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Coleman, Emmanuel; Nooni, Isaac Kwesi; Fianko, Samuel Korenteng; Dadzie, Linka; Neequaye, Ebenezer Nickson; Owusu-Agyemang, Jasmine; Ansa-Asare, Edna Obuo
2020 Journal of Financial Management of Property and Construction
doi: 10.1108/JFMPC-08-2018-0046
PurposeThis study aims to investigate the attainment of quality in Government of Ghana’s (GoG) infrastructural projects through effective contract management and especially, relating to qualification, competence and experience of supply chain stakeholders.Design/methodology/approachA survey questionnaire and field observations were used to collect primary data from staff of the education ministry and construction professionals. Documentary analyses of contract documents were also undertaken.FindingsThe results show that executing agencies’ failure to apply appropriate contract management processes was linked to the gap between stakeholders’ knowledge and actual practice. This was confirmed by Spearman’s rho tests of correlation between overall mean ranks given by professionals and non-professionals, which indicated strong agreement between those groups. Factors such as contractors’ engagement of unqualified supervisory staff, lack of proper projects monitoring and evaluation by executing agencies mainly contribute to the poor quality of work.Research limitations/implicationsInvestigations were limited to the Funds and Procurement Management Unit of the Ministry of Education, Metropolitan, Municipal and District Assemblies and local contractors. Nonetheless, the methodology used could be used in future studies to analyse the socio-economic implications on the quality of education infrastructure.Practical implicationsConstruction is booming in Ghana but the capacity to improve the work quality through effective contract management is limited. However, with the effort of stakeholder and statutory bodies’ support in capacity building initiatives, GoG projects could offer some novel solutions to improve quality of work.Social implicationsConstruction industry professionals and students’ knowledge and perception on construction industry and contract management is significantly improved.Originality/valueThis study provides information on respondents’ knowledge on contract management process, which, if not properly understood, can lead to poor quality of work and loss of money.
2020 Journal of Financial Management of Property and Construction
doi: 10.1108/JFMPC-08-2019-0067
PurposeThe study aims to find if family-owned construction and real estate firms in India are more profitable compared to non-family-owned construction and real estate firms. The study also examines if family ownership and institutional ownership are drivers of the firm profitability.Design/methodology/approachThe study uses data of 199 construction and real estate firms listed on the National Stock Exchange (NSE), India. The data pertains to a period of 13 years (2006-2018). The family firm is defined on the basis on ownership criteria, and the sample is divided into two groups, namely, family firms and non-family firms. The data is analyzed using a two-sample t-test assuming unequal variance and Prais–Winsten panel regression using correlated panels with corrected standard errors (PCSEs) procedure.FindingsThe findings suggest that family-owned construction and real estate firms are slightly more profitable compared to non-family-owned construction and real estate firms; however, family firms command lesser valuation in the market. The reason for this lower valuation is the mismatch between family holding and institutional holding. A family firm’s profitability is primarily driven by institutional holding that acts as mitigation against the agency conflict.Originality/valueThe paper is the first attempt to analyze the profitability of construction and real estate family firms, and compare it with non-family-owned construction and real estate firms.
Ikuabe, Matthew; Oke, Ayodeji Emmanuel; Aigbavboa, Clinton
2020 Journal of Financial Management of Property and Construction
doi: 10.1108/JFMPC-04-2019-0040
PurposeThere is a growing concern of the non-balance of the final output of construction works in comparison the financial resources invested with during the course of construction projects. One propelling factor to this is the opportunistic disposition often sought out by construction contractors. This study aims to investigate the relationship between construction contractors’ opportunism and construction project transaction costs from the viewpoint of construction professionals.Design/methodology/approachQuestionnaire survey was deployed in eliciting responses from construction professionals. A total of 337 questionnaires were distributed and 264 were retrieved and deemed fit for analysis. Methods of data analysis used for the study are Mean Item Score, Kruskal–Wallis H-test, Student Newman Kauls Post Hoc Test, Factor Analysis, Spearman Rank Correlation and Regression Analysis.FindingsThe study showed that the most-ranked factor influencing contractors’ opportunism that affects transaction cost is “Unclear scope of work”. Revealed from the study is the differing view of construction professionals of the effect of contractors’ opportunism on transaction costs. Equally revealed through Spearman correlation analysis is the potent effect that contractors’ opportunism has on transaction costs. Likewise, the study established that there is a discovered difference among construction professionals’ perceived effect of contractors’ opportunism on construction transaction costs.Originality/valueThe study establishes the nexus between construction contractors’ opportunistic disposition and construction transaction costs, which are shown to be highly correlated. The study went further to recommend that efforts should be made to ensure that issues like contract documentation should be well and appropriately carried out; roles and responsibilities of stakeholders should be well defined so as to fully keep all parties to a contract abreast with the expectations of their duties in relation to the project objectives.
Perera, B.A.K.S.; Samarakkody, Aravindi Lavanya; Nandasena, Shyamani Ruwanthika
2020 Journal of Financial Management of Property and Construction
doi: 10.1108/JFMPC-04-2019-0038
PurposeThe financial and economic risks associated with high-rise building projects are many. They make project stakeholders to undergo financial difficulties. However, very few past studies have discussed the management of these risks. Thus, the purpose of this paper is to provide a guideline for the effective management of these financial and economic risks associated with high-rise apartment building projects in Sri Lanka.Design/methodology/approachThe study adopted the mixed research approach. A literature review and semi-structured interviews were used to identify the financial/economic risk factors of high-rise apartment building projects and their risk response measures. The data obtained were used for a questionnaire survey, and the findings were analysed using the mean score method. They were validated using pattern matching. The risk response measures that were identified were ranked according to their effectiveness.FindingsThe findings revealed that “financial problems arising from errors in estimating” is the most significant financial and economic risk factor faced by the property developers involved in high-rise apartment building projects, while “poor contract management” is the most significant financial and economic risk factor faced by the contractors of these projects.Originality/valueThe study recommends a guideline to manage, using effective risk response measures, the financial and economic risk factors that are significant in high-rise apartment building projects.
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