Challenges Facing Small-sized Construction Firms in the Gaza Strip

Abstract

Background: The construction industry is the most active tool for societies development and one of the main pillars in the Palestinian economy. Objective: The aim of this study is to identify the main internal and external challenges that small-sized construction firms are wrestling in the Gaza Strip. In addition to that, to review briefly small-sized construction firms’ characteristics, stages of survival and growth and importance to the economy. Methods: At first, all the relevant literature was systematically reviewed. A survey was conducted through a questionnaire to collect the data from 68 contractors. A Likert scale data were analyzed to rank the success factors and the barriers using Relative Importance Index (RII). Results: The most affecting small-sized construction firms’ challenges are: start-up cost, foreign currency fluctuation, access to finance during the execution of work, continuous abruption and unstable prices of construction material, nomination and recruitment policies for the team, the lack of clarity of vision and the difficulty of developing a strategic plan far away, the complexities of dealing with suppliers, and the general economic situation. Conclusion: Based on the above challenges, small-sized construction firms should have a protection against unequal competition and a mitigation of financial loads. In addition to a group motivational measures to improve the opportunities for the small contractors to survive and grow.

Critical Factors Influencing Bid Mark-up Decision in Public Street Project – A Review

“…Abdullah (2020) highlights that contractors place significant emphasis on equipment and labour availability while making decisions regarding mark-up size within the economic situation category. According to Tayeh et al (2019b), one of the primary difficulties encountered by small contractors in the Gaza Strip is the preservation of personnel stability and the guarantee of a consistent provision of materials and equipment. These challenges arise as a result of security and political concerns.…”

Developing a Multi Project-Collaboration Based IPD Framework for Small & Medium Scale Enterprises in the Construction Industry

“…Based upon the research by Bassam Tayeh and Wesam Alaloul, financial challenge is the biggest challenge for the small scale constructions (Tayeh et al, 2019). Delayed payments are very common in small-scale construction projects, where the owner delays the payment to the contractor and the owner is not conscious that most of the small and medium scale construction companies/contractors struggle to survive and fail during the initial years of their establishment (Eke et al, 2015).…”

Health and Safety for Infrastructure Projects: PPE Adaptation and Barriers

“…For instance, as scale 1 = strongly disagree, scale 2 = disagree, scale 3 = neutral, scale 4 = agree and scale 5 = strongly agree. In this study, the experts were defined as stated on a study by (Gamil et al, 2017) which stated the attributes of construction experts to as a person who has been working in the industry for more than ten years, age of more than 30 years and has assigned to a managerial position within the construction industry firms [24]. According to the findings, all the experts who participated in this research hold all the attributes of expert definition.…”