The relationship between the value chain and project success in the Malawian construction industry
- Authors: Kadangwe, Samuel Ronald
- Date: 2013
- Subjects: Construction industry -- Malawi , Industrial procurement -- Construction -- Malawi
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9715 , http://hdl.handle.net/10948/d1020865
- Description: The construction industry in Malawi plays a vital role in developing the infrastructure of the country that is in need of improvement. Thus, in order to improve the quality of infrastructure in Malawi, the construction industry has to perform better than the status quo. The construction industry is characterised by a complex value chain that comprises of clients, consultants, contractors, and material manufacturers, suppliers, financing institutions, knowledge organisations and regulatory authority. This research looks at the relationship between construction value and project success in the Malawian construction industry. A qualitative research method was used for compiling the primary data for the study. Twenty-nine (29) participants were interviewed. These participants represented clients, consultants, contractors and material suppliers. The findings reveal that value creation in Malawi is characterised by lack of harmonised standards and specifications, inconsistent project management practices, existence of non-value adding activities, corrupt practices, lack of a skilled labour force, and lack of commitment to best practices in H&S as well as environmental management. Further, logistical problems affect the supply of construction materials to the country; while an unfavourable economic environment makes pricing of materials a challenge in the country too. Poor communication and limited use of information technology (IT) is very common in the industry and project implementation is also affected by a poor road network, an intermittent power supply, and a lack of cooperation from other service providers. In terms of supply chain structures in use, the research revealed that the traditional procurement method that is based on the lowest bidder / price is the most dominant method in use and very few members of the construction industry are conversant with other procurement methods. The method is also the preferred procurement method used by public sector clients. The performance of the traditional procurement method largely depends on the competence of the project design and supervision team, the adequacy of the documentation, and the capacity of the contractor. However, in most cases the system has failed to perform due to the poor contract management skills of the supervising consultant and the lack of timely guidance from the public sector clients. The findings also revealed that most of the suppliers or subcontractors are engaged on project based relationships, and members of the industry are unwilling to engage in long terms relationships due to mistrust and greed among members of the industry, and also largely due to lack of proper frameworks that can support such relationships. It is therefore recommended that other procurement methods should be explored and the engagement of the lowest price bidders should be discontinued on small and medium scale projects. The criteria for upgrading contractors to higher categories should equally be revisited to eliminate incompetent contractors. The NCIC should take a leading role in harmonising the various standards and specifications in use in the country. Promotion of the usage IT services should be encouraged to facilitate faster information dissemination. Usage of risk management in construction and evaluation and monitoring of projects should be encouraged and benchmark best practices. Finally, the members of the industry should take up the responsibility to take leading entities in the industry to task, if fundamental changes are to take place in the industry.
- Full Text:
- Date Issued: 2013
- Authors: Kadangwe, Samuel Ronald
- Date: 2013
- Subjects: Construction industry -- Malawi , Industrial procurement -- Construction -- Malawi
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:9715 , http://hdl.handle.net/10948/d1020865
- Description: The construction industry in Malawi plays a vital role in developing the infrastructure of the country that is in need of improvement. Thus, in order to improve the quality of infrastructure in Malawi, the construction industry has to perform better than the status quo. The construction industry is characterised by a complex value chain that comprises of clients, consultants, contractors, and material manufacturers, suppliers, financing institutions, knowledge organisations and regulatory authority. This research looks at the relationship between construction value and project success in the Malawian construction industry. A qualitative research method was used for compiling the primary data for the study. Twenty-nine (29) participants were interviewed. These participants represented clients, consultants, contractors and material suppliers. The findings reveal that value creation in Malawi is characterised by lack of harmonised standards and specifications, inconsistent project management practices, existence of non-value adding activities, corrupt practices, lack of a skilled labour force, and lack of commitment to best practices in H&S as well as environmental management. Further, logistical problems affect the supply of construction materials to the country; while an unfavourable economic environment makes pricing of materials a challenge in the country too. Poor communication and limited use of information technology (IT) is very common in the industry and project implementation is also affected by a poor road network, an intermittent power supply, and a lack of cooperation from other service providers. In terms of supply chain structures in use, the research revealed that the traditional procurement method that is based on the lowest bidder / price is the most dominant method in use and very few members of the construction industry are conversant with other procurement methods. The method is also the preferred procurement method used by public sector clients. The performance of the traditional procurement method largely depends on the competence of the project design and supervision team, the adequacy of the documentation, and the capacity of the contractor. However, in most cases the system has failed to perform due to the poor contract management skills of the supervising consultant and the lack of timely guidance from the public sector clients. The findings also revealed that most of the suppliers or subcontractors are engaged on project based relationships, and members of the industry are unwilling to engage in long terms relationships due to mistrust and greed among members of the industry, and also largely due to lack of proper frameworks that can support such relationships. It is therefore recommended that other procurement methods should be explored and the engagement of the lowest price bidders should be discontinued on small and medium scale projects. The criteria for upgrading contractors to higher categories should equally be revisited to eliminate incompetent contractors. The NCIC should take a leading role in harmonising the various standards and specifications in use in the country. Promotion of the usage IT services should be encouraged to facilitate faster information dissemination. Usage of risk management in construction and evaluation and monitoring of projects should be encouraged and benchmark best practices. Finally, the members of the industry should take up the responsibility to take leading entities in the industry to task, if fundamental changes are to take place in the industry.
- Full Text:
- Date Issued: 2013
A linear model for valuating preferences of freshwater inflows into forty selected estuaries along the South African coastline
- Authors: Smith, Melnick Jurgen
- Subjects: Estuaries -- South Africa -- Eastern Cape , Mathematical statistics
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:10581 , http://hdl.handle.net/10948/d1020916
- Description: According to the National Water Act of 1998, an estuary is an enclosed body of water that is either periodically or permanently open to the ocean. Within an estuary, the seawater is diluted to a measurable degree, creating a unique aquatic environment for animals and plants. Estuaries are environmental and economic assets to the population. The health status of our local estuaries, however, is being compromized due to a steady decrease in the freshwater inflow and supply. Tides and climatic conditions do have an impact upon the dynamics of an estuary, but these factors remain relatively constant throughout each year. The freshwater inflow and supply, however, are highly variable and are directly influenced by human involvement. Upstream abstraction for industrial and domestic use, for example, could lead to mouth closure where the ocean meets the river. The National Water Act of 1998 was established to address the lack of research and predominant mismanagement of freshwater inflow into South Africa’s estuaries (Allanson and Baird, 1999). To ensure proper water resource management, different water allocation costs and benefits need to be compared and analyzed to secure an optimum solution (Mlangeni, 2007). Like many environmental services yielded to man, estuary services are not traded in any markets. Alternative markets are thus sought to allow the estimation of the values of such services. Among the available valuation techniques are the Contingent Valuation Method (CVM), Travel Cost Method (TCM) and Hedonic Pricing Method (HPM). The involved benefits of water allocations are predicted in this study by use of the CVM which elicits respondents’ willingness to pay (WTP) towards predetermined changes in freshwater inflow into estuaries. The CVM was applied throughout the Water Research Commission’s (WRC) Project K5/1413 from 2000 to 2008 (Hosking, 2010). Each individual study employed specialized surveys which ideally created a close correspondence between the answers provided by respondents to the supposed scenarios and their voluntary exchanges in markets should money actually have been handled (Mlangeni, 2007). Much criticism has been directed towards the CVM, but careful use and application of the method has been shown to produce significant and satisfactory results (Hosking, 2010). The primary aim of this study was to collectively analyze the collated data provided by the WRC and compare the results with the findings of previous studies. Each variable was analyzed separately in order to reveal any discrepancies between the respective findings. A supplementary objective of this study was to add to the body of knowledge pertaining to South Africa’s estuaries and guide management in the distribution of freshwater towards proficient levels (Du Preez and Hosking, 2010). The associated change in the cumulative consumer surplus with an increased freshwater supply into forty selected estuaries was therefore investigated. The subsequent benefits due to a superior freshwater supply are therefore reflected (Du Preez and Hosking, 2010). The data gathered by each of the individual researchers throughout their studies (supported by the WRC) were combined to form a single dataset including all recorded information supplied by the corresponding respondents. As the investigation progressed, improvements were made upon the questionnaires posed to the considered estuary populations. Consequently, some of the data in the combined dataset were “missing”, since previous studies did not include certain questions, while later studies omitted others. Data imputation was employed to create an imputed dataset, enabling the modeling of the public’s WTP through regression techniques. A linear model was utilized in this study, also incorporating interaction between the predictor variables. The double-log functional form was implemented to estimate the public’s WTP. The population’s total willingness to pay (TWTP) was further estimated by aggregation. A summary of the respective results is displayed in in Table 1.
- Full Text:
- Authors: Smith, Melnick Jurgen
- Subjects: Estuaries -- South Africa -- Eastern Cape , Mathematical statistics
- Language: English
- Type: Thesis , Masters , MSc
- Identifier: vital:10581 , http://hdl.handle.net/10948/d1020916
- Description: According to the National Water Act of 1998, an estuary is an enclosed body of water that is either periodically or permanently open to the ocean. Within an estuary, the seawater is diluted to a measurable degree, creating a unique aquatic environment for animals and plants. Estuaries are environmental and economic assets to the population. The health status of our local estuaries, however, is being compromized due to a steady decrease in the freshwater inflow and supply. Tides and climatic conditions do have an impact upon the dynamics of an estuary, but these factors remain relatively constant throughout each year. The freshwater inflow and supply, however, are highly variable and are directly influenced by human involvement. Upstream abstraction for industrial and domestic use, for example, could lead to mouth closure where the ocean meets the river. The National Water Act of 1998 was established to address the lack of research and predominant mismanagement of freshwater inflow into South Africa’s estuaries (Allanson and Baird, 1999). To ensure proper water resource management, different water allocation costs and benefits need to be compared and analyzed to secure an optimum solution (Mlangeni, 2007). Like many environmental services yielded to man, estuary services are not traded in any markets. Alternative markets are thus sought to allow the estimation of the values of such services. Among the available valuation techniques are the Contingent Valuation Method (CVM), Travel Cost Method (TCM) and Hedonic Pricing Method (HPM). The involved benefits of water allocations are predicted in this study by use of the CVM which elicits respondents’ willingness to pay (WTP) towards predetermined changes in freshwater inflow into estuaries. The CVM was applied throughout the Water Research Commission’s (WRC) Project K5/1413 from 2000 to 2008 (Hosking, 2010). Each individual study employed specialized surveys which ideally created a close correspondence between the answers provided by respondents to the supposed scenarios and their voluntary exchanges in markets should money actually have been handled (Mlangeni, 2007). Much criticism has been directed towards the CVM, but careful use and application of the method has been shown to produce significant and satisfactory results (Hosking, 2010). The primary aim of this study was to collectively analyze the collated data provided by the WRC and compare the results with the findings of previous studies. Each variable was analyzed separately in order to reveal any discrepancies between the respective findings. A supplementary objective of this study was to add to the body of knowledge pertaining to South Africa’s estuaries and guide management in the distribution of freshwater towards proficient levels (Du Preez and Hosking, 2010). The associated change in the cumulative consumer surplus with an increased freshwater supply into forty selected estuaries was therefore investigated. The subsequent benefits due to a superior freshwater supply are therefore reflected (Du Preez and Hosking, 2010). The data gathered by each of the individual researchers throughout their studies (supported by the WRC) were combined to form a single dataset including all recorded information supplied by the corresponding respondents. As the investigation progressed, improvements were made upon the questionnaires posed to the considered estuary populations. Consequently, some of the data in the combined dataset were “missing”, since previous studies did not include certain questions, while later studies omitted others. Data imputation was employed to create an imputed dataset, enabling the modeling of the public’s WTP through regression techniques. A linear model was utilized in this study, also incorporating interaction between the predictor variables. The double-log functional form was implemented to estimate the public’s WTP. The population’s total willingness to pay (TWTP) was further estimated by aggregation. A summary of the respective results is displayed in in Table 1.
- Full Text:
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