Professional Documents
Culture Documents
net/publication/318582183
CITATIONS READS
43 13,129
4 authors:
Some of the authors of this publication are also working on these related projects:
All content following this page was uploaded by Saurav Dixit on 17 August 2017.
Satya N Mandal
RICS School of Built Environment/ Amity University, Noida, India
Sanjeev Bansal
Amity Business School// Amity University, Noida, India
ABSTRACT
Purpose- The purpose of the research paper to study the factor affecting
construction productivity and rank them on the basis of the responses given to their
impact on the productivity of construction projects in India.
Design/methodology/approach- The research was conducted by a structured
questionnaire that was sent to 350 professional working in Indian construction
industry. This questionnaire requested the respondents to give a score to the 24
attributes identified that cause productivity losses in the construction industry through
literature review. They were asked to rate the attributes on a Likert scale rating of 1 to
5. The data collect than analysed using relative importance index and factor analysis.
Findings- The research study identifies the top ten attributes having a significant
impact on construction productivity using relative importance index and top three of
them are: Decision making, planning and logistics and supply chain management.
Secondly, there was 7 factor formed out of 24 attributes using factor
analysis/principal component analysis and the total variance explained by them is
74.58%. The factors are Poor site coordination, Lack of competency, Fragmented
supply chain, lack of commitment, Improper planning, Lack of commercial
management and Inefficient site management.
Research limitations- The research focused on the responses received through the
questionnaire and the number of respondents is 140 with a response rate of 40%. A
further more detailed research is required to suggest the control measures for the top
three significant factors identified from the research
1. INTRODUCTION
The contribution of Indian construction industry to GDP is about 8 % on an average in last 5
years (Planning Commission of India 12th five-year plan, 2015). Indian construction industry
provides employment approx. 41 million persons and it is ranked second in providing jobs
after Agriculture sector in India. The construction sector is the 2nd largest producer of jobs in
India after Agriculture and still the employment generation and the economic importance of
the sector, it encounters issues such as low productivity, delays in completion of projects and
lack of professional practices in the industry (Doloi, Sawhney, Iyer, & Rentala, 2012).The
construction industry is an important activity within most economies and the GDP get
influenced by Construction Productivity and the GDP also influences the Construction
industry (Cox et al., 1998, cited in(Madi, 2003). Construction sector strongly affects various
other sectors and having a direct impact over various economical, educational, Transportation,
and other sectors. Therefore we should pay attention to identify its major challenges to the
construction sector and their solutions (Mahamid, 2013). And Poor productivity in the
construction industry is one of the major challenges that the construction sector face and a
number of steps to improve the construction productivity have been taken in last 3-4 decades.
Researcher in past identified a number of reasons for construction project failures and
construction productivity are one of the mail issues and the factors or attributes responsible
for the loss of productivity needed to be identified to understand the main cause and its
remedial (Iyer & Jha, 2005). There are a number of papers and research work on the factors
affecting construction industry and many are from developed countries and very less is
explored in developing countries. Furthermore, the critical factors or attributes identified by
the researchers that are responsible for the loss of productivity in construction projects or
having a positive or negative impact on the construction productivity they advised that these
should be handled with caution and if required and possible to be further explored to achieve
success in completion of construction projects.
The Indian construction sector grows significantly over the past 15 years and enjoyed the
benefits of growing economy and FDI funds through other developed countries but still face
the issue of low construction productivity, delay in completion of projects and a number of
projects experience cost overrun. Construction industry majorly falling in the following
domains or sub-sectors are:
Percentage
1%
3%
95%
Construction industry creates aflow of physical assets into a number to sectors in Indian
economy. Indian construction industry having approx. 31,000 enterprises involved and
providing employment to approx. 41 million persons. The number rises from 14.5 million in
1951 to 41 million in 2011, it is around 300 % growth in the span of 60 years. The most
number of entities related to construction is of small scale having less than 200 employees i.e.
29,600 firms employ less than 200 persons. As you can interpret the above data the
percentage of small enterprises is large, which cleared the ground for the following
statements:
1. The industry is highly unstructured because the 95% of the total number of enterprises are
small enterprises.
2. There is alack of standard and in the implementation of standards due to the size of the
enterprises.
3. There is no proper scheme for construction of skills.
4. There should be a systematic approach and plan to enhance the skills of the number of
tradesmen employed in Indian construction industry.
5. They should be aware of sustainable practices in construction and the effect of sustainable
practices in construction/green construction on the environment and energy requirement of the
buildings.
construction council” (CIDC, cidcdatabase, 2015).The effort will be made on studying and
analysing the factors affecting the Construction productivity of all the resources by knowing
the basic causes or factors for low productivity, measures to improve will be suggested.
Bureau of Indian Standards etc. in order to set the productivity norms for various
construction related activities. But in order to optimise both cost & time and to minimise the
wastage of other resources as well (which is also the key philosophy of Lean Construction), it
is extremely crucial that the productivity of the resources involved in any project is closely
monitored and suitable actions are taken for their improvement.
2. LITERATURE REVIEW
Productivity in Indian construction industry is a burning issue since last few decades and a
number researcher worked on the topic. Construction productivity compromises the
productivity of all type of resources involved in the completion of a process i.e. Labour,
Money, Infrastructure, Space, Machinery, plant, Office and other resources. A number of
studies were carried how to improve and suggest measures to the construction productivity,
but only a few studies were taken out to find out the factors affecting the construction
productivity and most of them in the developed countries. A study on Labour productivity and
formwork operations is carried out by (moselhi& khan, 2010) “Analysis of labour
productivity of formwork operations in building construction”, in this paper the researcher’s
identified 9 parameter that affects the productivity of formwork operation workers and the
Temperature is having the most significant affecton the productivity. In 2014 (Mahmood,
Ahmed, panthi, &Kureshi, 2014) has “Determining the cost of poor quality and its impact on
productivity and profitability” in this paper they find a relationship between the poor quality
and productivity of the project and the results shows that after a study of 60 days and
implementing techniques to improve the quality of the construction the cost of poor quality is
decreased by 24% while Labour Productivity and profitability is increased by 17% and 11%
respectively. In 1993 (Dozzi, Eng., & Abourizk, 1993) come with a book “Productivity in
Construction” published by national research council Canada and they have summarized in
their finding that the construction productivity is the only weapon that you can use to stay
ahead from your competitions in the market and always have the niche in the construction
market. They have identified some factors that affect the construction productivity and also
provide some techniques to measure and improve the construction productivity i.e. factors
that affect productivity are: climate fluctuation, material deficiency, absence of experienced
outline and venture proficient group, plan changes, insufficient correspondence, deficient
arranging and booking, absence of supervisory preparing, endorsements and issue of licenses,
project management and many others. A technique to measure and improve productivity are
Field rating, work sampling, five-minute rating, field survey, The method productivity delay
model, crew balancing charts, simulation modelling & Analysis and other techniques. In 2013
(Mahamid, 2013) come up with a paper “Contractor’s prospective towards factors affecting
labour productivity ion building construction” Mahamid identified 31 factors affecting labour
productivity from the literature review and personal interviews with experts in the field and a
questionnaire is shared with 59 project managers. The findings of the study were top 5 factors
negatively affect the productivity of labour productivity are: Rework, lack of corporation and
communication between the construction parties, financial status of the owner, lack of labour
experience and lack of material availability.
The same context it was found in a paper “Improving construction productivity: A sub-
contractors prospective (Loosemore, 2014) in the findings the author indicate the main
determinants of productivity are some factors that have significant affects over productivity
are: relationship with principal contractor, early improvement in design, design management,
supervisory management, scheduling and coordination and other factors.
In 2014 (Rami Huges, 2014)found the factors affecting the construction productivity “A
study of enabling factors affecting construction productivity in an Australian environment”
the author identified 47 factors from the literature review and based on personal interviews
with experts in the industry. The factors shared with the 79 randomly selected persons a
questionnaire asked for a score, utilising a 0-4 Likert scale, from every about them with
admiration to the vitality about 47 factors identifier starting with the written works that might
have been recognised likely to influence construction gainfulness. The most significant
factors affect the construction productivity are: rework, poor supervisor competency and
incomplete drawings. In this paper, the methodology adopted by the researcher is factors
identified through literature review and share with 79 respondents on random. The analysis
tools used were relative importance index, reliability analysis to check the reliability of the
data received and factor analysis to group the same factors. Contractors have often been heard
to say, "As long as we are as aggressive and efficient as our usual competitors, we will always
get our share of work." But in today's marketplace, being as efficient as one's does not suffice.
Competition is no longer limited to contractors working in well-defined geographical areas.
The available work is being sought by firms from other parts of the country or even of the
globe (Dozzi, Eng., & Abourizk, 1993).
Economics have been saying it, something like that has constructors, sorted out work
everyone should remain competitive, we must generate a greater amount to each dollar used
ahead construction. And “we” may be everyone each specialist at an occupation during that
site could help moving forward profit. Profit issue might make isolated under macro also
micro levels. At those macro level, one bargain for contracting methods, work legislation, and
Labor Association. During micro level bargains for that administration and operations of a
project, mostly during the employment webpage. On move forward benefit we must have the
capacity with measure it, Furthermore we must have the ability will measure those impact of
transforms embraced for methods, endeavours Furthermore frameworks. The measured profit
could then a chance to be compared possibly should the individuals used to gather those
evaluate or should exactly creation guidelines.
3. RESEARCH METHODOLOGY
For this research paper consider a poll overview strategy or (questionnaire survey method) has
been received to discover the out the impact of various attributes on construction productivity
in Indian construction sector. The method is utilised broadly in various worldwide research
papers as talked about above in the writing audit. 24 qualities influencing construction
profitability that were recognised from the writing audit and through individual meeting with
industry specialists. Respondents were made a request to rate the chose properties/elements
influencing construction efficiency utilizing a Likert scale 1 to 5 (Rami Huges, 2014), the
respondent was represents the different type of professionals working or consulting in Indian
construction sector through a fair and holistic approach to provide equal chance to all the
stakeholders involve in the Indian construction industry. Heterogeneity in the example review
was kept up by moving toward the gatherings of chose respondents, those were speaking to
the imperative parts of the Indian construction industry.
1. No effect( or No opinion)
2. Less effect(No or minimal effect)
3. Minor effect(Minor problem)
4. Serious effect(Medium problem)
5. Very serious effect(major problem)
It is noticed that the numbers allow to the reactions (1-5) did not show that the interims
between the scales are equivalent, nor do they demonstrate outright amounts ( (Naoum,
1998).”A relative importance index (Rii) was applied to prioritise the severity of the factors”
(Iyer & Jha, 2005) (Lim & Alam, 1995) (Enshassi, Mohammad, Mustafa, & Mayer, 2010)
Research into construction productivity has utilised both quantitative and subjective
methodologies. Quantitative methodologies incorporate work ponder based models, figure
models (Thomas et al., 1990) and measurable pattern investigation of sources of info like
work costs, material costs and property costs (Tran and Tookey, 2011).The research utilised
for in this paper is Quantitative research philosophy. An aggregate 24 attributes have been
distinguished through the accessible writing audit and master feeling and the questionnaire is
imparted to all partner and gatherings in Indian construction Industry. The respondents were
made a request to rate the huge variables according to their effect calculate over construction
efficiency utilising a Likertscale have a rating from 1 to 5(Makulsawatudom, 2004). The
components were then positioned utilising a relative importance indices (Lim and Alum,
1995). From this positioning, 10 elements were evaluated as having a direct or higher impact
on construction efficiency.
r is the rating on a Likert scale (1-5) as for the impact on construction efficiency for a
specific element influencing construction profitability.
nr is the quantity of respondents giving a specific Likert scale rating r.
N is the aggregate number of respondents to a specific inquiry
Aibinu and Jagboro (2002), who connected this procedure to construction defer in
Nigeria, represent the procedure utilised. They had four inquiries requiring reactions as for the
recurrence with which specific construction defer variables affected on extending conveyance
("rarely", "now and then", "generally", "dependably") with weights running from one (at
times) to four (dependably), and one inquiry requiring an invalid reaction ("never"), with a
weighting of 0. The relative importance indices was acquired through isolating the weighted
score by four, the invalid inquiry having a weight of 0
Rii Table I
Rank Attributes Total responses Total score Rii
A1 Decision making 140 636 0.909
A2 Planning, partial planning and controlling 140 594 0.849
A3 Logistics and supply chain management 140 577 0.824
A4 Labour availability 140 566 0.809
A5 Budget and cash flow having 140 563 0.804
A6 Improper construction method 140 531 0.759
A7 Frequent changes in design and variations 140 523 0.747
A8 skilled workforce 140 519 0.741
A9 Insufficient information 140 517 0.739
A10 People skills and quality of work 140 517 0.739
A11 Tools and Machinery 140 516 0.737
A12 Supervision delays, supervision competency 140 516 0.737
A13 Sequence of activities, out of sequence work 140 515 0.736
A14 Safety constraints 140 510 0.729
A15 Equipment breakdown 140 492 0.703
A16 Schedules and frequent changes in schedules 140 490 0.700
A17 Working conditions 140 484 0.691
A18 Alternate construction technique 140 483 0.690
A19 Communication and Inspection delays 140 455 0.650
A20 Work overload and rework 140 449 0.641
Rii Table II
Factor Analysis-components extracted
%
Factor
Reason ID Reason description/factor name variance
loading
explained
Factor 1 Poor site coordination 15.64%
A24 Scope of activities and distribution of resources 0.878
A20 Work overload and rework 0.867
A13 Sequence of activities 0.793
A19 Communication and inspection delays 0.704
Factor 2 Lack of Competency 12.99%
A10 People skills and quality 0.829
A8 skilled workforce 0.816
A7 Frequent changes in job location 0.622
A22 Technology and construction training 0.589
A6 Improper construction method 0.535
Factor 3 Fragmented Supply chain
A3 Logistics and supply chain 0.801 11.53%
A11 Tools and machinery 0.727
A9 Insufficient info and missing information 0.691
Alternate construction technique and advanced construction
A18 0.603
technique
Factor 4 Lack of commitment 11.18%
A4 Labour availability and absenteeism 0.863
A14 Safety constraints and accidents 0.782
A23 Frequent changes in design and variations 0.616
Factor 5 Improper Planning 9.22%
A2 Planning, partial planning and controlling 0.801
A21 Overcrowding a job location 0.723
Factor 6 Lack of commercial management
A5 Budget and cash flow 0.802 7.22%
A16 Schedules and frequent changes in schedules 0.540
A1 Decision making and delay in approvals 0.498
Factor 7 Inefficient site management 6.81%
A12 Supervision delays and supervision competency 0.698
A15 Equipment breakdown 0.631
A17 Working condition and working in confined space 0.561
Total variance explained 74.58%
With a specific end goal to assess the ampleness of the review information for considering
examination, Kaiser– Meyer–Olkin (KMO) test and Bartlett's trial of sphericity (Field, 2005)
were led. The estimation of KMO speaks to the proportion of the squared connection
between's factors to the squared incomplete relationship between's factors. It shifts from 0 to
1. An esteem near 1 demonstrates that the example of connections is moderately reduced and
henceforth consider examination should give particular and solid outcomes (Field, 2005).
A score nearer to 1 express that the correlations pattern is relatively dense and therefore
factor analysis should give definite and strong outcomes (Field, 2005). A score of more than
0.5 has been advised (Kaiser, 1974). In this research of the 24 attributes, the KMO value is
0.59 which is deemed good for this study.
Components extracted: Principal component analysis is used to lower numerous correlated
attributes into much fewer underlying factors. As discussed 24 attributes are used in this
analysis. And they formed seven factors or principal components were evolved. Shown in the
table below, these seven factors explained 74.58% of total variance and the rotation technique
used for the study is a Varimax rotation for better interpretation of results on the orthogonal
factors.
Pearson relationship utilising SPSS we can evaluate the degree of connection among different
factors. The estimations of Pearson connection are classified in Table below.We find that
Pearson vicariate relationships are more noteworthy than 0.4 in a large portion of the cases
among various qualities in every one of the elements. From these outcomes, we can guarantee
that elements framed in calculate examination contain properties which are connected. For
dependability investigation, which is required to guarantee the build of the model after some
time (i.e. consistency of measured traits and scale), Cronbach's alpha test was performed on
whole information and in addition properties in each figure which are demonstrated Table 6.
The estimation of Cα could be somewhere around 0 to 1, where a higher esteem indicates the
more prominent inner consistency and the other way around. The estimation of Cα is
expanded by a substantial number of factors, so there is no set elucidation with respect to
what is a satisfactory breaking point (Zhang, 2005). In any case, a general guideline applies to
most circumstances with the accompanying extents: Cα>0.9 indicates superb, 0.9>Cα>0.8 as
great, 0.8>Cα>0.7 as satisfactory, 0.7>Cα>0.6 as sketchy, 0.6>Cα>0.5 as poor and 0.5>Cα
means unsatisfactory (Doloi, 2009). The estimation of Cα for all properties computed is 0813
which is thought to be great.
Table III
Table IV
Correlation matrix for the attributes.
A24 A20 A13 A19 A10 A8 A7 A22 A6
A24 1 A10 1
A20 0.76 1 A8 0.67 1
A13 0.65 0.61 1 A7 0.43 0.36 1
A19 0.53 0.55 0.52 1 A22 0.38 0.56 0.48 1
Factor 1 A6 0.41 0.47 0.44 0.39 1
Factor 2
A3 A11 A9 A18 A4 A14 A23
A3 1 A4 1
A11 0.54 1 A14 0.61 1
A9 0.46 0.48 1 A23 0.46 0.55 1
A18 0.52 0.41 0.39 1 Factor 4
Factor 3
A21 A2 A5 A16 A16 A12 A17 A15
A21 1 A5 1 A12 1
A2 0.41 1 A16 0.55 1 A17 0.38 1
Factor 5 A16 0.39 0.41 1 A15 0.42 0.57 1
Factor 6 Factor 7
4. CONCLUSION
The contribution of Indian construction industry to GDP is about 8 % on an average in last 5
years (Planning Commission of India 12th five-year plan, 2015). Indian construction industry
provides employment approx. 41 million persons. It encounters issues such as low
productivity, delays in completion of projects and lack of professional practices in the
industry (Doloi, Sawhney, Iyer, & Rentala, 2012). The construction industry is an important
activity within most economies and the GDP get influenced by Construction Productivity and
the GDP also influences the Construction industry (Cox et al., 1998, cited in (Madi, 2003).
This study , reports on research that experienced respondents across a range of construction
sector in India to rate 24 primary attributes with the potential to affect construction
productivity, has affirmed that there have been restricted development profitability issues in
the Indian development condition and analyzed central point influencing development
efficiency in this condition, especially concerning execution of construction. These elements
were positioned concurring by their relative importance index (Rii) as recognised by the
respondents who were asked to share their views. This particular survey indicated that there
were the five attributes having had the most effect on construction productivity are decision
making & delay in approval, planning, logistics & supply chain, labour availability and
budget & cash flow management. These factors having relative importance indices (Rii) of
0.903, 0.853, 0.818, 0.817 and 0.8 respectively. As for noting the exploration question for this
paper, it can be reasoned that in India, the example of respondents recognised generally few
elements that emphatically influenced development profitability in their land region, but did
identify 11 attributes with at least a moderate effect on construction productivity in their land
region. Nonetheless, activities like expanded coordinated effort between the gatherings to an
agreement, (for example, with relationship contracting), quality workshops, and administrator
preparing and enhanced correspondence between the gatherings to an agreement can possibly
lessen the effect of these factors on construction productivity.
Secondly this research reveals that one of the most critical factors of construction
productivity is the poor site coordination. This finding indeed a clear contrast to the findings
of (Rami Huges, 2014) that poor site condition and poor site communication are two of the
top ten attributes impacts construction productivity. Poor site coordination is one of the main
cause of delay in construction projects in India, which directly impacting construction
productivity. Delays and productivity are interrelated concepts and having mutual impacts
over each other (Doloi, Sawhney, Iyer, & Rentala, 2012). Lack of competency is certainly
another key factor affecting the productivity of construction projects in India. Lack of
commitment is one of the critical factors of construction productivity, and this finding also
suggested by (Doloi, Sawhney, Iyer, & Rentala, 2012).There were a number of studies were
done all over the world but still, the concept of productivity is not been studied in detail in our
Indian context and only a few research papers were published on Indian industry. So a sincere
attempt to resolve the issue of low productivity of construction projects in India is required.
5 LIMITATIONS
The quality of this paper is its exhaustive examination and positioning of traits influencing
construction profitability in an advanced Indian setting, in which the statistic, geographic,
designing and financial condition might be not quite the same as that in which a few different
investigations have been led. It's significant shortcoming is that the discoveries require extra
inside and out research and approval. Specifically, the central point of revamping, director
skill, and fragmented drawings require theadvance top to bottom research. The other essential
components influencing construction efficiency ought to likewise be examined in more
profundity. Keeping in mind the end goal to build up this exploration further, a focus
examination of the vital discoveries of the review with the professionals is already in
progress. This study is required to both approve the discoveries of this exploration and prompt
the improvement of potential systems to limit the impact of those components that have been
evaluated by this study to have the best potential impact on construction productivity. An
organised system for enhancing construction profitability in the Indian setting is expected to
come about because of this further examination.
REFERENCES
[1] CIDC. (2015, March 15). cidcdatabase. Retrieved from Construction Industry
Development Council: http://www.cidcdatabase.com/index.asp
[2] CIDC. (2016, 09 18). New report. Retrieved from Construction Industry Development
Council: www.cidc.in/new/
[3] Doloi, H., Sawhney, A., Iyer, K. C., & Rentala, S. (2012). Analysing Factors affecting
delays in Indian Construction projects. International journal of Project Management, 479-
489.
[4] Dozzi, S. P., Eng., P., & Abourizk, S. (1993). Construction Productivity. Ottawa: Natioanl
Research Council Canada.
[5] Enshassi, A., Mohammad, S., Mustafa, Z. a., & Mayer, P. A. (2010). factors affecting
labour productivity in building projects in the Gaza strip. Journal of Civil Engineering and
management, 245-254.
[6] hazlehurst, M. S.-w. (2008). Trends of skills and productivity in UK construction Industry.
Emerald insight, 372-382.
[7] Homyun jang, K. K. (2011). Labour productivity model for reinforced concrete
construction projects. Emerald Insight, 92-113.
[8] Iyer, K. C., & Jha, K. N. (2005). Factors Affecting cost performance: Evidence from
Indian Construction Projects. International Journal of Project Management, 283-295.
[9] Khan, O. M. (2012). Significance ranking of parameters impacting construction labour
productivity. Emerald insight, 272-296.