Saturday 22 June 2013

Factors Affecting Construction Productivity in Cambodia

In majority, the time and cost over-run in the project can be assumed to either unforeseen or foreseen events for which uncertainties are not properly accommodated (Perry & Hayes, 1985). Similarly, the construction industry in Cambodia is also currently suffering from project delay and cost over-run because of low productivity. The main reason is being almost all contractors have a very limited knowledge in construction management. They persist on their past experience and professional ability only.

Moreover, in the book “The Construction Industry” (WorldBank, 1984) concluded that due to the limited skills, knowledge and resources on developing countries, a large amount of projects were won by foreign contractors. Other problems identified in the report included inefficiencies in using material, tool and equipment, imbalances in organizational structure, limited funds, poor planning and lack of human resource development. Many of these problems are endemic within the Cambodia construction industry nowadays.
In other to deal with this problem, the current weaknesses must be found out. It means one of the important things that have to be considered now is the productivity. It has been remarked that productivity improvement can significantly reduce overall project costs and schedule delays. Failure to improve productivity to match the increasing labor wages has pushed the construction cost. Then, productivity improvement is something that every Cambodian contractors should be aware of advantage pursue. Construction personnel understand the importance of productivity improvement and know how to improve productivity is prerequisite of productivity improvement.

The site productivity problems/inefficient encountered by the construction workforce first has to be tackled as they are the root causes leading to the low productivity. If the most important affecting factors in any contracting organization are identified, measures can then be taken to apply them in order to upgrade the contractor’s performance (Ofori & Chan, 2001). With an increasing productivity, the local contractors are able to mitigate the construction cost and therefore benefit from a higher profit. Likewise, the contractor can even offer a lower bidding price to increase his competitiveness. That is the reason why a site level investigation is conducted in this research. Mr. Hong Meng made a case study to assess the management understanding on productivity. The knowledge and understanding in productivity among the construction personnel is the basement of productivity improvement. His research also aimed to:  
(2)     investigate what are the management practices effect construction productivity of Small and Medium Project in SMEs in Cambodia.
(3)     investigate the critical factor effecting construction productivity in Cambodia.
(4)     provide some recommendations and suggestions for productivity improvement under the construction situation in Cambodia.

Conclusion

1. Study the productivity of Small and Medium project in SMEs
The finding indicated that in term of Labor Productivity (LP) and Percentage Plan Complete (PPC), Small Project had higher productivity than in Medium Project. The main reason is that Small project has smaller scope of work than the Medium one. By the way, there is no significant difference between the productivity of Small and Medium Company because they are both using similar management style: follow pass experience, same technologies and type of labor skill.

2. Effect of management practice on productivity of Small and Medium Project in SMEs

The outcome of this objective is that in Cambodia, there were similarly seven factors of practical management which has effect on productivity between Small and Medium Project. There are payment to staff on time, conduct activity checklist, develop WBS, assign the work base on their skill, reward outstanding performance, recruit skill worker, and team building trust.
Likewise, there were also seven critical factor of management practice which affect the productivity between Small and Medium Company such as assign the work base on their skill, payment to staff on time, conduct activity checklist, reward outstanding performance, team building trust, develop WBS, and assign clear responsible to staff.

All in all, among 30 factors of management practice improve construction productivity in Cambodia, the majority of respondents agreed that the first top ten critical factors needed to consider in order to increase productivity of small and medium project in SMEs are ranked from the most important to the less important as following; Rank1:Assign the work base on their skill, Rank2: Conduct activity checklist, Rank3: Payment to staff on time, Rank4: Reward outstanding performance, Rank5: Develop WBS, Rank6: Recruit skill worker, Rank7: Develop method statement, and Team building trust, Rank9: Develop site layout plan, and the last ranking is Assign clear responsible to staff.

3. Factors effecting construction productivity in Cambodia

The results from the analysis showed that the top ten critical factors which have positive effect on productivity are: (1) Skill & Experience workers, (2) Good site layout, (3) Competent and Experience manager, (3) Quality Construction, (5) Qualify sub-contractor, (6) On time procurement and material supply, (7) Good project scheduling, planning, and controlling, (8) Competent supervisor, (8) Provide complete and accurate drawing, and the last one (10) No change order from owner.  Among overall factors affecting construction productivity, it was found out that Engineer and Sub-contractor are the most critical group and the second one is H.O & Management factor. Material, equipment and tool are the third important group.

Recommendation

Base on the result of this study, construction productivity shall be improved and met their goals if they will be able to alleviate the effect of adverse factors, and be focused on the top 10 critical factors as mentioned above. Moreover, more effective management methods and techniques are required to improve the construction productivity too. Since the productivity improvement will not only make an organization more profitable, but also increase its chance of survival in the industry, especially as there is very high competition due to economic crisis. If improvement in many organizations’ productivity can be facilitated, overall construction productivity in Cambodia will also be improved.
Further recommendations from the respondents reveal that construction productivity could be improved if contractor must have enough assets for processing the project and have clearly contract with the owner.
His thesis abstract is copied below.

Abstract

Construction productivity in Cambodia is still low which required to be improved in order to compete with foreign contractor. As we know that in a rapidly developing and competitive market, the importance of delivering a project on schedule within cost and quality is high priority. Moreover, by running the project with high productivity, the contractor can gain benefit in terms of earlier revenue, financial return. And more than that, the unquantifiable benefit is from the improvement of company reputation in market, and the risk on construction can be earlier transferred. On the contrary, the local contractor company nowadays, they are mostly managing the project by following their pass experiences which is often delayed with overrun budget.
By the questionnaire survey and data analysis, the results of this study show that construction productivity in Cambodia shall be improved and met their goals if the contractor be able to alleviate the effect of adverse factors. The outcomes show that the high impact productivity improvement factors are (1) Skill & Experience workers, (2) Good site layout, (3) Competent and Experience manager, (3) Quality Construction, (5) Qualify sub-contractor, (6) On time procurement and material supply, (7) Good project scheduling, planning, and controlling, (8) Competent supervisor, (8) Provide complete and accurate drawing, and the last one (10) No change order from owner.

Keyword : Construction Productivity, Labor Productivity, Percentage Plan Completed, Small and Medium Project,  SMEs

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