Browsing by Author "Windapo, Abimbola"

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    Assessing the effectiveness of risk management practices used by contractors in South African construction
    (2021) Chiswanda, Farai; Windapo, Abimbola
    This research examines the risk management practices prevalent in the South African construction industry. This was necessitated by the dearth in effective risk management in the construction industry particularly in developing countries such as South Africa. A comprehensive literature review was conducted to establish the risk management practices in use. Based on the literature, a questionnaire was developed and administered electronically to contractors operating in South Africa. The study established that contractors face a significant number of risks, chief among them, high competition in bids, political instability, payment delays, corruption and bribery and an overbearing influence of bureaucratic processes from government aligned agencies. Furthermore, it was also established that risk management amongst South African contractors is largely informal due to a mediocre appreciation of risk management. It also emerged that risk management implementation is perceived to be an expensive venture that erodes the marginal profits contractors aim to make. Resultantly, risk management practices implementation is low amongst the contractors. Based on the findings, the study concludes that the South African construction industry suffers from ineffective risk management implementation. To improve the implementation of risk management practices amongst contractors, it is recommended that contractors increase their risk management awareness through risk management training and risk knowledge management. Overall, this will be beneficial for their operations as risk management has been found to yield a positive effect on the meeting of project objectives. Furthermore, private and public sector clients are also encouraged to demand evidence of risk management competency from contractors upon engaging them for work.
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    Building Services study guide
    (2013) Windapo, Abimbola; Windapo, Bayonle
    The Building Services Study Guide presents and illustrates the installation and construction of different types of building service components such as plumbing, drainage, electrical, heating, air-conditioning, ventillation and fire prevention systems used in residential and simple buildings. The resource material presents a guide to the installation of drainages, cold and hot water distribution systems, electical wiring and components, heating, ventillating and air-conditioning (HVAC) systems, and fire prevention systems in residential and simple buildings. It introduces the reader to factors that affect the choice of the various building service systems in use, the characteristics of the materials used, and the regulatory requirements that guide the installation of the identified building services systems.
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    Causes and effects of delays in road construction projects in South Africa
    (2022) Vahed, Faheem; Windapo, Abimbola
    Delays in road construction projects in South Africa are a common phenomenon. This study aimed at identifying the causes and effects of such delays that are pertinent to South African conditions. The study used a deductive quantitative research approach that used a structured questionnaire developed through a comprehensive literature review on the subject under study and through a pilot evaluation by experts. The structured questionnaire was sent to clients, consultants, contractors, and other external stakeholders involved in SANRAL projects. A total of 64 responses to the questionnaire was received. The data received was analysed using the Relative Importance Index (RII), Kruskal-Wallis Test and Chi-square test. The Cronbach's Alpha was used to measure reliability with the lowest alpha value of 0.827 indicating a high degree of reliability. The RII indicated the top five overall causes of delays in South Africa road construction are: unrest by local communities, stoppages of work by construction mafia/ neighbouring communities/ wards, delays due to regulatory approval processes, poor engagement with local community, and lack of acceptance of project by community. The top five effects of delays that emerged from the survey are: time overruns, cost overruns, disputes and claims between contract parties, stress, and negative social impact/ bad reputation. The study further found that the top five delay minimising measures included: early engagement with the community, improved communication with community, improved management of subcontractors, effective strategic planning by contractor, and timeous payments to contractor and consultant. The Kruskal-Wallis Test revealed that there was no statistically significant difference in the views of all project stakeholders on the five main causes of road construction project delays. There was no statistically significant difference in the views of all project stakeholders on the major effects of road construction project delays. The results of the Kruskal-Wallis test revealed that there is a statistically significant difference in the views of all project stakeholders on the delay minimising measures. The study concludes that project delays occur on road construction projects in South Africa with the major contributor being external-related causes. The study proposed the following recommendations: early involvement of the community in the project through the establishment of community liaison meetings and the establishment of a Public Liaison Committee (PLC), improved management and supervision by the contractor on site, improvement of decision making and approval by client, timeous payment to consultant and contractors by the client, and the contractor should employ improved strategic planning techniques.
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    Concomitant Impediments to the Social Acceptance of Sandbag Technology for Sustainable and Affordable Housing Delivery: The Case of South Africa
    (2022-06-20) Adetooto, Johnson; Windapo, Abimbola
    There is a high level of homelessness in South Africa. Sandbag building technologies (SBTs) have been offered as economical and sustainable alternative building materials capable of speeding housing provision in South Africa. However, their degree of adoption in South Africa remains relatively low. Furthermore, limited research has examined the low adoption and social acceptance of SBTs, requiring thorough research. Therefore, this research investigates the key social barriers to accepting SBTs in housing provision. The study adopted a mixed method research approach that employs a comprehensive literature review in identifying 18 social barriers to using SBTs and a questionnaire survey of 228 building experts based in South Africa to obtain empirical data. The study findings indicated that the significant impediments were related to the lack of understanding of the benefits of sandbags, a lack of sandbag courses and training, and a lack of professional knowledge and skills, among others. A comparative analysis of the perceptions of the diverse categories of survey participants was conducted and discussed. This study’s evaluation of significant barriers offers government agencies and construction partners a framework to make realistic and well-informed decisions toward more sustainable and affordable housing delivery.
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    Construction Technology I: part A & B
    (2012) Windapo, Abimbola
    The resource material presents an overview of the structure of the construction industry, classification of the building as a system incorporating different parts, preliminary steps to procuring a building project, an overview of regulations used in the construction industry, and initial stages of building construction and site operations. The document is a useful material for teaching and learning the techniques of construction. It enables the teacher to access activities in words and figures essential to the transfer of construction techniques. The pictures and figures presented will also make it easier for a student of construction to understand and apply these techniques.
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    Determination of factors impacting the performance of the CBNRM programme in Botswana
    (2018) Motsisi, Lorato; Windapo, Abimbola
    This research study seeks to determine which factors contribute to the performance of Community Based Natural Resource Management (CBNRM) programme in Botswana. The Botswana Government initiated the CBNRM programme as a means of encouraging sustainable use of natural resources and eradicating poverty. Previous researchers have found that CBNRM projects are not performing at a level that they should be. Therefore this study sought to understand why that was the case. Literature review was carried out to determine what these factors were. The study focused on the performance of CBNRM programme at National level. It investigates the key factors perceived by the three key stakeholders (DWNP, DFRR, and BTB) involved in the programme at National level. A qualitative research approach was followed, in which interviews of seven representatives of key stakeholder organizations (primary data) and CBNRM documents (secondary data) were used as a means of obtaining the required information. Data was analyzed using thematic analysis to identify any emergent themes or patterns developing from the selected participants and the Analytical Hierarchy Process (AHP) to establish which CBNRM Programme Performance Criteria influence the performance of CBNRM projects in Botswana. The findings from the AHP Criteria Expert questionnaire found that CBNRM stakeholder factors were rated higher than other factors influencing CBNRM programme performance in Botswana. The majority of the respondents said the programme was performing fairly, although there areas which were thought to be lacking, such as the absence of a CBNRM ACT of Parliament, poor coordination and monitoring and a lack of benefits realization by communities. Furthermore, the study found that there was not much of big difference between the literature that was reviewed and the views of the respondents. The study however did not examine CBNRM programmes at District level (individual projects). It focused mainly on the factors influencing programme performance at National level.
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    Determination of the key operational variables of construction companies that impact on their corporate performance
    (2014) Tucker, George Cyril Dauda; Windapo, Abimbola; Cattell, Keith
    Small building contractors in South Africa often struggle to produce quality work on time and have a high rate of business failure. In an effort to improve the effectiveness and viability of smaller construction firms in South Africa, this research investigates key operational variables affecting their corporate financial performance. Operational variables relevant to financial performance were identified through a literature review. A questionnaire was then designed to assess the extent to which these variables are perceived to influence the financial performance of construction companies. The study participants were technical and management staff at small and medium-sized building and civil engineering construction companies categorized from grades 2 to 6 on the South African Construction Industry Development Board (cidb) registers, in four provinces of South Africa. Sixty-two valid responses were received. Based on how the respondents rated the variables in the study, it appears that contractors generally perceive four factors as having the greatest impact on corporate performance: technical ability (the possession and effective use of plant and equipment), financial management skills (in order to accumulate financial capital), training of staff in organizational knowledge in skills transfer and networking with industry stakeholders. Contractors across the five cidb grades did not differ significantly in their ratings of the importance of the operational variables and their indicators. The study also found that the perceived importance of three key operational variables (technical ability, financial capacity and networking) was positively related to the actual financial performance of companies, as measured by turnover, net assets and profit margin. The study concludes that construction companies need to prioritize the development of these key factors to improve their corporate performance. The findings will be of significance to contractors, industry practitioners, project managers and members of the research community in understanding the key operational variables that are crucial to construction firms’ success and effective project delivery.
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    Evaluating delays in execution of public sector construction projects : a study of roads and highways in Ghana
    (2016) Narh, Natasha Afi; Shaw, Corrinne; Windapo, Abimbola
    This study investigates delays in execution of public sector construction projects in Ghana. A review of literature revealed that previous studies on construction projects focused on cost, time overruns, as well as the causes of delays. It is against this background that this study assesses the causes and effects of construction project delays and means of averting such delays. The research design used in obtaining empirical data from a sample of 290 respondents was a survey research design. Questionnaires were used as instruments for data collection, and a Statistical Package for Social Sciences (SPSS) used for the data analysis. The statistical tools employed in the study include frequencies, percentages, Relative Importance Index (RII), Spearman correlation analysis and Chi-Square Test. The findings of the study revealed that some critical contributors to road construction project delay in Ghana during the project execution phase are clients' low cash flow to complete the project, contractors' financial constraints on the project, and improper planning of the project life cycle especially during the bidding phase. Site restriction, weather effects and changes in governmental regulations were found to be the least contributors to projects delays. These delays have a negative impact on project performance, project duration and force project participants to modify and adjust their finances. Investigating the way forward, the study explored strategies that are for averting the delays in executing construction projects. The study found that respondents were undecided in their rating on adequacy of training for project staff on specific requirements of construction projects. Other factors such as adequate of knowledge of contractors on project task, effective mobilization and release of resources, early engagement of project managers as well as adequate and effective supervision of construction activities were each identified as strategies that are applicable and feasible in averting the delays in executing road construction project activities.
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    Evaluating the optimal innovative cost control techniques used in the South African construction industry
    (2020) Duku, Leju; Windapo, Abimbola
    The execution of construction projects commands a myriad of technological, human, organisational and natural resources. However, the construction and engineering undertaking of these projects are frequently overshadowed by economic difficulties, such as the high costs of construction materials, that have a negative impact on project costs. Cost overruns have been determined as a phenomenon continually plaguing the construction industry in both private and public sectors, and very few projects are completed within cost parameters. This research evaluated the barriers to the use of innovative cost control techniques during the construction phase, and determined the level of cost overruns on construction projects in South Africa; identified innovative cost control techniques used by construction firms on construction projects; established the optimal innovative cost control technique used in the South African construction industry; and uncovered the relationship between the level of use of innovative cost control techniques on construction projects and cost overrun. Questionnaires were the chosen instrument for data collection and were circulated via Survey Monkey. A total of 123 questionnaires were returned, and they provided the base for the computation of study results. Statistical tools employed in the study included percentages, mean item score (MIS), and frequency distributions. A scatter plot was used to distinguish whether there was a correlation between the cost performance of projects and level of innovativeness by establishing a line of best fit through the set of the two variables. A line of best fit in the positive direction indicates that increased levels of innovativeness improves the cost performance of projects, while a line of best fit in the negative direction indicates that increased levels of innovativeness does not enhance project performance. The relationship between the level of innovative cost control techniques usage in construction projects and cost overrun was determined to be negative. This led to the conclusion that construction professionals are limiting themselves and are not exploring alternative or innovative cost control techniques. They were focused on project efficiency and productivity rather than cost overruns. Innovative cost control techniques identified in the study were Earned Value Analysis (EVA), Last Planner System (LPS), 4D Scheduling, Fuzzy Project Scheduling, Integrated critical path and Line of Balance, and Reserve Analysis. Study findings determined that the critical contributors to cost overruns included tight project budgets, project complexity, a high frequency of change orders by clients and financial difficulties encountered by contractors. Perceived barriers to the implementation of innovative cost control techniques in projects by participants included a poor scope definition, a lack of training and technical skill of project personnel, poor understanding of cost analysis and variables involved in cost planning. It also emerged that projects cannot meet project objectives, and construction organisations are not making use of the right tools and techniques to monitor and control construction costs. The research findings have shown that professionals have limited knowledge of innovative cost control techniques. This also concludes that they are not taking advantage of the features of new innovative techniques to tackle complex projects. This, therefore, means that complex projects will continue to experience cost overruns. This study concludes that top management of construction organisations are not training their staff to embrace new technologies and innovation. To address the barriers to the use of innovative techniques, there should be increased investment on the part of construction organisations toward affording their workforce the relevant training, knowledge and technical skill required to implement the modern techniques for cost control identified in the report. The cidb should organise seminars and workshops on the usefulness and importance of innovative cost control techniques, and workers should embrace self-development and change. Government should implement policies on the use of innovative cost control techniques for their projects, and construction organisations should develop capacity in line with innovative cost control techniques.
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    Evaluation of the challenges to project delivery confronting project leaders in the dynamic human settlement environment
    (University of Cape Town, 2020) Companie, Fabio; Windapo, Abimbola
    Governments around the world are battling and continually trying to address the housing backlog, which stems from previous discriminatory regimes and increasing urbanization. The housing backlog in South Africa has increased significantly and most especially in Cape Town. Housing is seen as a measure to transform and unify the aforementioned segregated population. Project Leaders (PLs) are saddled with the responsibility of housing delivery and managing diverse stakeholders. Although project management is the driving force behind the provision of housing delivery, the project process is not free from dynamics. These housing projects constantly attract social and political attention, resulting in the PL repetitively contending with the inherited social and political dynamics of the Human Settlement Environment (HSE). This dynamism creates a complexity that poses numerous challenges that hinder the PL's ability to lead, manage and transform housing projects. This research examines the challenges faced by PLs in the HSE, and whether PLs exercise a capacity to creatively transform, maintain, and lead the project organization. A qualitative research approach with inductive-philosophical reasoning was chosen for the study. The research employed interviews for data collection. A sample of 19 PLs working in the public sector of human settlements in Cape Town was purposefully selected to participate in the study. The collected data was analysed using thematic analysis to identify appropriate themes. The research defined dynamic HSE as a new variable through the literature conducted and contributing to the body of knowledge. The results further identified six themes emerging from the challenges faced by PLs. They are: 1) Social challenges; 2) Political challenges; 3) Organizational challenges; 4) Legislative challenges; 5) Multi-stakeholder challenges; and 6) Skills challenges. Following on from these themes, two key issues showed that social and political influence were the dominant factors affecting the implementation of housing projects. The research found that PLs do not have the authority in housing delivery. This limits the PL's ability to creatively transform, maintain and lead the project organization.
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    Evaluation of the Factors Causing Cost and Time Overrun in the Namibian Construction Industry
    (2022) Negussie, Menelik Gizaw; Windapo, Abimbola
    Cost and time are one of the two primary parameters that require due considerations throughout the project lifecycle and are the determining factors for project success. However, it is very common that many projects fail to achieve their goal of being completed within the planned budget and schedule. Several articles on cost and time overrun in the construction industry worldwide, holistically, and locally, were reviewed. However, limited studies were conducted in the Namibian construction industry. It is against this background that this study investigates the factors causing time and cost overrun in the Namibian construction industry and posits strategies to mitigate cost and time overrun on construction projects. The study adopted a quantitative research approach that employs a survey research design in data collection from a sample drawn from a population of professionals in the Namibian construction industry. The survey instrument — a questionnaire — was administered via email. The data collected was analysed using descriptive and inferential statistics comprising of means, percentages, Relative Importance Index (RII) and Spearman Correlation. The study found that five of the main factors contributing to cost overrun on the construction projects in Namibia from a ranking perspective are contractors' financial constraints, inadequate contractor experience, inefficient project planning and scheduling by the contractor, poor site management and delay in progress payment by the client. While the main causes of time overrun were found to consist of inadequate contractor experience, contractor's cashflow difficulty, poor site management and supervision, slow decision making by the client, and deficiency in project planning and scheduling by the contractor. Furthermore, this study revealed that four out of the five factors causing cost and time overrun are related to contractors, while one was client related. The study also found that key strategies proposed to mitigate cost overrun on projects from a ranking perspective include ensuring that consultants submit their drawings and documentations on time, frequent coordination between all the project parties and adequate project planning and scheduling. The key strategies proposed to mitigate time overrun, based on a ranking perspective, are proper planning of the work, adequate and close supervision of the project, and the consultant ensuring that drawings and documentations are submitted on time. Spearman correlation was carried out in order to measure the correlation between top ten rated cost and time overrun factors and construction performance. The result showed that there is positive correlation between cost and time overrun factors against construction performance however it was not statistically significant and this may be due to the small sample size . However, two of the top 10-time overrun factors — which include availability of finance of contractors, deficiency in project planning and scheduling, experience in project planning, late delivery of construction material and equipment, and extension of time claim cost overrun factors — showed a moderate and positive impact on construction performance. Further investigation of the hypothesis may be required. Based on these findings, the study concludes that projects on which an inexperienced contractor is engaged, and for which poor payment regimes exist, will experience time and cost overruns. The study recommends that activities undertaken at the execution stage should be properly monitored to prevent time and cost overruns on the project as a whole.
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    Extending knowledge management beyond organisational borders – barriers for South African construction organisations
    (2020) Osborne, Jeremy; Windapo, Abimbola
    Previous research raised the question of why South African organisations do not extend their Knowledge Management (KM) practices beyond their organisational borders. Therefore, there is a need to examine the barriers faced by construction organisations when trying to extend KM activities beyond organisational borders towards encouraging the South African construction sector to improve upon its collective KM maturity. This research utilised a quantitative approach which initially examined the available literature on the topic of Knowledge Management and the barriers found inhibiting its implementation. From this knowledge a survey instrument was developed and circulated to 499 construction professionals based in South Africa to elicit their opinions on Knowledge Management, extending KM activities beyond organisational boundaries and the barriers potentially inhibiting these activities. A total of 93 usable data sets were received and subjected to statistical analysis. This research found that there was a clear positive opinion towards KM and to extending these activities beyond organisational borders. The perception that by extending KM activities beyond organisational borders may negatively impact the organisations competitiveness is still prevalent and is a barrier to extending KM activities beyond organisational borders. Further it was found that the lack of time allocated to KM activities was an inhibitor to KM activities bother internally and from extending these KM activities beyond organisational borders. However, the amount of training given on KM and support of management was only found to be of significant concern in the less mature organisations and therefore may inhibit KM activities but were not a clear inhibitor to extending these activities beyond organisational borders. Continuity in the makeup of project teams was identified as a potential route to improve project performance and the current contracts utilised in the sector did not appear to currently impact knowledge sharing. Encouragingly it was found that knowledge was not withheld by employees to improve job security and further the challenges faced by multiple languages being spoken in the project environment and in coordinating TMO's did not register as significant inhibitors to knowledge sharing. This research's findings show that professionals in the South African construction sector have a positive opinion towards KM and extending these activities beyond organisational borders. Barriers do exist in the sector that are inhibiting knowledge managements implementation and growth, however by highlighting these issues it is possible for organisations to overcome the challenges faced, grow their knowledge management maturity and extract the most out of the strategies implemented. Based on these findings, the study recommended that there is a need to establish partnerships and longstanding relationships which foster knowledge transfer to overcome the negative perception that extending knowledge management activities beyond organisational borders may negatively impact competitiveness. This research was limited by the response rate to the survey circulated being low with only 93 valid data sets in the sample for statistical analysis. Further most respondents to the survey were from small and micro organisations who had low KM maturities and therefore the results for this research cannot claim to represent the construction sector of South Africa as a whole.
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    Investigating factors influencing sustainable development, performance, and delivery processes of green construction projects in south africa
    (2023) Singata, Palesa; Windapo, Abimbola
    The construction industry has taken a step towards the implementation of green buildings to reduce the negative environmental impact of buildings and to achieve sustainable development. Green building certification is gaining traction globally and in South Africa. It has become a requirement for some private and government-owned buildings. Even though green certification is still voluntary, it is desired that more buildings obtain the green certification to measure environmental sustainability performance during the different phases of the building's lifecycle. However, there is limited research on the factors that influence the quest for the development of sustainable buildings in South Africa. Therefore, this research evaluates critical factors influencing sustainable development, performance, and delivery processes of green construction projects in South Africa. A comprehensive literature review was conducted to identify the factors influencing the development of green construction projects. Thereafter, a questionnaire survey was developed based on these factors. The targeted population for this study were Green Star accredited professionals who are registered with the Green Building Council of South Africa (GBCSA). This study employed cluster random sampling to divide the entire population into geographical regions that contribute to green infrastructure development. The questionnaire was administered online to 97 Green Star accredited professionals who reside within the Gauteng and Western Cape provinces. The data collected were analysed by means of descriptive and inferential statistics. The study revealed that the top ten factors influencing sustainable development, performance, and delivery processes of green construction projects in South Africa are: energy efficiency; water conservation; health and safety in the workplace; enforcement of green building codes and regulations; expressed interest from clients; effective stormwater management; an effective waste management plan for waste diverted to landfills; effective communication and engagement among project stakeholders; professional knowledge and experience in green buildings; and benefits of green buildings techniques. It also emerged that there is a significant relationship between these factors, sustainable development, and the sustainability performance of green construction projects. Based on these findings, the study concludes that clients and project stakeholders with knowledge of the factors influencing the development of green buildings are likely to develop green and sustainable projects. KEY WORDS: Green building, green construction, Green Star, project delivery process, sustainable development, sustainable construction, sustainability performance
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    Investigating The Effect of Project Management Maturity on Project Success
    (2023) Mwanza, Paul; Windapo, Abimbola
    This study set out to look at the effects that project management maturity has on the project management success in the hope that knowledge of the effects that project management maturity has on ZESCO a Zambian Company project success will highlight the capability deficiency areas that the corporation has and in turn enable recommendation for improvement. The study was exploratory in nature, it took a positivistic paradigm with a deductive approach and a quantitative research design. A case study strategy was used to help in answering the question of maturity effect on project success. The study discovered that the corporation did not perform well on both cost performance and schedule performance whereas it performed well on quality and customer/stakeholder satisfaction. Using the Project Management Maturity Model (ProMMM) competence areas of Experience, Culture, Application and Process as a measure of maturity on a scale of 1-4, the study establishes that ZESCO performed poorly on project application and experience a sign of staff lacking skills and experience to drive effective Projects; the organization performed well on both culture and processes a sign of belief in project management. The Corporation was benchmarked to be at level 2.6 an Improving Novice who still is experimenting with Project Management. The study also established that there was no correlation between ZESCO project management maturity level and project management success, a correlation was found between project management maturity with project quality and Customer Satisfaction. It is recommended that a further study be conducted to ascertain if there are other competence areas that affect maturity other than the ProMMM four attributes and also to conduct a detailed research as to why personnel seem not to appreciate use of project tools.
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    Investigating the impact of the education level of construction owners on business performance
    (2022) Makalichi, Silas; Windapo, Abimbola
    The study investigates the impact of the level of education of owners on the performance of the business in the construction industry. Construction companies are key to economic development in South Africa, playing an economic role in the nation's GDP and solving economic problems like unemployment and equitable distribution of wealth, among other things. The construction industry is one of the industries with very high employment potential in South Africa; therefore, the success of the small businesses in the industry is key to the nation's success. Previous research in the field of business identified several parameters that affect business performance and among these is the human capital of the business (education level of managers and owners). However, limited studies have examined the level of education of business owners and how this impacts the performance of the construction business. So, this study aims to find the common level of education of business owners, the typical performance of the businesses and whether the level of education impacts the performance. The following objectives were used to achieve this; to find out the level of education of business owners in the construction industry; to establish the typical level of performance of construction businesses; to determine the perception of business owners on the impact of education on construction company performance and; to find out whether the level of education of business owners' impacts construction company performance. A quantitative research design approach was adopted using a questionnaire survey, administered using email, to obtain information from a sample population of 40 contractors that were being managed by Navi Professional consulting on Sanitation projects in the Mpumalanga Province of South Africa. The data collected were analysed using descriptive statistics that include cross-tabulations and histograms of the education parameters. A Chi-square statistical analysis was conducted to test the hypothesis but established that the level of education of construction owners does not significantly impact business performance. Based on the findings, the study concludes that the level of education of the business owner is not a significant factor that impacts the performance of construction businesses. It is therefore recommended that in order to avert failure, construction business owners should learn from their experience and continuos on-the-job training. Further research that examines the impact of the level of education of construction owners on business performance using a larger sample size is also recommended.
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    Level of Financial Performance of Selected Construction Companies in South Africa
    (2021-10-27) Omopariola, Emmanuel Dele; Windapo, Abimbola; Edwards, David John; El-Gohary, Hatem
    Purpose—There is no consensus on the indicators that assess a construction company’s financial performance projects undertaken. There is also a dearth of concepts on the financial performance indicators for construction companies in South Africa and indeed, the wider continent of Africa. This paper proposes novel financial performance indicators for assessing construction organizations and tests these on selected construction companies in the South African construction industry. Design/methodology/approach—This research employed a pragmatic approach. Contractors with financial credibility and capacity of ≥R 40 million, annual turnover of ≥R 20 million, and available capital of ≥R 40 million were purposively selected for this study. Parameters such as total revenue, direct cost of work, total indirect cost and total income were elicited from the sample contractors to assess their financial performance. The assessment was undertaken using formulas that were formulated based on the descriptions provided under the research methodology. Further analysis was conducted using post hoc Tukey’s honest significant difference (HSD). Findings—The study finds that construction companies with a strong structure, multiple areas of specialization, creative and efficient staff members, and access to funding, have a greater chance of experiencing higher: income; positive leverage; positive liquidity; and positive cash flow. Moreover, companies with specialization in civil engineering construction and project management skills experienced higher positive liquidity and profitability. Originality/value—This research is unique through its investigation and formulation of indicators for assessing the financial performance of construction companies. This research is consequently representing the first attempt to analyze financial data using the approaches prescribed and adopted.
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    Modeling performance differentials in large construction organisations in South Africa
    (2014) Oyewobi, Lugman Oyekunle; Windapo, Abimbola; Rotimi, James Olabode Bamidele
    The research investigates the relationship between the constructs: organisational characteristics, resources, capabilities, competitive strategies, business environment and performance of large construction organisations in South Africa. It examines whether the synthesis of different theoretical views - industrial organisation, contingency approach, resource-based view and dynamic capabilities theory situated in the strategic management paradigm can be used in explaining the differentials in construction company performance. The rationale for the study stems from the dearth of literature within construction management and in the context of South Africa on the factors causing differentials in the performance of construction companies.
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    Modelling targeted procurement strategies and relationship quality criteria influencing the development of small contractors in South Africa
    (2018) Adediran, Abdulrauf; Windapo, Abimbola
    Targeted Procurement strategies are widely used in government contracts to achieve contractor performance and development objectives in the South African construction industry. However, there have been reports of poor performance and high attrition rate of contractors in contractor development programmes. There is little or no objective empirical evidence informing the implementation of SMC-friendly policies in South Africa. The study fundamentally set out to empirically validate the pre-existing assumption that targeting small and medium-sized contractors, and increasing their participation in government contracts stimulates their growth performance and development. The research further examines whether the quality of relationships in the project supply chain mediates the relationship between targeted procurement strategies used and contractor development. An embedded mixed methods research approach was adopted, that primarily employed quantitative (survey) means of data collection, and supported by secondary qualitative data (focus group interview) which was conducted concurrently. A sample size of 307 contractors registered on Grades 3 to 6 of the Construction Industry Development Board (cidb) Register of Contractors that have executed targeted procurement projects and been part of a cidb-registered contractor development programme within a five-year period (2011 – 2015) constituted the focus of the research. Data collected was subjected to both descriptive and inferential statistical analyses. The empirical model developed was validated using partial least squares structural equation modelling (PLS-SEM) technique. Findings from the study reveal that Targeted Procurement strategies influences the quality of relationships in the project supply chain, and is a statistically significant predictor of the growth performance and development of targeted contractors. Moreover, relationship quality emerged to be an important mediator of the relationship between Targeted Procurement strategies and contractor development. These findings demonstrate that Targeted Procurement has the potential to achieve its intended results of improving the performance and development of historically disadvantaged contractors where the quality of relationships in the project supply chain has significant elements of trust, communication, collaboration, joint problem-solving and risk allocation. The study contributes to the existing body of knowledge recognizing the importance of social and relational dimensions of inter-firm relationships within the context of project management and particularly relating to public-sector procurement and small contractor development. The findings imply that the government as a key construction sector client should continue to invest in Targeted Procurement or affirmative action policies that benefit historically disadvantaged SME contractors. The recommendations made calls for the establishment of a framework on Targeted Procurement for ease of application by the government and accountability. This also implies further research into more measurable criteria for the proposed Targeted Procurement framework. The policy implication of the findings from this study is the need for policymakers, state entities, and public-sector client departments to recognise their role in shaping construction supply chains. They should encourage the design and implementation of strategies and policies that enable adequate relationship management to be entrenched in the supply chain, and consider including relationship management as a relevant criterion for participating in public contracts.
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    Political risk management on international construction projects
    (2016) Muchenga, Isaac; Windapo, Abimbola
    This research examines the micro -political risks affecting international construction projects in Namibia and whether these risks are effectively managed. A case study research design was used for the study and the findings were that key threat risks identified in this context were repudiation, contract problems, labour unrest, hostile press, delay in permit approvals while local ownership requirements and expatriate labour restrictions are both threat and opportunity risks . It further emerged that qualitative (heuristic) techniques were commonly used in an ad hoc fashion for risk assessment and that the risk management strategy of cooperation was the most preferred. In addition, evidence suggest s that the execution phase is most prone to micro political risk. A significant number of the micro -political risks identified arise from the host government, while the balance arise from the host society. These findings are likely to apply to other international construction projects in Namibia and have serious implication s for the role of government in the success or failure of infrastructural projects which are badly needed for national development. Therefore, the Namibian Government can positively contribute through introduction of regulations, laws or amendments to laws that enhance opportunities, minimise downside risk, and thereby reduce overall construction costs on international construction projects in the country. It is recommended that systematic risk management in which both qualitative and quantitative techniques are used for risk assessment, be adopted in dealing with micro political risks associated with international construction projects in Namibia. Additionally, tertiary institutions offering risk management training need to focus on qualitative methods to facilitate maximum benefit when these methods are applied by their graduates. The existence of both threat s and opportunities in the micro -political risk environment in international construction means contractors in international construction need to be on the lookout for downside risks as well as opportunities.
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    Open Access
    A risk-based entry decision model for South African construction companies venturing into African markets
    (2016) Odediran, Sunday Julius; Windapo, Abimbola
    This research examines the influence of international risks, and the level of resources of South African construction companies on entry decisions made to access cross‐border African construction markets. The study further investigates how the resources of South African construction companies and their decisions to enter into African construction markets, interact to mitigate the perceived impact of risks encountered in these markets. The study adopted a convergence of the mixed methods research approach where quantitative and qualitative data were collected concurrently from multiple sources. These data include a questionnaire survey distributed to construction companies registered on Grades 8 and 9 of the Construction Industry Development Board (cidb) Register of Contractors; interviews conducted with construction companies having international markets experience, as well as an assessment of annual and financial reports. Data obtained through the survey were analyzed using both descriptive and inferential statistics. The model developed was validated using a partial least squares structural equation modelling technique. Thematic content analysis was adopted in analysing the data obtained from the assessments of company documents and interviews. The study reveals that the level of revenue, the assets, and the number of employees of South African construction companies with cross-border experience, influence the perceived impact of political, social, procurement, design and construction related-risks in foreign markets. It also emerged that the decisions on entry modes were significantly influenced by the perceived impact of all classes of risk. The study established that significant positive interactions exist between assets and joint venture companies; joint venture projects and branch offices and companies; and that international experience are significantly related to strategic alliance as an entry mode. The positive interactions between resources and entry decisions made mitigate the perceived impact of risk in African construction markets. The study makes a significant contribution to the body of knowledge on international construction, by establishing an all-inclusive risk profile of the African construction market. Also, it establishes that the resources of multinational construction companies influences their perception of risks, and that the perceived impact of risks influences cross‐border entry decisions made to access foreign markets to mitigate the risks encountered. A risk-based entry decision model as a strategic tool, helps multinational construction companies to leverage their resources, as well as providing an adequate perception of risks when deciding on an appropriate strategic entry mode which will mitigate the risks encountered in crossborder markets.