Causes of Failure of Small Contractors in Saudi Arabia

Assaf, Sadi; Srour, Omar; Hassanain, Mohammad A.

doi:10.1080/15623599.2013.10878226

Cited by 11 publications

(14 citation statements)

References 6 publications

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“…Poor Accounting System and Records;-was ranked ninth with the mean score of 3.33, conforming with the studies by Assaf, Srour & Hassanain (2013); Adjei et al (2018), who insist that; financial related issues such as high interest rates paid, poor financial accounting system and records, mismanagement of cash flow, poor debt collection are among the most hostile challenges, that cause the failure of SMSBCs in developing countries. Moreover, poor cost planning of both parties due to lack of proper budgeting, and hence resulting to poor quality of work, was also shared by the respondents.…”

supporting

confidence: 74%

Profit Maximization Strategies Employed by the Small and Medium Size Building Contractors in Dar-Es-Salaam, Tanzania

Kyssima

Tesha

Lello

et al. 2020

IJEMR

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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...

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supporting

confidence: 74%

Profit Maximization Strategies Employed by the Small and Medium Size Building Contractors in Dar-Es-Salaam, Tanzania

Kyssima

Tesha

Lello

et al. 2020

IJEMR

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“…The RII, as a recognized research methodology was adopted for assessing the importance level of each of the identified factors (Assaf et al , 2013, 2015; Hassanain et al , 2014, 2015; Sha’ar et al , 2017). Upon receiving and tabulating the assessment of the factors, the RII for each factor was computed with the aid of the following formula (Badu et al , 2013): where a i is the constant representing the weight assigned to i , and x i is a variable representing the frequency assigned to i .…”

Section: Assessment Of Factors Affecting the Maintenance Cost Of School Facilitiesmentioning

confidence: 99%

Assessment of factors affecting maintenance cost of public school facilities

Hassanain

AlZahrani

Abdallah

et al. 2019

IJBPA

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Purpose The purpose of this paper is to identify and assess the significance of various factors affecting maintenance costs of public school facilities. Design/methodology/approach Detailed literature review resulted in identifying 54 factors that were categorized under nine groups. This was followed by a questionnaire survey completed by 60 experienced professionals. The relative importance index was used to determine the in-group ranking, as well as the overall ranking of these factors. Findings The study established that the five most significant factors affecting the maintenance cost of public school facilities were “not providing operations and maintenance manuals to maintenance group” in the “construction phase” category, “ignoring maintainability studies in design” in the “design phase” category, “specification of low-quality materials” in the “design phase” category, “selection criteria of contractors” in the “regulations and contracting” category, and “lack of quality control during work execution” in the “construction phase” category. Originality/value The present research represents the first research covering the maintenance cost of public school facilities in Saudi Arabia. The study also presents the unique landscape of facility maintenance in the Saudi Arabian context. The outcome of this research has the potential to significantly cut down unnecessary costs rooted in expensive maintenance of public school facilities, enhancing the quality of these facilities. The findings also underscore the necessity of collaboration and coordination of the various key disciplines toward the realization of cost-effective school facilities.

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“…The authors opted to use a recognized research methodology adopted in several studies (Assaf et al , 2013, 2015; Hassanain et al , 2014a, b; Sha’ar et al , 2017). The identified 20 causes for DDDs have undergone 10 initial quality checks through the interviews, and then pilot-testing, before being assessed by the domain specialists.…”

Section: Assessment Of the Causes Of Dddsmentioning

confidence: 99%

Review and assessment of the causes of deficiencies in design documents for large construction projects

Assaf

Hassanain

Abdallah

2018

IJBPA

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Purpose Design documents’ deficiencies (DDDs) are a major issue that plagues the construction industry in many countries. The purpose of this paper is to investigate the major causes of DDDs in a fast expanding economy, where errors can translate to an adverse impact on the economy. This paper aims to identify and assess the causes of DDDs for large construction projects from the consultants’ perspective. Design/methodology/approach In total, 20 causes of DDDs were shortlisted through an extensive literature survey. In total, 37 consultants based in the Eastern Province of Saudi Arabia participated in the study. The respondents were requested to provide their opinion with respect to the relative importance of the identified causes. The result of their responses was then used to rank the causes. Findings Based on their significance indices, the most significant causes of DDDs were “assigning design tasks to designers who lack work experience,” “team members’ communication skills,” “the level and quality of the design professional’s education,” “cross-disciplinary coordination,” “effective design team,” and “lack of knowledge transfer mechanism.” Practical implications Recommendations were provided to mitigate the issues of DDDs. It is envisioned that through a better understanding of the major causes of DDDs, design firms will be better positioned to recognize DDDs’ causes and establish appropriate measures for reducing their occurrence. The findings of this paper are beneficial to all project stakeholders, including design firms, clients, contractors, and end users. Originality/value This paper contributes to the literature by providing an assessment of the various causes of DDDs in the context of a rapidly expanding economy, where any inefficiency can lead to massive losses to the economy.

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Causes of Failure of Small Contractors in Saudi Arabia

Cited by 11 publications

References 6 publications

Profit Maximization Strategies Employed by the Small and Medium Size Building Contractors in Dar-Es-Salaam, Tanzania

Profit Maximization Strategies Employed by the Small and Medium Size Building Contractors in Dar-Es-Salaam, Tanzania

Assessment of factors affecting maintenance cost of public school facilities

Review and assessment of the causes of deficiencies in design documents for large construction projects

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