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AN INSIGHT INTO THE CRITICAL SUCCESS FACTORS

RELATING TO QUALITY OF CONSTRUCTION PROJECTS IN


SOUTH AFRICA AND THE RISK FACTORS THEREOF

By

Jacobus Johannes Roets

A RESEARCH PROJECT

Submitted to

The University of Liverpool

in partial fulfillment of the requirements


for the degree of

MASTER OF SCIENCE IN PROJECT MANAGEMENT


CONSTRUCTION AND INFRASTRUCTURE TRACK

12 NOVEMBER 2015

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ABSTRACT

AN INSIGHT INTO THE CRITICAL SUCCESS FACTORS


RELATING TO QUALITY OF CONSTRUCTION PROJECTS IN
SOUTH AFRICA AND THE RISK FACTORS THEREOF

By

Jacobus Johannes Roets

This research project investigates the Critical Success Factors which have a direct impact on the

Cost of Project Quality, as well as overall Project Delivery.

The South African Construction Industry suffers from continued losses due to poor quality deliver-

ance, and significant rework. Even though a lot of research has been done to determine the blame

from a client perspective, very little research has been done from a holistic approach, taking all

stakeholders into account, to potentially find the true factors impacting project success.

The purpose of this study is to determine whether there are certain factors that have a higher

significance on overall project success, in an effort to identify possible preventive interventions to

improve overall performance and reduce Quality related costs, whilst increasing profit margins.

The research was conducted by sending questionnaires to 70 industry professionals. Participants

were requested to allocate a score out of 5 for each question. The answers were then collated and

the mean calculated to determine the true impact of each success factor, as perceived by the

industry professionals.

The research shows that there are 10 critical success factors, which if controlled correctly should

reduce overall project cost significantly if seen in relation to project failure costs.

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DECLARATION

I hereby certify that this research project constitutes my own product, that where the language of

others is set forth, quotation marks so indicate, and that appropriate credit is given where I have

used the language, ideas, expressions or writings of another.

I declare that the research project describes original work that has not previously been presented

for the award of any other degree of any institution.

Signed,

Jacobus Johannes Roets

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ACKNOWLEDGEMENTS

I would first like to thank my thesis advisor Dr Ron Dyer, Director of Studies, MSc Pro-
gramme and Project Management of the Management School at the University of Liver-
pool. The door to Dr. Dyer and his team’s door was always open whenever I ran into a
trouble spot or had a question about my research or writing. They consistently allowed
this paper to be my own work, but steered me in the right the direction whenever he
thought I needed it.

Then, to my Student Advisor, Dave Beers, of Laureate Education, thank you for fighting
on my behalf every step of the way, from assisting with my enrollment, convincing the
University of Liverpool Board to allow me access without me having held the necessary
qualifications to merit acceptance, pushing me to continue when I wanted to give up,
and presenting my work to the Board of Examiners on my behalf. You have truly gone
above and beyond my expectations.

I would also like to thank the participants who were involved in the research project. I will
not be naming each of the 70 individuals in this section. Without their passionate partici-
pation and input, the survey could not have been successfully conducted.

And lastly I wish to thank my family and close friends, who have supported me through
this process, and understood the constraints imposed by this project and the associated
studies.

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TABLE OF CONTENT
Page

Chapter 1. Research 1
1.1 Introduction 1
1.2 Scope 4
1.3 Approach 7
1.3.1 Mean Item Score (MIS) ............................................................................ 8
1.4 Outcome 9
1.4.1 Demographical specifics .......................................................................... 9
1.4.2 Critical Success Factors for the Reduction of the COPQ ...................... 10

Chapter 2. Conclusions 13
2.1 Lessons Learned 13
2.2 Future Activity 13
2.3 Prospects for Further Work 13
2.4 Potential Actions to Mitigate Risks Identified 14
2.4.1 Defining quality objectives (standards and specifications); ................... 14
2.4.2 Providing effective leadership; ............................................................... 14
2.4.3 Defining quality control mechanisms;..................................................... 14
2.4.4 Team development and deploying skilled work force; ........................... 14
2.4.5 Team work;............................................................................................. 15
2.4.6 Fulfilling contractual obligations; ............................................................ 15
2.4.7 Fulfilling health and safety requirements; .............................................. 15
2.4.8 Measuring performance of activities on critical path; ............................. 15
2.4.9 Improving the productivity of resources ................................................. 16
2.4.10 Initiating accountability process ............................................................. 16
2.5 Concluding Statement 16

REFRENCES CITED 17

Appendix A. Original Name List 19

Appendix B. List of 70 Individuals Chosen at Random 19

Appendix C. Completed Questionnaires 19

Appendix D. Calculations 19

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Chapter 1. RESEARCH

1.1 Introduction

Poor Quality within Construction Projects are not a new concept to the world, nor to the South
African demographic. Even though the effects of poor quality has been extensively cata-
logued and debated there seems to be a lingering culture of poor workmanship within the
South African market.

Several research studies have been done by the Construction Industry Development Board
(CIDB), Nelson Mandela Metropolitan University (NMMU), University of Pretoria (UP) and
Delloitte, yet all of these studies found by the researcher focusses primarily on identifying the
point of blame for failed or poorly delivered projects from a client perspective.

This is a good approach, however, the researcher believes that this leaves certain areas un-
der wraps, as involvement in these studies are primarily on senior management level, and
does not penetrate down to project control level. For this reason the researcher decided to
involve stakeholders from all levels, to close this gap, and provide slightly more unbiased re-
sults.

The intention of all projects started by South African construction companies is to perform the
project on schedule, not exceeding the planned budget, not hampering the safety of employ-
ees or the public and with the highest possible quality as end product. Unfortunately this is
not what is delivered at the end of the project. Many projects fall plague to the pitfalls of pro-
ject malfunction, and subsequently sub-standard quality workmanship.

This leads us to the primary question covered by this research paper; “What factors influ-
ences the success of the project quality management lifecycle to the point that it becomes
uncontrollable?”

Within an extended timeframe several scholars have researched the factors relating to the
successful completion of project, with minimal effect on cost output (Pinto and Slevin, 1989;
Morris and Hough, 1987). In particular focus was put on factors that had a higher effect on
total project quality output. According to thought leaders the success of a project in the con-
struction industry may only be evaluated when the specific dimensions are pre-defined. In es-
sence the dimensions of evaluation directly correlates to the primary project constraints of
cost, time and scope, with quality of work forming the core within these constraints.

The aforementioned has been legislated by the Council for the Built Environment of South Af-
rica (CBE) and the implementation of ISO9001 certification as a minimum requirement for
large tenders, but the problem still persists.

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When we define project success we are generally indicating that a project surpassed the ex-
pected time, cost, quality and safety requirements (Ashley et al., 1987) which were defined
through the baseline, leading to increased headline profit and expansion of order book. If this
is used as barometer for successful projects it would be clear that a project having financial
deficits, sub-standard quality and reduced safety statistics would be deemed as unsuccess-
ful. Taking the aforementioned into account it becomes paramount that the factors affecting
project success be analyzed and corrections implemented to ensure effective and successful
project delivery.

One of the most effective, and declared as the most important strategic tools, is Quality Man-
agement. This has been embraced by numerous organizations and countries alike, and uti-
lized as a strategic part of the construction and industrial output processes to deliver high
value projects, with continuing success being recorded across several industries.

The objective of any Quality Management System in any industry focusses on creating clarity
as to how the operation should be performed and controlled to provide optimum results,
whilst taking company resources and employee input into account as part of a strive for con-
tinual improvement. This invariably leads to an increased bottom line, and subsequently in-
creased value for money to clients, increased profit margins for contractors and the allocation
of further work based on historical performance.

It therefore becomes pertinent that Quality Management play an intricate role in the assur-
ance of ultimate project performance, and the subsequent success thereof. Assessing of Crit-
ical Success Factors for reduction of cost of non-conformance is therefore regarded as a pri-
mary prompt for quality improvement throughout the project lifecycle. In dealing with the root
causes of non-conformances the basis is laid to control rework, pull back project time slip-
page and provides assurance in disputes to name but a few examples.

It is important to note that improvement of associated sub-standard quality issues cannot be


achieved if the Critical Success Factors are not analyzed, issues addressed and factored into
the cost of non-conformances in order to maintain a continual improvement drive within the
organization. There are several factors which if correctly addressed will reduce non-conform-
ances and poor quality work to ensure project success within construction projects. Within the
South African demographic it becomes pertinent that we assess and analyze these factors to
enable the effective control over one of the high ranking risks staring the international con-
struction industry in the face.

The diverse issues facing the South African construction industry are in essence much
deeper rooted, with an increased severity and complexity. This coupled with the socioeco-
nomic challenges faced by the South African industry, as a result of non-inclusive develop-
ment infrastructure created by the previous dispensation created a whirlpool of polarization
within the industry.

This is predominantly visible in the Broad Based Black Economic Empowerment (BBBEE) re-
quirements set forth to in essence alleviate the disparity between different racial groups to
better represent the South African demographic, with the inadvertent effect of exclusion on
one side and inclusion on the other side based on race, thus creating further tension within
an already tense working climate.

Whilst the construction industry globally have been put under severe pressure, the South Afri-
can construction industry have felt the crunch to a higher degree due to a dwindling tax base,
poor economic growth and high inflation, thus pulling focus to cost saving, to the detriment of
initiatives to maintain proper quality of work.

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The intention of this research paper is thus focused on analyzing the factors which is poten-
tially reducing the quality of work produced within the South African construction industry in
an effort to define improvement opportunities which should be the focal point of the industry
to minimize the cost of non-conformance.

The aim with this is to optimize project output to provide superior quality workmanship, whilst
supporting the underlying profit margins to elevate profitability, sustainability and the overall
compatibility of construction companies within the South African context. The study was for-
mulated though active research obtained from professionals within the industry, at various
employment levels, as to gauge the true median.}

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1.2 Scope

The scope for this research project will be limited to the Johannesburg Construction Industry,
with the inclusion of the Medupi Power Station Project in Lephalale, as its size necessitates
inclusion in the research project.

To understand the complete scope, we need to understand the definition of Management of


Quality in Construction, and how it applies to the industry. Management of Quality in Con-
struction can be defined as the systems of support to site in delivering on project require-
ments and verifying that requirements are followed, whilst providing client assurance that
build quality specified in the plans and specifications are being produced.

This whilst ensuring that approved methods are established, identification of improvement op-
portunities are evaluated, verifying that controlling and checking of each activity has been
done, ensuring that effective control and close-out of non-conformances are maintained and
verification done on the effectiveness of corrective actions. And finally to ensure that records
of compliance for processes, tools and equipment are kept and provision of competent record
books is catered for at completion.

Goetsch and Devis, (2006) defines quality in construction as “a dynamic state associated with
products, services, people, processes and environment that meets or exceeds customer ex-
pectations and contract requirements/standards”, whilst Crosby (1979) defines quality as "the
degree to which a set of inherent characteristics fulfils requirements". When we compare this
to the FIDIC definition of quality we see a golden thread between all the different research
views, and the definitions given by FIDIC, ECSA, MBA and the CBE. This brings about the
question, what does quality of work actually contribute to a construction project? Why does all
the governing bodies, and contract makers bring quality in as a requirement for construction
projects? And how do we go about achieving such a broad requirement? For that we need to
know where quality in construction comes from and why we have quality in construction in the
first place.

Quality in Construction was developed over the centuries, with its origins believed to date
back to the construction of the pyramids in Egypt. The factual origins of quality in construction
however, dates back to 2000BC China, where standardizing of measuring instruments were
developed, in an attempt to create a synchronized view of what is required. From that point in
time, quality in China went through three more phases, with quality in construction formally
being written into laws and degrees in 1000BC, which included several departments under
the quality structure. The next to follow suit was Greece in 449BC, when a law was passed
that “the temple of Athena Nike will be built according to (Architect) Kilikrates’ description”.

This paved the road for the formal appointment of subcontractors in 300BC, which inevitably
broadened the field of construction quality. News of the successes achieved got noticed by
Rome in 300BC and was implemented in the construction of the aqueducts, which needed to
provide high quality water supply to the people in the cities, a marvel for the time period.
Since then quality in construction has snowballed into a multi-faceted management system
focusing on a holistic approach to organizational quality in the 1800’s. (Juran, 1995).

When we compare the ancient approach to quality to the modern state-of-the-art quality man-
agement programs we can see how the evolution of the quality management system is pro-
gressing, from informal verification, to standard development, and more recently the require-
ment to document inspection outcomes in accordance with approved plans and methods.

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The purpose of quality in construction through the ages however did not deviate, the primary
principle is to provide both the supplier and the client with an assurance that the product that
was provided indeed was what the client intended to receive, nothing more, and nothing less.
This gives us several benefits in that properly controlled quality programs increase productiv-
ity, boosts morale and increases the company’s ability to adapt to change, thus opening up
cost savings and higher turnover rates on projects with a high-end customer satisfaction out-
look.

The principle of defining the cost of quality was pioneered by Juran in 1951 in his publication
“Quality Control Handbook”. In this publication he argued that quality related issues were to
be presented to executives in financial terms in order to ensure their understanding of the
detrimental effect of sub-standard quality on the bottom line. This was further emphasized by
Feigenbaum later that same year in his classification technique, eloquently called “The Pre-
vention, Appraisal and Failure Model of Cost (PAF)”. In this model cost were allocated to one
of the three categories, which was supported by Crosby in 1979 when he indicated that the
total cost of quality can be stated as “The sum of the price of conformance and the price of
non-conformance”. This lead to several research articles based on this topic, with authors
delving deep into the different aspects within the three classifications covered under the PAF
model.

In 2000 Love and Li indicated that the original model was no longer sufficient for proper track-
ing of quality cost, and needed to be expanded into a broader model, which would account
for the cost of prevention, appraisal, internal failure and external failure. By splitting the failure
cost into internal and external failure costs the organization would have a clearer indication of
what the true cost of quality is within the projects it pursued.

Schiffauerova and Thomson released a study in 2006, indicating that 6-15% of construction
cost is wasted as a result of rework detected during construction, and as much as a further
5% of construction cost as latent defects are identified post completion during routine mainte-
nance within the allocated defect liability periods. Recent studies at the Nelson Mandela Mu-
nicipal University analyzed the South African Construction Industry, and found that 9.9% of
project value in South African projects are lost to sub-standard quality of work, over-ordering
and poor management of resources, with an estimated 23% cost run-in on severely misman-
aged projects. During this study the University drew the conclusion that the failure rate was
based primarily on six factors, namely: the pre-occupation with cost and time, poor manage-
ment, inadequate competency and improper management of existing quality management
systems.

As can be seen by the CIDB study (2014), the key issues influencing poor quality can be at-
tributed to 7 focus areas, which factors into the total project performance. Below is the find-
ings of their study in table format.

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Table 1:

In addition, Chapalkar (2011) indicates that 20 to 40% of all construction non-conformities are
rooted in the actual activity itself, with 54% of all defects denoted to human factors. This is
supported by the findings of the CIDB and FIDIC research studies. Based on these factors
and findings it is therefore pertinent that a thorough approach to project quality management
should be adapted through assessing the critical success factors that directly impacts on the
cost of non-conformance.

Based on the above findings it was decided that the correct starting point would thus be to
identify from a holistic standpoint, what is the factors impacting quality on site, specifically
when looking at the costs allocated to failures related to these factors.

Through literature review, research and interviews with thought leaders in the industry, a list
of 41 Critical Success Factors which have a direct impact on the project triangle, and subse-
quently, project Quality.

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1.3 Approach

The data collected was gathered through primary and secondary sources. Surveys were uti-
lized as a means of primary data collections and literature review and analysis, along with ar-
chive re-evaluation was utilized as secondary sources. In obtaining the primary data a struc-
tured questionnaire was utilized, which was focused at 70 professionals in the construction
industry in Johannesburg and Lephalale.

Professionals were randomly selected, and span a wide array ranging from Site Managers,
Principle Contractor Management, Sub-Contractor Management, Surveyors, Quantity Sur-
veyors, Engineering Managers, Quality Professionals, SHE Professionals, Civil Engineers,
Mechanical Engineers, Fire Engineers, Foremen, Client representatives, Consulting Engi-
neers and Project Directors. The list was compiled from name lists received from the
SACPCMP, MBA, ECSA, SAQS, SAQI, ASQ and the CBE. All participants were approached
individually to gauge their willingness to participate fully and truthfully in the survey.

The reason behind random sampling stems from Swan and Khalfan’s work (2007) that indi-
cated that an inclusion should be made across the entire spectrum of construction profes-
sionals to obtain valid quantifiable results. A List of 237 candidates was produced and 70
names picked randomly without prejudice or favor.

This ensures that the survey results clearly reflects the understanding within the industry, and
not just a few selected professionals. Out of 70 questionnaires transmitted, 66 was returned
at the time of writing, thus constituting a 94.3% response rate.

This was considered satisfactory for the analysis based on the assertion by Moser and Kalton
(1971) that the result of a survey could be considered as biased and of little value if the return
rate was lower than 30% to 40%.

Because the sample size for this study was relatively small, all groups of respondents were
lumped together in the analysis in order to obtain significant results. The data were analyzed
by calculating frequencies and the mean item score (MIS) of the rated CSF. Although the
study is based on a relatively small sample of 70 construction professionals, the findings pro-
vide an insight into the general perception of the COPQ in Johannesburg and Lephalale con-
struction projects.

The calculation of the MIS is explained in the next section. The research was conducted be-
tween the months of February and June, 2015. The questionnaire was designed based on
the information gathered during the literature review and does not form part of an existing
survey instrument.

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1.3.1 Mean Item Score (MIS)

A five point Likert scale was used to determine the CSF which have the potentials to reduce
the COPQ during planning and execution stages of construction project in South Africa with
regards to the identified factors from the extant review of literature.

The adopted scale was as follows: (1) = Strongly disagree; (2) = Disagree; (3) = Neutral; (4) =
Agree; and (5) = Strongly agree. The five-point Likert scale scores were transformed into a
MIS for each of the CSF as scored by the respondents. The indices were then used to deter-
mine the rank of each item. These rankings made it possible to cross compare the relative
importance of the items as perceived by the respondents.

The computation of the MIS was calculated from the total of all weighted responses and then
relating it to the total responses on a particular aspect. This was based on the principle that
respondents' scores on all the selected criteria, considered together, are the empirically de-
termined indices of relative importance.

The index of MIS of a particular factor is the sum of the respondents' actual scores (on the 5-
point scale) given by all the respondents' as a proportion of the sum of all maximum possible
scores on the 5-point scale that all the respondents could give to that criterion.

Weighting were assigned to each responses ranging from one to five for the responses of
'strongly disagree' to 'strongly agree'. This is expressed mathematically below in Equation
1.0. The relative index for each item was calculated for each item as follows, after Lim and
Alum (1995):

Equation 1.0

Where; n1 = Number of respondents for strongly disagree; n2 = Number of respondents for


disagree; n3 = Number of respondents for neutral; n4 = Number of respondents for agree; n5
= Number of respondents for strongly agree; N = Total number of respondents. Following the
mathematical computations, the criteria was then ranked in descending order of their relative
importance index (from the highest to the lowest). The next section of the article presents the
findings of the survey and some discussion.

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1.4 Outcome

1.4.1 Demographical specifics

From the structure questionnaire survey, it was found that the surveyed professionals' com-
position were: 10.0% architects, 15.0% quantity surveyors, 30.0% civil / structural engineers,
and 25.0% construction managers and 20.0% project managers. It was also found that the
respondents' are currently handling construction projects ranging from residential, road con-
struction, infrastructure and civil engineering related projects.

Further findings revealed that 59.0% of the respondents were male while 41.0% were female.
This finding thus shows that the orientation of a male dominated construction industry is grad-
ually being revolutionized in South Africa, into an industry where a significant numbers of fe-
males are now participating. Albeit, 80.0% of the reported 15.0% quantity surveyors in the
study were females.

Also, findings relating to the respondents' ethnic background reveals that Black Africans were
80.0%, while 15.0% were Whites, 2.0% where Indians I Asians and 3.0% were Colored peo-
ple of South Africa.

The respondents' educational qualification reveals that 53.0% have post-diploma degrees,
27.0% have an equivalent of B-degree and 20.0% with a post graduate degree as their high-
est qualification.

A survey of the respondents' professional registration revealed that 35.0% of the respondents
where professionally registered with different built environment professions, while 45.0%
where registered as under the candidate category of their professional route to formal regis-
tration as professionals and 20% not currently enrolled with any professional body. Also, it
was found that 87.0% of the respondents have been working in Johannesburg for more than
10 years, while 13.0% have worked in Johannesburg for a period of less than 5 years.

Findings also shows that 45.0% of the respondents work for construction consultant firms
while 20.0% of the respondents' works for public sector client (government), while a further
35.0% works for contractors. These finding thus reveals that the respondents have a working
knowledge of the construction industry / projects and activities in Johannesburg; hence their
opinions on the study objective will be deemed credible.

The following sections present the result of the survey findings on the CSF which have the
potentials to reduce the COPQ during planning and execution stages of construction project
in South Africa with regards to the identified factors from the extant review of literature.

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1.4.2 Critical Success Factors for the Reduction of the COPQ

Based on the ranking (R) of the weighted averages, the mean item scores (MIS) for the listed
CSF which have the potentials to reduce the COPQ in South Africa construction projects
were identified.

The survey findings revealed the ten (10) most CSF from a list of 41 CSF classified under five
themes that have the potentials to reduce the COPQ on construction projects in Johannes-
burg, as shown in the tables below:.

Table 2:

Table 3:

Table 4:

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Table 5:

Table 6:

The research findings are not significantly different from findings by other international stud-
ies relating to this field, however they are peculiar within the South African construction indus-
try because of the extent of regulation via policies and the various government legislated pro-
fessional bodies and councils.

The ten most important CSF as identified from the above five classifications are thus:
1. Defining quality objectives (standards and specifications);
2. Providing effective leadership;
3. Defining quality control mechanism;
4. Team development and deploying skilled work force;
5. Team work;
6. Fulfilling contractual obligations;
7. Fulfilling health and safety requirements;
8. Measuring performance of activities on critical path;
9. Improving the productivity of resources
10. Initiating accountability process

Incidentally these are all very high on the list of issues the various regulatory professional
councils/ bodies such as the South Africa Construction Industry Development Board ( cidb)
have been mandated to address since inception.

For instance, on the CSF for the provision of effective leadership, the various professional
bodies such as the South Africa Council of Quantity Surveying Profession (SACQSP) and the
South African Council for Project and Construction Management Professions (SACPCMP)
have several leadership training requirements, which contribute to the registered professional
Continuous Professional Development (CPD) training.
South African Council for Project and Construction Management Professions (SACPCMP),
through an order of the Minister of Public Works have also created a separate registration
route for health and safety professionals who will be responsible for leadership in this aspect.

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Furthermore, the survey results concurs with the findings of the study of Jha and Iyer (2006),
where it was found that defining quality objectives (standards and specifications); providing
effective leadership; and team development and deploying skilled work force as factors which
could mitigate against the COPQ in construction projects.

Also, the findings from the current work concurs with the study of Mahmood, Shahrukh and
Sajid (2012) when they found that team work; providing effective leadership; fulfilling health
and safety requirements; measuring performance of activities on critical path; improving the
productivity of resources and initiating accountability process are CSF for the reduction of the
COPQ in construction projects in the Pakistani construction industry.

Moreover, Newton (2005) states that resource plan has to be adequately developed and dis-
tributed to every section involved in any project in order to ensure the successful delivery of
the project, thus avoiding the incidences of cost overruns. In addition, Johnson, Scholes and
Whittington (2006) stresses the importance of adequate funding throughout the project which
is also highlighted in the current finding. Their study informed that it should be ensured that
no activity is hampered, due to funding shortages.

The importance of contract documentation was highlighted by Kerzner (2006), who suggests
that, if no contract is signed, it would be difficult to ensure performance of the necessary ac-
tivities. This seldom happens, but where there is no adequate leadership to ensure the coor-
dination of construction activities, this can occur.

Likewise, the ground breaking work of Ashley et al. (1987) on CSF construction project also
concurs partially with the current findings. Ashley et al. (1987) found that management, or-
ganisation and communication; scope and planning; controls; environmental, economic, polit-
ical and social; and construction technical are typical CSF's for the reduction of the COPQ in
construction projects.

Based on the results of studies conducted in other geographical regions such as Pakistan
and Brunei, the current results seem to be more or less the same; albeit the first of its kind in
South Africa. These results are important for future research studies in order to observe
trends and shifts with regard to the CSF which have the potentials to reduce the COPQ on
construction projects in South Africa, using the Johannesburg construction industry as a case
study. This study provides a baseline for further studies in South Africa to enable researchers
to monitor the CSF which will reduce the COPQ in construction projects.

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Chapter 2. CONCLUSIONS

2.1 Lessons Learned

The study investigated the CSF which have the potentials to reduce the COPQ in construc-
tion projects in the South African construction industry, as is the case in the Johannesburg
construction demographic. This study identified 10 CSF for the reduction of COPQ in con-
struction projects from a list of 41 different CSF classified under five themes.

The ten most important CSF as identified study were: defining quality objectives (standards
and specifications); providing effective leadership; defining quality control mechanism; team
development and deploying skilled work force; team work; providing effective leadership; ful-
filling health and safety requirements; measuring performance of activities on critical path; im-
proving the productivity of resources and initiating accountability process.

The study concludes that there are a number of factors which have the potentials to reduce
the COPQ in construction projects in South Africa of which when properly implemented will
give the industry an advantage to meaningful enhance profitability, productivity, compatibility
and quality delivery of construction jobs which will boost the sustainability of the South Africa
national economic growth and strength and performance of the construction industry.

2.2 Future Activity

It is recommended that adequate and effective monitoring of construction projects and provi-
sion of feedback by the project team, adequately planning and coordination of construction
activities, timely issuing of information, and sound project management skills and periodic
quality audit of construction projects should be the main focus of the parties involved in the
project construction process.

2.3 Prospects for Further Work

It is believed that the results of this study can be of immense assistance to the construction
stakeholders (clients, contractors and consultants) and construction industry academics. The
stakeholders can better understand the changing aspects of construction project manage-
ment and they will be able to make concerted efforts to reduce the incidents of poor construc-
tion quality thus avoiding cost discrepancies which can result in disputes, cost overruns, time
constraints being surpassed and several other potential problems.

In addition, it would be beneficial if construction industry academics could conduct similar


studies in other parts of South Africa and identify the CSF for all regions, to create a holistic
view of the South African Construction Industry. It is believed that the results would closely
mirror the results of this study, but no empirical data is available to test this hypothesis at this
point in time.

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2.4 Potential Actions to Mitigate Risks Identified

It is important to note that the recommendations made below is the view of the researcher
based on personal experience within the industry, and is not based on empirical data. The
recommendations focus primarily on on-site interventions by contractors and subcontractors,
as this is the researcher’s field of expertise.

2.4.1 Defining quality objectives (standards and specifications);

It is suggested that each project be evaluated at tender phase to determine the Quality objec-
tives, prior to contract signing. This information should be collated into a structured plan indi-
cating what actions need to be undertaken to achieve these objectives. The researcher be-
lieves that if these objectives are clearly defined and analyzed prior to establishment, will re-
sult in significant reduction in overall quality failures.

2.4.2 Providing effective leadership;

Leadership comes in various shapes and formats. The primary focus in the researcher’s opin-
ion should be on leadership by subcontractors. The reasoning behind this statement is based
on the fact that in the majority of instances a subcontractor will be given a specific portion of
the works to complete based on the subcontractors’ abilities and size. The problem then
comes in that the subcontractor rarely has a competent person to deploy to the project on a
full-time basis, thus on-site control is done on an ad-hoc basis, resulting in a breakdown in
effective day-to-day leadership.

2.4.3 Defining quality control mechanisms;

In various instances it is found that mechanisms for the control of day-to-day operations,
based on the quality objectives of the project is not established at the beginning of the pro-
ject, and subsequently becomes an administrative paper exercise post fact. This creates the
issue that work is not properly controlled and captured, resulting in defects which could have
been prevented coming back at a later stage to hamper the project. It is therefore recom-
mended that a quality control system be developed for the project, based on the specifica-
tions and the National Building Regulations. This system should be clearly communicated to
all employees, and understanding should be verified.

2.4.4 Team development and deploying skilled work force;

This is a major risk currently applicable to the South African Construction Industry, as mar-
gins are slimming, resulting in cost factors affecting contractors and subcontractors alike. Un-
fortunately this means that companies are hiring unskilled / semi-skilled employees to work
on their projects to save on cost which they would have had should they have hired a quali-
fied employee. This inadvertently impacts the quality of work, as these employees do not
have the knowledge to see when things are starting to go wrong, and subsequently pick up
issues much later in the construction process, resulting in higher rework costs.
Coupled to this is the phenomenon where the youth do not wish to study a vocational trade,
as they are focused on getting office jobs, thus the possible employee pool of competent per-
sons are reducing significantly each year. It is recommended that contractors insist that there

14
are at least one fully competent person on site for a section of work, and that development of
semi-skilled and unskilled workers take place to ensure continuity in availability of competent
employees.

2.4.5 Team work;

Teamwork in the South African Construction Environment is a major hurdle impacting project
operations, specifically when different trades / contractors are working on the same section of
works. The tendency is to blame all other contractors / teams within the area for anything
possible to constitute delay claims.

Unfortunately this is a cancer that has come out of the commercial aspects involved in the
South African Construction Industry, resulting in contractors and teams no longer assisting
each other in ensuring that the work gets done, and meets specification. It is recommended
that teamwork between different contractors / teams be promoted, and contractual incentives
put in place to stimulate this type of behavior, especially between subcontractors.

2.4.6 Fulfilling contractual obligations;

It is noted that even though the South African Construction Industry has become more and
more contractual, few people actually take the time to read and understand the contract they
have agreed to. This invariably results in penalties and quality issues, as specific require-
ments were given in the contract, with which the contractor does not comply. The recommen-
dation is that the contract be taken by the Project Manager, summarized and communicated
to all project supervisory and management staff, to ensure that the objectives are clearly de-
fined.

2.4.7 Fulfilling health and safety requirements;

This item is a constant headache on any construction project, as the work being done is in-
herently hazardous. It is therefore recommended that adherence to the Occupational Health
and Safety Act and Regulations be enforced on all construction sites, and that subcontractors
especially are well managed and compliant.

2.4.8 Measuring performance of activities on critical path;

This is an item which unfortunately comes up far too often, as the work programme is in most
instances kept secret by the management team in an effort to push production and make up
time, instead of employees only sticking to programme. Unfortunately this more often than
not have the opposite effect, with employees taking longer than required, or focusing on the
wrong work, impacting the critical path, and putting the project in jeopardy. The researcher’s
recommendation is that project programmes be closely monitored by all management and su-
pervisory staff to ensure that critical path items are performed on time.

15
2.4.9 Improving the productivity of resources

This is a particularly difficult hurdle in the South African demographic, as there is a central
culture within the industry that an employee only comes to work to make money, which has a
serious impact on productivity, as employees realize that the longer they can make a task
stretch out, the longer they will be earning a paycheck. Several options have been tried that
the researcher is aware of, but no tangible solution is evident. The solution which seems to
have the highest impact is that of permanent employment. The downfall there is that should
the company not always have enough work, the company could be in for serious deficits.

2.4.10 Initiating accountability process

The tendency to not initiate accountability processes start from high up in the command
chain, with senior managers not being held accountable for their actions and their projects,
and boiling down to labor level, with the unwanted effect that employees do not fear account-
ability, as they know that accountability is not enforced within the industry.

The researcher would recommend that a formal stance be taken on accountability, new poli-
cies issued in this regard to the entire company workforce, and compliance monitored very
closely, with severe punishment in the case of contravention.

2.5 Concluding Statement

The South African Construction Industry is plagued by this culture of poor quality identified in
the research project, with these 10 items taking the lead in being the most critical factors to
project success. It is therefore of paramount importance that the industry develop strategies
to deal with these factors head-on.

Should the industry continue to perform in its current form, it is envisaged that construction
projects will become even fewer and further between, as construction costs will not be in line
with the costs available from clients to construct their projects, leading to longer lead times to
projects. It is therefore the responsibility of each section of the industry to get their house
back in order, and ensure that compliance by lower levels are enforced all the way from the
client down to the subcontractor’s subcontractors.

16
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APPENDICES

Appendix A. ORIGINAL NAME LIST


Appendix B. LIST OF 70 INDIVIDUALS CHOSEN AT RANDOM
Appendix C. COMPLETED QUESTIONNAIRES
Appendix D. CALCULATIONS

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