Abstract
The global expansion of construction joint ventures (JVs) signifies a need to create lasting solutions encountered in the construction sector. Construction projects have become complex mainly owing to their magnitude and design. Through JVs, stakeholders seek to address issues of complexity, technical knowledge, funding, and transfer of technology, amongst others. Through JV structures information is processed and knowledge is shared amongst partners. Thus through shared resources and knowledge, stakeholders strive to find lasting solutions in project delivery. The study evaluates JV partnering practices in the South African building and infrastructure industry. The study focused on the risks associated with construction projects executed by JVs; examined the barriers to JV formation encountered by the building and infrastructure industry in South Africa; evaluated factors that hinder the performance of projects handled by the JV alliance; assessed critical factors of the JV construction project success. The primary data was collected using questionnaires that were sent to South Africa construction industry professionals while secondary data was based on the review of the published literature. The study revealed that the main risks associated with projects executed by JVs are improper planning and budgeting, disagreements on contract conditions, distrust amongst employees, unpredicted technical problems, partners’ financial problems, over-interference of partners’ parent company, industrial disputes, clients’ improper intervention, and cultural differences. The study showed that barriers to JV formation are disputes and conflicts, political instability, economic instability, ownership and control, business goals, unclear roles of partners, management style, trust, and unethical practices. The study further revealed that the reasons for the failure of JV projects are uncertain business climate, inequitable risk sharing, non-profitability, ineffective cost control, ineffective management capability, non-effective management strategic control, non-effective management of daily operational activities, increasing competition, the autonomy of joint venture and knowledge transfer failure. Finally,the study showed that the critical factors of success are effective monitoring and control, financial stability, commitment, conflict resolution, effective human resource management, effective integration, previous similar experience, effective communication system, management synchronicity, and stringent criteria for partner selection. The success of projects handled by JV firms largely relies on internal factors...
M.Tech. (Construction Management)