Progress Notes

This article discusses the challenges of construction industries in developing countries, addressing main issues of: construction industry development, globalisation, culture, and the environment. Key challenges and possible solutions of these issues are analysed and presented.

Construction Industry Development

It is important to administer continuous improvement in the construction industry. Many agencies have been formed for this cause. An effective method used to foster improvement is pooling together resources and coordinating efforts, as seen by many recent construction industry development agencies in South Africa. By involving the industry’s active participation, greater potentials for sustainability and chances of success arise because main stakeholders and beneficiaries are directly included in planning and implementation processes.

Evidence shows the formation of an agency does not guarantee success, therefore many long term plans have been formed to aid the agencies. These plans help create visions of the construction industry of the country, which will help create its desired outcomes and recommendations to achieve the industry’s targets.

Globalisation

The main problem here lies in the limited capabilities of the country’s industry to be able to undertake certain/many construction projects, therefore leading to importation of construction activities. The dominant position of international contractors in developing industries affects local contractors and heavy competition.

But importation of construction activities is also used by industrialised countries and that many exporting construction companies are from developing countries. According to ENR contractors many Asian countries often meet top 300s.

Studies regarding the costs and benefits to national construction industry, benefacting foreign and local contractors by maximising benefits, actions which the industry could take and intra-industry diffusion of technologies and knowledge should be researched. There is also the question of how developing countries will play their roles in the future, as well as cross border strategic alliances from developing countries which would undoubtedly be beneficial.

Culture

Most project procurement and administrative arrangements in use have been inherited from Western countries which have different cultures and backgrounds. Poor performance in Southern Africa concludes the importance to consider and incorporate cultural traits in the procurement systems of construction projects from the developed country. Studies confirm that the construction industry must differ in every country, given the uniqueness culture and it’s influence on society. Thus, it is necessary for effort to be made to devise practices, procedures and relationships which are suited to the culture of each country.

It is necessary to reconsider the arrangements and procedures of the construction industries of developing countries, making sure they reflect the cultural attributes and values of the country to be more effective.

The Environment

It is common belief that countries should endeavour to protect the environment when a high level of socio-economic development has been achieved. However, the preservation of the environment should be of greater interest to developing countries since they face severe environment-related problems. Urbanization and associated problems place pressure on existing infrastructures. Another issue is the volume of physical resources which will be required to develop and to raise the standard of living of their peoples.

The environmental problems exist side-by-side with lack of managerial experience, financial resources, and legal and administrative systems necessary to deal with the issue through public and formal education, formulation and enforcement of “command and control” measures, as well as the devising and implementation of “economic instruments”.

To ensure that environmental impact is lowered, their construction industries can develop government action, markets forces, institutional initiatives and the operational environment.

Conclusion

Industry development should benefit from globalisation and actively seek to limit, the negative environmental impact of their activities, and effectively apply the local culture to achieve success on their projects.

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