Framework to Manage the Impacts on the Contractor’s Budget for Construction Projects Due to the Economic Crisis in Sri Lanka

Abstract

While several studies have separately investigated the management of the contractor’s budget and the impact of the economic crisis in Sri Lanka, the novel contribution of this study lies in its unique exploration of the synergy between these two crucial areas. Therefore, this study aimed to assess how to manage the impacts of the economic crisis on the contractor’s construction budget in Sri Lanka This research study successfully identified the factors influencing the contractor’s budget amid the economic crisis in Sri Lanka, along with effective solutions to mitigate these impacts. For that, the qualitative approach with semi-structured interviews using experts for the data collection through three qualitative Delphi rounds was used. The collected data were analyzed using manual content analysis. In there, twenty-three (23) significant factors as factors affecting the contractor’s budget due to the economic crisis in Sri Lanka, eleven (11) effects of the economic crisis on the construction industry in Sri Lanka, and eighteen (18) solutions to reduce the impact of the Sri Lankan economic crisis on the contractor’s budget were identified. Finally, a framework was developed based on the findings which will hold significant value for Contractors as that provides valuable insights and practical measures to counter the challenges posed by the economic crisis on construction projects.