EVALUATION OF THE CRITICAL SUCCESS FACTORS FOR SAFETY IN THE

SOUTH AFRICAN CONSTRUCTION INDUSTRY

by

MAIMELA VINCENT CHUENE

A DISSERTATION

Submitted in fulfilment of the requirements for the degree

BACHELOR TECHNOLOGIAE

in

QUANTITY SURVEYING

in the

FACULTY OF ENGINEERING AND THE BUILT ENVIRONMENT

at the

UNIVERSITY OF JOHANNESBURG

SUPERVISOR: PROF. C.O. AIGBAVBOA

CO-SUPERVISOR: MR T. OSUNSAMI
 2019

CRITICAL SUCCESS FACTORS FOR CONSTRUCTION SAFETY IN THE SOUTH

AFRICAN CONSTRUCTION INDUSTRY

MAIMELA VINCENT CHUENE

SUPERVISOR: PROF. C.O AIGBAVBOA

BACHELOR TECHNOLOGIAE

A DISSERTATION submitted in partial fulfillment of the award of the degree bachelor of

Technologiae in Quantity Surveying in the Faculty of Engineering and the Built Environment,
Department of Construction Management and Quantity Surveying at the University of
Johannesburg, Republic of South Africa.

JOHANNESBURG, DECEMBER 2019

 DECLARATION

I, VINCENT CHUENE MAIMELA, do hereby declare that this dissertation is the result of my
own investigation and research, except to the extent indicated in the references and by comments
included in the body of the report and that it has not been presented elsewhere for a similar
purpose. It was submitted to the University of Johannesburg (Department of Quantity Surveying
and Construction Management), as a requirement to obtain a BACHELOR TECHNOLOGIA
degree in Quantity Surveying.

________________________ _____________________
Signature Date
University of Johannesburg
Doornfontein

i
 ACKNOWLEDGEMENTS

First and foremost I would like to expression my gratitude to the Almighty God. I am forever
grateful for the ability to visualise, plan, and implement anything I put my mind to through the
power of dominion that He has vested in me. Furthermore, my expressions of gratitude are
directed to God once more for His omnipresent Holy Spirit which protected and guided me all of
my life, giving me strength and wisdom which brought me this far.

ii
 DEDICATION

I dedicate this dissertation to my

iii
 ABSTRACT

Keywords: Safety performance, Safety measurement, best practices in Safety, factors

influencing safety

iv
 TABLE OF CONTENTS

DECLARATION ........................................................................................................................................... i
ACKNOWLEDGEMENTS .......................................................................................................................... ii
DEDICATION ............................................................................................................................................. iii
ABSTRACT................................................................................................................................................. iv
TABLE OF CONTENTS .............................................................................................................................. v
LIST OF TABLES ...................................................................................................................................... vii
LIST OF FIGURES .................................................................................................................................... vii
LIST OF MAPS ........................................................................................................................................... ix
LIST OF ABBREVIATIONS ....................................................................................................................... x
CHAPTER ONE ......................................................................................................................................... 1
INTRODUCTION ........................................................................................................................................ 1
1 BACKGROUND OF THE STUDY ................................................................................................. 1
1.1 PROBLEM STATEMENT ............................................................................................................... 2
1.2 RESEARCH QUESTIONS............................................................................................................... 3
1.3 RESEARCH OBJECTIVES ............................................................................................................. 3
1.4 PURPOSE OF THE STUDY ............................................................................................................ 3
1.5 RESEARCH METHODOLOGY ...................................................................................................... 3
1.6 RESEARCH DESIGN ...................................................................................................................... 4
1.6.1 RESEARCH METHOD AND TECHNIQUE .......................................................................... 4
1.6.2 RESEARCH AREA AND TARGET ....................................................................................... 4
1.6.3 SAMPLING AND DATA COLLECTION .............................................................................. 4
1.6.4 LIMITATION ........................................................................................................................... 5
1.6.5 SCOPE OF THE STUDY ......................................................................................................... 5
1.6.6 ETHICAL CONSIDERATION ................................................................................................ 5
1.7 OVERVIEW OF CHAPTERS .......................................................................................................... 6
1.9 CONCLUSION ............................................................................................................................. 7
CHAPTER TWO ........................................................................................................................................ 8
LITERATURE REVIEW: OVERVIEW OF ASSESSING CRITICAL SUCCESS FACTORS FOR
CONSTRUCTION SAFETY IN SOUTH AFRICA..................................................................................... 8
2 INTRODUCTION ............................................................................................................................ 8
2.1 A GENERAL OVERVIEW OF SOUTH AFRICA ...................................................................... 8
2.2 DEFINITION OF SAFETY ................................................................................................ 10
2.2.1 Citical Success Factors(CSF) .............................................................................................. 10

v
 2.3 OVERVIEW OF SAFETY PERFORMANCE ............................................................................... 12
2.3.1 Key Performance Indicators(KPIs) ..................................................................................... 15
2.4 Safety Performance Measurement ..................................................... Error! Bookmark not defined.
2.4.1 Traditional Approach Of Measuring Safety Performance ................................................... 16
2.3.2 Leading Safety Inddicators ................................................................................................. 17
2.3.3 Key Performance Indicators(KPIs) .................................................................................... 20
2.4.4 Safety Management Systems (SMS……………………………………………………………………………….21

2.5 Best Safety Practices In The Construction ................................................................................... 24

2.5.1 A Frameworkfor Best Practices In Ohs ............................................................................. 25
2.5.2 Safety Performance Improvement ..................................................................................... 28
2.5.3 Safety Climate.................................................................................................................... 31
2.6 Factors Affecting The Improvement Of Safety Performance ........................................................ 32
2.7 CONCLUSION ........................................................................................................................... 36
CHAPTER THREE .................................................................................................................................. 37

CHAPTER FOUR.........................................................................................................................................
REFERENCES ..............................................................................................................................................
APPENDIX 1: Cover Letter.........................................................................................................................
APPENDIX 2: Questionnaire ......................................................................................................................

vi
 LIST OF TABLES

Table 2.3.4 Developments of leading safety indicators in the construction industry ………18

vii
 LIST OF FIGURES

Figure 2.4 Primary performance parameters …………………………………………….……13

Figure 2.5.1 Refined conceptual model for H&S performance improvement for SMEs…...…28

viii
 LIST OF MAPS

Figure 2.1 Map of South Africa……………….…………………………………………………..9

ix
 LIST OF ABBREVIATIONS

CIDB-Construction industry development board

CII- Construction Industry Indicators
CREATE-Construction Research Education and Training Enterprises
CSF- Critical Success Factors
DOL- Department of labour

DPW- Department of labour

EFCA-European Federation of Engineering Consultancy Associations

GDP -Gross Domestic Product

H&S -health and safety
ILO-International labour organization
KPIs- Key performance indicators
PPIs-Positive performance indicators
NOHSC- National occupational health and safety commission
OHSMSs- Occupational health and safety management systems
SEIs- Safety Effectiveness Indicators.
SMS-Safety management system
SEFA- Small Enterprise Finance Agency

SMEs-Small medium sized enterprises

SMS-Safety management system
SMTs- Safety management tasks
STATS SA-Statistics South Africa
SMTs- Safety management tasks

x
PPIs- Positive performance indicators

xi
 CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Construction Health and Safety (H&S) performance improvement has also been a priority in
previous years and has therefore attracted a lot of the industry’s attention. Although the
contribution of the South African construction industry to GDP has also declined from 7% in
1970 to approximately 3% in 2000 (Dlungwana, Nxumalo, Huysteen, Rwelamila & Noyana,
2002: CD-ROM. The construction industry also provides a variety of infrastructure such as
houses, schools, transport infrastructure and other facilities on which we rely on .The industry is
contributing to the improvement of people's quality of life, both socially and economically.
However, those involved in construction are at high risk of pain, injury and accidental death,
affecting not only them, but also their friends and families (ILO, 1991).

The Construction Industry Development Board (CIDB, 2009a) identifies that many stakeholders
have made significant efforts to improve H&S in the construction industry, while overall H&S
construction does not improve accordingly. In particular, despite efforts to promote positive
health and safety in the industry, construction continues to contribute a disproportionate number
of fatalities and injuries compared to other industrial sectors. The improvement has not been
significant. Previous studies have highlighted the roles and contributions of various stakeholders
in encouraging and promoting H&S in construction, some prominent of these include industry
associations such as MBSA, national MBAs and SAFCEC, but are primarily concerned with
their members. In March 2003, South Africa approved the Occupational Health and Safety
Convention (155 of 1981) by ILO. Which mostly emphasize in best practices and improving
safety in the construction industry. The International Labor Organization (2002) points out that
there is a need to improve awareness and promotion of occupational health and safety (OH&S)
as a means of demonstrating that safety pays when improving productivity.

1
1.1 PROBLEM STATEMENT

Despite the advancement in legislation in the form of the Construction Regulations promulgated
in July 2003 to improve Safety in construction. The high number of injuries and fatalities seem
to be a source of concern (Agumba, 2013).The fast globalization of the South African economy
has been at the heart of these problems. Despite initiatives and campaigns on occupational health
and safety (OH&S), recent statistics from Federated Employers ' Mutual Assurance Company
Limited (FEMA) show a high number of injuries and deaths at construction sites (FEMA, 2013).

The international labour organization also devised some codes of practice comprising practical
guidelines for employers, employees, public authorities and specialised occupational health and
safety protection entities. Nonetheless, the codes of practice are not legally binding and do not
replace national laws but are simply guiding principles for health and safety in various economic
sectors (ILO, 2003a). Nonetheless, with these practices of improving safety been implemented, it
has been reported that there are still some issues despite efforts to prevent occupational hazards
and to promote health. Pipitsupaphol and Watanabe (2000) presented a statistical distribution of
accident factors. They found that on average, accidents are mainly related to management
(29.2%), for instance, poor inspection programs, the lack of safety education programs and the
poor safety policies and to add on perceived safety performance measurements.

The rate of growth of the construction of South Africa has been increasing alarmingly, with
many projects being implemented most of the time. This means that the number of construction-
related accidents is also increasing, resulting in increased losses due to injuries and death. The
industry employs a higher percentage of people in a country, between 9 and 20 per cent.
Nevertheless, the rise in this industry has had its own implications, primarily injuries that happen
in the workplace (ILO, 1999).

The implication of this study is to find the critical success factors that would be beneficial for
construction safety performance. The performance of H&S has faced challenges such as poor
management and lack of knowledge leading to injuries on site, this study aid towards adapting
best practices and successful factors for safety performance in the construction industry,
particularly in a country with many diverse interpersonal difference and deficiency of knowledge
on site and an increased foreign attraction.

2
1.2 RESEARCH QUESTIONS

This part of the research seeks to answer the following:

1.2.1 What are the factors that will guarantee improvement of Safety performance in
construction?
1.2.2 How does the implementation of safety performance measurement affect
performance in construction?
1.2.3 What are the best practices in construction that promote safety performance?

1.3 RESEARCH OBJECTIVES

1.3.1 To assess factors that influence improvement of safety in the construction industry.
1.3.2 To assess the safety performance measurements in construction.
1.3.3 To evaluate the best practices of senior management in terms of safety performance.

1.3.1 AIM
1.3.1 To evaluate the perception of safety performance measurement indicators.
1.3.2 To evaluate the applicable best practices in safety performance in construction.
1.3.3 Evaluate the factors that influence the improvement of safety performance.

1.4 PURPOSE OF THE STUDY

The health and safety of South Africa joined with the fact that the construction industry all over
the world is a major contributor in emerging a country’s infrastructure. The high number of
Safety and health failures proposes the existence of life-threatening factors which have not been
identified and are not entirely pinpointed. Therefore, the purpose of this study is to examine
Safety performance and its measurement indicators, and to evaluate best practices for safety
performance in the construction industry as an aid of mitigating hazards on site.

1.5 RESEARCH METHODOLOGY

Research methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic and it is also numerical data, is used to obtain information
through a systematic, formal and also objective process (Burn and Grove,1993: 26). It also

3
endorses the way for the researcher to make several choices concerning the environment in
which the research is to occur (South African Council Quantity Surveying Profession, 2014:18).
The quantitative approach was adopted for this research. It's known to be scientific and deductive
in nature. This is because it simplifies events to the point where they can be measured, tested and
investigated. The methodology enables the researcher to identify the methods, tools and
techniques to be used for data collection.
1.6 RESEARCH DESIGN

For this research, a quantitative approach was adopted. A descriptive survey design was applied
and a questionnaire was prepared and distributed to the respondents by the researcher. A well-
structured questionnaire survey was conducted among construction professionals (construction
managers, Architectures and construction workers). Descriptive statistics such as percentage,
frequency, mean item score and standard deviation were used to analyze the data A descriptive
survey design was applied and a questionnaire was prepared and distributed to the respondents
by the researcher.
1.6.1 RESEARCH METHOD AND TECHNIQUE

The research methodology describes the process in which the study will be conducted. It also
paves the way for the researcher to make a number of decisions regarding the setting in which
the study is to take place. (South African Council Quantity Surveying Profession, Mod.18: 25).
Two methods can be used for information collection and analysis, namely the qualitative and
quantitative approaches. For this study, the quantitative approach was adopted, as the tested
hypotheses is derived from theory and/or being able to estimate to the size of a phenomenon of
interest.

1.6.2 RESEARCH AREA AND TARGET

The research was conducted in Gauteng, South Africa and the targeted respondents were
professionals in the South African construction industry. The City of Gauteng was found to be
suitable as it is an area the researcher originates from, which will make it easier to collect data
from the respondent.

1.6.3 SAMPLING AND DATA COLLECTION

4
A sample is the selection of a portion of the total population that the researcher wishes to study.
The sample should be representative of the population. Alvi (2016: 11), described sampling as a
process where a sample is extracted from a population. The group from which the data is drawn
is a representative sample of the population and the results of the study can be generalized to the
population as a whole. Burns and Grove (1993:245) stated four main methods of non-probability
technique for sampling: Convenience sampling, Snowball sampling, Purposive sampling, Quota
sampling. For these study, Convenience or accidental sampling – members or units are selected
based on availability. A questionnaire prepared based on the literature reviewed was used as a
tool for collecting data from the respondents.

The method that was used to collect the data was the self-administrative which is a very
resourceful method and has a high response rate as the researcher is in contact with the
respondents. And following the researcher distributes the questionnaires and also collects them
after the agreed time, further more explains the importance of the research and its relevance as
well as attending to any questions the respondents might have (Oppenheim, 1992:103).

1.6.4 LIMITATION

The research assessment was based on construction professionals in the Gauteng province in
South Africa. The respondent’s architects, quantity surveyors, civil engineers, construction
managers, construction project managers. This study determines the successful factors that
improve and promote a successful construction health and safety on site.
1.6.5 SCOPE OF THE STUDY

This research was centered on the construction industry of Gauteng South Africa on the basis
that it’s the largest city and all the major reforms in South Africa start from here. This research
only assesses factors that improve safety performance and the effect of H&S management
practices on performance in the construction.
1.6 ETHICAL CONSIDERATION

This study taken has into consideration the professionals in the industry who have contributed to
the literature by ensuring that their work is properly cited and recognized. The participants who
responded to the questionnaire were given the obligation that their input would be kept
confidential and only be used for academic use only.

5
1.7 SIGNIFICANCE
The South African construction industry produces a high rate of accidents and more than 50% of
these incidents occurring on site can be avoided through mitigating of hazards and risk. Safety
performance improvement is inevitable and needs proper attention .Improvement must be fully
implemented to accommodate a multinational/ cultural workforce. These study is aimed at
increasing the knowledge of construction professionals on Safety performance improvement in
the construction industry.

1.8 OVERVIEW OF CHAPTERS

Chapter One

Introduction

This section introduces the research topic through the means of definition, scope and the problem
statement. It also introduces a comprehensive background study in detail, by describing the
problem to be investigated and shows how the problem is going to be investigated.
Chapter Two

Literature review

This chapter reviews other literature from the significance of health and safety and its actual
effect on the performance of the construction projects. It provides credit to other researchers that
have published their studies relating to this topic at hand and to validate the need for this study.

Chapter Three

Research methodology

This section describes the technique and plans that the researcher used to obtain participants
and gather information from them. It also conveys what was done with the findings with a view
to reaching a conclusion on the research questions.

Chapter Four

Data analysis and discussion of data

6
This chapter highlights how the data collected from the respondents using the descriptive survey was
analysed using appropriate analytical procedures. Statistical techniques were used to analyse the data. The
results obtained from the analysed data were to provide feedback on the formulated questions.

Chapter Five

Discussion of Findings

The findings that surfaced in Chapter Seven are discussed and linked to the literature reviewed in
Chapter Two in order to establish whether the research objectives were achieved and all the
research questions were answered as well as whether the objectives of the research have been
met.

Chapter Six

Conclusions and recommendations

This chapter is the concluding chapter and reflects the study as whole, including the analyzed
data. In this chapter the researcher provides answers to the research questions, confirms that the
research objectives have been met and provides future recommendations on the findings of the
study.

1.9 CONCLUSION

This chapter introduced various components of the research including the research problem that
the study seeks to resolve. In addition, the chapter gave an insight as to how the research was to
be carried out in order to achieve the objectives. The next chapter presents work done by other
scholars in relation to the questions presented.

7
 CHAPTER TWO

LITERATURE REVIEW: ASSESSING CRITICAL SUCCESS FACTORS FOR

CONSTRUCTION SAFTY IN THE SOUTH AFRICAN CONSTRUCTION INDUSTRY

2 INTRODUCTION

This chapter highlights the basic background of literature in accordance with the objectives of
the study. The review will outline the overview of Health and Safety performance in the South
African construction industry and will end with factors influencing safety performance in
construction.
2.1 A GENERAL OVERVIEW OF SOUTH AFRICA
The Republic of South Africa is the southern external country covering 1, 22 million km² area of
land in Africa (South Africa Fast Facts 2007). However, it is circumscribed to the south by 2,798
km2 of shoreline of Southern Africa spreading sideways the South Atlantic and Indian Oceans to
the north by the adjacent countries of Namibia, Botswana, and Zimbabwe, and to the east and
northeast by Mozambique and Swaziland and it surrounds the country of Lesotho. South Africa
is the biggest country in Southern Africa and the 25th-largest country. According to Stats SA,
South Africa has over a population of 57.2 million people in 9 provinces as follows: Eastern
Cape province 6463600 , Free state 29172000, Gauteng province 14586000 , Kwa-Zulu Natal
province 11268400, Limpopo province 5700000, Mpumalanga province 4461600, Northern
Cape province 1200000, Northwest province 3946800 and lastly the Western Cape province
6578000 (south African, 2008:6). By 2018 almost 11,5% of South Africa’s people live in
Western Cape and Northern Cape has the minimum portion of the population (2,1%), Free State
has the next smallest portion of the South African population constituting 5,1% of the
population. Limpopo (34,3%) and Eastern Cape (34,4%) have the maximum proportions of
persons younger than 15 years while a greater proportion of persons aged 60 years and above are
found in Eastern Cape and Northern Cape. South Africa's economic history since the rise of
democracy has changes tremendously.

8
 Figure 2.1 Map of South Africa (adapted from Nyasha Musviba 2015)

The administrative and economic capital of South Africa is located between the North West
province, Limpopo province, Mpumalanga and the Free State. Exceptionally, Gauteng is a
popular urbanized province and it accounts for 1.5% of the land area of South African (SA stats
in brief: 2006, 13). As of 2018, Gauteng is the most populous province in South Africa with a
population of approximately 14,700,000 people according to estimates (Stats SA: 2018, 11).

South Africa is a developing country, albeit a unique one. After the arrival of the first white
settlers in 1652 an amazing sequence of events lead to the development of a nation, and an
economy, which now displays all the development categories of a first world, third world and a
developing economy, rolled into one (Hauptfleisch 2001:1). In addition, contributing about 209
271 34 individuals, 1 percent site preparation and 4 percent recruitment of construction
equipment with operators (Construction monitor, 2018:8). The South African construction
industry is the third most hazardous and only surpassed by the agricultural sector and
manufacturing sector with R287 million paid in 2013 alone (PWC, 2013). When examined, it is
discovered that since 2008, the construction industry has contributed approximately 9% of GDP,
employing approximately 884 000 employees in the public sector and another 450 000
employees in the private sector (CIDB, 2015).When compared Drever & Doyle (2012) estimated

9
the overall United Kingdom construction workforce was at roughly 1 994 746 and accounting
approximately 10% of the GDP (Vilnius, 2008), which is slightly higher than South Africa.

The South African construction industry, however, faces some serious challenges in its endeavor
to deliver infrastructure projects effectively. The Department of Public Works (1999) reports,
among other industry the challenges faced, a sharp decline in employment over the years, a
steep decline in gross domestic fixed investment (GDFI), slow delivery of public sector projects
due to poor capacity in both the public and privat2 sector institutions and the contractors, low
productivity and poor quality workmanship, and low profit margins for contractors (Dlungwana
2002.). There is a need for South African contractors need to be more competitive to match the
level of performance of their counterparts operating in international markets. To improve the
current industry situation a government department, The National Department of Public Works
(NDPW), was tasked to develop a remedial strategy. The launch of the framework document, in
1999 (DPW, 1999) was among the first decisive interventions aimed at addressing the situation,
and set the tone for government’s intention. Subsequently a Construction Industry Development
Board (CIDB) Act was passed in 2000 thus establishing a statutory body aimed at driving an
integrated Construction Industry Development strategy. The CIDB has established the
construction industry development strategy, performance targets and key performance indicators.
Furthermore the promotion of best practice standards constitutes a critical component of the
industry development strategy. In strong support of the industry development strategy, the
Council for Scientific and Industrial Research’s (CSIR) Building and Construction Technology
Division is developed a model for assessing an overall performance of contractors with a view to
promoting best practice standards.

2.2 OVERVIEW OF SAFETY

Oxford (2019) describes the term ‘safety’ as a condition for being protected from danger, risk,
or injury, or as a condition for doing what it is intended to do, or for being protected from harm,
risk, or inconvenience.' That means that "what you want to do" is defined in terms of government
codes and norms, related designs and architecture, corporate designs. On the other hand, the
steady state of some entities is challenged, regardless of the continuing discussion between
professionals on the definition of safeguards. This is where security science comes in more

10
recently. Jeroen Johan (2010) defines Safety as a method of physical or human means of
delaying, preventing and otherwise protecting against external or internal mistakes, dangers,
losses, criminals and other threatening individuals or behavior. And there are 3 distinct kinds of
general terms of safety. Firstly, normative safety is achieved when a product or design meets
applicable design and construction or manufacturing standards and practices, regardless of the
actual safety history of the product. Secondly, Substantial or objective safety happens when the
safety history of the real world is favorable, whether the requirements are met or not, and lastly,
Perceived or subjective safety-refers to the level of user convenience and risk perception,
regardless of norms or safety history.

2.2.1 Critical Success Factor (CSf)

A literature by Chegg (2019) describes Critical Success Factors (CSF) as key variables in
decision-making. These variables, on the other hand, play a key part in determining a decision's
success or failure. CSFs first emerged to define executive data requirements in the data system
sector (Rockart 1979).The factors are known to be critical when the proper or wrong
implementation of a particular factor will lead to an advantageous or disadvantageous position.
The critical success factors are also known as the success factors of any organization.
Alternatively, John Reh(2019) defines Critical Success Factors(CSFs) for Safety as those
variables or circumstances necessary for a business program or strategy to achieve a positive
outcome and also causal variables of a particular desired outcome.

Recent studies by Nguyen, Ogunlana & Lan (2004: 404-413), recognize and groups success
factors under four classes which are referred to as the ‘four COMs’ comfort, competence,
commitment and communication. It defines the comfort factor that encourages the involvement
of stakeholders, including successful projects with a legal link between subcontractors to the
project and secondary stakeholders managing and affecting the achievement of the project, as
well as the appointment of a skilled project manager.

Secondly, the Competence of safety, the aspect that describes the four primary elements of
competence are, the use of up-to-date technology to achieve complete competitive advantage of
safety in the building sector (Nguyen, Ogunlana & Lan, 2004: 411). Periodically the construction

11
industry has seen significant technological developments in recent years selecting the appropriate
new technology and making effective use of it is crucial to the success of the project. These are
crucial with regards to the use of current safety systems provided in construction used to increase
productivity. The element is followed by the proper emphasis on past experience of safety by
project members should be encouraged to document tacit knowledge gained from the project in
order to prevent mistakes in subsequent projects. Thirdly, skilled teams must be set up,
suggesting that personnel members must have the required abilities (Melkonian & Picq, 2010:
82) and lastly the aspect of awarding offers to the correct project manager / contractor also
requires to be taken into account.

In addition, commitment is also a factor that emphasizes support for top management, dedication
to the project, clear goals and scope, and political support, as support for top management goes
Beyond providing funding and making accessible resources (Johnson, Paddy & Wittington, 200
6: 504).Lastly, in relation to the success factors, the communication element also plays
a significant role in guiding, integrating individuals and making choices to create a successful
project. In support of communication as a factor of success, Newton (2005: 38) is of the opining
that a comprehensive communication plan is essential for the efficient dissemination of data, and
these include frequent project meetings apart from consulting. to monitor their implementation
and evaluate

2.3. OVERVIEW OF SAFETY PERFORMANCE.

The European Foundation for Quality Management (EFQM 2003) defines Safety performance as
a measure of an individual, a team, an organization or a process level for goal attainment
achieved. In other words, performance is a measure of how effective and efficient the
mechanism/process put in place by an organization to attain its desired results (Wu, 2009). The
growing importance of Performance measurement has made measurement systems to be
recognized by researchers as the required efforts to support continuous improvement methods
and measure the effectiveness of organizations actions (Garengo, Biazzo and Bititci, 2005).
Performance measurement is a task undertaken by most organizations with different manners of
approach. Different techniques have been employed globally to measure performance, and the
concept has drawn more attention from researchers (Niven, 2000). A research by Parker (2000)

12
contends that many organizations measure performances methodically and comprehensively
while some adopt an unplanned approach or do it sketchily. However construction organizations
have yet to reap benefits, in spite of the level of awareness of performance measurement and
high prioritization of the concept on the program of many construction organizations.

Neely (1998) acknowledges that for an organization to achieve superior performance relative to
its competitors, it must accomplish its targeted objectives and mission, with higher efficiency
and effectiveness than its industry rivals. Effectiveness as an element of performance connotes
the degree to which stakeholder requirement is achieved, while efficiency, measures how well
the organization utilizes its resources and capabilities economically to meet requirements or
desired levels of stakeholder satisfaction (Wu, 2009).

Health & Safety Executive(HSE) (2001) expands on the fact that there’s some problems with
organizations recognizing the relevance of improving health and safety performance by making
the use of injury and ill-health statistics alone as the only measure of health and safety
performance is not sufficient.

2.3.1 Key Performance indicators (KPIs)

In South Africa, the construction industry uses performance parameters either in the form of
performance indicators (PIs) or Construction industry indicators (CIIs) to assess project or
industry performance. However, the achievement and outcome of projects often depend
primarily on cost, H&S, quality and time parameters. These parameters are key considerations
for the achievement of the project. Walker and Greenwood (2002), further elaborate that project
management is involved with the control of environmental factors influencing projects both
internally and externally, so that these primary performance parameters can be achieved and it is
illuminating to note that the performance of these parameters is linked to each other; for instance,
quality failures can lead to moment and cost overruns.

Figure 2.3.5 Primary performance parameters (adapted from Walker and Greenwood, 2002: 2)
Performance indicators can be considered as filters through which the reality is perceived,
experienced and understood. In the previous years of research, the measurement of performance

13
has received significant attention. It was defined by Neely (1999) as a revolution in which
around 3.615 articles were released between 1994 and 1996 and in 1996 a new book on the topic
appeared every two weeks in the Unites States. The Construction Best Practice program has
introduced KPI for performance measurement as a follow-up, Egan (1998). According to Egan,
the indicators are for projects as well as organizations, and they take into account directly the
performance objectives such as health & safety. Key performance indicators express the rate of
frequency of injury per 100,000 working hours even if the information on the hours working at
the site is not accessible, an estimate can be calculated by multiplying an estimation of the
average amount of hours worked in a site during the year. When the construction period is less
than a year, the statistics must be pro-rata adjusted. The indicators also illustrate that safety as a
measure of performance affects the overall project performance. Furthermore, the KPI is
intended as a benchmark for the whole industry, where organizations can take a comparison of
the country's performance and determine fields for improved performance in terms of safety.
Kagioglou et al. (2001) have questionable questions including the KPI being incomplete and
concentrating more on the project rather than organizational performance in construction.
Although the primary purpose of measuring health and safety performance is to provide
information on the progress and current status of the strategies, processes and activities used by
an organization to control risks to health and safety.

Further elaboration by Albert Lester (2010) is of the opinion that a key performance indicator
(KPI) is a major criterion against which a particular part of the project can be measured. They
can be a milestone that must be met, such as a predetermined design, delivery, installation,
production, testing, erection or commissioning stage, a payment date (in or out) or any other
important stage in a project. In process plants, KPIs can include the contractual performance
obligations such as output or throughput, pressure, temperature or other quality requirements.
Even when the project has been commissioned and handed over, KPIs relating to performance
over defined time spans (reliability and repeatability) are still part of the contractual
requirements. Some KPIs cannot be measured or proven until the project or the operations
following project completion have been running for a number of years, but these, which could
also include performance and sustainability criteria, should nevertheless be considered and
incorporated at both the planning and execution stages.

14
2.4 Safety performance measurement.
In South Africa, The CIDB (2016) has developed the best practice standards and guidelines
based on Construction Industry Development Board Act, No 38 of 2000, which targets
performance indicators related to those best practice standards and guidelines and establishes
mechanisms of their impact. The measurement of performance is central to decision making and
judgments by organizations, but despite a plethora of research on the concept of performance and
its measurement, the definition of the term remains inconclusive. Keats and Hitts (1988) opine
that the concept is viewed as problematic both in terms of definition and measurement. Bassioni
(2004) also argue that the definition of performance, performance measure, performance
measurement and performance management processes are rarely given in literature, when
dealing with the issue of performance.

Some definitions refer to performance measurement as an integral part of management and thus
may have been exercised ever since management has existed. However, in the modern business
literature, performance measurement has been traced back to the use of planning and control
procedures by U.S. railroads in the 1860s and 1870s (Chandler 1977; Kaplan, 1984). In the first
quarter of the 20th century, the DuPont firm introduced the return on investment (ROI) Measure
and the pyramid of financial ratios, and the General Motors Company developed innovative
management accounting practices of the time. There is much information generally available on
performance measurement, but there is little that focuses particularly on health and safety of
which organization can apply to the Circumstances.

Health and safety differ for many projects in the construction industry, because achievement
results in the lack of an outcome (injuries) rather than a presence. But a low rate of injury or ill
health, even over a period of years, is no guarantee that risks will be controlled and will not
result in future injuries(HSE, 2011:4). The construction industry continues to receive extra
attention in terms of safety performance and productivity, particularly among the small and
medium-sized enterprises, given its contribution to domestic economies and its effect on them.
As a result, poor H&S performance has led H&S stakeholders, the South African Government in
specific, to take H&S seriously. Although it is believed that it is inevitably, that poor H&S

15
performance could be assisted by unprecedented monitoring and assessment of H&S
management practices (Agumba & haupt, 2013).

A number of indicators have been created in the construction industry to assist individuals
to measure safety efficiency and conduct safety in a proactive way (Medori and Steeple 2000).
They further define Performance framework as a systematic identification of a process or
procedure that will guide the thinking and implementation of change efforts or where failure
requires adequate attention. Medori and Steeple (2000) itemize the required steps to be followed
or put into consideration in developing a framework and these include: (1) establishing
procedures for selecting and implementing measures, (2) determining whether existing
measurement system is up to date and can measure critical issues (i.e. audit capability), (3)
selecting measures congruent with company strategy and have a strong relationship with six core
competitive priorities (quality, cost, flexibility, time, delivery and future growth), and (4)
selecting measures from a data bank and workbook approach (step-by-step methodology).

2.4.1 Traditionally Approach of measuring safety performance

The construction industry has hinged the successful management of construction projects on the
traditional parameters of cost, time and quality which is responsible for the increasing rate of
construction accidents thereby calling for increased level of awareness of construction health and
safety making its inclusion as part of project performance criteria a necessity (Smallwood &
Haupt, 2006).According to Chi and Han (2013), construction accidents resulted from factors
including unsafe working conditions and worker unsafe behavior. Dingsdag and Biggs (2006)
suggests that essential leadership attributes, communication and desired safe behaviours as
necessary elements of safety culture. Smallwood and Rwelamila (1996) are opined the South
African contract documentation does not engender H&S. Although references are made to H&S
in standard contract documentation, they are generally indirect, hardly coercive, and depending
upon the level of commitment, and contractors continue to address H&S to varying degrees”.

The Traditional performance system Firstly used ;Outcome indicators-Like other industries, the
pursuit of safety in the construction industry started from investigating and analyzing accidents
Guo, Brian & Yiu, Wing (2013). Although it is believed that the obsession with analyzing these

16
failures has led to a strong preference for recording accidents as a primary tool to measure safety
performance. As a consequence, outcome indicators (e.g., accident rates, TRIFR (Total
Recordable Injury Frequency Rate), or fatality rates) have been widely used by construction
companies to evaluate the level of safety on sites. Despite the fact that recording safety outcomes
is objective and timesaving, this approach is not without limitations. First, outcome indicators
provide little information about the cause of accidents (Hinze et al. 2013). These indicators may
be able to reflect the level of safety in a reactive way (where we were) and help establish safety
objectives (where we should go), but they are unable to provide guidance to assist people to
fulfill the objectives (how to get there) (Hale et al. 1997, Grabowski et al. 2007, Sgourou et al.
2010). Secondly, outcome indicators have been criticized for being historical in nature (HSE
2006, Hinze et al. 2013). Safety efforts are made only after accidents occur. Due to this
limitation, this approach is “too late and too costly” (HSE 2006). Arguably, a safety indicator is
of little use when it is unable to provide early warnings prior to accidents. Managing safety in a
proactive manner requires foresights, rather than hindsight. However, relying on recording
incidents and accidents may not generate insights into how complex relationships between
contributing factors lead to these failures (OECD 2003). Foresights are derived from thorough
understandings of complex safety phenomenon. Last but not least, outcome indicators place
emphasis on the negative side of safety (the presence/absence of accident), instead of the positive
side (how safety is achieved). Rose (1994) asks the question of “If we are in the business of
promoting OHS, why do we use failures as the measure of our success?” It is true that the
positive side of safety includes many confounding and ambiguous variables which are difficult to
define and measure. But our understanding of safety will not improve with the avoidance of such
a difficulty.

2.4.2 Auditing
The limitations of outcome indicators pointed to a strong need of proactive tools to measure
safety performance (Guo, Brian & Yiu, Wing, 2013). As safety management systems (SMS)
become a primary tool for companies to manage safety, auditing arises as a means of measuring
safety performance. The Australian/New Zealand Standard (AS/NZS 4801) defines an audit as a
systematic examination against defined criteria to determine whether activities and related results
conform to planned arrangements and whether these arrangements are implemented effectively

17
and are suitable to achieve the organization’s policy and objectives”.(Standards Australia
Standards New Zealand 2001). Guo,et al (2013) establishes Auditing as an important part of a
safety management system. In principle, safety performance is evaluated against audit criteria.
Evaluation data then form a basis for organizational decision-making. In this sense, how well the
auditing captures the reality of safety performance is determined to a great extent by the
reliability and validity of the criteria. In practice, however, audit criteria are often problematic.
Some of them are legal compliance-oriented. Auditing which are based on such criteria tend to
assess safety performance against legislative and regulatory requirements.

The problem here is that being compliant with legislative requirements is far from sufficient to
produce safety. In addition, this may lead to a proliferation of the paperwork audit in the industry
by encouraging companies to produce and keep relevant documentation so that good audit
performance can be obtained and legal compliance can be met(Blewett and O'Keeffe 2011).
More comprehensive audit criteria assess safety performance against standardized safety
management systems. This approach focuses on the performance of an SMS, checking either the
presence or the effectiveness of individual safety practices. This approach is based on the faulty
assumption that so long as Safety management system (SMS) is in place and all individual safety
practices function effectively, accidents can be prevented. However, it is not the case in practice.
Hopkins (2007), in the analysis of Gretley mine accident, concludes that “experience is now
teaching us that safety management systems are not enough to ensure safety” Another example is
that the Esso Longford Gas Plant exploded just six months after the plant passed an auditing with
the highest Safety level(Hopkins 2000).

2.4.3 Leading safety indicators

Growing concern over the limitations of outcome indicators and auditing has promoted a wide
search for leading safety indicators (OECD 2003, HSE 2006, Aksorn and Hadikusumo 2008,
Dingsdag et al. 2008, Cipolla et al. 2009, Øien et al. 2011a, 2011b, Reiman and Pietikainen
2012, Hinze et al. 2013). Mohammed (2010) is of the opinion that construction regulations must
incorporate a provision that the contractor who plans to perform any construction shall before
carrying the work notify in writing the competent authority for construction planning,
particularly if the construction work includes use of explosives, dismantling of fixed plant and

18
excavation work. Firstly, leading indicators must be able to provide information about the state
of construction safety. And Secondly, they must be able to help decision makers take remedial
actions. These two functions should promote double-loop learning, reflecting any existing safety
model and facilitating the construction of a new one through ongoing validation (Brian, 2015). In
the construction industry, a number of sets of leading indicators have been developed to help
individual’s measure safety performance and manage safety in a proactive manner Leading
indicators can either be subjective or objective (Grabowski et al 2007). On the other hand,
lagging indicators are measured by the number of accidents and workers’ compensation statistics
(Mohamed 2002). However, for an optimum H&S culture to manifest, H&S practices should be
implemented and practiced effectively. (see Table 2.4.3).

Table 2.4.3 Developments of leading safety indicators in the construction industry (Guo,
Brian & Yiu, Wing , 2013).

19
While these developments represent a shift from outcome indicators towards proactive ones, they
are not without limitations. Dingsdag et al.(2008) argue that Positive performance
indicators(PIs): 1) They may not directly reflect actual success in preventing injury and/or
disease; 2) may not be easily measured; 3) may be difficult to compare for benchmarking or
comparative purposes; 4) may be time-consuming to collect and collate; 5) may be subject to
random variation; 6) may encourage under or over reporting depending on how they are
measured; 7) only measure the number of events and do not provide any indication or measure of
effectiveness of each measured event. They also point out that the relationship between PPIs and
safety outcomes (e.g., injuries) is arbitrary. Based on interviews, focus group and workshop,
Dingsdag et al. (2006) develop a construction safety competency framework and identify 39
safety management tasks (SMTs) that are considered critical to improving safety performance.

20
SEIs were also designed to measure the effectiveness of these SMTs. However, the framework
has not been validated and whether or not the sum of effectiveness of individual tasks equals the
effectiveness of safety management as a whole still remains an open question. In addition, the
evaluation of the effectiveness of SMTs is highly subjective. For example, SEIs emphasize the
importance of hazard management, but do not specify what hazards should be managed. In
general, traditional safety management focuses only on physical hazards, but psychosocial
hazards are often ignored. This may lead to a biased and inaccurate evaluation of the
effectiveness. Furthermore the problem with the KPIs is that they were primarily developed for
Site Safe’s Charter Accreditation program (Site Safe New Zealand 2013).

2.4.4 Safety Management systems (SMS)

Although it is seen that Safety performance indicators can be seen as proxies for perceiving and
understanding the reality of safety. In principle, traditional safety performance indicators
discussed above were selected based on the safety management system (SMS) approach (see,
Figure 2.4.4). A SMS is defined as a system which comprises a set of safety policies and
practices and aims at influencing employees’ behaviours and creating a safe and healthy
workplace (Kirwan 1998, International Labour Office 2001, Fernández-Muñiz et al. 2007). Hale
et al.(1997) produce a safety management systems model, with an attempt to “provide a
systematic and complete description of what elements should be present in an SMS and how they
should be related to each other”. Also, there are limitations with the SMS approach as a
framework for selecting safety indicators. The SMS approach gives a normative statement about
how a safety management system should be structured and should operate (Hale 2003).

According to Hale (2003, p.199)), the knowledge about the structural frame of SMS is robust
enough, but current understanding of other frames (e.g., human resources, cultural and political
frame) is rather limited. The knowledge gaps have partly led to a phenomenon that ideal safety
management systems are not common in the construction industry. Another contributing factor
to the lack of ideal SMSs is that current safety management systems rest on some fallacioeus
beliefs about why accidents occur and how safety is achieved. For example, Howell et al. (2002)
pointed out that current safety management systems rest on the following beliefs: “1) rules and
procedures can be developed which if followed will keep people safe; 2) incidents happen

21
because of worker error; i.e., failure to follow the rules; 3) reducing incidents will flow from
improved motivation and training; i.e., getting people to follow the rules.”.

What's more, Guo, Brian & Yiu, Wing (2013) Suggest that these beliefs reflect a linear
reasoning behind site safety management, which is likely to cause two fundamental problems:
incomplete risk profile and oversimplification of safety phenomena. These two problems are
closely linked to the limitations of aforementioned safety performance measurement methods.
With these two problems, safety indicators are unable to provide a full picture of safety, which
may lead to ineffective decision and action. To solve these problems requires a different
perspective from which the reality of safety is captured. Such a perspective must represent a way
of thinking about why accidents happen and how safety can be achieved. This means that safety
indicators should move beyond solely measuring the structure of an SMS. Instead, they should
first develop a valid description of complex safety phenomenon and then produce scientific
knowledge to fill gaps with regard to other frames of safety management systems. Only in this
way can safety indicators represent a meaningful and useful part of an SMS. Indeed, current
knowledge of safety management system is limited and safety management is governed by
fashion and not evidence (Hale 2003). In this sense, it may be inappropriate, and even dangerous,
to use safety indicators that are selected based on the normative SMS approach as an evaluative
tool to measure safety performance, identify safety problems and offer solutions.

Winch (2000: 142) observed that the construction industry is largely operationalized through a
professional system which requires that designs be fully specified at tender stage, and yet the
assumptions regarding the competence of designers in the technical details of a wide range of
construction technologies and the ability of the client to keep requirements fixed over a period of
time compromise the effectiveness of the professional system. Literature by Fernandez, Monte&
Vazquez(2007), are opined that H&S management helps guarantee that construction
organizations meet their H&S targets and managing their practices, therefore it is a vehicle for
improving the performance of H&S. The construction industry's nature and organization has
partially compounded the issue. The improvement of H&S performance in the construction
industry is made difficult as the Construction industry is a complicated industry (Teo et al.,

22
2005:329), and the complexity is compounded by the comprehensive use of advanced plant,
machinery, building techniques, as well as multidisciplinary and multitasked project workforce.

Health and safety performance measurement by Mitchell (2000) is of the suggestion that a
combination of H&S performance between projects can be used internally to maintain line of
accountability for H&S and identify problem areas where preventive action is needed. It also
provides feedback on projects involving H&S. Smallwood & Haupt (2006) is of the opinion that
the construction industry has hinged the successful management of construction projects on the
traditional parameters of cost, time and quality which is responsible for the increasing rate of
construction accidents thereby calling for increased level of awareness of construction health and
safety making its inclusion as part of project performance criteria a necessity.

Further literature by Mohammed (2010) is of the opinion that construction regulations must
incorporate a provision that the contractor who plans to perform any construction shall before
carrying the work notify in writing the competent authority for construction planning,
particularly if the construction work includes use of explosives, dismantling of fixed plant,
excavation work. Safety culture is defined as ‘The product of shared values, beliefs, attitudes,
and patterns of behaviour based on a top-down approach practices that are concerned with
minimizing the exposure to conditions considered dangerous or injurious to the entire group
members on a self-regulatory basis’(Faridah,2009).

Health and safety performance measurement permits the contrast of H&S performance between
projects and can be used internally to preserve line of accountability for H&S and to pinpoint
problem areas where precautionary action should be undertaken. It’s also provides feedback
regarding H&S ingenuities (Mitchell, 2000: 326). Furthermore Fernandez-Muniz et al. (2007:
636) established a confident H&S culture model that contained of management commitment,
employee participation and H&S management system (SMS).The SMS included H&S policy,
incentives, training, communication, planning and control. China & Mohamed (2008) also
identified the model that could be applied to more than one kind of different sizes and developed
an H&S culture model adapted from the European Foundation Quality Model (EFQM). The

23
enablers that were identified were leadership, policy and strategy, partnerships resources,
processes and H&S outcome or goals.

2.5 BEST SAFETY PRACTICES IN CONSTRUCTION

The poor H&S performance of the construction industry in South Africa provided the impetus
for promulgating the Construction Regulations of 2003 (Smallwood & Haupt 2005) which was
revised in 2014. For compliance with the regulations, Azimah et al (2009) argue that H&S
management should be properly addressed and it is also imperative to identify H&S practices
that are suitable, viable and manageable for construction SMEs.The underperformance by
construction SMEs is caused by their financial constraints and their lack of managerial and
technical skills (Department of Public Works (DPW), 1999; Agumba et al 2005; Martin 2010).
This hinders the implementation of H&S practices, leading to poor H&S culture. It is imperative
to identify H&S practices that are suitable, viable and manageable for construction SMEs. H&S
performance measures are classified as lagging and leading indicators (Toellner 2001).

Previous studies have not reached consensus regarding the H&S practices that could improve
the H&S performance of construction SMEs and also evaluate their H&S culture (Mearns et al
2003; Teo & Ling 2006; Fernández-Muñiz et al 2007; Chinda & Mohamed 2008; Molenaar et al
2009; Cheng et al 2012). Further literature by Watada et al. (1998) defines that these factors or
criteria that generally rely on company policies and legislation that influence OHS procedures,
where their assessment method includes a number of methods and parameters, often based on
imprecise information.

Smallwood and Rwelamila (1996) recognize that South African contract documentation does not
give rise to H&S, although references to H&S in standard contract documents are generally
indirect, hardly coercive and, depending on the level of commitment, contractors also continue to
address H&S to varying degrees. In the South African construction industry, including
construction SMEs, 24 fatal accidents were reported by the Federated Employers Mutual
Assurance (2017). Although the average fatality rate decreased in the United Kingdom, the
Health and Safety Executive (HSE 2016) reported that only 43 fatalities occurred in construction

24
in the year 2015. In Hong Kong, construction recorded the highest number of work-related
fatalities and accident rates (Labour Department 2016). In the US, 904 incidents were recorded
in construction, which included construction transportation; fires and explosion; falls, trips and
slips; workers exposed to harmful substances or environment and workers coming into contact
with objects and equipment (Bureau of Labour Statistics (BLS 2016)). These fatality, injury and
incident rates have a negative cost effect on the economy as employees could be forced to take
early retirement due to permanent disability, which makes them an economic burden due to their
un-employability and pension payments. Furthermore, medical expenses incurred are likely to
put a strain on the economy.

The Majority of Small medium sized enterprises (SMEs) contribute a large proportion to the
economy together with co-operatives to contest poverty and unemployment (Small Enterprise
Finance Agency (SEFA, 2016)). Furthermore the literature illustrated that South Africa has
(1)extensive subcontracting, (2) insufficient safety training, absenteeism of safety officers on
site, (3) unproductive laws and lack of enforcement,(4) wide-ranging use of foreign workers,(5)
lack of workers self-protection and alertness, (6)uncooperative clients and insufficient work
measures, (7)poor accident record-keeping, and lack of management obligations to safety
economical allocations are all factors that affect the performance of safety programs’’
(Irumba,2014) .

2.5.1. A framework for best practice in OHS

The poor H&S performance of the construction industry in South Africa provided the impetus
for promulgating the Construction Regulations of 2003 (Smallwood & Haupt 2005) which was
revised in 2014. Upper management commitment and involvement in H&S influenced overall
H&S performance indirectly through the mediating variables of project supervision and H&S
resources and training. These three H&S practices are essential in influencing H&S performance
at project level of construction SMEs, and are viewed as catalysts for H&S culture. However, to
ensure that H&S performance by construction SMEs is improved, upper management personnel
should be committed and involved in H&S at project level (Agumba & Haupt, 2018).

25
The poor H&S performance in the construction industry in South Africa is exacerbated by
limited commitment of contractors to comply with basic construction requirements and their
casual attitude towards H&S. Contractors do not properly maintain their tools and equipment,
their personnel do not use their personal protective equipment, and they view H&S interventions
as a luxury (cidb 2004). This is not unique to South Africa. Unnikrishnan et al (2014) found that
in India safety management practices are inadequately implemented in the work environment of
SMEs and he further emphasizes that H&S management practices should be improved to comply
with H&S standards, which will result in better productivity.

Benjaoran and Bhokha (2010) are opined that most construction projects do not establish such a
system on site. SMEs lack H&S training and competence (cidb, 2009), and these shortcomings
could jeopardise the improvement of H&S at the project level of construction occupational
health and safety management systems (OHSMSs). Although it seen that underperformance by
construction SMEs is caused by their financial constraints and their lack of managerial and
technical skills (Department of Public Works (DPW), 1999; Agumba et al 2005; Martin 2010).
This hinders the implementation of H&S practices, leading to poor H&S culture
.
An Australian literature also identified three key elements that characterize OHS systems in
successful workplaces (Bryan Bottomley, 1996). The study further describes all three aspects
that are essential to ensure that continuous improvement in OHS performance is achieved in the
medium to long term. The organization's culture at all levels is one of commitment to OHS, care
for the well-being of all those working in the organization, and the belief that workplace injury
and illness can be avoided. The culture emphasizes performance in all elements of the
organization's activities, including OHS (i.e. doing the work correctly and avoiding superficially
simple alternatives to issues that do not correct structural deficiencies).

The commitment of senior management and the communication of this engagement to all levels
of the organization is the main factor in the establishment of the OHS culture (Bryan Bottomley
1996). It further describes that the management systems (software) of the organization are geared
towards the practical and systematic implementation and maintenance of the culture of OHS. The
software involves policies, working standards, procedures, training systems, levels and kinds of

26
supervision, and communication systems. In addition, OHS management systems represent the
quality management systems of the organization. Both systems are consciously and consistently
interlinked. Although it is seen that OHS management system is subject to regular and rigorous
audits (Bryan Bottomley 1996).

The Employees and all levels of management are involved in the planning, development, also the
implementation and review of the OHS management system. The physical components of the
organization’s working environment (the hardware) are purchased and installed with OHS
considerations in mind. Hardware is operated or used according to the manufacturer/supplier
instructions, and is regularly maintained as prescribed by them. Ongoing suitability for the task is
regularly reviewed in the light of OHS requirements, and hardware is replaced as necessary. The
hardware includes plant, equipment, substances, materials and working conditions.

Additionally, the Finances devoted to the purchase, maintenance and replacement of hardware is
also a critical factor. In workplaces that have been successful in continuously improving their
OHS performance, there is a clear link between the hardware and their OHS management
systems. These systems cover matters like purchasing decisions, maintenance schedules and
most importantly, mechanisms for regular review. While all three elements are present in the
OHS regimes of successful workplaces, clearly they are not equal in their importance (Bryan
Bottomley, 1996). Further research by Agumba et al (2018), are establish that the factors in the
South African construction industry indirectly determines H&S performance via the intermediary
factors of employee involvement and empowerment in H&S and an occupational health and
safety management system (OHSMS) defined by eight practices.

27
FIGURE 2.5.1 Refined conceptual model for H&S performance improvement for SMEs
(adapted from Agumba & Haupt, 2018:67).

2.5.2 Safety performance improvement

Upper management commitment and involvement in H&S-The importance of management
commitment and involvement in H&S is fundamental to an organisation’s H&S culture (O’Toole
2002; Arboleda et al 2003; Choudhry et al 2008; Khdair et al 2012). Several studies on H&S
performance improvement established that management commitment and involvement in H&S
was critical in terms of H&S management systems. It influences H&S performance by reducing
accidents, disease, worker absenteeism and injuries. Furthermore Langford et al (2000)
recommended that employees are prepared to engage in H&S when managing H&S
practices.these was based on a research hypotheses that represented that Upper management
commitment and participation in H&S which has a positive impact on workers participation and
empowerment in H&S. Secondly it represented the upper management commitment and H&S
participation, has a positive impact on H&S performance.

28
Moreover Fernández-Muñiz et al also found that management commitment favorably affects the
system in safety management, which includes policy, incentives, preventive and emergency
planning, control, training, and communication. A study by Surienty et al (2010) recommended
that the commitment of H&S management is positively linked with the application of H&S
management in the workplace. Comparative studies would be useful in a range of African
countries in identifying the significance and relevance of key factors such as culture, climate, and
differences between urban and rural environments. Much of OSH's information and technology
has evolved in industrialized countries like the US, Europe, and Australia. Obviously, African
countries in the continent are very different and very diverse. Trying to simply apply
industrialized country practices and procedures, however well-intentioned, is unlikely to
succeed. Additionally, Chinda and Mohamed (2008) discovered that H&S culture was affected
by management. OHSMS execution will be effective if upper management is involved and
engaged in the H&S of the organization. When upper management is committed and involved in
the organization’s H&S, OHSMS implementation will be successful.

Occupational health and safety management system-The potential impact of H&S practices such
as management commitment and involvement and workforce involvement and empowerment in
H&S are fundamental drivers of H&S performance improvement. Although, it is seen that
OHSMS is supposed to support the participation of management and the employees to improve
H&S efficiency. It is also provided in the literature review about the following important H&S
practices defining OHSMS (Agumba & Haupt 2018)

Appointing or hiring of H&S staff- According to Vredenburgh (2002), the promotion of H&S
culture can be influenced when workers are predisposed to display H&S-conscious attitudes in
their work. Grabowski et al (2010), Hinze (2005) and Sawacha et al (1999) indicate that hiring
H&S staff will improve H&S performance. The Construction Regulations 2014 advocate that
H&S personnel be hired. In addition, Grabowski et al (2010) state that hiring quality personnel in
H&S positions influences H&S performance positvely.

Cooper (1998) are opined that Formal and informal written communication indicates the
importance of communication in influencing H&S performance in the form of formal and

29
informal verbal and written communication, which is the transfer of information to employees
about possible risks in the workplace and the correct way to combat them. Furthermore, Health
and Safety Executive (HSE 2008) highlights the need for written information regarding H&S
procedures and the correct way to perform tasks, which would reinforce what has been verbally
communicated in a positive way. Azimah et al (2009) indicate that consistent communication of
H&S legislation and regulations is vital to achieve good H&S performance and it also helps on
workers’ perceptions of H&S culture. Formal and informal verbal communication- The Health
and Safety Executive (2008) underlines the need for H&S information to be verbally
communicated to workers before changes are made to the way in which their work is carried out.
In addition, Fernández-Muñiz et al (2007) and Kheni et al (2006) have identified the significance
of verbal communication in improving the performance of H&S in their literature.

Health and safety resources- Health and safety resources allow the H&S performance of the
project to be achieved (Abudayyeh et al 2006; Rajendran & Gambatese 2009). Choudhry et al
(2007) argued that the accessibility of funds was a good predictor of H&S performance.
Fernández-Muñiz et al (2007) stated that H&S funds had an impact on employee participation
and H&S performance. Moreover, Rajendran and Gambatese (2009) demonstrated that the
availability of H&S resources has an impact on reducing workers ' injuries in construction
projects
Project planning of H&S-The H&S project planning involves risk assessment and the
establishment of necessary accident prevention H&S measures, including emergency planning
(Fernández-Muñiz et al 2007). Arocena and Nuñez (2010) recommened H&S planning is an
element of OHSMS for SMEs and reduces accidents when implemented. It was also observed
that planning has a direct impact on employee involvement and H&S performance.

Project supervision-Project supervision verifies the extent to which goals have been met, as well
as compliance with internal norms or work procedures (Fernández-Muñiz et al 2007). Teo et al
(2008) and Fang et al (2004) indicate that supervision influences H&S performance. Fernández-
Muñiz et al (2007) found that control influences employee involvement and H&S performance.

30
Training in health and safety-Langford et al (2002) are opined that training of operatives and
H&S supervisors ensures H&S awareness and improved performance. Further studies by Zeng et
al (2008) point out that some accidents such as falling from a height and being hit by falling
materials on construction sites can easily be prevented by implementing training programmes for
employees. It is also perceived that the influence of H&S training to improve H&S performance
has been addressed by many researchers (Sawacha et al 1999)also established that training in
H&S influences employee involvement.

Health and safety policy-Health and safety policy are the rules and procedures that employees
and management should adhere to in the workplace and are the bedrock of the OHSMS.
According to Cox and Cheyne (2000), the major factor that influences H&S is the extent to
which workers perceive the H&S rules and procedures as being implemented and promoted in
the organization. Ng et al (2005) and Fernández-Muñiz et al (2007) establish that the perception
of workers is important to H&S policy for improving modified version of the earlier studies of
that used subjective measures.

2.5.3 SAFETY CLIMATE.

Safety climate is defined as referring to a set of attributes that can be perceived about particular
work organizations and that may be induced by the policies and practices imposed by those
organizations upon their workers and supervisors (Niskanen, 1994; Sinclair, Martin & Sears,
2010: 1478). The definition further illustrated how the attitudes, decisions of the co-worker and
their attention have had a statistically significant effect on the worker's attitude. And also the
attitudes of managers, attitudes of co-workers and the manner in which they were instructed had
a statistically significant impact on the feedback of performance. The workers thought that
establishing safe working practices would have the greatest impact on the leadership techniques ,
perception of the supervisor. Although when implemented a significant percentage of employees
thought that taking risks was part of their work. Cox & Flin (1998), Safety climate is regarded as
a manifestation of safety culture in the behaviour and expressed attitude of employees. It is
important, because it forms the context within which individual safety attitudes develop and
persist, and safety behaviours are promoted (Zohar, 1980).

31
Determining the safety climate features of a building project team with world-class safety
records is crucial. On his quest to determine the safety climate features that exist in building
teams in South Africa when compared to teams with poor safety results in terms of world-class
safety performance by a modified safety pyramid model developed by (Zohar, 2010), The model
provides a useful conceptual model to investigate the link between safety performance and safety
climate related to construction teams. Dingsdag and Biggs (2006) see essential leadership
attributes, communication and desired safe behaviours as necessary elements of safety culture.
Further literature by Tinus Boshoff (2019) supports the South African labour law guide on the
perspective that “employee involvement is just as important as management involvement. Health
and safety involves all level of the workforce, from the top to the bottom. Employee involvement
should be encouraged by management.

It is important to establish participation, communication and trust between the various role
players in order to create a positive safety culture. According to Yang, Shen & Ho (2009: 162),
the unique nature of projects dictates that critical success factors identified in one industry cannot
be directly transferred to other industries. And in addition the South Africa Construction industry
Development board CIDB(2009) addresses challenges faced by small contractors to manage
Safety for medium to large contractors and subcontractors working with large contractors
tended to address H&S to greater degrees than small and emerging. Flin et al (2000) is opined
that H&S climate measurement is a leading indicator which measures the H&S culture of an
organization. However, for an optimum H&S culture to manifest, H&S practices should be
implemented and practiced effectively.

2.6. FACTORS THAT INFLUENCE THE IMPROVEMENT OF SAFETY

PERFORMANCE.

2.6.1 Developing a national culture of safety

The Australian Government (2007) establishes that construction projects do not operate
independently of the society in which they are located, although project managers may be
determined to run a safe and healthy site, it is almost impossible for them to do so if the
prevailing national culture is that' life is cheap' and' we cannot afford safety measures.'

32
Developing an efficient OSH culture must begin at the senior level of government and be
enforced across government, employers and employee organizations.

2.6.2 International agreements influence national policies and national laws.

The obvious agencies that influence and cause governments to take action on OSH are the
International Labour Organization and WHO, both of which work quite tirelessly towards this
end, but there are other organizations, such as the G20 Group of Nations, all of which could do
far more than they currently do (ILO. 2010). However, Kheni (2008) also observed though that
failure by the construction SMEs to employ OHS in construction sites compromised the
infrastructure sector’s contribution to economic growth. He gave insight into the difficulties
posed by lack of inadequate government support to construction SMEs and the inefficiencies in
the institutional structure to facilitate the implementation of OHS in infrastructure projects.

2.6.3 Funding agencies must insist on good OSH through their contracts
In many African countries, a significant proportion of construction projects are financed, at least
in part, by external funding agencies. These agencies have a responsibility to enforce good OSH
practice through the contracts they fund. The aim of most externally financed projects is to
improve the well-being of the citizens of the country, and this includes the well-being of all those
involved in the construction process. External funding agencies must therefore see themselves as
the primary agents of beneficial change (African Newsletter, 2013).

2.6.4 Comparative studies of the OSH environment and practices

The African Newsletter (2013) establishes a comparative study on the importance and relevance
of potential key factors such as culture, climate and the differences between urban and rural
environments would be useful in a number of African countries. Much more of the information
and technology for OSH has evolved in industrialized countries, such as the United States,
Europe and Australia. When observed, it is clear that African countries are very different and
very diverse on the continent. However, the intention and attempts to simply apply industrialized
country practices and procedures are unlikely to succeed. Also, a comprehensive study of these
issues, leading to recommendations on how to improve OSH locally, may well be one of the
most important factors to improve OSH locally.

33
2.6.5 A comprehensive, generalized model on the business case for OSH should be
developed
It is also seen that effective OSH with quite a variety of construction companies throughout the
developing world, cost has always been put forward as a major obstacle Nevertheless, it is quite
reasonable to argue that a good business case can usually be made for investing in OSH. Neale
and Waters (2012) are opined that it is also obvious that when temporary structures or
excavations collapse and kill or injure people, the construction project suffers from additional
costs and delays. There are also other factors such as reputation, which helps a construction
company to obtain work, and insurance costs. A succinct Australian publication gives helpful
guidance on preparing an OSH business case (1), but what is needed is a comprehensive African
study leading to clear and detailed guidance (Australian Government 2007).

2.6.6 OSH has to be managed actively

Soehod's literature (2008) states that Most construction work is planned in some way, but it is
commonly the technical construction process that is the focus of the planning and OSH is then
considered only when the technical construction process has been agreed; that is, OSH is an ‘add
on’ in the minds of managers. In many instances, these practices are not effective. The OSH must
be actively managed and planned as an essential aspect of the planning process, Further, if no
safe construction methods can be discovered, that's when the construction team should go back
to the designers and assist them to modify the design. (African Newsletter, 2013) establishes that
realistically, this process will be much more effective if designers adopt OSH principles at the
outset of their design process. "Safe by design" is a subject of increasing interest throughout the
world, with the aim of eliminating or significantly reducing hazards and risks through careful
design while at the same time meeting the functional requirements of the project.

2.6.7 Workers should be more directly involved in planning and implementing safe and
decent work
Safety professionals and observers have generally agreed that the traditional belief that
employers are exclusively accountable for workers ' safety at work should amend. In order to
develop safe working conditions, workers should be permitted to participate actively in the OSH

34
and collaborate with employers (Soehod, 2008). As they are nearer to their work, it is thought
that the employees themselves are the most eligible to create decisions about safety and job
improvements. Evidence shows that various benefits could be yielded if workers worked
together with employers, including the reduction of death and injury rates at work. However, to
make workers’ participation in this field effective, several criteria are crucial: legal support,
management support, trade union support, training, and the positive quality of the workers
involved (African Newsletter, 2013).

2.6.8 OSH personal protective clothing and equipment (PPCE) must be developed to suit
the diversity of cultures and physiques of both men and women workers.
Based on the African Newsletter (2013), most of the PPCE presently available is designed for
quite strong men and is Western / European in design and appearance. In many nations, men are
physiologically smaller and less powerful (their diet may affect this) and therefore the applicable
PPCE is inappropriate. There it is also a severe problem with the efforts to use items designed for
temperature climates in warm or humid circumstances. Moreover, there is a large number of
women working on construction projects in Africa, and the PPCE may not fit them (and in some
cases may be harmful to the physical condition of a woman) and is often culturally unacceptable
in appearance. This introduces a significant barrier to the improvement of OSH, which is why
the development of appropriate work-wear and safety equipment for women is essential.

2.6.9 The technology to improve OSH, including better control and warning systems,
communication devices and better (safer) machines, should be further developed.
Modern construction machinery is used increasingly in Africa. Thrust upon an unskilled and
untrained workforce, this machinery can be lethal. Therefore, manufacturers and suppliers have
an important obligation to ensure that the machines are designed and made to be as safe as
possible, and incorporate realistic safety devices (Neale et al, 2012). However, the assumptions
concerning the competence of designers in the technical details of such a broad spectrum of
construction technologies and the ability of the client to maintain requirements fixed over a
period of time compromise the efficiency of the professional system (Winch, 2000: 145).

35
Tool & Gambatese(2006) argue on their literature that, there is an active need for a paradigm
change in architectural thinking to guarantee that designs are reviewed in H&S development and
to include it as a measure of project achievement. Although Safety professionals have known for
many years that most accidents at work are caused by unsafe behavior and that their control is
one of the keys to effective accident prevention, but many organizations, including those with
low accident rates, have been frustrated by their failure to control unsafe acts. These are the most
crucial variables that are of the utmost importance for organizations to be successful in their
companies to survive in competitive company settings such as construction, as it is constantly
changing with the development of new business methods and techniques (Koota, 2003). Despite
the perception by designers that the improved environment is the cumulative effect of
construction health and safety legislation, whilst also quantity surveyors see improved quality as
affecting, whereas contractors see improved maintenance as affecting health and security laws
(Famakin, 2012:114)

2.6.10 Effective education and training in OSH is required globally; it should be designed
in such a way as to measurably enhance attitudes, skills and knowledge.
It must be realistic and practical. Lectures on regulations may be relevant, but there is also a need
for educators and trainers to get involved in the reality of construction work; they should be
“guides by your side” rather than “sages on the stage” (Neale et al, 2012).

2.7 CONCLUSION

This chapter reviewed and explained the context of safety performance in construction projects,
as well as the use of safety indicators in order to improve safety as well their management
systems, followed by outline explanations of ten factors that, if addressed with determination and
expertise, could facilitate a general improvement. Although these factors are really quite wide-
ranging, which illustrates the difficulty, but because the problem itself is wide-ranging, they are
all important. Since most construction projects are intended to enhance the general well-being of
the citizens of a country, it is quite unacceptable for large numbers of these same citizens to be
killed, injured or otherwise damaged in the process. Given the constraints of the current
indicators of construction safety performance, future research should concentrate on the selection

36
of safety indicators based on a safety pattern that explicitly explains how accidents occur and
how safety can be achieved.

37
 CHAPTER THREE

RESEARCH METHODOLOGY AND DESIGN

3.0 INTRODUCTION

This chapter of the research explains the research methodology used in carrying out this study. It
will present what was done to ensure that the objectives of the study are achieved. This section
will commence by stating the study design that was used, followed by the geographical area
where the study was conducted. The next section looks at the sampling technique that was
chosen and the population sample is also described. Furthermore, the instrument used in
collecting the data, including methods implemented to maintain validity and reliability of the
instrument are described.

3.1 RESEARCH APPROACH OR DESIGN

Creswell (2014:3) identified research approach as the plan and process of the research that runs
from a wide range of assumptions that are then narrowed down to comprehensive methods of
collecting data which then leads to its analysis and interpretation. In the same vein Kumar (2011:
94), defined research design as a procedural plan utilised by a researcher to accurately,
economically objectively and validly answer questions. There are three approaches that are
commonly used namely qualitative, quantitative and mixed approaches. For this research, the
quantitative approach was adopted.

3.1.1 Quantitative research is the use of numerical data to obtain information about the world
through a systematic, formal and objective process (Burn and Grove,1993: 26). It is a method
used to describe variables, examines the relationship between these variables and determines the
cause -and -effect interaction between variables. This research methodology is also described as
being numerically orientated since the data collected is in numbers form. In addition, it has been
found that the method accords the researcher the ability to maintain a level of objectivity from

38
the subject of the research. The results obtained from the data collection process are used to
support, falsify or expand existing theories; or even to establish new theory (SACQSP, Mod.18:
25).

3.2 RESEARCH AREA

My research area was in South Africa, in the province of Gauteng. Gauteng was found to be the
suitable area as the research itself was based on this province, and the researcher is also based in
Gauteng making it easier to collect data from the respondents. Data was collected from mainly
Pretoria and Johannesburg as they are one of the biggest cities in South Africa. In order to avoid
sampling error data wa collected from different areas in these two cities like Soweto, Sandton,
Rosebank, Midrand, Centurion, Hamanskraal, Lynwood and also Braamfontein. The use of
different areas to collect data helped in achieving credible data as variety was enhanced. Figure
3.2.1 shows the map of South Africa and figure 3.2.2 shows the map of Gauteng province.

Figure 3.2.1 source: http://www.gautengfilm.org.za/filming-in-gauteng/about-gauteng

39
3.4 TARGETED POPULATION

The targeted respondents of my study was construction professionals working both in private and
public sector, but mainly in private sector as this is where consultants are used. In the public
sector we looked at the Johannesburg Metropolitan Municipality, City of Johannesburg,
Department of Infrastructure and the department of housing as they normally release several
building tenders and we approached them from a client’s point of view. In the private sector our
nominated respondents included the following: Consultants, quantity surveyors, construction
managers, project managers, engineers and architects. Responses from both private and public
sector were different but assisted in the effective recommendations for my study.

3.5 SAMPLING

A sample is a smaller group of the population which serves as the focus of the research enquiry
that is selected in a way in which the study population is represented (Kumar, 2011:397).
Sampling (Alvi, 2016:11) is simply a process in which a sample is extracted from a population.
In a quantitative research, we have two forms of sampling namely, random or probability and
non-random or nonprobability sampling.

In Random sampling (Alvi, 2016:12) every member or individual has an equal opportunity of
being selected for the sample. This sampling type requires the population to be defined precisely
and it has five methods namely; stratified random sampling, systematic random sampling, simple
random sampling, cluster sampling and multistage sampling.

In contrast non-probability sampling is when all members of the population don’t have an equal
opportunity of being selected. This sampling design is used where the population is not precisely
defined or where the individuals are unknown. For instance there is no complete list of all the
professionals working in Gauteng, making our research to be a non-probable sample. One of the
advantages of this sampling method is that it’s not time consuming and it is very affordable.
Burns and Grove (1993:245) stated four main methods of non-probability sampling technique:
Convenience sampling, Snowball sampling, Purposive sampling, Quota sampling

In convenience sampling the researcher may approach participants who are convenient for them
to use. This technique is also used where the targeted population is used with a broad category.
Convenience sampling is also known as accidental sampling or opportunity sampling (Alvi,

40
2016:27-33). In purposive sampling the researcher uses their own judgement in selecting the
perfect sample in order to meet the research objectives. In this sampling the sample is
approached with a purpose in mind (Kumar, 2011:207). In quota sampling not all elements of the
population matches the criteria. With snowballing sampling individuals are selected from the
population based on referral from other survey respondents (Willemse, 2009:20).

3.6 DATA COLLECTION

The method used in this study was the Internet administration of questionnaires (Saunders et al.,
2009:395). This approach requires a lot of preparation for the response rate to be high, as the
respondents need to be encouraged and informed to complete the questionnaire. The research
would have to follow up on a regularly through email over a period of 3 weeks. For this study, a
questionnaire was generated using the Google form and a link was emailed to the respondents. A
total of 75 emails have been sent and 54 forms were returned.

3.7 INSTRUMENTS OF DATA COLLECTION

Burns and Grove (1993:766) identified data collection as an accurate and systematic way to
gather information that is relevant to the research purpose or specific objectives, assumptions or
questions of the research. For this research, a questionnaire was selected as a data collection tool.
The questionnaire (Burns and Grove, 1993:368) is a printed form intended to draw information
from the subject by means of written responses. The information obtained from the questionnaire
is similar to the information obtained from the interview, with the main difference being that the
questions tend to have less depth.

There are two types of questionnaires, the open-ended and the closed-ended, according to Burns
and Grove (1993:370). In open-ended questionnaires, respondents are asked to respond in
writing in their own words and to provide more details as they wish. The downside of these
questions is that it is difficult to interpret and analyse them. With closed-ended questions, the
research subject options identified by the researcher are given to the respondents. A closed-ended
questionnaire was adopted for this analysis

3.9 DATA ANALYSIS:

Data analysis is when letters, signs and words are manipulated to obtain relevant information
(Alreck & Settle, 1985:407). The questionnaires are analyzed and interpreted using the Microsoft
41
Excel spreadsheet and the Statistical Package for Social Science (SPSS) program. The data were
put into the Social Science Statistical Kit, we were able to calculate the standard deviations from
the model, the mean item scores ranking and Cronbach's alpha. Various charts have been
constructed using Microsoft Excel.

3.9.1 MEAN ITEM SCORE (MIS)

In order to calculate the mean item scores (MIS) for improving safety performance, how the
implementation of safety performance measurements affects performance, best practices for
promoting safety performance have been used in different scales. The ranking of each
questionnaire was determined by calculating the average score of the item. The ranking was done
in order to determine which factors would improve safety performance and which ones would
have arisen thereafter. The mean item score was determined by looking at all the questionnaires
and was related to the total response to each question. This was based on the fact that the scores
of the respondents on all the chosen parameters, when taken together, are indices of relative
importance. The index mean factor score is the amount of the respondents ' actual score based on
the 5-point scale, as a proportion of the total of all the maximum possible scores that the
respondents can bring to that criterion. Factors that have been described have been drawn from
the literature examined. The adopted scales were as follows:

1 = strongly disagree

2 = Disagree

3 = Neutral

4 = Agree

5 = Strongly Agree

Each response was allocated a weighting ranging from one to 5, which is from strongly disagree
to strongly agree. This is expressed mathematically as:

MIS= 1n1 + 2n2 + 3n3 +4n4+5n5 …………………………………… Equation 1.0

∑N

42
Where;

n1 = Number of respondents for extremely unlikely or strongly disagree;

n2 = Number of respondents for unlikely of disagree;

n3 = Number of respondents for neutral;

n4 = Number of respondents for likely or agree;

n5 = Number of respondents for extremely likely or strongly agree;

N = Total number of respondents

After mathematical computations, the criteria are then ranked in descending order of their mean
item score (from the highest to the lowest). A mean value of 3.50 or more was deemed to be
significant to the study.

3.9.2 STANDARD DEVIATION

Standard deviation helps to describe the variation in a measured process. This computes how
much an individual measurement deviates from the mean. In this research we used the standard
deviation to rank the variables that had the same mean item scores. This is mathematically
presented as:

SD =√Σ( 𝒙−𝐱̄)²𝑵−𝟏 ...... ... … Equation 2.0

Where: 𝑆𝐷− Symbol for standard deviation

Σ− Summation symbol

𝑥− Value in the sample

𝑥̅− Mean of the values

𝑁− Simple size

43
3.10 LIMITATION OF THE STUDY

There were a few limitations in the data collection process. There was not enough time to collect
information from the different locations where it was distributed. Traveling costs also became a
concern when one had to travel across Gauteng to distribute and collect data in order to prevent
bias in the results. Due to the fact that the respondents were working people, their work schedule
made it difficult to compile the questionnaires at the time accepted.

3.11 ETHICAL CONSIDERATION

There have been two ethical considerations in this work. In the first place, the study had to
recognize the responsibility of scholars whose work contributed to the literature by referencing
their work in the right way. Research that includes collecting data from people need to foresee
that there are ethical considerations to be encountered (SACQSP, Mod 18:21). The participants
were obligated to their privacy. The study subject has the right to remain anonymous and to be
assured that the data collected will be confidential (Burns and Grove, 1993:99). The
questionnaire thus stated that the data collected would remain confidential and would only be
used for academic purposes. Respondents have not been pressured to answer questions which
they believed were inappropriate.

3.12 CONCLUSION

We looked closely at the research methodology used in this chapter. These included the research
design, the research population, the sample, as well as the tools for data collection. The
quantitative approach used was the use of questionnaires. Limitations and ethical considerations
of the study have been taken into account. We will discuss and analyze the data in the next
chapter.

44
 CHAPTER FOUR

DATA ANALYSIS OF THE QUESTIONNAIRE SURVEY RESULTS

7.0 INTRODUCTION

This chapter presents the results of the data gathered for this study through the distribution of a
closed-ended structured questionnaire. The questionnaire was distributed among the randomly
selected target of construction professionals in the

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

7.1 DATA ANALYSIS

7.1.1 SECTION A: BACKGROUND INFORMATION OF RESPONDENTS

Figure 7.1 shows the gender orientation of the 167 respondents, reflecting sixty-three per cent of
the respondents to have been male, while thirty-seven per cent of them were female.

45
 Female
37%

Male
63%

1 Figure 7.1: Respondents’ gender

Findings relating to the respondents’ ethnic group are shown in figure 7.2. The results reflect that
sixty-one per cent of the sample assessed was African (blacks), twenty-three per cent were white,
seven per cent were coloured, and nine per cent were either Indian or Asian.

Indian or Asian,
9.0%
Coloured
7%

White
23% African,
61%

2Figure 7.2: Respondent’s ethnicity

Figure 7.3 relates to the respondents’ age group. The results reflects that 15 per cent of the
respondents were in the age group of 21 – 25 years old, 33.5 per cent of the respondents were in
the age group 26 – 30 years old, 28.1 per cent were in the age group 31 – 35 years old, 10.8 per
cent were in the age group 36 – 40 years old, 9 per cent were in the age group 41 – 45 years old,
and only 3.6 per cent were in the age group 46 – 50 years old.

46
 46 YEARS – 50 YEARS 3.6%

41 YEARS – 45 YEARS 9.0%

36 YEARS – 40 YEARS 10.8%

31 YEARS – 35 YEARS 28.1%

26 YEARS – 30 YEARS 33.5%

21 YEARS – 25 YEARS 15.0%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0%

3 Figure 7.3: Respondents’ age group

Figure 7.4 represents the highest educational qualification of the assessed sample. The findings
indicated that of the hundred and sixty five respondents, 35 per cent of the respondents had post-
matric certificates (grade 12) or diploma, 46 per cent of them had a Bachelor’s degree, 12 per
cent of them had an honours degrees, 5 per cent of them had a Master’s degree, and 2 per cent of
the respondents had a doctoral degree.

5%
2%
Masters
Doctrate Matric Certificate
Degree

12% 4%, Post-Matric Certificate

or Diploma
Honours Matric
Degree Bachelor’s Degree

Honours’ Degree

35% Master’s Degree

42% Diploma
Bachelors
Degree Doctorate

4Figure 7.4: Respondents’ education qualification

47
Figure 7.5 represents the professions of the respondents in the assessed sample. The findings
reveal that 41 per cent of the respondents were quantity surveyors, 14 per cent were civil
engineers, another 14 per cent were architects, 11 per cent were industrial engineers, 10 per cent
were construction managers, and another 10 per cent were construction project managers.

Construction Project Manager 10% Architect

14%
Construction Manager
10%

Industrial
Engineer
11%

Civil Engineer Quantity Surveyor

14% 41%

5Figure 7.5: Respondents’ professions

Figure 7.6 shows the years of working experience in the construction industry of the respondents.
The results reflected that 52.7 per cent of the respondents had experience in the construction
industry that ranged from 5 – 10 years, 21.6 per cent had experience in the range of 0 – 5 years,
11.4 per cent had experience that ranged between 10 – 15 years, 10.8 per cent had experience
ranging between 15 – 20 years, and 3.6 per cent had experience of more than 20 years.

48
 MORE THAN 20 YEARS 3.6%

15 – 20 YEARS 10.8%

10 – 15 YEARS 11.4%

5 – 10 YEARS 52.7%

0 – 5 YEARS 21.6%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

6 Figure 7.6: Respondents’ years of experience

Figure 7.7 shows the type of organisations that the respondents worked for. The results reflect
that 52 per cent of the respondents indicated that they worked for contractors, 33 per cent of
them worked for consultants, and 15 per cent worked for the government.

Government,
15%
Consultant
33%

Contractor
52%

7 Figure 7.7: Respondents’ work organisations

49
7.1.2 SECTION B: PERCEPTIONS OF ENTERPRISE RESOURCE PLANNING
SYSTEMS IN THE SOUTH AFRICAN CONSTRUCTION INDUSTRY

7.1.2.1 Financial solution perspective of the role of ERP systems in the South African
construction industry
Making use of a five-point Likert scale of ‘Strongly disagree’ (SD) – ‘Strongly agree’ (SA), the
respondents were asked to indicate what they perceive the roles of an enterprise resource
planning systems to be in the construction industry, from a financial management perspective.
Table 7.1 reveals the respondents’ ranking of the roles they perceive to be of enterprise resource
planning systems in the Gauteng Province’s construction industry. The results reveal that
‘reduces operational costs’ was ranked first, with a mean score of 4.40 and a standard deviation
(SD) of 0.711; ‘improves project cost control’ and ‘maximises profitability opportunities’ were
both ranked second, with a mean score of 4.34 and standard deviations (SD) of 0.628 and 0.675
respectively; ‘reduces unnecessary inventory’ was ranked third, with a mean score of 4.29 and a
standard deviation of 0.614; ‘generate accurate financial reports’ was ranked fourth, with a mean
score of 4.20 with a standard deviation of 0.705; and ‘reduces financial risks’ was ranked fifth,
with a mean score of 4.19 and a standard deviation of 0.700. These were the top five most
general perceptions of ERP systems from a financial perspective.

Furthermore, ‘creates process transparency to financial managers’ was ranked sixth, with a mean
score of 4.18 and standard deviation of 0.679; ‘enhances financial capabilities of firms’ was
ranked seventh, with a mean score of 4.17 and a standard deviation of 0.720; ‘accelerates the
order-to-cash cycle’ was ranked eighth, with a mean score of 4.15 and a standard deviation of
0.758; and lastly, ‘creates awareness of reducing asset values’ was ranked ninth, with a mean
score of 4.10 and a standard deviation of 0.733 as the least common perception of ERP systems
from a financial perspective.

Table 7.1: Financial management solution perceptions of ERP systems in the South African
1

construction industry

Perceived roles of ERP system: Financial Solution x̅ σX R

Reduces operational costs 4.40 0.711 1
Improves project cost control 4.34 0.628 2

50
 Maximises profitability opportunities 4.34 0.675 2
Reduces unnecessary inventory 4.29 0.614 3
Generates accurate financial reports 4.20 0.705 4
Reduces financial risks 4.19 0.700 5
Creates process transparency to financial managers 4.18 0.679 6
Enhances financial capabilities of firms 4.17 0.720 7
Accelerates the order-to-cash cycle 4.15 0.758 8
Creates awareness of reducing asset values 4.10 0.733 9

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.2.2 Human resource management perspective of the role of ERP systems in the South
African construction industry
Table 7.2 reveals the respondents’ ranking of the roles they perceive to be of enterprise resource
planning systems in the Gauteng Province’s construction industry, from the perspective of
human resource management. The results reveal that ‘effective planning of workforce
distribution’ was ranked first with a mean score of 4.42 and a standard deviation (SD) of 0.697;
‘improves project administration’ was ranked second with a mean score of 4.36 and a standard
deviation (SD) of 0.661; ‘improves company competitiveness’ was ranked third with a mean
score of 4.35 and a standard deviation of 0.630; ‘maximises opportunities for staff education’
was ranked fourth with a mean score of 4.30 with a standard deviation of 0.616; and ‘improves
staff collaboration’ was ranked fifth with a mean score of 4.22 and a standard deviation of 0.704.
These were the top most common perceptions among construction professionals from a human
resource management perspective.

In addition, ‘increases organisational flexibility’ was ranked sixth with a mean score of 4.19 and
standard deviation of 0.700; ‘systematic human capital management’ was ranked seventh with a
mean score of 4.18 and a standard deviation of 0.679; ‘strengthens compliance with health and
safety requirement’ was ranked eighth with a mean score of 4.17 and a standard deviation of
0.720; ‘strengthens compliance with workplace legislation’ was ranked ninth with a mean score
of 4.15 and a standard deviation of 0.758; ‘improves workforce efficiency’ was ranked tenth with
a mean of 4.11 and a standard deviation of 0.728; ‘effectiveness attendance to workforce

51
demands’ was ranked eleventh with a mean of 4.09 and a standard deviation of 0.727; ‘improves
workforce productivity’ was ranked twelfth with a mean of 4.07 and a standard deviation of
0.725; and lastly, ‘improves workforce satisfaction’ was ranked thirteenth with a mean of 4.05
and a standard deviation of 0.714, the least common perception among construction
professionals.

Table 7.2: Human resource management perceptions of ERP systems in the South African
2

construction industry

Perceived roles of ERP system: HR management solution x̅ σX R

Effective planning of workforce distribution 4.42 0.697 1
Improves project administration 4.36 0.661 2
Improves company competitiveness 4.35 0.630 3
Maximises opportunities for staff education 4.30 0.616 4
Improves staff collaboration 4.22 0.704 5
Increases organisational flexibility 4.19 0.700 6
Systematic human capital management 4.18 0.679 7
Strengthens compliance with health and safety requirements 4.17 0.720 8
Strengthens compliance with workplace legislation 4.15 0.758 9
Improves workforce efficiency 4.11 0.728 10
Effective attendance to workforce demands 4.09 0.727 11
Improves workforce productivity 4.07 0.725 12
Improves workforce satisfaction 4.05 0.714 13

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.2.3 Procurement and logistical management perspectives of the role of ERP systems in
the South African construction industry
Table 7.3 reveals the respondents’ ranking of the roles they perceive to be of enterprise resource
planning systems in the Gauteng Province’s construction industry, from the perspective of
procurement and logistical management. The results reveal that ‘eliminates unnecessary
processes’ was ranked first with a mean score of 4.38 and a standard deviation (SD) of 0.709;
‘enhances strategic resource planning’ was ranked second with a mean score of 4.36 and

52
standard deviations (SD) of 0.679; ‘enhances strategic resource allocation’ was ranked third with
a mean score of 4.35 and a standard deviation of 0.630; ‘optimises plant scheduling processes’
was ranked fourth with a mean score of 4.30 with a standard deviation of 0.616; and ‘proactive
resource procurement’ was ranked fifth with a mean score of 4.22 and a standard deviation of
0.704 as the top most common perceptions among construction professionals.

Furthermore, ‘facilitates just-in-time resource delivery’ was ranked sixth with a mean score of
4.20 and standard deviation of 0.696; ‘streamlines material flow’ was ranked seventh with a
mean score of 4.19 and a standard deviation of 0.676; ‘optimises use of inventory stock’ was
ranked eighth with a mean score of 4.16 and a standard deviation of 0.731; ‘improves logistical
management’ was ranked ninth with a mean score of 4.13 and a standard deviation of 0.770;
‘optimises end-to-end procure-to-pay process’ was ranked tenth with a mean of 4.09 and a
standard deviation of 0.735; and lastly, ‘enhances warehouse management’ was ranked eleventh
with a mean of 4.08 and a standard deviation of 0.736, as the least common perception among
construction professionals.

Table 7.3: Procurement and logistical management perceptions of ERP systems in the
3

South African construction industry

Perceived roles of ERP system: Procurement and Logistics x̅ σX R

Eliminates unnecessary processes 4.38 0.709 1
Enhances strategic resource planning 4.36 0.679 2
Enhances strategic resource allocation 4.35 0.630 3
Optimises plant scheduling processes 4.30 0.616 4
Proactive resource procurement 4.22 0.704 5
Facilitates just-in-time resource delivery 4.20 0.696 6
Streamlines material flow 4.19 0.676 7
Optimises use of inventory stock 4.16 0.731 8
Improves logistical management 4.13 0.770 9
Optimises end-to-end procure-to-pay process 4.09 0.735 10
Enhances warehouse management 4.08 0.736 11

x̅ = Mean item score; σX = Standard deviation; R = Rank

53
7.1.2.4. Project management perspective of the role of ERP systems in the South African
construction industry
Table 7.4 reveals the respondents’ ranking of the roles they perceive to be of enterprise resource
planning systems in the Gauteng Province’s construction industry, from the perspective of
project management. The results reveal that ‘improves decision making’ was ranked first with a
mean score of 4.37 and a standard deviation (SD) of 0.706; ‘supports cost effectiveness’ was
ranked second with a mean score of 4.34 and a standard deviation (SD) of 0.675; ‘accelerates
planning of project activities’ was ranked third with a mean score of 4.31 and a standard
deviation of 0.630; ‘identifies idling resources’ was ranked fourth with a mean score of 4.30 with
a standard deviation of 0.626; and ‘facilitates effective work scheduling against project
resources’ was ranked fifth with a mean score of 4.21 and a standard deviation of 0.693, as the
top most common perceptions among construction professionals.

The perceived roles of ERP systems which were the least significant were ‘enhances project
analysis accuracy’ which was ranked ninth with a mean score of 4.14 and a standard deviation of
0.763; ‘facilitates better stakeholder collaboration’ which was ranked tenth with a mean score of
4.10 and a standard deviation of 0.738; ‘facilitates high-quality production’ which was ranked
eleventh with a mean score of 4.08 and a standard deviation of 0.732; ‘maximises profitability’
which was ranked twelfth with a mean score of 4.07 and a standard deviation of 0.725; and
lastly, ‘increases client satisfaction’ which was ranked thirteenth with a mean score of 4.05 and a
standard deviation of 0.714, as the least common perception among construction professionals.

Table 7.4: Project management perceptions of ERP systems in the South African
4

construction industry

Perceived roles of ERP system: Project Management x̅ σX R

Improves project decision making 4.37 0.706 1
Support cost effectiveness 4.34 0.675 2
Accelerates planning of project activities 4.31 0.630 3
Identifies idling resources 4.30 0.626 4
Facilitates effective work scheduling against project
4.21 0.693 5
resources
Accelerates execution of project activities 4.19 0.694 6

54
 Eliminates unnecessary management processes 4.17 0.676 7
Enhances quality control processes 4.16 0.722 8
Enhances project analysis accuracy 4.14 0.763 9
Facilitates better stakeholder collaboration 4.10 0.738 10
Facilitates high quality production 4.08 0.732 11
Maximises profitability 4.07 0.725 12
Increases client satisfaction 4.05 0.714 13

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.3 SECTION C: CRITICAL FACTORS FOR THE SUCCESSFUL

IMPLEMENTATION OF ERP SYSTEMS

This section was assessed using a five-point Likert scale of ‘Strongly disagree’ (SD) – ‘Strongly
agree’ (SA). Table 7.5 that follows shows the respondents’ ranking of factors they regard to be
critical for the successful implementation of enterprise resource planning systems in the South
African construction industry. The results indicated that the top five ranked critical success
factors for the implementation of enterprise resource planning systems are ‘clear understanding
of company goals’ which was ranked first, with a mean of 4.39 and a standard deviation of
0.710; ‘infrastructure availability’ which was ranked second with a mean of 4.37 and a standard
deviation of 0.671; ‘business process reengineering’ which was ranked third with a mean of 4.35
and a standard deviation of 0.630; ‘careful selection of ERP system software from vendors’
which was ranked fourth, with a mean of 4.30 and a standard deviation of 0.616; and ‘ERP
system vendor support’ which was ranked fifth, with a mean of 4.22 and a standard deviation of
0.680 .

Factors which were regarded the least critical for the successful implementation of ERP systems
in the construction industry were ‘software customisation capability’ which was ranked twelfth,
with a mean of 4.07 and a standard deviation of 0.721; ‘interdepartmental communication’ and
‘interdepartmental cooperation’ which were both ranked at thirteen, with a mean of 4.05 and a
standard deviation of 0.738 and 0.743 respectively; ‘sufficient project implementation time’
which was ranked fourteenth, with a mean of 4.02 and a standard deviation of 0.828; ‘end-user

55
involvement’ which was ranked fifteenth, with a mean of 4.01 and a standard deviation of 0.821;
and lastly, ‘perceived usefulness by the end-user’ which was ranked sixteenth, with a mean of
3.98 and a standard deviation of 0.836.

5Table 7.5: Critical factors for successful implementation of ERP systems

Critical success factors for ERP system implementation x̅ σX R

Clear understanding of company goals 4.39 0.710 1
Infrastructure availability 4.37 0.671 2
Business process reengineering 4.35 0.630 3
Careful selection of ERP system software from vendors 4.30 0.616 4
ERP system vendor support 4.22 0.680 5
Effective change management 4.20 0.696 6
Top management support 4.19 0.682 7
Staff education and training 4.16 0.714 8
Competent ERP system implementation team 4.14 0.763 9
Effective implementation of ERP system project management 4.11 0.720 10
Data conversion 4.08 0.732 11
Data integration 4.08 0.723 11
Software customisation capability 4.07 0.721 12
Interdepartmental communication 4.05 0.738 13
Interdepartmental cooperation 4.05 0.743 13
Sufficient project implementation time 4.02 0.828 14
End-user involvement 4.01 0.821 15
Perceived usefulness by the end-user 3.98 0.836 16

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.4 SECTION D: BENEFITS OF IMPLEMENTING ENTERPRISE RESOURCE

PLANNING SYSTEMS IN CONSTRUCTION FIRMS

56
Table 7.6 below shows the potential benefits of implementing ERP systems in construction
firms. For the purpose of this section, a five-point Likert scale was once again used, where the
scale ranged from ‘Strongly disagree’ (SD) – ‘Strongly agree’ to allow the respondents to
indicate the extent to which they think each one of the benefits may be gained upon the
implementation of the ERP system in construction firms. The results from the collected data
indicated that ‘informed decision making’ and ‘effective information management’ were both
ranked first with a mean score of 4.42 and a standard deviation of 0.706 and 0.697; ‘effective
project coordination’ and ‘elimination of unnecessary processes’ were both ranked second with a
mean score of 4.36 and a standard deviation of 0.651; ‘elimination of idling resources’ and
‘improved project administration’ were both ranked third with a mean score of 4.34 and a
standard deviation of 0.628 and 0.636 respectively; ‘improved information sharing’ was ranked
fourth, with a mean of 4.30 and a standard deviation of 0.616; and ‘better project planning’ was
ranked fifth, with a mean of 4.22 and a standard deviation of 0.704. These were the top most
beneficial aspects that can be expected from implementing ERP systems.

The benefits which the respondents regarded to be the most unlikely to be gained if ERP systems
are implemented in construction firms include ‘proactive material supply’ which was ranked
fourteenth with a mean score of 4.01 and a standard deviation of 0.821; ‘effective project
progress monitoring’ which was ranked fifteenth with a mean score of 3.99 and a standard
deviation of 0.814; ‘improved quality of work’ which was ranked sixteenth with a mean score of
3.95 and a standard deviation of 0.82; ‘improved client satisfaction’ which was ranked
seventeenth with a mean score of 3.93 and a standard deviation of 0.830; and lastly, ‘reduction of
disputes/ conflicts’ which was ranked eighteenth with a mean score of 3.90 and a standard
deviation of 0.830.

6Table 7.6: Benefits of implementing ERP systems in construction firms

Benefits of implementing ERP systems in construction firms x̅ σX R

Informed decision making 4.42 0.706 1
Effective information management 4.42 0.697 1
Effective project coordination 4.36 0.651 2
Elimination of unnecessary processes 4.36 0.651 2
Elimination of idling resources 4.34 0.628 3

57
 Improved project administration 4.34 0.636 3
Improved information sharing 4.30 0.616 4
Better project planning 4.22 0.704 5
Efficient material and plant coordination 4.20 0.688 6
Optimised utilisation of production resources 4.19 0.682 7
Effective subcontractor coordination 4.19 0.702 7
Reduction of project duration 4.16 0.720 8
Reduction in order errors 4.14 0.760 9
Improved transparency of management responsibilities 4.10 0.733 10
Improved project control 4.09 0.727 11
Better project control 4.09 0.732 11
Reduction in reworks 4.07 0.725 12
Reduction in order cycle-time 4.07 0.738 12
Maximised project profitability 4.03 0.832 13
Proactive material supply 4.01 0.821 14
Effective project progress monitoring 3.99 0.814 15
Improved quality of work 3.95 0.820 16
Improved client satisfaction 3.93 0.830 17
Reduction in dispute/ conflict 3.90 0.830 18

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.5 SECTION E: KEY PERFORMANCE INDICATORS FOR SUCCESSFUL ERP

SYSTEM IMPLEMENTATION IN A CONSTRUCTION FIRM

Table 7.7 ranks the key performance indicators which the respondents regard to suggest a
successful ERP system implementation in a construction firm. The results given in table 7.7
below indicate that the top five most popular indicators of the successful implementation of ERP
systems include ‘centralised project execution plan’ and ‘user satisfaction’ which were ranked
first, with a mean of 4.35 and a standard deviation of 0.720 and 0.704 respectively; ‘effective
management of company resources (plant, material, and labour)’ which was ranked second, with
a mean of 4.33 and a standard deviation of 0.681; ‘error free processing’ which was ranked third,

58
with a mean of 4.32 and a standard deviation of 0.624; ‘process cycle time reduction’ and ‘stable
work flow’ which were both ranked fourth, with a standard deviation of 4.30 and a standard
deviation of 0.616 and 0.606 respectively; and ‘improvement in procurement processes’ which
was ranked fifth, with a mean of 4.22 and a standard deviation of 0.695.

The key performance indicators which were ranked the lowest in terms of suggesting a
successful ERP system implementation in a construction firm were as follows: ‘improved
profitability’ ranked fourteenth, with a mean of 4.04 and a standard deviation of 0.821;
‘improvement in quality’ ranked fifteenth, with a mean of 4.02 and a standard deviation of 0.818;
‘reduced rework’ ranked sixteenth, with a mean of 3.98 and a standard deviation of 0.810;
‘increased productivity’ ranked seventeenth, with a mean of 3.96 and a standard deviation of
0.828; and lastly, ‘reduced disputes’ was ranked eighteenth, with a mean of 3.93 and a standard
deviation of 0.830.

7Table 7.7: Key performance indicators of a successful ERP system implementation

Key performance indicators x̅ σX R

Centralised project execution plan 4.35 0.720 1
User satisfaction 4.35 0.704 1
Effective management of company resources (plant, material,
4.33 0.681 2
and labour)
Error free processing 4.32 0.624 3
Process cycle time reduction 4.30 0.616 4
Stable work flow 4.30 0.606 4
Improvement in procurement processes 4.22 0.695 5
Proactive material supply 4.19 0.694 6
Improvement in plant scheduling 4.18 0.679 7
Compatibility with existing software in the company 4.17 0.720 8
Better project stakeholder management 4.14 0.775 9
Improved order fulfilment rate 4.12 0.718 10
Improved material handling systems 4.10 0.722 11
Effective human resource management 4.08 0.711 12
Effective storage yard management 4.05 0.738 13

59
 Improved profitability 4.04 0.821 14
Improved quality 4.02 0.818 15
Reduced rework 3.98 0.810 16
Increased productivity 3.96 0.828 17
Reduction of disputes 3.93 0.830 18

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.6 SECTION F: IMPROVEMENT OF PROJECT PERFORMANCE THROUGH

THE IMPLEMENTATION OF CONSTRUCTION ERP SYSTEMS

7.1.6.1. Time factor-related improvements in the construction industry through ERP

systems
Making use of a five-point Likert scale of ‘Strongly disagree’ (SD) – ‘Strongly agree’ (SA), the
respondents were asked to indicate their perceptions of potential improvements in project
performance through the implementation and adoption of enterprise resource planning systems in
the construction industry, from a time factor-related perspective, which Table 7.8 presents in
accordance with the findings gathered from the respondents ratings. According to the
respondents the top five improvements which are most likely to be gained in project performance
which affect the time aspect of construction projects include ‘steadiness of material supply’
which was ranked first, with a mean of 4.34 and a standard deviation of 0.675; ‘effective
planning of project execution’ which was ranked second, with a mean of 4.32 and a standard
deviation of 0.714; ‘controlled competition for site resources’ and ‘resource availability’ which
were ranked third, with a mean of 4.31 and a standard deviation of 0.685 and 0.676 respectively;
‘better flow of interdependent work activities’ which was ranked fourth, with a mean of 4.29 and
a standard deviation 0.661; and ‘cohesiveness between project stakeholders’ which was ranked
fifth, with a mean of 4.27 and a standard deviation of 0.625.

The factors which the respondents regarded to be the ones that are unlikely to be the gained
improvement in the sense of time in project performance include ‘elimination of payment delays’
which was ranked tenth, with a mean of 4.09 and a standard deviation of 0.783; ‘elimination of
payment delays’ which was ranked eleventh, with a mean of 4.07 and a standard deviation of
0.733; ‘clear work progress status to all site management’ which was ranked twelfth, with a

60
mean of 4.04 and a standard deviation of 0.731; ‘reduced material wastage’ which was ranked
thirteenth, with a mean of 4.03 and a standard deviation of 0.723; and lastly, ‘enhanced project
progress monitoring’ which was ranked fourteenth, with a mean of 4.01 and a standard deviation
of 0.752.

Table 7.8: Time factor-related improvements in construction project performance through

8

ERP systems

Project performance improvements through ERP

system: Time factor
x̅ σX R

Steadiness of material supply 4.34 0.675 1

Effective planning of project execution 4.32 0.714 2
Controlled competition for site resource 4.31 0.685 3
Resource availability 4.31 0.676 3
Better flow of interdependent work activities 4.29 0.661 4
Cohesiveness between project stakeholders 4.27 0.625 5
Tracking of material ordering and delivery to construction
4.19 0.702 6
sites
In-time material requisitioning 4.18 0.697 7
Just-in-time material delivery 4.16 0.671 8
Reduced site preparation time 4.15 0.708 9
Elimination of material delays 4.09 0.783 10
Elimination of payment delays 4.07 0.733 11
Clear work progress status to all site management 4.04 0.731 12
Reduced material wastage 4.03 0.732 13
Enhanced project progress monitoring 4.01 0.752 14

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.6.2. Cost factor-related improvements in construction project performance through

ERP systems
Table 7.9 reveals the respondents’ ranking of the cost-related factors which they perceive to be
possible gains in the sense of project performance in the event that ERP systems are
implemented and adopted in the construction industry. The findings reveal ‘reduced operational

61
costs’ was ranked first, with a mean of 4.43 and a standard deviation of 0.680; ‘elimination of
idling resources’ was ranked second, with a mean of 4.37 and a standard deviation of 0.654;
‘reduced inventory levels’ was ranked third, with a mean of 4.35 and a standard deviation of
0.630; ‘enhanced cost control systems’ was ranked fourth, with a mean of 4.30 and a standard
deviation of 0.616; and ‘eliminates inconsistent material procurement’ was ranked fifth, with a
mean of 4.22 and a standard deviation of 0.698. These are the top most likely improvements in
construction project performance, in terms of cost, which can be expected from the
implementation of an ERP system in the construction industry.

The cost-related factors which were ranked the lowest out of the possible gains that can result
from the implementation of ERP systems in the construction industry were ‘cash flow control of
projects’ which was ranked eleventh, with a mean of 4.07 and a standard deviation of 0.725;
‘proper project implementation’ which was ranked twelfth, with a mean of 4.06 and a standard
deviation of 0.742; ‘proper pre-contract planning’ which was ranked thirteenth, with a mean of
4.04 and a standard deviation of 0.744; ‘accurate cash-flow project’ which was ranked
fourteenth, with a mean of 4.01 and a standard deviation of 0.818; and lastly, ‘reduced waste rate
of materials’ and ‘reduced rate of remedial work’ which were ranked fifteenth, with a mean of
3.99 and a standard deviation of 0.814 and 0.810 respectively.

Table 7.9: Cost factor-related improvements in construction project performance through

9

ERP systems

Project performance improvements through ERP

system: Cost factor
x̅ σX R

Reduced operational costs 4.43 0.680 1

Elimination of idling resources 4.37 0.654 2
Reduced inventory levels 4.35 0.630 3
Enhanced cost control systems 4.30 0.616 4
Eliminates inconsistent material procurement 4.22 0.698 5
Use of appropriate construction methods 4.19 0.694 6
Effective material use 4.16 0.703 7
Resource cost monitoring 4.13 0.708 8
Eliminates poor workmanship 4.10 0.811 9

62
 Increased profit margins 4.08 0.723 10
Cash flow control of project 4.07 0.725 11
Proper project implementation 4.06 0.742 12
Proper pre-contractor planning 4.04 0.744 13
Accurate cash-flow project 4.01 0.818 14
Reduced waste rate of materials 3.99 0.814 15
Reduced rate of remedial works 3.99 0.810 15

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.1.6.3. Quality factor-related improvements in construction project performance through

ERP systems
Table 7.10 reveals the respondents’ perceptions, from a quality factor-related perspective, of
potential improvements in project performance through the implementation and adoption of
enterprise resource planning systems in the construction industry. The results reveal that
‘eliminates shortage of skilled labour’ and ‘effective communication’ were ranked first with a
mean score of 4.22 and a standard deviation of 0.695 and 0.712 respectively; ‘effective
document controlling’ and ‘conformance to specifications’ were ranked second, with a mean
score of 4.20 and standard deviations of 0.688 and 0.692 respectively; ‘adequate project
planning’ was ranked third, with a mean score of 4.19 and a standard deviation of 0.682;
‘eliminates obsolete equipment’ was ranked fourth, with a mean score of 4.16 and a standard
deviation of 0.720; and ‘enhanced quality assessment systems’ was ranked fifth with a mean
score of 4.14 and a standard deviation of 0.760. These were the top most likely improvements in
construction project performance, from a quality perspective, which can be expected from the
implementation of an ERP system in a construction firm.

The respondents also indicated ‘quality material’ which was ranked ninth, with a mean score of
4.05 and standard deviation of 0.738; ‘quality auditing’ which was ranked tenth, with a mean
score of 4.00 and a standard deviation of 0.821; ‘eliminates sub-standard material supply’ which
was ranked eleventh, with a mean score of 3.97 and a standard deviation of 0.825; ‘adequate
method statement’ which was ranked twelfth, with a mean score of 3.96 and a standard deviation
of 0.821; and ‘better design analysis’ which was ranked thirteenth, with a mean of 3.92 and a

63
standard deviation of 0.814 to be the most unlikely quality related factors to be gained in the
sense of project performance improvements.

Table 7.10: Quality factor-related improvements in construction project performance

10

through ERP systems

Project performance improvements through ERP system:

Quality factor
x̅ σX R

Eliminates shortage of skilled labour 4.22 0.695 1

Effective communication 4.22 0.712 1
Effective document controlling 4.20 0.688 2
Conformance to specification 4.20 0.920 2
Adequate project planning 4.19 0.682 3
Eliminates obsolete equipment 4.16 0.720 4
Enhanced quality assessment systems 4.14 0.760 5
Experienced personnel allocation 4.10 0.733 6
Clear understanding of project requirements 4.09 0.727 7
Facilitates plant availability 4.07 0.725 8
Facilitates quality of material 4.05 0.738 9
Facilitates quality auditing 4.00 0.821 10
Eliminates sub-standard material supply 3.97 0.825 11
Adequate method statement 3.96 0.821 12
Better design analysis 3.92 0.814 13

x̅ = Mean item score; σX = Standard deviation; R = Rank

7.2 CONCLUSION

64
This chapter analysed primary data which was collected through a well-structured questionnaire
designed by the researcher,
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

65
 CHAPTER FIVE

DISCUSSION OF FINDINGS

8.0 INTRODUCTION

In this chapter, the discussion of the results of the research regarding an evaluation of the
implementation of an

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

8.1 BACKGROUND INFORMATION

This part of the research study presents a discussion of the data extracted regarding the
respondents’ background information i.e. that is demographic information which includes
gender, age, ethnicity, highest qualification, profession, years of working experience, and the
type of organisations they work for.

8.1.1 BACKGROUND INFORMATION RESULTS

66
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

8.2 RESEARCH QUESTION ONE

What are the perceptions regarding enterprise resource planning systems in the construction
industry?

8.2.1 FINDINGS

In accordance with the rankings (R) of perceptions of ERP systems in the construction industry,
concluded through the calculated standard deviation (SD) and mean scores (x̅) of the listed ERP
system perceptions categorised into four management solutions, namely financial management,
human resource management, procurement and logistical, and project management in the
previous chapter. The study revealed that, from a financial management perspective, an ERP
system reduces operation costs (SD = 0.711; x̅ = 4.40; R = 1); improves project cost control (SD
= 0.628; x̅ = 4.34; R = 2); maximises profitability opportunities (SD = 0.675; x̅ = 4.34; R = 2);
reduces unnecessary inventory (SD = 0.614; x̅ = 4.29; R = 3); generates accurate financial
reports (SD = 0.705; x̅ = 4.20; R = 4); reduces financial risks (SD = 0.700; x̅ = 4.19; R = 5);
creates process transparency to financial manager (SD = 0.679; x̅ = 4.18; R = 6); enhances
financial capabilities of firms (SD = 0.720; x̅ = 4.17; R = 7); accelerates the order-to-cash cycle

67
(SD = 0.758; x̅ = 4.15; R = 8); and creates awareness of reducing asset values (SD = 0.733; x̅ =
4.10; R = 9).

From a human resource management perspective, the study further revealed that an ERP system
is a system which possesses the ability to enhance effective planning of workforce distribution
(SD = 0.697; x̅ = 4.42; R = 1); improve project administration (SD = 0.661; x̅ = 4.36; R = 2);
improve company competitiveness (SD = 0.630; x̅ = 4.35; R = 3); maximise opportunities for
staff education (SD = 0.616; x̅ = 4.30; R = 4); improve staff collaboration (SD = 0.704; x̅ = 4.22;
R = 5); increase organisational flexibility (SD = 0.700; x̅ = 4.19; R = 6); systematic human
capital management (SD = 0.679; x̅ = 4.18; R = 7); strengthen compliance with health and safety
requirements (SD = 0.720; x̅ = 4.17; R = 8); strengthen compliance with workplace legislation
(SD = 0.758; x̅ = 4.15; R = 9); and improve workforce efficiency (SD = 0.728; x̅ = 4.11; R = 10).

The study further reveals, from a procurement and logistical management perspective, that an
ERP system eliminates unnecessary processes (SD = 0.709; x̅ = 4.38; R = 1); enhances strategic
resource planning (SD = 0.679; x̅ = 4.36; R = 2); enhances strategic resource allocation (SD =
0.630; x̅ = 4.35; R = 3); optimises plant scheduling processes (SD = 0.616; x̅ = 4.30; R = 4);
proactive resource procurement (SD = 0.704; x̅ = 4.22; R = 5); facilitates just-in-time resource
delivery (SD = 0.696; x̅ = 4.20; R = 6); streamlines material flow (SD = 0.676; x̅ = 4.19; R = 7);
optimises use of inventory stock (SD = 0.731; x̅ = 4.16; R = 8); improves logistical management
(SD = 0.770; x̅ = 4.13; R = 9); and optimises end-to-end procure-to-pay process (SD = 0.735; x̅ =
4.09; R = 10).

And lastly, from a project management perspective, the study reveals that an ERP system
improves project decision making (SD = 0.706; x̅ = 4.37; R = 1); supports cost effectiveness (SD
= 0.675; x̅ = 4.34; R = 2); accelerates planning of project activities (SD = 0.630; x̅ = 4.31; R =
3); identifies idling resource (SD = 0.626; x̅ = 4.30; R = 4); facilitates effective work scheduling
against project resources (SD = 0.693; x̅ = 4.21; R = 5); accelerates execution of project
activities (SD = 0.694; x̅ = 4.19; R = 6); eliminates unnecessary management processes (SD =
0.676; x̅ = 4.17; R = 7); enhances quality control processes (SD = 0.722; x̅ = 4.16; R = 8);
enhances project analysis accuracy (SD = 0.763; x̅ = 4.14; R = 9); and facilitates better
stakeholder collaboration (SD = 0.738; x̅ = 4.10; R = 10).

68
The findings from the survey support those of Bhirud and Revatkar (2016), who state that ERP
systems in the construction industry are systems which facilitate the optimization of cost and the
incorporation of design changes; support conformance to quality conformance on a consistent
basis; provide information which is reliable; ensure faster and on-time material delivery; and also
incorporate value engineering across an organisation. Furthermore, the findings also support
those of Khalid Al Marri (2014) who indicates that ERP systems may provide solutions to the
complications flaws in project tracking, the management of company resources, and the process
of decision making. The author further states that the implementation of ERP systems enable the
recognition of benefits such as the cutting of operational costs and also the gaining of real time
information, which essentially also supports informed decision making. The work of Fuß et al.
(2007) also supports this study in that the researchers reveal that ERP implementation can
improve organizational flexibility, reduce operational costs, facilitate better information
transparency and quality, and ensure better and faster compliance with legal requirements and
frameworks. This aligns with the findings in this study.

The study’s findings also align with those of Xu et al. (2016) as it indicates that the successful
adoption of ERP systems can produce a superior integrated shared data system that can link all
departmental scope of association such as human resources, supplier relation (procurement),
financial management, and development management. However, by breaking down ERP
perceptions into financial management, project management, human resource, procurement and
logistical management, and looking at them individually, the study was able to identify factors
which are perceived to be what an ERP system facilitates within the departmental scope, instead
of the global perspective as indicated by Xu et al. (2016).

8.2.2 IMPLICATION OF FINDINGS

The study’s interest in establishing the general perception of ERP systems in the construction
industry was aimed at understanding the construction professionals’ attitudes toward these
systems. Attitude is a variable which can affect the end-users’ perception regarding the
software’s usefulness and how it can improve the manner in which they perform their jobs.
Attitude affects the prospective end-users’ probability of actually using the system.

69
The findings of this study suggests that the South African construction professionals based in the
Gauteng Province perceive ERP systems to be IT solutions which, from a financial management
solution perspective, possesses the ability to reduce operational costs, improve project cost
control, and maximise profitability opportunities. Furthermore, the study also suggests that the
general perception regarding these systems, from a human resource management point of view,
is that they are capable of enhancing effective planning of workforce distribution, improving the
administration of the project, improving company competitiveness, and also improving staff
collaboration. From a procurement and logistical management, the study suggests that ERP
system are perceived to enable the elimination of unnecessary processes, proactive material
supply, and also enhance the strategic planning and allocation of company resources. And lastly,
from a project management perspective, the general perception suggested by the study regarding
ERP systems is that they improve decision making, support cost effectiveness, accelerate
planning of project activities, identify idling resources, and schedule the project against required
resources effectively.

Therefore, these findings imply that the attitude towards the adoption and usage of the system is
a positive one. Therefore the implication is that the construction professionals within the
Gauteng region have a positive attitude towards using the IT solution, which suggests that in a
scenario where a construction organisation implements an ERP system, the end-users will more
likely display adoptive behaviour towards the new system, as opposed to rejecting it.

8.3 RESEARCH QUESTION TWO

What are the benefits of implementing an enterprise resource planning system in a construction
firm?

8.3.1 FINDINGS

Through the use of rankings (R) of the listed benefits that can be gained through the
implementation of ERP systems, which were ranked through the calculated standard deviations
(SD) and mean scores (x̅), the study reveals that construction firms can expect to gain informed

70
decision making (SD = 0.706; x̅ = 4.42; R = 1); effective information management (SD = 0.697;
x̅ = 4.42; R = 1); effective project coordination (SD = 0.651; x̅ = 4.36; R = 2); the elimination of
unnecessary processes (SD = 0.615; x̅ = 4.36; R = 2); the elimination of idling resources (SD =
0.628; x̅ = 4.34; R = 3); improved project administration (SD = 0.636; x̅ = 4.34; R = 3);
improved information sharing (SD = 0.616; x̅ = 4.30; R = 4); better project planning (SD =
0.704; x̅ = 4.22; R = 5); efficient material and plant coordination (SD = 0.688; x̅ = 4.20; R = 6);
optimised utilisation of production resources (SD = 0.682; x̅ = 4.19; R = 7); effective
subcontractor coordination (SD = 0.702; x̅ = 4.19; R = 7); reduction of project duration (SD =
0.720; x̅ = 4.16; R = 8); reduction in order errors (SD = 0.760; x̅ = 4.14; R = 9); and improved
transparency of management responsibilities (SD = 0.733; x̅ = 4.10; R = 10).

The findings from the study fundamentally supports the study conducted by Bhirud and Revatkar
(2016) where they indicate that through the implementation of ERP systems organisations can
benefit by cost optimization, incorporation of design changes, consistent quality conformance,
information reliability, faster and on-time material delivery, and incorporation of value
engineering. The study is also in agreement with Oracle’s (2016) white paper on project portfolio
management through an ERP system. The organisation states that these systems can simplify
project planning and efficiently manage project resources. Furthermore, the study is in agreement
with Oracle’s (2016) white paper on contract management in which the organisation states that
ERP systems facilitate the management of all critical information and enable complete visibility,
which is in agreement with this study. According to Kruger and Rampal (2009) as cited by
Mushavhanamadi (2013), the benefits that can also be gained through the implementation of an
ERP system are that it facilitates orders to be made efficiently, aligns sales with production,
integrates requisitions with delivery data, and provides efficient plant scheduling and production
processes. Further benefits include better coordination and processing of information, reduction
in carrying costs, and a decrease in process cycle time (Davenport, 2000; Elarbi, 2001; Chung et
al.,2008).

8.3.2 IMPLICATION OF FINDINGS

The implementation of an ERP system is often an investment move which is categorised as

strategic in nature; therefore the perception of benefits which can potentially be gained through

71
the implementation of ERP systems can be very influential in terms of an organisation’s
commitment to the idea of adopting the system. The findings indicate that construction
professionals in the Gauteng Province expect informed decision making, effective information
management, effective project coordination, and the elimination of idling resources and
unnecessary processes to be among the top benefits to be gained from the implementation of an
ERP system solution. This implies that, with the prospective end-user being of the view that ERP
systems possess the ability to facilitate the gaining of various influential benefits, the perceived
usefulness of the system by end-users can result in rapid improvement in terms of efficiency
within the organisation as perceived usefulness will result in the actual usage of the ERP system.
The findings imply that the actual usage of the ERP system will result in more informed decision
making, effective information management, and the like, due to the perceived usefulness and the
intentions of use of the prospective end-user.

8.4 RESEARCH QUESTION THREE

What are the critical factors needed for the successful implementation of an enterprise resource
planning system?

8.4.1 FINDING

Based on the rankings (R), and using the calculated standard deviation (SD) and mean scores (x̅)
of the listed critical success factors for the implementation of ERP systems, the most critical
factors include a clear understanding of company goals (SD = 0.710; x̅ = 4.39; R = 1);
infrastructure availability (SD = 0.671; x̅ = 4.37; R = 2); business process re-engineering (SD =
0.630; x̅ = 4.35; R = 3); careful selection of ERP system software from vendors (SD = 0.616; x̅ =
4.30; R = 4); ERP system vendor support (SD = 0.680; x̅ = 4.22; R = 5); effective change
management (SD = 0.696; x̅ = 4.20; R = 6); top management support (SD = 0.682; x̅ = 4.19; R =
7); staff education and training (SD = 0.714; x̅ = 4.16; R = 8); a competent ERP system
implementation team (SD = 0.763; x̅ = 4.14; R = 9); and effective implementation of ERP
system project management (SD = 0.720; x̅ = 4.11; R = 10).

The findings from the survey support the study by Tatari et al. (2008) of ERP systems in
construction firms. This suggests that top-management support, interdepartmental
communication, project team competence, vendor support, user training, and business process
72
reengineering are critical in facilitating ERP implementation success. In addition, Nah et al.
(2001) indicate that teamwork, partnership trust, change management, and the sharing of
common goals are critical factors in the successful implementation of an ERP system, which is in
agreement with this study. Other authors whose studies are in agreement with the findings of this
study include Kim et al. (2016) who state that successful implementation is also encouraged
through user education and training.

Furthermore, the findings were also similar to those of Nah et al. (2001) and Ferratt et al. (2006)
who concluded that main success factors for successful ERP implementation include effective
project management and top management support. Other technical factors from a technical
aspect include software selection and consultant capability and support. Voordijk et al. (2003)
state that the success of an ERP system implementation also depends largely on the IT and
business strategy. According to Hammer and Champy (2001), business process re-engineering is
understood to be the process of rethinking and radically redesigning the business process in order
to support improvements in all measures of performance. This step plays an important role in the
early implementation - the acceptance stage (Somers & Nelson, 2004; Nah & Delgado, 2006)
and is also in agreement with the findings of this study.

8.4.2 IMPLICATION OF FINDINGS

The implementation of ERP systems enables firms to enhance their efficiency and
competitiveness through the integration of basic business processes. However, the gains which
can be realised from ERP systems rely heavily on its successful implementation; failure to
succeed compromises forthcoming benefits of enhanced productivity and strengthened company
competitiveness. For the sake of a successful implementation of ERP systems, there are various
factors which are critically influential, often referred to as critical success factors.

The findings of this study identified a clear understanding of company goals, the availability of
infrastructure, business process engineering, careful selection of ERP system software from ERP
vendors, ERP system vendor support, and effective change management as principal elements
which are a prerequisite for facilitating a successful implementation. Therefore the study implies
that enormous rewards can be reaped by a top management which supports the needs of the
process, and leads with enthusiasm and a positive commitment. The study findings also imply

73
that the support of top management accommodates the communication of the company’s
corporate strategy to the end-users clearly and also makes the required infrastructure available.

Further implications gathered from the implications of the study suggest that organisations
should be prepared to change the process of doing business in order to align it with the ERP
solution. The re-engineering of the business process minimises the extent to which the software
would require customisation, which can go hand-in-hand with the careful selection of the ERP
systems where the support of an ERP vendor can assist with the selection of the most flexible
ERP solution which best fits the organisation’s business process with minimal customisation.
The support of an ERP vendor extends to the education and training of the prospective end-users
for the sake of making them more knowledgeable about the product. Lastly, the study’s finding
imply that change management is a necessary procedure which helps with the communication of
strategies regarding the adoption of the complex change within the organisation with less
resistance to change. This prepares the prospective end-users to accept the software with the
intention to use it.

8.5 RESEARCH QUESTION FOUR

What are the key performance indicators for successful implementation of ERP in construction
firms?

8.5.1 FINDINGS

According to the rankings (R), and using the calculated standard deviation (SD) and mean scores
(x̅) of listed key performance indicators (KPIs) of successful ERP system implementation, the
study revealed that most important key performance indicators include a centralised project
execution plan (SD = 0.720; x̅ = 4.35; R = 1); user satisfaction (SD = 0.704; x̅ = 4.35; R = 1);
effective management of company resource (SD = 0.681; x̅ = 4.33; R = 2); error-free processing
(SD = 0.624; x̅ = 4.32; R = 3); process cycle time reduction (SD = 0.616; x̅ = 4.30; R = 4); stable
work flow (SD = 0.606; x̅ = 4.30; R = 4); improvement in procurement processes (SD = 0.695; x̅
= 4.22; R = 5); proactive material supply (SD = 0.694; x̅ = 4.19; R = 6); improvement in plant
scheduling (SD = 0.679; x̅ = 4.18; R = 7); compatibility with existing software in the company

74
(SD = 0.720; x̅ = 4.17; R = 8); better project stakeholder management (SD = 0.775; x̅ = 4.14; R =
9); and improved order fulfilment rate (SD = 0.718; x̅ = 4.12; R = 10).

There is limited research which explores the key performance indicators of a successful ERP
system implementation. However, the findings from this study support the work of Chung (2007)
and Chung et al. (2009) in which the authors state that user satisfaction is one of the information
systems’ key performance indicators. Moreover, in this study the researcher established that the
manifestation of the benefits expected from the ERP systems i.e. effective management of
company resources, reduction in process cycle times, improved plant scheduling and project
stakeholder management can be used as success indicators of successful ERP implementation.
Furthermore, this is supported by Skibniewski and Ghosh (2009) who instead speak of project
related time-sensitive KPIs which essentially communicate project improvement planning,
resource management, subcontractors and workforce management (stakeholder management).
The KPIs found in this study essentially concur with the key performance indicators stated by
Skibniewski and Ghosh (2009), since the indicators the study suggests directly influence them
i.e. construction cost, time, quality, client satisfaction, productivity and profitability.

8.5.2 IMPLICATION OF FINDINGS

To determine the degree to which the ERP systems were successfully implemented, the
development of key performance indicators are of utmost importance. These indicators assist
with the measurement of performance in specific areas that are regarded to have a positive
influence on achieving the objective of improvement of construction project performance. The
findings of this study identified the key performance indicators of a success implementation of
an ERP system in a construction firm to include a centralised project execution plan, user
satisfaction, effective management of company resources, error-free processing, process cycle
time reduction, and improvement procurement processes.

These findings imply that the implementation of an ERP system should result in the introduction
of a new virtual platform which, through an interface manager, centralises project intelligence.
The centralised project plan exposes subordinates to a wider range of information which will
now be shared, instead of only being available upon request from project leaders. This has a
motivational influence on the subordinates’ work, as informed decision making will be

75
drastically enhanced through the quality of information to which the user is exposed. The study
also implies that through the exposure to quality and reliable information, error-free processing
can be regarded an indicator as well, as this can tell us about the degree to which information
duplication and information of a poor quality have been eliminated.

Other indicators which the study identified are the process cycle time reduction and the
improvement in the procurement process. These imply that the successful implementation of an
ERP system should be indicated through the reduction of certain process cycles, as an ERP
system is expected to trim unnecessary business processes within an organisation. The study also
implies that the procurement process of the company should also indicate a performance
improvement which can be indicated through a noticeable reduction in delay regarding the
acquisition of certain good and service. Furthermore, the study’s findings also imply that the
effective management of company resources should be an indicator of a successful ERP system
implementation because an ERP system enhances effective scheduling and allocation of
company resources; therefore it should be indicated through a cohesive management of
resources. And lastly, the study implies that user satisfaction is one of the key performance
indicators of a successful implementation because the entire system relies heavily on the
prospective end-user’s belief regarding how these systems can be advantageously used to
enhance the performance of executing the responsibilities. The end-users’ satisfaction has a
strong correlation with their perception of the system’s usefulness, their intentions of using the
system, and the actual system being implemented. This has been verified through many
information system research contexts.

8.6 RESEARCH QUESTION FIVE

Can a construction enterprise resource planning system be used as a tool to improve project
performance in South Africa?

8.6.1 FINDINGS

In accordance with the rankings (R) of the improvement of project performance through the
implementation of ERP systems in the construction industry, concluded through the calculated
standard deviation (SD) and mean scores (x̅) of the listed factors related to improvements of
76
project performance categorised into time, cost and quality related factors in the previous
chapter. The study revealed that, from a time-related perspective, an ERP system improves
project performance through the steadiness of material supply (SD = 0.675; x̅ = 4.34; R = 1);
effective planning of project execution (SD = 0.714; x̅ = 4.32; R = 2); controlled competition for
site resource (SD = 0.685; x̅ = 4.31; R = 3); resource availability (SD = 0.676; x̅ = 4.31; R = 3);
better flow of interdependent work activities (SD = 0.661; x̅ = 4.29; R = 4); cohesiveness
between project stakeholders (SD = 0.625; x̅ = 4.27; R = 5); tracking of material ordering and
delivery to construction sites (SD = 0.702; x̅ = 4.19; R = 6); in-time material requisitioning (SD
= 0.697; x̅ = 4.18; R = 7); just-in-time material delivery (SD = 0.671; x̅ = 4.16; R = 8); reduced
site preparation time (SD = 0.708; x̅ = 4.15; R = 9); and elimination of material delays (SD =
0.783; x̅ = 4.09; R = 10).

From a cost-related perspective, the study further revealed that an ERP system can reduce
operational costs (SD = 0.680; x̅ = 4.43; R = 1); eliminate idling resources (SD = 0.654; x̅ =
4.37; R = 2)’ reduce inventory levels (SD = 0.630; x̅ = 4.35; R = 3); enhance cost control
systems (SD = 0.616; x̅ = 4.30; R = 4); eliminate inconsistent material procurement (SD = 0.698;
x̅ = 4.22; R = 5); use appropriate construction methods (SD = 0.694; x̅ = 4.19; R = 6); use
material effectively (SD = 0.703; x̅ = 4.16; R = 7); monitor resource cost (SD = 0.708; x̅ = 4.13;
R = 8); eliminate poor workmanship (SD = 0.811; x̅ = 4.10; R = 9), and increase profit margins
(SD = 0.723; x̅ = 4.08; R = 10).

And lastly, from a quality perspective, the study reveals that an ERP system eliminates shortage
of skilled labour (SD = 0.695; x̅ = 4.22; R = 1); promotes effective communication (SD = 0.712;
x̅ = 4.22; R = 1); ensures effective document controlling (SD = 0.688; x̅ = 4.20; R = 2); conforms
to specification (SD = 0.920; x̅ = 4.20; R = 2); promotes adequate project planning (SD = 0.682;
x̅ = 4.19; R = 3); enhances quality assessment systems (SD = 0.720; x̅ = 4.16; R = 4); enhances
the quality assessment system (SD = 0.760; x̅ = 4.14; R = 5); allocates experienced personnel
(SD = 0.733; x̅ = 4.10; R = 6); ensures a clear understanding of project requirements (SD =
0.727; x̅ = 4.09; R = 7); facilitates plant availability (SD = 0.725; x̅ = 4.07; R = 8); facilitates the
acquisition of quality of material (SD = 0.738; x̅ = 4.05; R = 9); and also facilitates quality
auditing (SD = 0.738; x̅ = 4.10; R = 10).

77
There are no documented studies investigating the improvement of construction project
performance through the implementation of ERP system implementation. However, the study by
Mulenga (2014) and Sibiya (2015) suggests that, from a time and cost aspect, the performance of
a project can be improved through proper project planning and scheduling, effective site
management, clear communication, conformance to construction drawings and specification,
resource availability, timely supply of material, and speedy decision making. These factors are
also in agreement with the findings of Frimpong et al. (2003) who state that deficiencies in
planning and scheduling are major causes of construction project cost and schedule overrun.
Therefore this study’s findings are in agreement with those of Frimpong et al. (2003), Mulenga
(2014) and Sibiya (2015), since its findings suggest that the implementation of ERP systems can
support these methods of improving construction project performance.

8.6.2 IMPLICATION OF FINDINGS

The measurement of project performance can be understood to be a process of evaluating the

efficiency and effectiveness of certain work procedures. An effective project performance
measurement system can be regarded as effective if it possesses the ability to first of all enable
assessment to take place. Then the system should also be able to facilitate the detection of
problems and assess the efficiency and effectiveness of certain actions against predetermined
performance criteria. The evaluation of project performance can be undertaken through the use
of various performance indicators related to a variety of dimensions; however, the most
predominant dimensions for evaluating performance in the construction industry have always
been time, cost, and quality. Hence this study only looked at how ERP systems can influence
project performance from these dimensions.

The study reveals that through the implementation of ERP systems, construction project
performance can be improved from a time-related dimension through the improvement in the
steadiness in material supply, effective planning of project execution, controlled competition for
resources, resource availability, and better flow of interdependent work activities. From a cost
perspective, improvements facilitated by ERP systems can be the reduction in operational costs,
elimination of idling resources, reduced inventory levels, enhanced cost control systems, and the
elimination of an inconsistent material supply. In addition, from a quality perspective,
improvements can be expected from the elimination of the shortage of skilled workers, and from

78
effective communication, effective document controlling, conformance to specification, and
adequate project planning.

These findings imply that the implementation of an ERP system in a construction organisation
can positively affect the ‘iron triangle’ i.e. time, cost and quality, by influencing variables which
affect their global performance. The study implies that by influencing the efficiency of material
supply, project execution planning, competition for resources, inventory, skills of workers,
communication, document controlling, and the like, the performance of construction projects can
be effectively improved.

8.7 CONCLUSION

In this chapter the respondents’

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

79
 CHAPTER SIX

CONCLUSIONS AND RECOMMENDATIONS

9.0 INTRODUCTION

The aim of this study was to evaluate the implementation

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

9.1 RESEARCH OBJECTIVE ONE

The first objective was to determine the perceptions of professionals regarding enterprise
resource planning systems in the construction industry. The literature reviewed revealed that
ERP systems in the construction industry are systems which facilitate the optimization of cost,
incorporation of design changes, support conformance to quality conformance on a consistent
basis, information which is reliable, faster and on-time material delivery. In addition, an ERP
system incorporate value engineering across an organisation, provides solutions to complication
flaws in project tracking, ensures the management of company resources, facilitates the process
of decision making, cuts operational costs, provides real time information, promotes informed

80
decision making, improves organizational flexibility, reduces operational costs, facilitates better
information transparency and quality, and promotes better and faster compliance with legal
requirements and frameworks.

The findings extrapolated from the questionnaire survey results obtained from the randomly
selected respondents reveal that ERP system perceptions categorised into four management
solutions, namely financial management, human resource management, procurement and
logistical, and project management in the Gauteng Province, South Africa, are that an ERP
system, from a financial management perspective, is perceived to be a system which reduces
operation costs, improves project cost control, maximises profitability opportunities, reduces
unnecessary inventory, generates accurate financial reports, reduces financial risks, creates
process transparency to financial manager, enhances financial capabilities of firms, accelerates
the order-to-cash cycle, and creates awareness of reducing asset values.

From a human resource management perspective, the study further revealed that an ERP system
is a system which is believed to possesses the ability to enhance the effective planning of
workforce distribution, improve project administration, improve company competitiveness,
maximise opportunities for staff education, improve staff collaboration, increase organisational
flexibility, promote systematic human capital management, strengthen compliance with health
and safety requirements, strengthen compliance with workplace legislation, and improve
workforce efficiency.

The study further reveals, from a procurement and logistical management perspective, that an
ERP system is perceived to eliminate unnecessary processes, enhance strategic resource
planning, enhance strategic resource allocation, optimise plant scheduling processes, promote
proactive resource procurement, facilitate just-in-time resource delivery, streamline material
flow, optimise the use of inventory stock, improve logistical management, and optimise the end-
to-end procure-to-pay process.

And lastly, from a project management perspective, the study reveals that an ERP system is
perceived to improve project decision making, support cost effectiveness, accelerate planning of
project activities, identify idling resource, facilitate effective work scheduling against project

81
resources, accelerate execution of project activities, eliminate unnecessary management
processes, enhance quality control processes, enhance project analysis accuracy, and facilitate
better stakeholder collaboration. These factors are considered the most important perceptions of
ERP systems per category in the Gauteng Province construction industry of South Africa. Hence,
from the reviewed literature and the distribution of a structured questionnaire, the first research
objective was fulfilled.

9.2 RESEARCH OBJECTIVE TWO

The second objective of this study was to identify the benefits of implementing an enterprise
resource planning system in construction firms in the Gauteng Province construction industry,
South Africa.

The literature reviewed revealed that the benefits which construction companies can gain through
the implementation and adoption of ERP systems are cost optimization, incorporation of design
changes, consistent quality conformance, information reliability, faster and on-time material
delivery, and incorporation of value engineering. Other studies state ERP systems simplify
project planning, and efficiently manage project resources management and all critical
information. These systems also offer complete visibility, facilitate orders to be made efficiently,
align sales with production, integrate requisitions with delivery data, and provide efficient plant
scheduling and production processes. Further benefits include better coordination and processing
of information, reduction in carrying costs, and a decrease in process cycle time. Overall, the
ERP systems benefit packages include the enhancement of the company through streamlining,
improving and controlling business processes such as procurement, customer offers, and
equipment maintenance and marketing campaigns. Additional benefits include significant cost
reduction in operational costs, time saving on operational duration, flexible and efficient
production planning, facilitated communication and data transfer of critical information for the
whole enterprise, reduction in the number of logistical errors, and increased customer
satisfaction.

The results gathered through the conducting of a questionnaire survey where respondents were
selected randomly revealed that the top most significant benefits of ERP system implementation
in construction firms in the Gauteng Province construction industry, South Africa are that ERP

82
systems will attract the benefit of informed decision making, effective information management,
effective project coordination, elimination of unnecessary processes, elimination of idling
resources, improved project administration, improved information sharing, better project
planning, efficient material and plant coordination, optimised utilisation of production resources,
effective subcontractor coordination, reduction of project duration, reduction in order errors, and
improved transparency of management responsibilities. Therefore, from the reviewed literature
and the distribution of a structured questionnaire, the second research objective was fulfilled.

9.3 RESEARCH OBJECTIVE THREE

The third objective of the study was to evaluate the critical factors needed for the successful
implementation of an enterprise resource planning system in a construction firm in the Gauteng
Province construction industry of South Africa. The reviewed literature on the critical factors to
be considered regarding the implementation of ERP revealed that a clear understanding of
strategic goals, commitment and support by top management, excellent project management,
organisational change management, an effective implementation team, education and training,
data accuracy and translation, an implementation budget, and sufficient implementation time to
be a few of the most critical factors to be considered for the successful implementation of ERP
systems. Other authors stated that interdepartmental communication and business process
reengineering are also very critical in facilitating ERP implementation success, along with
teamwork, partnership trust and the sharing of common goals. Other factors from a technical
aspect include software selection and consultant capability and support.

The survey results obtained from the respondents indicate that the most important critical success
factors for successful ERP implementation in the Gauteng Province construction industry, South
Africa include a clear understanding of company goals, infrastructure availability, business
process reengineering, careful selection of ERP system software from vendors, ERP system
vendor support, effective change management, top management support, staff education and
training, a competent ERP system implementation team, and effective implementation of ERP
system project management. Therefore, the third objective was achieved through the review of
relevant literature and analysed findings.

83
9.4 RESEARCH OBJECTIVE FOUR

The fourth objective of this study was to establish the key performance indicators for the
successful implementation of ERP systems in construction firms in the Gauteng Province
construction industry, South Africa.

The reviewed literature revealed that there are limited research studies which explore the key
performance indicators of a successful ERP system implementation. However, authors who
made mention of KPIs state that user satisfaction is one of the information systems’ key
performance indicators. Other authors communicated project-related time-sensitive KPIs which
essentially have to do with project improvement planning, resource management, and
subcontractors and workforce management (stakeholder management). A variety of researchers
studied the key performance indicators for a successful adoption of ERP systems, which is a
different approach compared to the study of the system’s implementation.

From the data collected, using a structured questionnaire, it was observed that the most important
key performance indicators for the successful implementation of an ERP system in construction
firms include a centralised project execution plan, user satisfaction, effective management of
company resources, error-free processing, process cycle time reduction, stable work flow,
improvement in procurement processes, proactive material supply, improvement in plant
scheduling, compatibility with existing software in the company, better project stakeholder
management, and improved order fulfilment rate. It can therefore be concluded that the research
objective was fulfilled through the survey data analysis and the related findings.

9.5 RESEARCH OBJECTIVE FIVE

The fifth objective of this study was to evaluate whether a construction enterprise resource
planning system can be used as a tool to improve construction project performance in the
Gauteng Province construction industry, South Africa. The reviewed literature indicated that
there are no documented studies investigating the improvement of construction project
performance through the implementation of ERP systems. However, there is existing literature
regarding the improvement of performance of a project through proper project planning and
scheduling, effective site management, clear communication, conformance to construction
drawings and specification, resource availability, timely supply of material, and speedy decision

84
making. Other authors have also indicated that deficiencies in planning and scheduling are major
causes of construction project cost and schedule overruns which essentially affect project
performance.

The survey revealed that, according to the randomly selected research respondents, ERP system
factors related to improvement of project performance can be categorised into time, cost and
quality. From a time-related perspective, an ERP system can improve project performance
through the steadiness of material supply, effective planning of project execution, controlled
competition for site resources, resource availability, better flow of interdependent work
activities, cohesiveness between project stakeholders, tracking of material ordering and delivery
to construction sites, in-time material requisitioning, just-in-time material delivery, reduced site
preparation time, and the elimination of material delays.

Furthermore, from a cost-related perspective, the study further revealed that an ERP system can
improve construction project performance through the reduction of operational costs, elimination
of idling resources, reduction in inventory levels, enhancement of cost control systems,
elimination of inconsistent material procurement, use of appropriate construction methods,
effective material use, resource cost monitoring, elimination of poor workmanship, and increased
profit margins.

And lastly, from a quality perspective, the study reveals that an ERP system can also improve
construction project performance through the elimination of the shortage of skilled labour,
effective communication, effective document controlling, conformance to specification, adequate
project planning, enhanced quality assessment systems, experienced personnel allocation, clear
understanding of project requirements, the facilitation of plant availability, acquisition of quality
of material, and also quality auditing. It can therefore be inferred that the research objective was
achieved based on the survey data analysis and findings.

9.6 CONCLUSIONS

The reviewed literature revealed that there are a number of factors to be considered for the

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

85
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

9.7 RECOMMENDATIONS

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

9.8 AREAS FOR FURTHER STUDIES

The study further recommends the following as areas of possible research:

 Further study should be carried out to assess the extent to which project performance can
be improved through the implementation of an ERP and BIM hybrid system in the
construction industry.

86
 Further study should be done to establish the key performance indicators of a successful
adoption of an ERP system in the South African construction industry.
 Further research should be carried out to assess the impact of organisational culture on
the perception of ERP systems in the construction industry.
 A study should be carried out to develop a successful model for the implementation of an
ERP system in the construction industry.
 A study should be conducted that develops a framework on how to facilitate
collaboration among the client, the design team, and the contractor on one virtual desk
through the use of ERP systems in the construction industry.

87
REFERENCES

88
APPENDIX 1: Cover Letter

University of Johannesburg

Department of Construction Management and Quantity Surveying

Doornfontein, 2028 2016.

Dear Sir/Madam

LETTER OF INVITATION FOR RESEARCH SURVEY

The Department of Construction Management and Quantity Surveying at the University of Johannesburg,
Doornfontein campus, South Africa, is undertaking a research project on the following topic: AN EVALUATION
OF THE IMPLEMENTATION OF AN ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM FOR
EFFECTIVE PERFORMANCE OF CONSTRUCTION PROJECTS IN SOUTH AFRICA.

To this end, we kindly request that you complete the following short questionnaire. Answering this questionnaire
will take approximately 15 minutes.

Please do not enter your name or contact details on the questionnaire. It remains anonymous. Information
provided by you remains confidential and will be kept at the Department.

Should you wish to know the findings of the research, you are welcome to contact M.M. Mathegu telephonically at:
+27795429079 or at:mphumimathegu@gmail.co.za. The Faculty will gladly send you a summary of the results.
Please answer the questions TRUTHFULLY AND SINCERELY so as to help us improve the management of
contracts in South Africa.

Thanking you in advance

SS XXXXXXXXXXXXX

89
APPENDIX 2: Questionnaire

QUESTIONNAIRE ON AN EVALUATION OF THE IMPLEMENTATION OF AN ENTERPRISE

RESOURCE PLANNING (ERP) SYSTEM IN THE SOUTH AFRICAN CONSTRUCTION INDUSTRY
INSTRUCTIONS:
PLEASE ANSWER THE FOLLOWING QUESTIONS BY CROSSING (X) ON THE RELEVANT BLOCK
Example of how to complete this questionnaire:
Your gender? If you are female:

Male 1
Female 2

SECTION A: BACKGROUND INFORMATION

This section of the questionnaire refers to background or biographical information. Although we are aware of the
sensitivity of the questions in this section, the information will allow us to compare groups of respondents. Once
again, we assure you that your response will remain anonymous. Your cooperation is appreciated.

1. Gender

Male 1
Female 2

2. What is your age group?

21 years – 25 years 1
26 years – 30 years 2
31 years – 35 years 3
36 years – 40 years 4
41 years – 45 years 5
46 years – 50 years 6
51 years – 55 years 7
Older than 55 years 8

3. Ethnicity

African 1
White 2
Coloured 3
Indian or Asian 4

4. State your highest educational qualification?

Matric Certificate ( Grade 12 ) 1

Post-Matric Certificate or Diploma 2
Bachelor’s Degree 3

90
 Honours’ Degree 4
Master’s Degree 5
Doctorate 6

5. What is your profession?

Architect 1
Quantity Surveyor 2
Civil Engineer 3
Industrial Engineer 4
Electrical Engineer 5
Mechanical Engineer 6
Construction Manager 7
Construction Project Manager 8
Other - Specify: 9

6. How many years of experience do you have in the construction industry?

0 – 5 years 1
5 – 10 years 2
10 – 15 years 3
15 – 20 years 4
More than 20 years 5

7. For which of the following do you currently work?

Consultant 1
Contractor 2
Government 3
Others - specify 4

SECTION B: PERCEPTIONS OF ENTREPRISE RESOURCE PLANNING (ERP) SYSTEMS IN THE

SOUTH AFRICAN CONSTRUCTION INDUSTRY
Please indicate your answer using the following 5-point scale: 1= Strongly disagree (SD); 2= Disagree (D); 3=
Neutral (N); 4= Agree (A); 5= Strongly agree (SA)

8. To what extent do you agree with the following regarding the perceived role of enterprise resource planning
(ERP) systems in the construction industry?

Perceived roles of Enterprise Resource Strongly Strongly

Disagree Neutral Agree
Planning (ERP) disagree agree
FINANCIAL SOLUTION
FSRE1 Enhances financial capabilities of firms 1 2 3 4 5
FSRE2 Generates accurate financial reports 1 2 3 4 5

FSRE3 Improves project cost control 1 2 3 4 5

91
FSRE4 Maximises profitability opportunities 1 2 3 4 5
FSRE5 Reduces operational costs 1 2 3 4 5
FSRE6 Creates awareness of reducing asset values 1 2 3 4 5
FSRE7 Reduces unnecessary inventory 1 2 3 4 5
Creates process transparency to financial 1 2 3 4 5
FSRE8
managers
FSRE9 Accelerates the order-to-cash cycle 1 2 3 4 5
FSRE10 Reduces financial risks 1 2 3 4 5

HUMAN RESOURCE MANAGEMENT SOLUTION

HRMS1 Improves workforce efficiency 1 2 3 4 5

HRMS2 Improves workforce Productivity 1 2 3 4 5

HRMS3 Improves workforce Satisfaction 1 2 3 4 5
Effective planning of workforce
HRMS4 1 2 3 4 5
distribution
HRMS5 Effective attendance to workforce demands 1 2 3 4 5

HRMS6 Systematic human capital management 1 2 3 4 5

HRMS7 Improves project administration 1 2 3 4 5
HRMS8 Maximises opportunities for staff education 1 2 3 4 5
Strengthens compliance with health and
HRMS9 1 2 3 4 5
safety requirements
Strengthens compliance with workplace
HRMS10 1 2 3 4 5
legislation
HRMS11 Improves company competitiveness 1 2 3 4 5
HRMS12 Improves staff collaboration 1 2 3 4 5
HRMS13 Increases organisational flexibility 1 2 3 4 5

PROCUREMENT AND LOGISTICAL SOLUTION

PLS1 Streamlines material flow 1 2 3 4 5

Optimises end-to-end procure-to-pay 1 2 3 4 5
PLS2
process
PLS3 Optimises use of inventory stock 1 2 3 4 5

PLS4 Proactive resource procurement 1 2 3 4 5

PLS5 Facilitates just-in-time resource delivery 1 2 3 4 5

PLS6 Enhances strategic resource planning 1 2 3 4 5

PLS7 Enhances strategic resource allocation 1 2 3 4 5

PLS8 Eliminates unnecessary processes 1 2 3 4 5

PLS9 Improves logistical management 1 2 3 4 5

PLS10 Optimises plant scheduling processes 1 2 3 4 5

92
 PLS11 Enhances warehouse management 1 2 3 4 5

PROJECT MANAGEMENT SOLUTION

PMS1 Facilitates high-quality production 1 2 3 4 5

PMS2 Enhances quality control processes 1 2 3 4 5
PMS3 Supports cost effectiveness 1 2 3 4 5
PMS4 Accelerates planning of project activities 1 2 3 4 5
PMS5 Accelerates execution of project activities 1 2 3 4 5
PMS6 Facilitates better stakeholder collaboration 1 2 3 4 5
Eliminates unnecessary management
PMS7 1 2 3 4 5
processes
PMS8 Increases client satisfaction 1 2 3 4 5

PMS9 Improves project decision making 1 2 3 4 5

PMS10 Enhances project analysis accuracy 1 2 3 4 5
Facilitates effective work scheduling
PMS11 1 2 3 4 5
against project resources
PMS12 Identifies idling resources 1 2 3 4 5
PMS13 Maximises profitability 1 2 3 4 5

SECTION C: CRITICAL FACTORS FOR THE SUCCESSFUL IMPLEMENTATION OF ENTERPRISE

RESOURCE PLANNING

9. To what extent do you agree that the following are critical factors for successful ERP implementation?

Critical factors for successful Strongly Strongly

Disagree Neutral Agree
implementation disagree agree
CFSI1 Business process reengineering 1 2 3 4 5
Effective implementation of ERP project
CFSI2 1 2 3 4 5
management
Careful selection of ERP system software
CFSI3 1 2 3 4 5
from vendors
CFSI4 Staff education and training 1 2 3 4 5

CFSI5 Top management support 1 2 3 4 5

CFSI6 Competent ERP implementation team 1 2 3 4 5

CFSI7 Sufficient project implementation time 1 2 3 4 5

CFSI8 End-user involvement 1 2 3 4 5

CFSI9 Interdepartmental communication 1 2 3 4 5
CFSI10 Interdepartmental cooperation 1 2 3 4 5

CFSI11 ERP vendor support 1 2 3 4 5

CFSI12 Perceived usefulness by the end-user 1 2 3 4 5

93
 CFSI13 Clear understanding of company goals 1 2 3 4 5

CFSI14 Effective change management 1 2 3 4 5

CFSI15 Infrastructure availability 1 2 3 4 5

CFSI16 Data conversion 1 2 3 4 5
CFSI17 Data integration 1 2 3 4 5
CFSI18 Software customisation capability 1 2 3 4 5

SECTION D: BENEFITS OF IMPLEMENTING ERP SYSTEMS IN CONSTRUCTION FIRMS

10. To what extent do you agree with the following being the benefits that can be expected from implementing an
ERP system in a construction firm?

Strongly Strongly
Benefits of ERP implementation Disagree Neutral Agree
disagree agree
Optimised utilisation of production
EBEI1 1 2 3 4 5
resources
EBEI2 Informed decision making 1 2 3 4 5
EBEI3 Better project planning 1 2 3 4 5
EBEI4 Reduction of project duration 1 2 3 4 5
EBEI5 Reduction in order errors 1 2 3 4 5
EBEI6 Elimination of idling resources 1 2 3 4 5
Improved transparency of management
EBEI7 1 2 3 4 5
responsibilities
EBEI8 Proactive material supply 1 2 3 4 5
EBEI9 Effective project progress monitoring 1 2 3 4 5
EBEI10 Improved project control 1 2 3 4 5
EBEI11 Effective project coordination 1 2 3 4 5
EBEI12 Improved quality of work 1 2 3 4 5
EBEI13 Reduction in reworks 1 2 3 4 5
EBEI14 Better project control 1 2 3 4 5
EBEI15 Efficient material and plant coordination 1 2 3 4 5
EBEI16 Improved client satisfaction 1 2 3 4 5
EBEI17 Improved information sharing 1 2 3 4 5
EBEI18 Reduction in disputes/ conflict 1 2 3 4 5
EBEI19 Reduction in order cycle-time 1 2 3 4 5
EBEI20 Effective Subcontractor coordination 1 2 3 4 5
EBEI21 Effective information management 1 2 3 4 5
EBEI22 Maximised project profitability 1 2 3 4 5
EBEI23 Improved project administration 1 2 3 4 5
EBEI24 Elimination of unnecessary processes 1 2 3 4 5

94
SECTION E: KEY PERFORMANCE INDICATORS FOR SUCCESSFUL ERP IMPLEMENTATION IN A
CONSTRUCTION FIRM
11. To what extent do you agree with the following to be the key performance indicators for the successful
implementation of ERP in construction firms?

Key performance indicators (KPIs) for Strongly Strongly

Disagree Neutral Agree
successful ERP implementation disagree agree
SKPI1 Process cycle time reduction 1 2 3 4 5
SKPI2 Error free processing 1 2 3 4 5
Effective management of company
SKPI3 1 2 3 4 5
resources (plant, material, and labour)
SKPI4 Improvement in plant scheduling 1 2 3 4 5
SKPI5 Improvement in quality 1 2 3 4 5
SKPI6 Stable work flow 1 2 3 4 5
SKPI7 Centralised project execution plan 1 2 3 4 5
SKPI8 Improved profitability 1 2 3 4 5
SKPI9 Increased productivity 1 2 3 4 5
SKPI10 Effective storage yard management 1 2 3 4 5
SKPI11 Effective human resource management 1 2 3 4 5
Compatibility with existing software in the
SKPI12 1 2 3 4 5
company
SKPI13 Improvement in procurement processes 1 2 3 4 5
SKPI14 Reduction of disputes 1 2 3 4 5
SKPI15 Better project stakeholder management 1 2 3 4 5
SKPI16 User Satisfaction 1 2 3 4 5
SKPI17 Improved order fulfilment rate 1 2 3 4 5
SKPI18 Proactive material supply 1 2 3 4 5
SKPI19 Improved material handling systems 1 2 3 4 5
SKPI20 Reduced rework 1 2 3 4 5

SECTION F: IMPROVEMENT OF PROJECT PERFORMANCE THROUGH THE IMPLEMENTATION

OF CONSTRUCTION ERP SYSTEMS

12. To what extent do you agree with the following statements regarding the improvement of construction project
performance in South Africa through the adaptation and usage of ERP systems?

Potential improvements in project Strongly Strongly

Disagree Neutral Agree
performance through the use of ERP disagree agree
TIME FACTOR
TFAP1 Enhanced project progress monitoring 1 2 3 4 5
TFAP2 Steadiness of material supply 1 2 3 4 5
Tracking of material ordering and 1 2 3 4 5
TFAP3
delivery to construction site
TFAP4 Reduced in site preparation time 1 2 3 4 5
TFAP5 Elimination of material delays 1 2 3 4 5

95
TFAP6 Elimination of payment delays 1 2 3 4 5
TFAP7 Reduced material wastage 1 2 3 4 5
Better flow of interdependent work 1 2 3 4 5
TFAP8
activities
Cohesiveness between project 1 2 3 4 5
TFAP9
stakeholders
Clear work progress status to all site 1 2 3 4 5
TFAP10
management
TFAP11 Effective planning of project execution 1 2 3 4 5
TFAP12 In-time material requisitioning 1 2 3 4 5
TFAP13 Just-in-time material delivery 1 2 3 4 5
TFAP14 Controlled competition for site resource 1 2 3 4 5
TFAP15 Resource availability 1 2 3 4 5

COST FACTOR
CFAP1 Effective material use 1 2 3 4 5
CFAP2 Cash flow control of project 1 2 3 4 5
CFAP3 Resource cost monitoring 1 2 3 4 5
CFAP4 Elimination of idling resources 1 2 3 4 5
CFAP5 Reduced waste rate of materials 1 2 3 4 5
CFAP6 Enhanced cost control systems 1 2 3 4 5
Eliminates inconsistent material
CFAP7 1 2 3 4 5
procurement
CFAP8 Reduced rate of remedial works 1 2 3 4 5
CFAP9 Increased profit margins 1 2 3 4 5
CFAP10 Eliminates of poor workmanship 1 2 3 4 5
CFAP11 Accurate cash-flow project 1 2 3 4 5
CFAP12 Proper pre-contract planning 1 2 3 4 5
CFAP13 Proper project implementation 1 2 3 4 5
CFAP14 Use of appropriate construction methods 1 2 3 4 5
CFAP15 Reduced in inventory levels 1 2 3 4 5
CFAP16 Reduced operational costs 1 2 3 4 5
QUALITY FACTOR
QFAP1 Effective document controlling 1 2 3 4 5
Clear understanding of project
QFAP2 1 2 3 4 5
requirements
QFAP3 Experienced personnel allocation 1 2 3 4 5
QFAP4 Conformance to specifications 1 2 3 4 5
QFAP5 Enhanced quality assessment systems 1 2 3 4 5
QFAP6 Plant availability 1 2 3 4 5
QFAP7 Quality of material 1 2 3 4 5
QFAP8 Eliminates shortage of skilled labour 1 2 3 4 5
QFAP9 Effective communication 1 2 3 4 5
QFAP10 Quality auditing 1 2 3 4 5
QFAP11 Better design analysis 1 2 3 4 5

96
 QFAP12 Adequate method statement 1 2 3 4 5
QFAP13 Adequate project planning 1 2 3 4 5
QFAP14 Eliminates obsolete equipment 1 2 3 4 5
QFAP15 Eliminates sub-standard material supply 1 2 3 4 5

Thank you for your co-operation in completing this questionnaire and for also helping the construction
industry with the knowledge of construction computer software integration.

97