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Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province

Thesis (MEng)--Stellenbosch University, 2024.

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Main Author: Phenyane, Nokwanda Sabeliwe
Other Authors: Wium, Jan
Format: Thesis
Language:en_ZA
en_ZA
Published: Stellenbosch : Stellenbosch University 2024
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access_status_str Open Access
author Phenyane, Nokwanda Sabeliwe
author2 Wium, Jan
author_browse Phenyane, Nokwanda Sabeliwe
Wium, Jan
author_facet Wium, Jan
Phenyane, Nokwanda Sabeliwe
author_sort Phenyane, Nokwanda Sabeliwe
collection Thesis
dc_rights_str_mv Stellenbosch University
description Thesis (MEng)--Stellenbosch University, 2024.
format Thesis
id oai:scholar.sun.ac.za:10019.1/130300
institution Stellenbosch University (South Africa)
language en_ZA
en_ZA
last_indexed 2026-06-10T12:41:34.416Z
license_str Other — see source repository
provenance_str_mv Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository
publishDate 2024
publishDateRange 2024
publishDateSort 2024
publisher Stellenbosch : Stellenbosch University
publisherStr Stellenbosch : Stellenbosch University
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source_str SUNScholar — Stellenbosch University Repository
spelling oai:scholar.sun.ac.za:10019.1/130300 Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province Phenyane, Nokwanda Sabeliwe Wium, Jan Stellenbosch University. Faculty of Engineering. Dept. of Civil Engineering. Construction projects -- KwaZulu-Natal (South Africa) Small business -- KwaZulu-Natal (South Africa) Road construction contracts -- KwaZulu-Natal (South Africa) Thesis (MEng)--Stellenbosch University, 2024. ENGLISH ABSTRACT: The construction industry is widely recognized as a pivotal driver of economic growth, with Small, Medium and Micro Enterprises (SMMEs) constituting an indispensable component of construction economies. This thesis investigates the factors affecting the performance of emerging contractors in road construction projects within the Kwa-Zulu Natal Province, South Africa. The research objectives encompass clarifying challenges faced by emerging contractors, evaluating initiatives aimed at alleviating their challenges, and investigating the effectiveness of these initiatives. Additionally, the study seeks to establish current performance statistics, challenges, and shortcomings of emerging contractors while proposing initiatives to enhance their performance. The study incorporates a comprehensive literature review, culminating in the identification of factors affecting the performance of emerging contractors and an analysis of government and client-led initiatives aimed at supporting these entities. Utilizing a mixed research approach, the study combines quantitative data collected through surveyed questionnaires and qualitative insights collected from interviews. Three hundred and seventy (370) participants, registered as emerging contractors under the Civil Engineering class of works with the Construction Industry Development Board (CIDB), received the survey questionnaire. Ultimately, 124 participants completed the online survey, resulting in a 34% response rate. Additionally, interviews were conducted with fifteen (15) participants, evenly distributed among clients, well-established contractors and emerging contractors. The findings of this study reveal that several common factors impact the performance of emerging contractors, including inadequate training and skills development, contractor competence (encompassing skills, qualifications, experience, financial management, and project planning), financial constraints (such as delayed client payments, limited access to bridging loans), the complexity of the tendering process, and occurrences of unethical conduct. Notably, financial constraints and lack of technical competence were identified as critical impediments to the performance of emerging contractors within the construction industry. Despite extensive efforts by public sector clients, government interventions, and policy changes, the persisting challenges facing emerging contractors remain largely unresolved. The study recommends a multipronged approach to address these issues, including enhanced training and skill development programs, revisions to procurement policies to policies to ensure that the selection of the lowest bidder is avoided when financial risks are identified, the introduction of construction licenses or technical qualifications as prerequisites for establishing a construction company, and the promotion of joint ventures between emerging contractors and well-established contractors. This study contributes valuable insights to the quest for solutions to the challenges impeding the performance of emerging contractors in Kwa-Zulu Natal Province. Furthermore, it provides a foundation for further research in this critical sector, ultimately enhancing the economic development and sustainability of the construction industry. AFRIKAANSE OPSOMMING: Die konstruksiebedryf word wyd erken as 'n belangrike drywer van ekonomiese groei, met Klein, Mikro, en Medium Ondernemings (KMMO's) wat 'n onontbeerlike komponent van konstruksie-ekonomieë uitmaak. Hierdie studie ondersoek die faktore wat die sukses van opkomende kontrakteurs in padkonstruksieprojekte in die KwaZulu Natal Provinsie beïnvloed. Die navorsingsdoelwitte behels die identifisering van leemtes in die bestaande literatuur, die identifisering van uitdagings wat opkomende kontrakteurs in die gesig staar, die evaluering van inisiatiewe wat daarop gemik is om hul uitdagings aan te spreek, en ‘n ondersoek na die doeltreffendheid van hierdie inisiatiewe. Daarbenewens poog die studie om huidige statistieke van sukses, uitdagings en tekortkominge van opkomende kontrakteurs te bepaal, en om inisiatiewe voor te stel om hul sukses te verbeter. Die studie sluit 'n omvattende literatuuroorsig in, wat suksesfaktore van opkomende kontrakteurs identifiseer, en 'n ontleding van regerings- en kliëntgeleide inisiatiewe wat daarop gemik is om hierdie entiteite te ondersteun. Die studie gebruik 'n navorsingsbenadering wat kwantitatiewe en kwalitatiewe metodes kombineer. Data is ingesamel deur vraelyste en deur kwalitatiewe insigte wat uit onderhoude verkry is. Driehonderd-en-sewentig (370) deelnemers, geregistreer as opkomende kontrakteurs onder die Siviele Ingenieurswese-klas van werke by die Konstruksiebedryf-ontwikkelingsraad (CIDB), het die vraelys ontvang. Uiteindelik het 124 deelnemers die aanlyn-opname voltooi. Verder is onderhoude gevoer met vyftien (15) deelnemers, eweredig versprei onder kliënte, gevestigde kontrakteurs en opkomende kontrakteurs, met vyf (5) deelnemers uit elke groep Die bevindinge van die studie dui aan dat verskeie algemene faktore die sukses van opkomende kontrakteurs beïnvloed. Hieronder word ingesluit opleiding en vaardigheidsontwikkeling, kontrakteursbevoegdheid soos vaardighede, kwalifikasies, ondervinding, finansiële bestuur, projekbeplanning, finansiële beperkings (soos vertraagde kliëntbetalings), beperkte toegang tot oorbruggingslenings, die kompleksiteit van die tenderproses en voorvalle van onetiese gedrag. Veral finansiële beperkings en gebrek aan bevoegdheid, waaronder tegniese bevoegdheid, is geïdentifiseer as kritieke beperkings vir die prestasie van opkomende kontrakteurs in die konstruksiebedryf. Ten spyte van uitgebreide pogings deur kliënte in die openbare sektor, regeringsinisiatiewe en beleidsveranderinge, bly die volgehoue uitdagings wat opkomende kontrakteurs in die gesig staar, grootliks onopgelos. Die studie beveel 'n veelvoudige benadering aan om hierdie kwessies aan te spreek. Dit sluit in verbeterde opleiding en vaardigheidsontwikkelingsprogramme, hersiening van verkrygingsbeleide om te verseker dat die aanstelling van die laagste aanbieder vermy word wanneer finansiële risiko's geïdentifiseer word, en die daarstelling van konstruksielisensies of tegniese kwalifikasies as voorvereistes vir die stigting van 'n konstruksiemaatskappy. Verder word die stigting van gesamentlike ondernemings tussen opkomende kontrakteurs en goed gevestigde kontrakteurs aanbeveel vir verder ondersoek. Hierdie studie maak ʼn waardevolle bydrae tot die soeke na oplossings vir die uitdagings wat die sukses van opkomende kontrakteurs in Kwa-Zulu Natal beperk. Verder bied dit 'n grondslag vir verdere navorsing in hierdie kritieke sektor, wat uiteindelik die ekonomiese ontwikkeling en volhoubaarheid van die konstruksiebedryf kan verbeter. Masters 2024-02-20T20:00:10Z 2024-04-26T12:35:29Z 2024-02-20T20:00:10Z 2024-04-26T12:35:29Z 2024-02 Thesis https://scholar.sun.ac.za/handle/10019.1/130300 en_ZA en_ZA Stellenbosch University xiii, 91 pages : illustrations application/pdf Stellenbosch : Stellenbosch University
spellingShingle Construction projects -- KwaZulu-Natal (South Africa)
Small business -- KwaZulu-Natal (South Africa)
Road construction contracts -- KwaZulu-Natal (South Africa)
Phenyane, Nokwanda Sabeliwe
Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title_full Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title_fullStr Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title_full_unstemmed Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title_short Factors affecting the performance of emerging contractors in road construction projects in the KwaZulu Natal Province
title_sort factors affecting the performance of emerging contractors in road construction projects in the kwazulu natal province
topic Construction projects -- KwaZulu-Natal (South Africa)
Small business -- KwaZulu-Natal (South Africa)
Road construction contracts -- KwaZulu-Natal (South Africa)
url https://scholar.sun.ac.za/handle/10019.1/130300
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