Cause of Project Failure in Construction Industry - Research Proposal Example

Research proposal Title: Cause of Project failure in construction industry Name Institution Table of Contents 1.0Introduction 3 Poor Productivity In Housing Construction 3 1.3 Problem statement 4 1.4 Justification and significance of research 4 1.6 Research questions 5 2.0 Literature Review 6 2.1 Frequent design changes and poor design capacity 6 2.2 Poor knowledge and experience in project management 6 2.3 Poor performance of contractors and incompetence of designers 7 2.4 Workflow variability 7 2.5 Poor estimation of project cost and time 8 (Alzebdeh ET AL 2015). 9 2.6 Poor planning process and project planning 9 2.7 Poor project financing 10 3.0 Methodology 10 3.1 Research Design 11 3.1.1 Interprevitism research paradigm 11 3.2 Research Method 11 3.1.1 Qualitative research method 11 3.1.2 Justification for using the qualitative research approach 12 3.1.3 Semi-structured interviews 13 3.1.4 Sampling method 14 References 16 1.0 Introduction Poor Productivity In Housing Construction The construction industry plays an important role in the growth of a country, both economically and socially. Construction provides the necessary basic infrastructure such as schools, roads, and other facilities. It is, therefore, important for construction projects to meet the estimates of time, budget and quality in order to be successful. There have been many project failures in construction departments. Project failure is the inability to meet the objectives and goals of a project. If a project fails to meet the set time, budget and quality of work, the project is likely to fail on account of many issues. There are various causes of project failure, and each failed project has different failure issues (Onwuegbuzie et al. 2012). However, there are some issues common to most failed projects. These may include control management, risk management and communication issues. The objectives of a construction project are linked to the overall goals and strategy of the organization, including the owner of the construction company, the project manager, and the contractors. Constructing and managing massive projects can be difficult, as they are complicated and often quite dynamic. The aim of Public project management responsibility is to ensure that a project is a success (Kivrak &Arslan 2008). Research background Since the construction industry is composed of divergent contractors, buildings and consultants’ materials and product producers. The industry is largely dominated by SME’s worth relatively small number of large companies. It also involves a wide variety of different activities and professional and trade skills that are required. Due to a large number of players and professionals involves, the industry is faced with implications of perception in success and failure criteria and results to need to develop a method of project performance measurement that is based on an approach to project success. The performance in project management is experiencing some failures. This is contributing negatively to the economy as people are losing their employment. The quality of the project that has been finished is also under question (Joslin & Müller 2016. It is important to have ultimate comprehensive client involvement in public construction projects that has been proposed as the main cause of the myriad problems. Slow decision-making process within the construction projects due to high bureaucratic nature of registration process. Therefore, client involvement during the formative and early design stages of the projects is a critical factor that should be taken into account if a project is to be delivered on time, within the budget and to the desired quality (Kivrak &Arslan 2008). The construction industry has turned to be a very lucrative and organized business which is estimated to be $3 trillion. However, the failures in projects continue to increase. Recently, Samsung had to cancel the production of Samsung note 7. Toyota Motor Vehicle Company recalled about 1.4 million cars that had airbag defects (Isidore 201). The ever increasing engineering mistakes and construction project failures indicate that the procedures used not organised. There have been few studies on what causes the increase in the project failure, which makes the empirical studies to be low (Joslin & Müller 2016, 1.3 Problem statement For a country to achieve economic development, it requires the infrastructure such as roads, railway, seaports and buildings ((Onwuegbuzie et al. 2012). This calls for the relevant authorities to ensure they minimize project failures to ensure that they will have a better workflow. Project failures tend to chock development as it takes more time to finish a single project While the factors that cause failure of construction projects have studied empirically studies in other countries including Vietnam, Australia needs special attention, as there is a paucity of research in the area in spite of the growth of the industry. Indeed, a study by the Business Council of Australia (2011) found that in 2009, 27.6 percent of the projects studied in Australia had experienced cost overruns. In 2013, an industry analysis by the Engineers Australia confirmed that engineering construction in the country was at record levels, despite a growing number of project failures. In 2012 alone, engineering construction in Australia was worth $58.16 billion, marking a significant rise from 2010 by some 17%. Still, in the same year, there was a significant amount of work valued at $163.96 billion yet to be completed because of project delays and other failures. However, the industry is of great economic significance (Engineers Australia 2013). In 2009, for instance, it employed some 9.1% of the total national workforce, which made it the fourth largest industry that contributed to Australia’s gross domestic product (GDP) (Gutierrez et al. 2010). 1.4 Justification and significance of research The rate of infrastructure development is increasing, this is due to the increase in population, economic activities and the need to conduct businesses. Schools and other higher learning institutions are making certain that they invest in engineering projects and studies such as the mechanical engineering, electrical engineering, software engineering and in architecture (Andriany&Djumahir 2013). This continues to facilitate project management and creation of the better project. However, there are still a disturbing number of project failures despite high knowledge, skills, expertise and technology within the field. Therefore, it is significant to explore the major causes of failures of the project within the construction industry. The failures can be attributed to the lack of empirical knowledge on how to deliver better and successful project devoid any failure. Dornyei (2007) comments thatqualitative research seeks to improve an understanding of social phenomena in their natural settings by interpreting meanings and experiences of the research respondents. As a result, construction firms are expected to use the study findings of the proposed study as a reference to mitigate project failures in the industry and to ensure that projects are sustainable. The information that is discussed within this study will be of use to the construction industry since it will offer alternative suggestions on selecting project managers and teams for construction projects. Through identification of major potential construction failures, project managers will be able to avoid such future failure by making alternative countermeasures. Alternatively, this study will also provide informative data on projects and their weak points to both project managers and project management students. Previous studies attempted to establish a link between project management and project failure (Joslin & Müller 2016; Doloi 2013). Therefore, this study will try to demystify the link. The research findings will also assist the government to come up with policies that guide construction projects to minimise these failures (Alotaibi &Mafimisebi 2016). 1.6 Research questions The main question What are the common causes of failure in large construction projects? Sub-Questions What is the responsibility of the project manager in the failure of construction projects? What are the general economic conditions that result in failure of construction projects? why do contractors fail to show great performance in large construction projects? 2.0 Literature Review According to Kivrak and Arslan (2008), the emergence of new business technologies and methodologies imply that the construction industry is constantly changing. Given that construction is a risky industry, the likelihood of project failures always exists for any construction firm. To this end, construction firms have to take account of critical factors that can help prevent project failures in the industry. Several empirical studies have identified the cause of project failures as including frequent design changes and poor design capacity, poor knowledge and experience in project management, the poor performance of contractors and incompetent designers. Workflow variability, poor estimation, poor planning process and project planning, lack of financial capacity of the client (owner) and lastly, delays in payments. 2.1 Frequent design changes and poor design capacity In a study by Sha'ar et al. (2016), the research discussed that inflation potentially causes material costs to increase. In their study of design-construction interface problems in major building construction projects. They also identified frequent last minute design changes as a major cause of failure. It was argued that the frequency, unplanned and unnecessary changes. These changes tend to happen in a situation when a scope Creek affects the project. Connectively, Arashpour and Arashpour (2015) argues that to ensure effective and successful construction project, it is important to provide the management with a flexible and accommodative period which will be effective for the implementation of the project. 2.2 Poor knowledge and experience in project management Poor knowledge and experience in project management have also been identified as a cause of project failure. As Nguyen and Chileshe (2013) discuss, project managers are instrumental decision makers in the construction industry and within any organisation. However, lack of experience in project management, including improper planning, poor project structure, and insufficient methods stood in the way of successful projects. They also argued that Managers who lack the necessary experience may be given more responsibilities when provided with a project to carry out. Such person has a high likelihood of not delivering on their promise. Here, the contractor of the project is identified as the cause of the problem since they place huge responsibilities on the hands of a manager who does not have any experience of skills to undertake the project. Similar findings were established by Kivrak and Aslan (2008). In their review of the literature, the researchers explored the factors contributing to construction project failure in Saudi Arabia and identified some of these factors as poor project management skills, managerial skills and poor judgment. Nguyen and Chileshe (2013) further elaborated that project managers face challenging situations, specifically when they are undertaking their initial contract. They explained that one should as a result get a certification of their job description and then clarify their priorities, expectations, and their goals with the person providing the construction contract. In which case, when an individual with poor project management skills and experience is assigned to take the role of a project manager, it would lead to project failure. Doloi (2013) agrees that managers who lack adequate project management experience are likely to mess up with a project, leading to project failure. Connectively, he also advised that project managers would have an added capacity to prevent project failures if they communicated and collaborated with the entire project team. Indeed, maximal collaboration within the project team, as well as with the client is likely to facilitate project success, as they will all have a common target plan. 2.3 Poor performance of contractors and incompetence of designers According to Adnan et al (2014), among the causes of failures that a project has to contend with the result of the incompetence of the contractors. Additionally, he went on to explain that this might be because of poor motivation by the management to the workers, lack of or inadequate directives to contractors and lack of trust among workers at the construction project site. In their research, Adnan et al. (2014) commented that leadership is one of the most important aspects in order to achieve the success of a project. Adeyemi and Masalila (2016) shared a similar view when they observed that contractors are crucial components of any construction projects. In their view, while the manager may control the entire project, without the contractors, they would still have less or no workload. Therefore, the contractors need periodic motivation and appraisal for project managers. Such motivation generates trust since contractors tend to appreciate their willingness and work making them work harder within the planned time which results in performance improvement. (Adeyemi&Masalila 2016). 2.4 Workflow variability A study by Arashpour (2015) identified poor workflow variability as a major cause of construction project failure. The researcher studied the workflow disparity and the influence on performance and productivity within the construction of multi-storey buildings skyscraper. From the study, the researcher realised that fluctuating work quantities tend to determine the project's outcome. In Arashpour’s (2015) views, when the workflow is inconsistent, the performance of contractors is likely to be interfered with negatively. This is a potential cause of failure of a construction project. In which case, the work schedules need to be well planned promptly. He suggested that construction projects should have a project control system, while the control section needs to have specialised staff with expertise in the field of operations management. According to Arashpour and Arashpour (2005) claims that a project is projected to fail in a situation where managers will fail to influence and interact with the teams both the employers, and the employees in a conducive manner. Ali (2010), claim that managers are obligated to deliver the projects on time within the budget and without any foreseen and unforeseen constraints and meet the client’s demands. Project failures within the engineering management can be prevented through proper planning regarding funds and timeframe. 2.5 Poor estimation of project cost and time Poor estimation of project cost and time is also one of the significance factors which contribute to project failures (NaeemEjaz et al. 2013). In addition, the writers established that the success that is derived from the construction project mainly depends on the quality of projects control systems and the skills that the assigned team has. Managers should make certain that they make plans and budgets which are used for future project planning. Lack of planning can result to project failure due to poor schedule management, quality and cost management. Here, capital, funds and time in availability tend to contribute to contribute to construction failures. Construction projects spend a huge amount of money, in a situation where there is no enough funds then the projects are headed to failure (Alzebdeh et al. 2015). Failure of the project should call for an evaluation from the project managers to establish and review their plan hence identifies the shortcomings of the project and what resulted to its failure. Figure 1: An illustration of causes of cost overruns in large construction projects. (Alzebdeh ET AL 2015). 2.6 Poor planning process and project planning A recent study by Enshassi and Mosa (2015) found that a major cause of project failure in construction projects is poor planning. Poor planning can be the result of poor communication channels between the project team and the project manager. Failure to plan causes disorganisation. Some project managers may opt to dive into the execution of work, without first thinking clearly about it. A related study by Sears et al. (2015) identified poor project planning to be contributing to underutilization of some contractors when some are overloaded. The resulting performance is described as that of low quality more so in the critical areas of the project. Enshassi and Mosa (2015) went on to suggest that it is the responsibility of the project manager to provide an effective plan. Planning and construction scheduling is a major management function for successful project implementation. It is important to make plans early enough as a method of making certain that the project is aligned to result in best outcomes. Enough time should be allocated for finishing the activities since working in excessive tight schedules can result in failures in projects. Better coordination and interaction between the finance office personnel should be maintained throughout the process of the construction project. Through the project breakdown of the master plan, manageable small projects should be taken while results to overall comprehensive ones (Enshassi and Mosa 2015). 2.7 Poor project financing Larsen et al (2015), in their study of project failures, the major of construction project failures as the poor project financing by the involved stakeholders. Kivrak and Aslan (2008) agree with the findings. In their view, the main causes of project failure include insufficient project capital, deficient billing procedures, increased scope of the project and the use of deficient accounting systems (Kivrak and Aslan 2008). Larsen further argues that the fund's related issues such as the delay in payments are among the critical causes of project failures. In some occasions when the project is already underway, the construction cost may hike up due to economic factors such as inflation or change in monetary market. Estimations of materials, prices may also be poorly calculated which may cause an interruption of cash flow mechanism. Such monetary disruptions may cause delays in payments where contractors may not have the required resources to carry on work. Inadequate finances may result to a shortage in equipment, inadequate funds to pay the skilled engineers or surveyors. The act of clients delaying payments to contractors may cause the contractors to deliver poor performance where the contractor may have less of no ability to finance the next process of project implementation (Larsen et al. 2015). Here, the researcher concluded that the finance inadequacy could be solved by ensuring that the clients make and fulfil their duties to surveyors, projects managers, contractors and other related stakeholders that were involved in the project. The financial inadequacy tends to impair the stakeholders’ ability to perform and finance to the next stages. Through merging of the available financial resources, this can be instrumental through the use of progressive payments plans. The clients should ensure that they all fulfil their financial obligations of paying to the project managers, contractors. When project managers have the required adequate cash flow, it enables then to hire the most skilled and experienced personnel who offer advice, expertise on the allocation of the financial resources (Larsen et al. 2015). 3.0 Methodology The study seeks to explore the causes of project failure critically. As the researcher anticipates qualitative data, andInterpretivism research paradigm, and qualitative research method is proposed for the study. 3.1 Research Design 3.1.1 Interprevitism research paradigm According to Rowland (2005), qualitative research may be interpretive or positive, with the choice dependent on the philosophical assumptions of the researcher. Rowland (2005) describes a positivist approach as a research method that applies deductive reasoning. On the other hand, an interpretivist approach views meanings as products of human construction depending on their interpretation of the world. Due to the nature of the proposed research objective, interpretivist approach appears to be more suitable for carrying out the study, as the researcher seeks to make his analysis by anchoring in data that would be drawn from the personal interpretations that participants provide. An Interpretivist paradigm proposes that knowledge is a product of social construction rather than being objectively determined. Using the Interpretivist paradigm, data will be extracted from the participants’ experiences, perspectives, opinions, or practices (Klenke 2008). Afterwards, data would be interpreted before being analysed and applied to answer the proposed research questions. Overall, an interpretivist research paradigm will be applied in the proposed study for three main reasons. However, its key limitation is that it disregards scientific processes of data verification. What this means is that the collected data that would be generated using an interpretivist research paradigm may not be generalised, given that data would be susceptible to participants’ viewpoints or bias. 3.2 Research Method 3.1.1 Qualitative research method A qualitative research design is essentially a form of scientific research that employees are predetermined steps to investigate and construe research issues in-depth (Gilbert 2008). According to Esch and Esch (2013), qualitative research design applies a multi-method focus that consists of interpretive methods of exploring research issues of interest. Therefore, qualitative research design will be used mainly because it provides a comprehensive study as it serves to provide an appropriate framework. The selected research approach uses interpretive techniques capable of decoding, describing, and interpreting research issues to draw out meanings (Andriany&Djumahir 2013). For the proposed research study, it would then provide better and deeper experiences, opinions, perspectives and exploration. It also provides information on actions that revolve around the causes of construction project failures. The study will also investigate the intangible aspects of an empirical study which includes culture, beliefs and behaviour. According to Mack (2010), qualitative research approach is used to investigate the humane side of thinking into the research issues that provide textual description of the participant’s beliefs, behaviours, experiences and culture 3.1.2 Justification for using the qualitative research approach Since the study seeks to investigate the causes of construction project failures, the research question is examining in nature, it implies that the participants’ beliefs, experiences, and attitudes will need to be explored. The investigative nature of the projected research justifies the use of qualitative research. Bazeley (2004) explained that the research approach with the potential to discover and address a complex interplay of behaviours and attitudes of individuals and the phenomenon surrounding their behaviours is qualitative research approach. According to Mack (2010), semi-structured interviews can assist gain deeper knowledge of participant’s entrenched perceptions, while at the same time presenting a clearer picture of a research situation holistically. Therefore, three key factors justify the choice of qualitative approach. These include the researchers’ theoretical lens, research problem, and degree of uncertainty surrounding a research phenomenon (Esch&Esch 2013). A graphic representation of qualitative research methodology is indicated below. Figure 2: Proposed research methodology (Willig 2008). 3.1.3 Semi-structured interviews Harris and Brown (2010) explain that semi-structured interviews enable an investigator to engage in a conversation in order to acquire information regarding a research phenomenon. For this present study, the research will carry out interviews with 10 managers of constructions firms in Australia. Interviews will be on a face-to-face basis. Each interview will take approximately 50 minutes. A set of pre-set questions will guide the interviewing session. Still, depending on the participants’ responses, additional questions would be asked by the research while seeking to obtain more in-depth understanding or clarity of some issues. The researcher will use a tape recorder to record data from each interview. The focus of the interview sessions will be on the varied cases of construction project failures. The reason for selecting to use semi-structured interviews in the proposed study is mainly that they provide a suitable means to gathering in-depth information. Compared to questionnaires, semi-structured interviews provide a research with a platform for seeking for clarifications on certain responses that a participant provide. Additionally, it enabled the researcher to draw out more accurate information, as the interviewer can ask for more explanations or clarifications in situations where the researchers’ response may not be clear. While a set of predetermined questions guide semi-structured interviews, they tend to be flexible as they permit an investigator to make additional inquires or seek for supplementary answers (Onwuegbuzie et al. 2012). However, some limitations associated with semi-structured interviews are that they tend to be time-consuming and if uncontrolled, may be intruding into participants’ privacy. Additionally, data collected from semi-structured interviews are essentially subjective and, therefore, vulnerable to participants’ biases, as they are based on their views and opinions (Onwuegbuzie et al. 2012). 3.1.4 Sampling method Before the actual data collection process, a sample of participants would need to be selected. The sampling process would involve selecting a small sample of managers of construction firms in Australia, who will serve as a representative sample of the total population. Heyvaert et al. (2013) explain that sampling is significant as it assists to control the use of extraneous resources, including time and manpower resource. The middle managers will be selected through a non-random sampling method called convenience sampling, which entails selecting a sample population based on their accessibility, or how easy they are to get and readiness to respond to the researcher. Using a non-random sampling method, six managers from construction firms will be invited to participate in the study. To ensure that the sample selected is a representative of the entire population of construction firm manager, the researcher will ensure that the participants selected are diverse in the areas of gender, age, and level of experience. It will mainly be used, as it is cost-effective, easy to execute, as well as less time-consuming . The data collected in the course of this study will be analysed using Miles’ and Huberman’s (1994) framework for data analysis. The framework proposes four key steps to extract their contextual meanings. The steps comprise of data reduction, data display, drawing conclusion and verification of findings. Conclusion Based on this research paper it can be concluded that a lot of project failures are caused by poor risk management, cash flow difficulties, poor communication administration and lack of teamwork, among others. Having identified the causes of failure in large construction projects, the project manager, the owner and contractors should identify strategies to deal with unexpected risks. Communication management is a crucial facilitator for any project success. All stakeholders related to the construction project should identify a clear channel of communication. The project managers should also come up with risk management frameworks to guide the contractors, clients and all stakeholders in case of any unexpected risk. This objective will be achieved by having proper planning covering all financial and communication issues. References Abbasi, N., Wajid, I., Iqbal, Z. & Zafar, F. 2014‘Project Failure Case Studies an Suggestion’International Journal of Computer Applications, 86(6). Adeyemi, A.Y. &Masalila, K. 2016,‘Delay Factors and Time-Cost Performance o Construction Projects in Gaborone City Council, Botswana’, Journal for th Advancement of Performance Information & Value, 8(1). 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