EVALUATING THE PERFORMANCE OF LOCAL CONTRACTORS IN INTERRNATIONAL CONSTRUCTION PROJECTS

Abstract

The competitiveness of local contractors in undertaking international construction projects both within the country and the subcontinent is found to be very poor. In view of this, this research is intended to objectively evaluate their performance through identifying the Critical Success Factors, determining the status and evaluating their performance using a newly developed framework with a view of understanding the gap in the quest of improving service delivery. A survey research design with mixed research strategy is applied. All the required data were collected by using literature review and structured questionnaire. Grounded Theory technique was used to analyze the data collected from the literature review, and Mean Item Score and Kerzner Project Management Maturity Model were employed to analyze the data collected from the randomly sampled grade-one local contractors. The Project Management Maturity level determination is aided by Fuzzy Expert System. The overall Performance of the local contractors is evaluated by using a newly developed framework. The reliability and validity of the framework is checked and adjudged reliable and valid. The interrelationship and statistical significance between the variables were checked by using Pearson Correlation and Multi linear regression respectively. All the variables in the model were found to be significant in affecting local contractors’ performance. The findings from the framework were also validated by comparing them with other previous studies and found to be in agreement. Appropriate statistical tools including Excel, SPSS and Mat lab were used to support the analysis. The study identified nine critical success areas under three group of indicators. Marketing, Operation, Resource and Research and Development capability areas as an Internal factors as they relate to organization’s internal environment; Technological, Socio-cultural, Economic and Legal and political Factors as an External factor as they relate to the operating environment; and Project Management maturity as the third indicator. Upon determining the status of local contractors, all the indicators were found to be unsatisfactory. And the overall performance of local contractors is found to be at Level-2 implying unsatisfactory performance in international projects. Satisfactory Performance of local contractors in international construction projects can be achieved by improving the current project management maturity to the next level, and through enhancing the operational and resource capabilities of local contractors.