Abstract
The construction industry is dominated by small- and medium-scale contractors (SMCs) who face an emerging trend of unique challenges in the implementation of projects. The study was aimed at examining inhibiting factors that influence performance of SMCs in terms of “quality of work,” “tender estimation,” “tender preparation,” and “timely completion of construction projects” in Malawi. A survey questionnaire was administered to 370 players in the construction industry which included public sector clients, contractors, consultants, and construction resource trainers in order to elicit data from 118 variables that were identified through a careful literature review. The inhibiting factors were generally dominated by economic issues, which was an emerging trend to what has been previously reported in the sub-Saharan region. The first highest ranked inhibiting factors were high lending interest regimes offered by financial institutions; stringent conditions to access capital; fluctuation of currency; stringent requirements for obtaining bonds; and high taxes. The research lays the foundation for further understanding of inhibitors on performance of SMCs in an evolving world which is being impacted by global factors and punctuated by sudden changes.
Highlights
Introduction and BackgroundThe definition of a small-scale contractor varies from country to country
This study considered the first 24 variables ranked by major players in the construction industry collectively and individually to be factors requiring most attention with respect to the small- and medium-scale contractors (SMCs) in Malawi
The study found that the main inhibitors to performance of small and medium sized contractors were economic in nature
Summary
Introduction and BackgroundThe definition of a small-scale contractor varies from country to country. A small-scale contractor is defined broadly as one with limited capital investment, who may need financial and managerial support to effectively run his or her business [1]. This description of small-scale contractors suits characteristics of firms classified by the National Construction Industry Council (NCIC) of Malawi as small- and mediumscale contractors [2]. Most governments have outsourced to the private sector some of the activities that were previously carried out in-house by government departments This measure has been adopted by most states in the sub-Saharan region. The best option for a given country depends on the state of development of the construction industry (consultant/contractor capacities, experience with contracting) [5]
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