Evaluation of critical success factors for construction businesses in Uganda.

Abstract

Achieving success is a highly critical issue for construction businesses to survive not only in a competitive environment but also in a dynamic industry like construction. The construction industry being dynamic, it is curious whether previous research findings on critical success factors for construction businesses have become obsolete and unable to reflect on the current situation. Through literature, the study of critical success factors are means to improve efficiency and effectiveness. The traditional approach to success in the construction industry places great emphasis on project execution and minimizes emphasis on management practices and organizational stability. In contrast, other industries emphasize management practices at a corporate level as an essential element. Due to a shift in economic and technological advancements, a shift in emphasis to corporate success should be examined for construction businesses to compete in the ever changing market place. The main objective of this study was to evaluate the critical success factors for construction businesses in Uganda and based on literature review, a list of preliminary success factors and sub factors was proposed. A questionnaire survey was carried out to collect primary data as regard to these factors. Data was collected from senior staff in various contracting companies in Uganda and a total of 45 valid responses was analyzed using relative importance index. The findings show six critical success factors for construction businesses that is to say financial factors, product quality factors, human factors, management factors, technological factors and environmental factors from the most important to the least factor. In addition, 25 sub factors were identified. These critical success factors can be used as a basic guideline for success of a construction business and also as a basis for top management to make strategic decisions and enabling a business to succeed.