POSITION IN THE REPORT

Chapter 1 Chapter 2
Introduction The Zimbabwean Construction industry and
contractor performance
Chapter 3 Chapter 4
The impact of inflation on performance Research Methodology
Chapter 5 Chapter 6
Data presentation and analysis Summary, Conclusions and recommendations.

Chapter 1

INTRODUCTION
1.0 INTRODUCTION

The intention of this chapter is to set out the research context of this study and define the aim

and objectives of the research study. A brief discussion of the scope of the research and

research methodology is also presented followed by an outline of the way the report is

structured.

1.1 BACKGROUND TO THE STUDY

The survival of any business is dependent on customer satisfaction as well as customer

retention. Sir John Egan in Rethinking Construction (1998) observed that clients want projects

to be delivered on time, within budget, free from defects, efficiently, right first time, safely and by

profitable companies.

Contractors remain poor performers due to a plethora of reasons. The risks contractors grapple

with to deliver a satisfactory project are numerous. Contractors will have to contend with project

physical factors, adversarial relationships, unfriendly contractual terms, incomplete designs and

unsympathetic clients and their advisors. The economic environment creates additional risks

which the contractor must contain and overcome in order to meet the clients’ expectations.

It has been generally argued that most of the above factors result from the procurement route

chosen by the client from the onset. Traditionally, contractors are brought in through competitive

tendering when all designs and details are completed without their input and yet are expected to

deliver the project as required. Thus, it is against this background that this researcher decided

to investigate the topic as indicated above.

1.2 AIMS AND OBJECTIVES

The principal aim of this research study is to determine the extent to which hyper-inflation

affects contractor performance in terms of time, cost, quality and sustainable development of

contractors. To achieve this, the study would seek to:

1 Critically review literature on contractor performance to develop an understanding of the

factors influencing contractor performance and the role of hyperinflation;

2 Identify those factors that affect construction business in Zimbabwe

3 Examine the current procurement routes and contractual arrangements in Zimbabwe

and their bearing on contractor performance.

DELIMITATION (SCOPE )OF THE STUDY

In pursuing this research study the focus of attention is on the contractor and the construction

project will be the unit of analysis. Thus, the research covers both private and public sector

work, civil engineering and building projects, as well as the different types of facilities (e.g.

commercial or educational) with particular reference to the case study Kuchi Construction (Pvt)

Ltd. Kuchi Construction will be used as the unit of analysis as a case study. In addition, industry

data will be collected from CIFOZ and ZBCA as well as the Ministry of Public Construction and

National Housing. The study focuses on construction projects within Zimbabwe to ensure that

potential variations due to the national context are controlled for and kept uniform as much as

possible, and to ensure that findings reflect the general trend across Zimbabwe.

1.4 METHODOLOGY

The research methodology for this study is, to a large extent, quantitative (positivist), which

implies that the research process is largely deductive. Within this general positivist framework,

elements of the qualitative approach are also incorporated to provide alternative insight into the
phenomenon of contractor performance. Research methods applied include a literature survey,

case study with the primary data collected through interviews and questionnaire surveys. High

level interviews will be conducted with the respective industry representatives.

The study commences with an in-depth literature review focusing on the areas of contractor

performance and an in-depth study of the case study organisation to draw out those

performance factors which are being affected by hyperinflation.

1.5 STRUCTURE OF RESEARCH REPORT

The research report will consist of five (5) chapters, organised as shown in Figure 1.1.

Chapter 1 will outline the context within which the research is undertaken, and sets out the aim

and objectives. The scope and the research methodology applied will be also briefly outlined.

Chapter 2 presents a review of the literature focusing on the structure and profile of the

Zimbabwean construction industry, the performance of the Zimbabwean construction industry

and the factors influencing contractor performance. In particular, this chapter seeks to highlight

the performance deficit that still exists in the Zimbabwean construction industry, and the hyper-

inflationary environment in which the construction industry exists.

Chapter 3 - this chapter seeks to draw attention to the lack of empirical research on

hyperinflation and its impact on project performance. The chapter discusses the concepts of

hyper-inflation, the impact of hyper-inflation in determining project outcomes, and the theories

underpinning its conceptualisation and investigation.

In Chapter 4, the research methodology adopted for undertaking this research is presented. In

this case quantitative research methodologies, with aspects of the qualitative approach

incorporated to support and improve the research design. Arguments are presented justifying

this choice in particular the case study approach and the specific research methods applied to

collect data. The data collection process is detailed in this chapter.

Chapter 5 presents researched data and discussion on contractor performance based on the

information gleaned from the case study company (Kuchi Construction) and the assessment of

the impact of hyper-inflation on performance. In order to evaluate the impact of hyper-inflation

on project performance outcomes, it is necessary to assess the performance of construction

projects in Zimbabwe, where performance is the degree to which the project objectives are

achieved. The performance of the construction projects as assessed on the basis of the various

outcomes pursued by stakeholders including inter alia cost, time, quality, health and safety,

disputes, and productivity outcomes.

Chapter six concludes the research report with a focus on the research conclusions and

recommendations.

Chapter 1
Introduction

Chapter 2 Chapter 3
The Zimbabwean Construction The impact of inflation on
industry and contractor performance
performance

Chapter 4
Research Methodology

Chapter 5
Data presentation and
analysis
 Chapter 6
Conclusions

Figure 1.1 Organisation of the research