Construction Industry In South Africa Research Articles

Joint Ventures in the South African Construction Industry: Factors Militating against Success

Joint construction ventures are a global business partnership approach to accomplishing jointly executed construction objectives. The success of joint ventures is not achieved without militating factors and complexity affecting the process. This study assessed the militating factors against joint venture success in the construction industry in South Africa. A quantitative research approach was adopted, using a purposive sampling technique to select participants for this study. In total, 190 copies of the questionnaire were sent out to construction stakeholders in Gauteng province, South Africa, and 185 copies of the questionnaire were retrieved. Data analysis was conducted in three stages: data reliability and validity, descriptive statistics, and exploratory factor analysis. The exploratory factor analysis (EFA) returned seven factors that provided a relevant understanding of the militating factors against joint venture success: differences in partners’ work values, ineffective regulatory frameworks, undefined goals, clashes between partners’ cultural values, economic viability, operational constraints, and conflicts of interest. This study recommends that joint venture formulation requires due diligence from partners to understand policy, organisational culture, sharing ratios, and economic viability to avoid unnecessary conflicts of interest and operational constraints.

A qualitative approach to investigate stakeholders' engagement in construction projects

PurposeStakeholder engagement in construction projects is an ingredient that contributes to project optimal performance. Many developing countries have a paucity of literature about stakeholders' engagement in construction projects. Therefore, the study investigated South Africa's shareholders' engagement in construction projects and recommended possible measures to mitigate potential limitations.Design/methodology/approachThe researchers collated data from South African experts in stakeholder engagement via a phenomenology type of qualitative research design. They explored the “perceived hindrances” facing stakeholders' engagement in construction projects and proffer measures to mitigate them. The study analysed collected data via thematic analysis and achieved saturation. Three themes emerged from the analysed data.FindingsFindings show that efficient stakeholder engagement will enhance team collaboration and integrated construction project delivery. Results identified the perceived limitations facing stakeholders' engagement in South Africa's construction projects and categorised them into individual perceived hindrances, organisational perceived hindrances and government-related perceived hindrances. Also, findings proffer measures to mitigate perceived hindrances via policies and programmes within the sector.Practical implicationsBesides enhancing policymakers and other stakeholders in South Africa's construction industry to understand the benefits of stakeholder engagement better, the study may stir up the construction sector's stakeholders to embrace enhanced and effective stakeholders' management.Originality/valueThis study contributes to construction project practice that involves stakeholders, as it reveals the underlying causes of perceived hindrances facing stakeholders' engagement in construction projects. Also, it proffers feasible solutions to mitigate these hindrances and enhance stakeholders' engagement within South Africa's construction projects.

Unprepared industry meet pandemic: COVID-19 and the South Africa construction industry

PurposeThis paper aims to determine the responses of construction organisations to the Coronavirus (COVID-19) pandemic and its associated lockdown and the impact on the South African construction industry (SACI).Design/methodology/approachThe study adopted a quantitative survey with responses sought from 825 contracting organisation’s representatives drawn from the database of the construction industry development board. The data gathered were analysed using percentage, mean item score and one-sample t-test. The reliability of the research instrument was also tested using the Cronbach alpha test.FindingsFindings revealed that most construction organisations implemented a complete travel ban and halting all business operations on sites and offices in a bid to curb the spread of the virus. Furthermore, whilst most construction organisations envisage significant disruption in their project delivery, the problem of job losses was regarded as a short, medium and long-term impact of the pandemic. Loss of revenue, a decline in the economy and business interruption are also some of the potential impacts of the COVID-19 pandemic on the SACI.Originality/valueThe study’s findings give practical insights on the potential impact of the pandemic on the construction industry and the possible approach needed to help cushion the effect on the industry.

A Delphi Study of Socio-Cognitive Predictors of Career Choice Behavior in the Construction Industry in South Africa

This paper presents findings of a Delphi study which sought to identify the key factors that influence and determine the career choices of women in the construction industry in the South African context. Adopting the Socio-Cognitive Career Theory (SCCT) as the study’s conceptual framework, a two-round iteration was performed to obtain the opinion of 14 experts actively involved in the South African construction industry. Consensus was achieved on ten predictors and 53 elements that influenced women’s decisions to undertake a career in the construction profession. Findings from the study revealed women’s career choices were influenced by gender, self-efficacy, socio-economic status, outcome expectations, goal representations, learning experiences, interests, social supports, perceived barriers and access to opportunity structures. Ethnicity was found to have insignificant importance and impact on their career choices. The implication of the research is that results from the study provides insight into the factors that could conceivably increase the participation of women who want to enter and remain in the construction work.

A construction Industry Case Factors of commercial banks’ loan eligibility of small businesses in South Africa: a construction industry case

This study determines the factors that affect commercial banks’ loan eligibility of small businesses in the construction industry in South Africa. A multiple case study design and six randomly selected small businesses (i.e., three unsuccessful-declined and three successful-approved loan applicants) were used in this study. The qualitative methodology was applied to interview three senior managers from a commercial bank and six senior officials of the businesses, which had undergone the assessment process. The small enterprise assets finance applications of interviewed clients’ outcomes and the credit scoring outcomes either formal complaint letters or minutes were also evaluated after the credit scoring decision had been made to obtain more in-depth data.
 The main finding of the study was that client’s relationship, background, character, collateral, capital, capacity and affordability are major factors of loan eligibility of small businesses in South Africa. Of particular importance was that, typical relationship-based term loans were based on a business relationship built over years of lending, allowing for substantial flexibility in loan terms.

Appraisal of stakeholders' willingness to adopt construction 4.0 technologies for construction projects

PurposeConstruction 4.0 technology has the capabilities for improving the design, management, operations and decision making of construction projects. Therefore, this study aimed at examining the willingness of construction professionals towards adopting construction 4.0 technologies.Design/methodology/approachThe study adopts a survey design, and construction professionals in South Africa are assessed using a convenience sampling technique through a structured questionnaire. The questionnaire was analysed with SPSS while statistical test like; mean score, t-test and principal component analysis was used to present the data.FindingsThe findings, from the analysis, revealed that the construction professionals are willing to adopt construction 4.0 technologies for construction project. However, the possibility of fully integrating the technologies into the construction industry is low. This is because the major technologies such as; Internet of things, robotics, human-computer interaction and cyber-physical systems that encourage smart construction site are rated as not important by the construction professionals.Practical implicationsIt is believed that the findings emanating from this study will serve as an indicator for investors that are interested in procuring construction 4.0 technologies for the construction industry.Originality/valueThis paper presents a framework for the application of construction 4.0 technologies for the construction industry. It also contributes to the development of digitalising construction industry in South Africa.

Improving occupational health and safety (OHS) in construction using Training-Within-Industry method

PurposeThe manufacturing industry is a well-known source of interventions adapted to solve problems in the construction industry. The use of Training-Within-Industry (TWI) is one such intervention adopted in the construction industry to solve the construction problem relating to occupational health and safety (OHS). The objectives of TWI are to help the industry to transfer knowledge and skills from management to the employees. Therefore, the purpose of this paper was to investigate whether TWI can reduce OHS problems by promoting “learning by doing” on construction sites.Design/methodology/approachA case-based-research method was used to investigate the reported OHS problems in the construction industry in South Africa. The data were quantitative and qualitative in nature; the questionnaire survey, semi-structured interview and focus group interview techniques were used to collect data in the study.FindingsThe findings provide a better understanding of the human contributions influencing the behaviour of people causing accidents on construction sites. The data show that construction project leaders struggle to promote “learning by doing” because of inappropriate behaviour, lack of communication and inadequate training provided to new workers on construction sites. Also, there is significant scope for TWI deployment in construction because of the inability of supervisors or management to promote “learning by doing” on construction sites.Practical implicationsBased on the research findings, it is discovered that OHS is a serious concern in the construction industry. Therefore, the adoption of learning by doing on a construction site would help to improve OHS outcome.Originality/valueThe study highlights the need to introduce TWI on construction sites to reduce human failure causing accidents. TWI could lead to improving the knowledge- and skills-transfer programmes for construction workers in favour of better safety performance.

Internal constraints to business performance in black-owned small to medium enterprises in the construction industry

Background: There has been an upsurge of black-owned small to medium enterprises (SMEs) in the construction industry in South Africa. However, many of them continue to face various challenges, which adversely affect their business performance. Aim: This article investigated the internal constraints influencing business performance in black-owned SMEs in the South African construction industry. Setting: The study was conducted using a purposive sample of 13 professionals employed by five black-owned SMEs operating in the construction industry in Gauteng Province, South Africa. Design, methodology and approach: A qualitative approach was followed involving semi-structured in-depth interviews with the selected participants. The collected data were analysed using content analysis. Results: After the content analysis, five constraints to business performance emerged: occupational health and safety, human resources, leadership style, workplace communication and resource allocation. Conclusion: The study offers insights on issues affecting the performance of black-owned SMEs in the construction industry in South Africa. Its findings facilitate the identification of the primary drivers of underperformance and are thus useful for the diagnosis of business performance challenges in SMEs operating in the construction industry.

Construction 4.0: The Future of the Construction Industry in South Africa

Construction 4.0: The Future of the Construction Industry in South Africa

The impact of emotional intelligence on employee motivation in the construction industry in South Africa

The purpose of this study was to investigate employee motivation and emotional intelligence and their interdependencies. This was a cross-sectional study conducted among 60 employees from a construction company. The pertinent factors of employee motivation and emotional intelligence were identified based on a dissection of the levels of emotional intelligence and employee motivation. Age, marital status, tertiary education and authority were identified as salient categorical components that affected emotional intelligence and employee motivation. The predominant determinants discovered were remuneration, purposeful job, and feeling of accomplishment. The study yielded a significant positive correlation between emotional intelligence and employee motivation at 0.732 (p < 0.001) and a coefficient of determination of 0.5358. It was also subsequently discovered that there is a more significant correlation between emotional intelligence and intrinsic employee motivation. The level of an individual's emotional intelligence had greater dominance over intrinsic employee motivation than on extrinsic employee motivation. Therefore, the organisation should use the predominant factors of motivation as part of a strategic plan to augment employee motivation. The organisation needs to consider employment of employee wellness programs, succession planning, skills development and monetary incentives as part of their policies.

The impact of emotional intelligence on employee motivation in the construction industry in South Africa

The purpose of this study was to investigate employee motivation and emotional intelligence and their interdependencies. This was a cross-sectional study conducted among 60 employees from a construction company. The pertinent factors of employee motivation and emotional intelligence were identified based on a dissection of the levels of emotional intelligence and employee motivation. Age, marital status, tertiary education and authority were identified as salient categorical components that affected emotional intelligence and employee motivation. The predominant determinants discovered were remuneration, purposeful job, and feeling of accomplishment. The study yielded a significant positive correlation between emotional intelligence and employee motivation at 0.732 (p < 0.001) and a coefficient of determination of 0.5358. It was also subsequently discovered that there is a more significant correlation between emotional intelligence and intrinsic employee motivation. The level of an individual's emotional intelligence had greater dominance over intrinsic employee motivation than on extrinsic employee motivation. Therefore, the organisation should use the predominant factors of motivation as part of a strategic plan to augment employee motivation. The organisation needs to consider employment of employee wellness programs, succession planning, skills development and monetary incentives as part of their policies.

The influence of government targeted procurement strategies on the growth performance of construction small and medium-sized contractors (SMCs) in South Africa

This paper examines government targeted procurement (TP) strategies in South Africa and whether these strategies have an influence on the growth performance of Small and medium-sized contractors (SMCs) in the construction industry. The rationale for this study stems from reports that while TP has been widely used as an instrument to improve the position of SMCs in the South African construction industry, three out of five SMCs do not become established firms. In addition, the nature of the influence of TP strategies on the growth performance of SMCs is not known. Following a review of existing literature, the study mainly adopted a quantitative research approach. Questionnaire surveys were administered to Construction Industry Development Board (cidb) Grades 3 to 6 contractors that have executed TP projects within the last 5 years. The collected data was subjected to descriptive and inferential statistical analyses –Spearman’s rank order correlationwas used as an index of association between the study variables. The study found that tendering equity is the most frequently used TP strategy, closely followed by preferencing and mandatory subcontracting. The study also found that positive significant associations exists among preferencing and turnover; third-party management and company assets; tendering equity, turnover and number of employees; as well as accelerated rotations, turnover and number of employees. The study concluded that government intervention through targeted procurement has the potential to achieve its intended results of improving the position of historically disadvantaged SMCs in the construction industry in South Africa if selected and implemented appropriately.

English

Due to its fragmented nature, the typically remote location of project sites and considerable reliance upon migrant workers, the construction industry in South Africa is adversely affected by the HIV/AIDS pandemic. The correct and consistent use of condoms is critical to combatting the spread of infection and reinfection. The demographic, behavioural and AIDS-related knowledge determinants of condom use at last sexual encounter were investigated in a survey of 512 site-based construction workers in the Western Cape Province. Half of all survey participants reported not having used a condom at last sexual encounter. Respondents most likely to have not used a condom were predominantly &lsquo;Black&rsquo; African, single, in the 27 to 36 and 37 to 49 years old age groups, and those engaging in risky sexual behavior. Gender, education, employment position, alcohol consumption and cannabis (&lsquo;dagga&rsquo;) use were not found to be significantly related to condom use, nor was the extent of workers&rsquo; AIDS-related knowledge. Workplace interventions by employers (in response to requests by the South African government for greater private sector involvement), whilst focusing on all employees, should concentrate their efforts on identifying and targeting those demographic sub-populations that are at greatest risk for lack of condom use. Particular attention should be given to construction workers who are migratory (rural to urban work-seekers), working on sites in remote areas, or working in environments where the appeal and likelihood of risky sexual behavior are anticipated to be greatest. Key words: Condom use, construction workers, South Africa.

Supply chain bottlenecks in the South African construction industry: Qualitative insights

Background: The construction industry in South Africa has a lot of potential but its performance is still restricted by numerous internal and external challenges. Unless these challenges are identified and understood better, further growth of this industry is likely to be hindered, which has negative economic implications for the South African economy.Objectives: This study investigated supply chain bottlenecks faced by the construction industry in South Africa. It also discussed solutions for addressing the identified bottlenecks in order to facilitate the continued development of supply chain management in the construction industry.Method: The study used a qualitative approach in which in-depth interviews were held with purposively selected senior managers drawn from the construction industry in South Africa. Content analysis using ATLAS.ti software was employed to identify the themes from the collected data.Findings: The findings of the study showed that supply chain management in the construction industry in South Africa is constrained by five major bottlenecks: skills and qualifications, procurement practices and systems, supply chain integration, supply chain relationships and the structure of the construction industry. Recommendations for addressing each of these five challenges were put forward.Conclusion: The study concludes that both awareness and application of supply chain management in the construction industry in South Africa remains inhibited, which creates opportunities for further improvements in this area to realise the full potential of the industry.

Sustainable Construction Practices: “A Lazy View” of Construction Professionals in the South Africa Construction Industry

The construction industry has been found to cause damaging effects to the environment by means of waste generation, energy and water depletion and several other forms of damage to the environment. This damage has led to experts and environmentalist calling for a sustainable way of carrying out construction activities. Thus, this study addresses the challenges hindering the adoption of sustainable construction practices in the South Africa construction industry. The data used in this research were sourced from both primary and secondary sources. The primary data was collected through a questionnaire aimed at practicing construction professional in the South African construction industry. Indicative Findings from the questionnaire survey revealed that the foremost challenges faced by South African construction industry towards the adoption of sustainable construction practices is the assumption (a lazy view) of additional cost to building projects, followed by limited understanding of the benefits of sustainable construction amongst others. The study contributes to sustainability thinking in the South African construction industry; and it is recommended that strategies and actions should be pursued actively to speed up the process in creating a sustainable-oriented construction industry, which is paramount towards building a sustainable future.

Performance evaluation of contractor development programmes in South Africa

The performance of the construction industry in South Africa is supported by its industry players, such as the construction contractors, and cannot be underestimated. The designed Contractor Development Programmes (CDPs) in South Africa are aimed at creating an enabling environment for the survival and sustainability of Small, Medium and Micro Enterprise (SMME) contractors. Despite the prime aim of the CDPs in facilitating sustainable growths among SMMEs, the CDPs, however, have not been adequately evaluated by their beneficiaries, according to existing literature. Therefore, the need for a study to investigate the impact of the CDPs on beneficiaries is prudent and formed the rational for this study. The aim of this study was to carry out performance evaluation from the perspective of the CDP beneficiaries. Questionnaire survey and structured interviews were adopted using construction SMMEs as the study population who were selected via the purposive sampling technique. This method was appropriate because it gave respondents the opportunity to express their views on the impact of the CDPs. The study found that beneficiaries were comparatively satisfied with the CDPs but requested that they should be given a face-lift to upgrade them and make them more sustainable. The study also established that there are gaps in the CDPs that the implementing agencies should cover to ensure the successful implementation of the CDPs. Further, the study concluded that continuous mentorship programmes for contractors is an apparent solution where performance of CDPs is inadequate, but that this vital component of training is lacking in most South African CDPs.

Eliciting the Financial Challenges Facing Emerging Contractors in Developing Countries Using the Critical Incident Technique: A Case of South African Construction Industry

The purpose of this paper was to determine the financial critical incidents that are encountered by emerging contractors in the construction industry in Gauteng, South Africa. The methodology of assessment was based on critical incident technique, a qualitative method which has been considered reliable in tourism and hospitality studies. An interview guide which was evaluated in terms of reliability and validity was used to collect critical incidents from the respondents. Based on the interviews conducted, the respondents highlighted twenty eight financial critical incidents perceived to have an impact or impacts on Emerging Contractors’ performance. The incidents identified were the inability of Emerging Contractors to properly manage cash flow, poor budgetary planning and cash flow, poor financial decision making and lack of collateral. In order to improve Emerging Contractors’ performance, executives are required to plan construction projects in order to guide their execution and control. The limitation of the study was that the perceptions drawn were extracted from 12 respondents who represented emerging contractors in Gauteng Province. Therefore, the results of the study cannot be generalised to the entire South Africa construction industry, however they can be used as part of the solution towards Emerging Contractors’ performance.

Determinants Predicting Credit Accessibility within Small and Medium-sized Enterprises in the South African Construction Industry

The contribution of Small and Medium-sized Enterprise (SME) sector in economic development, job creation and income generation has been recognized worldwide. These contributions are effectively articulated in South Africa construction industry discourse. However, the main problem limiting the SMEs sector to contribute fully in the mainstream economy is the shortage of finance. This study examines the impact of firm characteristics in access to credit by the South African SMEs in the construction industry. A deductive methodological approach was used to examine this problem. This paper utilises a combination of primary data emanating from structured survey questionnaires supplemented by secondary source of data from an extensive literature review, in order to present insightful commentary about credit accessibility within SMEs in South Africa. The structured survey questionnaire was administered to 179 construction small and medium organizations to elicit relevant data about their credit accessibility. Binary logistic regression was applied to determine the influence of demographic variables on credit accessibility. The equation specified access to credit as dependent variable while firm and personnel characteristics as independent variable. The statistical package for social science version 22 was used. The results indicate that firm characteristics influence access to finance. The study recommends that South Africa SME contractors should maintain attractive firm attributes to stimulate lenders to extend finance to their investments.

Mass and Density of Materials: Civil Engineering Students’ Knowledge and Perceptions

The construction industry in South Africa and worldwide generates a disproportionate number of fatalities, injuries and is associated with disease, the direct and indirect cost of which contributes to the cumulative cost of construction. Many injuries are musculoskeletal related in the form of sprains and strains arising from the handling of materials, which process is managed by, inter alia, civil engineers. Furthermore, civil engineers as designers influence construction ergonomics through the specification of materials and the related methods. The purpose of the paper is to present the results of a study conducted among civil engineering students in a South African university, the objectives being to determine their knowledge and perceptions relative to the mass and density of materials and construction ergonomics. The following constitute the salient results: knowledge relative to the mass and density of materials is limited; students appreciate that the mass and density of materials impacts on construction ergonomics; students rate their knowledge of the mass and density of materials as limited as opposed to extensive, and students appreciate the potential of the consideration of the mass and density of materials to contribute to an improvement in construction ergonomics. Conclusions include that: students lack knowledge and awareness relative to the mass and density of materials; students are precluded from conducting optimum design hazard identification and risk assessments, and Civil Engineering education must be reviewed in terms of addressing / referring to construction health and safety, and ergonomics in other subjects.

A Study on the Leadership Behaviour, Safety Leadership and Safety Performance in the Construction Industry in South Africa

Review on recent publications of employee safety to investigate the relationship between leadership behaviour, safety communication and performance in the construction industry.Method The study is a cross sectional study, over 348 questionnaires were e-mailed to construction companies in Gauteng, with 155 valid responses received and 44.5% valid response rate achieved. Confirmatory Factor Analysis was carried out to test the factor structure and determine if the composite reliability was significant with a factor loading of > 0.5, resulting in an acceptable model fit. Through the analysis of SPSS, the results show that leadership visibility and behaviour affects safety culture and safety performance in the construction industry. Safety performance was affected and improved with contingency leadership and a positive safety organisational culture. The study suggests improving safety performance by providing well-entrenched safety management systems with the foundation being, safety leadership, communication, commitment and employee training.