Direct risk factors and cost performance of road projects in developing countries

Ogbu, Chukwuemeka Patrick; Adindu, Chinedu Chimdi

doi:10.1108/jedt-05-2019-0121

Cited by 18 publications

(19 citation statements)

References 44 publications

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“…In addition to competition issues, indigenous contractors have also proven to be inept at executing their contractual obligations; yet, they are constantly awarded the majority of road projects (Ogbu and Adindu, 2019). This begs the question of whether challenges currently faced by these indigenous contractors are ever taken into consideration.…”

Section: Introductionmentioning

confidence: 99%

Perception on challenges impacting bid decision of indigenous building contractors in Dar Es Salaam, Tanzania

Chileshe

Edwards

Kavishe

et al. 2020

JEDT

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Purpose The acknowledged mode of securing work by contractors is through the bidding process. However, the bidding decisions undertaken by some indigenous contractors in developing countries are fraught with challenges that often engender bidding practices (such as collusion through price fixing and intentional lower bidding) and threaten business survival. Therefore, in the quest to better understand these challenges and viable advocate solutions for overcoming them, this paper aims to identify the key challenges impacting the bid decision process by small indigenous building contractors in Dar es Salaam, Tanzania, and establish the strength of their relationship between the pairs of key challenges. Design/methodology/approach A comprehensive literature review was conducted to identify nine challenges impacting the bid decision of indigenous building contractors in Tanzania, which were used to design a questionnaire survey. Data collected were analysed using descriptive statistics, mean score, inferential statistics (One sample t-tests), Kendall’s concordance and correlation analysis. Findings Challenges identified from a literature review were empirically tested using survey responses accrued from 33 participating small indigenous building contractors in Dar es Salaam, Tanzania. The findings illustrate that lack of liquidity, profit returns, lack of equipment, lack of experience of several works and procurement procedures are perceived as being the five most critical challenges. Project location, site accessibility and lack of labour were least critical. The major finding from the correlation analysis was the existence of the strong and positive correlation between “project location” and “site accessibility”. Research limitations/implications The study is limited by its sample and geographical settings which focussed and confined the results on one country, Tanzania. However, the findings can be considered as important for other developing countries wishing to gain insights into the challenges impacting bid decisions. Practical implications Measures for addressing the identified challenges impacting the bidding decisions of the indigenous small building contractors would be undertaken. The findings will enable contractors to not only reconcile the challenges with the industry and in so doing benefit both themselves and the clients but also enable them to be better prepared to deliver contractual obligations and generate socio-economic wealth. Government and policymakers will also be able to appropriately develop macro interventions for managing these challenges, which could be custom-tailored to indigenous small contractors. Finally, improving the ability of local firms to compete in the construction industry has been recognised as having the potential of advancing socio-economic development within the comity of developing countries. Originality/value The study enhances government, client and practitioners’ understanding of the challenges affecting the bidding practices among the indigenous building contractors in Tanzania. This area of investigation has previously been under explored particularly sub-Saharan Africa.

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Section: Introductionmentioning

confidence: 99%

Perception on challenges impacting bid decision of indigenous building contractors in Dar Es Salaam, Tanzania

Chileshe

Edwards

Kavishe

et al. 2020

JEDT

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“…Road construction involves the movement and relocation of large quantities of materials (Choudhari & Tindwani 2017). RC projects are considered high-risk projects because of their probable cost overruns (Ogbu & Adindu 2019), which occur mainly because of material wastage (Wijekoon & Aththanayaka 2013). Hence, proper material management is necessary in RC projects (Choudhari & Tindwani 2017).…”

Section: Rc Projects and Abc Materials Wastagementioning

confidence: 99%

“…The main type of construction material used in RC projects is non-renewable aggregate resources. A considerable percentage of the material cost of road projects can be attributed to the aggregate cost (Ogbu & Adindu 2019). ABC is a durable and well graded aggregate, which has been moistened uniformly and stabilized mechanically through compaction (Unified Facilities Guide Specifications [UFGS] 2017).…”

Section: Rc Projects and Abc Materials Wastagementioning

confidence: 99%

“…The four highlighted consequences were identified by the interviewees as those unique to Sri Lanka. Of the consequences identified from the literature, only cost overruns (Ogbu & Adindu 2019;Wijekoon & Aththanayaka 2013) given in bold italics was accepted by all of the interviewees as being applicable to ABC wastage in RC projects executed in Sri Lanka. Most of the interviewees agreed with the literature review findings.…”

Section: Consequences Of Abc Wastage In Rc Projectsmentioning

confidence: 99%

“…These roads are the backbone of the transportation system of the country because the socioeconomic development of the country is facilitated by the roads through the speedy transportation of both people and cargo (Manamgoda et al 2018). Road projects are notorious for being risky, and often end up with cost overruns (Ogbu & Adindu 2019). According to a study done by Gulghane and Khandve in 2015, construction material costs account for a large percentage of the construction project cost.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Management of Aggregate Base Course Wastage in Road Construction Projects

Priyaruwan¹,

Shandraseharan

Perera

2020

FARU J.

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The construction industry in a country contributes significantly to the national economy. Developing countries in Asia produce a huge amount of construction waste. Road Construction (RC) projects, which are quite risky, often end up with cost and time overruns. Construction materials account for a major portion of the cost overruns. Thus, the management of material wastage in construction projects is important. Aggregate Base Course (ABC) wastage affects the cost of RC significantly. Thus, this study was on the waste management of ABC in RC projects executed in Sri Lanka. The study adopted a qualitative research approach and the required empirical data were collected by interviewing 13 experts. The interview findings were analysed manually using content analysis. The interviews were conducted based on the findings of a literature review. The interviews findings disclosed that improper material storage in sites, material wastage during transportation, improper material utilization, and professional inefficiency as the major factors that contribute to material wastage in road projects. Material reconciliation and proper documentation were identified as the two most common strategies that can be adopted to manage the material wastage in RC projects.

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Determination of the structure for the road construction machinery fleet on the basis of fractional linear optimization

Zanina

Lazarev

Radaev

2022

Transportation Research Procedia

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Direct risk factors and cost performance of road projects in developing countries

Cited by 18 publications

References 44 publications

Perception on challenges impacting bid decision of indigenous building contractors in Dar Es Salaam, Tanzania

Perception on challenges impacting bid decision of indigenous building contractors in Dar Es Salaam, Tanzania

Management of Aggregate Base Course Wastage in Road Construction Projects

Determination of the structure for the road construction machinery fleet on the basis of fractional linear optimization

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