When it comes to a firm's growth, profitability and profit maximization are sensitive matters that cannot be neglected, due to the fact that profit and profit maximization are the main aims for any building construction business. Thus, the study intended to explore the profit maximization opportunities available for small and medium size building contractors (SMSBCs) in Dar-Es-Salaam, Tanzania; by exploring the profit maximization strategies employed; examining the challenges faced by these contractors that affect realization of profit maximization; and proposing profit maximization measures, that can be employed by the SMSBCs in Dar-Es-Salaam, Tanzania. This designed survey study, employed the SMSBCs in Dar-Es-Salaam Tanzania, as a unit of analysis, which involved building contractors from Class IV, V, VI and VII, as study population and unit sample. Moreover, the descriptive design survey study involved probability sampling as a sampling technique. Literature review; open and closed ended questionnaires, were used in collecting primary and secondary qualitative and quantitative data. In collecting data, total of 94 questionnaires were distributed, whereby 78 (84.3%) were returned. Quantitative data were analyzed using Statistical Package for Social Sciences (SPSS), while qualitative data were analyzed thematically. Findings revealed charging for all amendments and change orders; dropping of low performers; minimization of waste on site; timely execution of works on site; proper tendering procedures; improving construction productivity; reliable chain of supplies; and requiring more site job experience, as the most important opportunities employed by SMSBCs. Furthermore, the critical challenges revealed were; non-payment of debts; taxes and license; lack of capital equipment; low share of work opportunities; delays caused by clients; as well as uncertainty and unexpected climate conditions. The study concluded that; most of the contractors use all the opportunities to maximize their profits in construction projects. Most of them have survived because, they continued maintaining professionalism when it comes to work despite having low share of work/ tender opportunities. Also, corruption is one of the critical factors that affects the industry, hence hindering the contractor's growth. With the new reform and government systems, this factor has reduced to some extent as compared to how businesses were operated before, but not completely eliminated. The overall satisfaction of the profits and growth of these SMSBCs has been reduced by government reforms and policies, despite the government effort to fight corruption. When it comes to taxes and license fees, most of the contractors are irritated with constant need to pay for cost/license of operations or the presence of both withholding tax and Skills Development Levy(SDL) imposed to them when conducting business. Lastly, the study recommended; introduction of proper taxation policies; centralization of government agencies responsible for collecting annual payment f...
Introduction Pre-contract cost planning is one of the key functions of quantity surveying services. Before the Second World War, quantity surveying was largely used as an accountancy function. Quantities were measured from the working drawings to provide a bill of quantities (BOQ), and after completion of the works on site the final account was agreed. No attempt was made to relate these costs or to consider any cost implications of design variables or comparisons with similar schemes (Ashworth, 1999; Ashworth, 2004). Ling and Ho (2013) purported that Quantity surveying firms are generally tasked with cost and contract management duties. To achieve sustained growth and competitiveness, Frei et al (2013) cited in Ling & Ho (2013), Oosthuizen & Berry (2013) identified people as an important critical success factor (CSF) for quantity surveying firms. The people in these firms need to have job knowledge, job experience and task proficiency to provide service in a timely, accurate and reliable manner. In Tanzania, the trend shows that, until recently, there were perceptions that preparation of BOQ was the main activity, while in actual fact BOQs account for 25% of the quantity surveyor's workload. This scenario was brought to attention and addressed in the paper by Mushumbusi (2010) during the 13 th CPD seminar in Dodoma, 19 March, 2010 that was organized by Architects & Quantity Surveyors Registration Board (AQRB). BOQ on the other hand is one of the key stages of cost planning process. It has also been revealed in a recent study by Ernest et al (2017) that, in developing countries, the adoption of effective cost planning practices is lacking to the extent that construction projects are often abandoned because of poor cost planning practices leading to cost overruns that are not sustainable. This study was carried out to evaluate the methods and systems adapted for cost planning practices in the Ghanaian construction industry. Such methods included; elemental cost planning, comparative cost planning, least-cost planning, functional cost planning, life cycle cost planning, unit method cost planning, cost-benefit analysis, superficial area method and cubic method. Pre-contract cost planning is one of the core engines of project cost management, which in turn forms part of project management body of knowledge. Ling & Ho (2013) advocate that adequate cost management ensures projects are completed within budget, which is one of the three big project outcomes (cost-time-quality). Generally, project management is the process of controlling project variables which are time, cost, quality, scope and risks (
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