Construction company joint ventures in South Africa

Sisilana, Owethu

Title: Construction company joint ventures in South Africa
Creator: Sisilana, Owethu
Subject: Construction industry -- South Africa
Subject: Joint ventures Strategic alliances (Business) Project management
Date Issued: 2018
Date: 2018
Type: Thesis
Type: Masters
Type: MSc
Identifier: http://hdl.handle.net/10948/35554
Identifier: vital:33756
Description: In the construction industry, construction joint ventures (CJVs) have become one of the major organisational forms utilised in large-scale projects. However, because of the complexity of CJVs, the management of CJVs is much more difficult than that of usual projects undertaken by a single construction firm. In South Africa the existence of a clear and effective strategy for the successful transformation of organisational culture in a CJV is not clear. Similarly, poorly organised administrative structures in a CJV can also be a barrier to organisational performance. In South Africa there seems to be no evidence of a common understanding on the CJV formation process. According to CIDB (2004) there is no standard CJV agreement document. Therefore, a need arises to establish guidelines on the formation of a CJV agreement. Secondly, there is a need to establish strategies for the successful transformation of organisational culture in CJV. The research obtains an inside view with contractors who have participated in CJV’s, therefore, utilising the qualitative research method. The choice of data collection method was semi-structured one-on-one face to face interviews. In deriving the findings of the research, the ATLAS.ti software was used throughout the research process to manage both the secondary and primary data. The main factors which cause major problems in CJV's is the preliminary agreement, the partner selection and cultural differences. There is no evidence of a collective understanding among CJV partners regarding the successful formation processes of a CJV. The concept that the industry needs a standardised CJV agreement has been welcomed by the participants, the existence of a common CJV agreement would certainly resolve many problems in the way things are done currently including the implementation of joint venture projects. There is consensus between all participants that there is no standard CJV agreement in use in the South African construction industry and exploring a common approach is an idea that is viewed reasonable and to be one of the practical solutions to the problems in the industry. There are several limitations in this study. First, the sample included emerging and established contractors who are currently registered with the CIDB under Contractor Development Program only. While the sample size is relatively small, the researcher was cautious when interpreting the results. Secondly the targeted population for this research was selected using a sample of convenience method as opposed to a random sample, then the results of the study cannot be generally applied to a larger population. Thirdly, an obvious weakness of the research is the methodological difficulties related to qualitative research which relies on the inferences that are made by the researcher based on their own understanding of the data collected. It is therefore crucial that the data gathered is credible and that the findings represent the truth and actual sentiments as they appear from the data collection process. The research is of importance to managers and supervisors of construction companies of all sizes. The findings of this study will assist in ensuring that CJV are efficiently managed irrespective of the cultural differences.
Format: xv, 88 leaves
Format: pdf
Publisher: Nelson Mandela University
Publisher: Faculty of Faculty of Engineering, the Built Environment and Information Technology
Language: English
Rights: Nelson Mandela University

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