Project performance in financial distress economy in the Ghanaian construction industry
Date
2021-07-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
The construction industry is of much relevance to every nation’s development by
delivering products that offers the basis for industrial production and all activities carried
out by individuals, the public, cooperate groups, organizations and others. Also, in terms
of economic development, the industry employs lots of individuals when carrying out its
operations. However, there have been a lot of concerns raised on the topic of project
performance assessment and many countries from different economy has come to
appreciate the relevance of improving project performance in their construction industry.
Nevertheless, in financial distress economy regardless of a firm’s nature or size presents
substantial dangers to its projects performance. The financial strength of the construction
industry is a critical necessity for stability in the economy and development. As a result,
the appraisal of financial conditions of project is an essential objective for various project
participants. The cost of failure of projects is very massive therefore, a success in the
performance of project in financial distress economy needs fast initiatives by authorities
to rescue them before failure. The aim of this research was to examine project
performance in financial distress economy in the Ghanaian construction industry. Three
objectives were set on which literature review was conducted. The first objective was to
conduct a critical literature survey to establish a characterization and a theory for
financial distress construction economy. The second objective was to explore the
underlying impeding constraints to project performance in financial distress construction
economy and the third objective was to establish the determinants for improvements of
project performance in financial distress construction economy. Philosophically, this
study leaned towards the positivism paradigm culminating into the adoption of
quantitative method in which survey questionnaires were administered to respondents
involved with project management yielding a response rate of 80 percent. The statistical
tools utilized in data analysis include mean score; Relative Important Index (RII) and
descriptive statistics. The findings of the research indicated that “High interest rates
chargeable on loans; Lack of regularly cash flow forecasting; Increment of foreign
exchange rate are characterization of financial distress construction economy. It was
recommended that project stakeholders should ensure effective construction waste
management, adequate labor supervision and effective materials and equipment’s
management in financial distress economy. Moreover, there must be effective planning
and coordination of project activities and effective and fast communication among
project stakeholders
Description
A thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment in partial fulfillment of the requirements for the Degree of Master of Science.
Keywords
Project performance, Financial distress, Construction economy