Abstract
M.Ing. (Engineering Management)
Small construction companies in Gauteng, South Africa, have experienced many obstacles in their attempt to acquire and complete construction projects. The general failure rates of construction companies in South Africa, Gauteng is historically high. This dissertation focuses on investigating the root cause of failure of construction companies in South Africa, specifically Gauteng Province. There are numerous risks involved when managing a construction company and mismanagement of the risks associated with the construction industry often leads to project failure.
The study commences with an introduction that describes the problem, the significance of the study, scope as well as limitations. The study focuses on the contractors’ experiences when overcoming financial, managerial and political barriers. Past studies on similar topics will be investigated so comparisons and similarities can be drawn. The study focuses on past studies conducted on similar topics internationally. Existing relevant literature is examined in order to investigate contractor development programs and the best local and international practices that have resulted in the success of construction companies.
The research proposes an analysis of the construction industry focusing on a group of contractors involved in a contactor development program. The participants were subjected to a one-on-one interview as well as the completion of a detailed questionnaire. All participants involved were part of the First National Bank Incubator program. This questionnaire focuses on establishing the lack of financial and management skills, lack of proper training, deficiency of entrepreneurial skills, absence of resources, shortage of technical skills, lack of contractual and managerial skills and late payment receipts - to name a few. The results gathered are aligned to similar problems experienced by an international audience. The results are benchmarked against past similar studies. The analysis includes specific actions from international best practices that can be implemented in South Africa. Furthermore, the study investigates contractor development programs and provides recommendations to improve the implementation and success rate of governmental and private contractor development programs.
Finding a solution to construction companies avoiding project failure, bankruptcy and developing properly via the proper use of contractor development programs is of paramount importance and...