Construction Industry Practitioners Research Articles

Construction Price Index Prediction through ARMA with Inflation Effect: Case of Thailand Construction Industry

Over-budgeting due to inflation is a common phenomenon in the construction industry of both developed and developing countries. Inflation, with time changes, leaves an adverse effect on the project budget. Hence, this study aims to focus on the construction price index (CPI) behavior and inspect its correlation with inflation in Thailand’s construction industry as there has not been much work performed. The prediction of CPI was made from 2024 to 2028, relying on the data set from 2000 to 2023. The relationship between inflation and CPI categories helps in prediction by considering inflation as the independent variable and CPI (All Commodities, Lumber and Wood Products, Cement, and Iron Products) as the dependent variable that was incorporated in EViews to perform automated ARIMA forecasting. The correlation results show that out of four CPI, only Iron Products showed a significant relationship with inflation. For All Commodities, Lumber, and Wood Products, the predicted values were fluctuating, while for Cement and Iron Products, a clear seasonal pattern was observed. This prediction gives a direction to construction industry practitioners to make necessary adjustments to their budget estimation before signing the contract to overcome cost overrun obstruction.

Value Engineering Adoption’s Barriers and Solutions: The Case of Saudi Arabia’s Construction Industry

Several developing countries around the globe have launched their future visions, which include concrete strategic plans that involve many kinds of mega-construction projects. One common goal across these visions is to increase the efficiency of construction projects’ huge expenditures using recent sustainable, practical engineering tools, such as the value engineering (VE) approach. Although the VE approach has been around for a few years now, some barriers prevent the popularity of its application in different construction projects. This research investigates the barriers to adopting VE through a systematic literature review. This study has categorized the application barriers using thematic analysis under three main categories: barriers related to practitioners’ knowledge and background, barriers associated with the behavior of practitioners towards VE, and barriers related to the implementation of VE. Moreover, this research has investigated solutions to overcome these barriers and improve the application of VE in construction projects. Saudi Arabia’s construction industry is used as a case study. A survey was distributed to Saudi construction industry practitioners using the snowballing technique to evaluate the criticality of the found barriers to adopting VE and the best strategic solutions to overcome these barriers using the importance–performance analysis (IPA) approach. Based on the results of this study we have specifically recommended including a VE course in college engineering programs and an incentive clause in construction contracts to encourage VE application on construction projects at the top of the list of proposed solutions. Finally, defining the criticality of barriers and the effectiveness of solutions will help enhance the application of VE and sustainability practices in the Saudi Arabian construction industry and around the globe.

The Influence of Fundamental and Macroeconomic Factors on Stock Returns in Building Construction Companies Listed on the Indonesian Stock Exchange for the 2018-2022 Period

This research focuses on analyzing the impact of fundamental and macroeconomic factors on stock returns within the building construction sector of companies listed on the Indonesia Stock Exchange during the period from 2018 to 2022. Employing a quantitative, associative approach, the study encompasses a population of 25 building construction companies, with a purposive sampling method narrowing it down to 14 companies. The research employs multiple linear regression analysis using IBM SPSS Statistics 26 software as the analytical tool. The findings reveal that the Return on Equity Ratio (ROE) and Debt to Equity Ratio (DER) exert a negative and significant influence on stock returns. Furthermore, economic growth (GDP) demonstrates a positive and significant impact, while inflation and interest rates exhibit a negative and insignificant effect on stock returns. Collectively, these factors, including ROE, DER, GDP, inflation, and interest rates, collectively exert a significant influence on stock returns. The implications of these findings underscore the importance of considering these factors for investors, policymakers, and practitioners in the building construction industry.

Challenges to adopt digital construction technologies in the Jordanian construction industry

Purpose This study aims to examine the challenges facing the construction industry practitioners toward adopting digital construction technologies in the Jordanian construction industry. Design/methodology/approach Quantitative methods were used by reviewing the related literature to include 16 challenges that face the Jordanian construction industry in adopting digital construction. A questionnaire was used to achieve the desired study objectives for 373 respondents from various institutions and companies. The questionnaire was analyzed with SPSS using statistical tests such as mean score, Kruskal–Wallis H test and factor analysis. Findings After collecting the quantitative data, the study showed that the most challenges facing construction industry practitioners toward adopting digital construction techniques are lack of qualified workers, high requirement for computing equipment’s, high initial cost of bringing these technologies to the market and construction firms low investment in research and development. These challenges faced by respondents were divided into three main factors, namely, construction’s nature, financial constraints and poor management support. Originality/value This study provides information and statistics on the challenges that face individuals or companies toward adopting digital construction techniques in Jordan. It proposes recommendations and proper practical implantation strategies to overcome the challenges.

The Relationship between BIM Application and Project Sustainability Performance: Mediation Role of Green Innovation and Moderating Role of Institutional Pressures

Project sustainability has become a research hotspot in the construction industry and a crucial driving force for the successful delivery of projects. How enterprises can improve project sustainability performance and realize sustainable development by applying BIM has become an important research topic. In this study, based on the resource-based view and institutional theory, a relationship model of BIM application affecting project sustainability performance is constructed, and data from 449 questionnaires with electric power construction industry practitioners obtained by the two-stage data collection method are used to explore the relationship between BIM application and project sustainability performance, and to investigate the mediating role of green innovation and the moderating role of institutional pressures. The study found that: (1) BIM application has a significant positive impact on project sustainability performance; (2) BIM application has a significant positive predictive effect on green innovation, and green innovation plays a mediating role in the relationship between BIM application and project sustainability performance; and (3) under a high degree of institutional pressures, the positive relationship between BIM application and green innovation is strengthened, and, in this case, the mediating role of green innovation is enhanced. The study results help to expand the theoretical analysis of the relationship between BIM application and project sustainability performance and provide practical guidance for improving project sustainability. Finally, the data in this study only come from the power construction industry and do not differentiate between the types of green innovations, and further research could be conducted on these two aspects in the future.

Influence of blockchain adoption barriers and drivers on potential application areas in the construction lifecycle: partial least squares structural equation modelling (PLS-SEM) approach

PurposeThe construction industry faces public criticism for issues like wastefulness, inefficiency, slim profits, scheduling setbacks, budget overruns, quality concerns, trust deficits, transparency, coordination, communication and fraud. This paper aims to assess the nexus between barriers and drivers for adopting blockchain in construction and its impact on construction lifecycle.Design/methodology/approachA quantitative research approach was used to collect data using a well-structured questionnaire survey. The survey, which used snowball sampling, included 155 Nigerian construction experts that included architects, builders, quantity surveyors and engineers in the built environment. The data were analysed using partial least squares structural equation modelling (PLS-SEM), which allowed for a thorough evaluation of the proposed relationships as well as industry-specific insights.FindingsThe study's findings validate the conceptual framework established. The results indicate that implementing blockchain across all stages of construction projects has the potential to improve the construction process by 88.2% through its drivers. However, there were no significant relationships found between the barriers to adopting blockchain and the potential application areas in the construction lifecycle.Research limitations/implicationsThis research was carried out in the South-western which is one of the six geo-political zones/regions in Nigeria, using a cross-sectional survey method. The study did not investigate the interdependence of the identified categories of drivers and barriers, limiting a comprehensive understanding of the complex dynamics and interactions influencing blockchain adoption in construction. The study is expected to stimulate further exploration and generate new insights on how blockchain technology (BT) can influence various stages of the construction lifecycle.Practical implicationsThe findings will be immensely beneficial to both professionals and practitioners in the Nigerian construction industry in learning about the potential of BT application in improving the construction lifecycle.Originality/valueThis paper developed and assessed a conceptual framework by investigating the interrelationships between the constructs. The findings have important implications for the construction industry, as they offer opportunities to improve the construction process and overall lifecycle. The findings are useful for researchers interested in the potential impact of BT on the construction lifecycle and its wider implications.

Proactive Approach to Measure Safety Management on Building Projects in Saudi Arabia

Safety management is important throughout the world specifically on building projects, which are prone to accidents due to their unique operations, dynamic and ever-changing nature. In every country, contractors implement safety management systems (SMSs) to avoid accidents and comply with applicable laws, regulations and to provide safe work environments for their workers. Nonetheless, accidents still happen on many building projects in the country. The objective of this work is to measure safety management as perceived on building projects by employing a proactive approach in the Kingdom of Saudi Arabia to improve site safety. A survey instrument is utilized to gather data from building projects. Another questionnaire is used to conduct interviews with the key managers on the same projects. Analysis of the questionnaire survey is performed after entering the data into SPSS software by applying factor analysis and multiple linear regression. Factor analysis extracted two significant factors, including “management commitment, employee involvement, and safety training”—factor 1, and “project safety plan, safety committee, and safe use of equipment”—factor 2, which proactively measure the implementation of safety management on the building projects. The safety model obtained by multiple regression analysis identifies two significant contributors to the performance of the SMS. Analysis of the interviews complemented and validated the results of the questionnaire survey. The findings provide in-depth understanding of proactively measuring safety management on building projects for the construction industry practitioners to make project sites safer.

Overcoming barriers to smart safety management system implementation in the construction industry

The reliance on networked technologies in construction safety and health management is expected to increase; however, studies have reported potential resistance to the broad implementation of smart technologies within structured construction safety management systems (SMS). This study examines the challenges and drivers impacting the implementation of smart SMS in the construction industry using quantitative and qualitative research methods. The current state of safety knowledge and practices was reviewed and critical insights were obtained from construction industry practitioners. To identify barriers and solutions to implementing smart technologies in construction safety management, a literature review was conducted. Based on this review and semi-structured expert interviews, a survey was developed and distributed to U.S. construction industry management to assess their perceptions of these barriers and strategies. The study revealed 24 implementation barriers of which 14 were considered critical with mean normalized values ≥ 0.50. These barriers were categorized into four groups – organization, infrastructure, cost, and system integration-related barriers based on the correlation between the four different groups. Sixteen strategies that could help overcome these challenges and improve the integration of IoT-SMS technologies were uncovered and discussed. The findings from this study extend technology implementation theories by proposing an organization-infrastructure-cost-system integration framework for SMS implementation. Moreover, the study creates a foundation for evaluating barriers and strategies associated with implementing technology-driven SMS in the construction industry, thereby advancing research at the intersection of SMS and emerging technologies.

Assessment of costs and benefits of green retrofit technologies: Case study of hotel buildings in Sri Lanka

With the rising impact of greenhouse gas emissions, resource depletion, and the global interest in sustainability advancements within all sectors, construction industry practitioners are also interested in incorporating sustainable features and practices into their buildings. Nevertheless, most of the commercial buildings in Sri Lanka had been constructed during the unprecedented urbanization between 1995 and 2010, thus, before sustainable concepts became more prominent. Therefore, existing buildings in Sri Lanka is experiencing ever-increasing energy consumption, resulting in higher utility costs, with which green retrofitting has become imperative, notably in hotel buildings. This study, therefore, conducted an economic evaluation of three existing hotel buildings to establish an account of the cost implications and saving potentials of different green retrofit technologies. The data collected through document reviews and site visits were analysed using net present value and simple payback period calculations. Although number of retrofitting technologies have been incorporated in the selected buildings, more weight has been given to incorporating technologies to achieve energy efficiency and indoor environmental quality. Considering the financial viability, all the implemented green retrofits have a positive return on investment and less than ten years of payback period, except LED televisions. Amongst the implemented retrofits, biomass boilers, energy-efficient chillers, and solar PV systems have the highest energy-saving efficiency, followed by VFDs and LED lighting, while LED televisions have the lowest. The study's findings contribute to industry practitioners identifying the appropriate green retrofits based on the cost implications and savings potential and enhancing the sustainability of the built environments by reducing greenhouse gas emissions and depletion of natural resources.

Factors inhibiting the adoption of industrial revolution 4.0 in Malaysian construction industry

PurposeThe construction industry is a major economic driver in Malaysia, playing a pivotal role in the developing nations economic growth. Malaysia's reliance on labor-driven construction practices often sees local industry lagging in adopting technological advancements common to the construction sector on a global scale. This study investigates the challenges faced by project players in using new construction industrial revolution (IR) 4.0 technologies and the difficulties in implementing these technologies in construction projects.Design/methodology/approachA quantitative survey was distributed to 183 practitioners in the Malaysian construction industry. The collected data (N = 121) has been analyzed using statistical software to calculate relative importance index values for the identified factors. A triangulation approach to validate the factors obtained from the survey was conducted with an expert group to ensure there were no additional considerations identified in the study.FindingsThe study results show that the main factors in adopting construction IR 4.0 technologies are 1) high implementation costs, 2) hesitation to adopt technologies, 3) lack of standards, 4) legal and contractual uncertainty and 5) complexity. By investigating these factors, cost and regulation issues can gradually be resolved, with construction firms implementing new technologies, educating workers and ensuring government involvement in training for skill development to support IR 4.0.Originality/valueThe outcome of these efforts to resolve construction productivity would be beneficial in their industry impact on practice and digital transformation. Additionally, the results add to the body of knowledge for construction practitioners and technology developers to work together efficiently on the implementation of construction 4.0 technologies.

Impact of COVID-19 Pandemic on Construction Business in Nigeria

Construction is one of the most important sectors in the Nigerian economy employing a large number of people in its workforce. The industry contributed 4.09% of real GDP in 2019 to the Nigerian economy. This contribution may nosedive if concerted efforts are not made as a result of the outbreak of the novel coronavirus. However, the spread of the coronavirus pandemic has continued unabated across the world, and both public and private sectors have formulated different ways of responding to the pandemic. Their responses have attendant economic impact on all sectors of the economy, but that of construction seems to be the dire. The study is therefore aimed at analysing the impact of COVID-19 pandemic on the operations of construction businesses in the Nigerian construction industry. The study adopted quantitative research approach using questionnaire survey to obtain data on construction businesses from major stakeholders’ in the industry. A combination of snowballing and purposive sampling techniques were used to obtain 312 valid responses used for the analysis presented in this paper. The study reveals that the most severe impact of the COVID-19 is financial with 77% severity index, this is followed by infrastructure impact with 74.4% while quality and safety impacts is the least ranked category with 53%. These findings showed that the outbreak of the COVID-19 have significant impact on construction businesses. The study recommends that parties to construction contracts should consider providing expressly outbreak of this nature in future in their contractual arrangements with a view to dealing at the outset with the risks associated with them. Government should provide palliatives for the construction industry post COVID-19 to be able to counteract the effects of the pandemic going forward. The study has implication for the practitioners in the Nigerian construction industry as well as the policy makers to understand the significant role being played by the industry and its effect on other sectors of the economy.

Cost-benefits of relocatable modular buildings (RMB) for  construction site offices: the case of Sri Lanka

Relocatable Modular Building (RMB) technology is widely utilised worldwide as a versatile solution for temporary shelter needs, including site offices. The substantial cost benefits associated with RMBs have been acknowledged globally. Nevertheless, the lack of empirical data hampers the ability to substantiate the cost advantages of utilising RMB technology. Therefore, the study aimed to find the cost benefits of RMB technology for temporary offices on construction sites in Sri Lanka through Life Cycle Cost Assessment (LCCA). From a methodological perspective, the research adopted a case study strategy. Data was mainly collected through semi-structured interviews, document reviews, and market surveys while following LCCA as the analysis method to derive findings. The findings disclosed that the initial cost of an RMB site office is 32% higher than a conventional site office, but the annual cost saving is 23%. Hence, it is worth investing in RMB because of its yearly cost saving due to its long life span and higher salvage value. Sensitivity analysis further established that employing an RMB is more cost-effective for contractors even at different discount rates, functional lifetimes, and project durations. This study enlightens construction industry practitioners about the cost-effective utilisation of RMBsin their projects.

Evaluation of the drivers to the implementation of blockchain technology in the construction supply chain management in Nigeria

PurposeBlockchain technology (BT) is a relatively new technological innovation in all industries, including the construction industry, that is used to improve supply chain management. Therefore, this study assesses the drivers for the implementation of BT in the construction supply chain management in Nigeria.Design/methodology/approachThis study used a quantitative research approach, with a questionnaire survey administered to professionals in the Nigerian construction industry using the snowball sampling method, yielding 155 respondents. The collected data were analysed using descriptive and exploratory factor analysis (EFA) while Cronbach’s alpha was used to evaluate the reliability.FindingsThe analysis revealed that all the identified drivers ranked higher than the average mean item score, with level of awareness of the new technology and data management ranking topmost. The identified drivers were clustered into five categories using EFA: technological driver, social-economic driver, management driver, transparency and security driver and information driver.Research limitations/implicationsThis research was carried out in the Southwestern region which is one of the six geo-political zones in Nigeria using a cross-sectional survey method.Practical implicationsThe findings will be extremely useful to both professionals and practitioners in the Nigerian construction industry in gaining knowledge about the potential drivers to the implementation of BT in construction supply chain management.Originality/valueThe research categorized the drivers into technological, social-economic, management, transparency and security and information driver. It also identified that level of awareness of BT as the major driver in the implementation of BT in construction supply chain management.

Tackling stress of project management practitioners in the Australian construction industry: the causes, effects and alleviation

PurposeThe problem of stress is increasingly gaining attention in the construction industry in recent years. This study is aimed at examining the causes, effects and possible alleviation of stress of project management (PM) practitioners so that their stress could be appropriately managed and reduced, which would contribute to improved mental health.Design/methodology/approachPrimary data were collected in an online questionnaire survey via Qualtrics. Questions ranged from PM practitioners’ stressors, stress and performance under stress to stress alleviation tools and techniques. One hundred and five PM practitioners completed the questionnaire. Their responses were compiled and analyzed using descriptive statistics, correlation and regression.FindingsThe results confirmed that the identified stressors tended to increase stress of PM practitioners. All stressors tested in this study were found to have negative impact on the performance of PM practitioners. In particular, the burnout stressors were seen as the key stressors that influence the performance of PM practitioners and have a strong correlation with all the other stressors. It was also found that a number of tools and techniques can reduce the impact of stressors on PM practitioners.Originality/valueThis study has taken a specific focus on stress-related issues of PM practitioners in the construction industry due to their critical role in this project-dominated industry. Using the Job Demand-Resource theory, a holistic examination was not only conducted on stress and stressors but also on alleviation tools and techniques. This study has thus made significant contribution to the ongoing research aimed at finding solutions to mental health-related problems in the project-dominated construction industry, thereby achieving the United Nations’ social sustainability development goals.

Identifying and prioritizing sustainability indicators for China's assessing demolition waste management using modified Delphi-analytic hierarchy process method.

Addressing the sustainability issues arising from construction and demolition waste management (DWM) has gained little traction due to the lack of incentives, stringent regulations, and systematic guidance. This study aims to empower systematic decision-making concerning DWM alternative selection by developing a sustainability assessment framework by coupling a modified Delphi method with the multicriteria decision analysis technique. First, the study identifies a comprehensive inventory of indicators across three dimensions of sustainability in the context of DWM. Next, the study combines a modified Delphi method with the analytic hierarchy process to validate and prioritize the selected sustainability indicators. For the first time, insights regarding the DWM sustainability indicators from China's construction industry practitioners' perspectives are elicited using a mixed method comprising online semistructured interviews and two rounds of questionnaire surveys. Experts participating in the research are mostly based in Guangzhou and Shenzhen, where local governments exhaust all efforts in promoting carbon-neutral and sustainable development. The findings reveal that eight sustainability indicators were regarded as the determinants for the sustainability performance of DWM, with the global warming potential (32%), energy efficiency (16.1%) and land use (13.5%) receiving the highest preference scores (weights) based on the experts' judgment. Notably, the economic factors like the total cost (6.54%) appeared not highly prioritized by the local experts as typically did in the previous studies from developing countries.

How to foster contractors’ in-role and extra-role behavior: the role of interpersonal ties and dependence asymmetry

Boundary spanners of construction projects are representatives of the interaction between the client and the contractor, and their good interpersonal ties are a catalyst for the development of cooperation between the two organizations and play an important role in project success. However, in the existing research, the relationship between interpersonal ties and cooperative behavior is still controversial, and little attention is paid to the individual level of construction projects. Therefore, this study explores the influence mechanism of each dimension of boundary spanners’ interpersonal ties (obligatory ties, instrumental ties, and affective ties) on contractors’ cooperative behavior (in-role and extra-role behavior) and the moderating effect of dependence asymmetry. The data from 248 questionnaires completed by practitioners in the Chinese construction industry show that obligatory ties positively affect contractors’ in-role and extra-role behavior, and the correlation between obligatory ties and in-role and extra-role behavior is positively moderated by dependence asymmetry. Moreover, instrumental ties are positively related to contractors’ in-role and extra-role behavior. However, affective ties only positively affect contractors’ extra-role behavior, and this effect is negatively moderated by dependence asymmetry. These findings have implications for clients and contractors and can help them maintain their relationships, thus improving project performance.

Analysis of factors affecting construction and demolition waste safe disposal in Egypt

Construction and demolition waste (CDW) is produced in conjunction with construction projects at various phases. In Egypt's situation, the disposal of CDW issue has grown to be a major problem, and there is an urgent need to discover a safe disposal method. Based on the exploration of the literature, three main factors that affect the safe disposal of CDW (SDCDW) were found as follows: (1) management of route, collection and transportation; (2) determination of illegal waste dumping sites; and (3) construction waste tracking and scheduling. In this paper, a wide sample of construction industry academics and practitioners were approached by an online survey questionnaire for (1) investigating the applicability and effectiveness of SDCDW factors in the Egyptian construction industry; and (2) examining the relationship between these factors and SDCDW. Different statistical methods were used such as Relative Importance Index (RII) to rank the framework items. In addition, Bi-variate correlation analysis was conducted to test the effectiveness of automation techniques included in the framework with respect to the level of agreement upon reaching safe disposal of CDW. The findings showed that (1) among the various factors, “selection of the shortest path transport route” has the highest applicability, while “detection of CDW illegal disposal sites” is the most effective factor; and (2) there exist positive statistical relationships between SDCDW and all of the various factors. The findings show that creating a conceptual framework for SDCDW in Egypt, which includes these various elements, is necessary as the next research initiative.

Bridging the Gap between Perceived Pro-Environmental Benefits and Pro-Environmental Behavior: Mediating Roles of Green Work Climate and Pro-Environmental Training

Recent initiatives from the government, nongovernmental organizations, and professional bodies in the Nigerian construction industry to encourage pro-environmental behaviors (PEBs) have created awareness on the benefits of engaging in PEB. However, PEB on construction sites in Nigeria remains low. This study explored the effect of perceived pro-environmental benefits (PPEBs) on PEB among construction site managers in Nigeria, and the mechanism through which PPEBs can lead to PEB through pro-environmental training (PET) and green work climate (GWC). A total of 257 usable responses were obtained from a survey of construction project managers and evaluated using the structural equation modeling method. The results obtained indicate that PPEBs had no significant effect on PEB, whereas PET and GWC fully mediated the relationship between PPEBs and PEB. This study’s findings fill existing gaps in the literature and provide academicians, policymakers, and construction industry practitioners with in-depth knowledge of other variables such as PET and GWC, through which PPEBs can translate into PEB on construction project sites.

A Bayesian network for selecting improvement management tools to increase customer satisfaction in the construction industry: case study of Mexico

PurposeThe use of improvement tools in the construction sector has shown to be an important determinant of quality. Companies endeavoring to enhance their daily practices require assistance, evidence, standards, frameworks and quantitative models from existing experts to help them set out for the road. This paper is aimed to assist construction managers in the selection of tools to increase customer satisfaction.Design/methodology/approachThis piece of research is based on the results of a previous empirical study on the use, within a sample of Mexican firms, of a set of more than 30 tools. It then proposes a Bayesian network (BN) to select them. By analyzing the variables under study, it is possible to establish their interaction and dependencies. The resultant BN comprises 24 nodes, and it is useful for choosing some tools that help to increase customer satisfaction.FindingsCustomers and their needs now have become more complicated and harder to meet than in the past. Then, the use of improvement tools that put quality at the heart of the management strategies is crucial for achieving customer satisfaction. In order to reduce prices, keep product quality and meet delivery times, these tools should be used on a daily basis. Along this line of thought, the overall results from the hypothetical scenarios explored in this were positive, reflecting the relevance of the proposed model. In particular, the use of tools for gathering customer needs, the utilization of technology and the implementation of a quality department are relevant for increasing customer satisfaction in the sector.Research limitations/implicationsThe sample size could be further expanded. The customer satisfaction dimensions could be enhanced.Practical implicationsWhile the sample in which the investigation is based could be expanded along with the number of variables and their states, the BN can help practitioners in the global construction industry to improve their quality practices, to foster loyalty and to grow revenues.Originality/valueMost of the research reported in the area of continuous improvement in construction focuses on qualitative considerations, and it is still scarce in terms of developing mathematical models for selecting existing tools and, ultimately, satisfying customer’s requirements. This investigation is aimed to bridge this gap in the literature.

Stakeholders’ Perception of the Impacts of Supply Chain Management on Tanzania Construction Projects’ Performance

The current era that is characterised by growth in science and technology, free market beyond borders and globalization effects has compelled every construction industry globally to struggle to resolve the increasing and overwhelming challenges raised by increase in clients' demands and needs. The rise in demands and needs has led to a serious worldwide competition of which the construction industry and firms in particular from emerging economy countries can no longer escape from. In the domestic competitive atmosphere, construction competitors have attempted to identify the strategic competitive environment and potential adaptable market features targeting to lower unnecessary construction costs and time overrun, improving quality, safety, and environmental sustainability while attaining value for money. Thus, to tolerate within a global competition environment, supply chain management has been pointed to ease the construction projects’ performance. This study aimed at examining the impacts of supply chain management on construction projects’ performance. One hundred thirty-eight (138) respondents were randomly sampled from three cities in Tanzania. Primary data were collected using a structured questionnaire, and the data were analysed descriptively. An exploratory factor analysis was performed to validate the questionnaire. Afterwards, confirmatory factor analysis (CFA) was conducted, and structural equation modelling (SEM) technique was used to determine the validity of the study. The Statistical Package for Social Science (SPSS) was used to analyse the data. The findings provided pragmatic factors necessary for improving construction projects’ performance. Also, it was found that fourteen supply chain impacts had a positive significant contribution to improving the construction projects’ performance. Moreover, the findings showed direct and statistically significant influence of supply chain management on collaboration, integration, risk sharing and management as well as configuration. Thus, the findings suggested that supply chain management cannot be isolated from other potential factors when one needs to attain an adequate construction project’s improved performance. Both social and practical implications of the study are recommended to construction industry practitioners and policymakers in Tanzania to understand the impact of supply chain management on construction projects’ performance to enhance performance improvement. Therefore, increased use of information technology (IT) in supply chain management is recommended to improve construction projects’ performance.