comprehensive list of 85 political risk factors that could influence entry decision into international construction markets. These factors originated through the review of quite numbers of the earlier studies (Hastak and shaked, 2000; Frynas and Mellahi, 2003; Al Khattab et al., 2007; Agarwal & Feils, 2007; Han et al., 2007; Alon & Herbert, 2009; Rios-Morales et al., 2009; Ozorhon et al., 2007). These factors were categorized into five groups which include those related to international environment, host country, industry specific issues, project specific issues and firm specific issues. Identification of the most significant political risk factors from the preceding studies was made for the purpose of this study. These include corruption, administrative delays, red tape (legislative bottleneck), unstable government, political uncertainty, and political orientations in form of dictatorship, inhumane practice and shortage of qualified administrators. Others include unsatisfactory tax administration, excessive government intervention in business, insufficient coordination between government agencies, lack of institutional capacity in government agencies, restrictions against foreign personnel, excessive local content regulations, discrimination against foreign construction companies, excessive price controls, insufficient coordination between government agencies and excessive requirements for purchase of supplies from local companies. These political factors formed the basis in designing research instrument to explore the experiences of South Africa construction companies in export of construction services into African markets.

Research Methodology

This paper identifies and examines the political risk factors influencing the export of construction services among grades 7, 8 and 9 construction companies in South Africa into African construction markets. Construction companies on grades 7, 8 and 9 are those whose revenues are in the ranges between R13, 000,000 to 40,000,000, R40, 000,000 to 130,000,000 and R130, 000,000 to no limit; and these are approximately equivalents of 1.3-4MillionUSD; 4-13MillionUSD and 13MillionUSD to no limit respectively. Data for this paper were collected through convergence mixed method research approach which combines the survey and interview of construction companies registered on grades 7, 8 and 9 on the Construction Industry Development Board (cidb) register. Those on the largest grades were selected for this study since Engineering News Record (ENR) ranking of international contractors is often based on those with the largest international revenues. Review of literature was undertaken to identify the significant political risk factors on international construction studies. These formed the constructs of the survey and interview questions. The study population comprised of construction companies registered on grades 7, 8 and 9 on the cidb contractors register. Selection of construction companies across provinces in South Africa was made using stratified random sampling technique since the highest grade of these companies were selected because of the focus of this study. A list of 707 construction companies as unit of analysis was obtained from cidb register in 2013 although work categories of some companies are more than 1. Those whose construction works category fall into civil engineering and general building were selected for this study. A total of 597 copies of questionnaire were sent to those on this grades using survey monkey since statistics on those actually exporting construction services was not available. 58 construction companies spanned across the three grades responded to the survey and were used for analysis. The response rate of 10% was obtained which provides insight into the proportion of South African construction companies exporting their services within African construction markets. From this same unit of analysis, a call was sent for interview and 8 construction companies volunteered to participate in the interview, which was conducted at different offices of the

18 responding companies in March 2014. Data collected were analysed using descriptive (mean score) and inferential statistics (factor analysis). Mean score ranked the perception of construction companies on the significant political risk factors influencing export decision while factor analysis was employed to reduce the identified political factors into major components.

Findings and Discussion

Background Information of the Construction Companies The capabilities of South African construction companies on grades 7, 8 and 9 in terms of their revenues were presented in the earlier section. Interviews conducted shows that, the 8 interviewed construction companies specialized in civil engineering (CE) and general building (GB). The level of involvement of South Africa construction companies in export of construction services from interview conducted shows that out of 8 construction companies, 1 company is an expanding exporter, 3 are continuing exporters, 3 new exporters and 1 non- exporter respectively. The construction services export of these construction companies was highly concentrated in Namibia, Botswana, Swaziland, Mozambique, Angola and Ghana. These countries are from Southern African Development Community (SADC) excluding Ghana. Countries where they have moderate operations are Tanzania, Congo DR, Kenya, Nigeria, Sierra Leone, Mauritius and Madagascar while their operations in other countries are low.

Political Risk Factors influencing Export of Construction Services Table 1 shows the ranking of the identified political risk factors influencing export of construction services by South African construction companies into African markets. The top rated factors include red tape (legislative bottlenecks), unstable government (government term and change), corruption, administrative delays and political uncertainty. Other factors were also ranked high and are perceived to be significant to construction services export decision into African construction markets. These include extreme political orientation (dictatorship and inhumane practices), excessive government intervention in business, insufficient coordination between government agencies, lack of institutional capacity in government agencies, unsatisfactory tax administration, shortage of qualified administrators, restrictions against foreign personnel, excessive local content/pressure for local participation in foreign owned companies, discrimination against foreign construction companies, excessive price controls and excessive requirements for purchase of supplies from local companies.

These findings were supported by Howell (2001) and Ozorhon et al. (2007) who established that political risk originates from country political decision in form of inconsistency in policies, changes in laws and regulations; and import restrictions. Root (1972) also affirmed that political risks arise from political events; and government action(s) or intervention (Aliber, 1975; Zhuang et al., 1998) and political change/discontinuity in the government business (Robock, 1971). Political risk is further buttressed to be embedded in political events, discriminatory actions or inactions (by government or power groups) in the host country (Xiaopeng and Pheng, 2013). The possible political events identified by previous studies also include government action or inaction in form of expropriation, confiscation or nationalization, restrictions, bribery and corruption, discriminate treatment, change in law, regulation and policies (Ashley and Bonner, 1987; Wang et al., 1999; Hastak and shaked, 2000; Howell 2001; Bing et al., 2005; Al Khattab et al., 2007; Han et al., 2007; Sachs et al., 2008; and Ling and Hoang, 2010). Xiaopeng and Pheng (2013) also highlighted significant

19 political factors to include degree of stability of the government, project desirability to the host country, policy uncertainty, racism and xenophobia, unfavourable attitude towards foreign businesses, adverse legal rulings and strong relationship with governments which also support the findings of this paper.

Table 1: Political Factors influencing Construction Services Export to African Market Political Factors Mean Rank "Red Tape" (Legislative Framework Bottlenecks) 3.63 1 Unstable government (government term & change) 3.58 2 Corruption 3.56 3 Administrative delays 3.54 4 Political uncertainty (insufficient confidence in the political 3.50 5 system/commitment of successive governments) Political orientation in form of dictatorship, inhumane practices etc. 3.50 6 Excessive government intervention in business 3.50 7 Insufficient coordination between government agencies 3.49 8 Lack of institutional capacity in government agencies 3.44 9 Unsatisfactory Tax administration 3.34 10 Shortage of qualified administrators 3.26 11 Restrictions against foreign personnel 3.24 12 Excessive local content regulations 3.11 13 Discrimination against foreign construction companies 2.97 14 Excessive price controls 2.97 15 Excessive requirements for purchase of supplies from local companies 2.97 16

To further explore the political risk factors, the list of factors identified and ranked in Table 1 were subjected to factor analysis with each item treated as variables with the aim of reducing them to few significant factors which will be used in the description of closely related factor and those sharing the same features (Odediran and Babalola, 2014). The appropriateness of the list of political risk factors was tested using Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy (MSA) and the Bartlett‘s test of sphericity. The KMO value of a set of scores should be close to 1 for factor analysis to yield distinct and reliable factors (Field, 2005) and KMO measure of sampling adequacy should be greater than 0.5 for satisfactory factor analysis to proceed. The result obtained satisfied these conditions and is presented in Table 2. KMO value was 0.813 showing that factors analysis is appropriate for the type of data collected for this study, and Bartlett‘s test of sphericity showed that the result was highly significant (χ2 = 4.839E3, p< 0.01).

Table 2: Test of Sample Adequacy, Appropriateness and Reliability KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .813 Bartlett's Test of Approx. Chi-Square 573.545 Sphericity df 120 Sig. .000

The result of factor rotation yielded three (3) components as shown in Table 3 which classifies the identified political risk factors into various groups sharing equal and relevant features, and factor analysis also reduces a large number of factors to a smaller number of groups for modelling purposes. Each of the political risk factors was grouped as sub-factor under the three (3) components identified from factor loadings as shown in Table 3. The loading scores ranges from 0.565 to 0.940 which is averagely high compare to absolute 20 loading of 1. The closer the loading value is to 1, the more suitable and the strength of that particular factor. The rotated component matrix produced three (3) components and based on the common features of the factors within each of the groups, the components were named as political and officials obligations, local content requirements; and institutional and administrative system (Table 4). Component 1 named political and officials‘ obligations and the yielded rotated factors under this component are seven (7) which include unstable government, extreme political orientation, and political uncertainty, excessive government intervention in business, excessive price control and discrimination against foreign personnel. Five (5) out the seven (7) factors listed under this component were ranked high by the respondents in Table 1. This further confirms the perception of the construction companies who participated in the survey and interviews on how these political factors influence and are significant in the export of construction services into African construction markets.

Component 2 was named local content requirements and the yielded rotated factors under this component are three (3) which include excessive requirements for purchase of supplies from local companies, excessive local content regulations/pressure for local participation in foreign owned companies and restrictions against foreign personnel. These factors were ranked low on the Table 1 but their mean scores were high. The third (3) component was named institutional and administrative system and the yielded rotated factors were made up of six (6) which comprises of lack of institutional capacity in government agencies, insufficient coordination between government agencies, administrative delays, shortage of qualified administrators, unsatisfactory tax administration and red tape (legislative bottlenecks). Two (2) out these factors were ranked high by the construction companies on Table 1 and they include administrative delays and red tape which shows that institutional and administrative system is significant to export of construction services within African markets.

Table 3: Rotated Component Matrixa of the Political Factors Factors Component 1 2 3 Unstable government (government term & change) .824 Extreme political orientation - Dictatorships, inhumane practices .940 Political uncertainty (insufficient confidence in the political system/commitment .883 of successive governments) Excessive government intervention in business .929 Excessive requirements for purchase of supplies from local companies .565 Excessive price controls .586 Excessive local content regulations/pressures for local participation in foreign .888 owned companies Discrimination against foreign construction companies .666 Restrictions against foreign personnel .739 Corruption .652 Lack of institutional capacity in government agencies .803 Insufficient coordination between government agencies .823 Administrative delays .790 Shortage of qualified administrators .848 Unsatisfactory Tax administration .765 "Red Tape" (Legislative Framework Bottlenecks) .740 Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization a. Rotation converged in 5 iterations.

Table 4: Reduced Component Political Factors S/N Component Factor Sub-Factors A Political and Officials Unstable government (government term & change) Obligations Extreme political orientation - Dictatorships, inhumane practices Political uncertainty (insufficient confidence in the political system/commitment of successive governments) Excessive government intervention in business Excessive price controls Discrimination against foreign construction companies Corruption

B Local Content Requirements Excessive requirements for purchase of supplies from local companies Excessive local content regulations/pressures for local participation in foreign owned companies Restrictions against foreign personnel

C Institutional and Lack of institutional capacity in government agencies Administrative System Insufficient coordination between government agencies Administrative delays Shortage of qualified administrators Unsatisfactory Tax administration "Red Tape" (Legislative Framework Bottlenecks)

Conclusion and Further Research

This paper identified and examined the political risk factors in African construction markets with a view to establishing whether there are significant political factors influencing the export of construction services by South African construction companies into African construction markets. Sixteen (16) political factors were identified from literature that constitute the construct and design variables for this paper. The top rated factors include red tape (legislative bottlenecks), unstable government (government term and change), corruption, administrative delays and political uncertainty. The principal components classification of these factors was made into political and officials obligations, local content requirements; and institutional and administrative system. The most significant numbers of these factors are associated with political and officials‘ obligations, explained by factors such as instability in government, uncertainty in politics, political orientation, government intervention in business and corruption. This indicates that the basis of the influence of political risk factors on export of construction services is due to the actions/inactions and political will of African leaders and the degree of sincerity, openness and commitment of government officials in public administration and management. This is followed by institutional and administrative system enlightened by factors such as administrative delays, tax system, legislative bottleneck, lack of institutional capacity and human resource ache. This shows that a strong and sustainable institution framework is a sine qua non for effective cross-border trades in construction services within African markets.

It becomes evident that the political officials‘ (elected or appointed) obligations, responsibilities, willingness and sincerity are imperative in the export of construction services into African construction markets otherwise the political risk factors revolting consequences will continue to hamper infrastructural investments and economic growth in African economies. Based on the perception and international experience of South African construction companies, the paper concludes that there are significant political risk factors

22 that influence the export of construction services into African markets. This paper is a part of feasibility study on export of construction services among South African construction companies. It is also a pilot investigation for future research on influence of international risks and construction company capabilities on entry decision into African construction markets.

Acknowledgement

The financial assistance of the Construction Industry Development Board (cidb) South Africa towards this research is hereby acknowledged. Opinions expressed or conclusions arrived at, are those of the authors and not necessarily to be attributed to the cidb.

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The challenges of implementing public private partnerships – a decision-making framework for Zambia Peter M Mukalula and Mundia Muya Department of Civil and Environmental Engineering, University of Zambia, Zambia [email protected] [email protected]

Abstract: The Zambian government in 2009 enacted the Public Private Partnership (PPP) Policy and Act No. 14 to encourage private sector participation in national development. The PPP mode of procurement offers governments in developing countries an alternative means of securing major social and economic infrastructure. However, there have been difficulties with streamlining clear procedures in the implementation process resulting in the slow uptake of PPP projects. Using structured interviews and a questionnaire survey, information was gathered on the implementation processes being used. The duplication in decision-making channels remains a challenge that must be overcome. A decision-making framework is suggested to solve this management problem. Although a few major projects were reviewed, the study provided a classic example of how weak regulatory frameworks would not only lead to the unsuccessful implementation of projects but also engender poor decision-making.

Keywords: Decision-making framework, Public Private Partnerships, Zambia

Introduction

Governments on a worldwide basis are exploring alternative modes of procurement for major infrastructure projects (Li et al., 2005; Ndandiko, 2006). This has been necessitated because of high country debt loads and the desire to achieve greater efficiencies in the delivery of infrastructure and services (Jefferies, 2006; Grimsey and Lewis, 2002). Improved efficiency and accountability is now the accepted norm in open competitive tendering in contractual practices, a method favoured by multilateral lending agencies. Globally, governments are exhibiting a change in philosophy with preference to purchasing infrastructure services as opposed to financing, designing and operating the physical infrastructure with its attendant risks (Jefferies, 2006). Consequently, the concept of PPP has gained prominence over the traditional form of procurement (Akintoye, 2009). PPPs usually work on the principle of having a synergy of the public and private sector. Akintoye (2009) cites three factors which have enabled the stage to be set for PPPs in Africa – the changing economic, social and political environment with its globalisation influence, instituted measures for control of public sector borrowing and the vital role that modern infrastructure plays in economic growth and poverty alleviation which has been largely crippled by inadequate levels of public sector income in emerging economies. Consequently, African countries have started recording an increasing number of projects based on the PPP concept in their quest to provide supporting infrastructure for their growing economic activities (World Bank, 2002). With a rapidly increasing urbanized society and an expanding need for basic infrastructure, Zambia has adopted the PPP mode of development in tandem with the African and international community (Mukela, 2006; Zulu and Muleya, 2009). In many African countries, governments are willing to implement projects through the PPP model (Li and Akintoye,

2003). However, a contrary view has been expressed by Ndandiko (2006) and Zulu and Muleya (2009) who pointed out that in Sub-Saharan Africa, those attempting this mode of procurement are faced with challenges of inadequate regulatory frameworks and impoverished public and private sectors which are necessary requisites to the success of PPPs (Li, 2005; Zhang, 2005).

The aim of this paper was to highlight two knowledge gaps in issues of governance pertaining to PPPs. This work is part of an on-going doctoral thesis hence data presented has not been taken to a further stage of analysis using a statistical package. Findings from this research revealed that though there has been eagerness to adopt the PPP mode of development; it is very misunderstood by professionals. Many fear that the introduced law may not encourage greater participation through innovation and the private sector lacks direction in properly implementing PPPs. The decision-making framework will seek to bridge the gap in indecision currently faced by the industry. The findings from this paper will guide line ministries in finance and commerce to adopt the proposed mechanism so as to speed up development. To fulfill the objectives of the research, structured interviews and questionnaires were used to collect data.

Literature Review

The quest for governments to involve the private sector in development of infrastructure is one that is encouraged worldwide (Li and Akintoye, 2003). Various avenues of development are thus utilised to enable governments develop their economies. Among such avenues are privatisation, concessions and public private partnerships. PPPs were viewed as advantageous as they integrate the public and private sectors in a long term partnership. Two factors have enabled governments to take on board private investors. The first reason is that basic infrastructure is fundamentally capital-intensive while the second is the competitive demands for government budgetary resources (Alfen et al., 2009). In a bid to reduce the widening demand-supply infrastructure gap, governments seek to fulfill social commitments amid fiscal constraints. Public provision of services in developed countries using PPPs has included projects for education, waste water management, public buildings and health services. Developing countries on the other hand have extensive infrastructure needs which have seen the use of PPPs for water, power and road sector projects (Akintoye, 2009). This list has expanded by adding the telecom sector as being recipients of huge investments in physical infrastructure. Private sector participation in infrastructure in developing countries would persist owing to favourable investment conditions.

Governance Demand for public services coupled with the fiscal crisis in the public sector has led to a new set of circumstances. The OECD (2008) predicted that the world economy is expected to grow at about 3 percent per annum to the year 2030. Much of this growth will be in developing countries. Governments therefore have to undertake such service delivery through the option of decentralized management and market mechanisms (Pongsiri, 2002). Governance is a matter of grave concern. Stoker (1998) defined governance as the development of governing styles where the principles of accountability, transparency, fairness, efficiency, participation and decency are embraced. Alfen et al. (2009) defined governance as a decision making process. Governance must therefore embrace transparency in all its decision making processes. Abednego and Ogunlana (2006) developed the good project governance (GPG) concept that is aimed at evaluating performance under the PPP

26 procurement mode. Abednego and Ogunlana (2006) further argued that proper risk allocation is only achievable through good governance which in turn leads to better project performance. The project governance concept comprising eight characteristics stated the following (Abednego and Ogunlana, 2006):  The right decisions at the right time, recognizing the active participation of the parties involved;  Contract fairness ensuring that the rule of law was the framework that enforced impartiality in application of rules between the parties;  Information transparency which enabled that information be available to those affected by decisions;  Responsiveness being the ability to carry out decisions within a specific timeframe;  Continuous project control and monitoring so as to ensure the achieving common goals amongst stakeholders;  Equality implies that all parties to the contract are equal;  Effectiveness and efficiency which would ensure that results produced meet people‘s needs as well as make best use of available resources, and  Accountability in having to fulfill the twofold objective of user satisfaction and community participation

Abednego and Ogunlana (2006) suggested that a contractor‘s pre-finance (CPF) as the best risk allocation strategy. This strategy shifted the responsibility of financing the project from the owner to the contractors. This also meant that other cash-flow and liquidity problems subsisting with the owner could be circumvented. This is due to the fact that the loan would be made directly between the financial institutions and the contractors.

Decision-making studies involve project risk management. The critical nature of risks for any project is influenced by a combination of political, legal, economic and the social environment of the country. PPP success therefore enables both the public and private entities the opportunity to evaluate risks emanating from these areas which are carefully included in contract conditions (Zhang, 2009). The following knowledge gaps were identified in the reviewed literature: (i) The need to investigate what critical success factors influence decisions made regarding risks on PPP projects; (ii) The need to find out what an effective risk allocation mechanism must achieve to enhance decision making; (iii) The need to measure the effects of the major risks affecting project phases; (iv) The need to investigate net present value distribution over the project noting what beneficial effects would be obtained, and (v) The need to investigate what appropriate risk mitigation methods are applied to successful PPP projects.

This paper seeks to answer objectives (i) and (ii).

Research Methodology

The research design adopted for the study consisted of a mixed method research. Creswell (2003) states that such must aggregate the philosophy, strategy of enquiry and specific methods used. Data were collected using structured interviews and questionnaires. Structured interviews offered uniformity in the questions asked while questionnaires extensively explored issues that were raised through the interviews. Adjustments to the questions were

27 made to ensure that they were qualitatively of an ‗open type‘. The interviews were designed to re-tell professional experience and interviewees were selected from top management of different key stakeholders. Each interview lasted between 30 and 40 minutes. Extensive notes were taken during the interviews. The spacing of the interviews enhanced establishment of good contact and firm arrangement of dates and venues. Moreover, the spacing of the interviews also helped in the compilation of the information and progressive analysis of the data. The interviews were recorded using a digital voice recorder. The recorded interviews were then transcribed. All interviewees were assured of anonymity as required by the research ethics committee.

Findings and Discussion

Owing to the fact that PPPs were novel in Zambia at the time of the study, a purposive sample of 10 stakeholder interviewees were selected based on their knowledge of the PPP procurement mode. Later on, questionnaires were distributed to a targeted stratified sample of 150 professionals consisting of client organisations, and key decision makers for projects such as engineers, architects, valuation and quantity surveyors. However data analysed for this paper was based on 70 questionnaires that were first distributed. 30 questionnaires had been returned which were carefully reviewed for correctness in responses. Out of the 30, 15 were rejected giving a response of 20.2%. Similar researches have even attained percentages as low as 11 and 14 per cents. Four main areas were the focus of the interviews and questionnaire survey which included critical success factors for PPPs, the risk perception and allocation in the project, investment objectives pursued in projects as well as what financial decision-making tools are used on projects. Descriptive analysis was used on the qualitative data collected (Silverman, 2010).

Background information on respondents

Respondents interviewed held high or middle level positions in their organisations. Four out of the ten were senior managers while five were middle managers. One was a chair person of a private sector organisation. The level of experience varied from 2 to 14 years. The results show that the interviewees were in positions where they could articulate issues related to PPPs.

Critical Success Factors

Interviewees were asked if the introduced PPP law had helped in the implementation of the projects in Zambia. Out of the ten interviewed, five of the respondents agreed. They were also of the view that without the PPP law, nothing much would have been accomplished. Although many projects were at ‗drawing board level‘, their increase is a sign of developer‘s confidence in the legal framework. One interviewee was not sure if the introduction of the law has ‗had any tangible effect‘.

Interviewees were asked what would make PPPs to succeed in Zambia and each was able to give two to three responses. A good working structure was mentioned four times while ‗delegate work to the private sector‘ had three occurrences.

A – Good working structure B –Delegate work to the private sector C –Clarity of policy D – Publicity or sensitization of PPPs E –Developing capacities F – Thorough PPP knowledge G – Stable macroeconomic environment H – Government guarantees Figure1: Critical Success Factors

The rest of the critical success factors got single citations from the respondents as shown in Figure 1. Interviewees suggested that a good working structure was necessary for PPPs to be successful. Though a legal framework is in place yet proper procedures seem not to be in place. Interviewees were asked regarding the understanding of PPP concepts in the Zambian construction industry. There was an affirmative answer from four of the interviewees while two of them responded with an outright ‗no‘. The other four stated that it ‗was doubtful‘. This suggests that professionals in the industry are still not clear about PPP concepts.

The questionnaire survey expanded the list of critical success factors that have been used in decision-making using a 5 point numerical scale. The three factors that gave a mean score of 4.2 were for good governance, project technical feasibility and appropriate risk allocation as shown in Figure 2. ‗Good governance‘ was the only point of agreement with ‗good working structure‘ obtained from the structured interviews.

Figure 2: Critical success factors used in decision-making

Risk Perception and Allocation

Interviewees were asked as to which risks would make the implementation of PPPs a difficult task. Thirteen risks were singled out as influencing the Zambian construction industry. Of these, political and high interest risk received seven occurrences, respectively. These were followed by ‗lack of consistent policies‘ which had five occurrences. Ten risks had a single occurrence as shown in Figure 3 denoted by D to M.

A – Political risk B – High interest rate risk C – Lack of consistent economic policies D – Foreign exchange risk E – Global market influences F – Land acquisition difficulties G – Lack of design H – Construction coordination risk I – Force majeure J – Social risk K – Investment risk L – Poor governance risk M – Financial risk Figure 3: Project Risks in Zambia

On the allocation of risk, interviewees were asked as to how risks should be allocated. Interviewees gave five different responses. ‗Government only‘ bearing the risk as well as ‗the best party to handle risk‘ each had 3 occurrences, respectively. This was followed by the private sector bearing the risk which had 2 occurrences. Sharing risk equally and having risk dealt with in other ways such as engaging a bank, each got a single occurrence from the interviewees. Results from the questionnaire survey however showed that 60% preferred the private sector to bear risks leading to the implementation of the project while that of shared, 27% and that to be borne by the public recorded 7%.

Investment objectives

Investment objectives are themes that PPP projects often follow. Interviewees were asked to state what objectives projects implemented had followed. The pursuit of ‗social infrastructure development‘ had three occurrences. This was followed by the private sector that has a ‗profit

30 benefit‘ receiving five responses from the interviewees. Economic infrastructure was third with four occurrences. Improvement of social and economic infrastructure each had two occurrences while ‗business diversification‘ had one occurrence indicated by the interviewees.

Interviewees were asked if the above stated objectives were aided by the PPP policy and Act No. 14. The number of respondents that agreed that the law had instigated such objectives was four while six stated that they were ‗not sure‘. There were no responses for those that stated ‗no‘. Those that had answered ‗not sure‘ did so because they had not read Act No. 14 hence, could not correlate what was happening in the industry with the introduction of the legislation. This suggests that though there is legislation that oversees PPPs, there is lack of understanding of what is involved.

Financial decision-making tools

Interviewees were asked to indicate which financial decision-making tools had been used on implemented PPP projects. A total number of 6 tools were identified as shown in Figure 3. It was observed that projects applied a combination of decision-making tools. The financial appraisal tool was the most commonly cited by 8 interviewees. This was followed by cash flow analysis that had two occurrences from respondents. The other decision-making tools used were profit and loss analysis, development concept, cost/benefit analysis and life cycle costing which had a single response each.

A – Financial appraisals B – Cash flow analysis C – Profit and loss analysis D – Development concept E – Cost benefit analysis F – Life cycle costing Figure 4: Financial decision-making tools Respondents were asked on the effects of decision-making on project risk. The effect of using decision-making tools was that it enabled projects to be assessed which received five occurrences. This was followed by ‗identification and mitigation of risk‘ and ‗instils trust‘ that had two responses from the interviewees, respectively. Enhancing decision-making had 1 occurrence. The main effect of decision-making tools was the ability to make informed decisions. Interviewees were asked as to which decision-making tools were considered important for projects by financial institutions. A total number of seven decision-making tools were listed from the responses of the interviewees. Financial appraisals were the preferred decision-making tool by financial institutions as stated by six interviewees. The other utilised tools were the business plan, cash flow analysis, public sector comparator, life cycle costing, equity requirements and assurance of business, each was given a single response.

Framework for decision-making

The implementation of PPP projects in Zambia has a very lengthy procedure. There were 17 steps identified in the current procedure. The process could take periods of one to three years. Cost implications of the procedure will be the subject of future papers. Decision-making starts from the conceptualisation of the project. The government departments have to give consent starting with the registration of the concept till the final clearance is given by the Office for Promoting Private Power Investment (OPPPI) in the Ministry of Mines, Energy and Water Development as shown in Figure 5 below. The decision-making process would be carried out within a period of six to twelve months in seeking to redress stifled development.

Project CONCEPTUALISATION Identification

______

APPROVAL YES NO RE-ASSESS

Project Analysis Risk allocation

YES NO

Project Implementation

Monitoring Financial management

BENEFITS Project reconciliations

Figure 5: Proposed decision-making framework (based on research data)

Conclusion and Further Research

Zambia has recently introduced a law on PPPs to curb the backlog in the development. Based on a mixed method research design, structured interviews and questionnaires were used to collect data. Owing to perceived risks for countries adopting this mode of development in Africa, this paper sought to answer the difficulty of decision-making. Findings are that there is need for professionals to have deeper understanding of the PPP mode of development. Further research must seek to address specific risks and their impact on projects.

Acknowledgement

I wish to thank my sponsors, the Copperbelt University for supporting this research work. The encouragement of my supervisor, Dr Muya, as well as those of my friends cannot go unnoticed.

References

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Perception of construction industry stakeholders on the critical attributes that contribute to project success Yvan Nimbona and Justus N Agumba Department of Construction Management and Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected] Abstract: The construction industry has created business opportunities, which has resulted in the creation of jobs and alleviation of poverty in South Africa. However, construction projects have been reported as being more complex, difficult to achieve, and require advanced skills. In addition, a high number of project failure has been reported, which consequently has contributed to client‘s dissatisfaction. Therefore, the main purpose of this study is to identify key attributes that will enable contractors to achieve successful construction projects in South Africa. In an attempt to investigate these key attributes that were developed from literature review and validated using two participants, a total of 75 questionnaires were randomly distributed to industry stakeholders. Fifty usable questionnaires were returned representing 66.7% response rate. The data collected was analyzed using Excel 2010 and the results were presented using descriptive statistics. The findings revealed that the main attribute that led to unsuccessful construction projects was financial problems. It was also posited that selecting contractors for a project should be based on good quality of work. Furthermore, attributes highly perceived to be critical for successful project outcome were proper planning, good leadership quality, and effective monitoring and communication attributes. In conclusion, the findings of this study revealed the attributes that prevent contractors achieving a successful project; it suggested what should be considered in selecting a contractor for a project and further provided a clear understanding of contractors‘ attributes that would lead to project success outcome. However, further study is recommended to test the causal relationship of the critical attributes and project outcome.

Keywords: Critical success attributes, Contractor selection, project success

Background of the Problem In South Africa, the construction industry remains an essential contributor to the economy of the country, with its contribution of 4.9% to the gross domestic product. It was further reported that the number of employees in the construction industry amounted to 424 000 of employees in the course of the first quarter of 2014 (Statistics South Africa, 2014). Furthermore, Mbatha and Mokhema (2014) stated that the construction industry hired around 99 000 people in the third quarter of 2014, hence resulted as the highest hiring industry in the third quarter of 2014.

Despite the importance of the construction industry, the industry continues to grapple with familiar issues such as prevalence of clients‘ dissatisfaction, shortage of skills (which end up affecting planning and implementation), non-expenditure of budgets, unfair tender procurement and the slow awarding of contracts. Challenges such as project delays, poor estimating practices, failed risk management processes, poor subcontractor performance, design errors, lack of available resources, lack of quality improvement, lack of worker participation and poor client relations continue to worsen the delivery of construction

34 projects. Therefore, the purpose of this study is to identify key attributes that will enable contractors to achieve successful construction projects in South Africa.

Factors Preventing Contractors from achieving Project Success The difficulties of achieving project success, particularly large and complex construction projects according to Ncwadi & Dangalazana (2005), is due to the complexity of the industry namely dealing with peoples‘ behaviour, cost of building materials. Millet et al. (2000) opined that lack of good relationship among project participants (main contractors, subcontractors) yield difficulties related to project success. They further articulated the issues of delayed payments, traditional contractual arrangements, holding of retention monies, lack of trust, unfair treatments and non-recognition of excellent performance as contributing factors to project failure. Windapo and Cattell (2013) argued that the major causes for failure faced in the course of executing construction projects are more related to finances i.e. the increasing costs of building materials, the difficulty accessing mortgage or credits, and the high interest rates.

Moreover, these writers advocate that the main issue to highlight here is the increasing costs of building materials, which occurs due to high demand for certain types of building materials and the reliance on particular materials. The South African Forum of Civil Engineering Contractors (2014) presented that the construction industry is confronted with challenges such as shortage of skills as a critical constraint to improve successful delivery of projects and also affecting project planning and implementation, non-expenditure of budgets, unfair tender procurement to be the most influential to contractors to achieve project success. Mahamid (2013) posits that labour productivity is one of the very important issues in construction industry. However, without human performance other resources would not be transformed into productive use.

Ntuli and Allopi (2014) these authors opined that poor human resource development, lack of understanding tendering process, lack of knowledge to develop business plans for their business, lack of understanding of the CIDB‘s role in the industry, lack of operational and managerial skills amongst contractors, under-pricing are barriers to project success. Mbachu and Nkado (2006) concur with the conclusions of the previous authors with regards to managerial skills. They further established two categories of constraints namely; controllable (internal) factors i.e. project characteristics, consultants‘ and contractors‘ influences, client organisational influences. The other was uncontrollable (external) factors i.e. socio-cultural issues, unforeseen circumstances, economic and global dynamics and governmental/statutory controls.

In Uganda, Otim et al. (2011) revealed the main causes of uncompleted buildings in Uganda: misuse of funds, poor planning and poor management, underestimate of resources and time, unreliable source of finance, inadequate supervision, lack of experience, accidents, substandard work, inflation, faulty and incomplete designs, inadequate feasibility study, inadequate professional training, deaths, and corruption. In Malaysia, Ali et al. ( 2010) found that the main causes that contributed to unsuccessful construction projects included contractor‘s finance, construction mistakes and defective work, labour shortage, coordination problems, shortage of tools and equipment, material shortage and poor site management. Furthermore, Hatush and Skitmore (1997) argued that the tendering and awarding of projects are still influenced by the traditional procurement procedures. In some cases this has led to appointment of an insufficient and inappropriate contractor leading to sub-standard work, delays, disputes or even bankruptcy. However, the above literature shows a different

35 perception over the causes for unsuccessful project, hence the exact causes for failure could not be drawn decisively.

Factors to be considered when Appointing Contractors The selection of a contractor is perhaps one of the most important client‘s decisions before embarking in a construction project. Vermeulen (2013) argued that successful projects depend on the skill, experience and the technical ability of the contractor. Hatush and Skitmore (1997) argue that awarding a project solely looking at the lowest bid cannot assure project success and that the clients and clients‘ representatives should consider much more selection criteria in order to award a project. Brauers et al. (2008) and Jennings and Holt (1998) argue that past performance, past experience with the contractor, contractor experience, reputation, expected quality and delivery time, recommendations from other project owners and tendering price are weighted and combined together for choosing which contractor to be awarded a project.

Vermeulen (2013) concluded that besides the iron triangle of cost, quality and time being perceived as most important by project owners in the contractor selection process, other important criteria are; risk, past experience with the contractor, the type of projects and the contractor‘s reputation. Similarly, Huang (2011) highlighted that majority of clients prefer to award a project to contractors with whom they had a successful cooperation before. Vermeulen (2013) concurred with Holt (1998) that attention should be paid to reliability and competence of the contractors. Additionally, Holt et al. (1995) argued that choice of contractor should be made on value for money, rather than accepting the lowest bid. However, the above literature shows a different perception over the attributes required for selecting a contractor.

Critical Success Attributes

Cooke-Davies (2002) identified 12 critical factors to project success, he first categorised these 12 factors into three major areas i.e. project management success, individual project success and the final category being corporate success. Belassi and Tukel (1996) maintain a similar categorization whereby they identified factors and grouped them according to their set of factors which were, factors related to project managers‘ performance, factors related to the organization, factors related to team members and environmental factors. Alzahrani and Emsley (2013) found that critical success factors that greatly impact on the success of construction projects were safety and quality, past performance, environment, management and technical aspects, resources, organisation, experience, size/type of previous projects and finance.

Gudienė et al. (2013) through an evaluation of critical success factors for construction projects in Vilnius, Lithuania found ten factors namely: experience of project management; project value; experience of project manager; technical capabilities of project manager; experience of contractor, project size; competence of project team members; clear and realistic goals; decision making effectiveness of projects management and technical capability of project management. Cooke-Davies (2002) explored data from 136 European projects that were executed between 1994 and 2000 by a total of 23 organisations and the identified 12 factors critical to project success. These factors were then categorized in three major areas namely: project management success; individual project success; and corporate success.

Chua et al. (1999) identified critical success factors which they categorised into four factors: project characteristics, contractual agreement, project participants and interactive process. Some of the critical attributes are: capability of contractor key personnel, competency of contractor proposed team, contractor team turnover rate, contractor top management support, contractor track record and contractor level of service. Al-Tmeemy et al. (2011) identified thirteen critical success factors for building projects in Malaysia from the contractor‘s perspective, namely: cost; time; quality; safety; achieving scope; customer satisfaction; technical specifications; functional requirements; market share; competitive advantage; reputation; revenue and profits, and benefit to stakeholders. Alzahrani and Emsley (2013) identified nine main factors namely: safety and quality; past performance; environment; management and technical aspects; resource; organisation; experience; size/type of previous projects; and finance. However, based on this discussion there is no consensus of the attributes that influence project success outcome in the construction in South Africa, hence a critical gap in this study.

Problem Statement Despite the importance of the construction industry, client‘s dissatisfaction in terms of quality, time and cost of the project might not to be willing to invest their capitals into a sector that yields unsatisfactory returns, hence choosing to invest in other sectors of the economy which promise satisfactory returns on their investments. This can therefore affect the sustainability of the construction industry reducing company profit levels and jobs opportunities. Furthermore, coupled with these problems, literature suggests that there is no consensus of the critical attributes that can lead to project success. In order to achieve the stated problem, the following specific research questions were posited:  What are the critical factors that prevent contractors from achieving successful construction projects?  What factors would lead a contractor to be awarded a construction project?  What attributes are critical to achieve a successful construction project? Research Methodology

The research philosophy of the study was positivist, adopting a deductive approach. Based on the research philosophy and approach adopted in this study, the review led to the identification of factors that will hinder contractors from achieving successful projects, criteria for selecting contractors and attributes that will enable projects to be a success. The use of structured questionnaire survey in an in-depth exploration of the constructs underlying the subject matter of the research was therefore used. Creswell (1994) described a survey as a quantitative or numeric description of some fraction of the population – the sample, which enables researchers to generalize their findings from a sample of respondents to a population within the limitations of the sampling method. A random sample was used where the researchers randomly selected the sample members to conform to some or other criterion in this case construction industry stakeholders i.e. consultants and contractors. The questionnaires were distributed via email, and drop and collect method. This was to increase the response rate of the participants as previous studies have reported that response rate for surveys are normally very low Kongtip et al. (2008). A total of 75 questionnaires were distributed of which 55 were returned, this represented 73.3% return rate which was higher than the one suggested by Kongtip et al. (2008). However, a total of 50 questionnaires were usable. The questionnaires were completed anonymously; therefore the result and the presentation of this report cannot harm the respondents or their organization in any way. Furthermore, the sample size was sufficient to meet the statistical test requirements for group

37 statistical testing. The data was analyzed using excel 2010 to compute the descriptive statistics i.e. percentages, means and standard deviation. The likert-scale questions are discussed based on Mean Score using an interval scale. In order to achieve the intervals, the difference between the upper and lower ends of the used scale is 4.0 since there are five points. Each range can be equated to 0.80 because the extent of the range is determined by a division between 4.00 and 5 (4/5). This approach has been adopted in previous studies of Emuze et al., (2011). However, in the current study the intervals are as stated. The meaning of the intervals will change based on the questions asked by the researchers:

> 4.21 ≤ 5.00 Strongly agree; > 3.41 ≤ 4.20 Agree; > 2.61 ≤ 3.40 Neutral; > 1.81 ≤ 2.60 Disagree; > 1.00 ≤ 1.80 Strongly disagree

Findings and Discussions

The result in Table 1 indicates that 76% were male, while 24 % were female. The stakeholders included 26% quantity surveyors; 18% were construction manager; 18% project managers; 10% were for engineers; 10% were architects, 10% construction project managers and 8% were other professional. The educational qualifications 40% of respondents had Degrees; 34% Post-Matric Diploma or certificate; 14% Post-Graduate Degrees; 10% Grade 12 (Matric); and 2 % Grade 11 or lower; and none of the respondents had Doctorates.

Table 1: Demography of the respondents Gender Frequency Percentage Male 38 76.0 Female 12 24.0 Profession Architects 5 10.0 Construction managers 9 18.0 Construction project managers 5 10.0 Engineers 5 10.0 Project managers 9 18.0 Quantity surveyors 13 26.0 Others 4 8.0 Continued Table 1: Demography of the respondents Highest qualification Frequency Percentage Grade 11 or lower 1 2.0 Grade 12 or Matric 5 10.0 Post-matric diploma or Certificate 17 34.0 Baccalaureate Degrees 20 40.0 Masters‘ degree 7 14.0 Doctoral degree 0 0.0

Factors Preventing Contractors from Achieving Project Success

Table 2 indicates the respondents‘ perception on the main factors that contribute to unsuccessful construction projects, with a mean score ranging from 1 to 5, in a 5-point likert scale of influence. It can be indicated that financial problem, mismanagement and resource shortfall were deemed to be influential in exacerbating project success as the mean scores were in the band of >3.41≤4.20. Unfavourable government policies and unforeseen circumstances were deemed to somewhat influence project success as the mean scores were in the band of >2.61≤3.40. It can be argued that unforeseen circumstances e.g. bad weather does not seem to deter the success of the project.

Table 2: Main causes of unsuccessful construction projects Factors MS St. dev. Rank Financial problems (client‘s financial capacity, late payment, unreliable source 4.00 1.12 1 of finance) Mismanagement (consultants‘ and contractors‘ acts of omission or commission) 3.94 1.04 2 Resources problems (human, equipment, and material unavailability) 3.56 1.28 3 Unfavourable economic conditions (inflation, increase in building material cost, 3.30 1.22 4 corruption) Client organisational influences (unclear client‘s brief, poor client‘s 3.24 1.25 5 collaboration) Project characteristics (scale and complexity of the project, site characteristics) 3.10 1.22 6 Social cultural factors (strikes, crimes, robbery) 3.08 1.35 7 Unfavourable government policies (Increase of government taxes, compliance 3.04 1.03 8 to BEE requirement) Unforeseen circumstances (e.g. heavy rainfall) 2.68 1.24 9 MS=Mean Score; Stdev. = standard deviation

Critical Selection Criteria to award contracts to Contractors

The results in Table 3 indicate that, the first four attributes are considered to be very important in selecting a contractor i.e. good quality of work by the contractor; vast contactor experience; Contractors‘ past performance and experience with the type of project. These four factors achieved mean score in the band of >4.21≤5.00. Furthermore, recommendations from other project managers, clients or friends with whom they had a successful cooperation before was ranked second last with a mean score of 3.52. Lowest bid for the tender was the least ranked with a mean score of 2.40, which suggests that it is somewhat unimportant as it was in the band of >1.81≤2.60.

Table 3: Selection criteria Selection criteria factors MS St. dev. Rank Good quality of work by the contractor 4.52 0.68 1 Vast contractor experience (including competence and skills) 4.50 0.71 2 Contractor past performance 4.34 0.77 3 Experience with type of project 4.30 0.76 4 Contractor reputation 4.10 0.91 5 The project delivery time achieved 4.10 0.89 5 Contractors ‘finances ( assets, plants, machines, and machines available at 4.08 0.88 6 their disposal) Capability of managing risks in a project 4.02 0.80 7 Past experience with the contractor 3.74 0.94 8 Based on recommendations from other project managers, clients, or friends 3.52 1.09 9 with whom they had a successful cooperation before The lowest bidder for the tender 2.40 1.31 10

Critical Attributes Leading to Project Success

The result in Table 4 posits a strong agreement of 10 attributes of management organization and involvement these are; proper planning; good leadership quality; effective monitoring and communication and having a work program are imperative attributes of management to ensure project success as the mean score were in between the band of >4.21≤5.00. The

39 respondents strongly agreed that financial attributes i.e. payment guarantee by the client and cash flow forecast being good were necessary for project success.

Table 4: Critical success attributes Management organization and involvement MS Stdev Rank Proper planning 4.50 0.68 1 Good leadership quality 4.40 0.67 2 Effective monitoring and communication (feedback by the project team 4.40 0.76 2 members) Having a work program 4.36 0.66 4 Top management support & commitment of all parties to the project 4.34 0.77 5 Experience of technical personnel 4.34 0.87 5 Risk management 4.30 0.84 7 Management capability 4.24 0.80 8 Feasibility studies before the project begins 4.24 0.89 8 The project documentation has enough information 4.22 0.79 10 Knowledge of particular construction methods 4.22 0.84 10 Good site organisation 4.18 0.66 12 Having an organizational structure 4.06 0.89 13 Technical personnel training 3.98 0.80 14 Up-to-date technology utilization 3.72 0.93 15 Financial Mean Stdev Rank Payment guarantee by the client 4.38 0.85 1 Cash flow forecast is good 4.24 0.77 2 Having a good credit history 3.96 0.83 3 Having a good turn over 3.94 0.84 4 Past performance Mean Stdev Rank No failure to have completed a contract 3.98 1.00 1 No contract time overruns in the past project 3.58 0.99 2 No contract cost overruns in the past project 3.58 1.05 2 Past record of conflict and disputes 3.40 1.18 3 Experience Mean Stdev Rank Size of past project completed 4.20 0.81 1 The type of past project completed 4.10 0.86 2 Length of time in business 4.06 0.89 3 Experience in the region 3.64 1.01 4 Quality management Mean Stdev Rank Quality control program is adequate in the project 4.20 0.67 1 Having a quality policy in the organization 4.12 0.77 2 Ensuring quality assurance program in the organization 4.08 0.75 3 Resource Mean Stdev Rank Availability of resources as planned throughout the project duration 4.28 0.73 1 Having appropriate skilled workers 4.26 0.90 2 Adequate plants, machines, trucks, etc. 4.10 0.76 3 Efficient allocation of resources (distributing available resources in a correct 4.08 0.63 4 manner) Training the human resources in the skill demanded in the project 3.98 0.74 5 Safely, Health and Environmental Mean Stdev Rank Usage of personal protective Equipment (boots, helmet, eye protection, etc.) 4.14 0.99 1 Health and safety records 4.08 0.88 2 Environmental plan during construction 3.84 0.93 3 Waste disposal during construction 3.82 0.98 4 Use of sustainable materials 3.66 1.15 5 Recycling and reuse of building materials waste 3.28 1.20 6

The result on experience factor indicates that size of past project completed; type of past project completed and length of time in business and experience in the region the mean score were in the band of >3.41≤4.20 suggesting a general consensus of agreement. There was agreement on attributes related to quality management; i.e. quality control program, having a quality policy in the organization and ensuring quality assurance program in the organization. The results on resources factor revealed that, availability of resources as planned throughout the project duration; having appropriate skilled workers were strongly endorsed as necessary attributes of project success. The results further indicated and agreement of four attributes related to safety, health and environmental factor to be necessary for project success. These attributes were; usage of personal protective equipment, health and safety, environmental plan during construction and use of sustainable materials. However, recycling and reuse of building materials waste was in the range of >2.61≤3.40, positing the respondents were neutral in their perception.

Conclusions and Further Study

This study has identified the key barriers to successful project outcome to be finance problems, mismanagement, and resources problems. Furthermore, it can be inferred that stakeholders that are interested in project success should endeavour to focus on proper planning; ensure payment guarantee by the client; no failure in previous contract; size of past project completed; ensure quality control program is adequate in the project; availability of resources as planned throughout the project duration; usage of personal protective equipment.

Finally, contractors should be selected in relation to good quality of work, vast experience, and contractor past performance, experience with the type of project, contractor reputation, the project delivery time achieved, contractors‘ finances, capability of managing risks in a project, past experience with the contractor. This finding contributes to the current body of knowledge in construction management. Further study is advocated, to determine the causal relationship between the critical success factors identified and the project success outcome.

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Project and construction managers’ leadership characteristics in the South African construction industry M Liphadzi and CO Aigbavboa Department of Construction Management, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: The construction industry is different from other industries due to its unique characteristics. Moreover, construction projects involve different individuals and organizations which are all gathered to achieve a specific task at a specific time. However, South African construction projects sometimes face challenges relating to quality and cost overruns. This challenges can also be attributed to ineffective leadership in the South African construction industry. Therefore, it is important to evaluate leadership in the South African construction industry. Effective leadership can improve construction productivity, where its outcomes include effectiveness, satisfaction, and project success. The main objective of the study is to identify leading characteristics of construction and project managers in the South African construction industry which influence the success of construction projects. The data used in this research were derived from both primary and secondary sources. The secondary data was collected via a detailed review of related literature. The primary data was collected through a well structured questionnaire aimed at 150 projects and construction managers in the South African construction industry, 110 questionnaires were received (73% response rate). Data was analysis using statkon SPSS software, whereby frequecises and descriptives was attained. Findings from the study indicate that the main leading characteristics which influence the success of construction projects include monitoring for results, problem solving and informed judgment, team building, initiative, influencing, communication, visioning, planning and goal setting, time management, sense of responsibility, empowerment, discipline, ethics, positive expectations, conceptualization, and conflict resolution. Based on the outcomes of this study it is clear that leadership characteristics of a project and construction manager are important, to establish success from a construction project.

Keywords: Construction, Leadership, Management, Success, South Africa

Introduction

Leadership is one of the most important and essential factors in good project and construction management, and leadership can be seen as the art of influencing others to achieve desired results. According to Walker (1996), leadership is defined as the manner in which the project managers and construction managers conduct themselves in their role, in order to obtain the best performance from the people they are managing. Leaders guide behaviours by setting the vision, direction and the key processes; in other words, leadership has a large influence on the whole project process, including the actions of others. It is important to note that South African construction companies do face problems, and can often be traced to the project leadership. Some of them may have insufficient competencies or their traits may not fit with the nature of their work. Besides, they may be using inappropriate leadership styles in dealing with subordinates on construction projects. This leadership problem can lead to cost overruns and bad construction quality. 44

Leaders should have unique characteristics for them to be successful. According to Jarad (2012), leadership characteristic is a distinguishing feature or quality that a leader possesses. Nowadays, construction companies search for professionals who have better management and leadership skills rather than technical skills since these companies focus on project management systems (Toor and Ofori, 2008). Although experience and technical skills are important in engineering and construction, the critical skills that a successful project manager need are not technical. Leadership and management skills can help the project manager to achieve the objectives of the project (Benator and Thumann, 2003). Moreover, leadership skills are considered as a very important key to the success of a company and very important condition for the success of project management. The success of projects depends on competencies, personalities, skills and leadership styles (Ogunlana, 2008). Herbert et al. (1991) even stated that cost saving of as much as 10% through a well-qualified manager or leader is possible. However, little attention has been given with regard to what characterizes an effective leader in the construction industry. Goodwin (1993) stresses the importance of effective leadership; he further points out the skills and characteristics required by project and construction managers. This paper contains discussions on the theory of leadership and leadership characteristics of project and construction managers in the construction industry. Moreover, the aim of the paper is to investigate the leadership characteristics of project leaders in the South African construction industry. The paper starts with an overview of leadership and leadership traits in the construction industry, followed by the presentation of the methodology and the findings from literature before conclusion and recommendations are drawn.

Leadership and construction – Overview

The construction industry has a greater need for leadership than arguably any other industry. Many reasons support this notion and it is evident in the nature of the construction projects, and constructed products (Hillebrandt, 2000). Undoubtedly, construction projects are large and technically complex and they involve a combination of specialized skills. Thus, the teams are not only large but are also multi-disciplinary and the members are from several different construction disciplines and this makes leadership important in this industry. Project management and Construction management was developed in the construction and engineering fields in order to improve planning and cost controls (Arendse, 2013). Moreover history shows that the construction industry mainly operated in a context of management being managers instead of leaders and there is a continuing controversy about the difference between leadership and management. It is obvious that a person can be a leader without being a manager and a person can be a manager without being a leader. Price (2009) stated that when we are studying the leadership styles of managers in the construction industry, it may become relevant to distinguish between leadership and management. Moreover construction professionals or managers are of the opinion that their focus should be on the completion of tasks. They are oriented towards achieving this goal of finishing their tasks on time and within budget. Leaders, on the other hand are more concerned towards how they can accomplish the task. Goetsch and Davis (2006) distinguish the leaders from the managers by saying that managers focus on systems whereas the leaders focus on people. Even more distinctive feature is that managers take the short view whereas the leaders take the long view. Moreover construction and project managers in the construction industry are responsible for the productivity of the project members; they should maintain cohesion in the project. Hence, they should be leaders who can motivate and inspire construction workers within the given projects. This is because leadership is considered to be good if it is designed to accomplish the goal or mission of an organization which is done through project team

45 leading and project time managing, within budget conclusion and to a high quality, and with a satisfied customer (Jarad, 2012:9).

Leadership traits in the construction industry

Jarad (2012) stated that, the true task of leadership involves the ability to make change happen. Although multitudes of research have been done on what makes an effective leader, there appears to be no guaranteed consensus. Essentially outstanding leaders become a fine balance between traits, abilities, behaviours, sources of power, and aspects of the situation. The term trait has been the source of considerable ambiguity and confusion in the literature, referring sometimes and variously to personality, temperaments, dispositions, and abilities, as well as to any enduring qualities of the individual, including physical and demographic attributes (Bass, 1990). Leadership traits of the project leader are important to push team members to pass their own self-interests then their performance will be enhanced. According to Jarad (2012), leadership characteristics build on the basic management skills by adding motivation and advanced problem solving skills. Researchers further suggested that different leadership traits would be appropriate for different types of project (Jarad, 2012). However, to understand the behaviour and traits of a leader, one needs to look at their innate characteristics. Most significant are energy level, physical stamina and stress tolerance. High energy and stress tolerance help to deal with the fast pace and often chaotic events of today‘s business. Humility, courage, integrity, humour, passion, compassion; and wisdom are the leadership traits that were suggested by Barker and Coy‘s (2003) as important. Kirkpatrick and Locke (1991) suggested that the elements of leadership trait are drive; desire to lead; honesty and integrity; self-confidence and knowledge of the business (Ogunlana, 2008). To this end, the different traits are discussed in detail below. Traits that have been identified include:

Communication Communication is the ability of a project leader to listen, persuade, and understand what others mean by their behaviour. Jarad (2012) noted that it is important for project leaders to have the communication trait.

Dominance Successful leaders want to be managers and to take charge. However, they are not overly bossy and they do not use a bullying style (Lussier and Achua, 2004).

Self-confidence Leaders with self-confidence display assurance about their abilities and foster confidence among followers. Self-confidence influences individual goals, efforts and task persistence. Without strong self-confidence, leaders are less likely to attempt to influence followers to take on difficult tasks and to set challenging objectives for themselves and followers (Price, 2009).

Sensitivity to others According Lussier and Achua (2004), being sensitive towards others, refers to understanding group members as individuals, what their position on issues is and how best to communicate with them and also influence them. To be sensitive to others requires empathy and the ability to place oneself in another person‘s position, to see things from others‘ point of view.

Problem solving and informed judgment Problem solving is the ability to analyse adverse conditions or conflict, differentiate root causes, and the capability to find out a practical solution, and then implement it. Elements of problem solving include problem definition, and decision making for problems that have already occurred. To be an effective problem solver, it is important to differentiate between causes and symptoms (Jarad, 2012). According to Bass (1990), successful leaders come in a wide variety of personal characteristics such as their ability to relate to people in groups or individually. Strong leadership is necessary to be able to establish construction performance, direction and to cope with change. A construction and project manager should internalize different facets of character in order to handle different people in different situations. Moreover an effective manager has to modify, change or adapt his natural character to suit different purposes and conditions.

Planning One of the critical abilities that contribute to effective leadership is planning skills. Abilities of planning include judgment, perceptual foresight, conceptual foresight, ordering, elaboration, and adaptive flexibility (Marta et al., 2005).

Flexibility Flexibility refers to the ability to adjust to different situations. Leaders need to stay ahead of the immense changes in the world and the pace of change. Without flexibility, leaders would be successful only in limited situations that fit their style of leadership (Lussier & Achua, 2004).

Integrity Integrity refers to behaviour that is honest and ethical, making a person trustworthy. Trustworthiness is an important part of business success. Followers must trust the leader. Unless one is perceived to be trustworthy, it would be difficult to retain the loyalty of followers or to obtain cooperation and support from peers and superiors. (Emad, 2014)

Visioning According to Jarad (2012), visioning is a process which has a number of phases that includes creation, improvement, and renewal of a vision. Jarad (2012) further states that visioning is a continuous process and it must be integrated in an on-going process of strategic planning. Researchers suggest that the goals of visioning include giving a sense of future to the organisation, guiding to decision making and connecting to the values (Shelbourn et al., 2003).

Research Methodology

Research methodology considers the context of the research and the desired results in order to achieve meaningful research outcomes. Moreover, the selection of an appropriate research design involves several steps, beginning with identifying the problem, purpose of the study and in depth literature review. This research adopted a quantitative approach which involved the use of a questionnaire. Moreover, the data used in this paper were derived from both primary and secondary sources. Burns and Grove (1993) describe quantitative research as a formal, systematic process that describes and test relationships and examines causes among variables. In addition, Polit and Hungler (1993) were of the view that quantitative research is

47 a survey to obtain information from a sample of people by means of self-report, whereby people respond to a sequence of questions posed to them by the researcher. The primary data was obtained through the survey method which used purposive sampling, while the secondary data was derived from the review of literature and archival records. The primary data was obtained through the use of a structured questionnaire survey. The questionnaire survey led to the compilation of the primary data. However, questionnaires were decided upon for this study for the following reasons: they require less time and energy to administer and they offer the possibility of anonymity because the respondent‘s names are not required on the completed questionnaires. The format of the questionnaire had a section that identifies effective leadership characteristics in the South African construction industry. Respondents had to select important leadership traits in the construction industry, the selection was translated into frequencies and percentages and then ranked. This was distributed to a collective total of 150 projects and construction managers in the South African construction industry, Gauteng. Out of the 150 questionnaires sent out, 111 were received back representing a 74% response rate. This was considered adequate for the analysis based on the assertion by Moser and Kalton (1971) that the result of a survey could be considered as biased and of little value if the return rate was lower than 30–40%. However any research based on measurement must be concerned with the accuracy and dependability. A reliability coefficient demonstrates whether the test designer was correct in expecting a certain collection of items to yield interpretable statements about individual differences (Cronbach, 1951). Cronbach's alpha above 0.7 is acceptable for analysis (George & Shamas, 2012). Description of reliabilities of all scales used in the study indicated a Cronbach Alpha of above 0.7. The data presentation and analysis made use of frequency distributions and percentages of all the respondents.

Findings and Discussion

Findings from the 111 usable questionnaires revealed that 52% of the respondents were project managers and 48% of the respondents were construction managers. Furthermore, 69.5% of the respondents are currently involved in projects in the range 0-5 projects, 16.2% of the respondents are involved in projects in the range of 6-10.

Leadership traits in the South African construction industry It is evident from table 1 that 77% of the respondents said communication skills was the first ranked leadership characteristic in the South African construction industry. Of the respondents 67.3% revealed that having vision was the second ranked leadership characteristic; 64.5% selected passion (R=3); 62.7% selected confidence as an important leadership characteristic (R=4); 58.2% selected creativity (R=5); 53.6% chose honest and reliability (R=6). Being knowledgeable, organized and objective oriented was selected by 52% of the respondents (R=7). Having construction experience was ranked fourteenth (% =44). Followed by decisiveness (42.7%; R=15), self-discipline (41.8%, R=16), Firm minded and foresight were ranked twentieth (%=36.4), however being a risk taker was ranked last (30%; R=22).

Findings supports literature reviewed by Jarad (2012) were it is indicated that leadership traits of a construction project leaders are important to push team members to pass their own self-interests, therefore their performance will be enhanced. Furthermore, Jarad (2012) stated that leadership characteristics should build on the basic management skills by adding motivation and advanced problem solving skills. Jarad (2012) further noted that communication skills, time management and self-confidence are important leadership traits in 48 the construction industry. According to Bass (1990), successful leaders come in a wide variety of personal characteristics such as their ability to relate to people in groups or individually. Strong leadership is necessary to be able to establish performance direction and to cope with change. A manager should internalize different facets of character in order to handle different people in different situations.

Table 1: Importance of Performance Parameter in Construction

Leadership Characteristic Frequency / Rank Percentage Communication skills N=85 (77.3%) 1 Vision N=74 (67.3%) 2 Passion N=71 (64.5%) 3 Confidence N=69 (62.7%) 4 Creativity N=64 (58.2%) 5 Honesty and Reliability N=59 (53.6%) 6 Knowledge N=57 (52%) 7 Organized N=57 (52%) 7 Objective N=57 (52%) 7 Influence N=55 (50%) 8 Strategic vision N=55 (50%) 8 Integrity N=54 (49.1%) 10 Self-control N=52 (47.3%) 11 Sense of direction N=51 (46.4%) 12 Inspiration N=50 (45%) 13 Open to change N=50 (45%) 13 Experienced N=49 (44%) 14 Decisiveness N=47 (42.7%) 15 Self-discipline N=46 (41.8%) 16 Action-Oriented N=45 (40.9%) 17 Efficient N=42 (38.2%) 18 Not biased N=41 (37.3%) 19 Firmness N=41 (37.3% 19 Foresight N=40 (36.4%) 20 Fair-minded N=40 (36.4%) 20 Charismatic N=37 (33.6%) 21 Risk Taker N=33 (30%) 22

Conclusion and Further Research

The construction industry is different from other industries due to its unique characteristics. Moreover a construction project is consisted of a diversity of individuals and organizations which are all gathered to achieve specific task at a specific time. Therefore, it is necessary for the project or construction managers to be effective leaders and to lead the project for success. This paper has explored leadership characteristics by construction and project managers. Moreover, Literature further revealed that there are various important leadership traits that project leaders have in the construction industry, this includes, self-confidence, high energy, stability, planning, integrity and time management. In this research, analysis on dominant leadership characteristics was done, were findings revealed that communication skills is an important trait in the South African construction industry followed by vision,

49 passion, self-discipline, confidence, creativity, honesty and reliability, knowledgeable, integrity, inspiration and decisiveness.

References Arendse, J. 2013. Project Management Competency factors in the built environment, Masters Dissertation, University of Johannesburg. Bartol, K., Tein, M., Mathew, G. & Martin, D. 2003. Management: A Pacific Rim Focus enhanced edn, McGraw-Hill, Sydney. Bass, B.M. 1990. Bass & Stogdill‘s handbook of leadership. New York: The Free Press Bass, M. & Avolio, J. 1994. Improving organizational effectiveness though transformational leadership. Thousand Oaks, California. Benator, B. and Thumann. A. 2003. Project management and leadership skills for engineering and construction projects. The Fairmont Press, Inc., Lilburn. Cronbach, L. 1951. ‗Coefficient alpha and the internal structure of tests‘. University of Illinois, Psychometrika. Emad, A. 2014. Leadership importance in construction productivity improvement. Global Advanced Research Journal of Management and Business Studies, 3(3), pp. 114-125. Georgia. B. et al. 1986. Leader Orientation of Construction Site Managers. Journal of Construction Engineering and Management, 118(3): 370-386. George, O. & Shamas, R. 2012. leadership and Construction Industry Development in Developing Countries‘, Journal of Construction in Developing Countries, 1(2). Goetsch, D.L. and Davis, S.B. 2006. Leadership and Change. Quality Management: Introduction to Total Quality Management for Production, Processing, and Services, 5th Ed., Pearson Prentice Hall. Goodwin, R.S.C. 1993. Skills Required of Effective Project Managers. Journal of Management in Engineering, 9(3): 217-226. Herbert, A., Martvall, K. and Wirdenius, H. 1970. Site Management and Production Disturbances. Build Tech Manage. Hillebrandt, P.M. 2000. Economic Theory and the Construction Industry. 3rd Edition. Basingstoke: Macmillan. Jarad, G.H. 2012. ‗The construction manager leading characteristics for the success of construction projects in the Gaza Strip‘ Master‘s Thesis, The Islamic university of Gaza. Lussier, R.N. 2006. Management Fundamentals: Concepts, Applications, Skill Development. 3rd ed. Cincinnati: South Western College Publishing. Marta, S., Leritz, L.E. & Mumford. M.D. 2005. ‗Leadership skills and the group performance: Situational demands, behavioral requirements, and planning‘, The Leadership Quarterly, 16(1), 97–120. Munns, A.K. & Bjeirmi, B.F. 1996. The role of project management in achieving project success, 14(2):81–8. Ogunlana S.O. 2008. Factors and procedures in large construction projects in Vietnam", Engineering, Construction and Architectural Management, 11(6): 404-13. Price, J.J. 2009. The Conception and Operationalization of leadership in construction companies, Masters Degrees Thesis, UNISA 2013. Rastogi, R. & Dave, V. 2004. Managerial Effectiveness: A Function of Personality Type and Organizational Components. Singapore Management Review, 26(2): 79. Rowlinson, S., Ho, T.K.K. & Yuen, P-H. 1993. Leadership style of construction managers in Hong Kong. Construction Management and Economics, 11(6):455-465. Schermerhorn, J.R. 1986. Management for Productivity, 2nd Ed., John Wiley & Sons. Shelbourn, M., Hassan, T. & Carter. C. 2003. Vision for the integration of contractual and legal aspects of ICT into networked cooperation in construction.

Toor, S.R. & Ofori, G. 2008. Leadership for future Construction Industry: Agenda for Authentic Leadership. International Journal of Project Management, 26. Walker, A. 1996. Project Management in Construction, 3rd Ed., Blackwell science. Yukl, G. 1998. Leadership in Organizations, (4th ed.), Upper Saddle River, NJ: Prentice Hall.

A Project Management Approach to Improve Housing Delivery B Botha1 , Roy Cumberlege2, and Andrew Johnson2 1Department of Construction Management, Nelson Mandela Metropolitan University, [email protected] 2Department of Quantity Surveying, Nelson Mandela Metropolitan University, [email protected] [email protected]

Abstract: The ineffective use of project management principles in the Department of Human Settlements (DoHS) is detrimental to the delivery of social housing in South Africa. The study investigates the project management effort of the DoHS under the key areas of project management competence and the Project Management Office (PMO). The questionnaires were emailed to the sample consisting of private and public sector employees involved with the Eastern Cape DoHS‘s (hereafter referred to as the ―Department‖) project team. The competencies of project managers currently employed were evaluated along with the performance of project management office to determine the departments‘ project management effort. The study identified that the project managers responsible for facilitating the project management effort are not competent. The findings highlighted the existence of a PMO, but regarded the PMO as ineffective as tasks fail to achieve optimal performance. This study identifies two aspects contributing to the project management effort: the incompetent project managers and inefficient PMO. These aspects are core issues that need to be addressed in order to improve the Department‘s project management effort.

Keywords: Competency, Housing, Project Management, South Africa

Introduction

More than half of Eastern Cape households have no formal housing and are subject to inadequate living conditions (Eastern Cape Department of Human Settlements, 2011). The housing backlog and the current number of households within the Eastern Cape requiring adequate housing is above 750 000 and is still increasing (Songeni, 2011). The priority focus areas of the Department included the accelerated delivery of housing opportunities with the upgrading of informal settlements with 16726 houses. The planned output for the first quarter (April to June 2012) was set at 3216 houses but the Department only achieved the delivery of 1258 houses, representing poor performance and a further backlog (EC DoHS, 2012).

The Minister of Human Settlements cited the lack of capacity, referring mainly to project management experience, and poor management skills as major issues contributing to the lack of housing delivery within provinces (Sexwale, 2010). The shortage of skills in the local departments responsible for commissioning and controlling facilities is also a major factor that manifest as delays (Holtzhausen and Naidoo, 2011). The Department has set out on building up the capacity with the implementation of a revised Service Delivery Model (SDM) resulting in the restructuring of senior managers in the Department according to the competencies and passion of individuals. The project management effort of the Department

52 was enhanced with the establishment of a Project Management Office primarily focused on reviewing the technical systems, procedures and tools; trouble shoot on blocked programmes and projects; and assisting the Department in establishing a permanent project management unit (ECDoHS, 2012). The deliverables of this paper is to determine the project management effort of the Department by evaluating the competency of project managers employed by the Department, and the efficiency of the Project Management Office.

Literature Review

Project management is a specialised approach to managing the efforts of the organisation having finite beginning and end points, a specific budget and with customer-specified performance criteria (Taylor, 2006). When considering the project management competence, it is important to breakdown the term ―competence‖ into its various component parts for a complete understanding. Past perceptions of competence encompassed that individuals were in possession of knowledge, skills, attitudes and behaviours that contribute to an effective performance of a project management task or role (Crawford, 2003).

The traditional approach of employers when appointing competent staff was to focus on the technical qualifications related to their job and their experience at performing the same or similar job (Crawford, 2003). The development of the attribute-based approach to competency supplemented the traditional approach and this approach focuses on the knowledge (qualifications), skills (ability to perform task) and the core personality characteristics (motives, traits, and self-concept) to determine the competency of the person. The United Kingdom (UK) adapted a performance based approach defines an acceptable standard of demonstrable performance to which the individual must adhere to. According to the performance based approach, competence is defined as the demonstrable performance in accordance with occupational, professional and organisational competency standards (Crawford, 2003

In today‘s organisation the required competency of project managers follows an integrated model approach focusing on the skills the person can contribute to the job, the personal characteristics influencing the person‘s capability to do a job, and the person‘s demonstrable performance of project management activities. According to Crawford (2003), this approach can be broken down into three major competencies, namely:

 Input Competencies: consist of the knowledge, skills and abilities that a person can contribute to a job.  Personal Competencies: refer to the personal characteristics that influence a person‘s capability to do a job.  Output Competencies: refers to a person‘s demonstrable performance of project management activities to the level expected in employment.

Project Management Office (PMO) Project management has become an essential role in the management of organisations in most fields of human activity (Aubry, Muller, Hobbs and Blomqist, 2010). One of the major significant developments within the field of project management in recent years has been the implementation of the Project Management Office (PMO) within the organisation making it an essential component to the project management effort. The Project Management Institute (PMI) (2008) defines the PMO as: ―An organisational body or entity assigned various responsibilities related to the centralised and coordinated management of those projects under

53 its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of the project‖. This definition highlights that the PMO is highly beneficial to project managers in their individual effort, and to the organisations project management effort as a whole.

Artto, Kulvik, Poskela and Turkulainen (2011) divide the tasks of the PMO into five distinctive categories:  Managing practices: focuses on developing standard procedures, information systems and tools to assist in project management.  Administrative support: the PMO undertakes the responsibility for some of the project manager‘s tasks in order to reduce their work load or to benefit from the expertise and economies of scale in the PMO.  Monitoring and controlling projects: is a crucial task of the PMO involving the collecting reports, conducting post reviews, auditing projects and the allocation of resources.  Training and consulting: develops the organisational culture with regards to project management, consulting, mentoring and training of employees.  Evaluating, analysing and choosing projects: involves all methods of managing the organisations portfolio.

Research Methodology

For the purposes of this study questionnaires were emailed to respondents as a basis for collecting data from the sample. The sample was assessed using quantitative research techniques where the use of a constructed questionnaire allows for the uniform collection of data. A questionnaire consisting of three sections was used with section a consisting of questions relating to the demographic profile of respondents. Section B consisted of questions relating to the competence of project managers in the Departments project team while section C focused on the various tasks of a successful PMO. The questionnaire was designed to identify any flaws in the competency of the project managers, and to reveal the efficiency of the PMO within the Department. Sixty-eight questionnaires (68) were distributed to participants involved with the Eastern Cape Department of Human Settlement. These participants consisted of the employees working within the department and the private consultants employed to work alongside the department. A response rate of 40% was achieved which is adequate for the study.

Findings and Discussion

The results pertaining to the demographic profile of the respondents reveal the ages are not distributed equally and the most frequent age of the respondents ranged between 25-35 years and 35-45 years with both categories representing 38% each. 24% of the respondents are older than 45 years. More than half of the respondents (62%) were in possession of at least a diploma as their highest qualification. Majority (43%) of respondents were qualified in the engineering field. Other fields of study were architecture, quantity surveying, project management, business and financial management. In addition, less than half (42%) of respondents from the public sector were registered with a professional body while more than half (62%) of the private sector respondents, were registered with a professional body. Majority (71%) of respondents are working in the public sector. The remainder of the respondents are from the private sector. Majority (76%) of respondents were in senior staff positions. Most (62%) of the respondents had over 10 years of experience in the built

54 environment. Less than half (38%) of respondents have working experience in the Department in excess of 15 years. Only 24% of respondents have working experience more than 10 years but less than 15 years with the remainder of respondents working less than 10 years for the Department.

Competencies of the Project Manager The competency of project managers was evaluated based on input competencies, personal competencies and output competencies.

Input Competencies In Table 1, majority of the respondents viewed the input competencies very high with an overall mean of 4.13 (83%), a standard deviation of 0.73 indicating that responses had little variance, and a mode of 4 that also highlights the importance of the input competencies. An academic qualification was identified as the most important input competency with a mean of 4.58 (92%) and a standard deviation of 0.58 indicating low deviation in responses. The respondents indicated that academic qualifications of a project manager are very important with a mode of 5. Self-managed research was identified as the least important input competency with a ―neutral‖ mean of 3.36 (67%) with a mode of 4 representing the majority of responses. However the standard deviation of 0.99 indicates that the views on self- managed research tended to vary amongst the respondents. This can also explain the significant difference between the mean (3.36) and the mode (4) for this competency.

The majority of the respondents viewed the evidence of the Department project managers input competencies rather low ranging from poor to neutral with an overall mean of 2.68% (52%), a standard deviation of 0.80 indicating that views had little variance and a mode of 3 representing the bulk of the responses. Academic qualifications was identified as the most evident input competency with a mean of 3.29 (66%) and a standard deviation of 0,69 indicating little deviation in responses. 46% of the respondents indicated that the academic qualifications evident of project managers in the Department are fair with a mode of 3. The study revealed that the respondents view that accreditation with professional bodies is the least evident input competency amongst the project managers. The input competency of ―accreditation with professional bodies‖ reflected a ―poor‖ mean of 2.13 (43%) with a mode of 2 representing the majority response of respondents. The standard deviation of 0.76 indicates little variance in this input competency.

Table 1: Input Competencies

Personal Competencies Table 2 indicates the majority of the respondents viewed the input competencies very highly with a resounding overall mean of 4.68 (94%), a standard deviation of 0,48 indicating that there was only slight variance in responses, and a mode of 5 reflecting the majority of responses.

All personal competencies were regarded as very important with all means > 4.50 (90%). Communication was identified as the most important personal competency with a mean of 4,85 (97%) and a standard deviation of 0.36 indicating a slight deviation in responses. 85% of the respondents indicated that the communication competency of a project manager is very important with a mode of 5. Integrity was identified as the least important personal competency out of the six, but it must be stressed that integrity was still regarded as very important with a mean of 4.52 (90%), with little variance in responses (standard deviation=0.65) and a mode of 5.

The study revealed that the respondent‘s view accountability as least evident amongst project managers. The personal competency of accountability reflected a poor mean of 2.48 (50%) with a mode of 3 representing the majority response. The standard deviation of 0.80 indicates little variance in responses.

Table 2: Personal Competencies

Respondents viewed the output competencies ―very important‖ with a high overall mean of 4.65 (93%); a standard deviation of 0.48 indicating that there was only slight variance in responses. The majority of the sample indicated the importance of output competencies with a mode of 5. The output competencies were regarded as very important with all means > 4.30 (86%).

Table 3: Output Competencies

Project Budgeting was identified as most critical with a mean of 4,88 (98%) and a standard deviation of 0,33 indicating a very slight deviation in responses. 88% of the respondents were aligned with a mode of 5 indicating that they regard project budgeting by the project manager as very important. Project planning and scheduling were also highly regarded with means of 4.85 (97%) and 4.80 (96%) respectively. Managing technology and tools was identified as least important Integrity with a mean of 4.36 (87%), with standard deviation 0.57 and a mode of 4. The study revealed that the respondents view that managing technology and tools as the least evident output competency amongst the project managers. Managing technology and tools reflected a ―poor‖ mean of 2.24 (45%) with a mode of 2. The standard deviation of 0.66 indicates little variance in this input competency. Evaluating and terminating projects was another competency less evident in project managers with a poor mean of 2.28 (46%).

The results clearly indicate little evidence of project management competencies in the project managers currently employed by the Department (Figure 1). The overall mean differences for each component of project management competence were greater than 30% which indicates project managers employed by the Department are incompetent (Figure1). Project managers scored highest in the input competency category with a mean difference of 31% (Figure 1). This is mainly due to the sample regarding these competencies as least important resulting in a decreased mean difference. The personal and output competencies both had an equal mean difference of 42% reflecting poor results for project managers (Figure 1). This highlights the fact that the competencies may have the knowledge, skills and ability to do a job (input) but they do not have the personal characteristics (personal) supporting their capabilities nor the competencies reflecting the project manager‘s demonstrable performance (output) when completing the tasks required of them.

100% 94% 93% 90% 83% Importance 80% 70%

60% 52% 52% 51% Evidence 50% 42% 42% 40% 31%

30% Mean Response Mean % 20% Difference 10% 0% Input Personal Output Competencies Competencies Competencies

Figure 1: Comparison of Importance and Evidence of Competencies

Project Management Office Tasks The efficiency of the PMO was evaluated based on mean difference between the ―Importance‖ and ―Efficiency‖ of each PMO task based on the Table 4.

Table 4: Mean Difference Scale of PMO Tasks

0% 10% 20% 30% 40% 50%

Very Excellent Good Fair Poor Poor

The results reveal that a PMO exists in the Department as respondents answered all questions identified under the various PMO task categories. In Figure 2 it is clear that the respondents view the PMO tasks as very important but regard the departments‘ performance of the tasks as poor with a mean difference for all tasks greater than 30%.

Project managers scored highest in the ―Evaluating, analysing and choosing‖ category with a mean difference of 32% (Figure 2, Table 4), meaning the Department performs poorly in managing its portfolio. However the Department performs this task better than all other tasks. The ―Monitoring and Controlling‖ category of PMO tasks was the worst performing with a mean difference of 41% reflecting poor results for one of the more crucial tasks of the PMO (Figure 2, Table 4). This is identified as a crucial task by Artto et al. (2011), as it involves the collecting of reports, conducting post reviews, auditing and allocating resources to projects which all have a significant influence on the project management effort. The Department performed very poorly in the ―Training and Consulting‖ task with a mean difference of 40%

(Figure 2, Table 2). Therefore the Department is ineffective in developing the organisational culture with regards to project management, consulting, mentoring and training of employees. The tasks of providing ―Administrative support‖ and ―Managing practices‖ were also poorly performed tasks with mean differences of 37% and 38% respectively (Figure 2). The PMO is ineffective in providing support to project managers resulting in high workloads and poor economies of scale. The standard procedures, information systems and tools in place are ineffective in their effort to assist the project management effort.

Figure 2: Comparison of Importance and Efficiency of PMO

Conclusion and Further Research

The project management competencies were evaluated according to the importance and evidence of the three competency categories based on an integrated competency model. The study revealed that the importance of all three components was regarded highly. The evidence of these competencies within the project managers currently employed in the Department is poor. The study further identifies that project managers responsible for facilitating the project management effort are incompetent which explains the poor management of projects in the Department. This also has a detrimental influence on the Department reaching its targets and reducing the social housing backlog.

The PMO is a support function to project managers and it is highly beneficial to promote the effective use of this ―project management tool‖ in the Departments against an ever-increasing housing backlog. For an enhanced management of projects the crucial issue of incompetent project managers needs to be addressed. An enhanced project management effort is required by the Department in order for substantial improvements in the housing backlog to occur. The South African Council for the Project and Construction Management Profession (SACPCMP) is the professional body that enforces the best practices of project managers in South Africa. The Department does provide incentives to project managers who register with the council, but these incentives can be increased in order for an increased benefit to project managers who register as professionals with the SACPCMP.

The employment requirements for new project managers should be increased and should include provisions for all three components of project management competencies and not only focus on input competencies. The study further revealed that personal characteristics of project managers are the main reasons for ineffective performances. The incorporation of an

59 effective PMO into the Department will reduce the workload of project managers by providing administrative support to project managers. Training is required to educate and promote the PMO to all members on the project team in order to identify various roles and responsibilities of the various members.

References Artto, K., Kulvik, L., Poskela, J. and Turkulainen, V. (2011) The integrative role of the project management office in the front end of innovation, International Journal of Project Management, 29: 408-421. Aubry, M., Muller, R., Hobbs, B. and Blomqist, T. 2010. Project management offices in transition, International Journal of Project Management, 28: 766-778. Crawford, L. 2003. People in Project Management. Burlington: Gower. Holtzhausen, N. and Naidoo, G. 2011. Effective Governance as an Approach to Promote Service Delivery by Local Government in South Africa: The Case for Soul City, Journal of US-China Public Administration, 8(7):735-747. Project Management Institute, 2008. A Guide to the Project Management Body of Knowledge, 4th ed. PMI, Newton Square, PA. Sexwale, T. 2010. Department of Human Settlement: Minister's budget speech at the occasion of the human settlements budget vote, national assembly, Cape Town, 21 April 2011. Cape Town: Parliamentary Monitoring Group. Songeni, E. 2011 Department of Human Settlements & Economic Development. 2011. 4th quarter 2010/11 performance. Cape Town: Parliamentary Monitoring Group. South Africa. Department of Human Settlements. 2007. National Housing Code. South Africa. Eastern Cape Department of Human Settlements. 2011. Annual Performance Plan. South Africa. Eastern Cape Department of Human Settlements. 2012. First Quarter Report. Taylor, J. 2006. A Survival Guide for Project Managers. New York: AMACOM.

Fundamental factors that trigger the shortfall of skilled artisans in South African construction Iruka Anugwo1 and Wayne Draai2 1 Department of Construction Management, Nelson Mandela Metropolitan University, South Africa 2Department of Building and Human Settlement Nelson Mandela Metropolitan University, South Africa [email protected] [email protected]

Abstract: The purpose of this research survey is to unveil the underlying fundamental factors that resulted in the skills crisis in South African construction industry. However, the research methodology of this Study was quantitative survey method which was in the form of a questionnaire survey. The population and sample size used was 300 and 150 respectively, with a response rate of 18%. The respondents of this study were from the membership list database of the GMBA (Gauteng Master Builders Association). This study finds the following issues; poor performance of pupils in mathematics and science (pupils are the supply sources of artisans); the learners' lack of access to practical experiment during training; and lack of expansion of training institutions to local regions as the fundamental factors that contributing the shortfall of skilled artisans in the South African construction industry. Thus the salient findings confirmed that the industry finds it extremely difficult to recruit competent artisans. Furthermore, the profiles of skilled artisans are insufficient to meet the huge industrial demands. Importantly, the research have demonstrates a guiding solution towards the artisans skills crisis in the construction industry. Crucially, the study recommends that the entire stakeholders in the South African construction industry should form collaboration to strategically develop programmes that would upgrade and expand the existing training institutions, primary and secondary education system towards contemporary. - and environmental changes of the South African construction landscape in order to promote the attractiveness of the industry image and to raise the profile of skilled artisans in the industry.

Keywords: Artisans, Construction, Skill, Training, South Africa

Introduction

The South African construction industry has been in a critical condition for decades due to the shortfall of skilled artisans. This has placed the industry in a continuing battle to sustain its numerous activities and opportunities. This confirmed the view of Siya (2012) that the South African construction industry has witnessed chaos during the construction of power stations and the controversial e-tolling systems, which required skilled foreign artisan at a high cost. The extent of the artisan‘s shortage was so big that South Africa had to import artisans to build its infrastructure. Siya (2012) further stated that recent studies reflected that the average South African artisan was nearing retirement age at 55. The number of registered apprentices in 1979 was 33,000 a number which has shrunk in this decade to about 3,000 apprentices. Thus, this phenomenon of shortage of skilled artisans can be associated with the past government and institutional negligence towards skills development, quality training,

61 funding and fundamental factors, such as racial, gender inequality and educational crisis. This work puts emphases on the empirical reality of the skills shortfall in the construction industry and it also highlights how to develop a medium- and long-term approach in order to salvage the menace around the shortage of skilled artisans in the building construction industry in Gauteng, South Africa. Importantly, the construction industry plays a vital role in South Africa‘s economic- and social development. It provides the physical infrastructure and backbone for economic activity. It also provides employment on a large-scale (cidb, 2007). Rogerson (1999) also argues that South African construction industry is a potential and critical actor in post-apartheid reconstruction. The reasons include its linkages with others sectors, its growth-generating characteristics and its potential for adopting labour-intensive techniques for a wide range of products. In the light of this, the building construction sector consists of many activities that demand some levels of contemporary skills, materials and machineries.

The shortage of skilled artisans in South Africa is alarming and it has been admitted that there were inconsistencies in ascertaining the scale of demand. However, it was generally accepted that the country needed to drastically improve its production of artisans (Roodt and Wildschut, 2012). South African construction industry is confronted with an acute short supply of well qualified workers. This was repeatedly echoed in the media through comments made from government agencies, union and employers (Jeffy, 2008; Rasool and Botha, 2011). It is further highlighted by Jeffy (2008) and Rasool and Botha (2011) that the impacts of skills shortages are negative. It has been perceived as a hindrance in South Africa‘s ability to realise its economic potentials on a global platform and its targeted economic growth of 6 % annum. The concern pertaining to the scarce skills shortage is heightened by the fact that, apart from the planned mega-projects, existing construction and engineering operations are working to capacity owing to expansion over the past five years. This has resulted in a rise in costs and has had an impact on quality (cidb, 2007). Relating to critical skill, the cidb also review that there was a significant shortage of experienced qualified artisans in the construction industry. These shortages are threatening to stall service delivery.

Literature Review

According to Jordaan and Barry (2009), South Africa had experienced extensive growth in all industrial sectors. That has led to an increased demand in all levels of skilled human resources including artisans (cidb, 2007). The Support Programme for Accelerated Infrastructure Development (SPAID) (2007) states that the skills deficit appeared to have been on a path where demand continued to outstrip supply as a result of the substantial growth in infrastructural investment.

The Overview on shortfall of skilled artisans in South African construction Rasool and Botha (2011) note that South Africa was suffering a debilitating skills shortage. Not only was its own skills production system grossly inefficient, but the situation had been worsened by skilled people leaving the country at an alarming rate. In addition, Jordaan and Barry (2009) cautioned that other international organisations further exacerbated the South African skills shortfall in that they recruited South African artisans who had been the product of past learnership programmes, which were recognised as world class. At the time, relatively high salaries had been offered by those international organisations and in conjunction with the social issue of high crime rates, more skilled artisans were lost to overseas companies.

Van (2000) voiced a different perspective. He was of the opinion that the demand for skilled workers had been acquiring a global dimension. Firms in developed countries of Australia, New Zealand, Great Britain and Canada had been recruiting highly skilled South Africans with high levels of vocational education and advanced occupational skills. In general terms, the loss of skilled workers was referred to as the ―brain drain‖. Van further explained that the movement also affected South Africa as thousands of skilled South Africans left the country every year. Other factors that influenced people to consider emigration to other countries included crime, affirmative action, Black economic empowerment, poor education standards and inadequate government provisions for health care.

Thus, many research commentators saw the education- and training system as the fundamental factors that bled and contributed towards the national skills crisis in South Africa. Rasool and Botha (2011) state that the system was characterised by low educational standards, inadequate provision for early childhood development, declining Grade 12 pass rates, declining enrolments at FET colleges, lack of resources, under-qualified teachers, weak management and poor teacher morale. High failure rates in schools, colleges and universities offered little hope of addressing the skills shortages. The cidb (2007) there were evidence that the graduation rate in construction and engineering - skills development had always lagged behind increasing spending in construction. Whilst it was therefore reasonable to assume that industry would have responded to meet the growth in skills demand, that growth phase required substantive interventions involving a wide range of stakeholders. The cidb (2007) further stated that an analysis of the supply of skills in learnerships, further education and training (FET) and higher education and training (HET) sectors had shown that increasing numbers of learners were entering training institutions. That in turn could have suggested that the supply over the following five years would have adequately covered the expected increased demand.

Together with the normal attrition rate, the low throughout ratios, lack of access to experiential training for qualification purposes and non-accreditation of certain curricula, and the changes in work processed, the ability of the supply pipeline to meet the required demand was far from certain. Benjamin (2008) states that South Africa had come last in global studies in literacy and reading, as well as in mathematics and science. In that regard South Africa, had been outperformed by other African countries, e.g. Ghana; Botswana, Morocco and Tunisia. Compared to other developing countries the number of South Africans completing school was also below the norm. Only 30.9% of South African adults had completed high school, compared to 69.8% of adults in developed countries. However, the Centre for Development and Enterprise (CDE) (2007) lamented that together with the low achievement rates, only 13% of learners had enrolled for science and 9% for mathematics at the higher- grade level. This represented a decline in Grade 12 mathematics and science results between 1995 and 2001. Therefore; it reduced the supply of quality skills and the availability of required talent. The economy could only grow if there were more educated people. In addition to this, Rasool and Botha (2011) gave some insight into the performance in mathematics and science in 2008. That situation was largely the result of the poor quality of schooling for Black learners in the past. Poor results, particularly in mathematics and science, compounded the problem. Therefore, many Black students who had entered tertiary institutions were reluctant to pursue careers in the science- and technology fields.

According to Kraak (2004) made the crucial revelation that 42% of South African youth (between 15 and 24 years of age) had abandoned their studies or vocational training and entered the labour market. More than 60% of them had less than a Grade 12 qualification,

63 whilst 33% had nothing more than Grade 12. That was a grave concern as the weaknesses in education and skills training institution were bound to affect their preparedness for the labour market and to deprive them of actual employment opportunities. Rasool and Botha (2011) estimated that about 1.1 million pupils had started Grade 1 every year. However, only 589 912 pupils wrote the Grade 12 examinations in 2008. That meant that half a million children had dropped out of school. This situation has had an extensive effect on South Africa, especially as far as their chances of employment were concerned. This issues remains a great concern the pupils in science related discipline are the primary source of supply learners to the training institutions.

The Impact of Challenges on Training and Supplying Artisans in South Africa According to Janse van Rensburg et al. (2012) vocational-and occupational certification via learnership and apprenticeship programmes were at the core of the new skills creation system. However, the concern was to assess how effective those systems had been over the previous five years. Janse van Rensburg et al (2012) further said that the policy concerns around a skills crisis –that South Africa was not producing enough of the right levels and kinds of skills to support global competitiveness and economic development – had intensified over the previous five years, making the impact assessment by the Department of Labour very timely. Morton (2009) posits concerns about the shortage of skilled operatives and the recurring inadequacy of training throughout the century before. Despite several attempts by government and the industry itself to resolve these problems, Marock (2008) reported that the new learnership system and the revived apprenticeship system were inserted into a complex and increasingly bureaucratized qualifications and quality assurance infrastructure. Those were administered by Sector Education and Training Authority (SETAs) and were in actual fact a set of newly created institutions. The capacity to drive skills development still had to be developed. Janse van Rensburg et al. (2012) further explained that the SETAs had suffered failures such as bureaucratic, rigid and inefficient management; low standards; a lack of information on student needs and firm demand. In addition, they were also plagued by corruption in a couple of sectors. Their capacity to conduct skills planning and demand forecasting to inform sectorial and national strategies were generally not strong enough.

Taylor (2011) explains that the previous few years had seen the accumulation of evidence to indicate that the majority of South African teachers knew little more about the subjects which they taught than the curriculum expects of their children. The cidb (2007) pinpointed the problem, when it report that, the quality of learners who were entering construction- and engineering programmes was also recognized as a challenge to skills development. Academic institutions often highlighted that the critical skills and attitudes of matriculates, irrespective of their matric passes, were often unsuitable for the rigour required in the building construction and engineering studies related in the training institutions. This mismatch resulted in elevated attrition rates as students changed their studies mid-stream and subsequently a low throughput rate was achieved in the building construction and engineering related programmes. Kraak (2004) highlights that the South African economy experienced accelerated growth after 2002. In essence, Rasool and Botha (2011) state that the structural changes in the economy were exacerbating the skill shortages and as McCord and Bhorat (2002) concurred, the economy was moving towards greater capital- and skills intensity and therefore the demand for unskilled workers was also diminishing. This highlighted structural changes in the economy with a growing demand for skilled workers. In addition, Kraak (2004) emphasised that, there was a growing realisation from the government that the path to national economic prosperity depended fundamentally on a highly skilled workforce.

Research Methodology

Leedy and Ormrod (2005) state that the qualitative survey method is suited to answer questions about the complex nature of phenomena, whilst the quantitative survey method is used to answer questions about relationships using variables with the purpose of explaining and controlling phenomena. In order to grasp and uncover the depth relating to the shortage of skilled artisans in South African construction industry, a quantitative survey was conducted. It reflected on the extent of training and supply of artisans and uncovered the effect that fundamental- and institutional issues and challenges have had on the organisations who are member of the Gauteng Master Builders Association (GMBA). Systematic sampling was used with a population size of 300 companies (from GMBA), sample size and questionnaires distributed were 150 respectively. The total number of respondents and analysed questionnaires were 54 – totalling a response rate of 18%. The standard measure used for selecting building contractors and companies was in accordance with the information received from the GMBA. However, the questionnaire was structured using mainly the Likert scale as it is commonly used in research involving questionnaires.

Findings and Discussion

The tables below reflect the outcomes of the respondents depicting their perceptions and opinions towards the factors/ aspects focused on in this study, namely the extent of training and supply of artisans and the effect of fundamental- and institutional issues in the SA construction industry. It also reflect a mean score (MS) ranging between 1.00 and 5.00. The MSs above the midpoint score of 3.00 reflect that in general, the responses related more to the upper- than the lower point of the scale MSs> 3.00 ≤ 5.00, whilst the >1.00 ≤ 3.00 reflects that the responses which related more to the lower- upper point or equal to midpoint of the scale >1.00 ≤ 3.00 were therefore deemed conclusive in nature.

The Extent of Training and Supply of Artisans in the South African Construction Industry Table 1: The relevance of skills training to construction establishment Response% MS Rank Statement Not relevant ……….……………Very relevant Unsure 1 2 3 4 5 Skills training are to your establishment 0.0 0.0 3.7 35.1 42.6 18.5 3.76 1 Skills development according to: ------Senior management 0.0 1.9 1.9 33.3 51.9 11.1 3.70 2 Middle Management 0.0 0.0 5.6 42.6 40.7 11.1 3.60 3 Site Management / Agent 0.0 1.9 7.4 51.9 27.8 11.1 3.40 4 Supervisor / Foremen 0.0 0.0 9.3 59.3 22.2 9.3 3.31 5 Worker (Artisans) 0.0 0.0 22.2 50.0 18.5 9.3 3.20 6

Table 1 reflects the respondents ‗acceptance of the relevance of skills training to establishments. Given that the MS is 3.76, it indicates that skills training are a relevant engagement in their establishments. It was however clearly pronounced that respondents‘ establishments focused more on skills development for the senior- and middle management personnel, than that of site agents, foremen and workers (artisans). The skills development rates for site agents, supervisors and workers in most establishments fall within the range 2.60 < means core ≤3.40, which are between less than relevant to relevant.

Table 2 shows that most of the respondents applied on-site- and off-site training techniques for developing the skills of their workers and this falls within the 3.40 < mean score ≤4.20. This reflects that they often apply on-site- and off-site training. However, 20% of the respondents were unsure if their organisations do make use of formal training institutions such as FET colleges for their workers, which accounts for 37%. It is therefore quite possibly an indicator that there is a lack of collaboration between the formal training institutions and the industry.

Table 2 – Training Techniques Used for Workers (Artisans) Skills Development Response (%) MS Rank Training Technique Unsure Never Rarely Sometimes Often Always On-site training 0.0 0.0 1.9 20.4 57.4 20.4 4.00 1 Off-site training 0.0 0.0 11.1 27.8 44.4 16.7 3.70 2 Formal Training 37.0 11.1 12.9 27.8 9.3 1.9 2.70 3

Institutional issues and challenges in South African construction Table 3- Factors that have contributed to the Shortage of Skills in the South African Construction Industry Response (%) MS Ran Statement Minor ……….……………Major k Unsure 1 2 3 4 5 Poor performance in mathematics and sciences 1.9 0.0 1.9 13.0 37.0 46.3 4.30 1 Declining grade 12 pass rate and low education standards in schools 3.7 0.0 1.6 16.7 48.2 29.6 4.10 2 Lack of resources and weak management in the primary education school system 1.6 1.6 0.0 25.9 29.6 40.7 4.09 3 Lack of expansion of training institutions to local regions 3.7 3.7 3.7 20.4 35.2 33.3 3.94 4 High failure rates in school (primary and secondary) 1.9 1.9 1.9 33.3 37.0 24.1 3.81 5 The learners lack access to practical experiments during training and for qualification purposes 1.9 0.0 7.4 29.6 48.2 13.0 3.63 6 Lack of alignment of industrial requirements with training tutoring standards 3.7 1.9 9.3 33.3 33.3 18.5 3.60 7 Young skilled artisans with industrial experience are few 1.9 5.6 7.4 33.3 35.2 16.7 3.51 8 International organizations are recruiting artisans in SA as skilled artisans are well recognised 7.4 5.6 12.9 25.9 33.3 14.8 3.42 9 Government underfunded Research into infrastructure for innovative construction solution 9.3 7.4 20.4 27.8 22.2 13.0 3.14 10

Table 3 reflects the deduction from responses that ‘the poor performances in mathematics and sciences‘ is a major factor contributing to the shortage of skills in the SA construction industry. It has a mean score > the mid-point of 3.00 and fall within the 4.20< mean score ≤ 5.0 range. This suggests that a factor such as ‗the poor performance in mathematics and sciences‘ is between less than major to major / major effect. However, it was defined that the respondents are of the opinion that the following factors have been perceived as relatively

66 major factors contributing to the shortage of skills, namely, the lack of alignment of industrial requirements with training, lack of expansion of training institutions to local regions, that learners lack access to practical experiments during training, lack of resource and weak management systems, high failure rate in schools and declining grade 12 pass rates. Respondents claimed that common factors contributed to the skills crisis, included having few young skilled artisans in the industry and the recruitment of artisans by international organisations. Having a range fall within the 3.40

Conclusions and Further Research

This research study investigated the levels of training and supply for skilled artisans in the South African construction industry, Gauteng Province. The study was an empirical research using quantitative survey through questionnaire tool. The respondents have clearly indicated that the skilled artisans profile in the South African construction industry is not in a stable state. However, the research findings indicates that there are poor or lack of collaboration between the formal training institutions and industrial player in the South Africa construction industry; poor performance of pupils in mathematics and science remain a major hindrance to the supply pipeline of artisans to the industry; the learners lack of access to practical experiments during training is a concern issues; the inadequacy of resources and the weak management system for schools and training institutions are also the fundamental factors that triggers the skills crisis of artisans in the South African construction industry.

Importantly, these research findings have illuminated the fundamental factors for the skills crisis. In so doing, the study vehemently suggest that the South African construction industry players to need create a solution that will help to minimise the shortfall of skilled artisans in the industry as a matter of necessitate for the survival of the industry. The study further concludes that skills‘ training adds a relevance element to all the levels and positions (including that of artisans) in the organisation's operations in the construction industry. All these are sensitive factors for the South African construction sector‘s survival and its competitiveness globally. However, it's obvious from Table 2 that construction industry need to start making use of formal training institutions such as FET colleges for training of their workers (artisans) as this will form a solid foundation for the harmonisation towards the contemporary activities in the South African construction industry.

In addition to this, the study has identified that the South African government has a pivotal role to play in order to salvage the skills menace in the industry, through provision of funds in the research and development that mainly emphases on building skills capacity of artisan as well as to, initiate and encourage innovative construction solutions that could ease the existing skill challenges. Furthermore, government should reinforce and equip management status, throughout the educational system, including that of primary-and secondary school level, colleges and training institutions. In this regard, it is imperative that training institutions should be expanded to local regions, has its rooms to unleash the great potential that will appeal and attract young people into the industry. Finally, in order to address the shortage of skilled artisans in the South African construction industry. It is imperative to conduct further research in the following areas of skills development in an extensive manner; also an in-depth research study is needed in order to ascertain the type of trade skills of artisans is mostly affected in the construction industry. It is also necessary to conduct research studies on the benefits of expansion of training institutions to the local region; and how the training institutions should embark on strategic programme that will enhance the development of

67 skills of artisans in South Africa. These areas of further research will hold significant elements of information that will help to combat the skills crisis in the South African construction industry.

References Benjamin, C. (2008), Poor education hampering SA growth effort. Business Day, p.5. CDE. (2007), Skills, Growth and Migration Policy: Overcoming the fatal constraint, Johannesburg, South Africa, CDE IN DEPTH , Issue 5 February. cidb (2007), Skills for Infrastructure Delivery in South Africa: The Challenge of Restoring the Skills Pipeline. Pretoria: cidb. Fellow, R. & Liu, A. (2008), Research Methods for Construction, 3rd ed. Oxford: Wiley Blackwell Publishing Ltd. Janse van Rensburg, D.J., Visser, M., Wildschut, A., Roodt, J. & Kruss, G. (2012) Impact Assessment of National Skills Development Strategy II. A Technical Report on Learnership and Apprenticeship Population Databases in South Africa: Patterns and Shift in Skills Formation. HRSC Press. Jeffy, M. (2008), Professions case study report: Artisans/Trades. Cape Town: HSRC Press. Jordaan, N. & Barry, N. (2009), Investigating the Reasons for Lack of Skilled Artisans in South Africa: The perspective of artisans, South African Journal of Industrial Engineering 20(1), pp. 173-184. Kraak, A. (2004), An overview of South African human resources development. Cape Town: HSRC. Leedy, P.D. & Ormrod, J.E (2005), Practical Research: planning and design. New Jersey: Pearson Merrill Prentice Hall. Marock, C. (2008). Grappling with youth employability in South Africa, Human Sciences Research Council, HSRC Press. McCord, A. & Bhorat, H. (2003), Overview of the South African economy, Human Resources Development Review. Cape Town: HSRC Press. Morton, R. (2009), Construction UK: Introduction to the industry, 2nd ed. Oxford, Blackwell Publishing Ltd. Rasool, F. & Botha, C. J. (2011), The nature, extent and effect of skills shortages on skills migration in South Africa, South African Journal of Human Resource Management, 9(1.), pp. 287-298. Rogerson, C.M. (1999), Building Skills: Cross-Border Migrants and the South African Construction Industry, Southern African Migration Project- Migration Policy Series No.11, Idasa, Cape Town. Roodt, J. & Wildschut, A. (2012), Evaluation of the National Skills Development Strategy, 2005-2012. Skills development through structured qualifications: Learnerships and apprenticeships. The trade test- a constraint on artisan skilling? HSRC Review, (10)1. SPAID (2007), Building a 21st Century South Africa: Support Programme for Accelerated Infrastructure Development- Commissioned by the Presidency Republic of South Africa, Pretoria: SUDEO International Business Consultants. Taylor, N. (2011), Priorities for Addressing South Africa‘s Education and Training crisis: A Review Commissioned by the National Planning Commission, South Africa: JET Education Service. Van Rooyen, J. (2000), The new great trek: The story of South Africa‘s White exodus. Pretoria: UNISA Press.

Factors Influencing Skilled Labour Supply in the South African Construction Industry AO Windapo and SJ Odediran Department of Construction Economics and Management, University of Cape Town, South Africa [email protected] [email protected]

Abstract: The paper investigates factors that influence skilled labour supply in the South African construction industry in order to determine whether there is a relationship between trade certification and scarce labour skills. The rationale for the investigation is based on the view of scholars that skilled labour shortage is preponderant in the South African construction; and the perceived shortage contributes to decrease in productivity and product quality. The paper reviews relevant literature and employs a mixed method research approach in collecting empirical data from contracting companies within the Western Cape Province of South Africa that are listed on the Construction Industry Development Board (cidb) contractor register. It emerged from the study that there is no shortage of manpower but there is a shortage of qualified artisans in trades such as electricians, plumbers, welders, fitters and carpenters, who are more technical in nature, require formal training and certification. The level of supply of skilled artisans is attributed to the lack of high-quality basic education, the state of the economy, compulsory certification of artisans, and an aging workforce. It was also found that there is a significant relationship between the need for labour certification and scarce labour skills. Based on these findings, the study concludes that skilled labour supply and shortages would continue to be experienced in the South African construction industry if workers are unable to get formal certification. It is recommended that the South African government should put into place proactive strategies in the form of subsidized technical and vocational schools for the training of tradesmen and improved secondary education, so as to increase the likelihood of the progression of capable individuals into FET colleges, ensuring that the supply of certified craftsmen meets the demand.

Keywords: Construction, Certification, Education, Skill, South Africa

Introduction

Increases in infrastructure spend since 2003 has seen a steady increase in the number of jobs as well as skill shortages that accompany the increase (cidb, 2007). There were various contributors to the increase in infrastructure development and construction activity within South Africa in recent years. These increases in infrastructure development came as a result of the Government‘s R372 billion-investment programme brought about by the Accelerated and Shared Growth Initiative for South Africa (ASGISA) projects, as well as the recent infrastructure developments that accompanied the hosting of the 2010 Soccer World Cup. These activities intensified the skills labour crisis in South Africa (cidb, 2007). Skilled artisans were identified as critical for sustained growth by the government‘s ASGISA as well

69 as other various infrastructure projects (Mukora, 2008), and may be a deterrent to the roll out by Governments‘ of the proposed Strategic Infrastructure Projects (SIPs).

The cidb (2007) defines construction labour as all persons involved in physical construction work. This includes skilled and unskilled labour, which forms the core labour component for the physical completion of the construction process. As a labour intensive industry, construction places heavy reliance upon the skills of its workforce (Agapiou et al., 1995). Skill can be defined as the ability to perform particular tasks at a certain level of competence (Shah and Burke, 2005). These competencies include the ability to perform a set of tasks, the ability to understand what others are doing and why, and the ability to adapt to changes and unforeseen circumstances (Department of Labour, 1997). Unskilled labour is more informal and unclearly defined, comprising of labour, which lacks relevant qualifications and various forms of education and learning (Shah and Burke, 2005). Uwakweh and Maloney (1991) posit that developing countries often experience an abundance of unskilled and untrained labour.

Skills shortage has been a persistent problem and a critical factor facing the South African construction industry (Department of Education and Employment, 2000; Makhene and Thwala, 2009). Skills shortage is defined as an insufficient supply of suitably qualified workers willing to work under existing market conditions, particularly at prevailing wages. There have been extensive studies done on the subject of skills labour shortage in the construction industry and the subsequent ways to alleviate the problem (cidb, 2007). These studies pertaining to skilled labour shortage can be grouped into three categories. The first of these categories identifies and discusses the various factors contributing to the skilled labour shortages. The second of the categories deals with the impacts and consequences of the skilled labour shortages. The last of the categories deals with the methods and means of dealing with the alleviation of the skilled labour crisis.

The few studies that have focussed on the South African labour market have managed to give comprehensive and concise factors, which are uniform amongst the various studies, are common with other construction industries in developing markets. Ademeso et al. (2011) who studied the Nigerian construction industry and Agapiou et al. (1995) who examined the UK construction demonstrate this. These studies both identify the cyclic nature of construction work and the image of the construction industry as major contributing factors to skills shortage. Factors, which have been greatly examined, offer an opportunity to understand the skilled labour shortage crisis in the construction industry. For example, the cyclic nature of construction markets has resulted in the industry experiencing significant fluctuations in output, which has influenced employment and training level requirements (Agapiou et al., 1995; Morton and Jagger, 1995). A recession in the construction industry is accompanied by job losses as companies downsize or go under due to paucity of construction work (SA Construction News, 2011), the unemployed skilled workers look for opportunities in other industries as well as in cross-border construction industries (Mackenzie et al., 2000). When the economy recovers, the skilled workers are reluctant to return to the construction labour market, therefore further elevating the skilled labour shortage (Agapiou et al., 1995).

Therefore, this study examines the factors influencing skilled labour supply in South Africa in order to understand whether there are pivotal factors similar to those established in other developing countries. The study proposes that there is a significant relationship between the need for labour certification and perceived level of skill shortages in the construction industry. To conduct the study and test this proposition, the research first of all undertakes an analytical review of extant literature pertaining to skilled labour shortage in South Africa.

Thereafter, it collects empirical data through a mixed research method approach that includes interviews and questionnaires, the data collected is analysed using inferential and descriptive statistics and finally, it provides conclusions and recommendations that addresses the problems of the study.

The Labour Market and Factors Influencing Skilled Labour Supply

This section examines the state of the South African labour market with emphasis on skilled labour supply in the construction industry. It presents the current state of skills supply and identifies holistic factors influencing the supply of skilled labour documented in literature.

Overview of the South African Labour Market The South African labour market is characterised by the predominance of an oversupply of unskilled workers and a shortage of skilled ones (Department of Labour, 2007) and despite the fact that a number of reforms have been initiated; the country still faces substantial skill shortages (Rasool and Botha, 2011). According to Kraak (2008), the skill shortages experienced in the South African labour market are major impediments to economic growth and job creation in the country. The definition of skill is generic throughout the literature reviewed, with all sources attaching a qualification and a certain level of competence / expertise to a particular activity (Shah and Burke, 2005; Department of Labour, 1997).

The construction industry is one of the largest employers of labour in South Africa (Department of Labour, 2003). In 2005, the construction industry employed up to two thirds of all craft related workers (Mukora, 2008) and by 2011, the number of employees that were involved in the construction industry was 1031000 employees (Mayekiso, 2011). Although the industry employs a large number of people, there was a decrease in formal employment in the early 1990s to 2001, with the construction industry loosing over 200000 jobs (cidb, 2007). The increase in infrastructure investment in 2003, in addition to the construction of the Guatrain and infrastructure for the 2010 FIFA World Cup, stimulated an increase in employment levels. This resulted in an increase in demand for qualified managers, supervisors and artisans, which was hampered by the lag in graduation rates in construction and engineering skills (cidb, 2007).

In South Africa, skills shortage exists in many industries including construction and has been acknowledged by Government and industry (Department of Labour, 2003). Brier (2009) state that there is a skills crisis because it takes longer to source skilled workers in the event of a surge in the demand for skills resulting from various infrastructure and large-scale projects. The preponderance of skill shortages are blamed on the education system, which is struggling to overcome decades of neglect and dysfunction under apartheid when the education of black people was under-funded and of a poor quality, the decline in the apprenticeship system and the failure of substitute interventions such as training through learnerships and FETs (Makhene and Thwala, 2009).

Investigation into Factors influencing Skills Shortage The following are the factors identified in literature as influencing skills shortage in the construction industry:

Image of the industry The construction industry is perceived as a job of low social standing and lack attractiveness due to its physical demand, long hours, remote sites and its nomadic life style (cidb, 2007). Career artisans require people with hands on input rather than just supervision. According to Mukora (2008), today‘s youth has no preference for hands on labour and would rather be employed in computer related work. As a result of this poor image, the industry has struggled to attract young people, has failed to replace the labour that has left the industry as well as satisfy the increased demand for skilled labour (Ademeso et al., 2011; Cattell, 1997).

Role of Government The government plays a significant role in the supply of artisans through the funding of training facilities (Mukora, 2008). The South African government for example has attempted to accomplish this through the formation of Sector Education and Training Authority (SETA), with the Construction Education and Training Authority (CETA) as the primary institution driving this initiative in the construction industry (cidb, 2007). However, it was revealed that the South African government has sought to over regulate in some instances and has failed to ensure that various critical institutions of learning are functional so as to meet the demands of industry (Mukora, 2008).

Quality and Relevance of the Training received by artisans The cidb (2007) posits that the skills taught in the various training programmes are not making a significant contribution to the specialised skills required by the industry.

Aging Workforce Aging members of the workforce, who are near retirement, affect the supply of labour. With the supply of labour being affected by the low number of skilled workers entering the job market and a significant portion of the number of qualified artisans, about 30% who will be leaving the job market (Mukora, 2008).

Cyclical nature of the demand for construction services The cyclical nature of construction work has been noted as resulting in fluctuations in potential output, employment and training levels (Agapiou et al., 1995; Drucker and White, 1996; Gruneberg, 1997). Difficulty arises in managing and planning for changes in the workforce through the peaks and downturns in the industry (Ademeso et al., 2011).

Technological Advancements Changes in technological advancements in construction have resulted in changes made in the demand for various skilled labours (Clarke and Wall, 1998). According to DfEE (2000), the development of new construction methods and processes are redefining the skill requirements of the industry.

Economic conditions According to Wells and Jason (2010), the adverse economic conditions have caused construction companies to dispense with hiring labour permanently in favour of employing labour on a casual basis. In South Africa, this has resulted in the proliferation of labour brokers (Hemson, 2000; and Skinner, 2002).

Need for Certification The training that occurs in the informal sector is seldom certifiable because it is not a pre- requisite for obtaining employment in the informal sector (Cattell, 1997). Awe (2004) views this lack of requirement for compulsory certification as a barrier to the provision of skilled workers. This is because, in the non-compulsory certification segments, new entrants do not always see the value in completing an apprenticeship programme, and those who begin such a programme may be inclined to discontinue during periods of high demand for skilled workers in the industry.

Research Methodology

The study employs a sequential mixed method research approach involving personal interviews and a questionnaire survey in collecting empirical data from a sample of contracting companies within the Western Cape Province of South Africa that are listed on the cidb contractor register. The population of the study consisted of all 1497 building and civil engineering contractors based in the Western Cape and listed in Grades 2 to 9 of the cidb Register. The simple random sampling technique was used in selecting contractors from each grade to make up a sample size of 460 respondents. At the end of the survey period, 63 responses were obtained which translates into a 14% response rate.

The questionnaire survey gathered information pertaining to the investigation into the extent of skilled labour shortage and the factors influencing the shortage, while personal and telephonic interviews were used in unravelling factors that might have been overlooked in the questionnaire survey and providing context to the preliminary results obtained. The data obtained from the survey were analysed using descriptive statistics – the Mean Item Score (MIS) and inferential statistics – the Spearman‘s coefficient of rank correlation,. A mean score will represent the results of the MIS, which will be a number ranging from 0 to 1. The function of the MIS score is to rank the data collected from the rating scales used in the questionnaire. Equation 1 shows the formula of the MIS analytical technique.

MIS = 5M5 + 4M4 + 3M3 + 2M2 + 1M1 …………..Equation 1

5 x (M5 + M4 + M3 + M2 + M1)

(Where: M1 = none; M2 = low; M3 = average; M4 = high; and M5 = very high) The Spearman‘s coefficient of rank correlation  (rho) (see Equation 2) is a measure of the association between two variables, which is determined from the rank of observations of the variables (Fellows and Liu, 1997):

 = 1 – 6  D2 ………..Equation 2 n(n2 – 1)

(Where: D = difference between the ranks of two variables; and n = number of observations). The Spearman correlation test is used to establish whether there is a relationship between the perceived level of labour shortage and the need for labour certification.

Eight telephone and personal interviews were undertaken. The interview questions sought to know from the respondents (1) the factors, which determine the extent of the skilled labour shortage experienced by the particular company; and (2) other factors perceived by the respondents to influence the severity of the skills shortage for various firms in the 73 construction industry. The data collected was transcribed and analysed using thematic analysis. Themes emerging from the interviews are used in gaining insight and contextualizing the factors influencing skill shortages in the South African construction industry.

Findings and Discussion

In this section, the empirical data collected through the questionnaire survey and interviews conducted are presented, analysed and discussed.

Distribution of Respondents by Contractor Grade Table 1 shows the distribution of respondents‘ in the survey by their contractor grade. Table 1: Distribution of Respondents by Contractor Grade Size Small Contractor Medium Large Contractor Total cidb Grade 2 3 4 5 6 7 8 9 Frequency 2 1 4 30 16 7 1 2 63 Total 7 46 10 Percentage 11.11% 73.02% 15.87% 100%

Table 1 reveals that the study sample consisted of mainly medium sized contractors, followed by large and small sized contractors.

Perspectives of Scarce Skills The study sought to know the level of difficulty experience by contractors in sourcing skilled labour. The data obtained in this regard is presented in Table 2. Table 2: Level of difficulty experienced in sourcing skilled labour Frequency Total MIS Rank Trade None………………………Very High Response 1 2 3 4 5 Carpenters 6 8 11 14 13 52 0.68 1 Fitters 4 7 12 16 7 46 0.67 2 Electricians 8 13 12 18 8 59 0.62 3 Plumbers 7 10 14 13 8 52 0.62 3 Welders 4 12 17 11 4 48 0.60 5 Roofers 7 13 12 13 6 51 0.59 6 Bricklayers 9 16 12 10 7 54 0.56 7 Tilers 7 10 24 8 3 52 0.56 7 Plasterers 8 12 18 6 6 50 0.56 7 Painters 12 18 10 6 5 51 0.50 10

Table 2 indicates that contractors have more difficulty in sourcing carpenters, fitters, electricians and plumbers than bricklayers, tilers, plasterers and painters. A few contractors indicated that there were other trades not listed in the questionnaire that they had difficulty in finding. For example, instrumentation technicians, who take care of the plant on site, heating, ventilating and air conditioning (HVAC) technicians, steel fixers, shutter hands and sheet metal workers.

Trade in which contractors require skilled labour to be certified before employment Table 3 presents data collected on the trades which contractors require some form of labour certification before employment. It can be seen from Table 3 that while 88% of the respondents affirmed that their companies require electricians to be certified before

74 employment, 19%, 12%, 8% and 6% required that bricklayers, tilers, painters and plasterers be certified respectively.

Perceived factors impacting on skilled labour supply The study sought to know the factors perceived by the respondents as contributing to skilled labour supply. The data collected in this regard is presented in Table 4. Table 4 shows that from a ranking perspective, respondents‘ view economic conditions, lack of basic education and compulsory certification as key factors affecting skilled labour supply. Table 3: Trade in which company requires labour to be certified Frequency Total Mean Rank Trade Yes No Response Response Average Electricians 52 7 59 0.88 1 Fitters 32 14 46 0.70 2 Plumbers 34 17 51 0.67 3 Welders 33 18 51 0.65 4 Roofers 24 28 52 0.46 5 Carpenters 13 38 51 0.25 6 Bricklayers 10 42 52 0.19 7 Tilers 6 45 51 0.12 8 Painters 4 48 52 0.08 9 Plasterers 3 48 51 0.06 10

Table 4: Factors impacting on skilled labour supply Frequency Total MIS Rank Factors None………………………Very High Response 1 2 3 4 5 Lack of basic education 2 5 8 24 22 61 0.793 1 Economic conditions 1 4 10 28 18 61 0.790 2 Compulsory certification 3 9 17 15 17 61 0.711 3 Aging work force 2 9 17 22 11 61 0.702 4 Cyclical nature of construction 2 4 26 18 9 59 0.695 5 Technological challenges 3 9 17 19 12 60 0.693 6 Low income 2 7 25 17 9 60 0.680 7 Health & Safety requirements 3 18 14 19 8 62 0.635 8 Perception of the industry 7 8 18 19 6 58 0.631 9

Test of relationship between labour certification requirement and labour shortage The study sought to test the proposition that there is a significant relationship between the need for labour certification and perceived level of skill shortages experienced in the construction industry. Data presented in Tables 2 and 3 were used in calculating the difference in rank, which was established as 42. Substituting this into the formula for calculating the Spearman rank correlation coefficient in Equation 2,

ρ = 1 – 6 x 42 = 1 – 0.25 = 0.75 10 (102 – 1)

The observed value of  (rho) (0.75) is larger than the tabulated critical value and is significant at the 0.05 level of significance for the two-tailed test. Based on these findings, it can be concluded that the need for trade certification requirement is a significant contribution

75 to the perceived level of skill shortages in the construction industry. Workers may have the necessary knowledge or skills however; they need a certificate to prove it.

Interview Findings The factors influencing skilled labour supply established in the interviews corroborated those, which emerged from the questionnaire and literature surveys. Prominent among these factors are the lack of education, economic conditions, compulsory certification and the aging work force. The interviews did how ever give additional insight into factors currently relevant to the skills labour supply in South Africa. The interviewees also viewed that:

All companies in the construction industry need skilled labour as part of their work force. This is to ensure that the quality of the work they do is consistent and of the required standard - therefore skilled labour plays an integral role in the success of a construction firm as it impacts on its profitability:

 The number of skilled labour a company needs is related to their size and value of tenders they have won. That is, large companies will have a different scale of low, medium and high skilled labour needs when compared to a small company that normally works as a subcontractor. According to a respondent, ―basically, it‘s a function of costs and profits. For example, a big company like Murray and Roberts might have a pool of skilled workers employed full time, while a small sub-contractor will only have a few, and employ more workers on an as need basis. A company, ideally, wants to employ the number of labour as related to their needs, i.e. whether they have work or not.‖

 The issue of labour brokers (e.g. Colven Nkomo) as a factor influencing skilled labour supply was also mentioned. According to a respondent, ―labour brokers generally have both skilled and unskilled labour they can call on and employ when they are needed by the companies they service. These workers are not employed by the company, but are outsourced and that is why some companies prefer this option because it is easier and cost effective. However, due to the consistency and quality, which is needed in the work produced, they won't entirely depend on this source of skilled labour, companies will need to have a few of their own skilled labourers to ensure quality and consistency of their work.‖

 Another factor that emerged is the procurement targets requirement in government contracts. Government requires a certain percentile of labour to be employed from the local area of where the project is situated, BBEEE sub-contractors and suppliers as well as a certain amount of money put aside for training some of the workers. According to a respondent, ―this may to some extent, affect the amount of skilled labour a company will choose to have, if they have to utilise local labour and BBEEE sub-contractors‖.

Discussion of Findings It emerged, from the survey and interviews, that construction firms need skilled labour as part of their work force. This is to ensure that the quality of work they do is consistent and of the required standard. Therefore, skilled labour plays an integral role in the success of a construction firm as it impacts on its profitability. It emerged that the trades in which contractors experience difficulty in sourcing are those with a technical nature such as plumbers, electricians and carpenters. These artisans are said to require greater levels of accuracy, a more rigorous education and training process, and certification. It was found that the shortage in skilled artisans is correlated to the need for certification; and key factors perceived as contributing to the level of skilled labour shortage is the lack of basic education,

76 which may affect the ability of an individual to enter Further Education and Training (FET) colleges, which is suggestive of a poor education system.

The findings of the study are aligned to previous studies by Awe (2004) – need for certification; Wells and Jason (2010) – Economic conditions; Agapiou et al. (1995); Drucker and White (1996); Gruneberg (1997); and Ademeso et al. (2011) - Cyclical nature of the demand for construction services; and Mukora (2008) Aging workforce. There were no previous studies that considered lack of basic education as a factor influencing skilled labour supply in the construction industry, or which establishes a relationship between need for compulsory trade certification and scarce labour skills, which are key findings of this study.

Conclusion and Further Research

This paper examines the factors that influence skilled labour supply in the `South African construction industry in order to determine whether there is a relationship between trade certification and scarce labour skills. The study made use of a mixed method research approach in eliciting empirical data from contractors based in the Western Cape province of South Africa. It emerged that there were skilled labour shortages in the construction industry especially within the electrical, plumbing, welding and fitters‘ trade and this shortage is correlated to the need for certification. It was also found out that the key factors perceived to affect skilled labour supply are the lack of basic education, economic conditions and need for certification from a ranking perspective. Based on these findings, the study concludes that South Africa will continue to experience skill shortages particularly amongst the highly technical trades in which accuracy is required such as electricians, plumbers, fitters and welders if the basic education system is not strengthened and if these category of workers are unable to get certified.

The paper recommends that the South African government should put in place proactive strategies in the form of subsidized technical and vocational schools for training tradesmen and for improved secondary education that will increase the likelihood of the progression of capable individuals into FET colleges. It is also recommended that future research that will involve at least a third of the provinces in South Africa should be undertaken to examine the obstacles affecting the training and certification of construction industry artisans. The research conducted is limited to the Western Cape Province of South Africa and therefore care should be taken when generalizing its results to the general contractor population in South Africa.

Acknowledgement

The authors would like to acknowledge with thanks, the assistance of the following people in conducting the survey and interviews: Dominic Benn, Bulelani Gwabeni and Tatenda Kanyangarara.

References Ademeso, O.S., Izunnwanne, O. & Windapo, A.O. (2011), ‗Examining Factors Contributing to Shortage of Skilled Workers in the Construction Industry‘, NMMU Construction Management 40 Conference Proceedings, 27-29 November, Protea Marine Hotel, Port Elizabeth, South Africa, pp. 204-213.

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Skinner, C. 2002, Understanding formal and informal economy labour market dynamics: a conceptual and statistical review with reference to South Africa. School of Development Studies, University of Natal, pp. 25. Uwakweh, B.O. & Maloney, W.F. (1991), ‗Conceptual Model for Manpower Planning for the Construction Industry in Developing Countries‘, Construction Management and Economics, 9(5), 451-465. Wells, J.S. & Jason, A. (2010) Employment Relationships and Organizing Strategies in the Informal Construction Sector, African Studies Quarterly, 11(2&3), 107-124.

Experiences of women in the construction industry: A case of South Africa GT Dlamini and WM Shakantu Department of Construction Management, Nelson Mandela Metropolitan University, South Africa [email protected] [email protected]

Abstract: Current trends in the academic sector and business indicate an increase in the proliferation of women in construction. More women are being employed and trained in various construction professions. In the same breath, the increase in number of women entrepreneurs in the industry not only depicts upward mobility but it also shows the depth of their professionalism and expertise. Consequently, these women now provide a pool of experts regarding the participation of women in an industry that has otherwise been traditionally patriarchal. However, despite the presence of this pool of experts, there is a dearth of research regarding their experiences in the industry. This paper reports on research that explored the experiences of women in the South African construction industry. The study followed an exploratory approach and qualitative semi-structured interviews were employed to gather data. A purposive sample of eight (8) women involved in cidb level 9 construction firms was selected. The sample represented the various construction professionals such as quantity surveying, procurement, finance, training and human resources. The data was further analysed through interpretative phenomenological analysis (IPA) to extrapolate on personal experiences through a detailed examination of each case. The findings indicate that, central to the discussion of women‘s experiences in the construction industry are; invasive masculine culture of the industry, poor working conditions, poor work-life balance and negative attitudes and perceptions as well as upward mobility. The research also shows that some women are thriving in the industry due to support from their male colleagues.

Keywords: Construction, empowerment, organizational culture, women, work-life balance

Introduction

Women account for approximately forty per cent (40%) of the work force in South Africa (OECD, 2012). Their participation in the workforce largely remains within occupations that are traditionally associated with females such as domestic work and agriculture (OECD, 2012). However, in recent years due to the extensive transformation agenda, women are slowly becoming visible in other professions that have been previously associated with male workers. Within the construction industry, there is a diminutive but significant increase in women employed in the industry (Ozumba & Ozumba, 2012). That is to say, the number of women employed in industry does not match the demographic that women represent nationally. However, compared to previous years more women are now actively participating in construction professions. These women provide an expert pool of knowledge from which

80 women‘s experiences can be understood within a construction environment in the South African context. Granting that the experiences of women working in management for example, have been studied extensively, the specific narratives of those that are enrolled in male dominated industries merits further attention (Watts, 2009). The rationale is that women must be part of the mechanisms that are responsible for feminizing if not modernising the construction industry. Consequently, by taking into account the experiences of women already employed in the industry, the industry stands a better chance of implementing effective recruitment and retention strategies. In addition, the industry will be able to provide solutions to the challenges that women face in the construction industry.

Industry Culture

It is widely accepted that construction is a male dominated industry (Agherdien & Smallwood, 2013). Therefore the industry culture as defined and implemented by the males in the industry regulates female workers‘ inclusion or exclusion in various organizational processes and culture. According to Haupt and Madikizela (2009), the cultural setup of the industry militates against women‘s progression through an exclusionary and discriminatory construction environment. Since the industry is male dominated, research and other strategic development is spear headed by male counterparts without necessarily bringing out the voices of the women that are active in construction. In fact, due to the persistent patriarchal culture, women‘s issues or experiences are generally not awarded the importance they deserve. Thus the construction industry is not accommodative to women (English & Le Jeune, 2012). Even though the transformation agenda has sought to stabilise the inequality through laws and policies, women still experience many forms of occupational gender segregation (Smith, 2008). This suggests that gender related interventions have a negligible impact on the state of women employed in construction (Ozumba & Ozumba, 2012). It comes as no surprise therefore that the feminist discourse advocates that the contribution of women, based on their experiences, will redefine and improve the culture of the industry.

Research Methodology

This study is qualitative in nature and is located in the Interpretivist paradigm. This approach embodies the principle that there is a fundamental difference between research conducted in natural sciences and that in the social or historical scientists (Hammersly, 2012). Interpretivists argue that it is impossible to understand people‘s actions and social institutions without taking into account the nature of their perceptions, beliefs and attitudes (Neuman, 2003). Studies within this philosophical orientation seek to determine how people conduct their day-to-day activities and tasks as well as interactions with each other in organizations (Neuman, 2003). This research undertook an exploratory approach. Exploratory studies are commonly appropriate for preliminary investigations into relatively unknown areas of research (Terre Blanche, Durrheim, & Painter, 2006). Furthermore, exploratory approaches are suitable for studies that seek to analyse social phenomena. Exploratory research conducted through the use of open, flexible and inductive approaches reveals speculative insights and new phenomena (Terre Blanche, Durrheim, & Painter, 2006). Ideally, the best techniques for collecting data in this form of research, consistent with the interpretivist paradigm, includes semi-structured interviews and observation (Terre Blanche, Durrheim, & Painter, 2006).

Thus, an interview protocol formed the data collection process for this study. In addition to the series of questions that were presented, the women were requested to detail their general 81 experiences in the construction industry. The women were purposefully selected by virtue of their qualifications and work experience in the construction firms. The interviews were recorded, transcribed and coded. Furthermore, during the interview process the researcher compiled notes for each participant and they were reviewed during the analysis. The interviews were analysed through interpretative phenomenological analysis (IPA). IPA is a method used to analyse data through the interpretation of subjects‘ rendition of personal experiences. This method draws from phenomenology, which focuses on individuals and first hand experiences of the phenomena of the world and hermeneutics which refers to the theory of interpretation and idiography which focuses on the detailed examination of cases (Smith, 2011). This approach has been used largely in psychological research; however, it is fast gaining ground in other disciplines such as humanities and management that operate within the qualitative research sphere (Fade, 2004; Shinebourne, 2011). It offers researcher the opportunity to engage participants about their lived experiences.

Critically, in relation to this study IPA is best suited as a data analysis strategy because its theoretical design suggests that knowledge and understanding are generated from cultural and sociological contexts (Shinebourne, 2011). Furthermore, IPA is an inductive process, with a sensitive and contemplative focus because the researcher is required to assess the participants‘ account of phenomena in order to highlight the important issues (Griffin & May, 2012). IPA complements exploratory studies, which in most cases utilise purposive sampling techniques and interview protocols (Shinebourne, 2011). Obviously, the on-going debate on biasness of qualitative methods forces IPA practitioners to accept that they too bring their own perceptions which ideally, should not interfere with the process (Griffin & May, 2012). From the standpoint of IPA practitioners, the only way to understand participant‘s experiences is through paying attention to participants‘ accounts. Smith (2008) further points out that the IPA approach allows flexibility to ensure that unanticipated themes or research areas emerge during analysis. Central themes were generated from the interviews and they are detailed in Section 4. A sample of eight (8) women from different construction firms in the grade 9 cidb category was purposefully selected.

Findings and Discussion

This section outlines the results of this research.

Profile of the Participants The women that formed part of this enquiry varied according to age, experience and profession in the construction industry. Table 4.1 represents the age, role in the organization and tenure that each participant had completed in the specific construction firm by the time of the interview. The table is indicative of the concentration of women in administrative roles than in production roles in construction.

Table 4.1: Participants Profile Participant Age Sex Job Profile Tenure A4 24 F Quantity Surveyor 4 A5 31 F Quantity Surveyor 5 A6 46 F Financial Manager 8 C2 25 F Procurement Admin 5 E1 32 F Human Resources Officer 12 E2 53 F Organizational Development Director 13 F1 42 F Training Executive 2 F4 32 F Organizational Performance Manager 2

Analysis Each of the women that participated in this research opined on their experiences in the construction industry. Invariably, their experiences were similar despite the different situations such as age, tenure and portfolio in the different construction firms. Therefore upon analysing each transcript, central themes were generated to highlight the major experiences and they are discussed below.

―It is still a man‘s world‖ Global statistics indicate that men still constitute of a higher proportion of the workforce in the construction industry and women remain under-represented. This holds true for the South African context where, over 80% of the workforce consists of males. The regulation of the industry in terms of policy, legislation and decision-making still rests on the male counterparts in construction. Similarly, the cultures that persist in the construction firms are far more supportive to men than women. That means the organizational structures and practices within the construction firms are more suited for males than women. One of the participants indicates that;

“The construction industry is a just a boys club. It is difficult to penetrate this club. They operate according to boy‘s rules. Even the social events represent the male. Social events include watching rugby and drinking whisky‖

The women indicate that even though the transformation processes of the country have eased their entry into the construction industry, decision making is still reserved for males. The few women that earn the opportunity to participate in decision-making processes of the construction firms, experience a lot of prejudice. One of the women who occupy an executive role in one organizations explains;

“I am the only woman in the executive and I get despondent because I find myself being the only one that has to fight the battle for women. I experience a lot of prejudice for advocating for women‘s interests‖

Women that occupy managerial or executive roles also find a deep sense of loneliness in construction firms. In most cases they have to fight their battles alone without the support of the other male executives. Some of the women stated that, decision making is often subjected to a ballot and the majority which constitutes of males, always rules. So the women have a choice to become despondent or to align themselves with decisions that they are not comfortable with. Pursuing their ideas is an insurmountable task unless the management team is open minded about issues of equity and gender. One of the woman notes that;

―My first meeting here, I was surrounded by men at the round table. It is very lonely‖.

This just confirms that, despite the comparative increase in the figures of women in the industry, the under representation of women in the South African construction industry persists.

Working conditions The construction industry is known for its harsh working conditions. Women in the industry struggle because the relevant policies and legislation aimed at making working conditions in the industry more amiable generally not implemented. For instance one of the participants indicates; 83

―We have changed our maternity leave 4 times in the last 13 years…but still women earn 50% of their salary for maternity leave. Other industries are way ahead‖

Another woman indicates;

―Working on site has its challenges as a woman. Working away from home is worse…sometimes women share ablutions and accommodation with their male counterparts and that is wrong according to labour laws‖

Some sites do not have ablution facilities and the reason behind this is that, some firms do not even anticipate hiring women, which would warrant such facilities.

In terms of physical labour, women are just as capable as their male counterparts. Women also tend to be more neat and meticulous. The women also indicated that, women that choose the construction industry are usually tenacious and physically capable of the enduring the harsh conditions. Their decision to stay and withstand these conditions is an economical decision. Accessing employment opportunities trumps the working conditions in the industry.

Work-life Balance Work-life balance is a critical issue for women in construction. It is an important determinant of women‘s progression in the construction industry. The women that participated in this study confirm that, work-life balance makes or breaks their careers in the industry. Time is an important factor. Women still have traditional, biological and social responsibilities such as taking care of families and raising children. The industry is characterised by long working hours as well as working away from home. As a result women find themselves in a difficult position and have to choose between work and family. One of the quantity surveyors states that;

―I was supposed to meet my friends for drinks this weekend. I had to pass because I have been working away for consecutive weekends. I opted to go for a movie with my daughter. I am also married and I need to fulfil my responsibilities as a married women. So I constantly have to weigh how and what I spend my limited time outside work‖

Due to this constant juggle women are forced out of production roles to administrative roles and consulting to ensure that their families are not side-lined in their quest for upward mobility. The organizational director indicates that;

―We lose a lot of highly skilled women due to the work-family conflict that is instigated by the industry‖

Another participant explains that;

―When my life is not balanced, my performance suffers greatly‖

This indicates that work-life balance not only causes personal conflict, it also impedes performance. Career progression and upward mobility is determined by performance and due to the pressures of work and family life women are highly likely to fall behind in this aspect. One of the participants explains that;

―One of the women site workers relinquished her site job for an administrative job. She had a baby but was expected to work out of town. I would never leave my child for a whole week at

that age. Another lady has successfully been granted permission to be placed at a site close to her children. But it was a battle‖

Another woman quips;

―Moving around makes it difficult for the women to stay in the industry. It‘s different for a man to leave a wife and move to another site than it is for a woman to leave her family. When a woman leaves, the whole family has to move‖

The data reveals that the construction industry‘s recruitment strategies are more inclined to young male professionals because they are able to work overtime and away from home. For most construction firms, it makes business sense to attract and retain such employees. Unfortunately, women will continue to be excluded because work-life balance is an important factor for women who desire to advance their careers. In that sense, the industry will remain male dominated. Alternatively, it could be that, women are also choosing to refrain from the industry because it is known for poor work-life balance. Some of the women indicated that, supportive families, partners and spouses often alleviate the conflict by stepping into the roles that are traditionally set for women. In such cases women are then able to take up more responsibilities.

Working twice as hard Women that aspire to have successful careers in the construction industry have their work cut out for them. They have to work twice as hard as their male counterparts to prove their competence. It is a daily battle because of the attitudes that are entrenched in the male culture that exist in the industry. This is a sentiment shared by all the women that participated in this study. One of the women states that;

―It is tough for women working in the industry. You have to constantly prove yourself. I don‘t expect to be treated like someone on a pedestal‖

A quantity surveyor expresses that;

We put a lot of pressure on ourselves. We don‘t want to be seen as using our femininity as a crutch. So we do much more to prove our equal ability. Sometimes you are accused of it, so you still have to work harder to prove that you are not using femininity as a crutch‖

Another notes that;

Despite our qualifications, men in this industry think we don‘t know anything about construction. They don‘t believe that you can do it, so you have to work extra hard to prove yourself‖

Apart from the pressures of the industry, women have the added pressure of working twice as hard to prove their abilities. This is a recipe for burnout, fatigue and despondency especially if is it is not kept in check. Regrettably, most of the women indicate that it is an on-going problem. They state that the only solution is to leave the industry or change to administrative portfolios. In addition, the women further state that, the effort sometimes does not yield the desired awards such as recognition and increased remuneration. Men still earn better salaries irrespective of the role or job description.

Attitudes and perceptions Women in construction experience a mix of negative attitudes and perceptions about their participation in the industry. Amongst the male counterparts, there is an on-going debate about the capability of women to withstand the realities of the construction industry. The women that participate in this study indicate that, men are slowly adapting to their presence but they would rather have women working in office related jobs than in production circles. Therefore, women working on site, especially if they hold a managerial role, are likely to experience disrespect and insubordination. One of the women indicates that;

―Men onsite will not listen to a woman‘s instruction‖

Since the industry is reflective of the male dominance of the industry, the socio-cultural perceptions that they carry state that a woman cannot give instructions to a male worker. Furthermore any effort to supply ideas and suggestions will be shot down because the male workers think they know more about construction work than women do. Women are still treated with inferiority. One of the women states that;

―Men are borne of women but the significance of that goes out of the window when they come to the office. They forget where they came from. They were raised by women and they are great because of those women that raised them‖

Another woman states that;

My line manager will not ask a male colleague at the same level as me, to make tea for them or ask them to call someone. But it easier for him to call me and make those requests‖

Since it is a male dominated industry, soft issues are generally ignored. Women are emotional beings but they constantly have to restrain themselves lest they be labelled with degrading terms such as ―cry baby‖. One worker states that;

―You need to keep your emotion in check otherwise you will be labelled as a hysterical woman‖

Meanwhile men are allowed to express their emotions at will with aggression, anger, tantrums, outbursts and sometimes, violent behaviour. Their behaviour is generally tolerated whereas women are given derogatory labels if they express the same behaviour. Some of the women also indicate that firmness is often construed as bossiness yet when men exercise shrewdness it is deemed to be effective leadership. This enumerates that women are subjected to prejudice, ridicule and stereotyping in addition to forms of harassment and discrimination. These perceptions and attitudes are a symptom of male hegemony that is entrenched in the industry culture.

Enabling Environment Most of the women indicated the industry is beginning to change as more women gain access into it. The male counterparts are becoming more open minded towards gender issues and equity in the profession. For instance, some of the women stated that they were successful construction professionals as a result of the on-going support and mentorships from the male counterparts. In some cases management which is represented by a youthful mix of construction professionals, a far cry from traditional construction is more sympathetic to the plight of women. In addition the women that choose to stay in the profession as a result of

86 their personal aspirations, job satisfaction and personal mobility. Thus despite the many challenges that women face, construction firms are slowly integrating women into all construction portfolios albeit at a slow rate. The leadership in construction firms is also implementing various strategies that will improve the status of women in the industry. Some of the construction firms provide learnerships and apprenticeships to university students and retain them even after they graduate.

Conclusion and Further Research

This paper outlined the various experiences of women working in construction firms in South Africa. The findings indicate that although there is an increase in women that are choosing careers in the construction professions, they continue to encounter negative experiences. The construction industry is still very sexist; and it is in favour of males due to male dominance and the culture is espoused in the same manner. The attitudes and perceptions, which are entrenched in the male value systems, are generally negative towards women who choose careers in construction. Consequently, all organizational processes such as remuneration and upward mobility are still in favour of men. Women still have to work twice as hard to reach the organizational levels that are occupied by men. This poses a conflict between their professional aspirations which require them to spend more time and energy and family responsibilities which they cannot sacrifice. As a result work-life balance is difficult to attain for women in construction. Notwithstanding the plethora of difficult experiences, the study further shows that the levels of support for women are improving. The women that participated in the study indicated that their presence in the construction industry was because the industry is slowly becoming accessible and supportive. Ultimately, the culture in the industry which determines organizational processes needs to be modified and adapt to modern global practices that are supportive of women to the extent that their experiences are meaningful and positive.

Perhaps, specific strategies need to be created to decipher the gender responsibilities for each gender within construction firms. Women, by virtue of participating in the construction industry, receive empowerment from early stages of life and their careers and this gives them the aptitude to choose careers in construction. Men on the other hand, are not empowered, particularly in male dominated industries, to work with women. Thus, further research and strategic thinking needs to be directed to empowering men in the construction industry so that they are able to coexist with female professionals. Possibly, sometime in the near future, the worth and contribution of women in the industry will be accentuated and their experiences will be more positive than they currently are.

Acknowledgement

This paper is extracted from a PhD thesis that outlines organizational culture and work-life balance in the construction industry. A related paper authored by the same authors and titled ―The impact of the construction industry culture on the work-life balance of women employees: A case of South Africa‖ inspired the writing of this paper. The latter paper was presented at the TG 59 ―People in construction‖ (6-9 April 2014) conference.

References Agherdien, S. & Smallwood, J. (2013). Women in South African construction. CIB World Building Congress. Australia: CIB WBC.

English, J. & Le Jeune, K. (2012). Do professional women and tradeswomen in the south african construction industry share common Employment barriers despite progressive government legislation. Journal of Professional Issues in Engineering Education and Practice, 138(2), 145-152. Fade, S. (2004). Using interpretative phenomenological analysis for public health nutrition and dietitic research: A practical guide. Proceeding of the Nutrition Society, 63, 647- 653. Geldenhuys, M. (2011). Demographics of women in the workplace. Johannesburg: South African Board for People Practices (SABPP). Griffin, A. & May, V. (2012). Interpretative Phenomenological Analysis. In C. Seale (Ed.), Researching Society and Culture. London: SAGE. Hammersly, M. (2012, September). Methodological Paradigms in Educational Research. Retrieved 2013, from: www.bera.ac.uk/system/files/Methodological%20Paradigms.pdf Haupt, T. & Madikizela, K. (2009). Why do South African Women choose careers in construction. Acta Structilia, 16(2), 46-68. Neuman, W. (2003). Social Research Methods. Boston: Pearson Education. OECD. (2012). Closing the Gender Gap . Retrieved October 7 , 2014, from OECD South Africa : http://www.oecd.org/southafrica/Closing%20the%20Gender%20Gap%20- %20South%20Africa%20EN.pdf Ozumba, A. & Ozumba, C. (2012). Women in Construction in South Africa: Investigating the Feminine Footprint of the South African Construction Industry. Journal for the Advancement of Performance Information and Value, 4(1), 28-43. Shinebourne, P. (2011). Interpretative phenomenological analysis. In N. Frost (Ed.), Qualitative Research Methods in Psychology (pp. 44-65). Berkshire: Open University Press. Smith, A. (2008). Neoliberalism, welfare, policy and feminist theories of social justice: feminist theory special issue: Feminist theory and welfare. Feminist Theory, 9(2), 131-144. Terre Blanche, M., Durrheim, K. & Painter, D. (2006). Research in Practice: Applied Methods for the Social Sciences (2nd ed.). (M. Terre Blanche, K. Durrheim, & D. Painter, Eds.) Cape Town : UCT Press. Watts, J. (2009). Leaders of men: women managing in construction. Work Employment and Society, 23(3), 512-530.

An empirical analysis of the factors which influence construction workers’ nutrition: A pilot study Chioma Okoro, Innocent Musonda and Justus Agumba Department of Construction Management and Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected] [email protected]

Abstract: Nutrition is known to impact on productivity, health and safety (H&S) performance of workers. However, there is scant literature focusing on the nutrition of construction workers, especially in South Africa. This paper investigates the factors which influence the nutrition of construction workers. A quantitative method for data collection was adopted for the study. Mean Scores (MS) were computed using Excel software to determine the rank and significance of the factors. Nutritional knowledge, economic and physiological factors were indicated as the major influencers on construction workers‘ nutrition. These findings provide evidence which can be used for targeting construction workers‘ nutrition, which will in turn improve H&S performance on construction sites. Identifying the nutrition-influencing factors will allow for the design of explicit and effectual nutrition intervention programs, tailored and streamlined for construction workers specifically.

Keywords: Construction, health and safety, nutrition, workers, South Africa

Introduction Nutrition has been a source of concern to researchers and organizations including the International Labour Organization (ILO), for ages due to its contribution to productivity and H&S performance improvements (Wanjek, 2005; ILO, 2005). National productivity levels can be raised by 20% if workers are adequately nourished (World Health Organization (WHO), 2004) through consumption of foods containing various nutrients including proteins, carbohydrates, vitamins and minerals (Amare et al., 2012). Diversity in the diet is important to meet the requirements for energy and essential nutrients (Rathnayake et al., 2012). Moderation and balance are also essential as over-consumption or under-consumption of certain foods connotes unhealthy eating and can lead to development of chronic diseases such as heart disease, stroke, diabetes and cancer (Irvine et al., 2004; Chan, 2008). For instance, excessive consumption of fatty foods can lead to accumulation of fat in the liver, clogging of blood veins (leading to heart disease) or excessive weight gain. Again, excessive consumption of salty foods increases blood pressure, leading to heart disease. On the other hand, under-consumption of certain foods leads to nutrient deficiencies, increased susceptibility to infections (Chan, 2008), fatigue and dizziness (Wanjek, 2005) and thus leading to accidents and injuries. Therefore, healthy eating assists in maintaining healthy bodies and minds, reduces the rate of susceptibility to infections and diseases and provides energy which construction workers require in order to perform their activities (Quintiliani, Sattelmair and Sorensen, 2007; Chenoweth, 2011). Construction activities are labour intensive, and physically and mentally demanding, requiring moderate to maximum levels of physical strength and stamina, manual dexterity and coordination as well as mental concentration and alertness (Construction Labour Contractors (CLC), 2014). Construction is

89 a high-risk sector, involving a lot of hazardous work which if performed while fatigued or suffering from ill-health can result in death or permanent disability (Bakke, 2012). Consequently, given the invaluable contribution of nutrition in H&S performance as well as productivity improvements, research on the subject is warranted. Improving nutrition requires an understanding of the factors that influence nutritional uptake (European Food Information Council (EUFIC), 2005), especially as perceived by the target population themselves (Lassen et al., 2007; Watkins et al., 2008). However, although there has been some research on the factors that influence the nutrition of workers (Du Plessis, 2012; Tiwary et al., 2012; Okoro et al., 2014), it is surprising that there is paucity of empirical studies, especially in South Africa, focusing on the factors which influence the nutrition of construction workers in particular. Previous studies have either incorporated workers in general (Wanjek, 2005; Marreiros and Ness, 2009), or focused on particular factors, for instance, Puoane et al. (2006) - a South African study, focused on socio-cultural factors; and Watkins et al. (2008), which dwelt on environmental factors and workers in general; or focused on construction apprentices only (Du Plessis, 2012) or presented a review of literature (Du Plessis, 2011; Okoro et al., 2014). The present paper therefore investigates the factors which could possibly influence the nutrition of construction workers, as perceived by them. The objective of the present paper is to establish the significant factors which influence construction workers‘ nutrition, as perceived by the workers themselves. Identifying these factors is critical to allow for explicit and effectual nutrition intervention designs for H&S performance improvements, tailored and streamlined for construction workers in particular. Factors Influencing Nutrition

Nutritional knowledge (NK) Knowledge about nutrition and the associated health benefits influences nutrition (Divakar et al., 2012; Zilberman and Kaplan, 2014). Research has shown that construction workers have poor nutrition and this is partly as a result of low level of nutritional knowledge (Men‘s Health Forum (MHF), 2009; Kolver, 2012). However, it has been argued that an increase in NK does not necessarily eventuate in improved food choices (Tepper et al., 1997 cited by Du Plessis, 2011). This is probably because knowledge about health does not lead to direct action when individuals are unsure of how to apply their knowledge (EUFIC, 2005). According to Grunert et al. (2010), NK is indicated by ability to identify healthiest foods from various sources or knowledge of what a healthy diet means; knowledge of the sources of nutrients; and knowledge of the health implications of eating or failing to eat particular foods. Food preparation and cooking skills have also been indicated to influence food choices and eating behaviours (Chenhall, 2010; EUFIC, 2011).

Economic factors (EF) Research indicated that construction workers‘ nutritional uptake is influenced by their wages/income (Du Plessis, 2012; Tiwary et al., 2012), availability of healthy food alternatives (Du Plessis, 2012) and the cost/price of food (Waterlander et al., 2012; 2013; Bruner and Chad, 2014). In Waterlander et al. (2012; 2013), price discounts on fruits and vegetables were found to stimulate consumption of those foods. Marketing strategies of food vendors and companies (Kushi et al., 2006) have also been indicated to influence food choice.

Physical factors (PC)

Ball et al. (2006) opined that the physical environment influences the choices of food made at a workplace. Research indicated that welfare facilities for washing up before eating, storing and heating up food, and eating areas are limited or non-existent on construction sites and thus workers‘ nutrition is adversely affected (Queensland Government, 2012b). Non- provision of welfare facilities for eating gives rise to food contamination from the dirty physical environment in which construction workers work, leading to ill-health, a view supported by the Food and Agriculture Organization (FAO, n. d.). According to FAO (n. d.), adequacy of food nutrition is considered in both quantitative and qualitative terms. In addition to being adequate in energy, foods in any work environment should be safe and free from contaminants, parasites and toxins which may be injurious to health (FAO, n. d.). Eating locations were also indicated to influence food choice (Stroebele and De Castro, 2004).

Social factors (SF) Research has indicated that the nutrition of construction workers is formed or constrained by circumstances which are essentially social including eating behaviors of peers or colleagues (EUFIC, 2005; Watkins et al., 2008; Ellis, 2013), family support and traditions (EUFIC, 2005) and social class (Grunert et al., 2010), family needs and social values attached to food (love, acceptance, happiness and humanity - ubuntu) (Puoane et al., 2006).

Psychological factors (PS) Psychological factors such as beliefs, attitudes (which usually stem from unfamiliarity of foods or their effects on health), habits, perceptions, motives (for example, to be thin or lose weight) and personality influence food intake (Babicz-Zielinska, 2006). Dindyal and Dindyal (2003) argued that some cultures and traditions may encourage or frown upon consumption of certain foods by individuals who belong to their groups, leading to restrictions such as exclusion of meat and milk from the diet. Also, individuals may adopt particular food habits of the local culture when they move to a new country, probably because they want to show off their social standing and improvement in socio-economic status (Puoane et al., 2006).

Physiological factors (PF) According to EUFIC (2005), and Delaney and McCarthy (2009), hunger, taste, appetite, genetic predispositions and personality traits play important roles in determining food choice and dietary behaviour. Nutritional requirements for health status also influence food choice (Petrovici and Ritson, 2006). According to Pfeifer (2009), it was found that differing norms imposed on men and women by the society as to what type of food is perceived as feminine or masculine, influenced food choice and intake. Women who eat a small feminine meal (for example, salads) earn higher social approval than those who eat a larger portion of a ―man‘s meal‖, which is usually energy-dense, for example, meatball burger (Pfeifer, 2009) and pap. Although a plethora of factors have been indicated to influence nutritional uptake, it is essential to identify the critical factors which relate specifically to construction workers in South Africa, and based on their perceptions, in order to develop effective and successful strategies to improve their nutrition particularly and thus safety performance on construction sites. This idea is supported by Schroer et al. (2014) who aptly asserted that focusing on a lifestyle behavior such as nutrition, at a time, maximizes effectiveness. The next part of this paper evaluates these factors in order to determine their relative importance in construction workers‘ food choice decisions. Research Methods

The present paper reports on a pilot study conducted as part of an on-going research project designed to investigate the factors which influence the nutritional uptake and in turn, H&S performance of construction workers on sites. A survey questionnaire consisting of 5-point likert-scale questions was constructed from an in-depth synthesis of literature and distributed by the researcher by hand. Since this was a pilot study and exploratory in nature, three sites including two building construction sites and one road construction site were chosen because they were nearby and therefore convenient for the researcher (Adler and Clark, 1999 cited by Ojo, 2013). The questionnaires were administered to site workers who were actively engaged in construction activities (as opposed to the managers and supervisors), since they are directly susceptible to poor nutrition and safety performance on construction sites. Participants who were present and willing to take part in the study were also conveniently chosen based on their relative ease of access (Goyal and Goyal, 2012). A total of 20 questionnaires were administered; 19 were returned and were included in the analyses. The likert-scale questions are discussed based on Mean Score (MS) comparison to determine the ranking or relative importance of the factors as assessed by the respondents. The MS is the average score obtained from all weighted responses on the 5-point scale. Weights were assigned to each response ranging from 1 to 5 for ―strongly disagree‖ to ―strongly agree‖. In addition to the points 1 to 5, the mean scores are also discussed based on interval ranges or values between the points. Likert scale data can be analyzed with an interval measurement scale as this reflects meaningful relative distances between points (Trochim, 2006; Boone and Boone, 2012). The interval between points equates to the ratio of the difference between the upper and lower limits, to the number of points, i.e., 4/5 = 0.80. Therefore, each interval on a 5-point scale has a value of approximately 0.80. Table 1 shows the distribution of the computed MS interval values used in the present study.

Table 1: Mean Score ranges

MS range Meaning 1.00 - 1.80 Strongly disagree 1.81 - 2.60 Disagree 2.61 - 3.40 Neutral 3.41 - 4.20 Agree 4.21 - 5.00 Strongly agree

Findings and Discussion 95% of the respondents were male and 5% were female. 26% were below 24 years of age, 58% were between the ages of 25 and 34, 11% were between 35 and 44 years of age and 5% were above 44 years. 11% had primary school education, 37% attended high school, 47% attended training colleges, and 5% had a diploma certificate. 21% were brick-layers, 47% were electricians, 5% were steel-fixers, 21% were plumbers and 5% were pavers.

Factors influencing construction workers’ nutrition Respondents were asked to express their level of agreement to statements about the factors which influenced their food choices. Table 2 indicates the respondents‘ agreement relative to the extent to which nutritional knowledge influences their food choice and intake in terms of a mean score ranging between 1.00 and 5.00. The MSs were in the band of 3.41 - 4.20 suggesting that respondents‘ can be deemed to agree that knowledge about what a healthy

92 diet means, knowledge about sources of nutrients, and about the health effects of particular foods as well as cooking skills influenced their nutrition. This evinces that nutritional knowledge attributes influenced construction workers‘ nutrition. This result is in line with the findings from the study by the Men‘s Health Forum (2009) in the United Kingdom in which it was reported that a lack of knowledge about particular foods led to construction workers consuming high-fat foods, believing that they will be enabled to perform their physically-demanding tasks by consuming such foods.

Table 2: Nutritional knowledge (NK) indicators influencing nutrition

Nutritional knowledge indicators MS Rank Knowledge about what a healthy diet is 3.68 1 Knowledge about sources of nutrients 3.63 2 Knowledge about health effects of particular foods 3.58 3 Cooking skills 3.53 4

Table 3 shows the respondents‘ concurrence with regard to the extent to which economic factors influence their nutrition in terms of a mean score ranging between 1.00 and 5.00. It is notable that all the respondents can be deemed to agree that wages, cost, availability of food and food discounts influence their nutrition as the mean scores for these factors are in the band of 3.41 - 4.20, while they tended to be neutral about nutrition being influenced by brand name and marketing strategies with the mean scores in the range of 2.61 - 3.40. This suggests that wages and price significantly influenced nutrition. It is in line with findings of Tiwary et al. (2012), who found that most building and construction workers in Indian were poorly paid and therefore could not afford proper nutrition, and as a result, regular consumption of staple foods such as rice and potatoes, inadequate in quantity and quality, was a norm. That cost and availability of healthy foods influenced nutritional uptake corroborated with the findings of Du Plessis (2012) who found that construction apprentices in Australian were mostly concerned with the affordability of the foods accessible to them. The finding that food discounts and subsidies influence food decisions aligns with findings from studies by Waterlander et al. (2012 and 2013) who found that there was an increased consumption of fruits and vegetables when they were sold at cheaper prices.

Table 3: Economic factors influencing nutrition

Economic factors MS Rank Wages 4.05 1 Cost/price 4.05 1 Availability 3.84 3 Discounts/subsidies 3.63 4 Brand name 2.95 5 Marketing strategies/advertisements 2.63 6

Table 4 indicates the respondents‘ concurrence with regard to the extent to which physical factors influence their nutrition in terms of a mean score ranging between 1.00 and 5.00. On- site washing-up and catering facilities with MSs in the range of 3.41 - 4.20 suggests that respondents concurred that they were nutrition-influencers. The location where food is sold can be deemed to be neutral on construction workers‘ nutrition, with MS in the range of 3.41- 4.20. This is in line with findings from Wanjek (2005) which indicated that quality of food in terms of hygiene is an important aspect of nutrition.

Table 4: Physical factors influencing nutrition

Physical factors MS Rank On-site washing up facilities 3.63 1 On-site catering facilities 3.42 2 Location 3.21 3

Table 5 evinces the respondents‘ concurrence with regard to the extent to which social factors influence their nutrition in terms of a mean score ranging between 1.00 and 5.00. It is notable that family traditions and norms have an influence on nutrition, as assessed by the respondents, as the mean score for the statement of this variable lies between 3.41 and 4.20. This finding is consistent with findings from Puoane et al. (2006), a South African study, which indicated that nutritional uptake (amongst the black population) was influenced by the social meaning attached to food such as love and humanity fostered within and outside family settings. Respondents tended to be neutral pertaining to colleagues‘ influence, media/social networking and social class as nutrition-influencers, with MSs between 2.61 and 3.40.

Table 5: Social factors influencing nutrition

Social factors MS Rank Family norms and traditions 3.68 1 Colleagues‘ influence 2.95 2 Media/social networks 2.90 3 Social class 2.74 4

Table 6 indicates the respondents‘ agreement with regard to the extent to which psychological factors influence their nutrition in terms of a mean score ranging between 1.00 and 5.00. It evinces that respondents concur that perceptions of benefits of healthy eating to productivity and safety performance improvements influence nutritional behaviour, as their recorded MSs are between 3.41 and 4.20. Furthermore, the MSs for body image, mood, belief about adequacy of diet, habits, beliefs about eating foods prescribed by culture and attitude towards nutrition promotions can be considered to be neutral as they are in the band of 2.61 - 3.40. It was established that all beliefs related to meat abstinence have MSs in the range of 1.81 - 2.60. This suggests that with regard to beliefs that avoiding meat saves money or that killing animals for food is not good or avoiding meat helps to keep one healthier being nutrition-influencers, respondents tended to disagree.

Table 6: Psychological factors influencing nutrition

Psychological factors MS Rank Perception of benefit to productivity 4.05 1 improvements Perception of benefit to safety performance 3.79 2 Body image 3.26 3 Mood 2.84 4 Belief about adequacy of diet 2.84 4 Habits 2.84 4 Beliefs about food from culture 2.68 7 Cynical attitude towards nutrition promotions 2.63 8 Belief that avoiding meat saves money 2.32 9 Belief that killing animals for food is not good 2.21 10 Belief that avoiding meat will keep me healthier 2.11 11

These findings are inconsistent with findings from Babicz-Zielinska (2006) in which it was indicated that psychological factors influence nutrition. Possible explanations for this could be that construction workers are not vegetarians, or are not concerned about body image. Table 7 shows the respondents‘ concurrence with regard to the extent to which physiological factors influence their nutrition in terms of a mean score ranging between 1.00 and 5.00. It is notable that there is concurrence amongst the respondents regarding the physiological factors as nutrition-influencers.

Table 7: Physiological factors influencing nutrition

Physiological factors MS Rank Hunger 4.05 1 Appetite 3.90 2 Quality/appearance 3.84 3 Satiety 3.58 4 Taste 3.42 5 Nutritional requirements for current health status 3.11 6 Gender 3.05 7

MSs between 3.41 and 4.20 suggest that the respondents‘ concurrence can be deemed to be ―agree‖ with regard to hunger, taste, quality/appearance of food, the level of satisfaction obtained from the food and the taste of the food as nutrition-influencers, while the respondents‘ concurrence can be deemed to be neutral that nutritional requirements for existing health status as well as gender influence their food choices and intake, with MSs in the band of 2.61 - 3.40. That taste and quality of food influenced decisions made about food is consistent with findings from Watkins et al. (2008), in which it was revealed that majority of employees perceived that the quality and taste of food influenced their choice of food and this resulted in over-consumption or under-consumption of certain foods.

Conclusions and Further Research The study set out to establish the significant factors which influence the nutrition of construction workers in Johannesburg, Gauteng. The results of this study evinced that nutritional knowledge, wages, cost/price of food, availability of healthy food alternatives, food discounts/subsidies, hunger, taste and quality of food were major influencers on construction workers‘ nutrition. Other factors included availability of washing up facilities, family norms, and notions about food (benefits to productivity and safety performance). With these findings, intervention programmes can be designed to help improve construction workers‘ nutrition and thus H&S performance. It is therefore suggested that nutrition intervention programmes should focus on the identified significant factors. Since the major factors include aspects that may be beyond the workers‘ control, for instance wages and cost of food, supplementary feeding programmes would be invaluable in ensuring that workers eat healthily. Employers could collaborate with organizations to provide healthy foods on site, maybe twice a week to sustain workers‘ health. In addition, canteens and vending machines should contain healthy food alternatives to ensure availability and accessibility to healthy food options. Moreover, the healthier options could be discounted to encourage purchase of such foods. Although the study made use of only 19 participants, and may not be enough for generalisation, it provides useful evidence to develop measures that will go a long way in

95 improving the nutritional uptake of construction workers irrespective of the challenges they face regarding the wages they are paid. In turn, their physical and mental health would be sustained and safety performance records will invariably improve. Improving the H&S status quo will benefit construction workers and their families, construction employers and stakeholders as well as the economy as a whole since avoidable costs will be reduced, productivity will be increased and Gross Domestic Product will ultimately increase. Acknowledgement This pilot study is part of an on-going Master‘s research project being funded by the University of Johannesburg through the Global Excellence Scholarship. This project would have been impossible without the support of the University.

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Zilberman, D. and Kaplan, S. (2014). What the adoption literature can teach us about social media and networking effects on food choices. Selected paper for presentation at the 2014 AAEA/EAAE/CAES Joint Symposium: Social Networks, Social Media and the Economics of Food, Montreal, Canada, 29-30 May.

An exploratory study on the reduction of the cost of non- conformance to projects requirements in the Swaziland construction XN Mashwama and CO Aigbavboa Department of Construction Management & Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: The construction industry is a key sector in the development and economic growth of Swaziland. However, the industry has not escaped the challenges facing other countries worldwide in terms of delivering construction projects of good quality as expected by the clients and other stakeholders. This paper assesses the cost of non-conformance to quality in Swaziland construction projects based on the perceptions Swaziland construction professionals. The purpose of the study was to determine critical construction project success criteria that can be used to reduce the cost of non-conformance to quality requirements in construction projects in Swaziland. The data used in this paper were derived from both primary and secondary sources. The secondary data was collected via a detailed review of related literature. The primary data was collected through a well-structured questionnaire which was distributed to construction stakeholders; 70 questionnaires were distributed and 50 were completed and returned, which was used for the study analysis- representing 71.0% response rate. Data obtained from the questionnaire survey was analysed using descriptive statistics procedures. Key findings from the study revealed that the cost of non-conformance to quality requirements has an impact on construction projects; as funds have to be allocated again to rework the poor quality job done by contractors on site. It was also found that there are various success criteria that can be used to reduce the cost of non-conformance on Swaziland construction projects. Hence, it is therefore recommended that the implementation of quality management systems, defining quality objective at the beginning of the project and encouraging team work in the project will assist in the prevention of poor quality works on construction projects. Therefore, this study gives a rich insight into the critical success factors for the reduction of cost of non-conformance to quality in Swaziland construction projects.

Keywords: Construction, Cost of non-conformance, Quality, Success factors, Swaziland

Introduction

The construction industry is a key sector in the development and economic growth of Swaziland. However, the construction industry in Swaziland has not escaped the challenges facing other countries worldwide regarding the delivering of construction projects of good quality as stipulated in the contracts and as expected by construction stakeholders. Quality is defined as in ISO 9000 as the degree to which a set of inherent characteristics fulfils requirement. Waje and Patil (n.d) informed that the cost of non-conformance to quality is unbearable and hence defined the cost of non-conformance to quality as the cost associated with the prevention, discovery, and resolving of construction project defects. These costs can

100 arise whether it is in the design stage, construction stage or handing over stage. Cost of non- conformance to quality is the total cost incurred during the entire life cycle of construction project in preventing non-conformance to owner requirements (Dale & Plunkett, 1999). Cost of non-conformance to quality in building projects according to construction industry development board 2006 report, it amount to 10-18% of the total cost of the project with profit of less than 1-5%. Whilst in some other projects, the cost of non-conformance to quality is 11%, which can be reduced by preventative expenditure of 2.5%. Also, it has been found that about 50% of poor quality originates at the design stage, 40% relates to site work including site management, poor information and 10% are due to materials problems. The effects of poor quality work is seen through cost of reworks which is demolition of work done that does not confirm to specification or reconstruction (Taneja, 2004).

Cost of non-conformance to quality in construction project is prevalent, due to failure in preventing defects and wastages during construction work. Brisco et al. (2010) states that there are four categories of costs; prevention cost (cost incurred to keep failure and appraisal costs to a minimum); appraisal cost (cost incurred to determine the degree of conformance to quality requirement); internal failure cost (cost associated with defects found before the customer receives the product or service); and external failure cost (costs associated with defects found after the customer/client receives the product or service). However, the cost of quality remains hidden and eats up to 40% revenues of construction companies; hence, it is like running a company which was once or trying to be successful to failure (Mahmood et al., 2012). In order to prevent the Swaziland construction companies from failure to comply with quality requirement, critical success factor had to be identified and addressed effectively to reduce the cost of poor quality (COPQ). Cost of poor quality is a major concern in private and public projects (Rumane, 2011). Hence, the present paper assesses the cost of poor quality (COPQ) in construction projects based on the perception of construction professionals in Swaziland.

Literature Review

The need for quality in the construction industry

Errors in construction sites occur frequently and can be costly for the contractors and for the professional team also. Moreover, Waje and Patil (n.d) informs that 6-15% of construction cost is found to be wasted due to rework and 5% of the construction cost is wasted during maintenance of the building arising from poor quality construction jobs. Waje and Patil (n.d) further informs that the nature of these errors are quit diverse, since 20-40% of site defects have been caused by error during the construction phase; which are attributed to human factors (unskilled workers or insufficient supervision of construction work). Also, the same study found that 12% of the construction defects are based on material and system failures which impact on the overall construction industry performance regardless of the geographical location. In summary, a thoroughly inspection of the construction site needs to be improved drastically as the above statistics shows that the main cause of errors come from human involvement in the construction process and changing environment conditions resulting in discrepancies in material behaviour which are uncontrollable. Hence it is critical to improve the inspection and assessment of the quality of construction projects.

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Causes of poor quality in construction projects Quality has different meaning to different people, in terms of construction is very hard to define, but for this paper it can be defined as conformance with requirement or meeting/fulfilling client needs as per defined scope of works within budget, cost and specified schedule (Jha, 2006). In the Swaziland construction projects, poor quality work is prevalent, especially in public projects, the client is not always satisfactory with the quality of constructed buildings. The primary reasons for poor quality in Swaziland construction are mainly due to poor management as per findings below. Many authors confirm that Poor management factors causing poor quality include insufficient supervision on site, labour productivity and poor workmanship (Anderson, 1992; Kasun & Janaka, 2006; Jha & Chockalingam, 2009). Another contributing factor is the orthodox tendering system of choosing the lowest tenderer as per findings below. Hence, most emerging contractors in the Swaziland construction deliberately under-price, which cuts into the contractors‘ profits, hence, during construction, they tend to cut corners in order to make profit. Also, the lack of experience and competency of labourers contribute to poor workmanship as per literature (Kazaz & Birgonul, 2005; Kasun & Janaka, 2006). Many authors attest that Proper construction management is very crucial for every construction project. Also contributing factors such as limited time and cost in execution of construction projects are a major cause of poor quality work. Lack of concern for the environment, late information, and poor management of the design activities, inadequate or poor planning and low skills level among the workers (Ali & Wen, 2011) are other contributing factors.

The Kingdom of Swaziland Construction Industry

The construction industry (CI) in many countries is a key component of economic growth. For the developing countries the construction industry plays even a greater role in development and poverty alleviation by providing access to basic services and transport facilities (Odediran et al., 2012). The construction companies operating in Swaziland range from small local contractors to major companies with the capability to carry out highly specialised projects. The large contractors employ a minimum of 20,000 people (skilled and unskilled workers). The range of work undertaken in the construction industry covers small buildings, multi-level projects, roads, dams and infrastructure. Therefore, the CI is a key source of work and income in the Kingdom of Swaziland. The overall contribution to the Gross Domestic Product (GDP) by the Swaziland construction industry over the past decade average 6% since 2002, but it has since dropped down to 2.8% in 2013 (Swaziland Business year book, 2002) due to problems hindering the performance of the construction sector.

Government is the major client in the Swaziland construction industry. The ministry of Public Works and Transport is the Government‘s implementing agency on behalf of all ministries with regard to all construction capital projects (Mvubu &Thwala, 2009). The Swaziland Government through the ministry of Public Works and Transport also has a responsibility to educate contractors and subcontractors about government‘s expectations of the quality of work; the process of tendering and the information required (Mvubu &Thwala, 2009). The Government of the kingdom of Swaziland, through its 25- year National Development Strategy has identified the construction sector as a priority area to provide the impetus on improving the social and economic development of the country. However, the industry has not lived up to this expectation.

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Research Methodology

The data used in this paper were derived from both primary and secondary sources. The primary data was obtained through the survey method, while the secondary data was derived from the review of literature and archival records. The primary data was obtained through the use of a structured questionnaire survey. This was distributed to a total of 70 construction stakeholders that included; client (government), subcontractors, contractors, consultants‘ representative‘s quantity surveyors, civil engineers, architects, etc. who are currently involved in construction of public projects in Swaziland. Out of the 70 questionnaires sent out, 50 were received back representing 71.0% response rate. This was considered adequate for the analysis based on the affirmation of Mcneill and Chapman (2005) since the result of a survey could be considered as biased and of little value if the return rate was lower than 30.0% to 40.0%. The data were presented and analysed using frequency distributions and percentages of all the respondents. The research was conducted between the months of June to August, 2013.

Analysis In this study, the analysis employed a simple descriptive statistics methodology. Also, a five point Likert scale was used because it allows a range of responses to be generated including neutral answers and does not force a decision as in the case of ―yes‖ or ―no‖ type of questions. The question sought to determine critical construction project success criteria that can be used to reduce the cost of non-conformance to quality (COPQ) in construction projects, with regard to the information generated from the extant review of literature. The adopted scale allowed individuals to express their opinion on how much they strongly agreed or strongly disagreed with a particular statement as shown below.

Measurement scale: 1 = Strongly disagree 2 = Disagree 3 = Neutral 4 = Agree 5 = Strongly agree

The calculation of scores was done to establish the success criteria that can be used to reduce the cost of quality in the construction industry in Swaziland. The respondents scored each factors based on the measurement scales provided. The score made it possible to compare how much level the respondents‘ agree with the factors or statement on the reduction of COPQ. The ﬁve-point scale was transformed to a Mean Item Score (MIS) for each of the statements. A weight was assigned to each response. The indices were then used to determine the rank of each item. These rankings made it possible to cross compare the relative importance of the statements as perceived by the respondents. The Mean Item Score (MIS) is ranked in descending order (from the highest to the lowest).The Mean Item Score (MIS) was derived from the following formula (Lim and Alum, 1995). MIS = 1n1 + 2n2 +3n3+ 4n4+ 5n5 ∑N Where; n1 = number of respondents for strongly disagree n2 = number of respondents for disagree n3 = number of respondents for neutral n4 = number of respondents for agree n5 = number of respondents for strongly agree

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N = Total number of respondents

Findings and Discussion

Findings from the 50 respondents revealed that 41% were males while 59% were female. Further findings revealed that 50% of the respondents were quantity surveyors, 20% were civil/structural engineers, 18.0% were architects, 10% were construction managers and only 2% were builders (contractors). The findings revealed that 96% of the respondents have more than 10 years working experience in the construction industry. Also, it was found that 71% of the respondents were involved in building construction, 24% were involved in civil works and only 5% were involved in other building activities. The statistical mode for value of projects undertaken in the past 5 years revealed that more than 71% of the respondents have executed more than five million Lilangeni (SZL), an equivalent of $479,177.90. Hence the responds opinion will genuinely add to the value of the study objectives which can be summarised as determining the critical success factors that can reduce the cost of poor quality in construction projects.

Causes of poor quality in construction projects in Swaziland Based on the ranking of the weighted average of the mean item score (MIS) for the listed causes of poor quality, it was found that the most dominant causes of poor quality in construction projects in Swaziland are: ineffective monitoring and feedback by project team members (MIS=3.93), reluctance in timely decision by top management (MIS=3.88); poor human resource management and labour strike (MIS=3.86); and government‘s way of procuring-choosing the lowest bidder (MIS=3.76). Others include: reluctance in timely decision by top management and size and value of the project being large as shown in Table 1. Table 1: Factors causing poor quality Factors causing the cost of non-conformance to quality MIS Rank Ineffective monitoring and feedback by Project Members 3.93 1 A lack of planning and coordination 3.93 1 Reluctance in timely decision by top management 3.88 2 Poor human resource management and labour strike 3.85 3 Government‘s way of procuring-choosing the lowest bidder 3.76 4 Reluctance in timely decision by top management 3.29 5 Size and value of the project being large 3.28 6

Critical success factors for the reduction of the cost of non-conformance to quality Findings relating to this aspect of the study were sub-divided into five construction stages, which include: planning, organising, Executing and Monitoring stages respectively. From the questionnaire survey, it was found under the planning stage factors that defining quality objectives (MIS=4.39); effective site leadership (MIS=4.20); and team development and deploying skilled work force (MIS=4.14) are the criteria needed for the reduction of COPQ during the planning stage as shown on Table 2. Whilst, it was also found that cash flow planning and defining measurement and testing procedures are not critical in the successful reduction of the COPQ. Furthermore, findings relating to the construction organising stage success factors revealed that defining quality control mechanism (MIS=4.12); team development and deploying skilled work force (MIS=4.10); and the provision of effective project management process (MIS=4.02) are the critical criteria that will reduce the COPQ of construction projects in Swaziland.

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Table 2: Success factors for the reduction of the cost of non-conformance to quality (planning stage) Planning stage factors MIS Rank Defining quality objectives (standards and specifications) 4.39 1 Providing effective leadership 4.20 2 Team development and deploying skilled work force 4.13 3 Cash flow planning 3.85 4 Defining measurement and testing procedures 3.34 5

Others include: use of integrated procurement systems and training, development and quality awareness of HR respectively as shown on Table 3.

Table 3: Success factors for the reduction of the cost of non-conformance to quality (Organising stage) Organising stage factors MIS Rank Defining quality control mechanism 4.12 1 Team development and deploying skilled work force 4.10 2 Providing effective project management process 4.02 3 Use of integrated procurement systems 3.71 7 Training, development and quality awareness of HR 3.68 8

Similarly, the executing stage success factors revealed that team work (MIS=4.32) followed by the provision of effective leadership (MIS=4.20) and the optimum use of resources (MIS=4.05) were ranked highest. The least ranked factors at the executing stage include: exercising transparency in procurement process and transactions and protecting stakeholder rights as shown in Table 4 respectively, as the score indicated that these alleged classified success factors could not influence the reduction of COPQ in Swaziland construction projects.

Table 4: Success factors for the reduction of the cost of non-conformance to quality (Executing stage) Executing stage factors MIS Rank Team work 4.32 1 Providing effective leadership 4.20 2 Optimum use of resources 4.05 3 Transparency in procurement process and transactions 3.63 8 Protecting stakeholder rights 3.51 9

Lastly, the findings on the monitoring stage success factors revealed that fulfilling health and safety requirement (MIS=4.10); measuring performance of activities on critical path (MIS=3.93); Measuring of executed works (MIS=3.85) and measurement of productivity of resources measure variation in planned and actual resource utilization, were ranked the least respectively, respondent felt that they were not influential to the reduction of COPQ.

Table 5: Success factors for the reduction of the cost of non-conformance to quality (Monitoring stage) Monitoring stage success factors MIS Rank Fulfilling health and safety requirements 4.10 1 Measuring performance of activities on critical path 3.93 2 Measurement of executed works 3.85 3 Measurement of productivity of resources 3.68 6 Measure Variation in planned and actual resource utilization 3.61 7

Respondent also ranked the last category of controlling stage, where by improving the productivity of resources and initial accountability (MIS=4.05); Improving the quality of input materials and resources (MIS=3.98); Reducing the gap in planned and actual schedule (MIS=3.85); and reducing the gap in planned and actual scope and reducing the gap in

105 planned and actual resource utilization (MIS=3.73 & 3.49) were both ranked least as shown in Table 5.2.5.

Effects of cost of non-conformance to quality (COPQ) Table 6 revealed that cost overruns was the highest factor with an (MIS=4.26); Late completion and penalty to contractor (MIS=4.24); Delay trades sequence (MIS=4.20) and disputes (MIS= 4.15). However, project programme (MIS=3.68), Training (MIS=3.63) and production rate slows down (MIS=3.51), were ranked last respectively.

Table 6: Effects of the COPQ

Effects of COPQ MIS Rank Cost overruns 4.26 1 Late completion 4.24 2 Penalty to contactor 4.24 2 Delay trades sequence 4.20 3 Disputes 4.15 4 Project programme 3.68 11 Training 3.63 12 Production rate slows down 3.51 13

Conclusion and Recommendations

The findings presented a lot of factors affecting poor quality and what the respondent thought where the main causes boiled down to Management related actions. The study suggests that if Management played their vital roles from the beginning (inception) of a project then the cost of non-conformance to quality would be reduced. The study further reveals that during the controlling stages of the project respondent showed that the construction professionals do not agree that measurements and testing procedure could reduce the cost of poor quality (COPQ), but rather defining the quality objectives during the planning stages is what is thought could help reduce the COPQ .The findings furthermore revealed that the effect that poor quality has on construction project is a negative impact on the economy and construction projects. Construction professional agreed that rework has a ripple effect on project outcomes as opposed to doing it right the 1st time. The result also revealed that Cost overruns also affect the projects negatively as the client would now have to pay extra for materials, labour, to fix what could have been done right in the first place. The study suggests that the causes of COPQ should be used as guidance to achieving the success factors needed for the reduction of COPQ. The results of this study have further prove that the cost of non-conformance to quality (COPQ) has a negative impact on the project and construction companies as productivity, additional work and repair, loss of the clients‘ confidence in contractor which may eventually put the contractors out of business are some of the main ripple effects of cost of non-conformance to quality. Success factors are easy to achieve if the project objectives are laid down from the beginning the project participants will therefore know what is expected of them.

It is recommended that the implementation of quality management systems in construction projects such as (TQM) Total Quality Management system in which they will find roots to the cause of problems by planning effectively and implementing an organisational structure. TQM will involve the client from the beginning till the end of the project reducing change orders. Training of the project team participants is also an important factor, as the team

106 members will know what is expected of them in terms of executing and delivering the final product without compromising on quality. Lastly involving all the team participants and promoting the spirit of teamwork on projects can also help reduce the cost of non- conformance to quality as the communication amongst team participants will be the same as they will be communicating the same goal

References Ali, R. and Wen, S. (2011). Building Defects: Possible Solution for Poor Construction Workmanship. Journal of Building Performance, 2(1): 63-69. Andrew, R.A. (1999). The role of human error in construction defects. Structural Survey, 17(2): 231-236. CIDB (2008). Construction Quality in South Africa: A client‘s perspective: 4-32 Dai, J., Paul, M.G. and William, F.M. (2009). Construction craft workers‘ perceptions of the factors affecting their productivity. Journal of Construction Engineering and Management, 135(3): 217-226. Dale, B.G. (2000). Managing quality, 4th ed, Germany, Blackwell Publishing Dale, B.G (2003). Managing Quality, 4th ed, United Kingdom, Blackwell Publishing Jha, K.N and Iyer, K.C. (2006). Critical Factors Affecting Quality. Total Quality Management, 7 (3):70-80 Jha, K.N. and Chockalingam, C.T. (2009). Prediction of quality performance using artificial neural networks. Journal of Advances in Management Research, 6(1): 70-86. Kasun, N.H. and Janaka, Y.R. (2006). Carpentry workers issues and efficiencies related to construction productivity in commercial construction projects in Alberta. Canadian Journal of Civil Engineering, 33:1075-1089. Love, P.E.D., Wyatt, A.D. and Mohamed, S. (1997b) Understanding Rework in Construction. International Conference on Construction Process Re-engineering, Gold Coast. July, 269-278. Mahmood, S. Shahrukh, B. and Sajid, A. (2012). Identification of Critical Success Factors for Reduction of Cost of Poor Quality from the Construction Projects. Advancing in Civil, Architectural, and Construction Engineering & Management conference proceeding, 4-6 July 2012, Bangkok, Thailand. Mcneil, P. & Chapman, S. (2005). 3rd Edition. Research methods. Oxford: Routledge. Odediran, S.J., Adeyinka, B.F., Opantunji, O.A. & Morakinyo, K.O. (2012). Business structure of indigenous firms in the Nigerian construction industry. International Journal of Business Research & Management, 3(5): 255-264. Pinto, J.K. and Slevin, D.P. (n.d) Critical Factors in Successful Project IIII, IEEE Transactions on Engineering Management, 34: 168-189. Rumane, A.R. (2011).Quality Management in Construction Projects, Boca Raton, CRC Press Swaziland business year book 2002 - construction. Available from: http://www.swazibusiness.com/sbyb-new/constr.html. (Accessed 10 June 2013) The Swaziland National construction Industry Bill ( 1st draft) October. (2010). the Ministry of Public Works and Transport Taneja, Y.R. (2004). Quality Assurance for Building and Construction Industry. Journal of Construction Management, 9(3): 140-149. Thwala, W.D. & Mvubu, M. (2009). Problems facing small and medium size in Swaziland. Journal of Service Science & Management, 2: 353-361. Waje V.V. & Patil, V. Cost of poor Quality in Construction, Department of Civil Engineering, MIT College, Paud Road Camp. Pune/ Pune University in India, Journal of Mechanical and Civil Engineering

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Quality Management practices in South African subsidised public housing schemes RM O‘Maker, CO Aigbavboa and WD Thwala Department of Construction Management and Quantity Surveying, University of Johannesburg, South Africa [email protected]

Abstract: The quality of housing delivered in subsidised public housing schemes is a major problem in South Africa, and has been widely documented. The characteristics of contracting Small and Medium-sized Enterprises (SMEs), who are regularly awarded tenders in this sector, are shown to hinder quality performance. This paper investigates the quality management (QM) practices amongst SME contractors in the Gauteng low income residential sector. The primary data were collected through a structured questionnaire, distributed among active general building contractors in the CIDB register of contractors in Gauteng. Findings derived reveal that QM practices amongst SME contractors frequently included the general elements of QM, with the exception of quality audit procedures. Contractors also consulted with building and project specific standards and specifications in favour of South African National Standards (SANS), National Building Regulations (NBR) and the National Home Builders Registration Council (NHBRC) home building manual. Lastly, inspection was favoured over other statistical Quality Control (QC) tools and formal QMS‘s such as ISO 9001.The study emphasised the need for regulatory bodies to enforce compliance to SANS, NBR and NHBRC requirements among SMEs. Furthermore, despite the majority of SMEs reportedly possessing the general elements of QM internally; reactive based QM practices are more frequently adopted during project execution – a situation not conducive to continuous quality improvement.

Keywords: Construction Industry, Quality Management, Subsidised Housing, South Africa

Introduction

The post-apartheid era in South Africa has seen many housing policy and legislative framework initiatives being put in place with the task of delivering adequate provision of housing to the poor. Housing delivery in South Africa can be characterized as being one of three different types, that being: public funded, private sector or owner provided (Aigbavboa, 2013). The provision of public housing in Gauteng, like other provinces, is delivered through government financed state subsidy mechanisms. The beneficiaries of the subsidized housing units include citizens who are pre-qualified as disadvantaged demographic groups. Beneficiaries of subsidized housing have to adhere to the terms and conditions that go together with the units and any associated infrastructure that are transferred to them. However, due to various problems that are inherent in subsidized housing, many beneficiaries chose to sell or rent their units in order to move nearer to informal settlements and their places of work (Tissington, 2010). The delivery of low income housing to the poor has been plagued with quality issues, resulting in poor levels of client and end user satisfaction.

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Numerous research reports and industry publications bear testimony to the quality problem evident in this sector, where some focus on both client and end user perspectives. The internal characteristics of SMEs who operate in this sector, as well as external factors both play a role in hampering quality performance. The QM practices among the SMEs are not widely documented, therefore this study aimed to further explore these practices within the Gauteng low income residential sector. The study aimed to establish the current QM practices that are adopted by the SMEs internally and during project execution.

Quality Management Practices among housing contractors

Research into QM Practices in the construction industry is well documented from global perspectives. The body of literature offers insight into how the adoption of QM practices has evolved in the industry, and highlights regions such as Japan that possess a somewhat synergetic culture, where absolute commitment to quality has lead to world class performance in this area (Abdul-Aziz, 2002; Xiao & Proverbs, 2002). The quality delivery in the housing industries however, appears to lag behind that of the industries as a whole. A discussion of the QM practices employed by contractors in the global construction industries, with a particular focus on housing follows.

Japan The quality performance of Japanese construction contractors is arguably unmatched, which has led to general consensus placing Japan as global leaders in this aspect (Abdul-Aziz, 2002; Xiao & Proverbs, 2002). Studies show that almost all Japanese contractors have obtained mandatory IS0 9001 certification (Xiao & Proverbs, 2002), and the Japanese are seen to global leaders in TQM implementation within their local construction industry (Abdul-Aziz, 2002). Xiao and Proverbs (2002) attribute the superior quality performance to an inherent culture of quality that has been embedded in the hearts and minds of the Japanese. The quality focused culture, has facilitated delivery of high quality projects even within foreign operating environments that has been shown to be a factor which greatly determines the success of TQM applications (Abdul-Aziz, 2002). The housing sector has in the past however reflected levels of quality inconsistent with Japan‘s current benchmark status. According to Noguchi and Poterba (1994), historical levels of quality of housing are not on par with that in the United States of America (USA). Reasons for this are primarily attributable to housing policy focus on mass quantity delivery at the expense of quality. Recent focuses have however been targeted at quality, which is undoubtedly reflected by the high levels of ISO 9001 accreditation among contractors in recent years (Xiao & Proverbs, 2002).

Singapore The awareness and use of QM tools, techniques and models such as TQM and ISO 9001 is evident in Singapore (Chin & Poh, 1999). Firms in the property management industry tend to view ISO 9001 certification as a preparatory step toward TQM (Chin & Poh, 1999), contradictory to the views held in other studies (Ahmed et al., 2005; Joubert et al., 2005), where an opposite view is evident. Quality of construction in Singapore, is monitored and assessed by the Construction Industry Development Board (CIDB) that established the Construction Quality Assessment System (CONQUAS) in 1989 (Kam & Tang, 1997; Chin & Poh, 1999; Milne, 2006, KZN Human Settlements, 2010). Kam and Tang (1997) further list Building Quality Assessment Services (BQAS), which is based upon CONQUAS, as an evaluation system for private sector building projects The CONQUAS system aimed to improve quality performance of contractors and direct them toward ISO 9001 certification

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(Kam & Tang, 1997). The CONQUAS system, used in conjunction with a premium scheme for public or housing projects, encouraged high quality scores among contractors in Singapore. The premium scheme offered a financial incentive and tendering preference for contractors who consistently achieved high CONQUAS scores. The scores of contractors steadily rose between 1984 and 1995, indicating an improvement of QM practices among contractors.

Hong Kong A high level of ISO 9001 certified contractors have been identified within the Hong Kong construction industry (Ahmed et al., 2005). Lau and Tang (2009) argue that ISO 9001 is more readily implemented among Hong Kong contractors as opposed to TQM. The findings of Lau and Tang (2009) show that all contractors are aware of QM principles and up to 97% of contractors have achieved ISO 9001 accreditation, of which 38,9% are SMEs. Ahmed et al. (2005) attribute the high level of certification present, to the requirements imposed by the Hong Kong Housing Authority (HKSA) in 1989, whereby all contractors had to be ISO 9001 accredited as a pre-qualification requirement to tendering for public housing projects. The HKHA adapted the CONQUAS system used in Singapore, into the Performance Assessment Scoring System (PASS) and Maintenance Assessment Scoring System (MASS), which evaluates the conformance levels of contractors in delivery of housing (Tam et al., 2000). Moreover, Tam et al. (2000) postulate that primarily large contractors achieve PASS specified quality levels, and that opportunities in the Hong Kong private sector have reduced interest in bidding for public projects.

Lessons learnt through Global experiences Exploration of the global body of literature reveals a number of lessons to be learnt by local contractors. A tender incentive based contractor quality assessment system such as CONQUAS, together with a direct financial incentive such as that advocated in PASS could be developed and tested in the local industry. The use of incentive based systems such as these have been shown to motivate contractors to consistently attain targeted quality levels (Tam et al., 2000). It is also evident that QM practices in low income housing lags behind other construction sub-sectors even in highly regarded quality achieving countries such as Japan. QM based research should therefore further prioritize the low income housing sectors, in order to bridge the knowledge gap between this sector and others.

Quality concerns in South African low income housing

Over the years, the CIDB has shown steady overall improvements in the quality delivered by South African contractors (CIDB, 2012). However, according to client satisfaction levels, the low income residential sector remains the lowest ranking in terms of quality. Defects and subsequent rework are the result of the shoddy work frequently observed in this sector. The causes of poor quality performance have been attributed to a number of factors in the design, procurement and construction phase. Fraudulent tender processes (KZN Human Settlements, 2010), poor workmanship (Aigbavboa & Thwala, 2013; Gibbon, 2010; Zunguzane et al., 2012; Magagula. & Mnisi, 2010; Kota, 2010; Department of Human Settlements, 2010) and the use of emerging contractors (Alink, 2003) are some of the commonly reported factors all of which contribute to poor quality performance.

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Contractors’ methods of managing quality in South Africa The QM methods employed by SME contractors in the low income residential sector can only be deemed insufficient and immature due to the widely reported dissatisfaction with the end product delivered by such contractors. Research relating to the intrinsic QM practices used by contractors operating within this sector is however not widely available, indicating a clear need for further exploration in this area. Moreover, the body of literature in the local arena does highlight areas of QM that are lacking among the contractors, compounded by low managerial and technical capacities. Furthermore, the external parties who are mandated to protect the interests of the end users appear to be incompetent (Mpambane, 2008). Therefore, the literature reveals that SME contractors are not adopting formal QM practices as they do not possess the necessary skills or are lacking top management leadership to drive the process. The lack of QM capacity is understandable due to the inherent characteristics of SME and emerging contractors, who require much growth and development before reaching adequate competences in QM practices that have been demonstrated by contractors abroad.

Research Methodology

A descriptive survey approach was deemed appropriate to gather data for the empirical study, due to time and cost constraints, as well as a widely spread target population. The development of a structured questionnaire was guided by secondary literature based findings, which provided a theoretical framework from which to construct the survey instrument. The target population included contractors, listed on the CIDB register of contractors in Gauteng. Active general building contractors registered in the categories of four (4), five (5) and six (6) were targeted for the study. Subsequently, the sample was drawn using stratified random sampling, after which the survey was administered through the online survey platform Survey Monkey. The survey was administered in three consecutive rounds in an attempt to elicit a maximum response rate. Despite these efforts, the survey only yielded 41 responses, representing a 15.7% response rate. The low response rate is typical of the questionnaire survey method, and similar results have been obtained in numerous other construction industry surveys (Rahman & Chileshe, 2012). Therefore, it is acknowledged that generalisation of the findings derived from this study may be limited.

The raw data were captured and analysed using Statistical Package for Social Sciences (SPSS) in a descriptive statistics manner. The Mean Item Score (MIS) index was calculated for the questionnaire test items where five-point Likert scales were used as measurement criteria. All responses are weighted according to the relative Likert scale response from which ranks could be allocated for each test item; indicating the importance of that particular test item. The MIS index is computed as the ratio between the sums of the actual individual scores in comparison to the sum of the highest possible scores of each test item. Thus, on a five point scale the maximum possible score would be the total number of respondents multiplied by a factor of five. The MIS for each test item was ranked from highest to lowest, and in accordance with the formula presented by Lim and Alum (1995): MIS = 1n1+2n2+3n3+4n4+5n5 ∑N

Where: n1 = Never n2 = Seldom n3 = Sometimes

111 n4 = Often n5 = Always N = Total no. of responses

Findings and Discussion

SME internal QM structures The internal QM practices of SMEs were measured against the generic areas of QM, as described by Kerzner (2006). Findings show that the SME contractors possess a Quality policy (78%) and objectives (84%) stemming from the policy. Quality Assurance (QA) (78%) and QC (72%) procedures also seem to be in place, as well as project specific quality plans (72%). Quality audit procedures however were only reported among 63% of respondents possibly indicating less emphasis is given to this area. Chileshe (2007) emphasizes the need for quality auditing as it is an essential element of TQM. Furthermore, Zeng et al. (2007) list ineffective auditing procedures as being a leading barrier to the continuous improvement element of ISO 9001. Table 1 summarises the findings for this section.

Table 1: The presence of generic QM elements in SMEs Generic QM elements % Response (%) SD Rank Quality Objectives 84.4% 0.48 1 A Quality policy 78.1% 0.50 2 Quality Assurance procedures 78.1% 0.50 2 Project specific quality plans 71.9% 0.61 3 Quality Control procedures 71.9% 0.72 4 Quality Audit procedures 62.5% 0.68 5

Standards and specifications used during low income housing project execution The findings relating to the standards and specifications used by contractors during the construction of low income housing are somewhat concerning. There seems to be a greater focus on building specifications (MIS = 4.48; R = 1), and project specific standards and specifications (MIS = 4.26; R = 2), which on the surface may appear very normal and what can be expected of all contractors. The concern however lies with the less frequently used items, SANS (MIS = 3.90; R = 4), the NBR (MIS = 3.72; R = 5) and the NHBRC home building manual (MIS = 3.63; R = 6) which implements the NBR. Thus, if the project and building specifications are not frequently being based on statutory guidelines such as SANS or the NBR, naturally the likelihood of meeting statutory quality requirements will decrease. Clearly, the use of the NHBRC home building needs to be driven by the regulatory mechanisms such as the NHBRC, among all registered home builders. All contractors who undertake work in the sector need to be registered with the NHBRC. However, the research findings shows only 76% are registered, reflecting a situation that is particularly prevalent in the low income housing sector (CIDB, 2011). Furthermore, the use of non-NHBRC registered contractors is shown to be a contributory factor leading to poor quality (KZN Human Settlements, 2010). A greater focus on the levels of conformance to NBR, through the use of the NHBRC home building manual, as well as SANS needs to be driven by project stakeholders from design phase through to handover, on all housing projects. Overall, a need for more stringent control by regulatory bodies over contractors in this sector is evident. Table 2 portrays a summary of the findings.

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Table 2: Standards and specifications used by SMEs during low income housing project execution Standards and specifications MIS SD Rank Building specifications 4.48 1.20 1 Project specific standards and specifications 4.26 1.21 2 CIDB codes of good practice 4.13 1.36 3 South African National Standards (SANS) 3.90 1.51 4 The National Building Regulations (NBR) 3.72 1.46 5 NHBRC Home Building Manual 3.63 1.43 6

SMEs methods of managing quality during low income housing project execution The findings relating to the various methods employed by contractors to manage quality on low income housing projects yielded interesting results. Site inspection was the highest ranking item (MIS = 4.38; R = 1) and the most commonly used QM method. SME contractors therefore favour inspection, the most basic tool of QC; Inspection is however a reactive QM approach as defects is only identified ‗downstream‘ after already being created. QA Systems and (MIS = 3.84; R = 2) and QCP‘s (MIS = 3.81; R = 3) ranked second and third respectively. The lowest ranking items included statistical QC tools and techniques (MIS = 3.20; R = 8) and formal QM approaches, ISO 9001 (MIS = 2.96; R = 9) and an IQMS (MIS = 2.83; R = 10). The adoption of formal QM approaches such as ISO 9001, is extremely low, a finding supported by a study conducted by Joubert et al. (2005). The situation is a contrast to such as Japan, Singapore and Hong Kong and Australia. Almost all contractors in Japan (Xiao & Proverbs, 2002) and Hong Kong (Ahmed et al., 2005) are ISO 9001 certified, and in Australia (Pheng & Shiua, 2000) and Singapore (Kam & Tang, 2009) certification forms part of pre-qualification criteria for public sector bidding. The USA however reflects a different situation where only 10% of home builders possess ISO 9001 certification (Leonard, 2010). In summary, South African SME and emerging contractors should progress toward international QM trends, where proactive and preventative approaches yield greater results. Table 3 presents the findings as discussed.

Table 3: SMEs methods of managing quality during low income housing project execution QM Methods MIS SD Rank Site inspection 4.38 1.24 1 Quality Assurance Systems 3.84 1.32 2 A Quality Control Plan (QCP) 3.81 1.45 3 The company‘s own non-certified Quality Management System 3.58 1.43 4 Quality circles 3.55 1.48 5 Integrated Quality Assurance and Quality Control interface systems 3.23 1.48 6 Quality improvement teams 3.23 1.50 7 Statistical Quality Control Tools and Techniques 3.20 1.52 8 The ISO 9001 Quality Management System 2.96 1.62 9 An Integrated Quality Management System, which comprises of ISO 9001, ISO 14000 2.83 1.58 10 and/or ISO 18000

Conclusion and Recommendations

Low income subsidised housing schemes in South Africa are known to be plagued by quality problems, brought about by numerous factors, one of which is the use of SME contractors. Industry and media publications bear evidence of the quality problems; however the QM practices adopted by the SME contractors internally and during project execution is not

113 widely documented. The study presented in this paper explored the QM practices adopted by SME contractors in the Gauteng low income residential sector.

The study revealed that contractors generally possess the fundamental QM structures internally, with the exception of quality auditing procedures. Quality audit procedures have been shown to be a vital element of any QM structure, therefore greater focus should be given to this area. Furthermore, SANS, the NBR and the NHBRC Home building manual are less frequently used than building and project specific standards and specifications. A need for more stringent control by regulatory bodies over contractors in this sector is evident. Lastly, SME contractors tend to favour reactive based QM approaches such as inspection over more formal QMS‘s and statistical tools and techniques. The results of the study provide a broader understanding of the QM practices employed by contracting SMEs in Gauteng. Furthermore, the identification of several possible avenues for further research in the field has been realised. The findings are exploratory at this stage; therefore similar studies could be conducted in other provinces, to develop generalized findings for South Africa. Also, a qualitative based study could reveal deeper insights into the concepts explored in this study. The differing perspectives of clients, the design team, or management team could be used to obtain an overall perspective of the QM practices adopted by contractors in the sector.

References Abdul-Aziz, A.R. (2002). The realities of applying total quality management in the construction industry. Structural Survey, 20(2): 88 - 96. Ahmed, S.M., Aoieong, R.T., Tang, S.L. and Zheng, D.X.M. (2005). A comparison of the quality management systems in the construction industries of Hong Kong and the USA. International Journal of Quality and Reliability Management, 22(2): 149 - 161. Alink, H. (2003). Lack of training and poor building skills lead to Cape housing debacle. Housing in Southern Africa, June, 18. Aigbavboa, C.O. (2013). An Integrated Beneficiary Centered Satisfaction Model for publicly funded housing schemes in South Africa. Unpublished PhD thesis. Johannesburg: University of Johannesburg. Chileshe, N. (2007). Quality management concepts, principles, tools and philosophies: A valid methodology for deployment within UK construction-related SMEs. Journal of Engineering, Design and Technology, 5(1): 49 - 67. Chin, L. and Poh, K.L. (1999). Implementing quality in property management: The case of Singapore. Property Management, 17(4): 310 - 320. Construction Industry Development Board. (2011). Construction Quality in South Africa; A client perspective. Pretoria: CIDB. Construction Industry Development Board. (2012). The cidb Construction Industry Indicators Summary Results 2012. Pretoria: CIDB. Gibbon, A. (2010). Serious shortcomings in housing provision despite higher construction figures. The Herald, 20 April 2010, page 5. Joubert, W., Cruywagen, J.H. and Basson, G.A.J. (2005). Will the implementation of a Total Quality Management System benefit South African construction companies? SA Journal of Industrial Engineering, 16(1): 29-40. Kerzner, H. (2006). Project Management: A systems approach to Planning, Scheduling and Controlling. USA: John Wiley & Sons. Kam, C.W. and Tang, S.L. (1997). Development and implementation of quality assurance in public construction works in Singapore and Hong Kong. International Journal of Quality & Reliability Management, 14(9): 909 - 928.

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Determinants of employee job satisfaction and the influence of job dissatisfaction on absenteeism and employee turnover, in the Gauteng Province MP Lesailane, CO Aigbavboa and WD Thwala Department of Construction Management & Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: This study examines the determinants of construction job satisfaction and the influence of dissatisfaction on absenteeism and employee turnover. This is because it has been observed that many construction projects are facing challenges in respect of delivering defective work not completed on time and within budget. And job satisfaction has been identified as one of the factors contributing to these challenges. The study was conducted with reference to existing theoretical literature and the use of a structured questionnaire survey. The questionnaire survey was distributed amongst 50 professional team members in the South African construction industry. From the 50 questionnaires distributed, 40 usable questionnaires were received back, which formed the basis of the analysis for the study. The findings reveal that the most important determinants of construction job satisfaction are: work that allows personal growth; work that allows development; employment security; adequate salary; feedback from boss on task performance; opportunity for promotions and challenging work. Also, the findings suggested that, the aspects associated with job dissatisfaction, in respect of: salary, incentives, professional growth, working relationship as well as enforcement of fair policies, were seen to be the most influential factors of absenteeism and employee turnover in the South African construction industry. Additionally, this study carries a greater value in contributing to the existing literature of job satisfaction based on younger construction professional members, since the majority of the participants in this study were respondents falling under the age group of 21-25 years of age.

Keywords: Absenteeism, Construction, Employee Turnover, Job Satisfaction, Job Dissatisfaction

Introduction

Within each and every sector in South Africa, new companies are established every year and this may lead to an increase in competition within those sectors. Therefore, it is the manager‘s task to ensure that employees within a given organization have the drive to perform their tasks to reach the organizational goals in order to have a competitive advantage over other organizations. According to Deeprose (2003), as a manager, there are many ways that one can use to create an environment where employees are most likely to feel motivated to take actions that contribute to organizational goals. However, senior management in a given organization tends to ignore the issue of motivation of employees in the workplace. Moreover, some find it difficult to address the issue of employee motivation in their organization since it entails studying behaviour of each and every employee and identifying causes of such behaviours.

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Bernold and AbouRizk (2010) emphasized that construction is performed by different employees including labourers, engineers, specialists, which have their own reasons to perform in a particular way with varying degrees of energy and enthusiasm. The ability to have a comprehensive understanding of basic things that keep an employee motivated thereby improving their level of satisfaction, will have a significant positive impact in their performance of job tasks. The study illustrates that when employees are happy and satisfied in their jobs, their level of motivation is high and they perform at peak all the time (Tyilana, 2005).

Moreover, an employee will only be committed to their job if they are happy about their duties and feeling content with rendering job tasks. If employers want to inspire people to give their best and most committed effort in support of the organizational goals, they should relate those goals to something more compelling than simple satisfaction, something that people spend a lifetime pursuing: happiness (Walters, 2010). In their book, Bernold and AbouRizk (2010) argue that personal desires are the fundamental motivation behind all human actions. In that regard, it can be said that individual needs, serve as a form of motivation that will determine a level of satisfaction an employee may have with regard to their job. This is because Lavender (1996) has argued that an individual‘s behaviour is affected by their motivation. Hence, it is important to fulfill those needs as this will help to stimulate an individual‘s interest in their job and it will in turn serve as motivation.

In the research conducted by CIDB (2013), it was observed that many construction projects in South Africa are still facing challenges such as client‘s dissatisfaction with work rendered by contractors in respect of delivering defective work not completed within budget and on time. This may be due to experiences of absenteeism and employee turnover within a given project. As a result; these two factors according to Rojas (2008) tend to reduce productivity as construction industry has traditionally paid little attention to these problems. Rojas (2008) mentioned job satisfaction among other factors as determinants of absenteeism and turnover. In that regard, Schaffer (2001) argued that in order to achieve high productivity, members of management as well as the entire workforce, need to be highly motivated, positive, and totally committed. It is because of the aforementioned challenges that this paper attempts to explore the concept of motivation and job satisfaction. The aim of this paper is to explore the determinants of job satisfaction in the construction industry as well as the influence of factors leading to dissatisfaction on absenteeism and employee turnover. Firstly, this paper starts with an overview of determinants of job satisfaction. Subsequently, a brief discussion of the influence of dissatisfaction on absenteeism and employee turnover will be provided.

Determinants of Job Satisfaction in the Construction Industry

There is an abundance of empirical studies in the area of job satisfaction in the construction industry. For instance, in the research conducted by Thwala et al. (2012), the findings reveal that the construction workers highly ranked physiological needs (such as tea or lunch break), esteem needs (such as self respect, autonomy, achievement and recognition) and safety needs (such as job security, shelter and protection against danger) as motivators which led to high level of their job satisfaction. However, this does not agree with the findings of the research conducted by Bowen and Cattel (2008), where respondents (quantity surveyors) ranked self- esteem needs (such as achievement, promotions, opportunity to do challenging and creative work, opportunity to do varied and non-repetitive work) the least as the determinants of job satisfaction. Surprisingly, the findings of Thwala et al. (2012), the workers ranked social needs (such as a feeling of being a member of the team and assisting co-workers) the least as

118 determinant of job satisfaction. However, in the study of Bowen and Cattel (2008), respondents‘ highly ranked social need (such as feeling a member of a team and participating in decision making) as determinants of job satisfaction.

Nevertheless, the study of job satisfaction of professionals within the construction industry conducted by Yirenkyi-Fianko and Chilese (2012), agreed with the findings of Thwala et al. (2012) , whereby the construction professionals ranked physiological needs (quality of life), safety needs (personal health) and self-actualization needs (personal development) as the most important determinants of job satisfaction, however, self-esteem (work itself including autonomy, recognition and achievement) was being ranked the least, together with social needs (relationship with supervisor and workmates). Again, the study of Bowen and Cattel (2008), contradicts with these findings, whereby the respondents (quantity surveyors) highly ranked social needs (low degree of supervision by supervisor, and feedback from supervisor on performance) as determinants of job satisfaction.

Kanderee and Chaudhry (2012), found that respondents ranked salary, nature of the job, job flexibility, job security, direct manager‘s behaviour and company leadership as factors that strongly influence their job satisfaction, while other factors such as place of work, other benefits, living environment and name of company , were ranked the least. Highly ranked factors such as: nature of job, salary and job flexibility as esteem needs and job security as security needs, seem to be agreeing with the findings of the study of Thwala et al. (2012). But, direct manager‘s behaviour as social needs, contradicts their findings. Moreover, the factors that were ranked the least such as living environment and place of work as physiological needs and other benefits as esteem needs, contradict with the findings of Thwala et al. (2012), whereby physiological needs were ranked as the strongest determinants of job satisfaction.

In the study by Onukwube (2012) the findings show that job satisfaction increases with age and it was concluded that older quantity surveyors experience greater job satisfaction than younger quantity surveyors, since they have job experience, tenure, job security and high income. Also, the findings showed that male quantity surveyors were more satisfied with their job than were their female counterparts (Onukwube, 2012). Similarly, the findings show that difference in educational level also affects job satisfaction, whereby quantity surveyors with postgraduate degrees were significantly more satisfied with their present job, promotion, co-workers, supervision, pay and overall job satisfaction than were quantity surveyors with bachelor‘s degree (Onukwube, 2012).

Job dissatisfaction versus absenteeism and employee turnover

Labour costs for contractors can reach as much as 40% to 60% of total construction costs (Rojas, 2008). In that regard, it is of paramount importance that contractors ensure that each employee has ability to perform their tasks to the contractor‘s expectations, as their performance contributes to productivity. According to Rojas (2008), research has found that absenteeism and employee turnover reduce productivity, while the construction industry is traditionally paying little attention to these problems. In order to address this issue, contractors need to understand why employees are deciding not to come to work and the reason for some of them quitting their jobs.

According to Hadebe (2001), when employees are dissatisfied with their jobs, they try to find ways of reducing exposure. That is, to stay away from the jobs. In addition, Rojas (2008) has

119 informed that researchers agree that companies can divide the factors causing absenteeism and turnover into controllable and uncontrollable. And controllable factors include: site management capabilities, teamwork, excessive rework, and job satisfaction (Rojas, 2008). Similarly, Horner and Talhouni (1984) identified factors such as unsafe working conditions and lack of job security as having effect on absenteeism.

In addition, job satisfaction also emerges as an important factor in turnover (Rojas, 2008). Therefore, it can be deduced that job dissatisfaction have an influence on absenteeism and employee turnover. This is because, Rojas (2008) has identified factors such as organizational factors (pay, company size, responsibilities, tasks, and worker commitment) and worker‘s personal factors (age and tenure) as having effects on absenteeism and employee turnover. Furthermore, the research conducted by Sichani (2010) concluded the following as top 10 causes of absenteeism: long commuting hours / distance to jobsite, transportation issues to site, lack of recognition/incentives; personal safety concerns, child care, illness/school, other family responsibility, already planned time off, bad weather for working, personal appointment, personal injury/illness. Moreover, Cheney (1984) identified the organizational factors (structure, participation, consideration, and feedback) that affected productivity and job satisfaction; while, Tnay et al. (2013) have concluded that pay and supervisory support act as a crucial factor in affecting employee‘s turnover intention. In that regard, it is important that employees get involved in the decision making process, thereby making them to feel like part of the team as this is important in reducing absenteeism and employee turnover within the organization.

Research Methodology

The study was conducted with reference to existing theoretical literature and the use of a structured questionnaire survey. The existing literature was obtained from published and unpublished sources. Since the population surveyed was already identified, the researcher adopted the stratified sampling. In this type of non-random sampling, a researcher first divides the population into subpopulations (strata) on the basis of supplementary information and subsequently, the researcher draws a random sample from each subpopulation (Neuman, 2000). The researcher divided the population into strata according to the types of professions, such as: construction management, construction project management, quantity surveying, structural engineering and architecture. This allows each member within each subpopulation to have equal chance to be selected.

The population comprised of professional team members within both consulting and contracting firms, working in Johannesburg, South Africa. The respondents were randomly selected from each subpopulation to make up a sample of 50. However, due to limitation of time and low response rate, the final sample size used for analysis purpose, based on the acceptable questionnaires completed by the respondents, was 40. A five point Likert scale was used to determine the factors that have influence on the construction job satisfaction as well as the causes of absenteeism and employee turnover. For the purpose of this study, frequency and mean item score (from central tendency) will be used to analyse data.

Findings and Discussion

Out 40 respondents, the findings reveal that more than half (52.5%) of the total number of the respondents were female and the male respondents were about 47.5%. Also, in terms of age group, it was found that that the majority (47.5%) of respondents were between the age of 21

120 and 25 years; 20% were between 26-30 years; 17.5% were between 31-35 years with 17.50%; 2.5% were between 41-45 years; and 5% were above 55 years. There were no respondents that fall under the age group of 46-50 and 51-55 years. Furthermore, the findings reveal that the half (50%) of respondents have diploma, while 45% have bachelor‘s degree, and 5% have master‘s degree. And in terms of years of experience, 7.5 % have less than a year of experience, 62.5% have 1-5 years of experience, 17.5% have 6-10 years of experience, 5% have 11-15 years of experience and l7.5% have more than 16 years of experience. Lastly, of 40 respondents that participated, 70% of them were quantity surveyors, 5% were construction managers, 5% were construction project managers, 2.5% were structural engineers, 10% were construction project managers and 7.5% were architects.

Determinants of construction job satisfaction

Table 1 indicates that the most important determinant of construction job satisfaction in South Africa, in the Johannesburg area is, work that allows personal growth. The other top ten factors which the respondents have ranked in order of their importance are: work that allows development; employment security; adequate salary; feedback from boss on performance; opportunity for promotions; opportunity for challenging work; recognition from boss for doing a good job; good working conditions; having control over own work.

These findings concur with the findings of Thwala et al. (2012) where it was found that construction workers highly ranked motivators such as physiological needs (working environment, food), esteem needs (autonomy, recognition, feedback from boss, challenging work, promotions) and security needs (job security, shelter and protection against danger) as the most important factors that determine their level of job satisfaction. Also these findings agrees with the findings of the study by (Yirenkyi-Franko and Chileshe, 2012) where construction professionals highly ranked self-actualization needs (personal development, career growth) as one of the most important determinants of construction job satisfaction. Also, these findings agree with the findings of the study by (Kanderee and Chaudhry 2012, whereby it was found that respondents ranked salary as one of the most important determinants of job satisfaction.

Table 1: Determinants of construction job satisfaction Determinants of job satisfaction MIS Rank Work that allows personal growth 4.83 1 Work that allows development 4.80 2 Employment security 4.70 3 Adequate salary 4.70 3 Feedback from boss on task performance 4.45 4 Opportunity for promotions 4.35 5 Opportunity for challenging work 4.34 6 Recognition from boss for doing a good job 4.33 7 Good working conditions 4.31 8 Having control over own work 4.30 9

Factors that have an influence on absenteeism

Table 6 reveals that the first seven highly ranked factors having influence on absenteeism, are: too low wage level, lack of incentive; lack of development opportunities, not having

121 enough work to do, lack of enforcement of fair policies for all; lack of monitoring of being absent; lack of motivation to come to work. On the other hand, personal safety concern, poor relation with co-workers, lack of clear target (deadlines), lack of recognition from boss; repetitive work, poor working condition, and unchallenging work, were ranked the least. Regardless of some factors being ranked the least, it must be noted that all these factors recorded mean item score falling under ―somewhat influential‖. Meaning all the factors associated with dissatisfaction have influence on absenteeism.

These findings are supported by, Horner and Talhouni (1984), whereby factors such as unsafe working conditions and lack of job security were identified as having effect on absenteeism. Similarly, in supporting these findings, (Cheney, 1984) identified organizational factors such as participation, consideration, feedback , while (Rojas, 2008) identified pay, company size (which incorporates lack of opportunities for promotions and development), responsibilities, tasks and worker commitment as factors that have influence on absenteeism in the construction industry. As such, it can be deduced that the construction job dissatisfaction have negative influence on absenteeism, because, according to Hadebe (2001), when employees are dissatisfied with their jobs, they try to find ways of reducing their exposure to them, and this will be to stay away from those jobs.

Table 6: Job dissatisfaction-related factors that contribute to absenteeism Job satisfaction-related MIS SD Rank Too low wage level 2.5 1.18 1 Lack of development opportunities 2.48 1.01 2 Lack of incentive 2.48 1.06 2 Not having enough work to do 2.48 1.09 2 Lack of enforcement of fair policies for all 2.45 0.96 3 Lack of monitoring of being absent (feeling invisible) 2.43 1.03 4 Lack of motivation to come to work 2.4 0.98 5 Personal safety concerns 2.38 1.23 6 Poor relation with co-workers 2.33 0.97 7 Lack of clear target (deadlines) 2.31 1.08 8 Lack of recognition from boss 2.25 1.03 9 Repetitive work 2.23 1.03 10 Poor working conditions 2.18 1.10 11 Unchallenging work 2.13 0.97 12

Factors that have influence on employee turnover

Table 9 indicates that the first seven highly ranked influencers of employee turnover associated with dissatisfaction in the construction industry are (in the order of ranking): better benefits package elsewhere ; lack of development opportunities; unchallenging work; poor relationship with boss ; lack of recognition from boss; and lack of enforcement of fair policies for all. On the other hand; inadequate resources, lack of advanced technology, poor relationship with co-workers, safer site elsewhere, and clean job versus dirty job, were ranked the least. Considering the mean item score of these factors, better benefits package elsewhere was ranked as ―very influential‖; safer site elsewhere and clean job versus dirty, were ranked as ―not influential at all‖, while the rest were ranked as ―somewhat influential‖.

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Table 9: Job dissatisfaction-related factors that contribute to employee turnover

Job satisfaction-related MIS SD Rank Better benefits package elsewhere 3.23 1.06 1 Lack of development opportunities 2.87 1.08 2 Poor relationship with boss 2.64 1.01 3 Unchallenging work 2.64 1.18 3 Lack of recognition from boss 2.59 1.04 4 Lack of enforcement of fair policies for all 2.5 1.13 5 Inadequate resources 2.44 1.10 6 Lack of advanced technology 2.08 1.02 7 Poor relationship with co-workers 2.00 1.00 8 Safer site elsewhere 1.83 0.98 9 Clean job versus dirty job 1.82 1.06 10

In support of these findings, Tnay et al. (2013) have concluded that pay and supervisory support act as a crucial factor in affecting employee‘s turnover intention; while Sichani (2010) identified lack of recognition/incentives as other factors that have influence on employee turnover. Also, the findings are supported by the conclusions of Rojas (2008) that, company size (which incorporates lack of opportunities for promotions and development), responsibilities, tasks and worker commitment, better benefit package elsewhere, lack of adequate tools and equipment, were found to be factors that have a negative influence on employee turnover.

Conclusion and Further Research

Many construction projects upon completion are not being delivered to the client‘s satisfaction, due to poor performance throughout the construction process, and among other factors, job satisfaction has been identified as the factor that influences the performance of these projects, through experiences of absenteeism and employee turnover. In that regard, this paper shows the importance of maintaining job satisfaction of employees involved in the construction industry, in order to improve the performance of construction projects. The literature on determinants of job satisfaction and the influence of job dissatisfaction on absenteeism and employee turnover has been reviewed. The findings reveal that the most important determinants of construction job satisfaction are: work that allows personal growth; work that allows development; employment security; adequate salary; feedback from boss on task performance; opportunity for promotions and challenging work. Also, the findings suggested that aspects associated with job dissatisfaction, such as: salary, incentives, professional growth, working relationship as well as enforcement of fair, were seen to be the most influential factors of absenteeism and employee turnover in the South African construction industry.

It is recommended that within the contracting and construction firms, the employers should as from time to time, assign employees to different types of projects; be residential, commercial, civil and so forth. This will help equip employees with different experiences; thereby allowing professional and personal development as well as continual professional development. Also, it is crucial for such employees to be involved in a particular project from the start until its completion. This will allow the employers to have sufficient time to monitor

123 the performance and contribution of a particular employee involved in such project. As a result, the employer or boss will be able to give feedback on employee‘s performance as well as, where necessary, reward that particular employee either by provision of promotion (associated with salary increase), incentive bonus or an award as way of appreciation. Also, the employers should improve working environment to be conducive for employees to perform tasks. This can be achieved by modifying and improving working environment through provision of adequate lighting, comfortable temperatures and ventilation, as well as access to eating area.

The majority of the respondents were younger as well as female members of construction professional team. Therefore, this study carries a greater value in contributing to the existing literature of job satisfaction based on individuals of rather different characteristics as mentioned above. Significantly, the construction industry needs to retain individuals of such characteristics to assist in contributing positively in improving the performance of the industry as a whole. Probably, these younger respondents may become the future seniors and leaders within the industry; therefore, it is crucial to invest in them, in order to retain and create potential candidates ideal for being leaders and seniors that the construction industry needs to have in future. By investment, it implies that, with the guidance of these present findings of this study, the management and employers can manage to address and maintain the issue of job satisfaction of these aforementioned individuals.

References Bernold, L.E. & AbouRizk, S.M. (2010). Managing Performance in Construction. New Jersey: John Wiley and Sons, Inc. Bowen, P. & Cattell, K. (2008). Job satisfaction of South African Quantity Surveyors. Engineering, Construction and Architectural Management, 15(3), pp. 260 – 269. Burke, R. (2010). Project Management Techniques: Project Leadership. Cape Town: Burke Publishing. Cheney, P.H. (1984). Effects of Individual Characteristics, Organizational Factors and Task Characteristics on Computer Programmer Productivity and Job Satisfaction. PhD. University of Minnesota. CIDB (2013). The CIDB Construction Industry Indicators: Summary Results. Pretoria: CIDB. Deeprose, D. (2003). Smart Things to Know about Motivation. UK: Capstone Publishing Limited. Hadebe, (2001). The Relationship between Motivation and Job Satisfaction of Employees at Vista Information Services. Degree of Masters in Administration. University of Johannesburg. Hodson, R. & Sullivan, T.A. (1990). The Social Organization of Work: Seeking Job Satisfaction. United State of America: Wadsworth Horner, R.M.W. & Talhouni, B.T. (1984). Effects of Accelerated Working, Delays and Disruption on Labour Productivity: Absenteeism. UK. Publisher Unknown. Kanderee, K. & Chaudhry, A.G. (2012). Leadership – Style, Satisfaction and Commitment: An Exploration in the United Arab Emirates Construction Sector, Engineering, Construction and Architectural Management, 19(1), pp. 61 - 85. Lavender, S. (1996). Management for the Construction Industry: Individual Motivation. Addison Wesley Longman. Limited. England. Matutuane, L.P. (2009). A Study of Employee Satisfaction in Two Manufacturing Facilities of General Motors South Africa. MBA. Rhode University.

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Neuman, W.L. (2000). Social Research Methods: Qualitative and Quantitative Approaches. New York: Pearson. Onukwube, H.N. (2012). ‗Correlates of Job Satisfaction amongst Quantity Surveyors in Consulting Firms in Lagos‘, Nigeria, Australian Journal of construction Economics and Building, 12(2), pp. 43-54. Robbins, S. (2003). Organizational Behaviour: Values, Attitudes, and Job Satisfaction & Basic Motivation Concepts. New York: Pearson. Rojas, E.M. (2008). Construction Productivity: Absenteeism and Turnover. United States of America: ELECTRI International. Roos, W. (2005). The Relationship between Employee Motivation, Job Satisfaction and Corporate culture. MSc. University of South Africa. Sichani, M.S. (2010). Understanding Absenteeism in Construction.: A Pilot Study on Industrial Construction Alberta. MSc. University of Alberta. Thwala, W.D., Monese, L. & Nthabiseng, L.N. (2012). ‗Motivators of Construction Workers in the South African Construction Sites: A Case Study‘, Journal of Economics and Behavioral Studies, 4(11), pp. 625-643. Tnay, E. Othman, A.E. Siong, H.C & Lim, S.L.O. (2013). ‗The Influences of Job Satisfaction and Organisational Commitment on Turnover Intention‘. Proceedings of Social and Behavioural Sciences, 6 November 2013, Universiti Malaysia Sarawak, pp. 201-208. Tyilana, E.X. (2005). Impact of Motivation On Job Satisfaction Amongst employees Of A National Broadcaster. MCom. University of Johannesburg. Yirenkyi-Fianko, A.B. & Chilese, N. (2012). ‗Job Satisfaction of Professionals within Ghanaian Construction Industry‘, In: Smith, S.D (Ed). Proceedings Of The 28th Annual ARCOM Conference. 3-5 September 2012. Edinburgh, UK: Association of Researchers in Construction Management, pp.589-599.

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An assessment of the barriers in adoption and implementation strategies of building information modelling (BIM) in South African construction TG Kekana, CO Aigbavboa and WD Thwala Department of Construction Management & Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: BIM is a concept that has been defined as a technology that digitally constructs an accurate virtual model of a building. BIM can be defined as an IT enabled approach that involves the application and maintenance of a fundamental digital representation of a building and all its information throughout the different stages of the project. The model of the building, which will be in 3D, will depict the exact dimensions of the building. The study assesses the barriers to the adoption and implementation of BIM within the South African construction industry, and suggests ways of overcoming the identified barriers to the full adoption and implementation of BIM in the South African construction industry. The data used in this paper was derived from primary and secondary sources. The primary data being questionnaires, was designed based on the related literature that was reviewed. The questionnaire was distributed to construction professionals such as Construction Project Managers, Architects, Quantity Surveyors, Construction Managers, Facility Managers, or academics who have previously done research on BIM in the South African construction industry. The questionnaires were analysed using descriptive statistical procedures. The findings revealed that a lack of skills, education, and knowledge on BIM are the biggest barriers to the full implementation of BIM in South Africa. Furthermore, the results also show that educational and skill development initiatives are widely considered to being the answer to the existing barriers to BIM adoption. As well as, establishing feasible ways of moving away from the common practice into using BIM on all construction projects.

Keywords: Building Information Modelling, Construction, South Africa

Introduction

BIM produces a model known as the building information model, which according to Ahazar (2011) and Bryde et al. (2012) can be used throughout all the project stages to, and including the operation and maintenance of the facility. According to Riddel (n.d.), BIM represents the design of the building as objects that carry their geometry and full attributes. This is achieved because the model will depict how the building will look once all the components have been inserted or built into the data. According to Ashraf and Esquire (2008), some of the other possible uses for BIM in construction industry include it being used solely for design purposes, for coordination and clash detection, estimating material prices, construction simulation, and the creation of shop drawing and for review of submittals, amongst others. Although BIM is perceived to being able to eradicate almost all the inadequacies that arise in the process of construction, it is not the solution to all the problems in construction

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(Davidson, 2009). Eastman et al. (2008) further states that BIM is a modelling technology, which has an associated set of process that produce, communicate and analyse building models. The authors further identify the characteristics of these models by the building components that are digitally represented, the different components of the data, and the data, which produces the different views of the model. The communicated views are 3D representations which is something that cannot be achieved without the usage of BIM.

However, even with the documented benefits of using BIM, it has certain barriers that make potential users reluctant to its full adoption and implementation in the construction industry. Davidson (2009) attributes some of these barriers to issues such as workflow disruption, staff and training, legal and contractual issues and interoperability. Some of these attributions are echoed by Ku and Taiebat (2011) and Takim et al. (2013). These barriers are universal because of the professionals‘ reluctance to move away from their usual methods of managing and carrying out projects. Furthermore, Cidik et al. (2014), with aid from Bank et al. (2010) identify other abilities of the BIM technology, including those before mentioned, to help professionals in carrying such performance assessments at earlier design stages of the projects as a benefit of using BIM. Although BIM is proving to be the answer to a lot of construction related problems, it has also been widely noted by authors such as Brewer et al. (2012) and Ashcraft and Esquire (2008) that BIM doesn‘t come without its challenges. From the literature that was reviewed, the researcher found that there were two major issues which were turning out to being barriers to the adoption and implementation of BIM in construction industries across the world. These barriers could be divided into two groups, namely contractual issues as explained by Ashcraft and Esquire (2008), and personnel issues as explained by Ku and Taiebat (2011).

Ashraf and Esquire (2008) have identified certain legal issues that that stand in the way of the full adoption and implementation of BIM. These issues provide headaches with regards to who should be taking responsibility for which parts of the model, as well as the distribution of risk amongst all the professionals within the project team. Therefore, in this research study, the researcher has looked at what BIM is, the critical barriers to its adoptions, and how these barriers can be successfully overcome in the South African construction industry.

Barriers to the implementation of BIM

Ashraf and Esquire (2008) have done a lot of research on the barriers to the full adoption and implementation of BIM in construction. And they have listed the following as the some of the existing barriers:

Standard of care of using BIM

This looks at the inability of the professionals to identify and rectify any physical conflicts (clash detection) that may occur during the project life using BIM. The resulting consequences of such ‗negligence‘ may include delays and cost overruns due to reworks that will be required once clashes are detected.

Design delegation and professional responsibility

This clause looks to define and identify the roles and responsibilities of the parties involved in the project. The process between design, construct and ownership of the building puts normally puts the architect and/or engineer as the person with the most responsibility for the

127 model. Alternatively, a new position such as a BIM-modeller can be created (Brewer et al., 2012) to carry out the same responsibilities.

Intellectual property

This refers to the challenges that will arise in terms of what is the design and who owns it amongst others. Such problems are only resolved by contractual agreements at the commencement of the design process. Failure to do so may lead to violations because the model holds the parts of the design.

Insurability

This relates to who has rights in the model of the project at hand. Hence the rights to the models have to be insured. Insurance brokers involved in the construction industries are yet to allow stable and assured policies with regards to these issues.

Data translation

This relates to the sharing/feeding and/or transferring of information into the model. The appropriate interoperability of the information is a fundamental aspect of BIM. The ability for different tools in the model to adequately send and receive information is of utmost importance. The ethics of the professionals plays a role in ensuring the smooth-running of this part of the model.

Research Methodology

The data used for this paper was derived from both primary and secondary sources. The primary data was obtained through a structured close-ended questionnaire, and the secondary data was obtained from the relevant literature that was reviewed by the researcher. A total number of 65 structured questionnaires were sent to individuals in the municipalities of Tshwane, City of Johannesburg, and Ekhuruleni (all in Gauteng, South Africa) who are practicing as Quantity Surveyors, Construction Managers, Architects, Facility Managers, Project Managers, or Academics. The questionnaire was designed based on the information that was gathered during the literature review. A 5-point likert type scale was used for the questionnaires. This scale measured the extent to which the respondents agreed or disagreed with the factors presented to them. A random sampling method was adopted for the purposes of this research. This method was preferred due to the fact that it gave all the targeted respondents an equal chance and opportunity of being selected.

From all the questionnaires that were sent out; 50 usable questionnaires were returned. This meant that the response rate was at 77%. The data were then analyzed using the Statistical Package for the Social Sciences (SPSS); with the frequencies and mean item scores (MIS), and the standard deviations (SD) of the rated factors being considered. This research was conducted between the months of May and September 2014; with the data collection being carried out between June and August 2014.

The Likert scales were transformed to an MIS for each of the research objectives as applicable. The indices were then further used to determine the rank of each item according the results obtained from the respondents. These rankings made it possible to cross compare the importance of each item to the respondents. The MIS was based on previous studies as conducted by Mukuka et al. (2013) where the ‗MIS‘ rating was used. This method was also

128 used for this study to analyse the data collected through the distributed questionnaire. The MIS was calculated from the total of all weighted responses and then it was related to the total responses on a particular option/item on the questionnaire. This was based on the principle that respondents‘ scores on all the selected options, considered together, are indices of the relative importance of each of the options. The index of MIS of a particular factor is the sum of the scores that were received from the respondents (on the particular Likert scale of that question) as just a proportion the overall score that all respondents could give to that factor (one to five), which, for the two main questions for this study, mean ―Not a barrier (NB)-Extreme barrier (EB)‖ and ―Strongly Disagree (SD)-Strongly Agree (SA)‖. The relative index for each item was calculated for each item as follows, after Aigbavboa et al. (2013). Following the mathematical computations, the criteria are then ranked in descending order of their relative importance index (from the highest to the lowest). The next section of the article presents the findings of the survey and some discussions.

Findings and Discussion

Findings from the questionnaire survey that was sent out reveal that of the 50 questionnaires that were returned, 42% of the respondents had obtained a Bachelor‘s Degree, 38% had a Diploma, 14% had a Master‘s Degree, and only 6% had a Matric certificate as their highest educational qualification. Furthermore, the data results also reveal that of the 50 respondents, 32% were working as Quantity Surveyors, 32% were Architects, 18% were Construction Managers, 12% were Project Managers, 4% were Construction Project Managers, and only 2% were working as Facility Managers. The results go on to show the years of experience that the respondents had. 52% of them had between 1 and 5 years, 30% had between 6 and 7 years, 12% had between 11 and 15 years, 4% had between 16 and 20 years, and only 2% had above 20 years of experience.

Awareness and Experience of BIM

The questionnaire results reveal that the majority (66%) of the respondents had some sort of experience with BIM and its tools. 34% of the respondents had no experience with BIM, 18% had 1 year experience, 12% had 2 years of experience, another 12% had 3 years of experience, a further 8% had 4 years‘ experience, 6% had 5 years, and 10% had more than 5 years of experience with BIM. Of those who had no experience as yet with BIM, 40.6% said they were interested in BIM, 31.3% were highly interested, and a further 21.9% were neutral in terms of interest. Only 6.2% said they have low-to-no interest in BIM. The respondents were also asked how often BIM is used in their organisations, who uses it, and which BIM tools were used in their organisations. Figure 1 shows how often BIM is used in these organisations.

Figure 1: Frequency of BIM usage in organisations

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Figure 2 shows how the respondents responded when asked who, in their organisations, is permitted to use BIM for the projects which they work on.

Figure 2: Those permitted to use BIM for projects in organisations

Figure 3 shows which BIM tools are used in these organisations.

Figure 3: BIM tools used in organisations

Barriers to the adoption of BIM

In addition, when the respondents were asked what they thought were the barriers to the adoption of BIM in the South African construction industry, they identified and ranked a lack of BIM skills development as the main barrier (MIS=3.56). The results, shown in Table 1, also show that lack of training on BIM (MIS=3.53), lack of education on BIM (MIS=3.52), the unavailability of qualified personnel (MIS=3.42), and the lack of expertise on BIM (MIS=3.32) are amongst the major barriers to the full adoption and implementation of BIM in the South African construction industry. This is in full agreement with what Ku and Taiebat (2011) said about personnel problems being the biggest hindrances and barriers to the full adoption of BIM in organisations. The results show that problems arising from contractual issues (MIS=2.74), licensing procedures (MIS=2.68), and insurance issues (MIS=2.65) are the lowest ranked in relation to them being factors in the full adoption and implementation of BIM in the South African construction industry. The lower ranked factors are also in agreement with Ashcraft and Esquire (2008) who said contractual issues were also barriers in the adoption of BIM globally. However, the results contradict their conclusion that the contractual issues are the main barriers.

Ways of overcoming the barriers to BIM adoption

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In addition, when the respondents were asked to rate their agreement with the researcher as to which ways would work best in eradicating these barriers, education on BIM came out on top. The results, also shown in Table 2, show that the respondents believe that BIM should be integrated into education courses across all built environment disciplines (MIS=4.52), that BIM skills development programmes should be conducted in the construction industry (MIS=4.32), and that the availability of BIM technology be increased (MIS=4.28). The results have also shown that the respondents consider the improving of BIM software standardization (MIS=3.94), the developing of forms of contracts for the insurance of BIM (MIS=3.84), and having the government enforce the usage of BIM as a primary requirement in the built environment sector (MIS=3.72) as the lowest ranked. However, it must be noted that although these three are at the bottom of the list, the MIS‘s are not too far from those at the top. This explains that any, if not all, these suggested ways to overcoming the identified barriers could have a major impact if they were taken forward and enforced.

Table 1: Barriers to the adoption of BIM in the South African construction industry Barriers to adoption of BIM MIS SD Rank Lack of BIM skills development 3.56 0.675 1 Lack of training on BIM 3.53 0.892 2 Lack of education on BIM 3.52 0.909 3 Unavailability of qualified personnel 3.42 0.785 4 Lack of expertise on BIM tools 3.32 0.768 5 Lack of information on BIM 3.20 0.948 6 Lack of resources needed for BIM 3.14 0.948 7 Lack of support for BIM from the industry 3.04 0.989 8 Unwillingness to change the traditional way of practice 3.00 0.904 9 Current contractual systems which do not adequately address issues of control of entry of data to BIM model 2.96 0.781 10 Inadequacies in the standardization of BIM processes 2.94 0.767 11 Hesitation to learn new technology 2.92 0.932 12 Culture shock (Contrary to common practice) 2.92 1.057 12 The common practice of design and drafting separately 2.86 0.756 13 Current contractual systems which do not adequately address issues regarding model ownership 2.86 0.833 13 Lack of software inter-operability 2.86 0.857 13 Lack of software standardization 2.84 0.817 14 Current contractual systems which do not adequately address issues regarding the liability for errors 2.84 0.866 14 Lack of support for BIM from clients 2.80 1.161 15 Problems arising from contractual issues 2.74 0.922 16 Current contractual systems which do not adequately address issues regarding omissions 2.74 0.965 16 Problems arising from copyright procedures 2.74 0.986 16 Problems arising from licensing procedures 2.68 0.935 17 Problems arising from insurance issues 2.65 0.830 18 (MIS=Mean Item Score, SD=Standard Deviation, R=Rank)

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Conclusion and Further Research

The study has assessed the critical barriers to the adoption and implementation strategies of BIM in the South African construction industry. The findings of the study suggest that the barriers to the adoption in South Africa are similar to those of the first world countries. The findings reveal that BIM and its tools are used in South Africa; however it has not been exposed to enough people for it to be considered on construction projects in the local industry, with only 38% of the organisations using BIM on often and/or all their projects. The findings further reveal that a lack of skills, education, and knowledge on BIM are the biggest barriers to the full implementation of BIM in the South African construction industry, in addition to that, the results also show that educational and skill development initiatives are widely considered to be the answer to the existing barriers to BIM adoption. Also, increasing the availability of BIM technology to all organisations, and establishing feasible ways of moving away from the common practice (way of doing business) into using BIM on all construction projects have been ranked highly as possible ways of overcoming the identified barriers to the full implementation and adoption of BIM in the local South African construction industry. Therefore, the study‘s objectives of assessing the critical barriers to the adoption of BIM in the South African construction industry, and to suggest feasible ways of overcoming the berries have been met.

Table 2: Ways of overcoming barriers to BIM adoption in South African construction Statements MIS SD Rank Integrate BIM into education courses across all built environment disciplines 4.52 0.707 1 Conduct BIM skills development programmes in the construction industry 4.32 0.844 2

Establish feasible ways of moving from common practice into BIM 4.28 0.784 3

Increase the availability of BIM technology 4.28 0.927 3 Conduct workshops on BIM benefits to create awareness among all the stakeholders 4.24 0.797 4

Undertake pilot projects to validate and demonstrate the BIM outcomes. 4.10 0.839 5

Improve interoperability of the BIM software with existing applications 4.08 0.922 6 Communicate lessons learned from the pilot projects to all stakeholders 4.08 0.944 6

Develop forms of contracts for stakeholders for the use of BIM technology 4.04 0.947 7

Develop forms of contracts for stakeholders for intellectual property of BIM 4.02 0.958 8

Improve on BIM software standardization. 3.94 0.843 9

Develop forms of contracts for stakeholders for warranty requirements of BIM 3.94 0.956 9

Educate government departments on ‗model-based‘ deliverables and its benefits 3.94 1.038 9 Develop forms of contracts for the insurance of BIM 3.84 0.934 10

Have government enforce the usage of BIM as a primary requirement in the built environment sector 3.72 1.230 11

References Azhar, S. (2011) ‗Building Information Modelling (BIM): Trends, benefits, risks, and challenges for AEC industry‘. Leadership and Management in Engineering. 241-252.

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Azhar, S., Carlton, W., Olsen, D. & Ahmad, I. (2010) ‗Building information modelling for sustainable design and LEED rating analysis‘. Automation in Construction. 20(2), 217- 224. Ashraf, H.W. (2008) ‗Implementing BIM: A report from the field on the issues and strategies‘. Proceedings of the 47th annual meeting of invited attorneys. June 2008. Seattle, WA. 53-84. Bank, L.C., McCarthy, M., Thompson, B.P., & Menassa, C.C. (2010) ‗Integrating BIM with system dynamics as a decision making framework for sustainable building design and operation‘. Proceeding of the First International Conference for Sustainable Urbanization (ICSU). December 2010. Hong Kong, China. Bryde, D., Broquetas, M. & Volm, J.M. (2012) ‗The project benefits of building information modelling (BIM)‘. International Journal of Project Management, 31, 971-980. Cidik, M.S., Boyd, D. & Thurairajah, N. (2014) ‗BIM and conceptual design sustainability analysis: An information categorisation framework‘. Proceedings of the 50th ASC Annual International Conference. March 2014. Washington, DC. Davidson, A.R. (2009) ‗A study of the development and impact of building information modelling software in the construction industry‘. Ding, G.K.C. (2008) ‗Sustainable construction-The role of assessment tools‘. Journal of Environment Management. 86, 451-464. Eastman, C.M., Teicholz, P., Sachs, R. & Liston, K. (2008) BIM handbook: A guide to building information modelling for owners, managers, designers, engineers, and contractors. Hoboken, N.J: Wiley Publishing. Gu, N. & London, K. (2010) ‗Understanding and facilitating BIM adoption in the AEC industry‘. Automation in Construction. 19, 988-999. Hobbs, C. (2008) ‗BIM by the back door‘. The Structural Engineer, 86(13), 18. Ku, K. & Taiebat, M. (2011) ‗BIM experiences and expectation: The contractors‘ perspective‘. International Journal of Construction Education and Research, 7(3), 175- 197. Riddell, C. (n.d) ‗Building information modelling. Who is liable?‘ Schlueter, A. & Thessling, F. (2009) ‗Building information model based energy/exergy performance assessment in early design stages‘. Automation in Construction. 18(2), 153- 163. Takim, R., Harris, M. & Nawawi, A.H. (2013) ‗Building information modelling (BIM): A new paradigm for quality of life within architectural, engineering and construction (AEC) industry‘. Procedia-Social and Behavioural Sciences, 101(1), 23-32.

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Advantages of Including Core Real Estate Topics in Bachelor of Construction Management and Quantity Surveying Curricula in South Africa Samuel H.P. Chikafalimani1, Ganesan Reddy2 and Krishna Ramphal2 1Industrial Development Corporation of South Africa, Johannesburg, South Africa [email protected] 2Department of Construction Management and Quantity Surveying Durban University of Technology, Durban, South Africa [email protected] [email protected]

Abstract: Core real estate topics include: property valuation, property management, property finance, property investment, property law, property marketing, and property development. This paper describes the advantages gained by students and industry when core real estate topics are covered in Bachelor of Construction Management and Quantity Surveying (BCMQS) curricula. To determine the advantages, fifteen quantity surveying practitioners who attended South African Council for Quantity Surveying Profession (SACQSP) 2014 annual conference in Pretoria, South Africa were surveyed. In addition to learning quantity surveying and construction management skills, results of the survey reveal that the advantages of including core real estate topics in BCMQS curricula include exposing students to property specific skills like: principles of property market value determination, leasing / property management / facilities management, property development process, time value of money, life cycle costing, and property financing and investment options. The intention of the study is to highlight how such unique curricula broaden opportunities for students and benefits the industry by engaging multi-skilled graduates.

Keywords: Construction Management, Curricula, Education, Real Estate, Quantity Surveying

Introduction

Fifteen quantity surveying practitioners who attended the South African Council for the Quantity Surveying Profession (SACQSP) annual conference from 21 to 23 September 2014 in Pretoria, South Africa were surveyed to determine the advantages of including core real estate topics in Bachelor of Construction Management and Quantity Surveying (BCMQS) curricula. While it is appreciated that input was obtained from prominent players in the construction and property industry in order to include core real estate topics in some of BCMQS curricula in South Africa, no study has specifically been done to confirm the reasons why core real estate topics are covered in the curricula. Therefore, this study aims at scientifically highlighting the advantages of adding core real estate topics in BCMQS curricula based on views obtained from practicing quantity surveying professionals in South Africa. In the process the study intends to link and tie the curriculum with industry requirements. Justification for the study is based on the fact that practitioners in the industry have an important role to play in the processes of curriculum assessment, improvement and development (Worzala, 2003; Butler, Guntermann & Wolverton, 1998). Table 1 contains selected BCMQS programmes offered in South Africa.

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Literature Review

The following relevant areas are reviewed in order to set out the theoretical framework underpinning the study:

Relationship between real estate and other built environment professions Black and Rabianski (2003) observe that in the UK and other British Commonwealth countries the relationship between real estate and other built environment programmes is very strong. As a consequence real estate programmes at universities in most of these countries are housed together with other built environment programmes where both physical and financial aspects of real estate are taught (Roulac, 2002). According to the Council for the Built Environment (CBE) in South Africa, built environment professions include: quantity surveying, construction management, town planning, architecture, civil engineering and property valuation. These professions are related and complement each other in construction and property development processes (Murphy, 1999).

Real estate, quantity surveying and construction management curricula In order to understand fully the advantages of including core real estate topics in BCMQS curricula, it is necessary to highlight the cornerstones of real estate, quantity surveying and construction management curricula. Black, Carn, Diaz and Rabianski (1996) emphasise that a well-rounded curriculum must reflect the interdisciplinary and multidisciplinary nature of the construction and property industry. Therefore, the aim of a curriculum in the built environment should be to provide effective decision makers, practitioners and managers who are armed with concepts, techniques and skills required to solve problems in the construction and property industry of today and tomorrow.

Table 1: Selected BCMQS curricula offered in South Africa University Names of degree programmes offered Durban University of Technology Bachelor of Technology (Quantity Surveying) (DUT), Durban Bachelor of Technology (Construction Management) University of KwaZulu-Natal Bachelor of Science (Property Development) (UKZN), Durban University of Cape Town (UCT), Bachelor of Science (Quantity Surveying) Cape Town Bachelor of Science (Construction Management) Cape Peninsula University of Bachelor of Technology (Quantity Surveying) Technology (CPUT), Cape Town Bachelor of Technology (Construction Management) Central University of Technology Bachelor of Technology (Quantity Surveying) (CUT), Bloemfontein Bachelor of Technology (Construction Management Nelson Mandela Metropolitan Bachelor of Science (Quantity Surveying) University (NMMU), Port Elizabeth Bachelor of Science (Construction Management Bachelor of Technology (Quantity Surveying) Bachelor of Technology (Construction Management University of Witwatersrand (UW), Bachelor of Science (Quantity Surveying) Johannesburg Bachelor of Science (Construction Management) University of Pretoria (UP), Pretoria Bachelor of Science (Quantity Surveying) Bachelor of Science (Construction Management) Tshwane University of Technology Bachelor of Technology (Quantity Surveying) (TUT), Pretoria Bachelor of Technology (Construction Management) Sources: Construction Management and Quantity Surveying Study Guides: DUT, UKZN, UCT, CPUT, NMMU, UW, UP and TUT

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Based on these industry requirements, Black et al. (1996) and Schulte (2003, 2007) note that a comprehensive real estate curriculum should be composed and be built around four cornerstones of the property industry which are: property valuation, property management, property finance, and property development. With regard to quantity surveying curriculum, the SACQSP has offered a curriculum guideline which indicates that a quantity surveying curriculum should cover the following broad topics: feasibility studies; construction law; construction economics; construction technology; construction management; quantifying and documentation; valuation of construction work; risk, value management and cost control; and procurement. These core topics are also described by the SACQSP as critical curriculum outcomes. Finally, the course content of construction management curriculum is expected to include the following topics: project management planning, cost management, quality management, contract administration, and safety management.

Importance of industry in built environment education Chikafalimani and Reddy (2014) conducted a study on integration of the industry in real estate education in Africa. It was noted that input from industry practitioners and employers assisted the universities offering real estate education in Africa in the processes of curriculum assessment and improvement. Hence, comments from the industry on the curriculum provided an opportunity for educators to determine how course offerings are being appreciated by students, industry practitioners and employers. Manning (2002), Callanan and McCarthy (2003), Galuppo and Worzala (2004), Chambers, Holm and Worzala (2009), Chikafalimani and Cloete (2010), and Chikafalimani (2013) add that such a role fits industry practitioners and employers well since they recruit the students after graduation. From that perspective they are fully aware of weaknesses and strengths of graduates when they join the workplace and based on this they are in the right position to advise educators how the curriculum is supporting new hires to meet industry requirements as well as address new challenges that are emerging in construction and property business. This study attempts to seek input on the curriculum from industry practitioners by asking them to mention advantages gained by students and industry when core real estate topics are included in BCMQS curricula.

Changing construction and property business Roulac (2002) noted that today the construction and property industry is subjected to extraordinary forces that redefine its attributes and introduce new expectations for those with construction and property involvements. Some of the prominent factors (forces) which have caused change in construction and property business include: urban form changes and problems; globalisation; information technology advances; environmental concerns; and political, legal, social and economic factors (Roulac, 2002; Ghyoot, 2002). Introduction of these factors has necessitated the client in the construction and property industry to change in order to survive. New challenges that have specifically affected the client are: decline in house market prices, a sub-prime mortgage crisis, high oil prices, rising inflation, high food prices, a substantial credit crisis leading to the bankruptcy of several large and well established investment banks, increased unemployment, and global recession (Chikafalimani, 2010). With increasing financial, economic and social problems, the budgets of construction and property clients globally have become tighter, and their construction and property needs have all over a sudden changed mainly because of unaffordability reasons. Due to new challenges the client and industry are experiencing, the construction and property professional has equally been forced to adapt his services package and skills in order to survive (Roulac, 2002). As a consequence, Susilawati and Blake (2009) observe that in

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Australia compositions of construction and property professional services firms have been forced to move away from a discipline specific ‗silo‘ structure to a more multidisciplinary environment to survive. They add that the benefits of multidisciplinary elements have been seen in the industry by providing synergies across many of the related disciplines. In response to industry changes and requirements, Queensland University of Technology in Australia has sought to broaden the knowledge base of quantity surveying, construction and property students and achieve a greater level of synergy between related and built environment professions (Susilawati & Blake, 2009). This study similarly examines the advantages of including core real estate topics in BCMQS curricula in South Africa to highlight how such unique curricula broaden opportunities for students and benefits the industry by engaging multi-skilled graduates who are able to competently deal with quantity surveying / construction and property specific tasks.

Research Methodology

Two research approaches were used to collect data for the study. Firstly, a literature survey was conducted to identify BCMQS curricula offered in South Africa which include core real estate topics and whose course contents were easily accessible. Table 1 contains 19 selected BCMQS curricula found in the study which include core real estate topics. Secondly, a survey of fifteen quantity surveying practitioners who attended the SACQSP annual conference from 21 to 23 September 2014 was undertaken to determine the advantages to students and industry of including core real estate topics in BCMQS curricula in South Africa. Responses from the practitioners were obtained through direct interviews which were held with each quantity surveying practitioner separately. In the interviews the practitioners were asked to mention advantages they have noted to students and industry when core real state topics are included in BCMQS curricula.

Results, Analysis and Discussion

Results of the study carried out to determine advantages of including core real estate topics in BCMQS curricula in South Africa are analysed and discussed under two subheadings: survey of selected BCMQS curricula, and survey of quantity surveying practitioners.

Survey of selected BCMQS curricula Table 1 contains selected BCMQS curricula identified in the curriculum survey in South Africa which have core real estate topics in their course offerings. In total 19 selected BCMQS curricula were found in the survey and are offered by the following universities: Durban University of Technology, University of KwaZulu Natal, University of Cape Town, Cape Peninsula University of Technology, Central University of Technology, Nelson Mandela Metropolitan University, University of Witwatersrand, and Tshwane University of Technology. Results of curricula analysis given in Table 2 show that core real estate topics offered by these universities are: Market Valuation (Property Valuation); Maintenance Management (Property Management / Facilities Management); Property Studies (Property Valuation, Property Management, Property Finance, Property Investment, Property Law, Property Marketing, and Property Development); Property Law; and Property Financial Mathematics (Time Value of Money). This finding clearly demonstrates that apart from offering quantity surveying and construction management subjects, these universities have purposely included real estate topics in curricula expected to produce quantity surveying and construction management professionals. By including these topics in the curricula, the

137 universities have indicated that it is relevant for quantity surveying and construction management students to be exposed to some important real estate topics in order for them to be competent built environment professionals as they join the workplace in construction and property industry. Further, this finding shows that the universities are aware that apart from offering quantity surveying and construction management services, after graduation, these students may also be frequently asked by clients in the industry to also offer property specific services. Since the students were exposed to real estate topics while at the university they will also be able to give professional advice to clients on property specific needs as they offer quantity surveying and construction management services. Consequently, it is noted that students graduating from such unique BCMQS curricula have an advantage since they are multi-skilled and will be able to support clients in the industry with quantity surveying / construction and property specific needs.

Survey of quantity surveying practitioners Results of the survey of quantity surveying practitioners on advantages of including core real estate topics in BCMQS curricula in South Africa are contained in Table 3. The phrasing of the responses in Table 3 is exactly the same as given by the practitioners. In some cases where there were similarities between the responses, they were grouped together. In total 8 responses were given by the respondents. The responses from the survey of practicing quantity surveyors test the selected BCMQS curricula if they are meeting student and industry requirements as intended. As expected from an open-ended question, a variety of responses were submitted. Most of the responses given are constructive and significantly highlight the advantages gained by students and industry from such unique BCMQS curricula which include core real estate topics.

Table 2: Core Real Estate Topics offered in Selected BCMQS curricula offered in South Africa University Core real estate topics offered Durban University of Technology Market Valuation (Property Valuation), (DUT), Durban Maintenance Management (Property Management / Facilities Management) University of KwaZulu-Natal Property Studies (Property Valuation, Management, (UKZN), Durban Finance, Investment, Law, Marketing, Development University of Cape Town (UCT), Property Studies (Property Valuation, Management, Cape Town Finance, Investment, Law, Marketing, Development Cape Peninsula University of Market Valuation (Property Valuation), Technology (CPUT), Cape Town Maintenance Management (Property Management / Facilities Management) Central University of Technology Market Valuation (Property Valuation), (CUT), Bloemfontein Maintenance Management (Property Management / Facilities Management) Nelson Mandela Metropolitan Market Valuation (Property Valuation), University (NMMU), Port Elizabeth Maintenance Management (Property Management / Facilities Management) University of Witwatersrand (UW), Property Studies (Property Valuation, Management, Johannesburg Economics & Finance, Investment, Law, Marketing, Development University of Pretoria (UP), Pretoria Introduction to Property Law, Property Financial Mathematics (Time Value of Money) Tshwane University of Technology Market Valuation (Property Valuation), (TUT), Pretoria Maintenance Management (Property Management / Facilities Management) Sources: Construction Management and Quantity Surveying Study Guides: DUT, UKZN, UCT, CPUT, NMMU, UW, UP and TUT (2014)

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Responses given by practicing quantity surveyors in Table 3 emphasise the point that when core real estate topics are included in BCMQS curricula, quantity surveying and construction management students have the advantage of also being taught property specific skills in addition to quantity surveying and construction management subjects. Following from this, results in Table 3 shows that all respondents agree that by including core real estate topics in the curricula, BCMQS students have the opportunity to learn ‗principles of property market value determination‘ and ‗leasing / property management / facilities management‘ skills. 93% of the respondents also express the point that by including core real estate topics students are exposed to the ‗property development process‘ while 87% of the practicing quantity surveyors mention that students are made aware of ‗time value of money‘, ‗life cycle costing‘, and ‗property financing and investment options‘. In Table 3, it is also noted that 80% of the respondents are confident that by including core real estate topics in BCMQS curricula students will be able to extend business consultancy opportunities for themselves and their employers as well as increase their employment opportunities when they join the construction and property industry since they are multi-skilled. Based on all of this, the impression given by the respondents is that BCMQS curricula which include core real estate topics in their offerings are supporting the production of competent multi-skilled built environment professionals who will effectively handle both quantity surveying / construction and property specific tasks in the industry.

Table 3: Practicing quantity surveyors responses on advantages of including core real estate topics Response Frequency Percentage (%) Principles of property market value determination 15 100 Leasing / property management / facilities management 15 100 Property development process 14 93 Time value of money 13 87 Life cycle costing 13 87 Property financing and investment options 13 87 Extend business consultancy opportunities / increase client services / 12 80 offer complete client services Increase employment opportunities 12 80

Conclusions and Further Research

The study is brief and focused and intends to link course content of BCMQS curricula which contain core real estate topics with construction and property industry requirements. Based on findings of the study, it is noted from practicing quantity surveyors that the main advantage of such unique curricula is that they offer an opportunity to quantity surveying and construction students to be taught property specific skills like: principles of property market value determination, leasing / property management / facilities management, property development process, time value of money, life cycle costing, and property financing and investment options. This broadens their knowledge and skills base. Furthermore, the responses given by the practicing quantity surveyors are positive and constructive and support the decisions taken by the universities to incorporate core real estate topics in the curricula. It is also observed from findings of the study that the construction and property industry benefits from such unique curricula by being given the opportunity to engage and employ competent multi-skilled built environment professionals who are able to tackle effectively both quantity surveying / construction and property specific tasks. This is particularly important today when multi-skilled built environment professionals are preferred by the industry to help solve holistically a wide range of new challenges that are emerging in construction and property transactions and involvements globally. The study also notes that 139 such unique curricula widen employment and business opportunities for students as they join the industry. To conclude, the study encourages other universities offering BCMQS curricula in South Africa and elsewhere to consider incorporating core real estate topics in their course offerings in order to broaden skills base and other opportunities for students as well as meet construction and property industry requirements by producing multi-skilled graduates who are quite useful in the industry today.

References Black, R.T., Carn, N.G., Diaz, J. & Rabianski, J.S. (1996) The Role of the American Real Estate Society in defining and promulgating the study of real property, Journal of Real Estate Research, Vol. 12 No. 2, pp. 183 – 193. Black, R.T. & Rabianski, J.S. (2003) Defining the real estate body of knowledge: A survey approach: , Journal of Real Estate Practice and Education, Vol. 6 No. 1, pp. 33 – 54. Bulter, J.Q., Guntermann, K.L. & Wolverton, M. (1998) Integrating the Real Estate Curriculum, Journal of Real Estate Practice and Education, Vol. 1 No. 1, pp. 51 – 66. Callanan, J. & McCarthy, I. (2003) Property Education in New Zealand: Industry Requirements and Student Perceptions, Journal of Real Estate Practice and Education, Vol. 6 No. 1, pp. 23 – 32. Cape Peninsula University of Technology, Department of Construction Management and Quantity Surveying, Study Guide (2014). Central University of Technology, Department of Construction Management and Quantity Surveying, Study Guide (2014). Chambers, L., Holms, J. & Worzala, E. (2009) Graduate Real Estate Education: Integrating the Industry, International Journal of Property Studies, pp. 1– 13. Chikafalimani, S.H.P. (2010) A Critical Assessment of Postgraduate Real Estate Education in the Republic of South Africa, PhD thesis, University of Pretoria Chikafalimani, S.H.P. (2013), Curriculum Guideline for Masters Real Estate Education in South Africa, Academic Journal of Interdisciplinary Studies, Vol.2 No.3, pp. 397 - 402 Chikafalimani, S.H.P. & Cloete, C.E. (2010) Property Industry Perceptions on Time Allocation to Masters Real Estate Topics in South Africa, Journal of Real Estate Practice and Education, Vol. 13 No. 1, pp. 23 – 32. Chikafalimani, S.H.P. & Reddy, G. (2014) Integrating Property Industry in Masters Real Estate Education in Africa: Approaches and Initiatives, Mediterranean Journal of Social Sciences, Vol.5 No.20, pp. 340 – 346. Durban University of Technology, Department of Construction Management and Quantity Surveying, Study Guide (2014). Galuppo, L.A. & Worzala, E. (2004) A Study into the Important Elements of a Masters Degree in Real Estate, Journal of Real Estate Practice and Education, Vol. 7 No. 1, pp. 25 – 42. Ghyoot, V. (2002) Real Estate Education in Africa, in monograph of Real Estate Education Throughout the World: Past, Present and Future, Schulte, K.-W. (editor) (2002). Kluwer Academic Publishers. Manning, C. (2002) Improving Real Estate and Other Business Courses through Targeted Student Assessment, Journal of Real Estate Practice and Education, Vol. 5 No. 1, pp. 27 –43. Murphy, M.D. (1999) Investigation of a Process for Developing a Culturally and Geographically Relevant Curriculum for Landscape Architecture Education in South

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Africa, PhD thesis, University of Pretoria. Nelson Mandela Metropolitan University, Department of Construction Management and Quantity Surveying, Study Guide (2014). Roulac, S.E. (2002) Requisite Knowledge for Effective Property Involvements in Global Context, in monograph of Real Estate Education Throughout the World: Past, Present and Future, Schulte, K.-W. (editor) (2002). Kluwer Academic Publishers. Schulte, K.W. (editor) (2003) The Role of Investment and Finance in Real Estate Education and Research throughout the World, Journal of Property Management, Vol. 21 No. 1, pp. 97-113 Schulte, K.W. Real Estate Education and Research throughout the World – in the context of Africa, paper presented in Lagos, Nigeria, 15 October 2007. Susilawati, C. & Blake, A. (2009) Multidisciplinary Students on Property Core Units: comparative analysis of introductory and advanced units, paper presented in Sydney, Australia, 18 -21 January 2009. Tshwane University of Technology, Department of Construction Management and Quantity Surveying, Study Guide (2014). University of Cape Town, Department of Construction Economics, Study Guide (2014). University of KwaZulu Natal, Department of Construction Management and Quantity Surveying, Study Guide (2014). University of Pretoria, Department of Construction Economics, Study Guide (2014). University of Witwatersrand, Department of Construction Economics, Study Guide (2014). Worzala, E.M. (2003), Bridging the Practical / Academic Divide in Real Estate, Pacific Rim Property Research Journal, Vol. 8 No. 1, pp. 3 – 14. www.cbe.org.za (29.10.2014). www.sacqsp.org.za (29.10.2014). www.sacpcmp.org.za (29.10.2014).

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Proper implementation of development programmes as a key driver for creating construction industry interest among youth in Western Cape, South Africa MD Kazadi1and L Wentzel2 1Department of Economic Management Science, University of the Western Cape, South Africa [email protected] 2Department of Construction Management, Nelson Mandela Metropolitan University, South Africa [email protected]

Abstract: The South African construction industry (CI) has been plagued by a debauched image, with limited interest stemming from vibrant talented South African youth for a protracted period of time. This has seen the industry age in terms of personnel and role players, which in effect is detrimental to the industry and its means to compete locally and internationally. The research starts off by establishing why youth around the country are not interested in pursuing a career in the CI. Thereafter a proposal was made to utilise youth development programmes (YDPs) in the Western Cape Province, as a key driver to establish the above mentioned interest. However, YDPs were questioned in terms of their general implementation capacity. In addition they were also questioned in terms of their capacity to raise construction industry interest among youth. A survey of literature was followed by an empirical study, which generated primary data. A survey was initially conducted among various youth members. Thereafter interviews were conducted with youth leaders in the province. The findings indicate that there is a youth development strategy (YDS) as well as YDPs in place. However it should be noted that these YDSs and YDPs are not adequately implemented, which in essence affects the general development of youth in the region, but more importantly to this research study, contributes to the lack of CI interest among the youth. In order to increase CI interest among the surrounding youth it is empirical that community leaders as well as stakeholders utilise and implement the YDSs and YDPs set out by local, provincial and national government.

Keywords: Construction Industry, Development Programmes, Employment, South Africa

Introduction

According to Makhene and Thwala (2011), there seems to be a lack of image and well- defined career path in the South African construction industry. Tucker, Bennett and Eickmann (2001) mentions that in a survey of high school students conducted by the national business employment weekly, the career ‗Construction Worker‘ came in as number 247 out of a possible 250 as an attractive career option. Makhene and Thwala, (2011) however confers that today‘s youth view construction work as unappetising work and unattractive for a variety of reasons:  Not limited to being dirty;  Physically challenging;  Moving around the country to where the projects are, and  Often dangerous.

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Based on the factors referred by Makhene and Thwala, (2011), the youths pursue other careers, and these contribute to the current shortages of skilled workers inflow into the construction industry (Makhene and Thwala, 2011).

To date, several solutions have been proposed to alleviate the problem of skilled-worker supply and shortages in the construction industry, these include increased wages and other incentives: such as guaranteed overtime and implementation of training incentives, in addition to the employment of foreign labour, outsourcing construction work to foreign sources and the reduction of demand through automotive and technology (Pappas, 2004). However, not much has been done to attract the interest of youths in the South African construction industry (Makhene and Thwala, 2011: 115). It is this regard that YDPs need to serve as the key driver, to develop and enhance the youths‘ interest on CI.

Literature Review

Youth Development

Sogwagwa (2010) is of the opinion that, the concept of ―youth development‖ often appears ill-defined and messy for research purposes. Sogwagwa (2010) mentions that there is inadequate clarity on youth development as a phenomenon. However, in Table 1, various researchers have attempted to define youth development.

Table 1: Various Researchers‘ Definition of Youth Development as a Concept Youth development definition Source Youth development is an evolutionary progression in which all young people are Pittman (1993: 3) engaged in attempting to build skills, competencies, to meet their social needs and for the development of the community. Youth development is a development method which focuses on skills development. National Youth Development Agency (2013: 2) Youth development is an intentional comprehensive approach that provides space, Tshabalala-Msimang opportunities and support for young people to maximise their individual and collective (2008: 11) creative energies for personal development as well as development of the broader society of which they are an integral part. Youth development is a process by which youth develop the personal, social, academic Youth Work Central and citizenship competencies necessary for adolescence and adult life based on their (2014: 1) capacities, strengths and formative needs.

Youth Work Central (2014) postulates that youth development is both a philosophy and an approach. As a philosophy, youth development emphasizes the importance of young people‘s personal development and their contributions to their communities. However, youth development as an approach is an effective method for supporting young people in order for them to achieve their desired outcomes. This approach can be integrated into any kind of service or YDP which should:  Engage youth as resources, not simply recipients of services;  Focus on strengthening youth, not attempting to ―fix‖ them;  Recognise that preventing problems does not by itself promote development, and  Ensure that youth are included as a part of the planning and decision-making processes. The Western Cape Government (WCG) (2013a) is of the opinion that the above mentioned approach is supported by a conceptual framework which allows for the graphical understanding of the concept of youth development. This conceptual framework is illustrated in Figure 1.

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Figure 1: A conceptual framework for understanding youth development (Source: WCG, 2013a: 13)

Youth Development Strategy and Programmes in the Western Cape Province

WCG (2013a) opines that the youth is the lifeblood of the province. It is in this regard that the WCG (2013a) wants, to ensure that by the age of 25, majority of the Western Cape‘s youth will possess the tools needed to take advantage of the opportunities which surround them, and will be equipped to lead a life which they would be able to value. The purpose therefore of the YDS, is to create continuous support, opportunities and services for all young people in order for them to better engage with their environment and successfully transition into responsible, independent, and stable adults (WCG, 2013a). The YDS therefore, focuses on young people in the ‗pre-youth‘ phase between the ages of 10 and 14 years and the ‗youth‘ phase between 15 and 24 (WCG, 2013b). According to WCG (2013b: 13), the YDS is based on five pillars, which is supported by a common goal, various programmes per pillar as well as, various objectives per pillar (Figure 2).

Figure 2: YDS and YDP model (Source: WCG, 2013a: 3)

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Based on Figure 2, it is evident that the YDS as well as its YDPs are well documented. In addition, when looking at the third column of the figure, namely: Economic Opportunities, it is evident that the YDPs under this column cater for youth in terms of entering and building links with regards to the job market. However, according to Van Rensberg (2014) and Webster (2014), the question is: Are the programmes which are shown under this column implemented? If ‗Yes‘, do the programmes create possible links between developing youth and the CI?

Research Methodology

The mixed method used open-ended questionnaire surveys and interviews as research tools. By utilising open-ended questionnaire surveys and interviews as research tools for this study, the researcher was able to identify subtle nuances and avoid inducing responses, which may occur when using predominantly close-ended questionnaires (Greenfield, 2002).

Questionnaire administration

An initial questionnaire survey was administered among youth in the Western Cape to investigate if they had ever attended YDPs and if ‘Yes‘, to further investigate if they were exposed to any form of career guidance which specifically aligns itself towards the construction industry. The data for the survey were collected from 75 youth members randomly, within various youth groups in the province. The semi-structured questionnaire had six questions, which pertain to specific YDP elements. A mix of closed and open–ended questions was utilised. The administration of the questionnaire was based on a purposive sample. A total of 75 questionnaires were administered of which 60 were useable, which equates to an 80% response rate.

Interviews

Ten YDP facilitators were interviewed in the study. The first section of the interview scrutinised what programmes are currently being delivered within the various areas of the Western Cape. The second section of the interview dealt with determining the opinions of the YDP facilitator with regards to the YDS and YDPs in terms of their implementation. The main objective of the interview was to determine the role YDPs could play in terms of developing construction industry interests among the surrounding youth. A combination of semi-structured and unstructured interview methods were employed to enable maximum input from the interviewees while allowing data to be collected uniformly (Bloor and Wood, 2006). The interviews enabled the researcher the opportunity to develop and analyse the parts of the project that needed to be considered in a more detailed way. In the first part of the semi-structured interview, the interviewer went through a set of questions (pro-forma) through which the necessary data were collected. During this process, the interviewee gained a better understanding of the research undertaken and developed a rapport / trust which was essential for the second part of the interview (Hesse-Biber and Leavy, 2006). During the second phase, the interviews were unstructured, thus catering for an in-depth discussion over an area, which during the first phase was identified as of additional value to the research. It should however be noted that the interview participants were also purposively selected.

Data collection challenges

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It should be noted that there were some challenges with regards to the questionnaire survey. This was due to minor interpretation issues, which were made evident by certain respondents. This dilemma did not pose a real threat to the research study as questions were clarified and eventually answered. However, a small delay in terms of the data collection was observed. The interviews had no challenges as questions were asked and answered uniformly.

Findings and Discussion

Questionnaires In response to question one in Table 2, 7% of the respondents said that they were aware who the youth leader is in their area, 93% were not aware with regards to this question. In terms of attending YDPs, 35% of the respondents concurred that they have attended YDPs in their respective areas; however 65% said they have never attended any. For the 35% who have stipulated that they have attended YDPs in their areas, a third question was posed as to whether they have received any form of career advice during the YDPs, 60% answered ―Yes‖ and 40% answered ―No‖. Ones again for the 60% who have stipulated that they have received career advice during YDPs, a fourth question was posed as to whether the construction industry as a career path has ever been discussed as part of a career advice session during the YDPs which they have attended, 18% answered ―Yes‖ and 82% answered ―No‖. The last question asked respondents to indicate on a list of twenty career path options, which career path interests them most. Please note, this data is interpreted from Table 3. From Table 3 it is tabulated that 20% of the respondents chose ―Medical Doctor‖ which was the highest ranked career option out of the options provided. 18% of the respondents chose ―Construction Worker‖ which ranked second; 10% chose ―Accountant‖ which ranked third; and 8% chose ―Traffic Officer‖ and ―Pilot‖ which ranked fourth.

Table 2: Summary of Responses to the Questionnaire Survey Questions Question Response (%) Yes No

1.1 Are you familiar with who the youth leader is in your area? 7 93 1.2 Have you ever attended a youth development programme (YDP) in your 65 35 area? 1.3 Have you ever been exposed to any form of career advice at the time you attended the YDP? Please note, only attempt to answer this question, if you 60 40 answered ‗Yes‘ in Question 1.3. 1.4 Has the ―construction industry‖ as a career path been discussed as part of a career advice topic within the YDP? Please note, only attempt to answer this 18 82 question, if you answered ‗Yes‘ in Question 1.4

Interview responses and findings The majority of the YDP facilitators that were interviewed stipulated that no formal YDPs are currently implemented. However, informal workshops include:  Soup kitchens;  Tuberculoses workshops;  Teenage pregnancy workshops;  Human Immunodeficiency Virus (HIV) workshops, and  Generic motivational workshops.

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The reason for these informal workshops is that national, provincial as well as local government all have YDSs and YDPs in place, such as the one represented in Figure 1. These YDSs and YDPs represent the formal programmes which need to be driven down to the surrounding communities, by the ruling counsellors. However, to the majority of the YDP facilitators, this action is not taking place. Therefore, the overall opinion among YDP facilitators with regards to YDS and YDPs, is that they exist on paper but are non-existent in terms of implementation. When asked about the role YDPs could play in terms of developing construction industry interest among youth, many of the YDP facilitators were pessimistic in their response. The YDP facilitators were of the opinion that if major challenges already exist with regards to getting national, provincial as well as local YDS and YDPs implemented physically, how long would it take for other ideas such as ―developing construction interest among youth‖ to be heard, documented and implemented formally?

Table 3: Summary of Responses to the Questionnaire Survey Questions Career Path Response Rank (%) 1.5.1 Accountant 10 3 1.5.2 Human Resource Officer 3 7 1.5.3 Lawyer 3 7 1.5.4 Policeman 3 7 1.5.5 Construction Worker 18 2 1.5.6 Medical Doctor 20 1 1.5.7 Professional Nurse 2 8 1.5.8 Fireman 2 8 1.5.9 Traffic Officer 8 4 1.5.10 Banking/Financial Consultant 5 6 1.5.11 Pilot 8 4 1.5.12 Military Worker 0 9 1.5.13 IT Technician 5 6 1.5.14 Physiotherapist 0 9 1.5.15 Dentist 0 9 1.5.16 Pharmacist 3 7 1.5.17 Teacher 7 5 1.5.18 Preacher 0 9 1.5.19 Sports Psychologist 3 7 1.5.20 Chef 0 9

However the YDP facilitators were optimistic of the fact that they would employ the idea into their informal programmes which are currently being implemented. In addition, many YDP facilitators were of the opinion that through their informal programmes, youth are continuously being developed, with or without national, provincial or local assistance. The general overview of the YDP facilitators in the various areas of the Western Cape Province was that YDS and YDPs has the right model on paper to firstly, achieve proper youth development and secondly, has the right structure to facilitate the development of construction industry interest among the surrounding youth.

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Conclusion and Further Research

This paper establishes at the beginning, the key reasons why youth around the country are not interested in pursuing a career in the CI industry. Thereafter a proposal was made to utilise YDPs in the Western Cape Province as a key driver to establish the above mentioned interest. However, YDPs were questioned in terms of their general implementation capacity. In addition, YDPs were also questioned in terms of their capacity to raise construction interest among youth. The findings indicated that there is YDS as well as YDPs in place. It was however highlighted that these YDSs and YDPs are currently not adequately implemented, which in essence affects the general development of youth in the region, but more importantly to this research study, contributes to the lack of CI interest among the youth.

In summary, in order to enhance construction industry career interest among the youth, it is empirical that community leaders as well as stakeholders effectively utilise and implement the YDSs and YDPs, set out by local, provincial and national government. It should be noted that the research study reported on is in its initial phase and the findings are best described as ‗exploratory‘ as future studies should realise more conclusive results.

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Western Cape Government. (2013a), Western Cape Youth Development Strategy-2013. Western Cape, South Africa: Western Cape Government. Western Cape Government. (2013b), A Draft Youth Development Strategy for the Western Cape Department of Social Development: Youth of the Western Cape Meeting the Challenges of the 21st century. Western Cape, South Africa: Western Cape Government. Youth Work Central. (2014), Youth Development Definition. [Online] Available at: http: //www. Youthworkcentral.org/. [Accessed 1 September 2014].

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An architectural model for a healthier and safer construction industry in South Africa Craig Goldswain1 and John Smallwood2 1Department of Construction Management and Quantity Surveying, Walter Sisulu University, [email protected] 2Department of Construction Management, Nelson Mandela Metropolitan University, [email protected]

Abstract: Insufficient attention is given to construction health and safety (H&S), inclusive of ergonomics, by architectural designers despite evidence that construction accidents can be reduced by up to 50% through safer design. This paper reports on a recently developed architectural design model aimed at reducing the rate of accidents in the construction industry of South Africa. Four provisional studies incorporating qualitative and quantitative techniques were undertaken in the Eastern Cape Province, involving architectural designers registered with the South African Council for the Architectural Profession (SACAP). These produced nine structured questions for use in the main study located within the action research (AR) paradigm utilising focus group (FG) sessions to petition rich qualitative data from participants registered with the SACAP. The data was synthesised with literature and the provisional studies, and yielded a provisional model which was later validated and refined. The final model incorporated a core model within a greater process model and use thereof relies on appropriate knowledge of architectural designers. While the entire model is divulged here, only the development of the core model is discussed due to space constraints. It is recommended that tertiary architectural educators and continuous professional development (CPD) trainers use the model to develop appropriate education and training programmes.

Keywords: Architectural design model, Construction health & safety, ergonomics

Introduction

This paper draws on a recent PhD (Construction Management) study, which realised a model to enhance architectural design in terms of designing for construction H&S. The traditional measures of project success, being cost, quality, and schedule no longer suffice, and a lack of attention to construction H&S ultimately increases project costs (Schneider, 2006; Smallwood, 2006a). Despite the expectations of the Construction Regulations (Republic of South Africa, 2003; 2014), architectural designers inadequately practice safer design. The out-dated report of 1999 stemming from the Compensation for Occupational Injuries and Diseases (COID) Act includes 24 industries in South Africa and places the construction industry ninth in terms of accident frequency, fifth in terms of accident severity, and third in terms of accident fatalities, and demonstrates 14 418 medical aid injuries, 4 587 temporary disablements, 315 permanent disablements, and 137 fatalities in a single year. While Behm (2006) suggests that up to one third of the hazards leading to accidents could have been mitigated through safer design, the HSE (2003) indicates that up to half of the instances studied could have been mitigated through alternative design. The aim of the PhD study 150 was to realise a paradigm shift in architectural design relative to construction H&S, while the objectives sought to: conduct a review of relevant literature, comprehend the worth of relevant extant models and lists of remedies; consider the relevance of the above-mentioned within the context of South Africa; develop a model which would encourage architectural designers in South Africa to engage in designing for construction H&S, and validate the model through SACAP registered architectural designers. The research intertwined literature with four provisional studies undertaken in the Eastern Cape Province of South Africa. These served to provide local insight, and generated nine structured questions for the main study, which was located in the action research (AR) paradigm using focus groups (FGs). Synthesis of the data with literature and the provisional studies gave rise to a provisional model comprising six model components with sub-components. The provisional model was validated and refined and simultaneously tested the research hypotheses by means of questionnaires directed at the FG participants.

Construction health, safety, and ergonomics

Construction accidents

While ‗proximal factors‘ may occur within the site environment, ‗distal factors‘ such as design, choice of material and equipment, and the situation in which they are used can lead to a range of ‗active failures‘ (Haslam et al., 2005; HSE, 2003). Relative to SA, the cidb (2009) reports the dominating causes of injuries as struck by (44%), falls onto different levels (14%), and striking against (10%). The dominating causes of fatalities were MVAs (47%), struck by (17%) and falls on to different levels (17%). Penetrating wounds (30%) and superficial wounds (31%) predominated in terms of the nature of injuries sustained. Multiple injuries caused 47% of fatalities, while injuries to hands (24%), head and neck (19%), and legs (16%) were common anatomic regions involved. In terms of agency, automobiles (10%) and hand tools (6%) dominated as causes of injuries. Internationally and locally, the main causes of accidents, in order, are ‗falls onto different levels‘, ‗motor vehicle accidents‘ (MVAs), ‗struck by‘, ‗inhalation, absorption and ingestion‘, and ‗work-related musculoskeletal disorders (WMSDs) or body stressing‘ (cidb, 2009). Hazardous chemical substances (HCSs) can enter the body through inhalation, absorption, and ingestion. Inhalation of airborne contaminants such as dusts, fumes, vapours and gasses can result in eye irritation, respiratory tract problems and damage to organs. Fine dust particles can reach the lungs leading to pneumoconiosis, asbestosis, or lung cancers. Inhalation of solvents can result in respiratory problems and central nervous system damage, while complex fumes given off by welding can lead to metal-fume fever. Absorption of HCSs such as solvents through the skin can cause dermatitis, while working with concrete can cause allergic contact dermatitis. Handling of bitumen and similar products can lead to dermatitis and acne related skin disease. Ingestion refers to the swallowing of HCSs erroneously or through carelessness such as eating without washing of hands. MVAs occurring on construction sites can be mitigated through improved design of access routes and warning signs, and by creating more awareness. ‗Falls onto different levels‘ are caused by tripping, falling from scaffolding or temporary works, falling from ladders, equipment or platforms, falling into excavations, falling off of buildings and falling through openings. Many of these falls can be attributed to design and scheduling, and a lack of prevention efforts. ‗Struck by‘ accidents are often caused by falling materials, plant, equipment, or structures. Other risks include exposure to electrical hazards,

151 contact with machine components and vehicles, explosions and fire, excavation collapses, and working in restrained spaces (Smallwood and Deacon, 2001; Behm, 2006; HSE, 2003; Bureau of Labour Statistics – US Department of Labour, 2007 & 2008; cidb, 2009; Deacon and Smallwood, 2010; Weitz and Luxenberg, 2010; HSE 2010). The Construction Regulations (Republic of South Africa, 2014) legalise designers to ―… take cognisance of ergonomic design principles in order to minimise ergonomic related hazards in all phases of the life cycle of a structure.‖ Ergonomic problems include repetitive movements, bending or twisting, climbing, working with heavy or inconveniently sized materials, working in awkward or cramped positions, reaching overhead, using vibrating equipment, noise, working in hot, humid, wet or cold conditions, retaining specific positions for extended periods, and working while injured (WorkCover NSW, 2001; Smallwood, 2006b; cidb, 2009; Deacon and Smallwood, 2010; Safe Work Australia, 2010; HSE 2010).

Engaging healthier and safer design

Hetherington (1995) notes that designers ―… will only be expected to take into account those risks which can reasonably be foreseen at the time at which the design was prepared‖ and should focus on ―… avoiding and combating H&S risks inherent in the construction process.‖ He promotes H&S interventions during the ‗concept stage‘, ‗design evolution‘ and the ‗detailed specifications‘, and proposes that designers ensure that hazards and risk information is provided with their designs. Technologies chosen by designers have a direct influence on construction performance and strategic objectives (Chang and Lee, 2004). It is important that stakeholders recognise the design and construction relationship, and decisions regarding the optimum method and sequence of operations should be included in the design process and documented for distribution (Hendrickson, 2008). Hazard identification and risk assessments (HIRAs) during the design process are fundamental in order to implement appropriate design. In concurring, Gangolells et al. (2010) identifies construction processes such as earthworks, foundations, and structures, among others, where HIRAs should be undertaken toward risk mitigation. Evaluating risks through considering the probability of occurrence and the severity of the consequences is paramount. Exposure in the form of time and quantity of work also exacerbates risks (Gangolells et al., 2010). Carter and Smith (2006) focus on accident causation models and how hazards lead to accidents. They promote HIRAs as a means of risk management, but note that unidentified hazards are of concern. Method statements are a means of mitigation and must comprise adequate description, location, sequence, resources, and HIRAs. They also note ‗knowledge and information barriers‘ constituting a lack of coherent knowledge, and ‗process and procedure barriers‘ constituting a lack of a standard approach and task structure relating to hazards.

Research Methodology

Provisional studies provide valuable insights toward the success of main studies (van Teijlingen and Hundly, 2001). The PhD study used four provisional studies in order to progressively build data within the context of SA. The target population and sample selection comprised architectural designers registered with the SACAP and working in the Eastern Cape region of SA. These included: a quantitative survey to establish the perceptions of architectural designers relative to mitigating construction H&S risks in which a survey comprising 15 appropriate statements and an open ended question was

152 distributed to 102 architectural designers, and a total of 18 responses (17.5%) were received; a qualitative study comprising 13 semi-structured interview questions was administered to 10 willing participants following 60 phone calls (16,7%) in order to determine what would encourage architectural designers to mitigate risk through design; a quantitative study sought to establish a design model framework toward improved construction H&S. A variety of approaches such as direct statements, three cross- reference matrix tables, and open ended opportunities were presented.

The survey was administered to 76 potential participants and 12 responses (15.8%) were received, and a quantitative study sought to identify key inputs which could feed into the model framework. 20 statements, three semi-structured questions, and an open ended question was administered among 73 architectural designers, and a total of 15 responses (20.5%) were received. The provisional studies facilitated the development of nine structured questions for the main study, which made use of FGs within the AR paradigm in order to solicit rich qualitative data from architectural designers registered with the SACAP. FGs were selected due to the observation that architectural designers lacked knowledge relative to the topic, and richer data could be gathered from FG participants who demonstrated more commitment. The process involved planning, which included: the number of FGs; the population; the size of the randomly selected sample, the choice of venues, and distribution of invitations. The first FG held in the Buffalo City Metropolitan Municipality region attracted eight participants, as planned, however only four participants were available for the second FG session in the Nelson Mandela Metropolitan Municipality region.

Anonymity of the participants was guaranteed and consent forms were signed. The nine structured questions were posed to both FGs. The events were audio-video recorded. The 12 participants included seven Professional Architects (58.3%), two Professional Senior Architectural Technologists (16.7%), and three Professional Architectural Technologists (25%), with the average age of 45 years and experience averaging 20.75 years. Unfortunately there was only one female (8.3%) participant. The recorded data was transcribed. The synthesis of the FG data with literature and the provisional study data gave rise to a provisional model. Carter and Smith (2006) advise that ―… validation is a crucial aspect and a model cannot be considered complete without it.‖ A questionnaire with appropriate statements was developed and disseminated to the FG participants, with respondents expected to indicate on a ‗Likert‘ type scale of 1 (totally disagree) to 5 (totally agree) the extent to which they concur, and each was underpinned with an open-ended question. The research hypotheses were simultaneously tested with statements linking the model to the research hypotheses. Likert type rating scales were once again applied.

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KEY INPUTS Relevant literature; Causes of accidents; Information on hazards and risks; International approaches and models; Design recommendations; Recent studies and on-going research and development

SACAP architectural work stages (1 – 6) The Goldswain Core Model

Design opportunity window: Design knowledge window:

– Design options Construction processes Design selection Construction programming H&S reviews Contextual H&S

Sign-off or revisit 1 Causes of Accidents H&S checklists

Hazard Identification and k loop H&S data records Risk Assessments (HIRAs) Sign-off or revisit 2 Project type and complexity

Changes to design Design recommendations

Application of the NBR (Parts A A the of (Parts NBR Application

Sign-off or revisit 3 Lifecycles of buildings

Engaging people Education and training Continuous information feedbac Encouragement Awareness MECHANISMS Upstream design ownership Tertiary architectural

Multi-stakeholder approach education CPD programmes KEY OUTPUTS

Improved design for Improved H&S Improved H&S Improved H&S construction H&S information on information in residual risk plans specifications information

DISSEMINATION Clients; authorities; consultants, tenderers; contractors, and subcontractors Figure 1: The Goldswain Process Model for safer architectural design in South Africa

Findings and Discussion The transcribed data was grouped into themes and then into the model components which emerged. While the entire model derived from the authors PhD research is included overleaf, only the development of the core model is included in the ‗findings and discussion‘ which follows.

The Goldswain Core Model

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The core model comprises a model framework, a flexible design process within the framework, and divulges a range of knowledge aspects, which architectural designers require in order to engage healthier and safer design.

The third provisional study sought to identify documentation familiar to architectural designers, which could constitute a ‗model framework‘. Data favoured the application of the National Building Regulations (NBR), whilst the matrix method of questioning incorporated the SACAP architectural work stages. Later the importance of the SACAP architectural work stages become evident and was interrogated in the fourth provisional study. This reaffirmed the NBR notion with a mean score (MS) of 4.00, while the SACAP architectural work stages dominated with a MS of 4.20 against the average score of 3.00. These offset Work Breakdown Structures (WBS) with a MS of 2.33, the Preambles for Construction Trades MS of 2.47, and the Bills of Quantities with a MS of 2.5. The range of construction processes identified by Gangolells et al. (2010) such as earthworks, foundations, and structures, among others, closely resemble the parts of the NBR. FG data demonstrates the appropriateness of the NBR: ―When you look at the NBR - if you just look at the index it‘ll cover the points‖. Relevant to the SACAP architectural stages of work, data considers checking the NBR items: ―At each work stage … you are combining your processes with your items as well‖. A matrix framework comprising the SACAP architectural work stages as the X-axis and the parts of the NBR as the Y-axis was adopted. The fourth provisional study included the statement of ‗A guiding model should include a process which architectural designers can follow in order to design for construction health, safety, and ergonomics‘. The responses yielded a MS of 3.60, above the average of 3.00, thus indicating possible need for inclusion of a design process. Given the opportunity to explore healthier, safer design, this was termed the ‗design opportunity window‘. The CDM Regulations (2007) and the South African Construction Regulations (Republic of South Africa, 2003 & 2014) place expectancy on designers to engage healthier safer design processes, while the United Kingdom‘s (UKs) Gateway model (HSE, 2004a) and the Australian CHAIR model (WorkCover NSW, 2001) incorporate means for designers to review their work as the design progresses. The second provisional study interrogated the inclusion of construction H&S into the design process. Data proposes that ―‗It should be part of integral thinking ... part of design and documentation‖, and ―The fundamentals of health and safety should be discussed … and should be monitored and recorded.‖ The findings demonstrated a cyclic design process, ultimately weighing up ‗design options‘ and leading to ‗design selection‘. The data includes: ―It is backwards and forwards processes until you get to the final. You can‘t say I have now finished Stage 1 … the ideal of course would be to say I am finished with work Stage 1, work Stage 2, now it is the final stage of development …‖ The UK‘s Gateway model includes H&S reviews at specific ‗Gateways‘ throughout the project phases (HSE, 2004a). The Australian CHAIR model also includes the ―... opportunity to sit down, pause and reflect on possible problems‖ (WorkCover NSW, 2001). The third provisional study included the statement: ‗It would be beneficial to have an approach or model which includes a mechanism for interim assessments during the various stages of the design process‘, which achieved a MS of 3.50, above the midpoint of 3.00, thus indicating likely inclusion of H&S reviews. FG data supports this in that ―… you‘ve got to have a health and safety review.‖ The Gateway model (HSE, 2004a) offers a roadmap or checklist which designers can use. The Australian CHAIR model (WorkCover NSW, 2001) makes use of ‗guidewords‘, which mimics a checklist. The fourth provisional study included the statement: ‗A guiding model should include checklists and allow

155 opportunity for design notes in order to assist the process‘, which realised a MS of 4.07, well above the midpoint of 3.00. FG data includes: ―I am thinking about a checklist … people specialising in SANS 204 (NBR) - if they can check your drawings for example … to see if you have the finer details right.‖ Behms‘ (2006) research into accident reports and the HSEs‘ (2003) in depth study of 100 construction accidents would be impossible without accurate data records. Data from the second provisional study recognised that ―The fundamentals of H&S should be discussed … and should be monitored and recorded‖, and FG data includes: ―You may be making a choice that has a higher risk, because of other factors. It needs to be recorded why and then how you mitigate the risk.‖ Hendrickson (2008) claims that ‗changes to design‘ during construction frequently occur, which alter the course of construction and exacerbate risk. Changes to design, often referred to as Variation Orders (VOs), were not considered within the provisional studies, however these are common. The statement of: ‗A guiding model should include a process which architectural designers can follow in order to design for construction health, safety, and ergonomics‘ was provided in the fourth provisional study, which realised a MS of 3.60, above the midpoint of 3.00, and theoretically incorporates VOs. FG data includes: ―I think for the majority, the bulk of it is Ok. If a V.O. comes along we assess it as part of the overall design which goes back to the beginning.‖ The HSE (2004a) expects ‗sign-off‘ after each design review, before progressing. Sign-off was omitted from the provisional studies however such literature led to probing this in the FG scenario. FG data included: ―The responsible person can sign it off‖, and ―The problem with signing off is you are signing off your documentation or your process, you can‘t sign off what the contractor is going to do‖. When to ‗sign-off‘ was not questioned, but the cyclic nature of design offers flexible opportunities. These are included in the ‗design opportunity window‘, which includes: Design options; design selection; H&S reviews; sign-off or revisit 1; H&S checklists; H&S data records; sign-off or revisit 2; changes to design, and sign-off or revisit 3.

In order to engage the ‗design opportunity window‘, designers would require an adequate knowledge of healthier, safer design. The question arises as to what specific knowledge, in order to include it in the so called ‗design knowledge window‘. FG data included: ―If the designer can refine the design and say there might be better processes … to achieve the goal, one needs the knowledge.‖ Chang and Lee (2004) insist that knowledge of construction processes linked to appropriate technology is needed, while Hendrickson (2008) integrates design and construction as a system. The fourth provisional study data included: ―Designers and architectural practitioners should be actively exposed to the physical construction process of projects to ensure a practical understanding of the erection and construction process and constraints‖. FG data included: ―I think everyone needs to understand the construction process. We are sitting at the moment with a situation, we have a huge part of the industry that doesn‘t - they have no idea how that is going to turn into a building. You can‘t design and design safely if you don‘t understand the construction process.‖ Lester (2007) and Hendrickson (2008) proffer fundamental scheduling tools to optimise sequencing and timing of activities. The HSE (2004b) includes influence networks where specific influences have causal implications. The second provisional study brought this to the fore in that ―some sort of methodology is crucial ... a method or awareness of the building programme‖. FG data included: ―… that way we can probably say listen the guy is not going to lay the carpet until such time as the walls are painted …‖, and that ―You should have a program.‖ An understanding of the issues surrounding healthier, safer design is essential. Literature provides an adequate backdrop for this, and architectural designers

156 should be encouraged to improve their contextual understanding. FG data included: ―I think first off, a full understanding of the relevant information that is already there‖; and ―They need to have a basic design and construction health and safety background‖. The main causes of accidents were identified within the literature review. The fourth provisional study included the statement: ‗Architectural designers would need to understand the causes of construction accidents in order to design for construction health, safety, and ergonomics‘. This achieved a MS of 4.07, well above the midpoint score of 3.00. While FG data considers causes of accidents as ‗risk‘, it includes: ―Designing at a place with high wind speeds and you have a façade system, so how do you get that up … I think it is identification of risks … and I have to have it for that so it gives your health and safety risks.‖ Relative to HIRAs, Carter and Smith (2006) offer concern where hazards and risks are not identified. The first provisional study established that architectural designers in SA do not adequately conduct HIRAs, and the statement: ‗Architectural designers would need to identify hazards and undertake risk assessments in order to design for construction health, safety, and ergonomics‘ was included in the fourth provisional study. The response achieved a MS of 3.53, above the midpoint score of 3.00, and FG data included: ―… so there is an inherent risk of digging down trenches 3, 4, 5m down and say … we have to have personnel down below ground level. I think the professional should identify risks …‖, and if unresolved, ―They should come up with a mitigation plan with the constructor.‖ Numerous researchers proffer that ‗falls from height‘ contributes significantly to injuries and fatalities (Haslam et al., 2005; Bureau of Labour Statistics – US Department of Labour, 2008; cidb, 2009; Safe Work Australia, 2010, HSE, 2010b), while Gangolells et al. (2010) include consideration of single storey residential buildings. This portrays ‗project type and complexity‘ as important. The second provisional study findings include: ―… the design may be challenging and unconventional …‖, and that ―there is always a way to carry out works safely, but it is costly for unconventional projects‖. FG data notes that ―…there are more complicated buildings being built in the first world countries … I think the complexity high rise etc. has possibly got to do with the high mortality or injury here.‖ Behm (2006) advocates Gambatese, Mroszczyk, and Weinstein, and provides a range of ‗design recommendations‘. The fourth provisional study included the statement: ‗Consideration of existing design recommendations would prove beneficial to developing a guiding model suitable for use in the context of South Africa‘, which achieved a MS of 3.79, above the midpoint score of 3.00. FG data included: ―Probably yes - again one needs to look at what is the environment in which that design recommendation has been made against our environment.‖ The provisional studies did entertain ‗lifecycles of buildings‘, however Cameron et al. (2005) discussed the Gateway approach and identified ‗concept, feasibility, design, construction, and maintenance‘. WorkCover NSW (2001) makes reference to ‗construction, maintenance, repair and demolition‘. FG data includes: ―… look at the life cycle of the building not just the design and construct phase‖, and ―From concept to final demolition.‖ Thus, the ‗design knowledge window‘ includes: construction processes; construction programming; contextual H&S; causes of accidents; HIRAs; project type and complexity; design recommendations, and lifecycles of buildings.

Conclusion and Further Research

Toward a paradigm shift in architecture, the PhD study set out to develop a model which would assist architectural designers to incorporate construction H&S into the design process. The synthesis of literature, the four provisional studies, and the rich

157 qualitative data emanating from the FG sessions gave rise to a provisional model which was validated and refined while simultaneously testing the research hypotheses. Much of this could not be included here; however the development of the core model was included as the focus of this paper. The core model incorporates the six SACAP architectural work stages and the parts of the NBR as a matrix type model framework. Within this, the ‗design opportunity window‘ includes, design options, design selection, H&S reviews, H&S checklists, H&S data records, changes to design, and three integrated sign-off opportunities. The process is supported by the ‗design knowledge window‘ which includes construction processes, construction programming, contextual H&S, causes of accidents, HIRAs, project type and complexity, design recommendations, and lifecycles of buildings. The greater study implores architectural designers to take upstream design ownership and to involve a multitude of stakeholders in order to engage designing for a healthier and safer construction industry. Recommendation is made for key players such as academics at tertiary education institutions offering architectural programmes, and those involved in architectural CPD programmes to use the model as basis for further research, development and implementation of appropriate education and training programmes. References Behm, M. (2006) An Analysis of Construction Accidents from a Design Perspective [online]. Available from: http://www.elcosh.org/en/document/841/d000795/an- analysis-of-construction-accidents-from-a-design-perspective.html [Accessed 9 September 2010] Bureau of Labour Statistics – US Department of Labour (BLS). (2007) Fatal occupational injuries by occupation and event or exposure, All United States, 2007 [online]. Available from: http://www.bls.gov/iif/oshwc/cfoi/cftb0227.pdf [Accessed 20 April 2010] Bureau of Labour Statistics – US Department of Labour (BLS). (2008) Fatal occupational injuries by occupation and event or exposure, All United States, 2008 [online]. Available from: http://www.bls.gov/iif/oshwc/cfoi/cftb0236.pdf [Accessed 20 April 2010] CDM. (2007) The Construction (Design and Management) Regulations 2007 No. 320 [online]. Available from: http://www.opsi.gov.uk/si/si2007/uksi_20070320_en_1 [Accessed 05 March 2009] Cameron, I. Duff, A. and Hare, B. (2005) Achieving integration of Safety, Health, Environment and Quality Management in Construction Project Management by a Best Practice ―Gateway‖ model. 4th Triennial International Conference, Rethinking and Revitalizing Construction Safety, Health, Environment and Quality, 17 – 20 May 2005, Port Elizabeth: CREATE, pp. 323-331. Carter, G. and Smith, S. (2006) Safety Hazard Identification on Construction Projects. Journal of Construction Engineering and Management, February 2006, pp. 197- 205. Chang, A. and Lee, K. (2004) Nature of Construction Technology [online]. Available from: http://www.iglc2004.dk/_root/media/13087_081-chang-lee-final.pdf [Accessed 5 December 2013] Construction Industry Development Board (cidb). (2009) Construction Health and Safety in South Africa - Status & Recommendations, Pretoria, cidb. Deacon, C.H. (2003) The health status of construction workers (M Cur). University of Port Elizabeth.

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Deacon, C. and Smallwood, J.J. (2010). Ergonomics in construction: Where does it hurt? ergonomics SA, Vol. 22(2), pp. 49-65. Gangolells, M. Casals, M. Forcada, N. Roca, X. and Fuertes, A. (2010) Mitigating construction safety risks using prevention through design. Journal of Safety Research, Vol. 41, pp. 107-122. Haslam, R.A., Hide, S.A., Gibb, A.G.F., Gyi, D.E., Pavitt, T., Atkinson, S. and Duff, A.R. (2005) Contributing factors in construction accidents. Journal of Applied Ergonomics, Vol. 36, pp. 401-415. Hendrickson, C. (2008) Project Management for Construction: Fundamental Concepts for owners, Engineers, and Architects. Second edition, version 2.2. [online]. Available from: http://pmbook.ce.cmu.edu/index.html [Accessed 5 December 2012] Hetherington, T. (1995) Why involve design professionals in construction safety? Structural Survey, Vol. 13(1), pp. 5-6. Health and Safety Executive (HSE). (2003) Causal factors in construction accidents – Research Report 156. Suffolk: HSE Books. Health and Safety Executive (HSE). (2004a) Integrated gateways: planning out health and safety risk – Research Report 263. Suffolk: HSE Books. Health and Safety Executive (HSE). (2004b) Improving health and safety in construction. Phase 2 – Depth and breadth: Volume 6 – Generic model for health and safety in construction – Research Report 235. Berks: Bomel Ltd for HSE Books. Health and Safety Executive (HSE). (2010) Construction Statistics 2005/06(p) – falls down, trips up [online]. Available from: http://www.hse.gov.uk/construction/statistics.htm [Accessed 20 April 2010] Lester, A. (2007) Project Management, Planning and Control (Fifth Edition) [online]. Elsevier Ltd. Available from: http://www.sciencedirects.com [Accessed 13 December 2013] Republic of South Africa. (2003) Construction Regulations 2003 [online]. Available from: http//www.labour.gov.za/ [Accessed 16 July 2008] Republic of South Africa. (2014) Construction Regulations 2014, Government Regulation Gazette No. 10113, Pretoria, Government Printing Works. Safe Work Australia. (2010) Compendium of workers‘ compensation statistics Australia 2007-08, Canberra, Commonwealth of Australia. Schneider, S.P. (2006) The economics of health and safety in construction [online]. Labourers Health and Safety Fund of North America. Available from: http://www.lhsfna.org/files/construction_economics.pdf [Accessed 9 September 2008] Smallwood, J. and Deacon, C. (2001) Construction materials and processes: General Contractor (GC) health related perceptions [online]. COBRA 2001 conference papers. Available from: http://rics.org/site/download_feed.aspx?fileID=2319 [Accessed 10 November 2010] Smallwood, J.J. (2006a) The influence of architectural designers on health and safety (H&S) during construction, In: T.C. Haupt(ed) 3rd South African Construction Health and Safety Conference A Team approach to Construction Health and Safety, Cape Town, 7-8 May, Port Elizabeth, CREATE, pp. 29-46. Smallwood, J.J. (2006b) Ergonomics in Construction: South African Perspective. CIB W107 Construction in Developing Countries International Symposium ―Construction in Developing Economies: New Issues and Challenges‖, Santiago, 18-20 January, Rotterdam, CIB.

159 van Teijlingen, E.R. and Hundley, V. (2001) The importance of pilot studies [online]. Social Research Update, Issue 35, 2001, University of Surrey. Available from: file://localhost/C:/Documents%20and%20Settings/All%20Users/Documents/Resear ch/Website%20Info/The%20 [Accessed 4 August 2009] Weitz and Luxenberg, P.C. (2010) Construction Death Statistics, 2008 [online]. Available from http//www.weitzlux.com/construction-deaths_1937852.html [Accessed 19 April 2010] WorkCover NSW. (2001) CHAIR Safety in Design Tool, Suffolk, WorkCover NSW.

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Employers’ attitude towards health and safety (H&S) improvement in the construction industry Z Mustapha, CO Aigbavboa and WD Thwala Department of Construction Management and Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: The Occupational Health and Safety Act, 1993 provides legislative framework to enforce human behaviour towards safety compliance in the construction industry. This paper examines employers‘ attitude towards health and safety improvement. It further looked at types of motivation for safety measures, risk assessment methods and safety management systems. This study was conducted through the use of secondary data from journals, books and internet to achieve the objective for the study. The review of literature looked into details of the different views from different scholars about employer‘s attitude towards health and safety (H&S) improvement in the construction industry. The findings from the literature review showed that employers‘ attitude contribute to encourage employees‘ safety compliance to Occupational Health and Safety (OHS) improvement in the construction industry. It was also mentioned that the achievement of organisation safety goals are in the hands of the top management who lead the organisation and employees. The purpose of this academic paper was to justify the need to know the employers‘ attitude towards H&S improvement and further establish the types of motivation measures that will lead to safety measures.

Keywords: Construction, employers, health and safety, South Africa

Introduction

The construction industry plays an important role in improvement of countries‘ economic growth. Despite the contributions to economic growth, the construction industry has always been blamed for the high rates of accidents and fatalities. This issue has placed the construction industry among the industries with unreasonable rates of accidents, permanent and non-permanent disabilities and even fatalities. There are many evidences in representing construction industry as a hazardous and inconsistent industry. High rates of accidents and fatalities in this industry have placed it among hazardous industries (Hosseinian & Torghabeh, 2012). According to the South African Construction Industry Development Board (cidb) (in Smallwood, 2010), construction has the third highest fatality rate and the ninth highest permanent disability rate per 100 000 full-time equivalent workers out of twenty- three industries. Many building contractors are still implementing low levels of H&S standards in South Africa, Van Vuuren (Smallwood, 2010). Construction accidents lead to delay in project completion, increase the expenses and ruin the reputation and reliability of contractors ((Hosseinian & Torghabeh, 2012). Construction continues to contribute a disproportionate number of fatalities and injuries and there continues to be a high level of

161 non-compliance with the H&S Regulations in South Africa. Even though, significant efforts have been made by several agencies to improve H&S within the construction industry, overall construction H&S is not improving significantly (cidb, 2009). According to Michaels (2012) employer attitude toward H&S can be viewed as a bell curve. The most negligent, apathetic employers would be represented on the left side of the bell curve while the most attentive, proactive employers would appear on the right, with the bell curve rising in the centre to represent the majority of the employers who fall somewhere in the middle. Therefore, the challenge to American OSHA‘s objective is to move this curve. The bad ones improve, the mediocre ones get better and the good ones get to the best point. Michaels (2012) further asserted that implementing safety and health management systems and developing a culture of safety in workplaces can help shift that bell curve toward the side of conscientious, safety-focused employers. Che Hassan et al. (2007) asserted that this can be prevented if the relationship between the procedural instructions governing work and the way in which work is done is investigated. The outcome of such an investigation will give ample room for improvement towards behavioural safety compliance through strong effort to comply with safety requirements by both employers and employees. The Occupational Health and Safety (OHS) regulations enshrine discipline in the employees and serves as a strong team to give full support towards achievement of organization safety goal and help construction industry. It gives enough room for improvement due to understanding of the good behaviour. This paper presents an investigation into employers‘ attitude towards H&S improvement in the construction industry. It began with a discussion of improvement of H&S in the construction industry, effective communication, effective H&S training and education, and employers‘ behaviour. This is followed by the types of motivation for safety measures, risk assessment and safety management systems.

Literature Review

Human behaviour has been noted in literature to be a major contributing factor to construction accidents but good safety behaviour do reflects in good safety compliance. The important criteria required to change employees behaviour concerning effective handling of safety issues cannot be achieved without the interference of employers with a particular pattern of behaviours. A study conducted by Fernando et al. (2008) identifies workers characteristics and factors of safety compliance as follows: management commitment, employee involvement, safety communication, effective safety training and effective safety feedback. Abdullah et al. (2005) asserted that behaviour is influenced by two distinct factors: activators and consequences. Hence, the enforcement of safety behaviour factors play the crucial role to encourage safety compliance before the consequences occurred.

Improvement of Health and Safety in the Construction Industry It has been informed in literature that employers‘ attitude contributes to encourage employees‘ safety compliance to OSH improvement in the construction industry. It is the role of top management to actively lead the organization and employees towards achievement of organization safety goals, by showing that the organization is serious about safety. The commitment and support that will be given by the top management would significantly drive up the performance of safety as indicated by Jaselski et al. (Zin and Ismail, 2011). For instance, the management approach to safety generates as well as reinforces employee perceptions about what form of activity gets rewarded, supported and expected in a particular setting (Panthi et al., 2012). Fernando et al. 2008) asserted that the employers should demonstrate their commitment through strongly realization of safety compliance to safety and ensure that everyone in the organization is certain about their safety and health

162 responsibilities. Management commitment towards H&S at the workplace can change attitude of employees. The critical factor in understanding and explaining the work related behaviour of employees in organizations has been linked with organizational commitment (Bakshi et al., 2009). The safety attitude of top management that drives the safety management behaviour of an organization can be judged primarily by evaluating their approach towards providing strategic safety commitment and a supportive work environment (Panthi et al., 2012).

Effective Communication Effective communications is an essential consideration to safe and efficient workplace. Therefore, there is the need for effective communication in the construction industry because many construction accidents are found mainly caused by symptoms of safety non-compliance to safety requirements (Ismail, 2007). Communication can be achieved through visible behaviour, written communication of H&S policy statements and face to face discussions between employer and employee. In the visible behaviour, employer can communicate the importance of safety and health. Then, the employees soon recognize what employer regards as important and will adopt their own behaviour accordingly. Thus, through negative behaviour employer can undermines the safety and health culture of the organization (Zin & Ismail, 2011). While in the written communication of H&S policy statements, statements concerning H&S roles and responsibilities, performance standards and findings from risk assessments are made available to employees. Whereas, face to face discussions between employer and employee enable employees to make a personal contribution and helps them to feel involved in the safety and health of the organization (Zin & Ismail, 2011). Ideally employees should be able to talk to employers during safety inspection. The interaction and communication of management with workers in terms of their commitment, support and motivation can have a positive (or negative) influence on workers perceptions, attitudes, competence, and behaviours towards safety (Panthi et al., 2012). Cooper, (2010) is of the view that employees attitude can be shaped through the leadership skills exhibited by senior management. According to Ismail (2007), quality and consistency of leadership demonstrated by management as a role model for safety will enhance the achievement of the other safety management objectives.

Effective Health and Safety Training and Education Accident prevention can only take place through effective health and safety training. Hence, education and training programmes play a significant role in enhancement of safety in construction and it is important to increase safety awareness and change behaviour of employees (Ghani et al., 2010). Good relationship between employers and employees on matters such as safety talk and advice on safety matter is related to improve safety motivation and will encourage employees‘ safety behaviour (Che Hassan, 2007). Workers need to be aware of the hazards and risks at their workplace in order to encourage them to work in a healthy environment and safety manner (Smallwood, 2010) because lack of training is a barrier.

Employee Behaviour Both employers and employees have very similar perceptions of the respective responsibilities of each party for health and safety in the workplace. However, the employer has the knowledge that health and safety is a set of rules and regulations that relate directly to safety in the workplace to ensure the general wellbeing for employees (Elgood et al., 2004). One of the greatest determinants in workplace safety, especially as employees interact amid a host of varying safety issues is employee behaviour. Employee behaviour plays a significant

163 role in workplace safety and injury prevention (Schultz, 2004). Smallwood (2010, 240) in a research conducted on excavation health and safety (H&S): a South African perspective has indicated worker attitude as one of the factors leading to unsafe act of a worker. Attitude is a key to understanding employee behaviour and prevention of on-site-job injuries. It is mandatory for employer‘s to educate their employees on the possibility of workplace injury before any safety programme should be instituted (Schultz, 2004). The organization must undergo a culture change from the top and filter its way down to all employees for any sort of attitudinal change to occur to every employees (Schultz, 2004). Central to this culture is the feeling that safety is a top priority and nothing else. Employee attitude also relates to culture, and can be linked to ignorance (Smallwood, 2010). If this is checked it will lead to improvement towards health and safety in the construction industry.

Types of Motivation for Safety Measures According to Teo et al. (2005b), incentives can be used to motivate the ones who follow the safety rules on construction sites.‖ Motivational tools including rewards and incentives influence to fostering safe work behaviour in construction sites (Teo et al., 2005a). Each of these tools contains various sub tools as shown in below:

 Positive Reinforcement: Monetary reward/bonus, job promotion, certificate of recognition, rewards in kind (overseas trips), personal recognition;  Negative Reinforcement: Close and strict supervision;  Extinction: Termination of service, reporting to authorities, and  Punishments: Imposing fines, suspension from work, demotion.

Teo et al. (2005) finds that close and strict supervision among negative reinforcement is the most effective, monetary rewards are the second, and imposing fines and suspension from work are the third most effective way to foster safe work behaviour. Four intervention strategies proposed by (Teo et al., 2005) can be used by managers to either encourage or discourage certain behaviours of workers (i.e., positive reinforcement, negative reinforcement, punishment and extinction.

Positive reinforcement: positive reinforcement provides the worker with reward consequence for performing the desired behaviour. According to this theory, to motivate workers to perform their jobs in a safe manner, contractors should offer incentives, praise, monetary rewards, and promotions on the job.

Negative reinforcement: negative or avoidance reinforcement encourages workers to perform the desired behaviour in order to avoid a negative consequence. Therefore, to motivate workers to perform their jobs in a safe manner, contractors may use criticism or threat of losing job and once the workers work in a safe manner, they stop receiving the undesired outcome.

Punishment: punishment reinforcement gives the worker a negative consequence so that the worker can stop performing an undesirable behaviour. With regard to safety of construction site, punishments may include pay cuts, temporary suspensions, demotions and firing.

Extinction: extinction reinforcement withholds positive consequences to get the worker to stop performing the undesirable behaviour. At the construction site, a worker who constantly

164 flouts safety regulations may have his or her appointment terminated to curtail the unsafe practice.

Risk Assessment and Safety System Different sites have a different nature of task and function of safety management system such as; safety plan must be specific to potential hazard perceived to be occurred on site activities. Risk assessments play significant role in on-going management activities and their function to meet legislative requirements relevant to site activities. Weaver (2008) defined risk as an uncertain event or condition that if it occurs, has a positive or negative effect on a project‘s objective. This should include proper risk assessments, reporting systems, safety plan and clear delegation of responsibilities, provide adequate resources and ensure that full information is disseminated to workers and other persons exposed to risks. The involvement of a health and safety officer in any of the risk assessment is highly empowered to change or improve the company‘s safety performance. The health and safety officer will also ensure the constant and effective use of Personal Protective Equipment (PPE) provided by the employer. ―According to the Canadian Centre for Occupational Health and Safety (CCOHS, 2009) a risk assessment is a thorough look at workplace to identify situations, processes, etc. that may cause harm to people.‖ Evaluation of the risk is carried out and a decision taken on measures to be taken to effectively prevent or control the harm from happening. The steps are as follows: identification of hazards, analyzing or evaluating the risk associated with that hazard and determining appropriate ways to eliminate or control the hazard (CCOHS, 2009). Under the management of health and safety (H&S) at Work Regulations 1999, the occupational health risks management is placed on the employer. To meet the legal requirements as well as improving the organisation‘s H&S performance and ultimately reduce risks and costs:  H&S policies and procedures with practical arrangements for managing occupational health risks  Provision of employee awareness training on manual handling, control of substances hazardous to health, noise at work and hand arm vibration  Manual handling risk assessments and safe handling techniques for manual handling activities  Health surveillance, sickness absence management, return to work policy and stress management strategy  Arrangements for managing subcontractors, including procedures for managing their occupational health risks  Employers understanding their duties under the Construction (Design and Management) Regulations (CDM 2007). System concepts can help the employer to improve on his organisation‘s H&S planning, policies, and procedures and to minimise risks in construction industry (CDM 2007).

Conclusion and Further Research

The purpose of this study was to highlight the employer‘s attitude towards health and safety improvement, and to further find out the types of motivation for safety measures, and how risk assessment methods are carried out and safety management systems applied. The review showed that employers‘ attitude contributes to encourage employees‘ safety compliance to Occupational Health and Safety (OHS) improvement in the construction industry. It was also mentioned that the top management should lead the organisation and employees in the achievement of organisation safety goals. Management should be committed towards safety and health at the workplace to change attitude of employees. There should also be effective communications and good by

165 relationship between employers and employees on matters such as, safety talk and advice on safety matters in order to improve safety motivation and encourage employees‘ safety behaviour.

References Abdullah, D.N.M., Morshidi, M.N. & Lim Omar, S. (2005) A Study on the Importance of Beahavioural-Based Safety (BBS) in making an organization a safe workplace. Proceedings of the 8th Conference and Exhibition of National Institute of Occupational Safety and Health (NIOSH), Malaysia, 131-140. Teo, A.L. et al., (2005) Fostering safe work behaviour in workers at construction sites. Engineering, Construction and Architectural Management, 12(4), 410-422. Bakshi, A. et al., (2009) Organisational Justice Perceptions as Predictor of Job Satisfaction and Organisation Commitment. Journal of International Business and Management, 4(9), 145-154. Canadian Centre for Occupational Health and Safety (CCOHS, 2009), ―Guide: British Standard, BS 8800, BSI 2004; and Managing Safety the Systems Way: Implementing OHSAS 18001 using BS 8800, BSI 2004‖. Available from: http://www.ccohs.ca. [18 July 2014]. Che Hassan, C.R., Basha, O.J. & Wan Hanafi, W.H. (2007) Perception of Building Construction Workers towards Safety, Health and Environment, Journal of Engineering Science and Technology, 2(3), 271-279. Construction Industry Development Board (cidb) (2009) Construction Health and Safety in South Africa: Status and Recommendations. (Online) Available at http://www.cidb.co.za (Accessed 16 June 2014). Construction (Design and Management) Regulations 2007 (CDM 2007). Managing health and safety in construction. Approved Code of Practice. Available from www.hsebooks.co.uk. [5 October 2014]. Cooper, D. (2010), Safety Leadership: Application in Construction Site. Supplemento A, Psychologia, 32(1), A18-A23. Elgood, J., Gilby, N. & Pearson, H. (2004) Attitudes towards health and safety: a quantitative survey of stakeholder opinion, MORI Social Research Institute. Fernando, Y.Z.S. & Janbi, L. (2008) The Determinant Factors of Safety Compliance at Petrochemical Processing Area: Moderator Effects of Employees Experience and Engineering Background, Proceedings of the 9th Asia Pacific Industrial Engineering & Management Systems Conference,1442-1452. Ghani, M.K., Abdul Hamid, Z., Mohd Zain, M.Z., Abdul Rahim, A.H., Mohamad Kamar, K.A. & Abdul Rahman, M.A. (2010) Safety in Malaysian Construction: The Challenges and Initiatives. Construction Research Institute Malaysia (CREAM), CIDB Malaysia. Hosseinian, S.S. & Torghabeh, Z.J. (2012) Major Theories of Construction Accident Causation Models: A Literature Review. International Journal of Advances in Engineering & Technology. 4(2), pp. 53-66. Ismail, F., Torrance, J.V. & Abdul Majid, M.Z. (2007) The Reflection of Management Commitment on OSH within the Malaysia Construction Organisation. Proceeding of the 10th Conference and Exhibition of National Institute of Occupational Safety and Health (NIOSH), Malaysia, 179-185. Michaels, D. (2012) Outlines OSHA‘s Efforts to Shift the Safety Curve. National Safety Council Congress and Expo. EHS TODAY (Online) at www.EHSTODAY.com. (Assessed on 15 June 2014). Panthi, K., Farooqui, R.U. & Umar, M. (2012) Assessment of Current Safety Attitudes and Approaches of Contractor Management in the Construction Industry- The U.S

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Experience. 48th ASC Annual International Conference Proceedings Copyright 2012 by the Associated Schools of Construction. Schulz, D. (2004), Occupational Health and Safety OH&S. Employee Attitudes- A Must Have. Smallwood, J.J. (2010) Excavation health and safety (H&S): a South African perspective. In: Egbu, C. (Ed) Procs 26th Annual ARCOM Conference, 6-8 September 2010, Leeds, UK, Association of Researchers in Construction Management, 233-241. Teo, E. et al., (2005a) Fostering Safe Work Behaviour in Workers at Construction Sites. Engineering, Construction and Architectural Management, 12(4), 410-422. Teo, E. et al., (2005b) Framework for Project Managers to Manage Construction Safety. International Journal of Project Management, 23(4), 329-341. Weaver, P. (2008) Risk attitudes in the construction industry-Avoidance does not work- Sofitel Melbourne, Victoria. Zin, M.S. & Ismail, F. (2011) Employers‘ Behavioural Safety Compliance Factors toward Occupational, Safety and Health Improvement in the Construction Industry, ASEAN Conference on Environment-Behaviour Studies, Savoy Homann Bidakara Bandung Hotel, Bandung, Indonesia.

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Influence of the macro-economic environment on the prices of the construction material in South Africa Adewumi Babalola1 and Fanie Buys2 Department of Quantity Surveying, Nelson Mandela Metropolitan University, [email protected] [email protected]

Abstract: The importance of price stability in the economic development and growth of any country cannot be over-emphasized. This is because the success and the quality of outcome of any construction project can depend on the price level of an economy. This study examines the influence of the macro-economic environment on the prices of construction material in South Africa. The methodology adopted for the study was an ex-post facto survey research, since the researcher did not have any direct control of the independent variable and the manifestations that have already occurred. The mathematical model for the study is p=β + ∞inf + e. The analysis of the F-statistic shows no significant relationship between the construction material prices and the level of inflation in the economy. There is an upward trend in the construction material prices; while the inflation rate dipped – because of the inflation-targeting policy adopted by the South African Reserve Bank, between the range of 4 and 6 per cent per annum. It is the recommendation of this study that South Africa should adopt policies that would bring about stable construction material prices, so as to ensure sustainable growth and development that would reduce the present level of unemployment, poverty and inequality in the country.

Keywords: Construction, Inflation, Materials, South Africa

Introduction

The state of a country‘s economy affects its construction prices. A stable macro-economic environment should lead to a stable construction price. In the 1980s and the 1990s, the South African economy was faced with external pressures in the form of economic sanctions by the Western economies, and the on-going internal structural inadequacies (Harmse, 2006). The era of sanctions led to import substitution and self-sufficient policies on strategic products by the State; and this caused huge government investment in oil from coal, and in the weapons industries. This period of economic recession saw about 420 000 workers lose their jobs (Roberts, 1997).

In addition, economic growth and employment recorded seven years of negative movement, between 1981 and 1988 (Harmse, 200). Stals (1998) maintained that for the 20 years from 1972 to 1992, the inflation rate in South Africa fluctuated between 10% and 20% per annum, with an average of 15% per annum.

Ofori (1996) stated that, the economy experienced an upswing in the 12-month period between July 1993 and July 1994; and the real GDP grew by 3.4%. This was in contrast with the situation in some industrialized countries, which were in recession at this period. Fraukel,

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Smit and Sturzenegger (2006) state that, the income per capita increased rapidly during the 1960-1980 period; but then the economy experienced a downward trend that lasted for 15 years. And, it was only from mid- 1994, that the economy began its upward trend.

Literature Review

Many empirical studies have shown that the construction industry is highly dependent on a nation‘s economy well-being. The volume of the construction outputs fluctuates in response to changes in demand and supply conditions (Chan, 2002). The linkages between the construction industry and the economy was confirmed by Ogunsemi and Aje (2005), that whatever happens to the construction industry will directly or indirectly influences other industries, and ultimately the wealth of the country. According to Rawlinson and Raftery (1997) the construction industry price levels in the United Kingdom (UK) do respond relatively quickly to changes in the economic conditions.

The knowledge of the movement of the overall price level is an important consideration in setting prices in the regulated industries (Independent Pricing and Regulatory Tribunal, 2009). Cheng and Tan (2002) state that it is important to study inflation in each country; because it is devastating; and because inflation creates problems and causes distortions in the functioning of an economy, thereby affecting its growth and development. Moyo and Craffold (2010) mention that survivors of hyperinflation struggle to describe the pain.

Another important macro-economic variable that influences the construction price is the interest rate. West and Worthington (2006) state that, interest rates and interest rate spreads are good indicators of growth and development in a given environment. They contribute to the property return movement; and the interest rate is an important factor in investment decisions; since it has a link with the returns on an investment, and is also connected with the present and future state of the economy and business conditions. Ferrer and Gonzalez (2010) state that the interest rate is a vital factor in any sector of an economy, because it represents a major source of uncertainty for the value of companies, because of its influence on both the future cash flow and discount rate employed to value them. They also maintain that interest- rate volatility and the level of financial leverage for most firms constitute additional factors that have contributed to the increasing relevance of the corporate exposure to interest-rate risk.

Money is a significantly important macro-economic variable for the development of any nation, because of its relationship with inflation, which was earlier described as enemy number one for the emancipation of countries‘ economies. According to Tse and Raftery (2001), the issue of money supply fluctuation in relation to the changes in the construction activities is a prime concern to the construction economist, as well as policy-makers; and therefore, government policy is normally built based on the knowledge of how it affects economic activities, especially the more volatile components of national output, such as construction.

However, currency value has been a prime concern of the policy-makers because of the influence of the foreign exchange rate to the economic development and growth. In any open economy, the exchange rate movement has an effect on the performance of every sector. Depreciation in the exchange rate would make the export of the domestic goods more competitive, causing an expansion in the domestic production. However, for a country that relies on imported inputs, a real depreciation rate would serve to increase the cost of these

169 inputs, thereby causing a contraction impact on the domestic products (Al-Rashidi and Lahiri, 2012). Frieden (1994) maintained that, the impact of the exchange rate on an economy can be explained – depending on the degree of its integration, the cross-border trade and investment. The national macro-economic policies influence the exchange rate; and the more the exchange rate varies, the greater the influence on other important socio-economic actors.

Research Methodology

The study on the influence of the macro-economic environment on the prices of construction material in South Africa involves the collation and analysis of the data on both macro- economic variables and prices of construction material. The variables were studied in retrospect. Furthermore, it is a study that employed an analytically-survey method by virtue of the essentially quantitative nature of all variables and the data. This study relies heavily on secondary sources of data for information on macro-economic variable and construction material prices. The sampling design adopted for this study is non-probabilistic purposive sampling method. This is necessary in order to avoid the accidental inclusion of cases that will affect the outcome of the study, thereby affecting the reliability and validity of the research outcome.

1.1 Model Specification The mathematical model of this study can be derived as follows:

Price of construction material ∞ inflation rate in an economy

P ∞ Inflation rate

P = F (Inflation rate)

To solve the above mathematical function yields,

P = β + ∞Inf + e

Where

P = the price of an item of the selected construction price

β = regression constant, Inf = Inflation Rate

∞ = Inflation rate co-efficient, e =error term

1.2 Sample, Sources and Administration of data collection instrument

1.2.1 Economic Data The historical data on inflation rate in South Africa were extracted from the published sources of the South African Statistics using designed form.

3.2.2 Prices of construction material The data were collected using designed form from the Bureau for Economic Research, University of Stellenbosch, Quarterly Analysis of Building and Construction activity, First Quarter, 2005, Vol. 20, No.1. The data cover the time series period from 1994 to 2012. The

170 dependent variable is the prices of construction material in South Africa. Ten construction materials were chosen for analyses. These materials were selected because of their significant and importance in construction projects in South Africa. The materials are: Paint, Flooring material, Bricks Facing, Bitumen, Crushed Stone, Glass, Plumbing material, Ceramic Tiles, Ceiling material and Reinforcement Steel.

1.3 Data Processing and Procedure The data collected for the study was first put in excel form to ensure less cumbersome processing. The software application package for the processing of the data is called Statistical. The statistical package allows the execution of some processes such as graph and equations, to mention but two

Findings and Discussion

Figure 4 constitutes the observed trend for material prices between 1994 and 2012. The trend shows a general upward increase in the prices of construction material from the base year to the end of the study period. The upward movement of the material prices can be attributed to the unstable macro-economic environment in South Africa. This is an indication of what is happening in the execution of the construction projects in South Africa – with the high cost of materials causing high construction costs and construction-cost overruns. The high cost of the materials can also be as a result the variability in the exchange rate of the Rand to the Dollar. There is a devaluation of the Rand vis-a-vis the Dollar because of the prevailing macro- economic environment in South Africa. The graphs in Figure 4 show the relationship between construction material prices and inflation. There are ten materials altogether. From the regression analysis, the p–value and the equation models, there is no relationship between the construction materials and the rate of inflation in the economy. This is contrary to the theory of inflation, which states that when the inflation rate is low, the price level in an economy would also be low. The entire graphs that shows the trend is available from the authors.

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Figure 4: Observed trend for material prices between 1994 and 2012

Conclusion and Further Research

From the study, it may be observed that the macro-economic environment in South Africa shows stable negative trend on the graph. This observation affects the growth and development of the country. The situation has also generated the too-high cost of construction material prices, thereby adding a multiplier effect to the high cost of construction projects, and then project-cost overruns. The monetary and fiscal policies are not performing adequately to ensure price stability. The inflation target of the Reserve Bank of South Africa could not curb the high price of construction materials, although is in the range of 4 to 6% per annum.

Therefore, for the aforementioned reasons, it is the recommendation of this study that South Africa government should come up with policies that would bring about low construction material prices, because of the importance of the construction industry in economic development.

References Al-Rashidi, A. & Lahiri, B. (2012). Exchange rate. Journal of International and Global Economic Studies, 5(2), 24-31. Chan, S. (2002). Response of selected economic indicators to construction output shocks: The case study of Singapore. Construction Management and Economics, 20, 523-533. Cheng, M. & Tan, H. (2002). Inflation in Malaysia. International Journal of Social Economics, 29(25), 20-38. Ferrer, R. & Gonzalez, C. (2010). Linear and non-linear interest-rate exposure in Spain. Managerial Finance, 36(5), 431-451. Fraukel, J., Smit, B. & Sturzenegger, F. (2006). South African macro-economic challenges after a decade of success. Centre for International Development (CID) Working Paper, No. 133. Frieden, J.A. (1994). Exchange rate politics: Contemporary lessons from American history. Review of International Political Economy, 2(1), 81-103. Harmse, C. (2006). The Relationship between South Africa‘s macro-economic policies and the performance of the various asset classes. SARB.

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Independent Pricing and Regulatory Tribunal (2009). Measuring inflation for industry price determination. Analysis and Policy Development, Information Paper, July. Moyo, A. & Craffold, G. (2010). The impact of hyperinflation on the Zimbabwean construction industry. Acta Structillia, 17(2), 54-70. Ofori, G. (1994). Establishing construction economics as an academic discipline. Construction Management and Economics, (12), 295-306 Ogunsemi, D.R. & Aje, J.A. (2005). The use of cash-flow forecast and effects on the abandonment of projects in Nigeria. Journal of Quantity Surveyors, 5(7), 20-28. Rawlinson, S. & Raftery, J. (1997). Price Stability and the business cycle: UK construction bidding patterns 1970-91. Construction Management and Economics, 15, 5-18 Roberts, S. (1997). Monetary policy within macro-economic policy: An appraisal in the context of reconstruction and development. Transformation, (32), 54-79. Stals, C. (1998). Elucidates monetary policy objectives in South Africa in the environment of financial globalization. Central Bank Articles and Speeches, May 11, 1998. Tse, R.Y.C. & Raftery, J. (2001). The effects of money supply on construction flows. Construction Management and Economics, 19(1), 9-17. West, T. & Worthington, A.C. (2006). Macro-economic risk factors in Australian commercial real estate, listed property trust and property sector stock returns. Journal of Financial Management of Property and Construction, 11(2), 105-116.

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Assessing contractors’ cash flow forecasting process capabilities Muhammad Abdullahi, Yahaya M Ibrahim, Ahmed D Ibrahim and Hassan A Ahmadu Department of Quantity Surveying, Ahmadu Bello University, Zaria, Nigeria, [email protected]

Abstract: Inadequate cash resources resulting from poor cash flows have been among the fundamental cause of construction project failures. To address this situation, complex and advanced cash flow forecasting (CFF) tools and techniques are globally used for forecasting construction cash flows, especially in large projects where huge sums of monies are invested. However, effective cash flow forecasting process can only be developed by the systematic improvement of the individual components of a cash flow forecasting system which assesses the specific strengths and weaknesses of the process. In Nigeria studies have reported CFF practice to be at an infancy stage with high need for improvement. However, these assessments were not based on a systematic approach that examines the capabilities of the various components of a CFF process thereby identifying areas in critical need for improvement. To address this problem, this study proposes a systematic approach to assessing CFF capabilities of construction firms using Best Practices in CFF developed by Royal Institute of Chartered Surveyors (RICS).Through a self-administered questionnaire survey, a total number of 133 questionnaires were administered amongst contracting organisations involved in both building and civil engineering works in Nigeria. The key best practices were ranked based on arithmetic mean value scores and averages were also determined for each of the four components assessed (Knowledge and understanding CFF concepts and principles, Practical application, Practical considerations, and other Managerial issues).Results of the study reveals that the industry is currently at a low capability level in terms of cash flow prediction and analysis. The construction industry has high capability of understanding and the practical application of the key CFF best practices, but a weak/low advisory and management capabilities. The results of this study could serve as a basis for the strategic planning of improvement in Cash Flow Forecasting process by contractors in Nigeria.

Keywords: Construction, Cash flow, Forecasting, Practice

Introduction

Effective management of Construction Project Cash Flows (CPCFs) has been a fundamental concern to construction project managers whose prior goals are to deliver projects on time, within budget and to the required quality standards. Project Managers are always required to accurately forecast project cash flows to ensure stable financial position at all times (Harris and McCaffer, 2005) and eliminate the risk of project failure which has been a threat to so many construction projects (Odeyinka and Lowe, 2001). The construction industry has been reported to have recorded the highest number of insolvencies than any other sector of the economy. For example, 17.5% cases of bankruptcies were reported in the UK alone in 1989 (Kaka, 1999). These insolvencies were mostly attributed to poor financial management

174 practices which are usually due to inadequate attention to cash flow issues at project and corporate levels.

At the construction project level, cash flow forecasting fundamentally deals with the prediction of the total cash-in and cash-out in the form of income and expenditure to the contractor within the contract period. Accurate cash flow forecast is essential at both the tendering and construction stages for all contractors (Kenley, 2003). It provides contractors with information regarding the amount of capital required, the amount of interest needed to support overdrafts and the evaluation of different tendering strategies (Harris and McCaffer, 2005). Similarly, as construction progresses, accurate forecasts could serve as a cost control tool (Odeyinka and Lowe, 2001). The traditional method of forecasting cash flow according to Harris and McCaffer (2005) entails the calculation of actual quantities for each time interval according to progress schedules and then multiplying them by the estimated unit costs. However, because of the tedious and time consuming nature of the aforementioned approach, the need for faster and simpler techniques in Cash Flow Forecasting (CFF) became necessary and therefore alternative modeling techniques ranging from mathematical, statistical to the application of artificial intelligence were employed to develop CFF models.

Majority of earlier models were based on the use of standard S-Curves to forecast project expenditure flow (Hardy, 1970; Balkau, 1975; Bromilow and Henderson, 1977; Hudson, 1978; Allsop, 1980; Berney and Howes, 1982; Singh and Phua, 1984; Oliver, 1984; Kenley and Wilson, 1986; Miskawi, 1989; Khosrowshahi, 1991). Other models include Kenley and Wilson (1986), Kaka and Price (1991, 1993) developing the logit models based on idiographic methodology; Lowe et al. (1993) applying Expert Systems; Kaka and Khosrowshahi (1996) investigating the impact of some procurement approaches on contractors‘ cash ﬂow. More recently, researchers have explored the use of Artificial Neural Network (Bousssabaine and Kaka, 1998; Boussabaine et al., 1999) approach, fuzzy set theory techniques (Bousssabaine and Elhag, 1999), combinatorial optimization model using colony search capabilities (Abdel-Raheem et al., 2013), monte-carlo simulation and Analytical Hierrachical Process (AHP) by Zeyed and Liu (2014) and the use of other CFF software. Furthermore, Khosrowshahi (2000) reported the development of the Advanced S-Curve (TASC); a software that aids cash flow forecasting. Other software developed includes FINCASH (developed in Australia) and Cybercube (developed in the UK).

While all these cash flow forecasting techniques and tools are recognised in literature and practice, studies in Nigeria reported CFF practice to be at an infant stage not done based on the methodologies recommended globally (Abdulrazaq et al., 2012). According to Abdulrazaq et al. (2012), the practice even though formally done by large construction companies is still not a matured practice, contractors who engage in the practice as a company policy do not adhere strictly to the global best practices of CFF in literature and even the industry. However, these assessments (Abdulrazaq et al., 2012) were not based on a systematic approach that examines the specific components of a CFF process thereby identifying areas of strengths and weaknesses in practice by the contractors. In order to address this shortcoming, this research work investigates the current state of the industry in the practice using a systematic approach. The specific components of an effective CFF process (such as; knowledge and understanding of CFF principles and techniques; practical application of the techniques and other practical considerations) were systematically assessed and specific areas of strengths and weaknesses were identified

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Best Practices in Cash Flow Forecasting Process

The Royal Institute of Chartered Surveyors‘ CFF Practice guidance note (2012) provides best practice guidance on cash flow forecasting to project and cost managers in all world regions. The document summarises what cash flow forecasting is, how to produce a useful forecast and how to use the forecast to assess progress on site, as well as several other issues. The main aim of the guide is to assist both employers and contractors to analyse actual expenditure against forecast expenditure in a uniform approach and to ensure that consistent practice is delivered in a professional manner that is in line with the globally recognised guidance. Guidance is given based on the main forms of contract and main procurement routes, under the following headings which corresponds to RICS Assessment of Professional Competence (APC) methodology:

 General principles (Level 1: Knowing).

 Practical application (Level 2: Doing).

 Practical considerations (Level 3: Doing/ Advising).

Table 1 presents the list of key best practices as outlined by RICS CFF Practice guidance note (2012).

Table 1: RICS Key Best Practices (KPBs) in cash flow forecasting General Principles

Understanding of the uses and purposes of CFF Awareness of the influence of different valuation methods on CFF Knowledge of influence of cash flow on business failure Understanding of legislative requirements on CFF Knowledge of CFF curves and formulae Knowledge of advance cash flow forecasting tools Practical Application

Deciding appropriate approach Providing risk allowance Taking brief from employer Providing risk allowance for provisional sums Preparing program of works Adding cost centres Ascertaining basis of forecast Adjusting materials on and off site Adjusting forecast for cyclical events Seeking specialist advice for CFF of specialist works Adjusting schedule for holiday Adjusting forecast to reflect progress on site Incorporating retention percentage Managing the effects of delays on CF Adjusting cash flow forecast to extend to Use of spread sheet for CFF rectification period Analysing delays for certification period Using value approach to predict cash flows Including payment delays in forecast Using cost approach to predict cash flow Considering sectional completion/partial using detailed approach to predict cash flows possession Adjusting currency difference Using short-cut approach to predict cash flows Providing risk allowance for variation Using Artificial intelligence to predict cash flows

Practical Considerations

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Representing forecast in graphical form Analysing reasons for variances Discussing variances with the employer Analyzing actual payment against forecast Checklisting CF risks forecasting the effects of claim on CFF considering the effects of re-sequencing and work acceleration Advising on the effects of local taxation Considering effects of alternative procurement routes Ensuring data richness and information accuracy

Research Methodology

To achieve the objectives set for this study, a combination of research techniques was used. The first stage of the study involved a review of literature, basically to identify the variables (best practices in cash flow forecasting) used in developing the assessment criteria for assessing firms‘ capabilities. The second stage involved a questionnaire survey. The questionnaire survey was carried out to assess the CFF capabilities of the different group of contractors selected for the study, particularly on the extent to which the CFF best practices are applied in their organisations. The complete questionnaire comprised three sections: questions about respondents‘ background; questions about some key relevant organisational characteristics; and questions on cash flow forecasting practices. The target respondents who were construction professionals with vast experience in construction finance responded to the questionnaires by rating the extent of usage/application of the key best practices in CFF using a Likert scale of 0-5 where; 0 indicates ―no usage/application‖, 1 ―little usage/application‖, 2 ―some usage/application‖, 3 ―moderate level of usage/application‖, 4 ―High level of usage/application‖ and 5 ―Highest level of usage/application‖.

A total of number of 133 firms were selected and administered questionnaires using purposive sampling technique. The sample selection was based on the assumption that all the firms considered in the sample frame consider CFF very important and engage qualified personnel to perform the duty. The purposive sampling method was adopted to ensure that only those firms that practice cash flow forecasting were involved in the survey. Therefore, only firms that are capable of providing the required information needed in the study were contacted. A total number of 86 usable responses representing 65% response rate were used for analysis. The key best practices were ranked based on arithmetic mean value scores and averages were also determined for each of the four components assessed(Knowledge and understanding CFF concepts and principles, Practical application, Practical considerations, and other Managerial issues).

Findings and Discussion

Assessment Criteria

Based on the review of literature carried out, assessment criteria was developed and categorised into four distinct components which are indicators of best practices in CFF. The four CFF process areas / components are:

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 The understanding and knowledge of CFF principles and process (knowing).

 Practical application of the concepts and principles into live projects (doing).

 Practical considerations of the practices (Advising).

 Management related issues.

These first three components were direct extracts from the Royal Institute of Chartered Surveyors (RICS) Professional Guidance Note (2002) while the management related issues were identified from literature. The guidance note provides best practices on cash flow forecasting for project and cost managers all over the world and is based on the RICS assessment of professional competence approach. The main purpose of the guide is to ensure that consistent practice is delivered in a professional manner that is in line with internationally recognised guidance. The guide sets a framework for best practice, subject to specific local legislative requirements and local market specifics. Respondents were presented with a long list of The CFF capabilities of the contractors surveyed and were therefore assessed based on these criteria.

However, each criterion (process area/component) has sub-criteria which provide more details on the requirement of the main criterion (components). The sub-criteria are comprised of the best practices that describe what CFF is, how to produce a good cash flow forecast and then how to use the forecast to assess progress on site and other issues. Table 1 presents the key indicators of best practices in CFF.

Table 2: CFF Management best practices applied by the organisations Large Medium Small Key Practices Overall Firm's Firm's Firm's Mean Rank Mean Rank Mean Rank Mean Rank

Management's commitment 2.33 1 4.14 1 1.86 2 0.97 2 Highly trained staff 2.15 2 3.57 4 1.81 3 1.09 1 Organisational Policy 1.99 3 3.79 3 2.03 1 0.17 3 Evaluation and review of CFF process 1.46 4 3.93 2 0.44 5 0.00 5 Verify whether forecasts are based on 1.39 5 2.64 5 1.47 4 0.06 4 Procedures

Assessing the Knowledge and Understanding of CFF principles and concepts-knowing

According to RICS CFF guide (2002), the first step to a successful management of project cash flow begins with a clear and good understanding of the basic principles and concepts of CFF. In line with that, respondents were asked to examine the extent to which some key basic concepts of CFF are understood in their organisations. Six (6) basic concepts were assessed and the results produced overall mean values ranging from 4.71 to 1.88. As depicted in Table 3, the three basic principles well understood by the contractors are; ‗uses and purposes of CFF‘ (overall mean= 4.71), ‗influence of cash flow on business failure‘ (overall mean= 4.7), and ‗legislative requirements‘ (overall mean= 3.46). The mean values for these concepts (key best practices) were higher than the other three best practices. These three most applicable practices are the first three pre-requisite principles every organisation practicing CFF is expected to understand as recommended by the RICS Practice guide (2003). ‗Awareness of

178 the influence of different valuation methods‘ was ranked 4th overall, although ranked 3rd by both medium and large firms.

Meanwhile, ‗Knowledge of CFF Curves and formulae‘ was ranked 4th with a high mean score of 3.93 by large firms compared to the medium and small firms. Curves and formulae are often used early in the design stage to give employers a guide as to the predicted cash flow forecast. This is usually done before the contractor is being appointed, so as to assist the employer with funding arrangement and agreements and also to assist in the procurement and contract choice (Harris and McCaffer, 2005). The low mean value score (1.97) and ranking (4th) on small size firms is not unexpected, this is because they handle simple projects with less complexities, lower contract sum and duration. And therefore the need for earlier predictions is usually unnecessary.

However, ‗Knowledge of advance CFF tools‘ was ranked at the bottom of the list by all the three (3) categories of firms. This is also not unexpected, given that the application of these tools is still not very common even in the UK construction industry where some of these tools were developed (Odeyinka et al., 2003).

Table 3: Knowing: Understanding and knowledge of the principles of Cash flow forecasting Large Medium Small Overall Key Practices Rank Firm's Rank Firm's Rank Firm's Rank Mean Mean Mean Mean Understanding of the uses and 4.71 1 4.71 1 5.00 1 4.43 1 purposes of CFF

Influence of cash flow on business 4.70 2 4.43 3 5.00 1 4.69 2 failure Legislative requirements on CFF 3.46 3 4.57 2 3.83 2 1.97 4 Awareness of the influence of 3.12 4 3.50 5 3.56 3 2.31 3 different valuation methods on CFF Knowledge of CFF curves and 2.67 5 3.93 4 2.11 5 1.97 4 formulae Knowledge of advance CFF tools 1.88 6 2.57 6 2.64 4 0.43 5

Doing: Practical Application of CFF best practices

This section assesses the practical application of the best practices in preparing cash flow forecasts. Table 4 depicts contractors‘ opinion regarding the extent of usage or application of some best practices in preparing CFF. The results revealed mean values of 26 best practices ranging from 5.00 to 0.00. Table 7 shows that 4 best practices scored an average score of 5.00, 7 practices had mean values above 4.00, 5 practices had mean scores between 3.0 and 4.0, while the remaining 9 practices scored mean values between 2.0 and 0.00. Overall, the top 10 most applicable CFF best practices in Nigeria are; ―Preparing program of works‖, ―Using detailed approach to predict cash flows‖, ―Incorporating retention percentage‖, ―Adjusting currency difference‖, ―Using value approach to predict cash flows‖, ―Ascertaining basis of forecast‖, ―Including payment delays in forecasts‖ ―Adjusting materials on and off site‖, ―Adjusting forecast to reflect progress on site‖, and the ―Use of spread sheet for CFF‖. Of these top ten best practices, the first four have the highest mean value score of 5.00 for all the categories of firm and were ranked 1st . This clearly shows that all the firms do apply these practices most often in their CFF process irrespective of what category they belong to. And this should improve the accuracy of forecast they produce. Chen et al (2005) reported

179 that the accuracy of cost predictions hinges on the adequate inclusion of payment lags, components (materials/labour/plant costs), and frequency of payment in cost schedule integrated (CSI) models used to prepare the forecasts.

Table 4: Practical Application of CFF principles and concepts Large Medium Small Overall Key Practices Rank Firm's Firm's Firm's Mean Mean Mean Mean Preparing program of works 5.00 1 5.00 5.00 5.00 Using detailed approach to predict cash 5.00 1 5.00 5.00 5.00 flows Incorporating retention percentage 5.00 1 5.00 5.00 5.00 Adjusting currency difference 5.00 1 5.00 5.00 5.00 Using value approach to predict cash flows 4.92 2 4.50 5.00 5.00 Ascertaining basis of forecast 4.79 3 4.93 4.89 4.63 Including payment delays in forecast 4.76 4 3.50 5.00 5.00 Adjusting materials on and off site 4.76 4 5.00 4.89 4.51 Adjusting forecast to reflect progress on 4.57 5 5.00 4.64 4.31 site Use of spread sheet for CFF 4.27 6 0.57 5.00 5.00 Considering sectional completion/partial 4.08 7 4.86 4.69 3.11 possession

Seeking specialist advice for CFF of 3.72 8 3.86 4.64 2.71 specialist works

Analysing delays for certification period 3.59 9 4.14 3.75 3.20 Managing the effects of delay 3.48 10 4.00 3.69 3.03 Adjusting schedule for holiday 3.13 11 5.00 4.42 1.03 Deciding appropriate approach 3.09 12 4.64 2.97 2.54 Providing risk allowance for provisional 2.83 13 0.64 3.64 2.83 sums Adjusting for cyclical events 2.60 14 5.00 4.06 0.09 Adding cost centres 2.21 15 1.00 2.67 2.20 Adjusting cash flow forecast to extend to 1.85 16 5.00 1.56 0.94 rectification period

Providing risk allowance for variation 1.65 17 2.93 1.39 1.46 Providing risk allowance 1.37 18 2.43 1.28 1.03 Using cost approach to predict cash flow 0.98 19 0.57 1.11 1.03 Using short-cut approach to predict cash 0.81 20 0.36 1.03 0.69 flows Taking brief from employer 0.78 21 2.07 1.06 0.00 Using Artificial intelligence to predict cash 0.00 22 0.00 0.00 0.00 flows

Doing/Advising: Practical Considerations of CFF best practices

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This section assesses the practical considerations to be made when producing and analysing cash flows. The questionnaire required respondents to rate the extent to which some practical considerations are made when managing their project cash flow forecasts. The most applicable best practice overall in the industry is ―Analyzing actual payment against forecast (4.47)‖, followed by ―Representing forecast in graphical form (4.06)‖, and then ―Ensuring data richness and information accuracy (3.94)‖. Generally these best practices were scored higher by the large firms compared to the medium and small firms. The large firms do practically consider five (5) of the best practices in their cash flow forecasting process while only three out of the 10 practical considerations were considered by the medium and small firms.

The three (3) least scored practices were; ―Considering effects of alternative procurement routes (0.42)‖, ―considering the effects of re-sequencing and work acceleration (0.20)‖, and ―Discussing variances with the employer (0.10)‖. These best practices having a mean score of less than 1.00 implies that they are not applied entirely in the industry. The non-application of these practices by the small firms most especially could be due to the nature of projects they undertake, usually small and medium sized projects with short contract durations. However, despite the conclusion made by Kaka and Price (1993) that different procurement routes have different cash flow profiles and must be treated differently, the results shows that the small and medium scale contractors do not take that into consideration. Also, even the large contractors who were shown to consider it do that at a very low rate. Surprisingly also, best practices such as ―Analysing reasons for variances‖, ―Advising on the effects of local taxation‖, ―forecasting the effects of claim on CFF‖, ―Checklisting CF risks‖, which could have tremendous effects on the accuracy of forecast were scored very low, indicating ―low level of application‖ by the contractors. This is likely due to the fear of delays in decision making and subsequent correspondences from the employer which could result from consultations and discussions with them.

Table 5: Practical Considerations Large Medium Small Overall Key Practices Rank Firm's Firm's Firm's Mean Mean Mean Mean Analyzing actual payment against forecast 4.47 1 5.00 4.56 4.14 Representing forecast in graphical form 4.06 2 5.00 3.89 3.83 Ensuring data richness and information 3.94 3 5.00 3.94 3.51 accuracy Analysing reasons for variances 1.28 4 4.29 0.92 0.43 Advising on the effects of local taxation 1.12 5 5.00 0.50 0.20 Forecasting the effects of claim on CFF 0.70 6 1.00 0.78 0.51 Checklisting CF risks 0.64 7 1.71 0.53 0.29 Considering effects of alternative procurement 0.42 8 1.21 0.39 0.14 routes Considering the effects of re-sequencing and 0.20 9 0.00 0.33 0.14 work acceleration Discussing variances with the employer 0.10 10 0.64 0.00 0.00

Overall CFF Capabilities of Nigeria Contractors

The average CFF process capabilities of Nigerian construction firms are shown on Tables 6 and 7.

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 Large firms‘ capability: The large firms have an overall average group mean of 3.48 implying that the practice is at a high level of application with high capability. Firms under this group have high understanding and knowledge (knowing) of the basic concepts and principles of CFF (overall mean= 3.95); moderate level of practical application (Doing) of the concepts and principles (Overall mean= 3.46), a low level of applying those practical considerations (Doing /Advising) into their forecasting process (Overall mean= 2.89). An overall mean value of 3.61 for management related issues also depicts a high level of application of managerial practices. Therefore, the results clearly shows that large firms have higher capabilities in the areas of ―Knowing‖ and ―Management of CFF process‖ while moderate and weak capabilities in the areas of Practical application (Doing) and Practical considerations (Doing/Advising) respectively.

 Medium firms‘ capability: the medium firms have an overall group average of 2.58 lower than that of the large firms. This means that the medium sized firms are also at a low level of CFF practice with low capability. Firms under this group have their relative strengths in the areas of ―Knowing and Doing‖ while weak in the ―Advisory and Management‖ aspect of the process. However, because the rating scale ranges from 0 to 5, this means than the contractors under this group still have substantial opportunity to improve their capabilities, especially in the areas of Doing/advising (overall mean= 1.58) and managing (Overall mean= 1.52) where capabilities are extremely low.

 Small firms‘ capability: the small firms with overall mean value of 1.82 have a very low CFF Capabilities. They have low capabilities in the areas of Knowing and Doing; very low capabilities in Doing/Advising; and completely incapable in the management component of the process. The small firms do not apply any of the management best practices in their CFF process. This could possibly be the simple reason for the poor accuracy in their cash flow forecasts. A good management setting usually have planning, monitoring and controlling systems which collectively ensure effectiveness and efficiency. Therefore, the small firms need to seriously work towards achieving tremendous improvements in their management capabilities by applying those management related key practices that will improve the overall capability of their CFF process.

 Industry Capability: The entire industry based on the sample studied having a mean value of 2.55 has low CFF capability. The industry is relatively moderate in the areas of knowing and doing, while very weak in the other two process areas; Doing/advising and management/controlling. High level of improvement is needed in all the components to achieve higher accuracies in cash flow forecasting.

Table 6: Overall capabilities of the various components of a Cash flow forecasting Process Firms Overall Mean CFF Process Areas Large Medium Small Knowing 3.95 3.69 2.63 3.42 Doing 3.46 3.51 2.86 3.24 Doing/Advising 2.89 1.58 1.32 1.69 Managing 3.61 1.52 0.46 1.86

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Table 7: Overall Cash flow forecasting capabilities of the firms

Large Medium Small Industry Firms' Firms' Firms' Overall overall overall overall Mean Cash flow forecasting capabilities Mean Mean Mean 3.48 2.58 1.82 2.55

Conclusion and Further Research

The aim of this study was to assess the Cash flow Forecasting Capabilities (CFF) of Nigerian contractors, with sole view of identifying the potential strengths and weaknesses in their CFF processes thereby recommending possible areas in need of improvement. This aim was achieved through some specific objectives. The first objective was to identify key best practices (KBPs) in cash flow forecasting and was achieved through the comprehensive review of past literature with information drawn from various sources including academic and industry publications. Information collected was then critically analysed to establish the KBPs used in the study. A long list of forty seven (47) best practices recommended by practitioners and professionals in the construction industry was elicited. The practice guide outlined best practices based on the three major components of the RICS assessment of professional competence (knowing, Doing, and advising) which directly describes the process of CFF. In addition five (5) other management related issues were further identified from literature. These key best practices formed the basis of the assessment by serving as the criteria used for assessing contractors‘ capabilities.

The second objective was achieved via self-administered survey conducted among the different categories of contractors as listed by businesslist.com a directory for registered construction firms in Nigeria. The main object of the survey was to carry out the assessment of the CFF capabilities of contractors in Nigeria based on their level of knowledge and understanding of the CFF process (Knowing); Practical application of basic principles of CFF (Doing); other practical considerations (Advising); and the overall management strategies adopted by the contractors to manage the entire CFF process of their projects. Firstly, the survey results indicated that CFF in Nigeria construction industry is ineffective and not practiced as recommended in literature.

The industry is at a low capability level with high need for improvement. It revealed that large and medium sized firms have higher CFF capabilities, especially when compared with the small firms which have low capabilities in virtually all the key components of CFF process. Secondly, the strong and weak areas of practice by the firms were determined from the assessment results. More specifically, the results revealed a high level of application of the BPs in the areas of Knowing (Knowledge and understanding of CFF principles) and Doing (the practical application of CFF principles), but a very weak Advisory (practical considerations) and management capabilities. Furthermore, the large firms have high capabilities in knowing, doing and controlling, but low/weak in the advisory aspect of the process Medium firms have their strong holds in knowing and doing but need some tremendous improvement in the advisory and management areas. The small firms have a very poor CFF process. The practice in these firms needs improvement in virtually all its components, especially in the management aspect which does not exist and the advisory areas which is also at a very low level. Little effort would improve the knowing and doing areas.

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Causes and effects of disputes on construction projects in Johannesburg, South Africa L Maseko, CO Aigbavboa, and WD Thwala Department of Construction Management & Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: Construction disputes happen fairly often, they are a reality on every construction project and could happen at any point in time during the design or construction phase of the project. This paper assesses the causes and effects of construction project disputes and thier consequential effects in the Johannesburg –construction industry. The primary data was collected through a well-structured questionnaire, which was distributed to construction professionals, who included: architects, quantity surveyors, civil engineers, construction mangers and project managers. Out of the 55 questionnaires sent out, 49 were received back ,representing a 89% response rate. Data received from the questionnaires was analysed using descriptive statistics procedures. Findings from the study reveal that design errors, poor briefing by the client, poor management, failure to follow conditions of contract and delay in progress payments are the major causes of disputes on construction projects. The study also revealed that litigation, cost overruns, time overruns, loss of profit and loss of proffesional reputation are major effects of construction disputes.

Keywords: Construction, Disputes, Johannesburg, South Africa

Introduction

Construction industry is one of the mainstays of a country‘s economic progress, it may in fact be not wrong to state that the state of a country‘s construction sector can be used as a barometer to gauge that country‘s economic performance. Different people may hold different views, but when a country‘s economic statistics are heading downwards, the government‘s ―stimulus package‖ for the economy usually comprises substantial allocation for the construction industry. However, it is also true to say that the construction industry is a fertile source of disputes (Kheng, 2003).

Dispute in construction industry always occur and can be attested by many court cases reported in court proceedings, various law journals and law reports. Therefore, construction disputes can have serious implication in construction project. However, the project may suffer cost and time overrun, the owner may suffer significant loss and profit and worst still the project may be abandoned or failed. This is because construction is a complex process involving of many activities, myriads of individual, different company or firms, different size, part of country with different skills and capabilities and always subject to changing environment (Asniah, 2007).

In every industry where people have to work together and cooperate there is a possibility for disputes to arise, and construction industry is not an exception. Often there is a lack of

186 understanding about the reasons behind the disputes, but to avoid disputes from occurring and resolving them if they occur, it is vital to understand the causes of disputes (Love et al., 2006).

Literature Review: Construction Project Disputes – causes and effects

The construction industry has the unenviable reputation of being highly adversarial, and as a result of this, is paradoxically a leader in both dispute occurrences and dispute resolution systems (Keil, 1999). In the construction industry, disputes can be damaging and expensive, but can also seem inevitable. There is no universal definition of dispute. However for the purpose of this research, the dispute is defined as a problem or disagreement between the parties that cannot be resolved by on-site project managers. However, according to Rarooqui & Azhar (2014), there are four major categories of dispute causation: construction related causes of disputes, financial/economical causes of disputes, management causes of disputes and contract related causes of disputes. In a similar vein, Campbell (1997) also reveals that, construction disputes generally occur due to the following: adversarial nature of contracts; Poor communication between the parties; Ineffective communication on site; the inability to understand terms of contract and expectations of the parties. According to Kwakye (1997), disputes may arise on a project for a number of reasons, some well-known ones include: shortcomings, omissions and error in contract documentation giving rise to ambiguities in contract requirements; Delays in the supply of general construction information; and late issue of variation orders for some section of the works.

Construction disputes, when not resolved in a timely manner, become very expensive – in terms of finances, personnel, time, and opportunity costs. The visible expenses (e.g., attorneys, expert witnesses, the dispute resolution process itself) alone are significant. The less visible costs (e.g., company resources assigned to the dispute, lost business opportunities) and the intangible costs (e.g., damage to business relationships, potential value lost due to inefficient dispute resolution) are also considerable, although difficult or impossible to quantify (Farooqui & Azhar, 2014). As a result of issues arising in projects, conflict and disputes may occur, which can lead to the disruption of construction schedules, increased project costs, and even adversely influence relationships between project participants (Yiu & Cheung, 2004). If a dispute is not resolved promptly; it may escalate, and ultimately require litigation proceedings, which can be extremely costly for the parties concerned (Cheung et al., 2004). Literature identified the following to be the effects of disputes in construction disputes; Additional expenses in managerial and administration, litigation, loss of company reputation, loss of profitability, loss of business viability, time overruns, cost overruns, loss of professional reputation, loss of respect between parties, reworks, and relocation cost.

Research Methodology

The quantitative approach was adopted in the study. Burns and Grove (1993) define quantitative research as a formal, objective, systematic process to describe and test relationships and examine causes and effects interactions among variables. However, Polit and Hungler (1993) states that a quantitative research is a survey to obtain information from a sample of people by means of self-report, that is, the people respond to a sequence of questions posed to them by the researcher. Therefore, in this study the information was collected through a well-structured questionnaire distributed to the respondents by the researcher. 187

A descriptive survey was selected because it gives an account of the characteristics, for example behaviour, opinions, abilities, beliefs and knowledge of a particular individual, situation or group. This method was chosen to meet the objectives of this study, namely to identifying the causes of disputes in the South African construction industry and the effects of disputes, further, identifying the measurers of resolving these disputes in construction projects. The target population in this study were Architects, Quantity Surveyors, civil engineers, construction managers, project managers, and planners who are working in project around Johannesburg, South Africa. Furthermore, out of the 55 questionnaires sent out, 55 were received back which represent 100% response rate and only 49 (89%) were usable, which formed the basis of this paper.

Mean Item Score (MIS) A five point Likert scale was used to determine the causes, effects and methods of minimising construction in Johannesburg, with regards to the identified factors from the reviewed literature. The adopted scale was as follows;

1. = Strongly disagree 2. = Disagree 3. = Neutral 4. = Agree 5. = Strongly agree The other scale used was as follows;

1. = Extremely unlikely 2. = Unlikely 3. = Neutral 4. = likely 5. = Extremely likely

The five-point scale was transformed to mean item score (MIS) for each of the factors of causes, effects and methods of resolving disputes as assessed by the respondents. The indices were then used to determine the rank of each item. The ranking made it possible to cross reference the relative importance of the items as perceived by the respondents. This method was used to analyse the data collected from the questionnaires survey.

The addition of the relative mean item score (MIS) was calculated from the total of all weighted responses and then relating it to the total responses on a particular aspect. This was based on the principle that respondents‘ scores on all the selected criteria, considered together, are the empirically determined indices of relative importance. The index of MIS of a particular factor is the sum of the respondents‘ actual scores (on the 5-point scale) given by all the respondents‘ as a proportion of the sum of all maximum possible scores on the 5-point scale that all the respondents could give to that criterion. A weighting was assigned to each response ranging from one to five for the responses of ‗strongly disagree‘ to ‗strongly agree‘ and ‗Extremely unlikely‘ to ‗Extremely likely‘. This is expressed mathematically below. The mean item score (MIS) was calculated for each item as follows;

MIS= 1n1 + 2n2 + 3n3 +4n4+5n5 …………………………………… Equation 1.0

∑N

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Where; n1 = Number of respondents for extremely unlikely or strongly disagree n2 = Number of respondents for unlikely of disagree; n3 = Number of respondents for neutral; n4 = Number of respondents for likely or agree; n5 = Number of respondents for extremely likely or strongly agree; N = Total number of respondents.

Findings and Discussion

Findings from the 49 usable questionnaires reveal that 69.4% of the respondents were male and 30.6% were female, Findings relating to the respondents age group reveal that 29% of the respondents were in the age group of 20-25years old, 29% of the respondents were in the age group 26-30 years old, 14% were in the age group 31-35 years old, 10% were in the age group 36-40 years old, 6% were in the 41-45 years old age group, and 12% of the respondents were from the age group of 55 and above. Furthermore, the respondents‘ ethnicity shows that 57% of the respondents were black, 35% were white, 2% of the respondents were coloured and 6% were either Indian or Asian. Moreover, the data reveal that the professional qualification of the respondents were (37% ) quantity surveyors, (27% ) project managers, (18%) were project planners, mechanical engineers, industrial engineers and mining engineers, 12% civil engineers, (4%) were construction managers and (2%) were architects.

Nevertheless it showed the working experience of the respondents, it reveals that 47% had experience that ranged from 1-5 years, 29% had experience in the range 6-10 years, 8% had experience that ranged between 11-15 years, 4% had experience that ranged between 16-20 years and 12% had 20 years or more experience in the industry. The data also shows the educational qualifications of the respondents and it reveal that 47% of the respondents had diplomas, 41% had B-degree, 8% had a M-degree, 2% had a D-degree and 2% had certificates. Furthermore, the data revealed the respondents current employers and it show that 67% of the respondents were working for the contractors, 14% were employed by the consultants, 10% were employees of the client, 8% were employed at the government departments, and none of the respondents were from other of various government ministries and departments, and none of the respondents were employed at a different institution other than the mentioned ones.

Client related causes of disputes in construction projects The results reveal the respondents ranking of aspects that cause disputes in construction projects. It reveals that poor communication between team members was raked first with the mean score of 3.94 ;poor management was ranked second with the mean score of 3.84;disagreements/ambiguities in contract documents was ranked third with a mean score of 3.80 and failure to respond in timely manner was ranked fourth with a mean score of 3.80 (Table 1). The results discloses that poor supervision was ranked the seventh with a mean score of 3.67; reluctant to check for constructability was ranked eightieth with a mean score of 3.47. Moreover, reluctant to check for completeness on construction documents was ranked the twelfth with a mean score of 3.37 and failure to appoint a project manager was ranked the thirteenth with a mean score of 3.02.

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Table 1: Client related causes of disputes Causes of Disputes MIS Rank Poor communication between team members. 3.94 1 Poor management 3.84 2 Disagreements/ambiguities in contract documents. 3.80 3 Failure to respond in timely manner. 3.80 4 Poor coordination efforts on the part of the project 3.75 5 Reluctant to check for clarity on construction documents 3.69 6 Poor Supervision 3.67 7 Reluctant to check for constructability 3.47 8

Lowest price mentality in engagement of contractors and designers. 3.47 9

The lack of team spirit among the participants. 3.45 10 Inadequate tracking system for request of information. 3.44 11

Reluctant to check for completeness on construction documents 3.37 12

Failure to appoint a project manager 3.02 13

In a similar vein, Campbell (1997) also revealed that, construction disputes generally occur due to the following: Improper contractual documentation; Poor communication between the parties; the inability to understand terms of contract and expectations of the parties. Moreover, According to Kwakye (1997), disputes may arise on a project for a number of reasons, some well-known ones include: Shortcomings, omissions and error in contract documentation giving rise to ambiguities in contract requirements; Delays in the supply of general construction information; late issue of instruction varying some section of the works; Increase in scope of work (change, extra and errors) without proper consideration for extension of production time.

Consultant related causes of disputes in construction projects Table 2 reveals the respondents ranking of factors that cause disputes in construction projects. It shows that late information delivery was ranked the first with a mean score of 4.22; incompleteness of drawings was ranked the second with a mean score of 4.12, underestimation was ranked the third with a mean score of 4.06; design oversight was ranked the fourth with a mean score of 3.844; Incompleteness of specification was ranked the firth with a mean score of 3.81; specification oversight was ranked the sixth with the mean score of 3.67; failure to fulfil agreed responsibilities was ranked the seventh with a mean score of 3.55 and over design was ranked the eightieth with a mean score of 3.04.

Moreover, the results supports the work of Campbell (1997) under the consultant category it reveal the following as the major causes of disputes: Late information; Design errors; Design inadequacies; Late information; Incompetence information; Ambiguous specifications; Lack of appropriate competence; and Under-certifying.

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Table 2: Consultant related causes of disputes Causes of disputes MIS Rank Late information delivery 4.22 1 Incompleteness of drawings 4.12 2 Underestimation 4.06 3 Design oversight 3.84 4 Incompleteness of specification 3.81 5 Specification oversight 3.67 6 Failure to fulfil agreed responsibilities 3.55 7 Over design 3.04 8

Contractor related causes of disputes in construction projects Nevertheless, results shows the respondents ranking of factors that cause disputes in construction projects. It reveals that delay/suspension of works was ranked the first with a mean score of 4.06; failure to correctly bid or price the works was ranked the second with a mean score of 3.83;misinterpretation of the contract was ranked the third with a mean score of 3.83; failure to keep an updated programme plan was ranked the fourth with a mean score of 3.80;furthermore t table shows that inadequate coordination was ranked the seventh with a mean score of 3.65; reluctant to seek clarification was ranked the eightieth with a mean score of 3.47; inadequate CPM scheduling was ranked the tenth with a mean score of 3.35 and inadequate update requirements was ranked the eleventh with a mean score of 3.29. However, Campbell (1997) identified the following as the major causes of disputes; inadequate site management; Poor programming; Poor workmanship; Failure to follow conditions of contract; Inability to substantiate costs at the appropriate time. Table 3: Contractor related causes of disputes Causes of disputes MIS Rank

Delay / suspension of works 4.06 1 Failure to correctly bid or price the works 3.83 2 Misinterpretation of the contract agreement 3.83 3 Failure to keep an updated programme plan 3.80 4 Inadequate contractors management 3.80 5 Inadequate supervision 3.71 6 Inadequate coordination 3.65 7 Reluctant to seek clarification 3.47 8 Failure to execute the changes of works 3.45 9 Inadequate CPM scheduling 3.35 10 Inadequate update requirements 3.29 11

Effects of disputes in construction projects Table 4 reveals the respondents ranking of effects of disputes in construction projects. It shows that cost overruns was ranked the first with a mean score of 4.45; time overruns was ranked the second with a mean score of 4.43; loss of profitability was ranked the third with a mean score of 4.29, however, reworks was ranked the firth with a mean score of 3.94; loss of professional reputation was ranked the seventh with a mean score of 3.84; loss of company reputation was ranked the eightieth with a mean score of. Furthermore, loss of business viability was ranked the tenth with a mean score of 3.79 and litigation was ranked the eleventh with a mean score of 3.65.

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Table 4: Effects of disputes in construction projects Effects of disputes MIS Rank Cost overruns 4.45 1 Time overruns 4.43 2 Loss of profitability 4.29 3 Additional expenses in managerial and administration 4.19 4 Reworks 3.94 5 Relocation cost (men, equipment and material) 3.84 6 Loss of professional reputation 3.84 7 Loss of company reputation 3.82 8 Loss of respect between parties 3.81 9 Loss of business viability 3.79 10 Litigation 3.65 11

However, the findings are in general agreement with the study done by Yiu and Cheung, (2004) that states that ,as a result of issues arising in projects, conflict and disputes may occur, which can lead to the disruption of construction schedules, increased project costs, and even adversely influence relationships between project participants. Nevertheless, if a dispute is not resolved promptly; it may escalate, and ultimately require litigation proceedings, which can be extremely costly for the parties concerned (Cheung et al., 2004).

Conclusion and Recommendations

This results obtained confirms previous research that construction projects are generally complex and for this reason, disputes are always present and therefore a common feature of the construction industry. Nevertheless, the results of the survey gave an indication that, indeed, problems naturally arises on construction projects because of multiple stakeholders, human imperfections, and communication difficulties and thus disagreements will certainly arise because a project participant may fail to perform, respond properly and timely, communicate or understand construction information. Therefore, eliminating these problems or even reducing their magnitude can save project clients not only money, but the time and stress involved in having to deal with such problems. Additionally, researchers have found that the causes of construction disputes are primarily stakeholders (namely client, consultants and contractor) to any project are the main reasons for disputes on construction projects. However, at the end of the study, the researcher also established that, indeed, stakeholders such as client, consultants and contractor are a prime cause of construction disputes, and therefore the only solution to it as well. As a result of this, some specific recommendations were made to each of them to help prevent disputes early.

These recommendations are as follows:

 It is recommended that Clients should: Provide a good and clear brief to the design team; Set up independent contract review team to review the contract document as a whole; Appoint the appropriate project team to monitor the progress of works and carry out supervision; and have adequate funds for the project to make payments as and when due.

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 Moreover, Consultants should: Carefully, adequately and accurately prepare contract documents which are consistent throughout; identifying responsibilities and allocating risks to the party best able to control it; Providing specifications which are clearly written, reflecting the skills, materials and plant readily available and finally relating to the specific project; Refrain from simply adding to or deleting specifications from sets of previously employed documents and using them; and Preparing contract bills of quantities using adequate tender information so that there is accuracy in both descriptions and quantities;

 It is further recommended that Contractors should also do the following to help prevent disputes: Only tender for works you have expertise to do; do not accept any job when you sense that the job is going to be more trouble than it‘s worth. Use foresight rather than hindsight; Employ qualified staff; Pay attention to what is written in the contract and never skim over it without reading all of the terms and understanding what they mean.

 The strategies recommended and the specific recommendations made, when accepted and adhered to, will enable project managers and other stakeholders to address problems in a timely manner, thus allow projects to continue with minimum delay and disruption.

Acknowledgement

My special gratitude goes to:  My supervisors, Dr Clinton Aigbavboa and Mr Joseph Mulenga Mukuka, for their guidance, detailed supervision, useful suggestions, encouragement and constructive criticisms throughout this research.

 I would like to express my sincere gratitude and grateful appreciation to my boss Jannie De Beer for his invaluable guidance, advice, encouragement and help throughout the project.

 A special acknowledgement must be given to my sponsor and employer Tubular Holdings, for their financial support.

References Asniah, A. (2007) ―The profile of construction disputes‖. MSc, Universiti Teknologi Malaysia. Burns, N. & Grooves, K.G. ( 1993): The practice of Nursing Research Conduct, Critique and Utilization: Second Edition, Philadelphia: WB Saunders Company. Campebell, P. (1997).Construction disputes avoidance and resolution: Whittles publishing Roseleight House Latheronwheel: Scotland. Carmichael, D.G. (2002). ―Disputes and international projects‖: CRC Press: Boca Raton. Cheung, S.O., Suen, H.H.C., Ng, S.T.T. & Leung, M.L. (2004).‖ Convergent views of Neutrals and users about alternative dispute resolution‖. Journal of Management in Engineering, 20(3), pp. 88-96. Hall, J.M. (2002) Ineffective communication: Common causes of construction disputes. Alliance‘s Advisory Council Legal Notes. 13(2). Keil, J. (1999). ―Hybrid ADR in the construction industry. Dispute Resolution‖. Journal of Construction Management. 54(3), pp. 14–22.

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Kwakye, A.A. (1997). Construction project administration in practice: Addison Wesley Longman Limited: London. Levy, S.M. (2007). Project Management in construction 5th ed. McGraw Hill. Love, P.E.D., Edwards, D.J., Irani, Z. & Walker, D.H.T. (2008a). ‗Project pathogens: The anatomy omission errors in construction and engineering projects‖. IEEE Transactions on Engineering Management (In Press). Love, P.E.D., Davis, P., Baccarini, D. & Edwards, D. (2008b). ―Uncertainty avoidance: public sector clients and procurement selection‖. International Journal of Public Sector Management (In press). Love P.E.D. & Gunasekaran, A. Li (1998) Concurrent Engineering: A Strategy for Procuring Construction Projects, International Journal of Project Management, 16(6), pp. 375-83. Lowe, Fenn, P.D. & Speek C. (1997), Conflict and dispute in construction, Contract Management Economics, Journal of Management in Engineering, 18(1), pp. 20. Polit, D. & Hungler, B.P. (1993). Essentials of nursing research. Methods, appraisal and utilization: 3rd edition. Philadelphia: Lippincott. Rarooqui, R.U. & Azhar, S. (2014) Key Causes of Disputes in the Pakistani Construction Industry – Assessment of Trends from the Viewpoint of Contractors: 50th ASC Annual International Conference Proceedings. Yiu, K.T.W. & Cheung, S.O. (2004). ―Significant dispute sources of construction mediation‖. Proceedings of the 1st International Conference on the World of Construction Project Management, 27th-28th May, Toronto, Canada.

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An empirical analysis of dispute causation in the Limpopo construction industry ME Thobakgale and CO Aigbavboa Department of Construction Management & Quantity Surveying University of Johannesburg, South Africa [email protected] [email protected]

Abstract: The lack of information in the construction industry leads to many disputes during the construction process. Hence this paper investigates the dispute causation in the Limpopo construction industry. This is with an aim to provide a basis or the understanding of the range of values, attitudes, beliefs and behaviour displayed by these different professional groups involved in the construction process. This paper presents the results of the professional respondents on causes of disputes in the Limpopo construction industry. This article investigates the causes of dispute in the Limpopo construction Industry. The primary data for the study was collected through a structured questionnaire survey distribution to a sample of 51 professionals from the Limpopo construction industry. Findings revealed that there are four categories of disputes, which are construction related, contract related, management related and finance related causes of disputes, which each of those categories has factors dominating to the dispute causations. This study adds knowledge on causes of disputes in the construction industry.

Keywords: Construction, Dispute, Finance, Management, Limpopo Province, South Africa

Introduction

The construction industry imposes a number of challenges to those working in it; one important challenge is that the industry is dependent upon human interactions in the management of building projects (Weddikkara, 2003). In this industry it is important for those who manage the projects to deal with intricate relationships, and to consider the emotions, interactions and various types or reasoning that lie behind the actions and decisions taken by the participants. Hence, Ilter (2012) highlights that prevention of disputes becomes one of the most important processes that determine the performance of a construction project and it depends highly on sound understanding of dispute occurrence.

According to Love and Davis (2008), disputes are an endemic feature in the construction industry. When not properly resolved, they may escalate and ultimately require litigation proceedings, which can be extremely costly for the parties concerned, states (Cheung et al., 2004). Disputes always affect the productivity and performance of a project. Ankrah (2009) highlights that the history of construction points out that almost all projects face variation or poor performance with many projects failing to exceed to the expectation of the client thus, affecting time, cost and quality of the projects. According to (Love, et al., 2010), direct costs associated with disputes range from 0.5 to 5 percent of the projects contract value. The indirect costs, on the other hand, resulting from lost productivity, stress, fatigue, loss of future

195 work, the cost of strained business relationships among the various parties and tarnished reputation may cause even more damages to the parties involved. Therefore, this current research will investigate the perception of professionals on the causes of disputes and ways to mitigate them in the Limpopo province construction industry. This paper contains discussions on the theory of causes of disputes and dispute mitigation methods in the Limpopo construction industry. This paper makes significant insight onto how projects can be completed on time thus overcoming disputes in construction projects. The paper starts with an overview of causes of construction disputes, followed by the presentation of the methodology and findings from the data collected before conclusion is drawn.

Causes of disputes

In most developed countries, the construction industry accounts for over 50% of fixed capital formation each year, states (Weddikkara, 2003). It is also a complicated industry where different professionals work together to form a final product that a client‘s needs. Disputes are more likely to occur and disagreements to arise where there are more people with different views and opinions about a certain case. According to Waldon, (2006), scope changes, erroneous documentation, ambiguous contract conditions; continue to be fundamental contributors of disputes in the construction industry. There are a number of activities that, when not managed properly, can lead to disputes in the construction industry. The construction industry is characterized by temporary human relationships and contractual commitments (Weddikkara, 2003). Whilst, Farooqul et al. (2014) categorised disputes into the following groups as follows; construction related causes, financial / economical, management and contract related causes of disputes, which will elaborately discussed in the subsequent sessions.

Construction related causes of disputes In a study by Farooqul et al., 2014), an analysis of the responses of construction related causes of disputes depict that all of the respondents were said that ―unrealistic information expectations, unclear risk allocation and unfair risk allocation are those causes that are occurring most frequently and contributing in arising of disputes in the projects, their severity is also very high. Whereas unrealistic tender pricing is the most severe in nature in their projects, described by all of the respondents. Other causes of disputes are not significantly contributing in the projects in terms of their frequency and severity. Unrealistic tender pricing has been found to be the most and poor supervision is the least treacherous causes of disputes respectively as perceived by the contractors operating in the local construction sector.

Financial / economical causes of disputes According to Farooqul (2014), finance is one of the most important aspects of business management. In the context of construction business, "Project finance" refers to the financing of the project that is dependent on the project cash's flows for repayment as defined by the contractual relationships within each project whereas the financial function plays a significant role in ensuring that company objectives are compatible with its resources. For this reason the disputes have a monetary trait attached to it and it is of such magnitude which none of the project participant is ever ready to absorb. According to NaAyudhya (2011), it was found that financial dispute problems were ranked second in the serious dispute problem group and second in the domestic and international funded project group.

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The previous analysis of financial/economical causes of disputes elaborate that all of the respondents perceived that project participant‘s default is the most frequent cause of dispute and rising value of Rands is the most severe cause of disputes in construction projects, also their severity and frequency is respectively significantly high. Whereas inadequate financial strength of the project participants is also very severe and frequent cause of dispute in the construction projects described by most construction professionals.

Management related causes of disputes Effective management of projects is becoming increasingly important for any type of organization to remain competitive in today‘s dynamic business environment due to pressure of globalization. Through application of construction management tools and techniques and observing a sound project management system, majority of the causes of disputes can be avoided thereby reducing the chances that any dispute arises in the first place and if such thing come about it does not escalate to such a level that it is converted into a major conflict or breach of contract. Bielefeld and Rusch (2006) note that a building contractor is an individual who plan, develop and coordinate activities, which coincide with the building of structures. The building contractor is the individual who oversees the construction and ensures that all necessary measures are taken to result in the completed finished product.

A building contractor is someone with a wide range of duties and responsibilities when it comes to the construction of residences or businesses. This individual has a job that entails hard work and thorough review of many processes which accompany the building of structures. Their jobs could be at stake if they don‘t perform as required or if they don‘t deliver the desired final product of the clients. Disputes may occur if the contactor does not have adequate contractor‘s management, supervision and coordination and fails to plan and execute the changes of works. Reluctance to seek clarification can lead to serious disagreements between the construction team as the final product will not be achieved as specified.

Contract related causes of disputes According to Farooqul (2014,) the business environment is full of agreements between businesses and individuals and construction is no exception. While oral agreements can be used is more appropriate to opt for formal written contracts when engaging in operations. Written contracts provide individuals and businesses with a legal document stating the expectations of both parties and how negative situations will be resolved. Contracts also are legally enforceable in a court of law. Contracts often represent a tool that companies use to safeguard their resources. If there are some flaws in the formulation of contract documents, ambiguous language of the contract can be a cause of dispute. These causes and many others relevant to the domain of contract have a very high potential to be the source of diverse types disputes.

Research Methodology

197 province. The respondents were selected based on the fact that they have a qualification in a construction related field and have working experience in order to meet the research objectives. Random sampling was used to select the professionals in the construction industry ‘. According to Kombo and Tromp (2006), random sampling is the probability whereby people, place or things are randomly selected. Out of the 51 questionnaires sent out, all were received back representing 100% response rate and all were usable. A 5-point Likert type scale was used to analyse the ‗professionals‘ levels of agreement on the causes of disputes, ways to mitigate against them, and the common dispute resolution methods used in the construction industry of Limpopo. This was considered adequate for the analysis based on the assertion by (Mukuka et al., 2013) that the result of a survey could be considered as biased and of little value if the return rate was lower than 30% to 40%. Because the sample size for this study was relatively small, all groups of respondents were lumped together in the analysis in order to obtain significant results. The data were analysed by calculating frequencies and the mean item score (MIS) of the rated factors. The calculation of the MIS is explained in the next section. The research was conducted between the months of June to October, 2014. The questionnaire was designed based on the information gathered during the literature review and does not form part of an existing survey instrument.

Mean Item Score (MIS)

Following the mathematical computations, the criteria are then ranked in descending order of their relative importance index (from the highest to the lowest). The next section of the article presents the findings of the survey and some discussions. A 5-point Likert type scale was used to determine the causes of dispute in the South African construction industry with regard to the identified factors from the reviewed literature. The adopted scale read as follows, 1= Strongly disagree, 2= Disagree, 3= Neutral, 4= Agree and 5= Strongly agree. The five-point scale was transformed to mean item score (MIS) for each of the causes and resolution methods as assessed by the respondents. The indices were then used to determine the rank of each item. These rankings made it possible to cross compare the relative importance of the items as perceived by the respondents. This method was also adopted to analyse the data collected from the questionnaire survey.

The computation of the mean item score (MIS) was calculated from the total of all weighted responses and then relating it to the total responses on a particular aspect. This was based on the principle that respondents‘ score on all the selected criteria, considered together, are the empirically determined indices of relative importance. The index of MIS of a particular factor is the sum of the respondents‘ actual scores (on the 5- point scale) given by all the respondents‘ as a proportion of the sum of all maximum possible score on the 5- point scale that all the respondents could give that criterion. Weighting were assigned to each responses ranging from one to five for the responses of ‗strongly disagree‘ to ‗strongly agree‘. To determine the common causes of disputes between professionals in the Construction Industry, a 5- point likert scale was employed. The respondents were asked to rate to what extent the mentioned were common causes of disputes between professionals on construction projects on the scale from 1 – 5 (that is never, rarely, sometimes, often, always). The 5- point scale was transformed to a Mean Item Score (MIS) for each of the statements. A weight was assigned to each responds. The indices were then used to determine the rank of each item. The ranking made it possible to cross compare the relative importance of the statements as perceived by the respondents. The mean item score (MIS) is ranked in descending order from highest to lowest). The mean item score (MIS) was derived from the following formula (Lim and Alum, 1995).

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Findings and Discussion

It was found out that out of 51 respondents, (57%) were male and (43%) were female. The majority of the respondents (33.3%) were within the age group of 26-30, followed by (25.5%) of the respondents who belong to the group below 26. The ethnicity that comprises the majority of the respondents was blacks (66.7%), followed by (17.6%) whites. Majority of the respondents positions (35.3%) were quantity surveyors, followed by (23.5%) civil engineers. Majority of the respondents‘ highest education qualification were (41.2%) diploma, followed by (39.2%) bachelors‘ degree(s) and the minority were (7.8%) masters‘ degree. The respondents were asked the years of experience in the construction industry, (41.2%) had between 1-5 years, followed by (23.5%) 5-10 years. Majority of the respondents work for (51%) consultants, followed by (19.6%) clients and contractors, then (9.8%) were working for the government. The respondents were asked the number of projects they‘re involved in, (43.1%) were involved in 1-2 projects, followed by (27.5%) 3-4 projects. Majority of the respondents (54.5%) were involved in 1-2 projects impacted by disputes, followed by (25%) of respondents who were not in projects which were impacted by disputes. Respondents were asked the number of disputes experienced in projects they‘re currently involved in and (81.8%) were 1-5 disputes, followed by (15.2%) 6-10 disputes. Majority of the respondents projects which frequently encounter disputes (23.5%) were schools and renovations, followed by (12.3%) hospitals. Respondents were asked to view on how often the work program is affected by disputes, (48.5%) said always, followed by (21.2%) who said often or sometimes.

Construction related causes of disputes Respondents were asked to rate their opinion based on construction related causes of disputes in the construction industry. Based on the ranking of the weighted average from the mean item score (MIS) for listed statements (Table 1), it was observed that the majority was Lack of professionalism of project participants, Lack of machinery and plants, Reluctance to seek clarification by the contractor, and lack of competence of project participants, Inappropriate selection of subcontractors, Poor supervision, Lack of appropriate level of man power,Unrealistic tender pricing, Unrealistic information expectations, Unfair risk allocation, Unclear risk allocation was ranked last.

Table 1: Construction related causes of disputes Aspect MIS Std. Dv. Rank Lack of professionalism of project participants 4.08 0.534 1 Lack of machinery/ plants 4.02 0.845 2 Reluctance to seek clarification by the contractor 4.00 0.782 3 Lack of competence of project participants 4.00 0.571 3 Inappropriate selection of subcontractors 3.94 0.843 4 Poor supervision 3.86 0.756 5 Lack of appropriate level of man power 3.84 0.792 6 Unrealistic tender pricing 3.78 0.737 7 Unrealistic information expectations 3.72 0.858 8 Unfair risk allocation 3.68 0.844 9 Unclear risk allocation 3.62 0.878 10

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The findings of the present study disagree with findings from previous researchers. For instance Farooqui and Azhar (2014), which both found that the main factors that influence the cause of construction related disputes were unrealistic tender pricing, poor supervision and unrealistic information. Whilst the current study revealed that lack of professionalism of project participants, lack of machinery/plants and reluctance to seek clarification by the contractor were found to be the major factors that can cause construction related causes of disputes as shown in (Table 1).

Contract related causes of disputes Likewise, respondents were asked to rate their opinion on contract related causes of disputes in the construction industry. Based on the ranking of the weighted average from the mean item score (MIS) for listed statements (Table 2), it was observed that the majority was Breaches of contract by the project participants, exaggerated claims, unrealistic tender pricing, Untimely presentation of claims, Ambiguous contract documents and Contract clause interpretation, Ambiguous contract language. These findings were found to disagree with the works of Waldron (2006) which found that the main factors that influence the cause of construction related disputes were contract interpretation and late incomplete or substandard information. Whilst the current study revealed that breach of contract by project participants, exaggerated claims and unrealistic tender pricing are the major factors that can cause contract related causes of disputes as shown in (Table 2).

Table 2: Contract related causes of disputes Aspect MIS Std. Dv. Rank Breaches of contract by the project participants 4.16 0.874 1 Exaggerated claims 3.94 0.689 2 Unrealistic tender pricing 3.86 0.707 3 Untimely presentation of claims 3.82 0.727 4 Contract clause interpretation 3.51 0.893 5 Ambiguous contract documents 3.51 0.960 5 Ambiguous contract language 3.39 1.037 6

Management related causes of disputes Respondents were asked to rate their opinion on management related causes of disputes in the construction industry. Based on the ranking of the weighted average from the mean item score (MIS) for listed statements (Table 3), it was observed that the majority was Negligence was, Inappropriate payment schedule, Poor procurement management, Poor communication, and Changing of orders, Poor procurement management and Unrealistic expectations, Poor coordination, Inadequate contract administration, Lack of risk management, Unrealistic construction schedule, Lack of team spirit, Lack of contingency provision in schedule.

These findings were found to disagree with the works of Kumaraswamy (1997) and Yiu and Cheung (2004) which both found that the main factors that influence the cause of construction related disputes were inaccurate design information, Inadequate design information, Delay in work progress and inadequate site investigations. Whilst the current study revealed that negligence, inappropriate payment schedule and inappropriate contract type are the major factors that can cause management related causes of disputes as shown in (Table 3).

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Table 3: Management related causes of disputes Aspect MIS Std Dv. Rank Negligence 4.08 0.891 1 Inappropriate payment schedule 4.06 0.705 2 Inappropriate contract type 4.00 0.748 3 Poor communication 3.96 0.662 4 Changing of orders 3.96 0.662 4 Poor procurement management 3.88 0.84 5 Unrealistic expectations 3.88 0.621 5 Poor coordination 3.84 0.834 6 Inadequate contract administration 3.8 0.872 7 Lack of risk management 3.75 0.935 8 Unrealistic construction schedules 3.73 0.75 9 Lack of team spirit 3.67 0.864 10 Lack of contingency provision in schedules 3.59 0.726 11

Financial related causes of disputes Furthermore, respondents were asked to rate their opinion on financial related causes of disputes in the construction industry. Based on the ranking of the weighted average from the mean item score (MIS) for listed statements (Table 4), it was observed that the majority was Inadequate financial strength of the contractor, Delay in payments, Project participants default of payments, Material price fluctuations, Rising value of Rand. These findings were found to be in agreement with the works of Cheung and Yui (2006) which both found that the main factors that influence the cause of construction related disputes were delay in payment and project participants‘ default of payments. Whilst the current study revealed that inadequate financial strength of the contractor, delay in payments and participant‘s default of payments are the major factors that can cause management related causes of disputes as shown in (Table 4).

Table 4: Financial related causes of disputes Aspect MIS Std. Dv. Rank Inadequate financial strength of the contractor 4.30 0.65 1 Delay in payments 4.28 0.76 2 Project participants default of payments 3.62 0.90 3 Material price fluctuations 3.06 0.84 4 Rising value of rand 2.90 0.71 5

From the survey results obtained from the respondents, lack of professionalism of project participants, lack of machinery / plants, breaches of contract by project participants, exaggerated claims, negligence, inappropriate payment schedule, inadequate financial strength of the contractor and delay in payments were the major causes of disputes in Polokwane, Limpopo. Therefore, it can be concluded that making payments on time, planning and funding would highly reduce construction disputes in Polokwane. Hence, it can be inferred that the research objective was met based on the findings from the structured questionnaire survey

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Conclusion and Further Research

Literature review showed that construction related causes of disputes are at different levels ranging from construction related, contract related, management related and financial related causes of disputes. The literature showed that each category of the causes of disputes had different factors that can lead to disputes on construction projects. This study examined causes of disputes between professionals in construction projects from the four identified categories as compiled from the extensive literature review. Findings from the study supported work done by previous researchers and scholars that not a singular factor is responsible for causing disputes on construction projects. The empirical study, although based on small sample of construction professionals in Polokwane, indicate findings of the causes of disputes in Polokwane, Limpopo. In terms of reliability of the methodology adopted, when the procedure is followed in a bigger and more diverse sample, findings would justify the current study. Therefore, the results revealed in this study give valuable insights for the improvement of much better ways of running construction projects to avoid disputes. Further research includes:

 An evaluation of ways of minimising disputes in the construction industry.  An evaluation of the effective dispute resolution methods used in the South African construction industry.  An investigation into the challenges facing the construction industry in Limpopo.  An evaluation on the relationship between the consultants and contractors in Polokwane.  An investigation of the challenges that are faced by contractors in Polokwane.  An evaluation on the relationship between professional culture and disputes in the construction industry.

References Ankrah, N.I. (2009) An investigation into the impact of culture on construction project performance. University of Wolverhampton. Bielefeld, B. & Rusch, L.P. (2006) Building projects in China. A manual for Architects & Engineers, pp. 68. Cheung, S.O., Seun, H.H.C., Ng, S.T.T. and Leung, M.L., (2004) Convergent views of neutrals and users about alternative dispute resolution. Journal of Management in Engineering, 20(3), pp. 88. Cheung, S. and Yiu, T. (2006) Are construction disputes inevitable? IEEE Transactions on Engineering Management, 53(3), pp. 456-470. Farooqul, R.U., Umer, M. and Azhar, S. (2014) Key causes of disputes in the Pakistani construction industry- assessment of trends from the viewpoint of contractor. NED University of Engineering and Technology Karachi, Pakistan. Ilter, D. (2012) Identification of the relation between dispute factors and dispute categories in construction projects. International Journal of Law in the Built Environment, 4(1), pp. 46. Kombo, D.K. and Tromp, D.L.A. (2006) Proposal and thesis writing: An introduction. Nairobi, Kenya: Paulines publications for Africa. Kumaraswamy, M. (1997) Conflicts, claims and disputes in construction. Engineering, Construction and Architectural Management, 4(2), pp. 95-111. Lim, E.C. and Alum, J. (1995) Construction Productivity: Issues encountered by contractors in Singapore.‖ International Journal of Project Management, 13(1), pp. 51-58.

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Love, P., Davis, P., Ellis, J. and Cheung, S.O. (2010)Dispute causation: identification of pathogenic influences in construction. Engineering, Construction and Architectural Management, 17(4), pp. 404-423. Love, P., Davis, P., Ellis, J. (2008) Dispute causation identification of pathogenic influence in construction. Department of Construction Management, Curtin University of Technology, Perth, Australia. Mukuka, M.J., Aigbavboa, C.O. and Thwala, W.D. (2013) Construction professional‘s perception on the causes and effects of project delay in Lusaka, Zambia. NaAyudhya, B.I. (2011). Common disputes related to public work projects in Thailand. Thailand. Thomas, K.W. and Kilmann, R.M. (1974) Thomas-Kilmann conflict mode instrument, Xicom, Tuxedo, New York. Waldron, B.D. (2006), ‗Scope for improvement: a survey of pressure points in Australian construction and infrastructure projects‘. A report prepared for the Australian constructors Association by Blake Dawson Waldron lawyers, Sydney. Weddikkara, C. (2003), The impact of professional culture on dispute resolution in the building industries of Australia and Sri-Lanka, Murdoch University. Yiu, K. and Cheung, S. (2004) Significant dispute sources of construction mediation. In: 1st International Conference World of Construction Project Management, Toronto, Canada.

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Exploratory study of critical success factors of road infrastructure projects in Abuja, Nigeria: A probabilistic approach 1Ibrahim Binchak, 2Emmanuel Achuenu and 3Ache Achuenu 1,2Department of Building, University of Jos, Nigeria 3Department of Urban and Regional Planning, University of Jos, Nigeria [email protected] [email protected] [email protected] Abstract: The relative importance criterion most often used in surveys does not evaluate the probability of success or impact of the Key Performance Indictors (KPIs) on project performance. It is therefore necessary to adopt an effective two dimensional model, in which both probability and impact factors can be quantified and a common ranking parameter determined. It was based on this that the research aimed at carrying out a compressive study of critical success factors (CSF) of road infrastructure projects in Abuja, Nigeria using probability approach with a view to developing a framework for assessing these factors. The method adopted in carrying out the research was by the use of structured questionnaires. A total of 50 sets of structured questionnaires were distributed to 50 participants out of which 35 returned but only 30 were used in the analysis. The results of probabilities and the impacts of the Construction Project Monitoring (CPM) factors provided by 30 participants were used to calculate the Success Indices (훈) which enabled ranking of the factors. It was found out that the highest impact on project success was availability of resources with success index of 0.67, followed closely by inadequacy of trained labour force (0.62) and the least were site inconsistencies and ecological factors (0.04), environmental performance deficiencies and impacts (0.04) and social demands and regional complications (0.04). A framework for assessing critical success factors in road infrastructure projects was developed and hereby recommended for effective project delivery. Although, there are numerous factors that affect the performance of road infrastructure projects in Nigeria, the necessary mitigation measures require a well-developed scale from which the weight of each factor can be assessed and the required resources allocated to enhance solution development.

Keywords: Infrastructure, Performance evaluation, Road, Nigeria

Introduction Performance measurement involves the collection and comprehensive analysis of information about various activities, specifically work in place and the corresponding work-hours over a given period of time. Work hours, quantity and productivity are evaluated against the planned or baseline values used in project estimates (Lin and Shen 2007; Ikediashi et al., 2012). The most commonly accepted performance indicators are those that can be physically measured in terms of naira equivalent (cost) and man-hours (time). Like any other business, construction companies look first to the areas which show a change in the amount of revenue generated. Without a measurable improvement in terms of a cost reduction or a quantifiable increase in productivity, most managers will consider the changes a failure (Ikediashi et al., 2012).

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According to Westerveld (2003), project success is the satisfaction of all stakeholders however, perceiving project success simply as the compliance with time, cost and quality constraints is viewed as narrow in this respect. Wateridge (1998) and Lim and Mohammed (1999) opine that it is impossible to generate a universal checklist of project success criteria suitable for all projects. Success criteria will differ from project to project depending on a number of issues, for example, size, uniqueness and complexity. In order to develop a model for projects that links success criteria and success factors a more flexible approach seems appropriate. This more flexible approach lies in using clusters of possible success criteria. Assuming that criteria defining project success is different for each project, a universal clustering of criteria can be formulated to cover the whole issue of project success (Westerveld, 2003; Belassi and Tukel, 1996).

Aibinu and Jagboro (2002) identified several factors responsible for time delays and cost overruns, which further result in poor performance of Nigerian construction projects. Aibinu and Odeyinka (2006) also asserted that deficiencies in project management, performance assessment, and internal controls contribute to project delays and further impact upon performance outcomes. As evidenced recently in Nigeria Politico (2012), six delayed major road projects including ―Shagamu-Ore-Benin road, Abuja-Lokoja project, Kano-Maiduguri Expressway, Onitsha-Enugu-Port Harcourt Expressway, Second Niger Bridge, and Oweto Bridge‖ have all failed to meet their timeframe objectives as a direct result of serious contract-based disputes and discrepancies.

In order to study the performance of road projects, a quantitative approach has been adopted in this study. Pakseresht and Asgari (2012) asserted that project performance is affected by several critical success factors, whose impact cannot be quantified directly. However, a numerical scale can be developed to assess different attributes of the identified factors. Similarly, Shen et al. (2001) asserted that questionnaire data can be evaluated using probabilistic models, provided a method is developed to convert participants‘ opinions along a numerical scale. In a study by Willis and Rankin (2012), the relationship between performance and maturity of construction industry in Guyana was demonstrated numerically through conversion of a string coded scale into a numerical scale. The current performance evaluation frameworks from literature are based on either qualitative data arranged in the form of flow charts or quantitative data based on relative importance. According to Shen et al. (2001), relative importance criterion is a one dimensional approach that fails to take into account other important parameters. According to Cox et al. (2003) and Chan and Chan (2004), the KPIs are good indicators of the performance of construction projects and provide a useful framework for measuring and comparing project performance. Haponava and Al-Jibouri (2012) proposed a performance evaluation system based on key performance indicators (KPIs), and developed a ranking criterion based on a two dimensional model, that was further reviewed by Ozorhon, Dikmen and Birgonul (2011).

In a research by Shen and Liu (2003), it was found that the weight of critical success factors (CSFs) for a construction project can be determined through the use of the available two dimensional models developed by past researchers. In this regard, a two dimensional model based on probability and impact, has been selected for the framework developed in this research. The two dimensional model, first introduced by Shen et al. (2001), was adopted in this research as the main evaluating tool. Initially, the model was developed for use in determining the significance index (SI) for a total of 37 identified risk factors (Shen et al.,

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2001). However, the model was further modified by Ningyuan et al. (2013) and used to evaluate different performance indicators associated with pavement construction in Canada. It has been argued that a two dimensional model consisting of two attributes: probability of occurrence and impact associated with the occurrence of the first attribute can be used to provide an effective measure of score (Shen et al., 2001; Rankin, 2012; Subramanyan, Sawant and Bhatt, 2012; Nassar, and Hosny, 2013). The original model used by Shen et al. (2001) is stated in equation 1:

Where, β is the probability of occurrence and α, the impact associated with the occurrence of attribute β. However, the formulation only shows that SI is a function of attributes . This approach has not been tested and applied in studying road construction projects in Nigeria.

Thus, the main aim of this research was to carry out a compressive study of CSFs of road infrastructure projects in Abuja, Nigeria using probability approach in order to develop a framework for assessing these factors.

Research Methodology

The method adopted in collecting the data in this research was by the use of structured questionnaires. All survey participants were project managers identified through direct contact with leading Civil Engineering Construction Firms in Abuja. A total of 50 sets of structured questionnaires were distributed to 50 participants. Out of the 35 returned, 5 were disqualified because of inconsistent responses to some of the questions.

The result of probabilities and the impacts of the CPM factors responded by 30 participants were used to calculate the Success Index (훈) using (Kansal and Sharma, 2012),

Where, is the probability of occurrence of factor a, as responded by participant (b) while is the impact of occurrence by the same respondent. The success indices were then used to rank the success factors Findings and Discussion

Performance Management in the Abuja Civil Engineering Construction Industry From the results, 83.3% of the respondents reveal that in their firms, performance monitoring is based upon project outcomes, not the processes which facilitate those outcomes. Also, 26.7% identified Information Technology (IT) infrastructure as the primary resource for cross team communication, a factor which may be tied to procedural and resource-based limitations within these organisations. Furthermore, 70% agreed that their organisations required improved information and knowledge management. It is argued that core deficiencies in technical, human, and physical resources contribute to fragmented performance monitoring, an outcome which may result in constraints over the long term. Out of the respondents,

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93.3% agreed that performance evaluation outcomes should be shared with the entire construction team, 56.6% reported that their organisations do not allow participation in decision making processes. This finding is particularly important in light of the requirements of a comprehensive, participative Project Evaluation Framework (PEF) within such a complex industry as Civil Engineering Construction.

Most of the respondents (96.7%) indicate that frequent design changes and adaptations result in cost overruns for the project, while 83.3% indicated that time constraints are due to bureaucratic or policy issues. It was stated that two of the leading performance impact variables, cost and time, affect road projects in spite of controls systems. Some of the respondents (40%) suggest that PEF are idealistic in nature and not realistic, whilst 56.7% confirmed that KPI must include consequences (financial penalties, lost contracts, etc.) in order for them to have value within the projects. All the participants (100%) agreed that each project presents a unique set of challenges that require a more realistic PEF.

It was observed from the results that 83.3% of the respondents confirmed that more effective contracting can provide opportunities for performance improvement. However, the prevalence of external influences was identified by 96.7% as a core limitation on effectiveness and decision making outcomes. The respondents (70%) also rejected the claim that their firms aim for speed and quality over procedural management, while 63.3% rejected the informal performance monitoring framework as superior to a more formal PEF. In the same vein, half reported that their firms do not actually invest in employee training or Continuous Professional Development (CPD).

Relative Importance of PEF in Road Construction

The survey respondents ranked 15 of those possible factors according to their relative importance in performance benefits gained through PEF-based organisational monitoring. Table 1 shows that PEF benefits result in positive impacts on time from design to completion (1.50), the reduction of time overruns and project consequences (1.57), and the reduction of cost overruns and unforeseen risks (1.67).

Table 1: Relative importance of PEF benefits to organisational monitoring Time from design to completion 1.50 Time overruns and project consequences 1.57 Cost overruns and unforeseen risks 1.67 Communication and team cohesion 1.80 Site controls and record keeping 2.10 Per unit costs of materials 2.20 Managerial oversight and decision making performance 2.23 Structural integrity and resilience 2.30 Energy consumption during manufacturing 2.36 Environmental impact and CO2 emissions 2.40 General quality of the outputs 2.43 End user satisfaction 2.63 Accident rate during build 2.82 Information controls and system monitoring 2.90 Construction team satisfaction 3.23

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Computation of the Success Index, The mean value, R for each of the 15 CPM factors was computed and the corresponding values determined. Also, the values of and were calculated and included in table 2. Specifically, the mean rank R, was calculated using equation 2 where N was substituted with 30 and 3 for and α. From equation 2, the value of the success index was obtained through multiplication of attributes α and for a given CPM factor. Considering the initial relative importance ranking, and comparing it with above results based on the success index, a significant change was observed. This implies that the one dimensional approach may lead to poor results, since some important attributes are left out during analysis.

Table 2: Probability and impact of various CPM factors on project success CPM factor Mean Rank Resource availability and general ease of access 1.63 0.67 1 0.67 1 Adequacy of trained labor force 1.63 0.67 1 0.67 1 Quality of materials and/or products 1.9 0.62 1 0.62 2 Poor managerial oversights and decision making 2.03 0.59 1 0.59 3 Government pay delays for parcel release 2.1 0.58 1 0.58 4 Design changes and adaptations during construction 1.73 0.65 0.83 0.54 5 Poor quality workmanship and finishing 1.73 0.65 0.67 0.44 6 Transport system deficiencies or lack of 2.1 0.58 0.67 0.39 8 infrastructure Time deficiencies or inaccurate prediction overruns 2.67 0.47 0.83 0.39 8 Material cost overruns and inconsistencies 2.07 0.59 0.5 0.3 9 General cost overruns due to multiple factors 1.67 0.67 0.37 0.25 10 Unforeseen or unpredicted risks 1.73 0.65 0.37 0.24 11 Site inconsistencies and ecological factors 3.27 0.35 0.37 0.13 12 Environmental performance deficiencies and impacts 3.13 0.37 0.1 0.04 15 Social demands and regional complications 3.03 0.39 0.1 0.04 15

From the results, it can be seen that availability of resources is obtained from the analysis to have the highest impact on project success with success index of 0.67 followed closely by inadequacy of trained labour force (0.62) and the least were site inconsistencies and ecological factors (0.04), Environmental performance deficiencies and impacts (0.04) and Social demands and regional complications (0.04). It could be observed from the results that the introduction of impact and probability in the assessment of the success factors lead to an improvement in the ranks as suggested by Shen et al (2001) and Shen and Liu (2003).

Project Evaluation Framework Figure1 presents framework developed in this study for assessing critical success factors in road infrastructure projects. The evaluation framework developed depends on experts‘ opinions, judgment and solutions from the results of the survey. Although, the probabilistic processes used to determine the success indices for various CPM factors assists the processes of judgement and solution development, expert judgment was very strategic.

The framework consists of five stages, executed systematically from identification of CPM factors to development of mitigation measures. Although, there are numerous factors that affect the performance of road infrastructure projects in Nigeria, the necessary mitigation measures require a well-developed scale from which the weight of each factor can be assessed and the required resources allocated to enhance solution development. This is consistent with Aibinu and Odeyinka (2006), that project performance in the construction industry is mainly affected by factors that need positive control and monitoring. As such,

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feasible control and monitoring measures should be developed in order to ensure that each of the identified factors remain within the required range based on project requirements.

Experts’ judgement A Road infrastructure A Social CPM Environmenta l CPM factors performance factors

factors B Experts’ Judgemen B t Site consistency and Social demands, Adherence to environmental Regional requirements and A policies End user needs

Technical Management CPM factors CPM factors Financial CPM C factors C factors factors B B Adequacy of trained factors Decision making,

labour, B Quality of services, Design changes, products and materials, Transport system Consistency of material Risk management, cost, deficiencies, Workmanship, Government pay delays for State and availability of Coordination, parcel release, infrastructure, End user satisfaction Cost overrun due to Resource availability, Safety features multiple factors

C C C

Expert judgement D D

E E Success Success Index Impact probability α) (훈) factor ( factor (β)

s’

s’ Mitigation

Measures

Ideas

Expert

Ideas

Expert

Figure1. Framework for assessing critical success factors in road infrastructure Projects

Conclusions and Recommendations It could be concluded that in most construction firms, performance monitoring is based upon project outcomes, not the processes which facilitate those outcomes. Most firms require

209 improved information and knowledge management. More so, core deficiencies in technical, human, and physical resources contribute to fragmented performance monitoring, an outcome which may result in constraints over the long term. Although, it was the general opinion of the respondents that performance evaluation outcomes should be shared with the entire construction team, however, most of the firms do not allow participation in decision making processes. This finding is particularly important in light of the requirements of a comprehensive, participative PEF within such a complex industry as Civil Engineering Construction.

There is need for adequate resources and properly trained labour to be made available from inception as these have the highest impacts on project success. The work was able to demonstrate that in determining the critical success factors, the impact and probability of occurrence play very crucial role rather than merely depending on just mean score for ranking. This provided a basis for the development of a framework in this study which is recommended for carrying out the assessment of critical success factors for road projects in Abuja in order to ensure timely and optimal delivery of such projects.

References Aibinu, A.A. & Jagboro, G.O. (2002). The Effects of Construction Delays on Project Delivery in Nigerian Construction Industry. International Journal of Project Management, 20: 593– 599. Aibinu A.A. & Odeyinka, H.A. (2006). Construction delays and their causative factors in Nigeria. Journal of Construction Management, 132(7): 667–677. Azevedo, R., de Oliveira Lacerda, R., Ensslin, L., Jungles, A. & Ensslin, S. (2013). Performance Measurement to Aid Decision Making in the Budgeting Process for Apartment-Building Construction: Case Study Using MCDA-C. Journal of Construction Engineering and Management, 139(2): 225-235. Belassi, W. & Tukel, O.I. (1996). A new framework for determining critical success / failure factors in projects. International Journal of Project Management, 14(3):141–5. Chan, A.P.C. & Chan, A.P.L. (2004). Key performance indicators for measuring construction success. International Journal of Benchmarking, 11(2): 203 – 221. Cox, RF., Issa, R.R.A. & Ahrens, D. (2003). Managements‘ perception of key performance indicators for construction. Journal of Construction Engineering and Management, 29(2): 142 –151. Yeung, J.Y., Chan, A.C., Chan, D.M., Chiang, Y.H. & Yang, H. (2013). Developing a Benchmarking Model for Construction Projects in Hong Kong. Journal of Construction Engineering and Management, 139(6): 705-716. Haponava, T. & Al-Jibouri, S. (2012). Proposed System for Measuring Project Performance Using Process-Based Key Performance Indicators. Journal of Management in Engineering, 28(2): 140-149. Ikediashi, D.I., Mendie, A., Achuenu, E. & Oladokun, M.I. (2012). Key Performance Indicators of Design and Build Projects in Nigeria. Journal of Human Ecology, 37(1): 37- 46 (2012). Lim C.S. & Mohamed M.Z.(1999). Criteria of project success. International Journal of Project Management, 17(4):243–8. Nassar, K. & Hosny, O. (2013). Fuzzy clustering validity for contractor performance evaluation: Application to UAE contractors. Automation in Construction, 3(1): 158-168. Ningyuan, L., Susan, T., Guoping, Q. & Zhaohui, L. (2013). The Roles of Applied Performance Indicators in Network Pavement Management -Canadian Experience. International Journal of Pavement Research and Technology, 6(5): 673-678.

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Ofori, D.F. 2013. Project Management Practices and Critical Success Factors-A Developing Country Perspective. International Journal of Business and Management, 8(21): 14-31. Ozorhon, B., Arditi, D., Dikmen, I. & Birgonul, M. (2011). Toward a Multidimensional Performance Measure for International Joint Ventures in Construction. Journal of Construction Engineering and Management, 137(6): 403-411. Pakseresht, A. & Asgari, G. (2012). Determining The Critical Success Factors In Construction Projects: AHP Approach. Interdisciplinary Journal of Contemporary Research in Business, 4(8): 383-393. Shen, L.Y., Wu, G.W.C. & Ng, C.S.K. (2001) Risk Assessment for Construction Joint Ventures in China, Journal of Construction and Engineering Management, 127(1): 76-81. Shen, Q. & Liu, G. (2003). Critical Success Factors for Value Management Studies in Construction. Journal of Construction Engineering and Management, 129(5): 485. Valdes-Vasquez, R. & Klotz, L.E. (2013). Social Sustainability Considerations during Planning and Design: Framework of Processes for Construction Projects. Journal of Construction Engineering and Management, 139(1): 80-89. Wateridge, J. (1998). How can IS/IT projects be measured for success. International Journal of Project Management, 16(1):59–63. Willis, C J. & Rankin, J.H. (2012). Demonstrating a linkage between construction industry maturity and performance: a case study of Guyana and New Brunswick. Canadian Journal of Civil Engineering, 39(5): 565-578. Zeynalian, M., Trigunarsyah, B. & Ronagh, H.R. (2013). Modification of Advanced Programmatic Risk Analysis and Management Model for the Whole Project Life Cycle's Risks. Journal of Construction Engineering and Management, 139(1): 51-59. Subramanyan, H., Sawant, P.H. & Bhatt, V. (2012). Construction Project Risk Assessment, Development of Model Based on Investigation of Opinion of Construction Project Experts from India. Journal of Construction Engineering and Management, 138(3): 409-412. Kansal, R.K. & Sharma, M. 2012. Risk Assessment Methods and Application in the Construction projects. International Journal of Modern Engineering Research (IJMER), 2(3): 1081-1085.

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Direct and indirect causes of rework and their impact AO Aiyetan Department of Built Environment, Central University of Technology, Free State, South Africa [email protected]

Abstract: Rework, the doing of work at least one more time due to non-conformance to specification could be caused by direct and indirect factors. Rework could arise as a result of changes from client, construction errors and other wise. Rework are detrimental, therefore actions necessary to reduce their effect should be sort at all times. The aim of the study is to identify causes of rework associated to direct and indirect factors with a view to mitigating their impact. The study was conducted in Lagos, Nigeria. The sampling frame consisted of architects, builders, quantity surveyors, and engineers. Random sampling technique was used in the selection of samples. A total of 63 samples representing the respondents were used for the data analysis. Descriptive statistics was employed for the analysis of data. Findings include that poor management, lack of supervision and coordination in construction and omission from specification are the direct causes of rework and the main factor of indirect causes of rework is lack of qualified staff. Conclusion include that these causes of rework result in cost and time increases and ultimately affects contract quality level. Therefore, it is recommended that good construction method and coordination should be used during construction, at the construction stage, supervision of work must be thorough, and adequate information and communication should be ensured.

Keywords: Construction, Rework, Nigeria

Introduction

The Construction Industry plays a very important role in any nation‘s economy. It involves dealing with stakeholders in the Construction Industry with different interest and influence on a project, which may lead to changes / variations. Alwi (2002) and Josephson (2002) declare that rework is considered as a non-value adding endemic symptom that seriously affect performance and productivity aspects in construction project. Rework on projects is a direct result of poor quality of resource factors that a component is compounded with, with consent (cutting corners to save money or workers cheating on contractors) or without it. Rework is an endemic feature that constitutes to time and cost overruns on projects. The primary sources of rework in construction are largely from design changes, errors and omission (Love,1999). An inappropriate selection process may lead to selecting a bad contractor, which lead to problems relative to delivery and culminate in disputes between client and contractor, waste of resources and probably abandonment of project. Rework can also occur as a result of substandard product or poor quality of materials emanating from the subcontractor. Love (1997) identified that poor workmanship that accounts for about 1.5% of the total cost of rework in building projects can lead to client dissatisfaction. The tastes of client in the construction industry are becoming high, so are the construction methods becoming complex and dynamic. In order to improve quality of construction products in Lagos state, Nigeria, a study of direct and indirect causes of rework was initiated.

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Literature Review

Direct Rework Causes

The direct rework causes are those occurrences that will lead to rework, such as, poor workmanship, poor supervision, poor quality material, deviations from drawings, and errors and omissions in drawings.

Poor workmanship

Dissatisfaction of client, consultants and probably the contractor as a result of the final state of components and products could be traceable to poor workmanship these manifest as defects (Wai Kiong and Sui Pheng, 2005). These can bring objectives of projects not to be accomplished, customers‘ needs are not satisfied and specifications not achieved. Poor workmanship could be as a result of quality related events, lack of skill, lack of knowledge, carelessness, hard to build and unclear project information. Factors that contribute to poor workmanship are, poor project management (Dai et al. 2009; Jha and Chockalingam, 2009), complicated role of subcontractor (Khalid et al. 2006 Chan et al. 2006), lack experience and competency of labours (Kazaz and Birgonul 2005), language barrier to communication and lack of communication (Augusto et al., 2009), unsuitable construction equipment (Kazaz and Birgonul, 2005), poor weather condition (Dai et al., 2009), and limited time and cost.

Poor supervision

Commitment and being focus is required for adequate supervision. Carelessness and a lack of focus result in poor supervision and cause great consequences, such as, fatal accident (Bomel, 2003). Inappropriately low levels of supervision and guidance to workers, which was perceived to be more a result of heavy workloads rather than an overt neglect of responsibility, particularly across the hazardous industries result in the aforesaid. Factors that contribute to insufficient supervision include: lack of supervision and coordination in construction; lack of assessment of workers performance; lack of training for work; inadequate report production; lack of personnel, and lack of creating method to fulfill work schedule requirement.

Deviation from drawing

Deviation from drawings refers to the non-compliance to project drawings, whether contract plans or approved shop drawings. Work not executed as per drawings should be rectified and redone. Omissions and errors on drawings should be rectified before executing them. Factors contributing to deviation from drawings leading to rework are: omission from specification; non-adherence to specification; and inadequate information (Acharya et al., 2006).

Indirect Rework Causes

Indirect rework causes refer to occurrences that create the situations resulting in rework. These consist of improper subcontractor selection, improper work protection, lack of coordination, and improper work sequencing.

Improper subcontractor

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Inappropriate selection of subcontractors may be detrimental to the overall performance of a project. For the general contractor to select the most appropriate subcontractor, the contractor should consider the subcontractor's financial and technical capabilities. The selection of an incompetent subcontractor may warrant the production of poor quality workmanship requiring rework.

Improper work protection

Construction activities are affected by weather. Since construction activities are carried out in the open, they are susceptible to prevailing weather conditions. This adverse weather conditions are rain and extreme heat. The lack of protection of work after construction could damage product. Rain will damage the surface of concrete and weaken it strength when not protected.

Lack of coordination

Coordination will affect effective coordination of resources with respect to materials in stock, materials needed and ordering dates. Together these will ensure a smooth flow of activity and timely delivery of the project. Jha and Iyer (2005) maintain that coordination among project participants and resources positively influence the delivery of projects. The lack of coordination could lead to mistakes, activities done at the wrong time and cause rework.

Improper work sequencing

Improper work sequencing causes work not to be done in chronological order. For example, the casting of upper floor concrete without lying of electrical pipes. This will lead to rework. Approval should be sort at all stages of construction activities. This will afford adequate inspection of work and identification of errors before executing the work and eliminate rework.

Effect of Delay

Delay has multiplying effect and adverse effects on a project. Aibinu and Jagboro (2002), Sambasivan and Yau (2007); Odeh and Battaineh (2002); Othman et al. (2006) and Sun and Meng (2009) identified the effects of delay on projects to include : cost overrun; extension of time (EOT); late payment Nichol (2008) and Still (2000); rescheduling Vieira et al. (2003) and Liu and Shih (2009); affect company reputation Djordjevic and Djukic (2008) and Ismail et al. (2006); lost productivity and efficiency McDonald and Zack (2004), and loss of materials Rodriguez and Bowers (1996).

Research Methodology

The study aims to assess direct and indirect factor causing rework on construction projects. The study was conducted in the Western part of Nigeria among registered professional members of the various professions in the Building Construction Industry in Lagos State. The sample frame consists of architects (100), quantity surveyors (82) and builders (88). They were accessed through their various professional bodies in Lagos. The sample sizes are: architect (85), builders (72) and quantity surveyors (68). The random sampling technique was used for the selection of samples. Questionnaire survey was conducted. Questionnaires were administered via post. Twenty eight percent (28%) response rate was achieved. Descriptive

214 statistics is employed for the analysis of data. Respondents with Higher National Diploma (HND) (26%) predominate, followed by B.Tech (30.3%). All of the respondents are registered with their professional bodies. Respondents with years of experience above six years (84.2%) were surveyed. Respondents‘ organisations have being involved with over 21 projects on the average. Standard deviation is used to enable ranking of factors with the same mean score.

Findings and Discussion

Table 1 presents the respondent, perceptions with respect to the factors related to direct causes of rework on construction projects in terms of a mean score (MS) ranging between 1.00 and 5.00, based upon percentage responses to a scale of 1 (Minor) and 5 (Major). It is notable that all the factors have MSs are > 2.50 which indicates that the factors have moderate to a major influence in directly causing rework. The Table has three sub divisions namely, poor workmanship, insufficient supervision, and deviation from drawing. From the section poor workmanship, the factor ranked first with the most influence poor management (MS=4.03). Work are specified to certain standard, when this standard are not achieved, there is the tendency for it to be condemned and should be done again. It should be noted that all kind of work has steps to follow in carrying them out. If these steps are not followed, mistakes could arise and lead to poor workmanship.

Table 1: Direct rework causes Direct Factors MS Rank Poor workmanship Poor management 4.03 1 Lack of communication and language barrier 3.98 2 Complicated role of subcontractor 3.82 3 Lack of experience and competency of labour 3.82 4 Unavailability of construction equipment 3.79 5 Inadequate cost 3.74 6 Inadequate time 3.58 7 Poor weather condition 1.96 8 Poor supervision Lack of supervision and coordination in construction 3.84 1 Lack of assessment of workers performance 3.71 2 Lack of training for work 3.71 3 Inadequate report production 3.71 4 Lack of personnel 3.68 5 Lack of creating method to fulfill work schedule requirement 3.65 6 Deviation from drawing Omission from specification 4.06 1 Non adherence from specification 4.03 2 Inadequate information leading to wrong construction 3.42 3 Using dimension of building set out 2.74 4

Next is lack of communication and language barrier with an MS=3.98 are ranked second regarding direct causes of rework. In order for instructions to be carried out as intended there must be a two-way communication. The instance that communication is one way and probably with barriers, instructions may be carried out with mistakes and lead to rework. The factor with the least influence is poor weather conditions (MS=1.96). This implies that construction works are probably carried out when period is favourable (dry seasons). From the insufficient supervision, the factor, which causes rework most and ranked first is lack of supervision and coordination of construction activities (MS=3.84). This leaves room for

215 workers to carry out work as they wish, and may be with lots of mistakes. Supervision must be adequate and regular to avoid rework. Next in this section is lack of assessment of workers performance (MS=3.71). Worker capabilities need to be ascertained to know the kind of supervision to be given relative to doing work correctly. The non-giving attention to this may be the likely reason for rework on projects. The least factor influencing rework in this section is lack of creating methods to fulfill work schedule requirements (MS=3.65).

It should be noted that though this factor is least among origins of rework, in this section it has a high MS. This suggests that it may have significant effect. From the section, deviation from drawing, omission from specification (MS=4.06) is ranked first as having the most influence regarding causes of rework. Dimensions need to be accurate relative to building being square or rectangular. Omissions leads to time wastages and materials as work may have being carried out incorrectly. Next is non-adherence to specification (MS=4.03). The non-adherence to specification results in doing the wrong thing, and leads to rework.

Table 2 indicates the respondents‟ perceptions with respect to the factors causing indirect rework on construction projects in terms of a mean score (MS) ranging between 1.00 and 5.00, based upon percentage responses to a scale of 1 (Minor) and 5 (Major). It is worth noting that all factors of indirect causes of rework have MSs are > 4.00 which indicates that the factors are more a major than a minor causes of indirect rework. This is a clear indication that the factors irrespective of their ranking have great potential to influence rework on projects. Improper subcontractor (MS=4.21) rank first among factors of indirect causes of rework. The wrong selection of subcontractor as a result of improper selection process could be the main cause of this factor. The non-adherence to proper contract tendering and award process results in the selection of lack of competent subcontractor. The same applies to the selection of the main contractor. These result in poor quality of work done requiring rework. During the selection process, factors such as, technical capability, plant and equipment, experience, qualifications of staff, and financial capabilities should be factor given high weights for consideration. Next to improper subcontractor is lack of coordination (MS=4.15). Inadequate coordination of construction activities could lead to carrying out activities at the wrong time, inadequate monitoring of activities could lead to poor work and all of these contribute to rework. The least factor of indirect causes of rework is improper work sequencing (MS=4.10). There are critical activities in the construction of a building project. The non-identification of these activities and executing them in a chronological order could lead to rework.

Table 2: Indirect rework causes Indirect Factors MS Rank Improper subcontractor 4.21 1 Lack of coordination 4.15 2 Improper work protection of ducts or pipes 4.13 3 Improper work sequencing 4.10 4

Table 3 reveals respondents‟ perceptions with respect to the elements (areas) of building prone to rework on construction projects in terms of a mean score (MS) ranging between 1.00 and 5.00, based upon percentage responses to a scale of 1 (Minor) and 5 (Major). It is worth noting, that all the factors have MSs are > 2.50 which indicates that the level occurrence of rework from these elements are of moderate to a major extent. The first top three elements are walls, window and foundation (substructure work), which have MSs of 4.65, 3.31 and 3.16 respectively. Wall need to adequately form, and blocks lay perfectly. Then follows

216 plastering on wall, which firstly requires gauging of the entire surface before actual plastering commences to eliminate undulation. Adequate time and sufficient water applied during construction to avoid cracks. Windows requires being vertical and fixed in the right position, failure of this leads to rework. Foundation involves a lot of work. It begins from setting out. A wrong setting out will reflect at the foundation. Care should be taken not to miss any line of wall for excavation and the building must be setting out rightly. Any mistake during this process is manifest at the foundation level and must be redone. The least elements of prone to rework are slab (MS=2.37) and stair case (MS=2.31) though rework is not common occurrence with these elements, care should be taken while constructing them as they have potentials to influence rework.

Table 3: Element of building prone to rework Element MS Rank

Wall 4.65 1 Window 3.31 2 Foundation 3.16 3 Electrical services 3.03 4 Column 2.66 5 Beam 2.63 6 Roof 2.63 7 Door 2.56 8 Mechanical services 2.44 9 Slab 2.37 10 Stair case 2.31 11

Table 4 presents the respondents‘ perceptions with respect to impact of rework on construction projects in terms of a mean score (MS) ranging between 1.00 and 5.00, based upon percentage responses to a scale of 1 (Minor) and 5 (Major). All factors have MSs > 3.00, which indicates that the factors are a major than a minor impact on rework. Cost overrun (MS=3.94) rank first among the factors. Rework will require new materials, plant and equipment being hired and labour. These are the items that increase the cost figure of the project. In addition, another time (time overrun (MS=3.87)) is required to execute the work, and it is the second ranked factor regarding the impact of rework. Negative effect on company‘s reputation (MS=3.85) is ranked third factor. The company is seen in the light of not competent, and having not enough experience to handle Building construction, which also negative affects it competitive advantages. The factor with the least impact on rework is loss of materials (MS=3.42). It is very obvious that when rework occurs, materials are removed and replacement follows. In this process materials are lost.

Table 4: Impact of rework Effect MS Rank Cost overrun 3.94 1 Time overrun 3.87 2 Negatively affects company reputation 3.85 3 Rescheduling 3.84 4 Late payment 3.77 5 Loss of productivity and efficiency 3.60 6 Loss of material 3.42 7

Conclusions and Recommendations

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Poor management, lack of supervision and coordination in construction projects, omission from specification are the major factors causing direct rework. Improper contractor and subcontractor selection is mainly the indirect factors responsible for rework. These direct and indirect causes of rework are thus context specific to the study area. Cost and time overruns and negative effect on company‘s reputation are the factors with the most impact on projects. From the foregoing, it can be concluded that adequate attention be given to management of the processes of construction, and adherence to specification.

The impact of rework is enormous, rework reduces the profitability level of contractor and subcontractors and it could lead to improper processes and poor quality of work. Most importantly, it reduces the competitive advantage of contractor. Based on the conclusions, the following recommendations are made:  Contractors and suncontractors should evolve good management system and commit to it in order to mitigate poor quality product;  Adequate supervision should be given to the processes of construction at all levels to mitigate mistakes and poor workmanship that will result in rework, and  The tendering process should be employed and followed in the selection of contractors and subcontractors to mitigate the selection of incompetent contractor and subcontractor.

References

Acharya, N.K., Lee, Y.D. and Im, H.M. (2006) Conflicting Factors in Construction Project: Korean Perspective. Engineering, Construction and Architectural Management, 13(6), pp. 543-566. Aibinu A.A. and Jagboro G.O. (2002) The Effect of Construction Delay On Project Delivery In Nigeria Construction Industry. Internal Journal of Project Management 20: pp. 593-599. Alwi., S. and Hampson, K. (2002) Non-Value Adding Activities: A Comparative Study of Indonesian And Australian Construction Project, Proceeding of the 10th Annual Conference on Construction. Gramdao, Brazil. Augusto, R.C., Maurico, A., Edna, V., Fernando, A., Kelly, S., Russell, W., Edward, J. J. and Charles, T. J. (2009) Exploring Training Needs And Development of Construction Language Courses For American Supervisions and Hispanic Craft Workers. Journal of Construction Engineering and Management, 135(5), 387-396. Bomel Consortium (2003) The Factors and Causes Contributing to Fatal Accidents 1996/97 to 2000/01. Summary Report. HSE Task ID BOM\0040. C998\01\117R, Rev B, November 2003. Chan, P.C., Wong, K.W. and Lam, T.I. (2006) Assessing Quality Relationships in Public Housing. International Journal of Quality & Reliability Management, 23(8), pp. 909-927. Dai, J., Paul, M.G. and William, F.M. (2009) Construction Craft Workers‘ Perception of Factors Affecting their Productivity. Journal of Construction Engineering and Management, 135(3), pp. 217-226. Djordjevic, B. and Djukic, S. (2008) The Impact of Downsizing on the Corporate Reputation. Economics and Organization, 5(1), pp. 51-62. Ismail, F., Mustapa, M. and Mustapa, F.D. (2006) Risk Factor of Contractor‘s Corporate Reputation. Paper Presented at the 5th IEEE International Conference on Cognitive Informatics, July 2006, Beijing China, pp.17-19. Jha, K.N. and Iyer, K.C (2006) Critical Determinants of Project Coorgination.

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International Journal of Project Management, 24(4), pp. 314-322. Jha, K.N and Chockalingam, C.T. (2009) Prediction of quality performance using artificila neural networks: evidence from Indian construction projects. Journal of Advances in Management Research, 6(1), pp. 70-86. Josephson, P.E. and Hammarlund, Y. (1999) The Causes and Cost of Defect in Construction. A Study of Seven Building Projects. Automation in Construction, 8, pp. 681-42. Kazaz, A. and Birgonul, M.T. (2005) Determination of Quality Level in Mass Housing Projects in Turkey, Journal of Construction Engineering and Management, 131(2), 195-200. Khalid, K., Marton, M. and Steven, D. (2006) Managing Subcontractor Supply Chain for Quality in Construction. Engineering, Construction and Architectural Management, 13(1), pp. 27-42. Liu, S.S. and Shih, K.C. (2009) Construction Rescheduling Based on Manufacturing Rescheduling Framework. Automation in Construction, 18(6), pp. 715-723. McDonald, D.F. and Zack, J.G. (2004) Estimating Lost Labour Productivity in Construction Claims. AACE International Recommended Practice No. 25R-03 Nichol, S. (2008) SMEs Still Suffering from Late Payment Problems. Contract Journal. Odeh, A.M. and Battaineh H.T. (2002) Causes of Construction Delay: Traditional Contract. International Journal of Project Management 20: pp. 67-73. Othman, A.A. Torrance J.V. and Hamid M.A. (2006) Factors Influencing the Construction Time Performance of Project in Malaysia. Engineering, Construction and Architectural Management, 13(5), pp. 481-501. Rodriguesz, A. and Bower, J. (1996) The Role of System Dynamics in System Management. International Journal of Project Management, 14(4), pp. 213- 220. Sambasivan, M. and Yau, W.S. (2007) Causes and Effect of Delays in Malaysian Construction Industry. International Journal of Project Management, 25, pp. 517-526. Still, K. (2000) Solving the International Problem of Late Payment. Credit Control 21(6), pp. 14-20. Sun, M. and Meng, X. (2009) Taxanomy for Change Causes and Effect in Construction Projects. International Journal of Management, 27, pp. 560-572. Vieira, G.E., Herrmann, J.W. and Lin. E. (2003) Rescheduling Manufacturing System: A Frame Framework of Strategies, Policies, Method. Journal of Scheduling 6, pp. 39-62. Wai Kiong, C. and Sui Pheng, L. (2005) Assessment of defects at construction and occupancy stages, Journal of Performance of Constructed Facilities, 19(4), pp. 283-289.

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An evaluation of the physical conditions of on-campus students’ hostel blocks in a public Nigerian university AD Adamu and WM Shakantu Department of Construction Management, Nelson Mandela Metropolitan University, South Africa [email protected] [email protected]

Abstract: Ensuring that students‘ hostels are in best functional condition supports learning activities. Knowledge of the physical condition of hostel facilities is a key performance indicator of the maintenance strategies put in place by the building management department of the institution. This paper presents the current condition of on-campus students‘ hostel blocks in a typical public university in Nigeria. It is an aspect of ongoing research on the maintenance management of on-campus hostels at Nigerian universities. Data was generated through observations of the interior structural conditions of the students‘ rooms. Most (over 80%) of the students‘ bedroom in the hostels have major defects on the interior facades which are unfavourable for living and learning, a prime objective of providing and maintaining students‘ hostels on campus. The findings of the study revealed the deteriorated, unhealthy and unsafe condition of the male hostels. The study suggests a research into the maintenance management strategies of the existing on-campus hostels in the university, with an aim of identifying the factors inhibiting effective maintenance of the building that will align with the primary objective of which the providing the hostels on campus.

Keywords: Building, hostel, maintenance, university

Introduction

On-campus hostels are custom-made residences for students on sites of educational institutions with a prime objective of providing a living-learning environment that will enable social interaction, notwithstanding the differences in home background of the students (Najib & Osman, 2011). In most Nigeria universities, it is a tradition to accommodate students in hostels provided on their campuses. These hostels are integral components of the various institutions‘ built asset. According to Araujo & Murray (2010) accommodation facilities on campus of academic institutions affords the students that reside in the available on-campus hostels security for their lives and properties. Secondly, the rental fees of the accommodations provided by the institutions are normally affordable for most students because the managements of such institutions are primarily interested in the welfare of their students, which will enable the students focus on their academic activities.

The conditions of buildings are key indicators of development and the quality of life in a community, because the prosperity, social values and behaviours are reflected in them (Akinsola et al., 2012). Users / occupants of buildings may have simple or complex requirements, but the building is expected to meet most of these requirements (Idrus et al., 2009), because, the well-being of buildings is not only important for their economic life expectancy but is even more important for the well-being of the occupants/users (Iyagba, 2005). In line with this, maintaining buildings is an optimum initiative and intervention for

220 preserving and supporting the values of the built environment and the citizens (Dann et al., 2005; Idrus et al., 2009).

Since the early 1990s, the management of the hostel buildings in public universities in Nigeria has become more complicated due to a continuous increase in the intake of students with every session (Akingbohungbe & Akinluyi, 2012; Ojedokun et al., 2012). This is despite an increase in the number of both public and private universities established to date. Deteriorating conditions in the physical conditions of students‘ hostels on the campuses of some institutions in Nigeria may be blamed for poor academic performance coupled with social problem such as student unrest, poor health poor academic and other negative behavioural patterns that are found in disadvantaged communities (Jolaoso et al., 2012).

Literature Review

The buildings are fabricated structure composed of several discrete but interrelated components (McDuling, 2004; Adenuga, 2010). The building system derives its form and utility from two major components: the building shell and building services (Odediran et al., 2012). The building shell includes all architectural and structural components comprising of all exterior coverings of the building (façade or envelope) that shield the interior from harsh weather, pollution, it also provides thermal and sound Insulations.

The basic function of a building is to provide structurally sound, safe and environmentally controlled places to accommodate various human functions (Idrus et al., 2009; Adenuga, 2010; Abdul Lateef et al., 2011; Waziri & Vanduhe, 2013). For the building to serve its designed function, it must meet certain qualities of durability, reliability, aesthetics with other occupants/user requirements (Abdul Lateef et al., 2011). Changes in these qualities are inevitable and depend on the impact levels of operational and physical environmental factors (Abbott et al., 2007). The impacts of these factors cause the building to deteriorate and threaten the ability of the incorporated facilities to retain functionality through their service lives (Waziri & Vanduhe, 2013). In addition, the building suffers performance loss and the objective of acquiring the facility is defeated (Straub, 2009).

Deterioration and defects in building components

A defect is any shortcoming in the functional performance, statutory or basic user requirements of a building that manifest itself within the structure, fabric, services or other parts of the built facility (Mohamad & Annuar, 2011). Therefore, a building component that fails to meet its accepted or set criteria for performance may be referred to as a defective component (Mydin, Ramli & Awang, 2012). Defects in a building component are in various forms (depending on the cause) and the severity of damage to the component. Minor, serious and critical are the three categories of which defects in a building element may be classified (Abbott et al., 2007). The remedial action required to minimise the impact of any defect on the building performance is typically ranked according to a predetermined set of priorities for maintenance and the severity of damage caused by the defect.

The aggregate life span of the components of a building is a major determinant of its life expectancy (Adenuga et al., 2010). The life span of each component depends largely on specification and installation on the construction phase; compatibility of the components with each other and with other materials; operation/use of the facilities and adequacy of maintenance standard complied. The performance of whole building depends on many 221 factors such as type of structure and incorporated services, environmental conditions and use of the facility (Chautan & Singh, 2012). All building components have to contend with performance loss through ageing, use, and external causes. Performance loss is measured in terms of defects ascertained (Straub, 2009). According to Talib et al. (2012), building performance is concerned with the extent to which the building facilitates or support use or occupancy; the extent to which it serves as a comfortable abode and support a better quality of life for the occupants and the building‘s fitness for designed. The quality of a building in the context of building performance is a measure of the quality of material used and workmanship of the initial construction and subsequent maintenance works; its operation and use (McDuling et al., 2004).

Research Methodology

This paper is part of an on-going research on the maintenance management systems of on- campus students‘ hostels at Nigerian universities. The paper aimed at addressing one of the objectives of the parent research work which is to examine the current condition of on- campus hostel buildings at selected universities in Nigeria. This paper is based on the results of a pilot survey carried out to test the condition assessment instrument developed to generate data the objective afore mention of the main research work that is still in its developmental stage. This research employed the qualitative method that is rooted in the phenomenological paradigm. It integrates a literature review and a case study. The literature review provides an understanding of the building component, function and performance requirements. The case study approach of the qualitative method was adopted because it is appropriate for in-depth study of a case or cases. Sources of data for the literature search include relevant periodicals, conference papers, textbooks, dissertations and theses from research institutions, with the aid of library reference services. Data for the case study was generated through physical observations of the interior structural elements of the hostel rooms. A condition evaluation form was prepared for this exercise guided by a building condition evaluation manual (Bergeson & Bigelow, 1992).

The elements were inspected and the current condition was rated on a five point scale. The components with no sign of defect and their appearance is as new were rated ―5 - excellent‖. The value ―4 - satisfactory‖ was assigned to components that show negligible signs of defects that may not constitute any form of discomfort to the student occupants in the room. An average value ―3 - fair‖ was assigned to any component observed to exhibit defects such as worn-out finishing, minor defects such as cracks or dampness that are not related to structural defects, but require uplift for aesthetic purpose and comfort for the occupants. All components with early signs of major defects such as structural cracks, water seepage, leakages that require urgent maintenance works to save the structure were regarded as poor and rated ―2‖. The least rate ―1-unsuitable‖ was assigned to rooms with critical defects in the components evaluated. The components in this category include those with major structural defects that have reached an advanced stage, as a result of which the room is completely unsafe for occupants.

An Overview of the case study area

The university used as a case study of this research paper is a typical Federal university that has already been selected as one of the universities that will be studied in the main ongoing research mentioned in the previous section. The institution operates two campuses within the

222 same city, barely 14kilometers between the two campuses. As integral part of the university‘s built assets, are hostel buildings for both male and female students on each campus. The majority of the students reside on and around the main campus because most academic departments have been relocated to the main campus. This paper assessed only the two hostel blocks for the male students on the main campus because the primary purpose of the exercise is for a trial survey of the research instrument that would be used a PhD research work in progress. The researchers‘ choice of the male hostels is for proximity and easily accessible for the pilot survey exercise. The university used as case study is a fully owned by the Federal Government of Nigeria (FGN). It is a university of Technology established in 1983 and located in the North central geopolitical of Nigeria. The objective of its establishment alongside 6 others across the country is for human capital development that will boost the science and technology sector in the country to meet world standards.

Findings and discussions

The study presented in this paper aimed at evaluating the conditions of the interior facades of the bedrooms in two hostel blocks on the campus of a public university in Nigeria. Ceilings, walls and floors in 164 students‘ rooms were evaluated. The hostel buildings are identical storey blocks located adjacent to each other. There are 82 shared bedrooms on three floors in each block. The floor designs are corridor types with common bathrooms and toilets located on one end of the corridor on each floor; kitchens and laundry rooms at opposite ends of the corridors. For the purpose of this paper, survey result of only the ceilings, floors and walls in each room is presented based on physical inspection with the aid of prepared survey forms for each of the elements which has been described in section 3. Table 1 presents the result of the condition evaluation of the three elements afore mentioned. Physical inspection of all the bedroom spaces of the two hostel blocks was carried out and the rating is presented in percentages in the table.

The result of the evaluation revealed that none of the three components in all the bedrooms inspected were rated ―5-excellent‖ and only 9% of the rooms had floors that were rated ―4- satisfactory. However, only 12% of the rooms were rated ―1-unsuitable‖ and categorised as unsafe for occupants due to the severity of deteriorated components observed. Ceilings in 60% of the rooms, examined are rated ―2-Poor‖ signifying that the ceilings have major structural defects such as, sagging panels, evident signs of leakage from roofs which is not a conducive living learning accommodation for a student occupant. Substantial percentages (64%) of both the floors and walls in the rooms are in a fairly (rated 3-fair) habitable condition to accommodate students.

Table 1: Condition rating of building components Percentage of rooms Total Components Excellent……………….…… Unsuitable 5 4 3 2 1 Ceilings 0 0 16 60 24 100 Floors 0 9 64 21 6 100 Walls 0 0 64 29 7 100

Conclusions and Further Research

Most of the students‘ bedroom in the hostels has major defects on the interior facades which are unfavourable for living and learning, a prime objective of providing and maintaining

223 students‘ hostels on campus. The findings of the study revealed the deteriorated, unhealthy and unsafe condition of the male hostels, which confirms and clarifies an aspect of the research problem of the parent study that aims at providing a base level understanding of maintenance management systems of on-campus hostel buildings at Nigerian universities. The study suggests a research into the maintenance management strategies of the existing on-campus hostels in the university, with an aim of identifying the factors inhibiting effective maintenance of the building that will align with the primary objective of which the providing the hostels on campus.

References Abbott, G., McDuling, J., Parsons, S. & Schoeman, J. 2007. Building condition assessment: A performance evaluation tool towards sustainable asset management. Cape town, CIB World Congress. Abdul Lateef, O., Khamidi, M. & Idrus, A. 2011. Behavioural Issues in Maintenance of University Buildings. Journal of Retail and Leisure property, 9(5), pp. 415-428. Adenuga, O. 2010. Labour Composition for Maintenance Works in Public Hospital Built environment in South-West Nigeria. Journal of Building Performance, 1(1), pp. 83-94. Akingbohungbe, D. & Akinluyi, M. 2012. Residents' Perception of Off-campus Students' Housing Performance in Ile-Ife, Nigeria. Journal of Environment and Earth Science, 2(7), pp. 69-77. Akinsola, O., Hussaini, P. & Oyenuga, S. 2012. Critical Factors Influencing Facility Maintenance of Tertiary Institutional Buildings in Southwest Nigeria. Mediteranean Journal of Social Sciences, 3(11), pp. 489-496. Araujo, P. & Murray, J. 2010. Channels for Improved Performance from Living on Campus. American Journal of Business Education, 5(12), pp. 57-64. Bergeson, T. & Bigelow, M. 1992. Building Condition Evaluation Manual, Washington, DC: Schools facilities and Organization, State Board of Education, Office of Superintendent of Public Instruction. Chautan, M. & Singh, P. 2012. Building Deteriorating Fungi as Biocontaminant. Asian Journal of Experimental Biological Sciences, 3(1), pp. 209-213. Dann, N., Hills, S. & Worthing, D. 2006. Assessing how Organisations Approach the Maintenance Management of Listed Buildings. Construction Management and Economics, 24(1), pp. 97-104. Idrus, A., Khamidi, F. & Abdul Lateef, A. 2009. Value-Based Maintenance Management Model for University Buildings in Malaysia. Journal of Sustainable Development, 2(3), pp. 127-133. Iyagba, R., 2005. The Menance of Sick Buildings: A Challenge to all for its Prevention and Treatment. Lagos: University of Lagos press. Jolaoso, B., Musa, N. & Oriola, O. 2012. Appraisal of the Maintenance of Public Residential Estates in Ogun State: Case Study of Ibara Housing Estate, Abeokuta. Journal of Emerging Trends in Economics and Maintenance Sciences, 3(5), pp. 509-516. Najib, N. & Osman, Z. 2011. The relationship between Students‘ Socio-Economic Backgrounds and Students‘ Residential Satisfaction. World Academy of Science, Engineering and Technology, 56, pp. 1200-1205. Mc Duling, J., Harok, E. & Cloete, C. 2004. Quantifying the Consequences of Maintenance Budget Cuts. Cape Town, ICEC World Congress. Mohamad, S.B.H. & Annuar, W.H.F. 2011. Engineering Approach System to Assess Defect and Deterioration of Building Structures. International Seminar on the

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Application of Science and Mathematics conference. 1st-3rd November, Kuala Lumpur, Malaysia. Mydin, M.O., Ramli, M. & Awang, H. 2012. Factors of Deterioration in Building and the Principles of Repair. Analele Universitatll ― Eftimie Murgu‖ Resita, 19(1), pp. 345- 352. Odediran, S., Opatunji, O. & Eghenure, F. 2012. Maintenance of Residential Buildings: Users‘ Practices in Nigeria. Journal of Emerging Trends in Economic and Management Sciences, 3(3), pp. 261-265. Ojedokun, O., Odewumi, T. & Fasola, J. 2012. Maintenance Model of Hostel Buildings for Effective Performance and Aesthetics. International Journal of Modern Engineering Research, 2(6), pp. 4138-4143. Straub, A., 2009. Dutch standard for condition assessment of buildings. Structural Survey, 27(1), pp. 23-35. Talib, Y., Rajagopalan, P. & Yang, R. 2013. Evaluation of Building Performance for Strategic Facilities Management in Healthcare: A case study of a public hospital in Australia. Facilities, 31(13/14), pp. 681-701. Waziri, B. & Vanduhe, B. 2013. Evaluation of Factors Affecting Residential Building Maintenance in Nigeria: Users' Pespective. Civil and Environmental Research, 3(8), pp. 19-24.

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Construction risk management through the use of Contractors’ All Risk (CAR) insurance policy: A South African case study S Musundire, CO Aigbavboa and WD Thwala Department of Construction Management & Quantity Surveying, University of Johannesburg, South Africa [email protected] [email protected]

Abstract: Contractors‘ All Risks (CAR) insurance is special insurance cover, which insures all losses unless specifically excluded in a construction contract. The benefit to the insured under this type of policy is that the burden is shifted to the insurer who, to resist the claim, is required to show that the cause of the loss falls within specifies perils. The objective of the current research study is to identify the factors that affect the use of CAR in mitigating construction risk and to determine the factors which affect the use of CAR insurance policy in South Africa. The data for the study were derived from both primary and secondary sources. The secondary data were derived from the review of literature, while the primary data for the study were collected through a structured questionnaire survey distributed to a sample of 30 professionals/ specialists in the construction industry including contracting firms who had taken CAR insurance and are currently using CAR in mitigating construction risk. Findings from the study revealed that the factors which affect the use of CAR insurance policy in the South Africa construction industry include: stipulation of the adopted conditions of standard construction contract, client‘s requirement, cost and contractor‘s own interest. Good claim around time, quality of services and insurer‘s reputation were the most significant factors affecting the choice of an insurer. Economic potential of the insurance company, reinsurance and wordings of the policy were some of the factors which influence the choice of the insurer under CAR.The study adds to the body of knowledge on the use of CAR in the management of construction risk in the South Africa construction industry.

Keywords: Contractors, Contractors‘All Risk (CAR), Risk Management, Insurance

Introduction

Construction projects are sensitive to extremely large matrix of hazards and thus to risks. This sensitivity is due to some inherent characteristics of construction projects (Bunni, 2003). Risk in construction projects has been the object of attention mainly because of its association to time and cost overruns. Perera et al. (2008) argues that transferring risks to an insurance policy is an accepted method world-wide. They also state that among the insurance policies used in construction, Contractors‘ All Risk (CAR) policy is the most popular. Concurring to the work of Perera et al. (2008), Pankaj et al. (2013) informed that construction insurance is a major method of managing risks in the construction industry. Furthermore, Pankaj et al. (2013) states that CAR‘s primary function is to transfer certain risks from clients, contractors, subcontractors and other parties involved in the construction project to provide contingent funding in times of difficulty. However, CAR sometimes does not receive the attention it

226 desires because practitioners do not have a clear understanding of risk allocation and the strategy of risk management through insurance. To this end, the current study identifies the factors that affect the use of CAR in mitigating construction risk and to determine the factors which affect the use of CAR insurance policy in the South Africa construction indistry, using the Gauteng Province as a case study.

Risk Management in Construction

According to Perera et al. (2008), the development of a construction project from inception to completion takes a long time and involves many phases. It brings workers with different skills and interest together; needs an efficient procurement system and involves the use of large and diverse sets of equipment. Perera et al. (2008) further informs that all of these complex requirements have to be handled with proper coordination to provide a smooth flow of activities. Hence, this brings the necessity to identify and analyse the risks that may appear during construction. Chihuri and Pretorious (2010) explain the need for risk management in the South Africa construction industry by citing the Gautrain and 2010 soccer stadiums as typical examples. Due to the size of the development, Chihuri and Pretorious (2010) gave the following reasons to emphasize on the need for risk management in construction projects based on the above examples in South Africa, these reasons include:

 Size implies that there may be large potential losses unless they are managed carefully- and conversely, large potential gains if risks are managed well. Supported by a famous Chinese ancient philosopher cited by (Liu et al., 2005);stating that: ―if risks cannot be dealt with properly, opportunities can be transferred to loss‖ while treating risks correctly, turns threats can into opportunities;

 Large projects often involve unbalanced cash flows, requiring large initial investments before meaningful returns are obtained. In these circumstances there may be significant uncertainty about future cash flows due to changing economic conditions, changing patterns of demand, new completion and many other factors; and

 Projects like the Gautrain which will be operated by government call for additional focus on risk to identify and manage any residual risks for government.

The objectives of a project risk management are to increase the probability and impact of positive events and decrease the probability and impact of negative events in a project (PMI, 2008). Uncertainty surrounds many issues in construction projects and managing uncertainty involves managing risks according to (Liu et al., 2005). Whilst, Shang (2011) agrees with Bunni (2003), in that risk management gives an indication that there are processes and decisions which need to be made in risk management to reduce the probability of an event occurring or reducing its negative effects if it does occur. Bunni (2003) goes on to explain that risk management is therefore concerned with the mitigation of these risks driving from unavoidable hazards through the optimum specification of warning and safety devices, risk control procedures such as contingency plans and emergency actions.

Liu et al. (2005) and Dawson (1997) summarized that although there are inconsistencies between the definitions, there were similarities which can be listed such as:

 It is a formal process;  It employs systematic & scientific methods;

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 It aims to identify risks in an operation or business;  It evaluates the importance of impact of those risks on the operation of the business;  It provides mechanisms to control the individual risk to provide an acceptable level of overall exposure, and  It is not a one – off event.

These listed facts and characteristics provide a basis of defining risk management as well as forming the foundation for risk management processes. Hence, any risk management model should portray these important key elements concerning risk management; which the CAR insurance subscribes.

Risk management through insurance

Insurance is a financial device for transferring risk from one individual or entity to a large group with the same risk (Dearborn Career Development, 2004). Under the insurance arrangement, the individual, along with other insured pay a sum to the insurance company. In turn the insurance company agrees to pay an amount of money (reimbursement) to the individual or on behalf of the individual if the events in the policy occur. Dearborn Career Development (2004) further emphasizes that insurance is used to indemnify or restore a policy holder to a pre-loss condition; furthermore, the individual accepts a known cost, the premium, in exchange for payment of a large uncertain financial loss. Insurance not only transfers risk, it also assists the contractor in risk management by recognizing potential risks and reducing the probability of such risk (Perera et al., 2008). According to El-Adaway and Kandil (2009), contractors usually purchase a set of insurance policies that include: workers compensation and employer‘s liability insurance; commercial general liability insurance; umbrella or excess liability insurance; contractor‘s equipment insurance; property insurance covering contractor‘s real and personal property.

El-Adaway and Kandil (2009) also argue that there is no insurance policies that cover site, economic, political, design and environmental risks which are risk beyond the control of the contractors and negatively affect their associated financial and economic standing. However, the various types of insurance available in the construction industry according to (Robinson, 2003) include: contract works; industrial special risk; professional indemnity; public and product liability; workers in compensation; compulsory third party motor vehicle; marine cargo or transit insurance.

Contract works which is also the contractors‘ all risk insurance has been accepted world-wide as a comprehensive cover by which all the material damages and third party damages are included (Perera et al., 2008). Hence, Perera et al. (2008) states that the CAR policy used in Sri Lanka for instance are almost the same as that of other countries. However, the CAR policy used in South Africa is slightly different from others, in the sense that the third party insurance is not a compulsory part of CAR but can be covered on endorsement.

Contractor’s All Risks Insurance – An overview

The first CAR policy is said to have been issued in 1929 to cover the construction of the Lambeth Bridge across the Thames in London. A special policy was created in Germany in 1934 and started to spread slowly. The real development however, took place only with economic recovery and the construction boom after the Second World War (Wassmer, 1998). 228

In South Africa, the contractors‘ all risk policy is also often referred to as the Builder‘s risk or the Course of construction policy. Newman (2010) explains that the main characteristic of the CAR policy is that unlike other insurance policies, the CAR clause is not limited by reference to specified perils; in other words, everything is covered unless it is excluded, expressly or by implication. CAR policy is usually combined with (but must be distinguished from) public liabilities or Third party liabilities policies.

The CAR is an insurance policy designed to cover all the parties involved in a construction project therefore it is acquired in the joint names of the Client or the Principal agent and the Contractor(s). CAR has a standard format regarding cover although different insurance companies may have different special wordings to suit their clients. CAR claim are only valid at the worksite. For claims under the material damage, the accident should have occurred on site and the same applies to the third party liability, the accident must be a direct result of the operations at the worksite. The storage of material is always considered if material is stored on site.

The CAR is a temporary insurance starting either with the commencement of work or after the unloading of the insured properties at the construction site and ending on the client‘s acceptance of works. If the work is finished before the set completion date, the insurance automatically falls away without a premium refund if there is also an extension or delay in the completion of works, an extension should be agreed with the insurance company in order to maintain validity of the policy probably with an additional payment. The insured will always notify the insurance company if construction work is interrupted and the parties may agree to a total or partial suspension of the cover. For plant and equipment, cover commences at the moment the plant arrives at the construction site and ends after removal or when work is completed.

Research Methodology

The quantitative approach was adopted in the research. Questionnaires were distributed to the respondents by the researcher. Data from past claims was also gathered and analysed (but the current paper does not consider this aspect of the study). This study was carried out in Johannesburg targeting construction professionals in the Gauteng province who have had an experience with the CAR policy. The target sample in this research was contractors, project managers and professionals. 60 questionnaires were sent out and 41 were returned which is a response rate of 68%. This study adopted a purposive, simplicity method of data collection. This means that it focused on the people who had an experience with CAR and insurers who offered CAR policy.

Mean Item Score (MIS) A five point Likert scale was used to evaluate the factors that influence the use of CAR in construction projects in Gauteng, South Africa with regards to the identified factors from the reviewed literature. The adopted scale was as follows;

1. = Strongly disagree 2. = Disagree 3. = Neutral 4. = Agree 5. = Strongly agree

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The five-point scale was converted to mean item score (MIS) for each of the factors that influences the use of CAR as rated by the respondents. The indices were then used to rank each item. The ranking enabled the researcher to cross reference the relative importance of the items as perceived by the respondents. This method was used to analyse the data collected from the survey. The computation of the relative mean item score (MIS) was calculated from the total of all weighted responses and then relating it to the total responses on a particular aspect. This was based on the principle that respondents‘ scores on all the selected criteria, considered together, are the empirically determined indices of relative importance. The index of MIS of a particular factor is the sum of the respondents‘ actual scores (on the 5-point scale) given by all the respondents‘ as a proportion of the sum of all maximum possible scores on the 5-point scale that all the respondents could give to that criterion. A weighting was assigned to each response ranging from one to five for the responses of ‗strongly disagree‘ to ‗strongly agree‘. This is expressed in a formula below. The mean MIS was calculated for each item as follows;

MIS= 1n1 + 2n2 + 3n3 +4n4+5n5 ………………………………… Equation 1 ∑N Where: n1 = Number of respondents for strongly disagree n2 = Number of respondents for disagree n3 = Number of respondents for neutral n4 = Number of respondents for agree n5 = Number of respondents for strongly agree N = Total number of respondents After mathematical computations, the criteria are then ranked in descending order of their mean item score (from the highest to the lowest).

FINDINGS

Use of CAR insurance Findings from the survey reveal the use of insurance from the population sample. Figure 1 reveals that CAR (100%) is the most used insurance in the construction industry since it was purposive sampling. This was followed by the use of performance guarantee, professional indemnity insurance and the use of third party/ public liability policy insurances, all representing 54%.

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Figure 1: Types of Construction Insurance

Factors influencing the use of car According to Table 1 below, client‘s requirement is considered as paramount (MIS=4.07; R=1). This agrees with the study that was done in Sri-Lanka by (Perera et al. 2008) which shows the client‘s requirement as an encouragement for using CAR policy. The construction environment in Gauteng, South Africa has generally encouraged familiarity with the use of insurance, thereby being ranked second (MIS=4.00; R=2) as shown in Table 1.

Conditions of contract (MIS=3.87; R=3) in South Africa, for example the JBCC, NEC, FIDIC and GCC dictate that an insurance policy be obtained for a project. This Knowledge and experience (MIS=3.77; R=4), Government policy ranked fifth (MIS=3.57; R=5). Government policy does not have much weight in South Africa as compared to countries such as China where the government sets policies to assist contractors. Contractor‘s own interest (MIS=3.45; R=6) has been rated sixth and lastly, cost (MIS=3.21; R=7) has been rated the least factor in determining the need for insurance (Table 1). To the perspective of the contractor, the client pays anyway so it is not of much significant how much it costs them. To the clients‘ side, cost is not much of an issue since the protection for works will be the client‘s priority.

Table 1: Factors influencing the use of CAR

Factors MIS Rank Client‘s requirement 4.07 1 Construction industry environment 4.00 2 Conditions of standard construction contract 3.87 3 Knowledge and Experience 3.77 4 Government policy 3.57 5 Contractor‘s own interest 3.45 6 Cost 3.21 7

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Factors affecting the choice of insurer Finding on this aspect as shown in Table 2, reveal that good claim turn-around time is ranked first (MIS= 4.23; R=1). This can be closely linked to the quality of service that is why it quality would naturally be ranked second (MIS=4.10; R=2) to good claim turn around. The insurer‘s reputation (MIS=4.06; R=3) resulting from the first and second factors in the rank is then considered vital in selecting an insurer. The insurers‘ premiums (MIS=4.00; R=4) have not been of priority in this matter since the amount is usually a once-off, which is proportional to the value of works and the associated risks. Reinsurance is fifth (MIS=3.58; R=5). The economic potential of an insurance company reflects its financial strength; therefore under an insurer with a sound financial strength, the claimant is at a better position. In this research, economic potential has been ranked in the sixth position (MIS=3.52 R=6). Lastly, wordings of the policy were ranked at the seventh position (MIS= 3.24; R=7) as shown in Table 2. In the Sri-Lanka findings by Perera et al. (2008) wordings of the insurance policy is considered to be the most important factor in selecting an insurance company. This is due to the fact that the policy must be in accordance with conditions of contract and prior approval is needed from the Engineer or principal agent.

Table 2: Factors affecting the choice of insurer

Factors MIS Rank Good claim turn-around time 4.23 1 Quality of Service 4.10 2 Reputation 4.06 3 Insurer‘s premiums 4.00 4 Reinsurance 3.58 5 Economic potential 3.52 6 Wordings of the policy 3.24 7

Conclusion and Further Research

The study evaluated the factors affecting the use of the Contractors‘ All risk Policy in Gauteng from the insured‘s perspective. Findings from the study revealed that the client‘s requirements ranked first in influencing the use of the policy as well as the standard contract conditions. In this study, contractor‘s own interest has been one of the least factors which indicated that if this policy was a not a matter of prescription, the probability of it not being used is high. There an implied need for further research to assess the efficiency of the policy to find out if it really covers the contractor‘s risks. The study also indicated that good claim turn -around time has been the highest ranked factor in choosing an insurer with the wordings of the policy being the least. This is an indication that the insured parties do not read the policy so they expect to be protected by an instrument that they do not know what it protects them from. Although the CAR policy is standard, there are some implied terms that differ from one insurer to the other. Projects are not identical, so are the Risk management tools which apply to different projects hence the need for the insured to read through the policy wordings. Studies carried out in Sri-Lanka revealed that the wordings of the policy is a significant factor in choosing an insurer therefore this study shows great variation between the insured in Gauteng, South Africa and their counterparts in Sri- Lanka.

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References

Bunni, N. (2003), Risk Management in construction. Spon: London. Chihuri, S. & Pretorius, L. (2010), ‗Managing Risk for success in a South African Engineering and construction project environment‘, South African journal of industrial Engineering, 21(1), pp. 63-77. Dawson, P.J. (1997) A hierarchical approach to the management of construction, University of Nottingham: Nottingham. Dearborn Career Development (2004), Insurance Fundamentals, Kaplan. El-Adaway, I.H. & Kandl (2009) Contractor‘s claims Insurance: A Risk retention approach, Journal of Construction Engineering and Management, 135, pp. 819-825. Liu, J., Li, B. & Zhang, J. (2005) Insurance and Construction project risks: a review and research agenda, School of management Tianjin University, Tianjin: China Liu, J., Li, B., Lin, B. & Nguyen, V. (2007) Key issues and challenges of risk management and insurance in China‘s construction Industry an empirical study, Industrial Management and Data Systems, 107(3), pp. 382-396. Neumman, F. (2010) Notes on financial guarantees and Contractors‘ all Risks policy. Newmann and Associates. Pankaj, V.N. & Pankaj P.B (2013) To Study on the Risk Management, Risk Treatment Strategies and Insurance in Construction Industries, International Journal of Innovative Technology and Exploring Engineering, 3(4), pp. 68-74. Perera, B.A.K.S., Rathnakaye, R.M.C.K. & Rameezdeen, R. (2008) Use of insurance in managing construction projects: An evaluation of the Contractors‘ All Risks (CAR) Insurance Policy‘, Journal of the Built Environment, 8(2), pp. 25-31. Project Management Institute (2004) Project management Body of Knowledge (PMBOK), Project Risk Management, Pennsylvania. Robinson, A.A. (2003) Construction and infrastructure projects- risk management through Insurance, Brisbane. Shang, S. (2010) Construction Risk Management through Insurance and Bonding in China‘, Mechanic Automation and control Engineering (MACE), 2011 Second International conference, 15-17 July 2011. Wassmer, L. (1998), Contractors‘ All Risks insurance, Swiss Reinsurance Company: Zurich.

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Perception of effectiveness of written communication in construction projects in Nigeria Anthony Ujene1, Uche Edike2 and Emmanuel Achuenu3 1Department of Building, University of Uyo, Nigeria 2Bells University of Technology, Nigeria 3Department of Building, University of Jos, Nigeria [email protected]

Abstract: The aim of this study is to investigate the perceptions of the level of use of written communication and its impact on performance of construction projects in Nigeria. The method adopted in this research was by the use of questionnaires. One hundred and twenty- eight (128) questionnaires were produced and administered to 47 professionals, 51 clients and 30 contractors. Data were analysed using mean score and Kruskal-Wallis tests. The study concludes that the level of use of communication transfer media and instruments in written, communication differs. Drawings, bills of quantities and schedules were perceived by contractors, professionals and clients as the most preferred means of written communication. Health and safety management, quality management and early warning plan were least used in written communication. The study also concludes that the factors investigated have different impacts on the communication methods: the impact of written communication on cost is very significant. The study therefore recommends that consideration should be placed on the transfer media and instruments and factor most appropriate to a communication type and group of people concerned. Health and safety management plan, quality management plan and early warning system/plan should be given prominence as contract document as required by the National Building Code in Nigeria. Keywords: Communication, Construction, Projects, Stakeholder, Nigeria

Introduction It is the sole responsibility of the construction sector to construct the physical infrastructure that supports human life (Wallbauma et al., 2010). The construction undertakings involve many stakeholders who interact in different ways through communication (Gibson, 2000; Chinyio and Olomolaiye, 2010). Mclennan and Scott (2002) noted that all along the supply chain of an asset, from turning ideas into concepts, concepts into plans, plans into assets, assets into services and so on, is primarily about people interacting with people and about moving from one set of relationships to another through effective communication. Presently, the project team members are often geographically separated and their successful management can be enhanced by effective communication (Ahuja and Yang, 2006). Green (2001) has also linked communication to team effectiveness, the integration of work units across organisational levels, characteristics of effective supervision, job satisfaction, and overall organisational effectiveness. Dainty et al. (2006) expresses the importance of

234 communication as being the ―lifeblood of any system of human interaction‖ and without it there can be no elaborate activity.

The construction industry consists of many stakeholders that largely depend on different forms of effective communication. Typical literary definitions of effective communications include: an exchange of information, an act or instance of transmitting information, a verbal or written message, a technique for expressing ideas effectively, and process by which meanings are exchanged between individuals through a common system of symbols. Affare (2012) opined that effective communication is a two-way process, which involves active listening and reflects the accountability of speaker and listener. It utilizes feedback to confirm understanding that makes it free of stress. Hence, effective communication involves sending and receiving of messages with accomplishment of its purpose (Karen, 2012). The problem therefore is that ineffective communication leads to a lot of mistakes and frustration between parties, while errors and omissions in paper-documents often lead to unexpected costs, delays and litigation between project parties. Tam (1999) also reported that delays and increased cost in construction projects can be traced to poor coordination caused by inadequate, insufficient, inappropriate, inaccurate, inconsistent, late information or a combination of them all. Ineffective communication sometimes lead to mistakes as survey results have suggested that mistakes are often made because craftsmen are not aware that changes have been made (Arnorsson, 2012; Perumal and Abubakar, 2011). Beyh and Kagioglou (2004) opined that efficient communication systems and resources are required, in order to improve the transmission speed of information between the site offices, headquarter and the supply chain, such improvement in communications is further expected to achieve significant reductions of construction costs. This study therefore aims at advancing the knowledge of effective written communication with a view to enhancing successful project delivery in the construction industry. This is sequel to the need to improve the link between the construction site and designers, and to improve communication between all actors on the construction site for enhanced project performance. To achieve the above aim, the specific objective was to study the perception of the level of use of written communication in Nigerian construction industry and investigate the factors influencing their effectiveness.

Research Methodology

This study adopted the exploratory survey design approach using structured questionnaires. The study population consists of professionals, clients and contractors involved in the execution of buildings projects in Nigeria. The study purposively sampled 135 stakeholders resulting in 128 valid questionnaires comprising 47 professionals, 51 clients and 30 contractors. Twenty two written communications transfer media and instruments were identified. Twenty nine factors affecting their effectiveness also identified from literature, while cost, time and quality were performance criteria. The measurements were on a five point Likert-scale namely: nil=1, low=2, moderate=3, high=4 and very high=5 using Mean Score (MS) of the Likert ratings. Findings and Discussions In order to evaluate the level of use of transfer media and instruments of written communication, twenty two transfer media and instruments were identified from the

235 literature. The internal stake holders were requested to rate the level of their use with the scale described in the methodology. The result is presented in Table 1.

Table1. Perceptions of the Use of Written Communication Transfer Media and Instruments

Media and instruments Contractors N=30 Professionals N=47 Clients N=51 Sum MS Rank Sum MS Rank Sum MS Rank Drawings 131 4.37 1 215 4.57 1 223 4.37 1 Bill of quantities 131 4.37 1 198 4.21 4 212 4.16 2 Schedules 127 4.23 4 195 4.15 5 212 4.16 2 Letters and notices 124 4.13 5 199 4.23 3 211 4.14 4 Specification 124 4.13 5 200 4.26 2 208 4.08 5 Programmes and charts 129 4.30 3 193 4.11 6 203 3.98 6 Post 118 3.93 9 185 3.94 7 200 3.92 7 Email 122 4.07 8 172 3.66 9 197 3.86 8 Proposals 124 4.13 5 166 3.53 10 193 3.78 9 Intranet or Extranet 104 3.47 11 160 3.40 11 190 3.73 10 Reports 102 3.40 13 159 3.38 14 180 3.53 11 Transfer of computer discs 104 3.47 11 160 3.40 11 179 3.51 12 Cost report 101 3.37 14 179 3.81 8 179 3.51 12 Payment advice 101 3.37 14 160 3.40 11 177 3.47 14 Photographs 95 3.17 16 140 2.98 17 163 3.20 15 Fax 92 3.07 17 157 3.34 15 160 3.14 16 Certificate of payment 106 3.53 10 134 2.85 19 159 3.12 17 Cost plan 92 3.07 17 155 3.30 16 152 2.98 18 Escalation costing presentation 82 2.73 20 140 2.98 17 151 2.96 19 Health and safety management plan 91 3.03 19 109 2.32 21 146 2.86 20 Quality management plan 72 2.40 21 111 2.36 20 129 2.53 21 Early warning system 66 2.20 22 105 2.23 22 119 2.33 22

Table 1 shows the three stakeholders sampled perceived that drawings are the mostly used written communication transfer instrument, although the contractors ranked the bill of quantities at the same level with drawings (MS=4.37), the professionals ranked specification second (MS=4.21), while the clients perceived that bills of quantities and schedules (MS=4.16) are equally next to drawings followed by letters and notices in level of usage. The result also shows that the contractors ranked programmes and charts in the third place while professionals and clients ranked it in the sixth position. All the stakeholders perceive health and safety management plan, quality management plan and early warning system as least used in written communication. In order to evaluate stakeholders‘ perceptions of the Influence of factors on the effectiveness of written communication, twenty nine factors were identified from literature and presented to the respondents. The result is presented in Table 2. The result in Table 2 shows that by the clients‘ perception detailed drawings (MS=4.37, 4.47, 4.47), proper documentation (MS= 4.33, 4.13, 4.33) and clear and legible writing or lettering (MS=3.87, 4.13, 3.29) ranked first, second and third respectively. The perceptions of the professionals show that detailed drawings, perception of the communicators and proper documentation ranked first, second and third respectively. The result in Table 2 shows that the contractors is of the view that detailed drawings is the most significant factor followed by proper documentation, while clear writing or lettering and frequency of communication both ranked third most influential factor on written communication. All the stakeholders equally perceive that linguistic 236 variations, accent and dialect, and physical factors have the least influence ranking eleventh and tenth respectively.

Table 2: Influence of factors on the effectiveness of written communication Factors Contractors N=30 Professionals N=47 Clients N=51 Sum MS Rank Sum MS Rank Sum MS Rank Detailed drawings/ information 131 4.37 2 210 4.47 1 228 4.47 1 Proper documentation 130 4.33 3 194 4.13 4 221 4.33 2 Clear and legible writing or lettering 116 3.87 7 194 4.13 4 219 4.29 3 Frequency of communication 114 3.80 11 193 4.11 6 219 4.29 3 Channels of communication 121 4.03 5 195 4.15 3 216 4.24 5 Communication style (directness, 124 4.13 4 190 4.04 7 211 4.14 6 precision and openness) Level of control 106 3.53 16 185 3.94 9 209 4.10 7 Team/ organisational structure 116 3.87 7 183 3.89 10 209 4.10 7 Perception of the communicators 134 4.47 1 198 4.21 2 205 4.02 9 Level of experience of communicators 116 3.87 7 188 4.00 8 198 3.88 10 Urgency, unexpectedness, and uncertainty 116 3.87 7 178 3.79 11 193 3.78 11 of situation Distance of office from site 119 3.97 6 177 3.77 12 192 3.76 12 Nature of communication setting 104 3.47 20 177 3.77 12 191 3.75 13 Participants relationship and their social 103 3.43 21 169 3.60 17 184 3.61 14 roles Understanding of received message 106 3.53 16 170 3.62 14 184 3.61 14 Complexity of the job 107 3.57 15 170 3.62 14 176 3.45 16 Nervousness/ emotional status 101 3.37 23 166 3.53 18 176 3.45 16 Geographical location 109 3.63 14 163 3.47 19 174 3.41 18 Types of activities being done 112 3.73 12 170 3.62 14 173 3.39 19 Level of cooperation 106 3.53 16 160 3.40 20 170 3.33 20 Experience of the site agent or clerk of 106 3.53 16 158 3.36 21 167 3.27 21 works Onsite supervision (design and 94 3.13 26 154 3.28 22 167 3.27 21 construction) Inferiority complex of artisans and 95 3.17 25 152 3.23 23 157 3.08 23 operatives Project delivery system (linkages) 102 3.40 22 146 3.11 25 155 3.04 24 Fear of the authority 111 3.70 13 151 3.21 24 148 2.90 25 Cultural differences (ethnic, religious, and 97 3.23 24 134 2.85 27 130 2.55 26 social differences) Gender of communicators 92 3.07 27 130 2.77 28 127 2.49 27 Physical factors ( noise, distance, time, 79 2.63 28 139 2.96 26 118 2.31 28 environment, physical medium) Linguistic variations 72 2.40 29 98 2.09 29 105 2.06 29

It was observed that all the respondents perceived drawings as the mostly used written communication transfer instrument, although the contractors ranked the bill of quantities at the same level with drawings, the professionals ranked specification second, while the clients perceived that bills of quantities and schedules are equally next to drawings followed by letters and notices in level of usage. The result also shows that the contractors ranked programmes and charts in the third place while professionals and clients ranked it in the sixth

237 position. All the respondents perceive health and safety management plan, quality management plan and early warning system as least used in written communication. There was an indication that the appropriate information sometimes may not be communicated, as the control of information according to Abdulhameed et al. (2012) contribute significantly to project success. The result of the study shows that detailing of drawings most significantly influence written communication which is similar to lack of detailed drawing seen as barrier to communication (Adedapo, 2009). Conclusions and Recommendation This study investigated the internal stakeholders‘ perceptions of the level of use written communication transfer media and instruments and factors influencing written communication effectiveness. It also compared the perceptions of contractors, professionals and clients on the above subject. It was concluded that all the stakeholders perceive health and safety management plan, quality management plan and early warning system as least used in written communication even though they are now components of contract documents in the National Building Code of Nigeria. The study also concluded that there is no significant variation in perceptions among the contractors, professionals and clients concerning level of use written communication transfer media and instruments, the factors influencing written communication effectiveness and the influence of written communication on performance of construction project in Nigeria. The study therefore recommends that for effective communication consideration should be placed on the transfer media and instruments most appropriate to a communication type and group of people concern. It is also recommended that health and safety management plan, quality management plan and early warning system/plan be also given prominence as contract document if project objective of safety and quality must be achieved. The study also recommends that the view of any of the category of stakeholders could be used in decision making on the subject matter as their perceptions do not significantly vary. References Abdulhameed, A.S., Bungwon, H.D. & Sheyin, A.Y. (2012). Construction Methodology in the Delivery of Building Projects in Nigeria. The Professional Builder, 3(2): 95-105. Adedapo, O. (2009). Effective Communication as an Aid to Construction Project Delivery, unpublished article, available: http://www.economywatch.com/world- industries/construction, accessed 28/2/2014. Affare, M.A.W. (2012). An Assessment of Project Communication Management on Construction Projects in Ghana. MBA, Kwame Nkrumah University of Science and Technology. Ahuja, V. & Yang, J. (2006). Communication Protocol for Building Project Management - The Potential of I.T. Enhanced Approaches for the Indian Building Practice. In Baldwin, A, Hui, E, & Wong, F (Eds.) BEAR 2006: Construction Sustainability and Innovation: Proceedings of the CIB W89 International Conference on Building Education and Research, 10-13, April, China, Hong Kong. Arnorsson, H. (2012). Optimizing the Information Flow on the Construction Site. MSc, Aalborg University. Beyh, S. & Kagioglou, M. (2004). Construction Sites Communications Towards the Integration of IP Telephony, Journal of Information Technology in Construction, 9: 325- 344.

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Chinyio, E. & Olomolaiye, P. (2010). Introducing Stakeholder Management. In: Chinyio, E. and Olomolaiye, P. (Eds), Construction Stakeholder Management (1st ed.), West Sussex: John Wiley and Sons: 1-12. Dainty, A., Moore, D. & Murray, M. (2006). Communication in Construction: Theory and Practice, Oxford: Routledge. Gibson, K. (2000). The Moral Basis of Stakeholder Theory. Journal of Business Ethics, 26(3), 245-257. Green, F.B. (2001). Managing the Unmanageable: Integrating the Supply Chain with New Developments in Software. Supply Chain Management: An International Journal, 6(5): 208-211. Karen, B.K. (2012). Communication in Architecture Project Management: The Case of Architecture Firms in Lebanon. PhD, Grenoble School of Management, Technology and Innovation. Mclennan, A. & Scott, G. (2002). Relationships in Project Delivery. Civil Contractors Federation Annual Conference, Hamilton Island October 5. Perumal, V.R. & Abubakar, A. (2011). The Need for Standardization of Documents Towards an Efficient Communication in the Construction Industry. World Applied Sciences Journal, 13(9): 1988-1995. Tam, C.M. (1999). Use of the Internet to Enhance Construction Communication: Total Information Transfer System, International Journal of Project Management, 17(2): 107- 111. Wallbauma, H., Silvab, L., Plessisc, C., Coled, R., Hoballahe, A. & Kranka, S. (2010). Motivating Stakeholders to Deliver Change. 3rd International Holcim Forum for Sustainable Construction – ―Re-inventing Construction‖ Universidad Iberoamericana, Mexico City – April 14-17.

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Knowledge of the Benefits of Green Building – Architects’ Perspectives DJ Hoffman and E König Department of Construction Economics, University of Pretoria, South Africa [email protected]

Abstract: The number of new certified Green Star accredited buildings in South Africa has been relatively low. Insufficient knowledge amongst stakeholders of the benefits offered by green building may have been a cause of this situation. This study evaluated the opinion of architects on stakeholders‘ knowledge regarding the benefits offered by green building in South Africa. The findings of the study were based on data from a questionnaire forwarded to 42 respondents from Gauteng to evaluate their perspectives on the levels of knowledge on the benefits offered by green building. The study revealed that respondents have some knowledge on the study object subject but also indicated conflicting responses regarding aspects such as return on investment or the ability to reduce vacancy factors. Respondents expressed a strong opinion that industry stakeholders are not sufficiently aware of green building benefits and that the GBCSA can do more to inform stakeholders about benefits of green building. The paper indicated that considerable scope may exist to inform industry stakeholders better and to increase the level of knowledge about green building and the benefits it offers. Institutions such as the GBCSA, South African Institute of Architects and other professional councils and associations can benefit from this. Shortcomings identified can be addressed through information to members and CPD lectures. The study was restricted to architects from Gauteng only. The study did not investigate the opinion of developers, owners or other built environment professionals on the stated research objective.

Keywords: Architects, Global warming, Green building, South Africa

Introduction

The negative effects of global warming such as rising average temperature and even a possible ice free winter by 2040 have been widely published (UNEP, 2007). Birne et al stated that climate change may be the most significant environmental challenge of our time (2009). The construction industry carries a lot of the blame for this situation as the industry is generates 50% of the world‘s waste, much of the water pollution and 40% of the world‘s air pollution (GBCSA, 2013). Buildings account for 25% of world wood harvest, one sixth of the world‘s fresh water withdrawal, and two-fifths of its materials and energy flows. It is therefore important that buildings should become more natural resource efficient (Makwarela, 2010).

The building industry‘s response was to motivate and move towards the design and construction of more energy efficient and sustainable green buildings that will reduce the emission of greenhouse gasses. In South Africa however the initial uptake of new green development has been relatively slow (Hoffman & Cloete, 2014). To increase the rate of new green developments, it is important for stakeholders such as developers, clients and other

240 professionals in the construction industry to be informed about the benefits offered by green building. This study evaluated the level of knowledge of built environment stakeholders regarding the benefits offered by green building as perceived by architects in South Africa.

Review of the related literature

Global warming The built environment produces 32% of the world‘s carbon dioxide emissions with buildings accounting for 15% of the world‘s fresh water resources and 40% of the earth‘s energy consumption (Gunnel, 2009). A 2010 study in the United States confirmed that water usage by buildings has increased by more than 26% between 1985 and 2005 and that the demolition and construction of buildings have been responsible for 60% of non-industrial waste. Only 25% of that waste is recovered through recycling (Fischer, 2010). Brown et al. (2009) have stated that Africa, including South Africa may be significantly exposed to climate change. Climate variability and may come at great cost for social and economic well-being in many parts of Africa. Food production is expected to become more unpredictable, water shortages will increase and more nations may experience shortages. Ecosystem change will increase, especially in South Africa.

Green Building Fischer (2010) characterizes green building as integrated building practices that significantly reduce the environmental footprint of a building over the entire life cycle of a building. Kats (2003) supports this definition and adds that sustainable buildings are sensitive to the environment, energy and resource consumption, impact on people and the world as a whole.

Sustainable construction manages the serviceability of a building during its lifetime as well as the demolition and recycling of resources and to reduce waste (Hill and Bowen, 1997). Sustainable buildings are more efficient that conventional buildings providing healthier learning, work and living environments with cleaner air and more natural light Kats (2003). Fischer indicated that in addition to elements such as energy, water, minerals, waste, and health, siting is also a prominent element impacting on transportation, ecology and smart growth (2010). South Africa is a developing country that relies on low grade coal for electricity generation. This is a major source for greenhouse gasses (Bodansky et al., 2007). In response to this the South African Bureau of Standards (SABS) developed the SANS 204 series of standards as a basis or minimum standards for buildings and construction methods for sustainable buildings. These requirements can result in up to 40% increased energy efficiencies of commercial buildings (Gunnel, 2009).

The transformation During the 1990‘s the building industry realized that public policy and the growing market demand for environmentally friendly buildings require changes to building design and operation. Measuring tools were needed for sustainability in the construction industry (Haapio & Viitaniemi, 2008). Although cost may be an issue, Nixon (2009) confirmed that people are much more attracted to products and services that are resource efficient. Kibert (2013) indicated that rapid penetration of green building in the United States was achieved by three primary drivers:

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 Green building design recognizes the effect of the construction industry on the well- being of human occupants.  Green building provides an ethical and practical response towards the global warming impact on the environment.  Sustainable construction over the entire life cycle of the buildings makes economic sense recovering initial capital cost within a relatively short period.

Cost and financial benefits

Life-cycle assessment The Life-cycle assessment (LCA) evaluates all environmental impacts associated with a specific product over its entire life cycle. Energy and water costs consumed by buildings are rising, due to the diminishing supply. This will result in a much shorter payback period for green investments (Circo, 2008).

Financial benefit According to Kats (2003) incorporating green building principles into the construction of buildings will result in an initial cost premium of 2-10%, but may result in a yield of over ten times the initial investment. Lower costs of energy, water, environmental and emission, operations and maintenance and waste disposal as well as savings from increased productivity and health are a few of the financial benefits of green building.

Barriers for professional consultants The general perception that green buildings are more expensive than conventional buildings and cannot be justified from a cost benefits perspective has created a significant obstacle for the advancement of green design and building (Kats, 2003). Circo (2008) opposed this assumption and offered that sustainability can be accomplished at very little additional cost. Developers and clients should focus on total investments cost over the life of the building to determine their profitability.

Lower operating cost is another major benefit offered by green building. Goodman (2013) supported this by indicating that future utility bills for inefficient buildings may be four times as costly as those of efficient buildings. Energy tracking and benchmarking will ultimately reduce one of the biggest operating expenses for building owners. The challenge for construction professionals is to adapt to sustainable design and construction and the additional cost incurred. Built environment professionals have an important function in the development of green building. However further research is required to establish in greater detail the extent of knowledge that exists amongst industry stakeholders about the benefits offered by green building. Research may also assist to clarify the levels of knowledge deemed sufficient to empower stakeholders towards accelerating the rate of new green developments.

Research methodology

This study focused on the opinion of architects only. Architects were identified as respondents as they are primarily responsible for the design of buildings and as principal agents often assist employers with investment decisions. The data for the study was obtained from a questionnaire forwarded to 42 architects in Gauteng Province. These architects were identified as being part of the consultant teams of recent new commercial real estate

242 developments in Gauteng. A total of 19 questionnaires were returned giving a response rate 45%. The questionnaire consisted of 16 questions that evaluated the levels of knowledge on the benefits offered by green building. The different questions originated from the review of the literature.

Findings

All of the respondents‘ firms have been practising in industry for longer than 10 years, with 58% having been in practise for more than 16 years. The individual respondent‘s data indicated that 37% had less than 5 years of experience, 16% had 6-10 years of experience, 21% had 11-15 years of experience and the remaining 26% had more than 15 years of experience.

Green building offers a high potential for return on investment A total of 58% of the respondents agreed with the above statement. However only 16% were strongly convinced and as much as 26% disagreed. All respondents who strongly agreed had more than 5 years of experience.

The benefits of green building A total of 84% of respondents were positive that green building benefits should be compared over the entire lifetime of buildings. The 16% of respondents who disagreed did not indicate any correlation with experience categories. One comment received was that ―clients like the idea of a green building, but are usually taken aback by the high construction costs, without fully evaluating the long term savings during the building's life cycle. Conventional buildings are cheaper to build and more expensive to maintain, whilst green building are more expensive to build and cheaper to maintain.‖

The CO2 footprint of buildings apply over the entire life cycle of the building Table 2 detailed that all respondents agreed that green building should focus on reducing the carbon footprint of buildings over their total life cycle while 58% absolute agree with the statement.

The rising electricity cost in SA will stimulate Green Building A total of 95% of respondents agreed that South Africa‘s rising electricity cost will be important in stimulating green building (see Table 3).

Table 1: The rising electricity cost in SA will stimulate Green Building

(%) Absolutely Disagree 0.00 Disagree 5.00 Agree 58.00 Absolutely Agree 37.00

The marketing image of Green building is important for developers A total of 84% of respondents were positive that the marketing benefits of green building are very important to developers (see Table 4). All of the least experienced respondents agreed with this. The 16% who disagreed that marketing is important all had more than 10 years of

243 experience (see Figure 1).Some respondents however pointed at less positive marketing aspects and one respondent commented that ―developers build green as a status thing, to earn public perception points of how 'caring' they are.‖

Figure 1: The benefit of the marketing image of Green building is important for developers

Developers/Clients may choose to build green to escape the possible penalties of future legislation The respondents differed widely on the motivational effect of penalties that may in future be enforced by legislation on sustainable buildings (see Table 5).

Table 2: Developers/Clients choose to build green to escape legislation penalties

(%) Absolutely Disagree 11.00 Disagree 53.00 Agree 32.00 Absolutely Agree 5.00

As much as 89% of the more experienced respondents disagreed that the effect of penalties will be significant. However, 57% of the least experience respondents agreed that penalising legislation may positively motivate green building decisions.

Figure 2: Developers/Clients choose to build green to escape the possible penalties of future legislation

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Client/Developers should experience lower vacancy factors from green building compared to conventional buildings Table 6 indicated that respondents had a fairly neutral opinion on the ability of green building to reduce vacancy of buildings. Only 10% of respondents had strong convictions about this issue.

Table 3: Client/Developers should experience lower vacancy factors from green building compared to conventional buildings

(%) Absolutely Disagree 5% Disagree 42% Agree 47% Absolutely Agree 5%

One respondent commented that he agrees in theory, but that not all green buildings offer very desirable working conditions - ―personally I‘ve seen a lot of ―Green Building‖ go wrong and it can be an uncomfortable place to live in.‖

Stakeholders in the construction industry are not fully aware of the benefits in building green A total of 79% of respondents agreed that stakeholders are not fully informed about green building benefits. Only 21 % were of the opinion that stakeholders are adequately informed.

Figure 3: Stakeholders in the construction industry are not fully aware of the benefits in building green

The Green Building Council of South African (GBCSA) should do more to inform clients/developers about the benefits of Green Building A large majority (84%) of respondents agreed that the GBCSA can do more to inform stakeholders about benefits of green building with 56% of these respondents being strong convinced that the GBCSA should do more to inform stakeholders. All the respondents with less than 5 years of experience agreed with the statement, indicating that younger architects may feel even less informed by and connected to the GBCSA.

However some respondents placed more emphasis on stakeholders‘ own responsibilities - ―The GBCSA is not here to babysit us; we just need to meet the standards to be on par with the rest of the world.‖

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Figure 4: The South African Green Building Council should do more to inform clients/developers about the benefits of Green Building

Conclusion and Further Research

The study revealed that the large majority of respondents are convinced that green building affects the entire lifetime of buildings. Aspects such as the evaluation of the benefits and the carbon footprint of the building are both included in this category.

As many as 95% of the respondents agree that rising electricity cost will stimulate green building in future, while 84% are of the opinion that the positive marketing image of green building strongly influence developers decisions. Although the data indicated that most respondents are generally positive about green building, almost half of them do not agree that green building will result in lower vacancy factors for green buildings. A total of 26% of respondents were not convinced about the positive return on investment potential of green building. The study indicated that 79% of respondents are of the opinion that stakeholders are not fully aware of green building benefits. Information about benefits of green building can be supplied by institutions as the GBCSA. A large majority of 84% of respondents agreed that the GBCSA can do more to inform stakeholders about benefits of green building.

The study revealed that whilst green building stakeholders such as architects are not uninformed about green building, considerable scope exists to inform stakeholders better and increase the level of knowledge about green building and the benefits it offers. Institutions such as the GBCSA, South African Institute of Architects and other professional councils and associations can benefit from taking note of the findings of the study. Some of the shortcomings that were identified can be addressed through information to members and CPD lectures. Recommendations for further research include to:  Repeat the study amongst a larger, more representative sample of South African architects;  To evaluate the role of the GBCSA in informing stakeholders in more detail, and  To evaluate the effect of green building on aspects such as marketing image or occupation rate in more detail.

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References

Birne, P., Boyle, A. & Redgewell, C. (2009). International Law and the Environment. Oxford. Bodansky, D., Brunnâee, J. & Hey, E. (2007). Oxford Handbook of International Environmental Law. Cape Town: Oxford University Press. Brown, O., Hammill, A. & McLeman; R. (2009). Climate change as the ‗new‘ security threat: Implications for Africa. Chichester: Blackwell Publishing. Farmer, (2009). Reducing carbon emissions from UK‘s non-domestic buildings. Available at: www.ukerc.ac.uk/support/tiki-download_file.php?fileId=414 Circo, C.J. (2008). Using Mandates and Incentives to Promote Sustainable Construction and Green Building Projects in the Private Sector: A Call for More State Land Use Policy Initiatives. Penn State Law Review, Vol. 112, 2008. Available at SSRN: http://ssrn.com/abstract=1066982 Fischer, E.A. (2010). Issues in Green Building and the Federal Response: An introduction. Congressional research service, Washington. Goodman, J. (2013). Energy benchmarking takes hold. Eco Building Pulse. [Online] Available at: http://ecobuildingpulse.com/news/2013/ecobuilding-pulse/energy- benchmarking-takes-hold/ Green Building Council of South Africa, 2013, The Inside Guide to Green Star SA. Available at: http://www.worldgbc.org/worldgbc/about/ [Accessed 13 April 2013]. Gunnel, K. (2009). Green building in South Africa: Emerging trends. Department of Environmental Affairs and Tourism document. Pretoria: DEAT. Haapio, A. & Viitaniemi, P. (2008). A critical review of building environmental assessment tools. Environmental Impact Assessment Review, 28(7), 469-482. Hoffman, D.J. & Cloete, C. (2014). Factors limiting Green Developments in South Africa – architects‘ comments. Association of Schools of Construction of South Africa (ASOCSA) 8th Built Environment Conference, 27-29 July 2014, Durban. Hill, R.C. & Bowen, P.A. (1997). Sustainable construction: principles and a framework for attainment. Construction Management and Economics, 15(2), 223-239. Kats, G.H. (2003). Green building costs and financial benefits document. Massachusetts Technology Collaborative. USA. Makwarela, M. (2010). Agriculture and environmental management department, Implementation of the Tshwane Integrated Environmental Policy: Green buildings by-law and policy. City of Tshwane. Mwebaza, R. & Kotzé, L.J. (eds) (2009). Environmental Governance and Climate Change in Africa: Legal Perspectives. ISS Monograph Series 167, Pretoria, South Africa, page 308. Nixon, J. (2009). Sustainable economic development: Initiatives, programmes and strategies for cities and regions document. Sustainable Systems Inc, USA. Strydom, H.A. & King, N.D. (2009). Fuggle & Rabie's Environmental Management in South Africa. 2nd ed. Cape Town: Juta. United Nations Environment Programme (UNEP), 2007. ‗Buildings and climate change; status, challenges and opportunities‘, Nairobi, Kenya.

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