Environment Factor Affecting Construction Industry

Construction industry has complexity in its nature because it contains large number of parties as clients, contractors, consultants, stakeholders, shareholders, regulators and others. Construction projects in the Gaza Strip suffer from many problems and complex issues in performance such as cost, time and safety. The aim of this thesis is to identify and evaluate the main factors affecting the performance of construction projects in the Gaza strip. Literature review about performance was reviewed to identify the factors affecting the performance of construction projects.

In addition, other local factors have been added as recommended by local experts. Pilot study of the questionnaire was achieved by a scouting sample, which consisted of 30 questionnaires. A questionnaire survey was conducted and 63 factors were identified, categorized into 10 groups, evaluated and ranked from owners, consultants and constructors perspectives. 120 questionnaires were distributed as follows: 25 to owners, 35 to consultants and 60 to contractors. 88 questionnaires were received (73%) as follows: 17 (70%) from owners, 25 (72%) from consultants and 46 (77%) from contractors as respondents.

The most important factors agreed by the owners, consultants and contractors were: average delay because of closures and materials shortage; availability of resources as planned through project duration; leadership skills for project manager; escalation of material prices; availability of personals with high experience and qualification; and quality of equipments and raw materials in project. The degree of agreement between parties regarding the ranking of factors was determined according to Kendall’s Coefficient of Concordance.

For Cost, Time, Quality, Productivity, Client Satisfaction, People, Innovation and learning factors, and all groups together, there is a significant degree of agreement among the owners, consultants and contractors. On the other hand, for Regular and community satisfaction, Health and Safety, and Environment factors, there is disagreement of agreement among the owners, consultants and contractors. The practices concerning with the Key Performance Indicators (KPIs) such as time, cost, project owner satisfaction and safety checklists were analyzed in order to know

the main practical problems of projects performance in the Gaza Strip and then to formulate recommendations to improve performance of construction projects in the Gaza Strip. It was concluded that projects were delayed and the actual cost of projects was more than the estimated cost because of Gaza strip political conditions. Overall project safety factors had been moderately implemented in construction organizations. It is recommended for construction organizations to have a clear mission and vision to formulate, implement and evaluate their performance.

A structured methodology and technique should be identified to overcome the effect of local political and economic situations on the performance of construction projects in the Gaza Strip. In addition, it is recommended to develop human resources in the construction industry through proper and continuous training programs about construction projects performance. It is necessary for construction organizations in Gaza Strip to evaluate both of market share and liquidity before implementation of any construction project because of difficult economic situation. All of that will assist organizations to perform projects successfully and strongly.