Construction industry

Fugal and Awkward-Bah (2010) in the study Delays in Building Construction constructed In Ghana synthesized a number of these factors towards highlighting their relevance in contemporary Ghana- Ian construction practice. They concluded that the factors affecting construction performance could be classified under the following themes: materials, manpower, equipment, financing, environment, changes, government action, contractual relation- ships and scheduling and controlling techniques. Indeed, there is a lot of popular literature on factors affecting construction performance in Ghana.

Although these significant bodies of knowledge exist in the It is contended that, given that Local constructors account for over 95% of building firms operating in the Ghanaian Construct- Zion Industry (CGI), and also in financial terms contributing substantially to construction GAP at decentralized and Local Government areas in Ghana, their evaluation of the knowledge of the factors influencing performance in the industry could be useful in Dave loping a framework towards effective performance management and improve- meet in a very crucial sector of the CGI

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World Bank (2003) in their article “Registration of Construction Firms’ observed that fiscal constraints largely accounts for insecurity of funding for construction projects which creates a constant specter of delayed payments. There is also,no doubt that these factors, especially those linked to finance and interest rates, are within the purview of the government’s fiscal policy (see, for instance,USER, 2008). That is why, it makes practical sense to name factor 1 as fiscal policy-related.

It also makes practical sense why f actors, such as available- tit of materials and availability of technology, would be classified under fiscal policy. This is because, presumably, if access to finance and the enabling environment is addressed, there is a high possibility that these factors would, invariably, also be taken care of, especially if sound incomprehensibleness are also adopted. However, it is not clear why the factor, “weather conditions”, also loaded onto the factor now termed fiscal policy.

Perhaps, this is a manifestation of the fact that, there are certain logistics that could help small-scale contractors work in adverse weather conditions and these are funding- related Wells, J. (2007). In the study Informality in the Construction Industry in Developing Countries find that The issue bordering on the managerial capacity for the Local construction industry By gypper admitting to their own inadequacies, although this is also a long-held belief among many industry analysts.

According to the study the reality is that, many Local constructors operate a resonated style of management without due regard to effective modern management practices and recruitment methods Gurgle, M. And Urgent, E. (2000). In the study “The Effects of Economic Development n Project Management in Developing Countries Here, the variables classified under managerial-related factor are all practically relevant even in modern-day Ghanaian construction practice.

From the authors’ experience, factors, such as health and safety, site organization, communication, interpersonal skills, availability of training proprietors and technicians, are all management-related and could be addressed by providing a holistic, but rigorous continuing profess- signal development management programmer for small-scale contractors. By their own admission, it should be possible for the GO and other stake- holders to collaborate with Local constructors towards devising a robust strategy to improve their managerial cap- tit regularly in the sector.

As noted by Gamesman (1983), small-scale firms account for over 90% of all construction firms in practically all countries. Indeed, in many developing countries, practically all construction firms are small and the Ghanaian situation is no exception (CB. Sassy, 2000). Notwithstanding that these companies are described as small firms, their dominant role in building materials production and construction in any construction economies is well established (CB. Wells, 2007). Indeed, in Ghana, the contribution of Local constructors in terms of employment in the informal sector is quite significant.

Above all, they are responsible for engendering the accelerate develop- meet of many rural and local government areas where approximately 60% of Ghanaian make their living. However, against the background of fluctuate- inning and declining demand for projects, taxed with a deteriorating national economic environment, the challenges faced by these firms can be overwhelm- inning. Indeed, when account is taken of the difficult environment in which they operate, their perform- menace could be described as satisfactory.

However, if they are to survive and grow in an increasingly difficult business environment t such as those pertain- inning in many developing countries south of the Sahara. As noted by numerous writers in the past (CB. Gamesman, 1983; For, 1991; Caddie and Langford, 2000), the most pressing problems facing small-scale contractors in many developing count- tries are the same, namely, lack of finance, low labor productivity, shrinking demand arising from fluctuations in national construction output, capacity ender-utilization and inadequate technical assistance required for rationalization.

Interestingly, despite some modest improvement made in the economy of many developing countries, such as Ghana, in recent times (STEP, 2010), the above problems still exist and are undermining the capacity of most buss- nesses, including construction companies to grow and be competitive (CB. ISSUER, 2008). As a developing country, the role of the Ghanaian Construction Industry (CGI) in terms of its linkage to the agricultural sector and rural development is very much unquestionable.

Subsequently, many of he local construction firms, particularly small ones, operate in rural areas to help stimulate local govern- meet development. As noted earlier, these firms, albeit small, could also be accounting for over 50% (cost-wise) of all building material production and nearly 80% of all short-term employment in many deprived communities in Ghana. With the discovery of oil in commercial quantities, a massive flow of capital, both domestic and foreign, is expected to be attracted to undertake the necessary infrastructure in Ghana.

Within this context, the construction Indus- rye is projected to grow at an unprecedented a rate of 13. 0% (ISSUER, 2008). Thus, contextually, key sector indications suggest that the CGI is strategies- calla well positioned to help engender the much-needed accelerated development of wider deficiencies exist that need to be addressed before the industry can become a major driver of economic growth and Job-creation.

Thus, the degree to which the CGI industry can maintain competitiveness and growth is to train highly skilled and adaptable workforce and also learn from effective modern management techniques from best practices. The endings of this research should help generate renewed interest in a rigorous policy programmer towards strengthening the financial position and managerial capacity of Local constructors. All in all, govern- meet, as the largest employer and regulator, has a lot to do in terms of streamlining fiscal policy direction towards making the operations of Local constructors compete- dive.

World Bank (1996), Westerner (1997), crown Agents (1998) , world sank (2003) Payment difficulties and delays, poor coordination and communication structures, fiscal constraints and extensive controls, landownership spites Fugal and Awkward-Bah (2010) Materials related, equipment related, finance related, environmental re- elated, changes, government action, contractual relationship, scheduling and controlling techniques Edmonds and Miles (1984) Delay in payments, lack of credit facilities, poor communication strut- turrets, unreliable materials supply base The literature in Ghana identifies numerous potent- till factors that could affect the performance of qualitative evidence provided by Edmonds and Miles (1984) and For (1984) about three decades ago revealed chronic delay in the payments of annotators for work done, lack of credit facilities for firms, poor communication structures and an unreliable material supply base. Using quantitative analysis, Dazzle (1995) also reported evidence of lack of finance and credit facilities for contractors, delay in the payment of contractors for work done, design changes and/or variations, low morale and motivation of craftsmen, poor planning, supervision and low mechanization, as some of the important factors that could be affecting construction perform- menace (see also Shows-Tahiti, 1998).

In their procurement of audit of Ghana, the World Bank 1996, 2003), western (1997) and crown Agents (1998) have continuously reported documentary evidence of contracts taking very lengthy periods to reach financial closure and also, often subjected to unnecessary delays, poor coordination and comma- inaction structures, fiscal constraints and extensive systems of controls and land ownership disputes. In a recent study, Fugal and Awkward-Bah (2010) synthesized a number of these factors towards highlighting their relevance in contemporary Ghana- Ian construction practice. They concluded that the factors affecting construction performance could be