ITy - UoN Repository - University of Nairobi

CONTRACTORS OFFACTORS INFLUENCING PERFORMANCE OF

GOVERNMENT-FUNDED BUILDING PROJECTS IN KIRINYAGA COUNTY,

KENYA.

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* os

BY

MUGUIY1 MAUREEN WANJIKU

A RESEARCH PROJECT REPORT SUBMITTED IN PARTIAL FULFILMENT OF

THE AWARD OF A MASTER OF ARTS DEGREE IN PROJECT PLANNING AND

MANAGEMENT, THE UNIVERSITY OF NAIROBI

2012

DECLARATION

This Research Project Report is my original work and has not been presented for a degree in this

university or any other institution o f higher learning.

MUGUIY1 MAUREEN WANJIKU

1.50/ 63941/2010

Date °.s.)..

This Research Project Report has been submitted for examination with my approval as the

University supervisor.

DR. CHRISTOPHER M. GAKUO

D ate.............?. .fi'. Lh®.!. frT.

Senior Lecturer, Department of Extra-Mural Studies

University of Nairobi

u

DEDICATION

1 dedicate this study to my father Gerald Muguiyi Muchiri for his support and encouragement

throughout my life and academic journey.

in

ACKNOWLEDGEMENT

1 wish to extend my gratitude to the University of Nairobi for offering me the study opportunity

which has opened wider avenues o f knowledge and self-discovery both in my professional and

personal endeavours. Special thanks go to my supervisor Dr. C. Gakuo for his guidance in

developing this study, Dr. L. Otieno for ensuring unwavering focus on the academic programme

and Prof. Macharia for his enthusiastic ability and encouragement o f ‘outside the box’ perception

of issues. I further wish to thank the non-teaching staff at the Nyeri Extra-Mural Centre for their

encouragement and support.

I am thankful to my colleagues for their support and knowledge-sharing especially Group Five

members with whom we have acquired deeper insight into project management issues. I also

acknowledge the support of Arch. Muli, Arch. Munano and Arch. Kafuna of Min. of Public

Works and Prof. C. Ochieng of Jomo Kenyattta University of Agriculture and Technology for

their mentoring.

Finally, 1 wish to thank my son, siblings and friends for their support, with a special mention of

my sister Wambui whose support has been immeasurable.

IV

TABLE OF CONTENTS

DECLARATION............................................................................DEDICATION................................................................................ACKNOWLEDGEMENT............................................................TABLE OF CONTENTS.............................................................LIST OF TABLES.........................................................................LIST OF FIGURES......................................................................ABBREVIATIONS AND ACRONYMS..................................ABSTRACT...................................................................................

CHAPTER ONE: INTRODUCTION Ok}fi/r.

1.1 Background of the Study............................ ,vr,'.. .' ”*(Jy ,'*r' .

1.2 Statement o f the Problem...........................^

1.3 Purpose of the Study......... ........................... yo4......1.4 Research Objectives................................................................................

1.5 Research Questions................................................................................

1.6 Significance of the Study........................................................................

1.7 Delimitation of the Study......................................................................

1.8 Limitations of the Study.........................................................................

1.9 Assumptions of the Study......................................................................

1.10 Definition of Significant Terms............................................................

1.11 Organisation of the Study Report.........................................................

CHAPTER TWO: LITERATURE REVIEW

2.1 Introduction.............................................................................................

2.2 Project Management and Government-funded Building Projects....

2.3 The Building Project Process................................................................

2.4 Measurement of Contractors’ Performance........................................

2.5 Financial Issues and Contractors’ Performance.................................

2.6 Human Resources Conditions and Contractors’ Performance..........

2.7 Site Characteristics and Contractors’ Performance...........................

2.8 Design Quality Aspects and Contractors’ Performance...................

2.9 Legal and Regulatory Environment and Contractors’ Performance.

2.10 Organisational Culture and Contractors’ Performance.....................

Pageiiiiiivvixxxixii

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2.11 Conceptual Framework.................................................................................................. 17

2.12 Summary.......................................................................................................................... 18

CHAPTER 3: RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction...................................................................................................................... 19

3.2 Research Design.............................................................................................................. 19

3.3 Target Population............................................................................................................ 19

3.4 Sample Size and Sampling Procedure........................................................................... 20

3.5 Research Instruments...................................................................................................... 20

3.6 Pilot Study........................................................................................................................ 20

3.6.1 Reliability............................................................................................................. 21

3.6.2 Validity.................................................................................................................. 21

3.7 Data Collection Procedure............................................................................................... 21

3.8 Data Analysis Procedure................................................................................................. 22

3.9 Ethical Considerations..................................................................................................... 22

3.10 Operationalisation of Variables...................................................................................... 22

3.11 Summary............................................................................................................................ 27

CHAPTER 4: DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction...................................................................................................................... 28

4.2 Response Rate.................................................................................................................. 28

4.3 General Information........................................................................................................ 28

4.3.1 Age Bracket......................................................................................................... 28

4.3.2 Gender.................................................................................................................. 29

4.3.3 Education Level.................................................................................................. 29

4.3.4 Company’s Registration Category.................................................................... 30

4.3.5 Years of Operation.............................................................................................. 30

4.4 Project Performance........................................................................................................... 31

4.4.1 Descriptive Statistics............................................................................................. 31

4.4.2 Project Performance Issues.................................................................................. 31

4.5 Financial Issues’ influence on Contractors’ Performance............................................. 32

4.5.1 Descriptive Statistics............................................................................................ 32

4.5.2 Specific Financial Issues’ influence.................................................................... 32

vi

4.5.3 Financial Issues and Successful Completion of Projects................................. 33

4.6 Human Resources Conditions’ influence on Contractors’ Performance.................... 35

4.6.1 Descriptive Statistics........................................................................................... 35

4.6.2 Specific Human Resources Conditions’ influence........................................... 35

4.6.3 Human Resources Conditions and Successful Completion of Projects........ 36

4.7 Site Characteristics’ influence on Contractors’ Performance...................................... 37

4.7.1 Descriptive Statistics............................................................................................ 37

4.7.2 Specific Site Characteristics’ influence.............................................................. 38

4.7.3 Site Characteristics and Successful Completion of Projects........................... 38

4.8 Design Quality Aspects’ influence on Contractors’ Performance............................... 40

4.8.1 Descriptive statistics............................................................................................ 40

4.8.2 Specific Design Quality Aspects’ influence...................................................... 40

4.8.3 Design Quality Aspects and Successful Completion of Projects.................... 41

4.9 Relationship between Factors and Contractors’ Performance...................................... 43

4.9.1 Correlation between Financial Issues and Contractors’ Performance......... 43

4.9.2 Correlation between Human Resources Conditions and 43

Contractors’ Performance.................................................................................

4.9.3 Correlation between Site Characteristics and Contractors’ Performance... 43

4.9.1 Correlation between Design Quality Aspects and 43

Contractors’ Performance...................................................................................

4.9.5 Correlation between Factors............................................................................... 43

4.10 Summary.......................................................................................................................... 45

CHAPTER 5: SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSIONS

AND RECOMMENDATIONS

5.1 Introduction....................................................................................................................... 46

5 2 Summary o f Major Findings........................................................................................... 46

| 5.3 Discussions........................................................................................................................ 48

5.4 Conclusion......................................................................................................................... 50

5-5 Recommendations.............................................................................................................. 51

I 5.6 Suggestions for Further Study.......................................................................................... 51

REFERENCES:.......................................................................................................................... 52

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APPENDICES:

Appendix 1: Confirmation Letter from the University....................................................... 57

Appendix 2: Letter o f Introduction to the Ministry of Public Works, Kirinyaga 58

County..............................................................................................................

Appendix 3: Sample Letter of Introduction to Respondents.............................................. 59

Appendix 4: Sample Questionnaire.........................................................................................

Appendix 5: Frequency Tables o f Questionnaire Responses on Variables......................... 63

Appendix 6: Raw data.............................................................................................................. 69

Appendix 7: Reliability and Validation Statistics.................................................................. 71

Appendix 8: Classification of Building Contractors in Kenya............................................. 72

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Operational T able........................................................................................

Response Rate..............................................................................................

Age Bracket.................................................................................................

Gender..........................................................................................................

Education Level...........................................................................................

Company’s Registration Category............................................................

Years of Operation......................................................................................

Descriptive Statistics- Project Performance.............................................

Project Performance Issues.......................................................................

Descriptive Statistics- Financial Issues....................................................

Financial issues and Successful Completion of Projects.......................

Ways in which Financial Issues influence Successful Completion

of Projects....................................................................................................

Descriptive Statistics- Human Resources Conditions............................

Human Resources Conditions and Successful Completion o f Projects

Ways in which Human Resources Conditions influence

Successful Completion of Projects...........................................................

Descriptive Statistics- Site Characteristics..............................................

Site Characteristics and Successful Completion of Projects.................

Ways in which Site Characteristics influence Successful Completion

of Projects....................................................................................................

Descriptive Statistics- Design Quality Aspects......................................

Design Quality Aspects and Successful Completion o f Projects.........

Ways in which Design Quality Aspects influence Successful

Completion of Projects.............................................................................

Correlation Analysis..................................................................................

General Findings with respect to the Objectives....................................

Summary o f Correlation between the Independent and

Dependent Variables..................................................................................

Summary of Significant Correlation between Independent Variables.

LIST OF TABLES

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LIST OF FIGURES

Figure 1: Conceptual Framework 17

x

BS

CDF

GDP

GOK

KSh

MOF

MOPW

MTEF

NCAPD

OECD

P\11

SPSS

USD

ABBREV IATIONS AND ACRONYMS

British Standards

Constituency Development Fund

Gross Domestic Product

Government of the Republic of Kenya

Kenya shillings

Ministry of Finance, Government of Kenya

Ministry of Public Works, Government o f Kenya

Medium Term Expenditure Framework

National Coordinating Agency for Population and Development

Organization for Economic Co-operation and Development

Project Management Institute

Statistical Package for Social Sciences

US dollars

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ABSTRACT

Building projects, a component o f infrastructure development, are key drivers of economic growth o f a country. Governments globally thus invest heavily in this sector. Their contribution however, can only be determined by their performance, with the ultimate goal being project success. The concept o f project success has remained ambiguously defined in the building industry although time, cost and quality are considered to be the predominant criteria. In Kenya, government-funded building projects are implemented through a tri-party endeavour consisting of the financier/client, the project manager, and the contractor, who must work harmoniously to ensure project success. The implementing entity that carries out the actual construction is the contractor. This study focuses on this third party. Whereas the performance of contractors undertaking such projects in Kirinyaga County and in Kenya in general, is influenced by specific factors that impact on project success, very little reliable information is available on what these factors are and their influence. As such, this study sought to investigate the influences of the factors identified as financial issues, human resources conditions, site characteristics and design quality aspects, derived from relevant literature review and as conceptualized. The research design of choice was descriptive survey, which utilizes elements of both quantitative and qualitative research methodologies thereby addressing the objectives and research questions, and ensuring coherence and rigour. Data was gathered through written questionnaires having closed and open-ended structured questions; the latter to give deeper insight into the study problem. Respondents for the study were contractors undertaking government-funded building projects in Kirinyaga County. The study was a census with the resultant descriptive statistics presenting inferential findings on the target population of contractors who are considered to be a homogeneous group. A pilot study was carried out to test reliability and ascertain validity of the data collection instrument. Data was analyzed with reference to the research objectives through use of SPSS. Major findings of the research reflect the propositions contained in various studies and models as reviewed from literature sources that basically, the factors identified influence project performance. The study further reveals the relative influence of each o f the factors, o f greatest significance being human resources conditions and design quality aspects. A key derivative o f this study is the distinctive emergence o f the human resources element as the prime factor influencing the performance of contractors o f government-funded building projects in Kirinyaga County. Essentially, the research findings suggest that addressing all the factors identified, with particular focus on the human resources and design quality elements, would enhance the contractors’ performance of the projects and ensure higher rates of projects success. Suggestions are put forth for further study on interest areas that may have a significant influence on building projects performance.

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CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The annual value o f the construction sector cannot be understated. It is in the order of USD 1.5

trillion, constituting about 8% of GDP, 60% of fixed capital formation and represents 7% of total

employment in world economy (Njuguna H., 2008). In Kenya, on average the construction

industry is projected to grow annually at a rate of 16.7% (GOK, 2009) and the government has

adopted it as an engine o f stimulating economic growth by enhancing funding towards it. This is

further underscored in key development blueprints such as the Constitution of Kenya (GOK,

2010) and the long-term national planning strategy, Vision 2030 (GOK, 2007).

Governments and non-government agencies have been changing trends from ad hoc

development activities to projects and programmes in all development sectors, premised on the

conception o f projects as primary drivers of economic growth as they contribute significantly to

a nation’s Gross Domestic Product (Omar O., 2006). However, their level of contribution

towards this end can only be reasonably determined by their performance. Results from studies

on performance however point to a general trend o f non-successful delivery of projects.

Examples o f such results include: a study of over 250 organizations across the globe found that

successful delivery of projects was 30% for respondents from UK and Europe, 40% for those of

USA, and 18% for delivery on time and 23% for delivery on budget for those of Asia Pacific

(PIPC, 2006); and of the 1035 infrastructure sector projects completed during April 1992 and

March 2009 in India. 41% faced cost over-runs and 82% witnessed time over-runs (PMI-KPMG,

2010).

This study focused on an aspect o f governments’ funding of development projects. One of the

key investment sectors for governments is infrastructure development. Building projects are a

component o f this. These are capital intensive ventures which require proper management to

ensure efficient use of input resources and ensure intended effectiveness (OECD, 2006). A

policy research working paper on the success of infrastructure projects in low-income countries

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(Limodio N„ 2011) supports this by quoting World Bank figures that every year more than USD

200 billion is spent on this sector in developing countries, roughly a fifth o f total investment.

Kenya is rated as a low-income country (World Bank, 2011). Similar to other such countries, the

construction industry is very important for the Kenyan economy. It accounts for 5% of the

country’s GDP and employs about 1 million people with an estimated annual wage bill of

KSh3.2 billion. According to recent findings by the Kenya National Bureau of Statistics,

Kenya’s economy grew by 4.9% in the first quarter o f 2011 thanks to the improved productivity

in the construction industry thereby contributing KSh. 12.6 billion to Kenya’s GDP (Njihia M.,

2011).

In Kenya, planning and implementing of government-funded building projects is a tri-party

endeavour consisting of three key players: the financier or client being the government through

its various agencies, the project manager being the Ministry o f Public Works which is mandated

to provide technical expertise in implementing the projects in close liaison with other relevant

ministries and departments of government, and the contractor, an independent entity that carries

out the actual construction (MOPW, 2006).

This study was premised on the acknowledgement that for building projects to succeed, there is

need to understand and ensure harmonious working o f all the key players. The focus on the

contractor is based on the fact that full realisation of the built product is critically reliant on this

party. The study therefore sought to address factors that influence this third player’s

performance. It further strove to add to the body of knowledge to enhance development in the

construction project management discipline and subsequent improvement of performance o f

government-funded building projects.

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1.2 Statement of the Problem

The performance of contractors of government-funded building projects in Kirinyaga County

and Kenya in general is poor. The success rate of government-funded construction projects in

Kenya, in which building projects are inclusive, stands at 15% (GOK, 2009). Information

garnered from the Kirinyaga County Works Office, Ministry of Public Works which is the office

managing such projects in the study area presented a similar scenario, with successful project

delivery rates o f about 25% every financial year.

Having noted that the contractors’ performance is fundamental to realising government-funded

building projects success, it was imperative thus to identify and critically study key factors

influencing their performance with a view to gaining deeper insight o f the scenario and the

evident problem of poor performance.

1.3 Purpose of the Study

The purpose o f this study was to investigate the factors influencing performance of contractors of

government-funded building projects in Kirinyaga County, Kenya.

This was to be achieved by identifying key factors through conceptualisation and from relevant

literature and subsequently establishing their influence on performance from the contractors’

own perspective and experiences.

1.4 Research Objectives

The study was guided by the following objectives:

1. To establish the influence o f financial issues on contractors’ performance of government-

funded building projects in Kirinyaga County, Kenya.

2. To determine the influence of human resources conditions on contractors’ performance of


3. To establish the influence of site characteristics on contractors’ performance of


4. To determine the influence of design quality aspects on contractors’ performance o f


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1.5 Research Questions

The study sought to answer the following questions derived from the research objectives:

1. How do financial issues influence contractors’ performance o f government-funded

building projects in Kirinyaga County, Kenya?

2. How do human resources conditions influence contractors’ performance of government-

funded building projects in Kirinyaga County, Kenya?

3 How do site characteristics influence contractors’ performance o f government-funded


4. How do design quality aspects influence contractors’ performance o f government-funded


1.6 Significance of the Study

The study was aimed at adding value to government’s investment in building projects in Kenya.

It is expected to contribute to planning, evolution o f practical and sustainable responses,

synthesis o f risk management strategies, and quality development that will enhance the

perfonnance o f the contractors and overall projects’ performance.

1.7 Delimitation of the Study

The study was carried out within Kirinyaga County, Kenya. Target respondents were contractors

executing government-funded building projects managed by the Ministry of Public Works,

within this county. This provided a specific project management environment that has stipulated

operations and procedures. The field study was undertaken within the month of June 2012.

1.8 Limitations of the Study

Limitations o f the study were minimal as the study was carried out in a relatively small area and

the target respondents were few. However, this thus required a high response rate that was

achieved through intense follow up for returns.

1.9 Assumptions of the Study

The study assumptions were that the target contractors are reflective and adequately

representative of similar contractors in Kenya thus adding value to the results, and that the

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respondents answered questions truthfully and objectively, they were knowledgeable and

cooperated willingly.

1.10 Definition of Significant Terms

Contractor: Refers to a person or firm who deploys material and human resource inputs to carry

out project works as per the stipulated scope, budget and timelines. For government-funded

building projects in Kenya, such entities must be appropriately registered to carry out the type

and scope o f projects they undertake.

Design quality aspects: Matters related to translation of a building project’s design into physical

reality by constructing it on a site.

Financial issues: Aspects related to the cost and funding o f the building projects.

Human resources conditions: Issues related to the diversity, knowledge and skills of the

workforce planning and executing building projects works.

Legal and regulatory environment: The policy, legal and institutional framework that governs

building projects.

Organisational culture: The sum total of a contractor firm’s past and current assumptions,

experiences, philosophy and values expressed in its inner workings, interactions with the outside

world, and future expectations.

Performance: Refers to execution of government- funded building projects in accordance with

planned project scope and specifications, work programming and completion schedules and

budget.

Site characteristics: Unique features of a site on which a building project is undertaken.

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1.11 Organisation of the Study Report

Chapter One provides an overall introduction of the study. It comprises of the background of the

study, statement o f the problem, research objectives, research questions and significance of the

study It is also inclusive o f delimitation and limitations and of the study, assumptions, definition

of significant terms and the outline of the organisation o f the study report.

Chapter Two presents the literature review, with sub-topics containing the introduction, review

of relevant literature material fomiing the theoretical framework base, the conceptual framework

and the summary.

Chapter Three covers the research methodology. It consists of the research design, target

population, sample size and sampling procedure, research instrument and its reliability and

validity, data collection procedure, methods of data analysis, the operational definitions of the

variables and a summary.

Chapter Four covers data analysis and presentation of results. The chapter analyses the data that

was collected and offers interpretation of the results from the findings collected from the

respondents.

Chapter Five consists of the summary of major findings, discussions of the findings vis-a-vis the

literature review, conclusions and recommendations o f the study.

The report also contains a list o f references of the study’s scholarly literature sources and

appendices relevant to the study.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter delves into identifying and critically analysing key factors that influence the

performance o f contractors of government-funded building projects. It outlines the discipline of

project management in relation to government-funded building projects and expounds on the

building project process for deeper insight. This is followed by an analysis of measurement o f

contractors’ performance of building projects from relevant studies and models. Subsequent sub

sections address the key factors thus identified. Finally, it contains the conceptual framework

derived from the preceding theoretical analysis.

2.2 Project Management and Government-funded Building Projects

Projects are carried out to meet a specific objective and they can be initiated by any entity

ranging from individuals to institutions. Fundamental to this initiation is the resources aspect that

determines the proponents of the project. Since building projects are resource-intensive,

governments are major project initiators as they usually have or can access resources required.

Government-funded building projects which are the focus of this study generally have a project

cycle consisting of concept, design, tendering, pre-construction, construction and commissioning

stages. Management of the projects is normally in a tri-party form with the government as the

financier, a project manager to administer resources and activities, and the implementing entity

in form of a contractor (Uher T. and Davenport P., 2009).

Project management which is a discipline that has had rapid development in the last few decades

(Cleland D. and Gareis R., 2006) a compound term consisting of two elements: ‘project’ and

‘management’. A project is defined as a temporary endeavour that has a definite beginning and

end, undertaken to create a unique product or service. Management in general is a term referring

to planning, organising, staffing, directing and controlling operations and processes (Nokes S.

and Kelly S., 2007). The compound term of project management is therefore the application o f

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knowledge, skills, tools and techniques to project activities in order to meet or exceed

stakeholder needs and expectations from a project. This requires balancing o f competing needs

of scope, time, cost and quality, and also of stakeholders with differing needs and expectations.

Scope and quality specify what is to be achieved. The time aspect is established with specified

start and end dates, whereas the cost element is in regard to the limited financial resources to be

expended. These factors determine project performance. Although all these elements are

interrelated, it is important to note that for building projects, delay has a major impact on a

project’s cost (Assaf S. and Al-Hejji S., 2006).

2.3 The Building Project Process

Hendrickson C., (2008) provides a detailed analysis o f the process. Design and construction

process for building projects is a complex integrated system. ‘Design’ is defined as the process

of creating the description of a new facility, usually represented by detailed plans and

specifications; while ‘construction’ refers to employment o f activities and resources required to

make the design a physical reality.

Building projects are unique in a number of aspects. First, nearly every facility is custom

designed and constructed with the facility satisfying conditions peculiar to a specific site

location, pre-determined functional requirements, legal and regulatory controls, budgetary

constraints, and implementation time-lines. Secondly, because of technological complexity and

market demands, changes of design and implementation plans during construction are not

uncommon.

He further explains the design process as involving the following integrated actions: formulation

of the problem; analysis and interpretation to refine the problem; search for a set of potential

solutions to fulfill the specified functional requirements; decision based on evaluation of each o f

the potential alternatives to obtain the best solution; specification of the chosen solution in

enough detail for implementation; and finally, modification if required based on if the solution is

found to be wanting or if new information is discovered in the process o f design. This process

holds true from conceptualisation to detail design while becoming increasingly more formalised.

The construction process on the other hand consists of identification and utilization of the

primary inputs of labour, material and equipment which must be efficiently and effectively

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coordinated. The design and construction processes are non-independent with information and

actions transmitted back and forth, thereby compounding the complexity issue.

2.4 Measurement of Contractors’ Performance

The traditionally-accepted measure o f project performance is the basic cost-quality-time triangle

(Ali A. and Rahmat I., 2009). However, there are differences between various types of projects

in determination o f performance since measurement is carried out against pre-determined

success factors. For building projects, there have been studies carried out and attempts made

towards development of evaluation models aimed at determining performance factors. However,

there is no universally accepted basis due to the differing complexity, inherent nature and unique

characteristics o f such projects (Hendrickson C., 2008).

According to Muir B„ (2006), eight factors affect performance of construction projects: nature o f

the work; work force considerations; safety; time constraints; environmental issues; legal issues;

governmental regulation; and socio-political pressures. Omar O., (2006) suggested another basic

model of using the broader context o f client satisfaction as a measure, expanding the traditionally

accepted project performance measurement model, which would normally centre on the basic

cost-quality-time triangle.

Examples drawn from actual construction projects’ performance further underline the complexity

issue. An article on projects’ performance based on energy and utilities projects in Alberta,

Canada (Amalraj J., Hernani C., Ladouceur K.. and Verma A., 2007) identifies key performance

issues as quality assurance and quality control; project controls and project accounting;

availability o f appropriate labour resources; stretch targets; weather conditions; and possible

opposition from local communities. Saqib M., Farooqui R. and Lodi S., (2008) identified six

critical success factors for construction projects in Pakistan, namely contractor experience; site

management; supervision and involvement of subcontracting; contractor’s cash flow;

effectiveness o f cost control system; and speed of information flow.

In another study of project performance in terms of the cost element for building construction

projects in Klang Valley, Malaysia, causes o f problems that essentially affect overall project

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performance were identified as: inaccurate or poor estimation o f original cost; inflation of project

costs; improper planning; fluctuation in price of raw materials; poor project management; lack o f

experience; obsolete or unsuitable construction equipments and methods; unforeseen site

conditions; mistakes in design; insufficient funds; poor contract management; high cost o f

machineries; and construction cost underestimation (Ali A. and Kamaruzzaman S., 2010).

A study on India’s infrastructure projects (PMI-KPMG, 2010) identified drivers for success as

resource planning and utilisation; prior feasibility analysis to ensure soundness of investment;

ensuring compliance to regulatory agencies requirements; and identification and prioritisation of

risks in planning and monitoring, resource utilisation and skilled project management talent.

Another study undertaken by the Project Management Institute (PMI, 2010) on U.S. Federal

Government programmes to uncover thematic “success factors” found that excellence had a firm

grounding in the fundamentals: people, processes, and the resources to support both.

A World Bank policy research paper (Limodio N., 2011) based on 1912 infrastructure projects

financed by the World Bank between 1979 and 2008 attributed success of infrastructure projects

in low-income countries to three key factors: the quality of project implementers; the

performance o f the supervising agent; and proper design of the projects. Further, in a recent

paper that analyzed project-level variables, Denizer, Cevit, Kaufmann and Kraay A., (2011)

found out that micro variables such as project early-warning indicators, supervision and

evaluation lags are all significantly correlated with project outcomes. Khosravi S. and Afshari

H., (2011) also developed another performance measurement model for construction projects

with the model’s output being a project success index calculated based on five project success

factors: time performance; cost perfomiance; quality performance; health, safety and

environment o f the project; and client satisfaction.

A review of the Kenyan construction industry revealed similar factors as those identified in

models and studies above. The review identified twenty three factors influencing contractors’

performance in Kenya: staffing and competence; access to finance; statutory requirements;

absence of a unified legal and regulatory framework; poor or non-maintenance of structures;

inadequate supervision; improperly designed projects; weak judicial links; prevalence of stalled

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projects; political interference; community interference with staffing; undue harassment by local

authorities; emergence of militia groups; absence of established and published work

specifications; non-implementation o f the National Planning and Building Authority Regulations

2010; absence o f a rationalized consultancy legislative framework; absence of a binding

framework uniting all consultants in the industry; restructuring of the consultancy registration

and regulatory regime; absence of a strong Contractors Association; prevalence of corruption and

graft in the industry; absence of strong links with relevant university departments; multiplicity of

uncoordinated legislative instruments in the industry; and lack of sound project and financial

management skills on the part of many contractors (Moramati-Proinvest, 2011 (a)).

These models and studies as outlined attempt to address the ‘complexity’ o f building projects

which emanate from issues such as the procurement selection, traditional separation of design

from construction, integration/ organization o f project members, communication channels,

uncertainties in design and construction, changing internal and external environment, project

complexity and characteristics and contractual and commercial matters (Ong H., 2007).

The factors cited in the models and studies seem to encapsulate a view postulated in a recent

review on construction project success. Al-Tmeemy S., Abdul-Rahman H. and Harun Z.,(2010)

postulated on success criteria for building projects as comprising of three aspects: project

management success, product success and market success. Project management success was

conceived as consisting of adherence to quality targets, adherence to schedule and adherence to

budget. Product success consists of customer satisfaction, functional requirements and technical

specifications. Market success was conceived as consisting of revenue and profit, market share,

reputation and competitive advantage. This model conceived project success in terms of factors

relating to both the immediate end product and longer term effects. Studies on all three aspects

require both objective and subjective measurements. Objective measures can be obtained using

mathematical formulae, whereas measurement of project psychosocial outcomes would be

subjective (Manana M., van Waveren C. and Chan K., 2011).

For the purpose o f this study, project performance which translates into the contractors’

performance was addressed in terms of only one aspect: project management success. It assessed

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and measured identified factors influencing the contractors’ performance during the construction

phase. The choice of this paradigm was based on ensuring focus on objective measurement, for

reliability and validity.

From the above premise, and from the reviewed models and studies, it was possible to identify

general cross-cutting broad factors that are fundamental to contractors’ performance of building

projects namely, financial issues, human resources conditions, site characteristics, and design

quality aspects. Evident also was that the legal and regulatory environment is a consideration as

it would have a contingent effect on the relationship between these four major factors and the

performance. Another emergent aspect relates to the contractors’ “way o f doing things”- the

organisational culture of the construction entity, which would also have an effect. The following

sub-sections delve in more detail on these issues.

2.5 Financial Issues and Contractors’ Performance

Financial issues relate to cost and funding of a project which has an overall effect on

performance. According to Amalraj et. al., (2007) key aspects for consideration in this include

initial accuracy o f project estimates and subsequent project controls and project accounting in

relation to scope and schedule. Abdul-Rahman H., Wang C., Takim R. and Wong S., (2010)

provide a more comprehensive analysis of these issues, categorised as payment, cash flow,

financial resource and market issues based on previous relevant studies from diverse countries

such as Saudi Arabia, Hong Kong, Nigeria, Indonesia, United Kingdom, Ghana, Turkey and

USA, and with specific research on the Malaysian experience (Abdul-Rahman H., Berawi M.A.,

Berawi A.R., Mohamed O., Othman M. and Yahya I., 2006).

For government-funded building projects in Kenya, the main source of funding is the yearly

budgetary allocations. The annual budget is prepared under the Medium Term Expenditure

Framework (MTEF) which is a planning and budget formulation process that attempts to

improve decision making by linking policies, priorities and requirements within limited resource

constraints (GOK-MOF, 2011). The funds are then channeled through government ministries and

other service agencies. Costing for the works is done by Ministry of Public Works personnel who

also carry out periodic valuations and payments certification. Payments are made only for

12

certified works. The contractors are therefore required to have their own financial resources to

undertake works. This is usually established during the bids evaluation process with the basis

being their qualifications, equipment, experience, and audited company accounts, among other

criteria (Moramati- Proinvest, 2011(b)).

2.6 Human Resources Conditions and Contractors’ Performance

The building industry involves a diverse workforce with operations dependent on the knowledge

and skills of people planning and executing the work. According to Muir B., (2006) it is crucial

to have both talented management in place to guide and direct operations and also an adequate

number of skilled and unskilled workers to perform the work. However, it is difficult to find and

recruit sufficient numbers o f skilled and talented people. He cites the reason for this challenge as

being that construction is typically viewed as being one o f the least desirable industries in which

to work due its inherent nature: dangerous, dirty, hard work. Kaur P., (2006) reinforces this

perspective by stating that construction is considered a least lucrative profession due to the

fragmented structure of the sector, nature of the work and the terms o f labour recruitment.

ABTEC, (2006) submits the same line of thought with human resources issues in projects

identified as training, certification, apprenticeship, demographics and wage levels.

Amalraj et. al., (2007) present additional influences to the human resources element of a project

as inclusive o f the quality and quantity o f available workforce in a particular area, union or other

labour agreements, and a project site’s location. A related consideration to this is construction

equipment operation. The quality and quantity o f plant and equipment operators, their

availability, skills and productivity influence a building project’s performance. Ong H., (2007)

and Saqib et. al., (2008) offer a dimension on the human resources issue based specifically on

project management in relation to both design and construction. They highlight that project

success is dependent the project team’s competence: education, training and experience.

The issues above are collaborated by specific cases. For instance, based on the Malaysian

experience Wong P., (2007) drew attention to the need for sufficient manpower of proper skills

and experience to ensure successfully completion o f projects. He also called for perception

change of construction related careers, unjustly branded as “dirty, dangerous and demanding”

13

and reserved for only school "drop-outs". Veronika A., (2011) on the Indonesian experience

underlined the need to manage and develop human resources with regard to education levels,

demand fluctuations and personnel motivation. Aniekwu N. and Ozochi C., (2010) also present a

similar argument on the Nigerian scenario.

In Kenya, contractors undertaking government-funded building projects determine their own

human resources needs and employ the required workforce accordingly. The design and

supervision o f works is undertaken by Ministry of Public Works personnel deployed to the local

office or sourced from neighbouring areas (Source: County Works Office- Kirinyaga).

2.7 Site Characteristics and Contractors’ Performance

Site location in terms of geographical, political and functional context fixes the site in relation to

climate conditions, adjacent land uses, utilities and infrastructure availability, and the socio

cultural environment. The topography and slope determine drainage patterns and problems, on

site and off-site views, erosion and sedimentation, and suitability for different uses and activities.

The geology and soils have a bearing on the required engineering characteristics of structures to

be built in relation to stability, suitability for structural foundations, erosion susceptibility,

surface drainage, and soil fertility to support plant growth. Vegetation is also considered in terms

of climate modification and conservation value. The general climate of the location determines

the design form and also implementation scheduling. Another consideration is the availability o f

essential utilities such as water, sanitary sewer, storm sewer, electric and telephone mains, which

affect the costs o f development (McBride S., 2008).

Site characteristics for government-funded building projects in Kenya vary, with some of the

issues such as foundation soil conditions only evident on excavation. This subsequently has an

effect on the contractors’ performance. For instance, the study area of Kirinyaga County has

varied characteristics ranging from the cool, hilly, red soil regions on the lower slopes of Mt.

Kenya, to the hot, dry, flat, clay soil Mwea region (Source: County Works Office- Kirinyaga).

14

2.8 Design Quality Aspects and Contractors’ Performance

The documented design, materials specifications for functional and aesthetic reasons, actual site

conditions, in conjunction with pre-planned work schedules merge during implementation. This

may present another set of issues that are influence the contractors’ performance. Saqib et. al.,

(2008) categorised a number of these key issues. Among the issues they noted were the clear and

precise definition o f project scope and objectives, timely decision-making, risk attitude and

emphasis on low construction cost/ high quality of construction/ quick construction. Other

aspects include project design complexity, mistakes/delays in producing design documents,

adequacy of plans and specifications, project planning, scheduling, communication and speed of

information flow, and supervision. Alarcon L. and Mardones D.,(2009) presented the factors in

three categories: design quality related to design drawings and specifications, design standards

coupled with suitability for the existing technology, and constructability o f the designs. Another

major concern is the availability o f materials required for the built product. This encompasses

types and specification, delivery, special manufacturing, selection and procurement lead times

(Amalraj et. al., 2007).

The above design quality aspects o f completeness, complexity, changes, information flow,

supervision and specifications manifest in government-funded building projects in Kenya and

influence the contractors’ performance (Source: County Works Office- Kirinyaga).

2.9 Legal and Regulatory Environment and Contractors’ Performance

The legal and regulatory framework has an influence on building projects in form of exerting

control over the operations of the sector in a country. Laws and regulation should express the

policy o f the government; define the scope and functions of the building sector; regulate the

requirements o f practice for building projects and the working conditions; provide guidance and

standards that need to be followed; and regulate the distribution of responsibility of various

governing authorities of the sector (Moghram M., 2010). These are not standard but differ from

country to country and in levels o f development and enforcement. For instance, in USA the

building sector and construction in general is heavily regulated with laws and regulations based

on policies from diverse public agencies. These govern a wide range of aspects such as business

structure, licensing, contracts, bonding, insurance, safety building codes, labour, employee

15

relations, environment, taxes, import o f materials, foreign investment and immigration (O’Neal

S and Beming P., 2007).

The legal and regulatory environment governing all building projects in Kenya is largely

unharmonised. In terms of policy, currently all development efforts in Kenya are anchored in

Vision 2030, the blue print for Kenya’s long term national development which is implemented

through a series o f five year medium term rolling plans. The legal framework consists of a

multiplicity of statutes that are not harmonized (Moramati- Proinvest, 2011(b)). The institutional

framework also has multiple actors. However, the Ministry of Public Works is charged with

managing all government and public institutions building works, in liaison with other relevant

bodies such as the Ministry of Public Health (Kimani M. and Musungu T., 2010). The

contractors’ operations are also not harmonized despite the establishment of their umbrella body

of Kenya Federation of Master Builders in 2010 which does not have a legislative mandate

(Moramati- Proinvest, 2011 (a)). British Standards (BS) has been the safety guide for Kenya’s

building sector. The government intends to replace these with Eurocodes which are harmonized

Europe’s technical rules for the design o f buildings and structures, by 2013. Kenya will develop

is own national annexes to accommodate the local conditions (Njihia M., 2012).

2.10 Organisational Culture and Contractors’ Performance

According to Oyewabi L., Ibrahim A., Ganiyu B. and Okwori I., (2011) researches into building

projects’ performance have largely focused on the projects themselves rather than on the

organisations responsible for the projects. In their research paper, they conclusively

demonstrated that organisational culture is a powerful management instrument that can be

employed to enhance building projects’ performance. This view is shared by Ankrah N.,

Proverbs D. and Debrah Y., (2009) and expanded to include organisational learning by Opoku A.

and Fortune C., (2011).

Contractors carrying out government-funded building projects in Kenya comprise of independent

firms, each with its own management structure and organisational culture.

16

2.11 Conceptual Framework

The conceptual framework for the study as illustrated in Fig.2 indicates the relationship between

the variables. The defining premise for the framework as derived from the literature review is

that manipulation o f the independent (predictor) variables consisting of financial issue, human

resources conditions, site characteristics and design quality aspects influences the contactors’

perfonnance o f government-funded building projects. The framework further illustrates the

moderating and intervening variables identified as legal and regulatory environment and

organizational culture, respectively. It also includes indicators of the variables that would be

used to measure the levels of influence.

Independent variables Moderating variable

Financial Issues:

• Funding system• Financial management

system• Progress payments

process

Human Resources

Conditions:

• Availability o f appropriate human resources

• Productivity levels of the workforce

Site Characteristics:• Unique site features

and conditions

Design Quality Aspects:

• Design quality issues• Materials

specifications

Intervening variable

figure 1: Conceptual Framework

17

2.12 Summary

The literature review revealed key factors influencing performance o f contractors of

government-funded building projects. These were identified as financial issues, human resources

conditions, site characteristics and design quality aspects. The legal and regulatory environment

was identified as a moderating variable in the relationship between the independent and

dependent variables. Organisational culture was similarly identified as an intervening variable in

the same relationship.

The literature review thus formed the theoretical framework and subsequent development of the

conceptual framework, providing concrete grounding for carrying out the research study’s field

work.

18

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

This chapter presents and justifies the research approach and methodology selection used in the

study. It consists of the research design, sampling, data collection and data analysis procedures

that were be used to achieve the set research objectives.

3.2 Research Design

With reference to the objectives and research questions o f the proposed study, the research

design o f choice was descriptive survey. This utilises elements of both quantitative and

qualitative research methodologies thereby seeking to provide a complete and accurate picture o f

the situation being studied (Given L., 2007).

The choice was based on the challenge posed by the construction engineering and management

sector, due to the interdisciplinary project-based nature of the work, industry fragmentation, one-

of-a-kind end products, site-based production, and other factors (Panas A. and Pantouvakis J.,

2010). To resolve this, a reasonable basis for choosing an appropriate methodology is an

appreciation o f the human resource clement in building projects. Since people play key roles in

nearly all aspects o f construction, an effective construction research calls for proper application

of social science research methods. This can be achieved by combining quantitative and

qualitative approaches in research design and data collection (Abowitz D. and Toole T., 2010).

3.3 Target Population

The target population was the 38 building contractors currently undertaking government-funded

building projects managed by the Ministry of Public Works in Kirinyaga County, Kenya. Their

projects consist o f public buildings such as educational, health services, offices, recreational and

market facilities.

19

The rationale for this was that the target population of contractors could be considered to be a

homogenous group since the basic criteria for undertaking the government-funded building

projects is simply registration with MOPW. Minimum qualifications for bidding for projects are

stipulated for each specific project. A point of note is that in relation to the focus projects, the

Ministry o f Public Works only manages building projects funded through mainstream

government ministries and departments in the county, and those funded through the Constituency

Development Fund (CDF) in Mwea and Gichugu constituencies which are two of the four

constituencies making up Kirinyaga County (Source: County Works Office- Kirinyaga).

3.4 Sample Size and Sampling Procedure

The study was a census due to the small population size o f 38 building contractors. Thus, no

sampling was carried out. The respondents were managing directors o f these construction firms.

This facilitated gathering o f the necessary data from persons in authority who have full

understanding of, and involvement in, the building projects’ process.

3.5 Research Instruments

The data collection instrument used in the study was a self-administered questionnaire

comprising o f both closed- and open- ended questions. This has advantages o f collecting the

required information at a low cost per respondent, the respondents may give more honest

answers in the absence of the researcher, the answers are more standardized for closed-ended

questions, and they can fill the questionnaire at their convenience. Closed- ended questions

provide objective quantitative data whereas the open-ended questions, provide general subjective

insight into the study subject (Cargan L., 2007).

3.6 Pilot Study

The questionnaire was piloted to test if it yielded the required information. The pilot study was

carried out in Nyeri County which neighbours Kirinyaga County, Kenya. Seven respondents with

similar characteristics as the target population were chosen on convenience. They were asked to

respond on any ambiguities and also to give comments about the length, structure and wording of

the questionnaire. This facilitated altering and refining the questions accordingly to meet

research objectives so as to achieve the ultimate aim of obtaining reliable and valid survey data

( Fink A., 2006).

20

3.61 Reliability

The pilot study was a critical exercise in testing for reliability. Reliability was also tested through

lest-retest technique, whereby the same questionnaire was administered to the same 13

respondents at two separate points in time. Calculating the correlation between the two scores

yielded the reliability coefficient. ‘Internal consistency’ or homogeneity was measured using a

statistical package to derive Cronbach’s alpha, which is a coefficient that measures the

consistency of results across items. With an acceptable reliability o f 0.7 and above

(Thanasegaran G., 2009), the test result of 0.783 indicated that the tool was reliable.

3.62 Validity

The pilot study was also used to ascertain validity. Validity was ensured on the following

criteria. The instrument at face value had to seem to be a reasonable way to gain the information

required and was well designed. This also established criterion-related validity. It satisfied the

content criterion through inclusion of adequately representative indicators of the concepts

measured. This was checked by evaluating inter-item correlations. Peer evaluation of inferences

based on the instrument was also incorporated to further enhance reliability and validity.

3.7 Data Collection Procedure

Data to be used in the study was from both primary and secondary sources. The first stage

consisted o f examination of previous research reports and other relevant literature. This

facilitated identification of major concepts, their correlation and the knowledge gaps related to

the field of interest. The review o f this secondary data provided knowledge on how these

concepts may be operationalised thereby assisting in developing an appropriate research design

and methodology. The second stage comprised of collection of primary data. Prior to data

collection from the sample population, a pilot survey was conducted to verify the quality and

effectiveness o f the data collection instrument. On refinement of the instrument, the actual field

study was carried out. This was closely monitored, evaluated and appropriate adjustments made

to constrain the exercise within the projected work plan and resources.

The questionnaires were distributed personally by the researcher and research assistants to

respondents. The basis for this was that the alternative distribution method of mailing is

unreliable and could have taken too much time. The distribution points were MOPW county

21

offices in Kerugoya, and CDF offices for Mwea and Gichugu located in Ngurubani and

Kianyaga towns, respectively. This ensured access to respondents as project management

procedures require that the contractors visit these offices frequently. They were returned to the

same points or collected by the research personnel from locations convenient to the respondents.

The purpose of this was to enhance the response rate, and in consideration o f the fact that the

geographical area o f study was not extensive and the study units were few.

3.8 Data Analysis Procedure

The data analysis method involved the use of descriptive and inferential statistical analysis

derived through . The results are presented in form of frequency tables, proportions and means

analysis. Inferential statistics such as correlation analysis were done to determine the degree of

association between the variables, resulting in Pearson’s correlation coefficient. Validity o f the

measurement models was tested using SPSS. The results o f ANOVA, of SPSS helped answer the

question as to how the dependent variable is influenced by the independent variables.

3.9 Ethical Considerations

Before commencing the field study, permission was sought from relevant authorities. In

recruitment of respondents, they were fully informed on the study’s activities and purpose so that

their consent was freely granted and without prejudice. The structure of the data collection

instrument which yielded anonymous information was aimed at assuring respondents of

confidentiality and privacy. With respect to data collection, analysis and interpretation, all

references were cited and the source credited and the study was devoid of plagiarism, fabrication

or falsification. Honesty was observed in all interpersonal communication and in the analysis of

literature.

3.10 Operationalisation of Variables

Table 3.1 is a summary of the systematic process of operationalisation of the independent and

dependent variables that was undertaken: from the basis of the set objectives, through to

indicators, measures and measurement. It further indicates the data collection method,

measurement scale and the level of analysis.

22

Table 3.1: Operational table

Item Objectives

1 To establish the influence of financial issues on contractors’ performance of government-funded building projects in Kenya

Independent Indicatorsvariables

Financial issues Fundingsystem

Measures Measurement Data

-Adequacy of funds

-Access to finance

Ratio of contract sum (work awarded) to tender sum (work bid for) Amount of time taken to process a

collectionmethodQuestionnaire

Measurementscale

Interval/Ratio

Analysis

Correlation

loanFinancialmanagementsystem

-Cost control andaccounting

Level of effectiveness of cost control system

-Capital base Level of capital base in relation to works undertaken

Progresspaymentsprocess

-Timeliness of valuations andcertification

Amount of time taken to value and certify works

-Accuracy of valuations

Level of discrepancy between technical valuation for payment and the contractor’s claim

-Timeliness of honouring certificates

Amount of time taken to honour certificates

23

Item Objectives Independentvariables

2 To determine the influence of human resources conditions on contractors’ performance of government-funded building projects in Kenya

Humanresourcesconditions

Indicators Measures M easurem ent Datacollectionmethod

Measurementscale

\nal> \is

Availabilityofappropriatehumanresources

-Quantity of available appropriate workforce

Number of available personnel as required at a specific time

Questionnaire

Interval/Ratio

Corrclation

-Level of competence of available personnel

Education, training and experience levels of available personnel as required at a specific time

-Demandfluctuations

Differences in availability of personnel required over different periods of time

Productivity levels of the workforce

-Terms of employment

Production per time period

-Motivationstrategies

Number of ways employed to motivate personnel towards higher productivity

-Jobassignment

Level ofassignment of jobs based on specialization

24

Item O b jec tiv e s Independentvariables

Indicators M e a s u re s M e a s u re m e n t D a tacollectionmethod

M e a s u re me nt scale

A n a ly s is

3 To determine the influence o f site characteristics on contractors’ performance of government-funded building projects in Kenya

Sitecharacteristics

Unique site features and conditions

-AccessibilityTopographyand slopeeffects-Availabilityof utilities(such aswater,electricity,sewer mains)-Actual soilconditions onexcavation-Existingvegetation-Climaticconditions

Unit cost of production ( cost per nr of floor area) andTime taken to execute the works

Questionn a ire

Interval/Ratio

Correlation

4 To establish the influence of design quality aspects on contractors’ performance of government-funded building projects in Kenya

Design quality aspects

Design quality issues

-Completeness

Level of design andspecificationscompleteness

Questionnaire

Interval/Ratio

Correlation

-Complexityofspecifications

Level ofspecificationscomplexity

-Changes in design and specifications

Net cost of modifications

-Speed ofinformationflow

Time taken to communicate necessary information

25

Item Objectives I n d e p e n d e n tvariables

In d ic a to r s Measures M easurement Datacoliectionmethod

Measurementscale

Analysis

Materialsspecifications

-Availability of specified materials

Unit cost of production ( cost per m: of floor area)

-Procurement lead times

Amount of time taken to procure the specified materials

-Supervisionlevel

Level of daily works supervision Number of periodic project team site inspections and meetings

Item Objectives Dependentvariable

Indicators Measures Measurement Datacoliectionmethod

Measurementscale

Analysis

1 To establish the influence of- financial issues,- human resources issues- site characteristics and- design implementation issues on contractors’ performance of government- funded building projects in Kenya

Contractors’performance

Budget(Cost)

-Contractsum

Percentage of contract sum

Questionnaire

Interval/Ratio

Correlation

Contractperiod(Time)

-Contractduration

Percentage of contact period

Adherence to specifications (Quality)

-Specifications details

Level of adherence to specifications

26

3.11 Summary

This chapter on the research design and methodology is centered on the overall objectives o f the

study. It facilitated collection o f valid and reliable data that was objectively interpretable, thereby

yielding practical conclusions and recommendations, which must be the fundamental outcome

for any research.

27

CHAPTER FOUR

DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.1 Introduction

This chapter analyses the data that was collected and offers the interpretation o f the results from

the findings collected from the sampled respondents. The purpose of the study was to investigate

the factors influencing the performance o f contractors o f government-funded building projects in

Kirinyaga County, Kenya.

4.2 Response Rate

A total of 38 questionnaires were distributed to the selected respondents in Kirinyaga County. A

total of 36 questionnaires were duly filled and collected; a resultant 94.74% response rate. This

was an acceptable rate and could be attributed to the fact that the questionnaires were physically

given to the respondents and collected from specific collection points at an agreed date. Table

4.1 shows the response rate;

Table 4.1: Response Rate

Category Targeted Sample Response Rate % Response Rate

Size

Building contractors 38 36 94.74

Total 38 36 94.74

N=36

4.3 General Information

This section provides results and discussions o f characteristics of the building contractors in

Kirinyaga County.

4.3.1 Age Bracket

Hie study sought to establish the age bracket of the managing directors of building construction

firms and the responses are as provided in Table 4.2.

28

Table 4.2: Age Bracket

Frequency(N) Percent

31-40 11 30.6

41-50 15 41.7

Above 50 10 27.7

Total 36 100.0

The study found that majority of the respondents, 41.7% were aged 41-50 years, 30.6% of the

respondents were aged 31-40 years, and 27.7% o f the respondents were aged above 50 years.

This analysis indicates that all respondents were above 31 years of age with a majority within the

31-50 years age range. Persons in this age group tend to be generally well-established in their

careers.

4.3.2 Gender

Table 4.3 indicates the gender composition of the respondents.

Table 4.3: Gender


Female 1 2.8

Male 35 97.2

Total 36 100.0

The study found that, majority of the respondents, 97.2% were male while 2.8% were female.

This implies a lack o f gender balance among the building contractors within Kirinyaga County.

4.3.3 Education Level

The research further attempted to establish the level of education o f the respondents and the

responses are as shown in Table 4.4.

Table 4.4: Education Level


Certificate 10 27.8

Diploma 13 36.1

Degree 12 33.3

Masters and above 1 2.8

Total 36 100.0

29

Table 4.4 shows that o f the respondents, 36.1% were diploma holders and 33.3% were degree

holders. 27.8% of the respondents had certificate qualification. Only 1 or 2.8% of the respondent

had masters’ qualification. This analysis suggests that the majority of respondents hold high

qualifications o f diploma and above and could be having reasonable management capabilities.

4.3.4 Company’s Registration Category

The research emphasized on the categories of the building construction company registration and

the responses are provided in Table 4.5.

Table 4.5: Company’s Registration Category


C o r D 6 \6H

E or F 23 63.9

G o rH 7 19.4

Total 36 100.0

The finding revealed that the majority of companies at 63.9% were registered in category E or F,

16.7% were registered in category C or D, and 19.4% in category G or H. This implies that the

majority are mid-level firms with the capability to undertake reasonably big works.

4.3.5 Years of Operation

The study sought to establish the period that each company had been in operation and the

findings are provided in Table 4.6.

Table 4.6: Years of Operation


Less than 5 4 11.1

5 - 10 22 61.1

11 - 15 9 25.0

Above 20 1 2.8

Total 36 100.0

The finding revealed that 61.1% of the respondents have been in operations for 5-10 years and

25% o f the sample had been in operations for 11-15 years. About 11.1% o f the respondents had

been in operation for less the 5 years. Only one company has been in operations for more than 20

years. This reveals that there could be factors that have resulted in more building firms being

established and starting operations in the preceding 10 years.

30

4.4 Project Performance

This section provides results and discussions o f the projects’ performance equated to the

contractors’ performance, according to the building contractors in Kirinyaga County.

4.4.1 Descriptive Statistics

The research attempted to establish the level of project performance and general opinion is

provided in Table 4.7.

Table 4.7: Descriptive Statistics

N Minimum Maximum Mean Std. Deviation

project performance 36 1.33 4.33 2.6204 .54716

Table 4.7 indicates that, the average score o f project performance was 2.62. In the likert scale

measuring interval data, any score below 3 represents agree. The score thus implies that based on

on project performance statements, the majority of respondents agree that projects undertaken

are successful. Others statistics are also provided in the same table.

4.4.2 Project Performance Issues

The study sought to establish the views o f the respondents on project performance and the results

are given Table 4.8.

Table 4.8: Project Performance Issues

Stro

ngly

agr

ee

Agr

ee

Neu

tral

Dis

agre

eSt

rong

ly

Dis

agre

e

Tot

al

% % % % % %

Projects are done within the budget 2.8 27.8 61.1 5.6 2.8 100

Projects are completed within the 5.6 22.2 47.2 25.0i 0 100

contract period

Projects meet set standards 8.3 72.2 13.9 5.6 0 100

31

The study found that of the respondents, 30.6% agree, 61.1% neither agree nor disagree, while

8.3% disagree that projects are done within the budget. In response to the statement that projects

are completed within the contract period, 27.8% agree, 47.2% neither agree nor disagree, and

25.0% disagree. Finally, 80.5% of the respondents agree, 13.9% neither agree nor disagree, while

5.6% disagree that projects meet standards.

The above revealed the average response to all the project performance statements as follows:

46.3% agree, 40.7% neither agree nor disagree, and 13.0% disagree. This suggests that the

majority o f respondents at 46.3% agree that projects undertaken are successful. However, 53.7%

of the respondents are either neutral or disagree. This could be attributed to individual

experiences since no information on other projects’ performance was provided to the

respondents.

4.5 Financial Issues’ intluence on Contractors’ Performance

This section provides results and discussions of financial issues’ influence on the performance of

contractors o f government-funded building projects according to the building contractors in

Kirinyaga County.


The research attempted to establish the level at which financial issues influence contractors

performance and the general opinion is provided in Table 4.9.



Financial issues 36 1.57 3.71 2.8611 .47868

Table 4.9 indicates that, the score average of financial issues was 2.86. In the likert scale, the

score represents agree. It thus implies that the majority of respondents agree that financial issues

influence the contractors’ performance.

4.5.2 Specific Financial Issues’ influence

This research attempted to establish the views of the respondents on the stated financial issues

and the results are given in Appendix 5. For each o f the statements, there was a view held by the

32

majority of respondents. On the contract sum being usually equivalent to the tender sum, 47.2%

agree. In response to the statement that loans are usually quickly processed by banks and other

financial institution, 44.4% agree. On whether respondents update plans and records of income

and expenditure on a weekly basis the majority was 52.7% disagree. In response to contractors

only bidding for projects for which they have the capacity to undertake 38.9% disagree. About

valuation and certification o f work being completed within the stipulated two weeks period,

55.6% of the respondents agree. In addition, the response was 69.4% agree on valuations for

payment being a source of disputes. Finally, responses to payment certificates being honoured

within the stipulated two weeks period, 44.4% disagree.

From the indicators of financial issues, the above reveals average responses related to the

funding system o f 45.8% agree, those related to financial management system of 45.8% disagree

and in relation to progress payments process, 44.4% disagree. This suggests that financial issues

have a major influence on the contractors’ performance. It also reveals that the major positive

influence on the contractors’ performance is issues related to the funding system, while negative

influences are issues related to their financial management system and the progress payments

process.

4.5.3 Financial Issues and Successful Completion of Projects

The study attempted to find out whether financial issues had any influence on successful

completion of projects as shown in the Table 4.10.

Table 4.10: Financial issues and successful completion of projects


No 1 2.8

Yes 35 97.2

Total 36 100.0

The analysis found that majority o f the respondents, 97.2% said that financial issues had an

influence on successful completion o f projects.

The respondents’ views were further sought through open-ended questions to acquire deeper

insight into financial issues’ influence on successful completion of projects. The responses are

33

given in Table 4.11.Notably, 44.7% o f the respondents said that delays in payment leads to

delays in the projects and contractors sometimes bid for projects that they cannot complete.

Additionally, 36.3% said that many contractors fail to complete their projects in time due to

financial problems. This reflects the suggestions in 4.5.2 above.

Table 4.11: Ways in which financial issues influence successful completion of projects

No. Ways Frequency %

1 Contractor will be able to plan for two phase simultaneously

since he/she has capability o f purchasing materials required in

advance, i.e. while on site, one with power of purchase can be

fabricating roof structure

1 2.8

2 Delay in payment delays the project, contractors sometimes bid

for projects that they cannot complete

16 44.7

3 Enables contractor to start the project immediately and work

continuously

1 2.8

4 Facilitate work to move faster 2 5.6

5 Inadequate funds delayed and late payments usually lead to

delayed completion or total abandonment of projects

2 5.6

6 It ensures all departments o f a project are going together, e.g

delivery o f materials, payment of labour, hiring of skilled

personnel, etc

1 2.8

7 Less money less work and poor one 1 2.8

8 Many contractors fail to complete their projects in time due to

financial problems

13 36.3

9 The contractors are able to plan and work within the time given 1 2.8

10 The contractors are able to purchase and honour suppliers

invoices

1 2.8

11 Finances fully disabused gives a contractor and workers

confidence and encourage them to complete their work

1 2.8

34

4.6 Human Resources Conditions’ influence on Contractors’ Performance

This section provides results and discussions on human resources conditions’ influence on the

performance of contractors o f government-funded building projects according to the building

contractors in Kirinyaga County.


The study attempted to establish the level at which human resources conditions influence

performance o f contractors and the general opinion is provided in Table 4.12.



Human resources

conditions

36 1.17 2.50 1.8843 .38999

Table 4.12 indicates that the average score of human resources conditions was 1.88. In the likert

scale, the score represents agree. It thus implies that the majority of respondents agree that

human resources conditions influence the contractors’ performance.

4.6.2 Specific Human Resources Conditions’ influence

The study attempted to establish the views of the respondents on the listed human resources

conditions and the results are given in Appendix 5. For each of the statements, there was a view

held by the majority of respondents. On that personnel (skilled, semi-skilled, unskilled and

management) is available when required, 69.4% agree. In response to the statement that

recruitment o f personnel on the basis of education, training and experience ensures quality o f

work, 100.0% agree. On whether sometimes there is excess or shortage o f labour available in a

particular area, 80.6% agree. In response to terms of employment (such as daily wages, piece

work) affect the work output of personnel, 94.4% agree. On the statement that ways used to

motivate personnel (such as bonuses, time-off, training opportunities) affect productivity levels,

91.7% of the respondents agree. Finally, in response to the statement that assignments are

allocated to personnel based on their specialized skills, 66.7% agree.

From the indicators o f human resources conditions, the above reveals average responses related

to the availability of appropriate human resources of 83.3% agree, and in relation to productivitySMrt

•<

■J p-, A f t r

levels of the workforce, 84.3% agree. This suggests that human resources conditions have a

maior influence on the contractors’ performance.

4.6.3 Human Resources Conditions and Successful Completion of Projects

The study attempted to find out whether human resources conditions had any influence on

successful completion o f projects as shown in Table 4.13.

Table 4.13: Human resources conditions and successful completion of projects


No 2 5.6

Yes 34 94.4

Total 36 100.0

The analysis found that, majority of the respondents, 94.4% said that human resource conditions

had an influence on successful completion of projects.


insight into human resources conditions’ influence on successful completion of projects. The

responses are given in Table 4.14. Notably, 22.4% of the respondents said that better personnel

results in quick and timely completion of projects and 19.6% said that labour used should have

the right skills. Additionally, 14.0% said that availability o f personnel is important for good work

and 14.0% said it affects the quality o f work, time of completion and also profit to the company.

This reflects the suggestion in 4.6.2 above.

Table 4.14: Ways in which human resources conditions influence successful completion of

projects


1 As a measure for proper collection and guidance towards work

and other status of work

1 2.8

2 As humans, when well guided, well managed, well paid, the

absolute is a satisfactory performance

2 5.6

3 At times you lack local skilled labour and you have to import 3 8.4

36

from other areas

4 Availability of personnel is important for good work 5 14.0

5 Better personnel leads to quick and timely completion

projects

of 8 22.4

6 Depends on who does the work; without their input,

foundation and nature o f the work will fail

the 1 2.8

7 It affects the quality o f work, time of completion and also profit

to the company

5 14.0

8 Labour used should have the right skills 7 19.6

9 Source o f job creation and human input is the pillar to

development o f a society

any 1 2.8

4.7 Site Characteristics’ influence on Contractors’ Performance

This section provides results and discussions of site characteristics’ influence on the performance

of contractors o f government-funded building projects according to the building contractors in

Kirinyaga County.


The research attempted to establish the level at which site characteristics influence performance

of contractors and the descriptive statistics are provided in Table 4.15.



site characteristics 36 1.00 2.60 1.6722 .40328

Table 4.15 indicates that the average score of site characteristics was 1.67. In the likert scale, the

score represents agree. It thus implies that the majority of respondents agree that site

characteristics influence the contractors’ performance.

37

4.7.2 Specific Site Characteristics’ influence

The study sought to establish the views of the respondents on the listed site characteristics and

the results are given in Appendix 5. For each o f the statements, there was a view held by the

majority of respondents. On that means o f accessing a site affect the cost and duration of a

project, 94.4% agree. In response to the statement that the topography and slope affect the cost

and duration o f a project, 100.0% agree. On that availability o f utilities (such as water,

electricity, sewer) on or near site affect the cost and duration of a project, 100,0% agree. In

response to the statement that soil condition and existing vegetation affect the cost and duration

of a project, 100,0% agree. Finally, in response to the statement that climatic conditions in an

area affect the cost and duration of a project, 94.4% agree.

From the indicator o f site characteristics, namely unique site features, the above reveals the

average of responses of 97.8% agree. This suggests that site characteristics have a major

influence on the contractors’ performance.

4.7.3 Site Characteristics and Successful Completion of Projects

The study sought to find out whether site characteristics had any influence on successful

completion o f projects as shown in the Table 4.16.

Table 4.16: Site characteristics and successful completion of projects


No 2 5.6

Yes 34 94.4

Total 36 100.0

The study found that, majority of the respondents, 94.4% said that site characteristics had

influence on successful completion of projects.

fhe respondents’ views were further sought through open-ended questions to acquire deeper

insight into site characteristics’ influence on successful completion o f projects. The responses are

given in table 4.17. Notably, 28.0% of the respondents said that actual site conditions should be

considered in project planning. Additionally, 28.0% said that all the factors listed affect the cost

and duration o f a project because if any of the factors is not favourable, more materials and

38

intensive labour is required, hence raising costs and duration. This reflects the suggestion in 4.7.2

above.

Table 4.17: Ways in which site characteristics influence successful completion of projects


1 A good site (easily accessible, with utilities and stable soil)

makes the construction works economical

2 5.6

2 Accessibility does determine the type of transportation used and

hence the cost

3 8.4

3 Actual site conditions should be considered in project planning 10 28.0

4 All above factors affect the cost and duration o f a project

because if any o f the factors is not favourable more materials

and intensive labour is required hence raising costs and duration

10 28.0

5 Bad sites will definitely affect 2 5.6

6 Weather conditions affect project implementation activities e.g.

concreting, excavation etc

3 8.4

7 Some sites are very steep, others have bad soils 1 2.8

8 For good sites, the project is easily completed and money spent

is less

1 2.8

! 9 Tough sites are hard to build on and costly 1 2.8

1 io When there is electricity, good access road, may lead to 24hrs

working for project to move faster

2 5.6

11 Distance to dispose off cleared and excavated also leads to

delayed completion if its far off

1 2.8

12 Type of site determines the amount of materials to cast away

and backfill

2 5.6

13 Soil condition and type also affect and determine the depth of

excavation

1 2.8

14 They determine time frame, accessibility cost and viability 1 2.8

39

4.8 Design Quality Aspects’ influence on Contractors’ Performance

This section provides results and discussions o f design quality aspects’ influence on the

performance o f contractors of government-funded building projects according to the building

contractors in Kirinyaga County.


The research attempted to establish the level at which design quality aspects influence

performance of contractors and the descriptive statistics are provided in Table 4.18.



design quality aspects 36 1.25 2.75 2.1181 .32036

Table 4.18 indicates that, the average score o f design quality aspects was 2.11. In the likert scale,

the score represents agree. It thus implies that the majority o f respondents agree that design

quality aspects influence the contractors’ perfonnance.

4.8.2 Specific Design Quality Aspects’ influence

The study sought to establish the views of the respondents on the listed design quality aspects

and the results are given in Appendix 5. For each o f the statements, there was a view held by the

majority o f respondents. In response to the statement that project documentation (drawings and

bills of quantities) is usually accurate and complete, 27.8% agree. However, 50% of the

respondents had a neutral view. On the statement that projects undertaken can usually be done to

completion using available skilled personnel and machinery, 91.7% agree. In response to the

statement that design changes affect the work programme and costs o f a project, 100.0% agree.

On that cost o f materials is dependent on their availability, 91.7% agree. In response to the

statement that the types of materials specified detennine the amount of time taken for their

procurement and delivery, 94.4% agree. Response to the statement that relevant information is

usually communicated within a reasonable period o f time was 47.2% agree. On that a qualified

overall supervisor must be on site at all times, 97.2% agree. Finally, in response to the statement

that project team site inspections are held bi-weekly and site meetings are held monthly as

stipulated.27.8% agree. However, 47.2% were neutral.

40

From the indicators of design quality aspects, the above reveals average responses related to

design quality issues of 66.7% agree, those related to materials specifications 93.1% agree and in

relation to supervision level, 62.5% agree. This suggests that design quality aspects have a major

influence on the contractors’ performance.

4.8.3 Design Quality Aspects and Successful Completion of Projects

The study sought to find out whether design quality aspects had any influence on successful

completion of projects as shown in the Table 4.19.

Table 4.19: Design quality aspects and successful completion of projects


No 2 5.6

Yes 34 94.4

Total 36 100.0

The study found that, majority of the respondents, 94.4% said that design quality aspects had

influence on successful completion o f projects.


insight into design quality aspects’ influence on successful completion of projects. The responses

are given in Table 4.20. Notably, 22.4% of the respondents said that bad designs destroy projects

while good quality design makes good projects. In addition 16.8% said that a change of design

causes demolitions if not timely done which effectively increases the cost o f the project and at

times loses to the contractor due to lack of payment. Further, 11.2% said that good design quality

equals well produced and finished projects. This reflects the suggestion in 4.8.2 above.

Table 4.20: Ways in which design quality issues influence successful completion of projects


1 Bad designs destroy projects, good quality design makes good

projects

8 22.4

2 Because most of the design are not done by qualified personnel

or are borrowed from other projects

1 2.8

41

3 BQs should be well done and changes avoided 3 8.4

4 A change o f design causes demolitions if not timely done. This

effectively increases the cost of the project and at times loses for

the contractor due to lack o f payment

6 16.8

5 Design and how it is built on site affect completion o f projects 1 2.8

6 Documentation should be complete and supervision constant 1 2.8

7 Good design quality equals well produced and finished projectsc

4 11.2

8 No changes are effected 1 2.8

9 Sophisticated designs cost more 1 2.8

10 Supervision is important 2 5.6

11 The more accurate the design, the less time it takes to complete

the projects as less clarification and consultation between

projects managers and contractor are required

1 2.8

12 They help in proper work programme 1 2.8

13 When the designs are constant, construction moves faster unlike

when they are changed regularly, since any change commands

whether you demolish, hence affect duration of completion

1 2.8

42

4.9 Relationship between Factors and Contractors’ Performance

This section provides results and discussions of the correlation analysis o f the study as shown in

Table 4.21. Correlation measures the degree/strength o f association between two variables.

4.9.1 Correlation between Financial Issues and Contractors’ Performance

There exists a correlation between financial issues and contractors’ perfonnance although the

Pearson correlation = 0.318 is marginally significant. Employing 0.05 significance level, this was

supported by a significance value o f 0.059 > 0.05.

4.9.2 Correlation between Human Resources Conditions and Contractors’ Performance

A fairly strong correlation exists between human resources conditions and contractors’

perfonnance. Employing 0.05 significance levels, the result indicate that there was relationship

between contractors’ perfonnance and human resources conditions. The results are statistically

significant with a significance value of 0.034 < 0.05. The Pearson correlation value is 0.354. This

implies that use of adequate, motivated, well trained and skilled human resources influences

contractors’ perfonnance, hence successful completion of projects.

4.9.3 Correlation between Site Characteristics and Contractors’ Performance

There exists a correlation between site characteristics and contractors’ performance although the

Pearson correlation = 0.214 is not statistically significant at all. Employing 0.05 significance

levels, this was supported by a significance value of 0.210 > 0.05.

4.9.4 Correlation between Design Quality Aspects and Contractors’ Performance

A fairly strong correlation exists between design quality aspects and contractors’ performance

with a Pearson correlation value o f 0.535. Employing 0.01 significance levels, the results are

highly statistically significant with a significance value of 0 .0010.01 . This implies that the use

of quality design and a high level of supervision influence contractors’ performance.

4-9.5 Correlation between Factors

Funher to the above, there exists fair correlation between human resources conditions and

financial issues and design quality aspects, employing a 5% significance level. The association

between them is statistically significant with a significance value of 0.022 < 0.05 and 0.021 <

9.05 respectively.

43

Table 4.21: Correlation analysis

Human

Contractors’ Financial resources Site Design quality

performance issues conditions characteristics aspects

Contractors’ Pearson 1

performance Correlation

Sig. (2-tailed)

N 36

Financial Pearson .318 1

issues Correlation

Sig. (2-tailed) .059

N 36 36

Human Pearson .354’ .382’ 1

resources Correlation

conditions Sig. (2-tailed) .034 .022

N 36 36 36

Site Pearson .214 1 OO 00 .121 1

characteristics Correlation

Sig. (2-tailed) .210 .273 .481

N 36 36 36 36

Design quality Pearson .535” .286 .384* .258 1

aspects Correlation

Sig. (2-tailed) .001 .090 .021 .128

N 36 36 36 36 36

*• Correlation is significant at the 0.05 level (2-tailed).

Correlation is significant at the 0.01 level (2-tailed).

44

4.10 Summary

From the correlation analysis, only two independent variables namely, human resources

conditions and design quality aspects were statistically significant on contractors’ performance.

Financial issues had notable correlation but marginal significance at 0.05 significance level,

while site characteristics had notable correlation but not significant at 0.05 significance level,

hence insignificant.

The correlation analysis also revealed the existence o f fair correlation between human resources

conditions and, financial issues and design quality aspects.

45

CHAPTER FIVE

SUMMARY OF FINDINGS, DISCUSSIONS, CONCLUSIONS AND

RECOMMENDATIONS

5.1 Introduction

This chapter gives the summary of major Findings, discussions, conclusions and

recommendations of the study.

5.2 Summary of Major Findings

The study was aimed at investigating the factors influencing the performance of contractors

of government-funded building projects in Kirinyaga County, Kenya. In general, the study

revealed that based on the responses, the factors studied had influence on the contractors’

performance and consequently, on the successful completion of projects. The study also

revealed a 46.3% success rate of the projects.

The findings also presented within the factors, key critical aspects that affect performance,

from the respondents’ perspective. For financial issues, these were identified as payment

delays and the contractors’ financial capacity. On human resources conditions, these

consisted of the quality and availability of the necessary personnel. In relation to site

characteristics, the key critical aspect was noted as each unique site’s features and the

importance of factoring these in planning of the projects. Finally, in relation to design quality

aspects, critical aspects identified were quality of the design which relates to completeness

and complexity of, and modifications to the design, and efficiency of information flow on

these aspects.

The findings also revealed strong correlation between the contractors’ performance of

government-funded building projects and only two of the independent variables, namely,

human resources conditions and design quality aspects. This implies that changes in human

resources conditions and/ or design quality aspects significantly affect performance.

Further, the findings revealed an association between human resources conditions and two of

the other three independent variables, namely, financial issues and design quality aspects.

This implies that human resources conditions and financial issues mutually affect each other.

46

Similarly, human resources conditions and design quality aspects mutually affect each other.

However, these correlations are fairly weak.

Table 5.1, Table 5.2 and Table 5.3 provide summaries of the major findings of the study as

described above.

Objective Findings Remarks

1. To establish the influence

of financial issues on

Likert scale score:

2.86 (Agree)

Majority of respondents agree that financial

issues influence the contractors’ performance

contractors’ performance of

government-funded

building projects in


97.2% of the

respondents

Majority of respondents said that financial

issues influence successful completion of

projects

2. To determine the influence

of human resources

conditions on contractors’

Likert scale score:

1.88 (Agree)

Majority of respondents agree that human

resources issues influence the contractors’

performance

performance of government-

funded building projects in


94.4% of the

respondents

Majority of respondents said that human

resources issues influence successful

completion of projects

3. To establish the influence

of site characteristics on


Likert scale score:

1.67 (Agree)

Majority of respondents agree that site

characteristics influence the contractors’

performance

government-funded



94.4% of the

respondents

Majority of respondents said that site

characteristics influence successful completion

of projects

4. To determine the influence

of design quality aspects on


Likert scale score:

2.11 (Agree)

Majority of respondents agree that design

quality issues influence the contractors’

perfomiance

government-funded



94.4% of the

respondents

Majority of respondents said that design

quality issues influence successful completion

of projects

Table 5.1: General Findings with respect to the Objectives

47

Dependent variableContractors’ performance of government-

funded building projects

Independent

variables

Pearson’s

Correlation

Value, r

Significance

level

Significance

value Remarks

1. Financial issues 0318 0.05 0.059 > 0.05 Pearson correlation marginally

significant. Weak correlation.

2. Human resources 0.354 0.05 0.034 < 0.05 Statistically significant.

conditions Strong correlation.

3. Site 0.214 0.05 0.210 >0.05 Pearson correlation insignificant.

charactensticsSc- Weak correlation.

4. Design quality 0.535 0.01 0.001 <0.01 Statistically significant.

aspects Strong correlation.

Table 5.2: Summary of Correlation between the Independent and Dependent Variables.

Human resources issues

Pearson’s

Correlation

Value, r

Significance

level

Significance

value

Remarks

1. Financial issues 0.382 0.05 0.022 <0.05 Statistically significant.

Fairly weak correlation

2. Design quality

aspects

0.384 0.05 0.021 < 0.05 Statistically significant.

Fairly weak correlation.

Table 5.3: Summary of Significant Correlation between Independent Variables.

5.3 DiscussionsThe study was aimed at investigating the factors influencing the performance of contractors

of government-funded building projects in Kenya. The development of the research was

anchored on the basic viewpoint that government-funded building projects in Kenya may be

studied from the perspective of general projects, with additional focus on building projects.

The takeoff point was an outline literature review of general performance of projects. Results

reviewed exemplified a general trend of non-successful delivery of projects. The study results

48

present a similar scenario, with revelation of a 46.3% success rate of government-funded

building projects in Kirinyaga County, Kenya.

Project performance was determined on the traditionally-accepted measure of cost-time-

quality triangle. Project success was addressed in terms of only the project management

aspect as postulated in the Al-Tmeemy et. al.,(2010) model. This centered the study on issues

of project performance during the construction phase. This was further operationalised with

reference to government-funded building projects in Kenya. Factors influencing the

contractors’ performance were established through review of various models of, and studies

on, general building projects which provided the theoretical framework. The broad cross

cutting themes thereby identified as fundamentally influencing the contractors’ performance

were: financial issues, human resources conditions, site characteristics and design quality

aspects. These were accordingly, conceptualised as the independent variables in the study.

The study findings reflect the views of the studies and models in the literature review.

Majority of the respondents viewed the identified factors as highly influential on the

contractors’ performance. This is evidenced by the general findings of ‘agree’ and ‘yes’ of

between 1.67 and 2.86 on the likert scale and 94.4% to 97.2% of responses, respectively.

Correlation analysis of the association between the dependent variable and independent

variables provides deeper insight into the respondents’ views. Strong correlation is revealed

between the contractors’ performance of government-funded building projects and only two

of the independent variables, namely, human resources conditions and design quality aspects.

Most of the literature reviewed does not specifically isolate the factors in terms of their

relative importance. However, on the human resources aspect, Abowitz D. and Toole T.,

(2010) highlight the key role played by people in all activities of construction. The strong

correlation in relation to design quality aspects has a strong basis in the ‘complexity’ of

building projects. The explanation is strongly put forth by Hendrickson C., (2008) in his

analysis of the integrated design and construction processes, which are non-independent, with

information and actions transmitted back and forth.

Weak correlation was revealed between contractors’ performance of government-funded

building projects and the other independent variables, namely, financial issues and site

characteristics. This was despite the acknowledgement of these factors as fundamental to

49

building projects success in the literature review. Reasons for this situation may be attributed

to unique characteristics of each project. The respondents identified critical aspects in relation

to financial issues as, payment delays and the contractors’ financial capacity. With reference

site characteristics, they identified the key critical aspect as each unique site’s features. From

this premise both of these factors may significantly differ from project to project depending

on pre-construction phase planning actions.

Another key finding was the association, although fairly weak, between human resources

conditions and two of the other three independent variables, namely, financial issues and

design quality aspects. This again may be attributed to the key role played by people in all

processes of construction. This argument is reinforced by the absence of the fourth factor, site

characteristics, in this association. It is notable that this is the only factor that is independent

of people’s direct influence during the construction phase.

5.4 Conclusion

The study findings fulfill the research objectives and answers research questions on factors

influencing the performance of contractors of government-funded building projects in

Kirinyaga County, Kenya. The findings reflect the propositions contained in various studies

and models as reviewed from literature sources that basically, the factors identified influence

project performance. It further reveals the relative influence of each of the factors, of greatest

significance being human resources conditions and design quality aspects. The findings

further provide pointers to actual ways in which these effects are manifested.

A key derivative of this study is the distinctive emergence of the human resources element as

the prime factor influencing the performance of contractors of government-funded building

projects. This primacy is apparent as the findings also revealed its association with other

fundamental factors.

Essentially, the research findings suggest that addressing all the factors identified, with

particular focus on he human resources and design quality elements would enhance the

contractors’ performance of the projects and ensure higher rates of projects success.

50

5.5 Recommendations

On the basis o f this study, the following recommendations are made:

1. The study recommends that in order to enhance project success, the human resources

element should receive due consideration through ensuring adequacy, and prudent

utilization o f the necessary personnel. This would provide considerable positive

influence on overall project management which would result in higher project success

rates.

2. The study also recommends that design quality aspects in terms of completeness and

complexity of, and modifications to the design, efficiency o f information flow and

supervision should be addressed comprehensively to enhance project success.

3. Financial issues and site characteristics aspects should also be addressed thereby

facilitating higher project success rates. Critical to this is addressing these issues in

pre-construction phase planning actions thus reducing their potential negative effects.

4. Finally, the study recommends addressing and resolving o f the four aspects in an

integrated manner in response to the complexity o f the building project process, thus

ensuring better performance by contractors and enhancing success rates of the

projects.

5.6 Suggestions for Further Study

ITiis research focused on project management issues influencing performance o f contractors

o f building projects during the construction phase. Further research is recommended on

i. pre-construction planning issues

ii. human resources aspects in building projects and

iii. the management, structure and culture of construction firms.

51

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Wealth and Employment Creation, (ERS), 2003-2007. Office of the Prime Minister-

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GOK (2010). The Constitution o f Kenya. Government Printers.

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Hendrickson, C. (2008). Management for Construction. Fundamental Concepts for Owners,

Engineers, Architects and Builders. Prentice Hall. available on

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Khosravi, S. and Afshari, H. (2011). A Success Measurement Model for Construction Projects. A

paper presented at the 2011 International Conference on Financial Management and

Economics. IPEDR vol.l 1 (2011). Singapore: 1ACSIT Press.

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Kimani, M., and Musungu, T., (2010). Reforming and Restructuring Planning and Building Laws and Regulations in Kenya for Sustainable Urban Development. A paper presented

at the 46tn ISOCARP Congress 2010 in Nairobi, Kenya.

Limodio, N. (2011). The Success of Infrastructure Projects in Low-Income Countries and the

Role o f Selectivity. Policy Research Working Paper 5694. The World Bank.

Manana, M.M., van Waveren, C. C. and Chan, K.Y. (2011). The relationship between CIDB

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21-23, Stellenbosch, South Africa.

McBride, S.B. (2008). Site planning and design. Regional Research Institute, West Virginia

University. Retrieved from http://www.rri.wvu.edu/WebBook/McBride/section3.html on

March 10, 2012 at 11.17 pm.

MOPW (2006). Buildings Organization and Operations Manual. Ministry o f Works, Buildings

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Moghram M. (2010). Regulatory Frameworks of the Construction Sector in Yemen: Legal Framework and Suggested Changes. Paper presented at construction workshop

September 28-29, 2010 Sana’a, Yemen Republic.

Moramati-Proinvest (2011 (a)). Modernizing construction: The Kenyan construction industry. Report dated 7/16/2011-Moramati Foundation in conjunction with Proinvest.

Moramati-Proinvest (2011 (b)). Modernizing construction: Upgrade the classification and licensing systems for road and building contractors & consultants. Report dated

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56

http://econ.upm

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APPfcNDIX 1

UNIVERSITY OF NAIROBICOLLEGE OF EDUCATION AND EXTERNAL STUDIES

SCHOOL OF CONTINUING AND DISTANCE EDUCATION DEPARTMENT OF EXTRA MURAL STUDIES P 0 Box 598 - NYERI: T e l: 061-2030460

TO WHOM IT MAY CONCERN12June 2012

SUBJECT : CONFIRMATION LETTER

MUGUIYI MAUREEN WANJIKU - REG. NO.L50/63941/2010

This is to confirm that the above named is a bona fide student of University of Nairobi

pursuing a Master of Arts Degree in Project Planning and Management - in the School of

Continuing and Distance Education - Department of Extra Mural Studies.

She has completed course work and is currently writing the Research Project which is a requirement

for the award of the Masters Degree.

Her topic is ‘‘Factors Influencing the performance of Contractors of Government-funded

Building Projects in Kenya; A case ofKirinyaga County, Kenya”

Any assistance accorded to her will be highly appreciated.

RESIDENT LECTURER MYEPJ & MT. KENYA REGION

57

APPENDIX 2-Muguiyi Maureen Wanjiku

P.O. Box 390l&J'JH 2(112. Kerueova.

Tel:^k

18 June 2012

I t -

Dear Sir,

iu:: LETTER OF INTRODUCTION'

IL Q l'E S T TO CARRY OUT AN ACADEMIC RESEARCH ON PROJECTS MANAGED BY

IKE MIN. OF PUBLIC WORKS- KIRIN YAGA COUNTY

management. I am carrying out an academic research on factors influencing the performance of

contractors o f government-funded building projects in Kenya, specifically the projects managed

by the Ministry of Public Works, Kirinyaga County.

I am kindly seeking your authority to collect data via questionnaires from contractors

undertaking such projects in your area o f jurisdiction. All information that will be collected will

i?e treated with utmost confidentiality.

attached herewith, please find a sample questionnaire for your records.

1 our support will be highly appreciated.

Vours faithfully,

- am a student at the University o f Nairobi pursuing a masters degree in project planning and

No. L50/63941/2010

58

A P P E N D I X 3: S A M P L E L E T T E R O F I N T R O D U C T I O N T O R E S P O N D E N T S

Muguiyi Maureen Wanjiku

P.O. Box 390

Kerugova.

T el:......................................

18 June 2012

The Managing Director

M/s.............................................................

Dear Sir/ Madam,

RE: L E T T E R O F I N T R O D U C T I O N

REQUEST FOR YOUR PARTICIPATION AS A RESPONDENT IN AN ACADEMIC

RESEARCH

1 am a student at the University of Nairobi pursuing a masters degree in project planning and

management. I am carrying out an academic research on factors influencing the performance of

contractors of government-funded building projects in Kenya, specifically the projects managed

by the Ministry of Public Works, Kirinyaga county.

In your position o f authority in a construction firm undertaking such projects, you have been

identified as a principal respondent in the study. Attached herewith is a questionnaire for your

responses. Please respond to the items honestly and completely, and do not include your name in

the questionnaire. All information that you may provide will be treated with utmost

confidentiality.

Kindly return the questionnaire to ............................................. by.......................... Alternatively,

you may call the telephone number above for it to be collected at a place convenient to you.

0ur support and co-operation will be highly appreciated.

Tours faithfully,

Maureen W. Muguiyi

Reg. No. L50/63941/201059

No.APPENDIX 4: SAMPLE QUESTIONNAIRE

Factors in f lu e n c in g th e p e r f o r m a n c e o f c o n t r a c to r s o f g o v e rn m e n t - fu n d e d b u i ld in g

projects in K e n y a : a e a se of K i r in y a g a C o u n ty , K en y a .

(Research conducted with the authority of the University of Nairobi, College of Education and External

Studies. School of Continuing and Distance Education, Department of Extra Mural Studies)

INSTRUCTIONS: The questionnaire has Six sections. Kindly respond to all questions.

All information will be treated with utmost confidentiality. Please tick (V ) in the appropriate

box. Where explanation is requested, kindly be concise.

S E C T IO N I: G E N E R A L I N F O R M A T I O N

1. Age bracket (years): 18-20 O 21-30 Q l - 4 0 D 1-50 I kbove 50 I I

Female2. Gender:

3. Education level:

Male

Certificate

□□ □□ QDiploma L J Degree I__ I Masters and above □

4. Company’s registration category: A or B C U c o r D □ E or F Q or H □

5. No. o f years of operation: less than 5! 1 5 - lo l 1 11-15 1 116-20 1 Lbove 20 I 1

S E C T IO N I I : F IN A N C IA L IS S U E S

6. Kindly respond appropriately to the statements below.

KEY: 1.Strongly Agree 2.Agree 3.Neither Agree nor Disagree 4.Disagree 5. Strongly Disagree

Statement 1 2 3 4 5

i The contract sum is usually equivalent to the tender sum

ii Loans are usually quickly processed by banks and other financial institutions

r We update plans and records o f income and expenditure on a weekly basis

iv Contractors only bid for projects for which they have the capacity to undertake

fv Valuation and certification o f work is completed within the stipulated two weeks period1 V* Valuations for payment are a source of disputes

r Payment certificates are honoured within the stipulated two weeks period

Do you think financial issues influence successful completion of projects? Yes l _ l No

IfYes, in what way......................................................................................................................

60

No.

SECTION I I I : H U M A N R E S O U R C E S C O N D I T I O N S

v Kindly respond appropriately to the statements below.

KEY: 1.Strongly Agree 2.Agree 3.Neither Agree nor Disagree 4.Disagree 5. Strongly Disagree

Statement 1 2 3 4 5

i Personnel (skilled, semi-skilled, unskilled and management) is available when required

ii Recruitment o f personnel on the basis of education, training and experience ensures quality of work

iii Sometimes there is excess or shortage of labour available in a particular area

iv Terms of employment (such as daily wages, piece work) affect the work output of personnel

v Ways used to motivate personnel (such as bonuses, time-off, training opportunities) affect productivity levels

vi Assignments are allocated to personnel based on their specialized skills

9. Do you think human resources conditions influence successful completion Yes

of projects?

If Yes, in what way

S E C T IO N IV : S I T E C H A R A C T E R I S T I C S


KEY: 1 .Strongly Agree 2.Agree 3.Neither Agree nor Disagree 4.Disagree 5. Strongly Disagree

Statement 1 2 3 4 5

Means of accessing a site affect the cost and duration o f a project

i The topography and slope affect the cost and duration o f a project___

ii Availability o f utilities (such as water, electricity, sewer) on or near site affect the cost and duration of a project

v Actual soil condition and existing vegetation affect the cost and duration o f a project

v Climatic conditions in an area affect the cost and duration of a project

H Do you think site characteristics influence successful completion

of projects?

IfYes, in what w ay..............................................................................

Y es Q no □

61

No.

SECTION V : D E S I G N Q U A L I T Y A S P E C T S


KEY: l.Strongly Agree 2.Agree 3.Neither Agree nor Disagree 4.Disagree 5. Strongly Disagree

Statement 1 2 3 4 5

i Project documentation (drawings and bills of quantities) is usually accurate and complete

ii Projects undertaken can usually be done to completion using skilled personnel and machinery

iii Design changes affect the work programme and cost of a project

iv The cost o f materials is dependent on their availability

V The types of materials specified determine the amount o f time taken for their procurement and delivery

vi Relevant information is usually communicated within a reasonable period of time

vii A qualified overall supervisor must be on site at all times

viii Project team site inspections are held bi-weekly and site meetings are held monthly as stipulated

13. Do you think design quality aspects influence successful completion

of projects?

If Yes, in what w ay....................................................................................

Yes ]no □

S E C T IO N V I : P R O J E C T P E R F O R M A N C E


KEY: l.Strongly Agree 2.Agree 3.Neither Agree nor Disagree 4.Disagree 5. Strongly Disagree

Statement 1 2 3 4 5

' Projects are done within the approved cost

ii Projects are completed within the contract duration

' iii Projects executed conform to specifications

Thank you for your participation.

62

APPENDIX 5: FREQUENCY TABLES OF QUESTIONNAIRE RESPONSES ONVARIABLES

1. Financial issues

Frequency Percent Valid Percent Cumulative PercentValid Strongly agree 5 13.9 13.9 13.9

Agree 12 33.3 33.3 47.2Neither agree nor disagree 13 36.1 36.1 83.3

Disagree 6 16.7 16.7 100.0Total 36 100.0 100.0

Loans are usually quickly processed by banks and other financial institutions



Disagree 12 33.3 33.3 91.7Strongly Disagree 3 8.3 8.3 100.0

Total 36 100.0 100.0

We update plans and records o f income and expenditure on a weekly basis




Total 36 100.0 100.0

Contractors only bid for projects fo r which they have the capacity to undertake



Disagree 14 38.9 38.9 100.0Total 36 100.0 100.0

Valuation and certification of work is completed




Total 36 100.0 100.0

63

The contract sum is usua : to the tender sumFrequency Percent Valid Percent Cumulative P

Strongly agree 5 13.9 13.9 13.9Agree 12 33.3 33.3 47.2

Neither agree nor disagree 13 36.1 36.1 83.3Disagree 6 16.7 16.7 100.0

Valuations for payment are a source of disputes




Total 36 100.0 100.0

Payment certificates are honoured w ithin the stipulated two weeks period




Total 36 100.0 100.0

2. Human resources issuesPersonnel (skilled, semi-skilled, unskilled and management) is available when required



Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0


Agree 17 47.2 47.2 100.0Total 36 100.0 100.0

Sometimes there is excess or shortaq e of labour available in a particular area


Agree 23 63.9 63.9 80.6______ Neither agree nor disagree 7 19.4 19.4 100.0

64

r

Personnel (skilled, semi-skilled, unskilled and management) is available when required

Frequency Percent Valid Percent Cumulative PercentStrongly agree 10 27.8 27.8 27.8


Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0

Terms of employment affect the work output o f personnel


. Agree 24 66.7 66.7 94.4Neither agree nor disagree 1 2.8 2.8 97.2

Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0

Ways used to motivate personnel affect productiv ity levels



Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0

Assignments are allocated to personnel based on the ir specialised skills



Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0

3. Site characteristicsMeans of accessing a site affect the cost and duration of a project

Frequency Percent Valid Percent Cumulative Percent

Valid Strongly agree 10 27.8 27.8 27.8Agree 24 66.7 66.7 94.4

Neither agree nor disagree 1 2.8 2.8 97.2Strongly Disagree 1 2.8 2.8 100.0

Total 36 100.0 100.0

The topography and slope affect the cost and duration of a project


_ Agree 23 63.9 63.9 100.0

65

3. Site characteristicsMeans o f accessing a site affect the cost and duration of a project



Strongly Disagree 1 2.8 2.8 100.0Total | 36 100.0 100.0

Availab ility o f utilities on or near s ite affect the cost & duration of a project


Agree 21 58.3 58.3 100.0Total 36 100.0 100.0

Actual soil condition and existing vegetation affect the cost & duration of a project


Agree 17 47.2 47.2 100.0Total 36 100.0 100.0

Climatic conditions in an area affect the cost and duration of a project



Strongly Disagree 1 2.8 2.8 100.0Total 36 100.0 100.0

4. Design quality issuesProject documentation is usually accurate and complete

Frequency Percent Valid Percent Cumulative PercentValid Agree 10 27.8 27.8 27.8


Strongly Disagree 1 2.8 2.8 100.0

Total 36 100.0 100.0

Projects undertaken can usually be done to completion using skilled personnel and machinery



Total 36 100.0 100.0

Design changes affect the work programme and cost of a project


____ Agree 14 38.9 38.9 100.0

66

Project documentation is usually accurate and complete

Frequency Percent Valid Percent Cumulative PercentAgree 10 27.8 27.8 27.8


Strongly Disagree 1 2.8 2.8 100.0Total | 36 100.0 100.0 _ L

The cost of materials is dependent on their availability



Disagree 2 5.6 5.6 100.0Total 36 100.0 100.0

The types o f m ateria ls specified determine the amount of time taken o f their procurement and delivery



Total 36 100.0 100.0

Relevant information is usually communicated w ithin a reasonable period of time



Disagree 3 8.3 8.3 100.0Total 36 100.0 100.0

A qualified overall supervisor must be on site at all time



Total 36 100.0 100.0

Project team site inspections are held b i-wekly and site meetings are held m onthly as stipulated




67

Relevant information is usually communicated w ithin a reasonable period o f time



Disagree 3 8.3 8.3 100.0Total 36 100.0 100.0

5. Project performanceProject are done within the approved cost




Total 36 100.0 100.0

Projects are completed within the contract duration



Disagree 9 25.0 25.0 100.0Total 36 100.0 100.0

Projects executed conform to specifications



Disagree 2 5.6 5.6 100.0Total 36 100.0 100.0

68

APPENDIX 6: RAW DATA

X2 X4XI HUMAN X3 DESIGN Y

FINANCIAL RESOURCES SITE QUALITY CONTRACTORS’ISSUES CONDITIONS CHARACTERISTICS ASPECTS PERFORMANCE

3.57 1.83 1.2 2.25 2.673.14 1.83 1.2 1.88 23.29 1.33 1 1.88 22.57 2.17 2.2 2.75 2.672.57 1.67 1.4 1.63 23.71 2.17 1.2 2.25 3.333.71 1.67 1 2.13 2.332.29 1.67 1.6 1.88 1.672.71 1.67 1.6 1.5 2.333.57 1.67 1.4 2.5 2.672.86 1.83 1.6 1.88 2.331.57 1.33 1 2 23.14 2.17 1 2.63 33.14 2 1 1.25 2.333.14 1.67 2.6 1.88 1.332.43 1.67 1.8 2.25 2.673.14 1.33 2.2 2.25 4.33

3 2.33 1.6 2.25 2.672.57 1.17 2 2.13 2.332.57 2.17 1.8 2.25 2.67

3 2.33 2 2.13 2.672.43 1.67 1.8 2.25 2.672.29 1.5 2 2 2.672.86 2.17 1.6 2.25 2.673.29 2.33 2 2.63 3.332.43 1.5 1.6 2 2.672.57 2 2 2 2.673.0 2.33 2 2.13 2.67

2.14 1.5 2 1.75 2.672.71 2.5 1.6 1.88 32.71 1.5 1.8 2.25 2.672.29 1.5 1.8 2 2.332.86 2.33 1.6 2.13 2.673.43 2.5 2 2.5 3.333.29 2.33 2 2.5 3.673.0 2.5 2 2.5 2.67

69

SYNTAX OUTPUT

COMPUTE X l=m ean(v.6i,v.6 ii,v.6 iii,v .6 iv,v.6v,v.6vi,v.6vii).VARIABLE LABELS X I 'financial issues'.EXECUTE.

COMPUTE X2=m ean(v.8i,v.8ii,v.8iii,v.8iv,v.8v,v.8vi).VARIABLE LABELS X2 'Human resources conditions'.EXECUTE.

COMPUTE X 3 = m e a n (v .l0 i,v .l0 ii,v .l0 iii,v .l0 iv ,v .l0 v ).VARIABLE LABELS X3 'site characteristics'.EXECUTE.

COMPUTE X 4 = m e a n (v .l2 i,v .l2 ii,v .l2 iii,v .l2 iv ,v .l2 v ,v . l2 v i,v .l2 v ii,v .l2 v iii) . VARIABLE LABELS X4 'design qua lity aspects'.EXECUTE.

COMPUTE Y = m e a n (v .l4 i,v .l4 ii,v .l4 iii) .VARIABLE LABELS Y 'contractors ' perform ance'.EXECUTE.

70

APPENDIX 7: RELIABILITY AND VALIDATION STATISTICS

Reliability

Reliability Statistics

Cronbach’sAlpha

Cronbach’s Alpha Based

onStandardized

ItemsN of Itemsm00r- .815 43

Cronbach’s alpha-0.783. This indicates that the tool considered in this analysis was reliableenough.

- Validation

ANOVAb

Model

Sum of

Squares df

Mean

Square F Sig.

Regression 3.589 4 .897 4.037 .009a

Residual 6.890 31 .222

Total 10.478 35

a. Predictors: (Constant), Financial issues, Human resources conditions, Site

characteristics and Design quality aspects.

b. Dependent Variable: Project performance (Contractors’ performance)

71

C lass if ica tio n o f B u ild in g C o n t r a c t o r s in K e n y a

APPENDIX 8:

PROJECT COST Annual Experience FINANCIAL STATUS

CEILING (KSh Million) Registration

General Specialist (KSh) (Years) Annual Liquidity Fixed

Contractors Contractors Turnover Assets

% of % of % of

Class Class Class

S. limit limit limit

Class 5 1 1000 - N/A N/A N/A

H1 Class 10 2 1000 - N/A N/A N/A

G

Class 20 4 1000 2 75% 5% 20%

F

Class 50 10 3000 4 75% 5% 20%

E

Class 100 20 3000 4 75% 5% 20%

D

Class 150 30 3000 6 75% 5% 20%

C

Class 250 50 5000 8 75% 5% 20%

B

Class Unlimited Unlimited 5000 10 75% 5% 20%

! A1

Classification for registration and upgrading of building contractors in Kenya

(Source: Ministry o f Public Works, Republic of Kenya - December 2004)

72

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