I already mention in developing countries

@📷

Uchendu E. Chigbu

Irrespective of location, the need to ensure that scarce funding is applied to effective projects is a goal shared by all. Focusing on common parameters of project performance is a means to that end. Six parameters are always given weight in methodologies for project management. They are (i) time, (ii) cost, (iii) human resources, (iv) scope, (v) quality, and (vi) actions.

By gauging performance against these parameters, an image of the parts of a project that are in order and of those that are not can be formed. Is the activity on schedule? Is the activity within budget? How many human resources are being expended? Is the activity’s scope in line with original expectations? Is project personnel analyzing and fixing problems with quality actions? Are actions outstanding?

It is improper to generalize or simplify: but, past the six generic issues mentioned earlier (and signal weaknesses in the areas of cost overruns and the quality of structures), hamstrung also by deficient procurement systems, the construction industry in developing countries finds it difficult to meet booming infrastructure and housing needs from rapid urbanization (and therefore—in a vicious circle—cannot pay sufficient attention to good practices). Because the construction industry is a barometer of economic performance, any downturn will also surely impact it.

Article Focusing on Project Metrics

Regardless of location, corruption is the most important challenge the construction industry faces. It plagues developed and developing countries alike. Consequently, surveys consistently reveal corruption to be higher in construction than in any other industry or sector of the economy. This is probably because construction industries are particularly susceptible to corrupt practices in licensing, taxation and obtaining government contracts. Further, the characteristics of the construction industry - e.g., complex technical requirements of projects; competition for ‘make or break’ contracts; large numbers of contractors and providers of goods and services; the numerous levels of official approvals and permits; the uniqueness of many projects; complex contractual and project implementation structures; and the opportunities for delays and overruns - and the simple fact that the quality of much work is rapidly concealed as it is covered over by concrete, plaster and cladding make the industry particularly prone to corruption [1]. Transparency International’s 2002 Bribe Payers Index, as summarized in the Global Corruption Report 2003, thus reported that construction/public works are perceived to have the highest level of bribery of any sector, higher than both the arms industry as well as the oil and gas sector. Similarly, a survey of business leaders in six developed countries - Britain, Germany, Hong Kong, Netherlands, Singapore and the United States - also found construction/public works to be the most corrupt sector of all (see Facing Up to Corruption 2002 by Control Risks).

Corruption is particularly an important challenge in the construction industry because apart from it been a complex problem that defies simplistic solution, its scale within the industry is magnified by the size and scope of the industry. No wonder the construction industry is said to have a worldwide reputation for incidences of corruption [2]. Corruption takes many forms within the industry from the allocation of lucrative monopolies and fraud - such as overcharging for construction - to poor construction due to, e.g., the use of cheaper and sub-standard materials. And although these practices differ in scale, they all contribute to the same results such as weak operational and financial performance and declining service quality or reduced chances of ever accessing network services, especially for the poor [2].

It is worth noting that whilst corruption is a challenge on its own on the one hand, it fans the ember of other challenges the construction industry faces such as complexity and weaknesses in organizational design and capabilities on the other hand. This makes it even more important and challenging to deal with. It thus worsens both cost and time performance and the benefits delivered and distorts competition to result in poor-quality goods and service, thereby wasting money to, in turn, bankrupt countries and cost lives. More so, the topic of corruption is highly controversial; its definition might be particularly challenging and to some extent contradictory probably because the concept of corruption, in legal terms, applies to physical persons as a matter of penal liability [3].

The under listed readings, although not exhaustive, might be helpful.

Further readings

[1] Stansbury, N. (2005). “Exposing the Foundations of Corruption in Construction” in Transparency International’s Global Corruption Report 2005: Corruption in Construction and Post Conflict Reconstruction. Available at: https://www.transparency.org/whatwedo/publication/global_corruption_report_2005_corruption_in_construction_and_post_conflict

[2] Sohail, M. and S. Cavill (2008). "Does Corruption Affect Construction?". CIB W107 Construction in Developing World Countries International Symposium, “Construction in Developing Countries: Procurement, Ethics and Technology”, Trinidad and Tobago, West Indies.

[3] Locatelli, G., G. Mariani, T. Sainati and M. Greco. (2017). "Corruption in public projects and megaprojects: There is an elephant in the room!" International Journal of Project Management 35(3): 252-268.