FACTORS AFFECTING CONSTRUCTION PROJECTS PERFORMANCE: THE CASE OF SAVE THE CHILDREN

Abstract

Construction industry has complexity in its nature because it involves large number of parties as clients, contractors, consultants and others. Construction projects suffer from many problems and complex issues in performance such as cost, time, scope and quality. The same is true for save the children construction projects. This thesis tries to identify and evaluate the main factors affecting the performance of construction projects in the organization. A questionnaire survey was conducted using 35 identified factors which are categorized into 7 groups. 117 Questionnaires were distributed, and 104 questionnaires were returned: 18 (100%) from owners and 86 (88.9%) from contractors. The results were analyzed using Relative Importance Index (RII) to determine owners and contractors’ perceptions toward the identified performance influencing factors in construction projects. Accordingly, the top most important factors agreed by both parties were: Completion period given for the contract, unavailability of Skillful workers, insufficient supply of materials, escalation of material prices, political environment, physical environment, delay of progress payment to contractors, planning effort, technical skill of the project staffs and project leaders early and continuous involvement in the project. Multiple linear regression analysis was also conducted to see independent variables (the project characteristics related factors, labor and material related factors, contractual relationship, project procedures, external environment, clients’ related factors and contractors’ related factors) relation on dependent variable (performance of construction project). The study found that independent variables showed significant relation with the dependent variable and the independent variables explain 83.8% of variance of the dependent variable performance of construction projects in save the children. The results of the regression analysis also showed, except for labor and material related factors and contractual relationship, the factors influence the construction performance positively.