Valentin, W S and Vorster, F S (2012) Understanding construction project failure in Southern Africa. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 165(1), pp. 19-26. ISSN 17514312
Abstract
A failed construction project is loosely defined as a contract that was terminated or cancelled by either of the two parties to the contract. Given the unique nature of each construction project, its multitude of physical, geographical and commercial variables and the host of interested parties involved (each with different intentions and expectations) it is remarkable that so few projects fail. Some projects, however, do fail, and this research paper seeks to identify the reasons. This study researched approximately 13 000 projects in southern Africa executed during the period 2004 to 2009. Failures were documented and categorised after analysing every default recorded within the company's internal bonding database since 2004. Owing to the limited number of failures and the seemingly infinite combination of variables that contributed towards project failure, obtaining reliable default probability data was a challenge. Statistically reliable conclusions could not be formulated; however, this research highlighted a number of significant facts which either confirm or question historical assumptions. These findings will complement sound and experienced judgment by all decision-makers, which remains the primary driver to the successful completion of construction projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | failures; probability analysis; risk |
| Index terms: | construction project, default, probability analysis, research paper, judgment, Africa, project failure, database |
| Subjects: | production management, research dissemination and communication, project completion, data management, statistical analysis, dispute resolution, regions and continents |
| Topics: | Legal Issues, Geographical Context, Project Management, Digital Applications, Information Management, Research Practice |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here