Factors influencing the performance of building contractors in infrastructural development in Nakuru County, Kenya

Abstract

The Construction industry has been the bedrock of social and economic development in our country for the past 15 years. Construction has spurred as well as facilitated economic growth through the development of infrastructure projects countrywide (The NCA Quarterly, 2017). According to the Kenya National Bureau of Statistics, the construction sector expanding by 8.4% in the first quarter of January to April 2017 and by 10.2% in 2016 during the same period. The Kenya 2017/2018 National Budget Statement announced that the government would invest KSh 640.8 billion in infrastructure development, up from KSh415.7 billion in the 2016/2017 fiscal year. According to National Construction Authority, the Construction Industry is one of the main engines of performance in any economy and Building contractor’s performance in infrastructural projects is one of the important economic activities that contribute towards the economic growth of the nation. The main objective of the study was to establish factors that influence the performance of building contractors in infrastructural development. The study tries to establish how access to credit and loan facilities influence on the performance of building contractors in infrastructural development in Nakuru County; how the level of education and training influence in performance of building contractors in infrastructural development; how timely payments by clients and input from technical team members influence on performance of building contractors in infrastructural development; and how community participation influence in performance of building contractors in infrastructural development. A sample of 219 participants was selected from a population of 511 registered building contractors in Nakuru County. From the 219 questionnaires administered to building contractors, 157 were properly filled and returned. This represented a 71.7% response rate, which is considered satisfactory to make conclusions for the study. Additional data from the project technical management team was collected from the Director Public works, County Architect, County Quantity Surveyor, County Structural Engineer, County Electrical Engineer, County Mechanical Engineer, County Civil Engineer and from the 11 sub county works officers from public works. The sample of 219 building contractors was selected using a stratified random sampling method in order to be representative of the whole population of building contractors. A questionnaire was used to collect data. Data was analyzed by using the Statistical Package for Social Sciences (SPSS). From the study, it was concluded that building contractors, face a lot of challenges in accessing finances for their business both as running capital and for expansion of the businesses. This is because of many factors which make their businesses less attractive and risky in terms of lending. It is expected that improved access to loan and credit facilities to building contractors can lead to higher performance in infrastructural development. The study recommended that there should be regular training so as to provide building contractors with technical and analytical skills to improve their ability to manage building projects and also manage their building construction companies. It was concluded that higher performance in infrastructural development can be achieved through increased training programs. The study also established that input from client and technical team affect building contractors’ performance in infrastructural development. Delayed payments from clients on construction projects are considered to be a factor of significant concern which can cause financial problems to building contractors. It is expected that improved relationship between building contractors and client plus the technical team will lead to higher performance of building contractors in infrastructural development. From the study, it was concluded that community participation at all stages of project is important in achieving the development priorities in the context of local objectives since local people are aware of challenges that affect them. This should include all efforts to involve the local population in defining their own problems, diagnosing the situations that give rise to such problems, setting priorities for their resolution, and identifying and formulating project interventions that may help solve some of those problems. The study recommended for increased level of community participation so as to achieve higher performance of building contractors in infrastructural development.