Clear, Hold and Build: Conditions and practices characterising construction in conflict and post-conflict settings

The study addresses construction in the context of increased political instability and violence that characterise conflict and post-conflict settings. Effects of political instability and violence upon conditions surrounding construction projects and the ways that construction practitioners respond to these conditions are investigated. Conflict and economic growth are associated such that conflict and post-conflict situations typically occur in poorer countries at earlier stages of economic development. Therefore, the study commences with a review of statistical indicators that identifies how conditions surrounding construction in conflict-affected countries differ from conditions in other developing countries that are not affected by recent conflict. Four case studies then focus on relationships between prevailing conditions, construction practices and project outcomes: Afghanistan from 2002 to 2012, Timor-Leste from 2007 to 2012, South Sudan from 2005 to 2012 and Pakistan from 2007 to 2012. In each case study, semi-structured interviews draw on knowledge and experience of practitioners, with corroboration from statistics and observations. Statistical indicators of prevailing conditions are used to position each case in relation to the broader group of conflict and post-conflict settings, supporting synthesis and generalisation of case-specific findings. Notwithstanding significant differences between individual conflict and post-conflict situations, conflict is found to exacerbate many of the problematic conditions surrounding construction that other studies have associated with construction in developing countries in general. The regulatory environment surrounding construction is particularly susceptible to effects of political instability and violence, including the effectiveness of construction regulation, the reliability of the legal frame for contracting and the prevalence of corruption. While increased political instability and violence is associated with restricted availability and mobility of construction practitioners, particularly client representatives and consultants engaged in monitoring works and administering contracts, access to other construction resources such materials and equipment may be less affected. In the context of weakened regulatory environments, shortened investment horizons in unstable settings can promote opportunism among various practitioners. Opportunistic practices identified in the study include: fraudulent materials testing; various forms of petty and grand corruption; collusion, fraudulent bidding and excessive under-bidding in competitive tenders; reassignment of awarded contracts; and intentional compromises to construction quality. Positive practices are also identified in the study, including strategic award of contracts by clients and investment by contractors, which can support improved construction supply capacity despite problematic conditions. Beyond immediate project outcomes, these practices can potentially have more significant political implications and enduring effects upon construction industry development. Increased prevalence of dysfunctional practices suggests a limited effectiveness of standard construction procurement and tendering arrangements in the context of weakened regulatory environments and shortened investment horizons. Several measures are proposed to support improved effectiveness of standard procurement and contracting arrangements.