Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects

Solomon Esaiyas; Girmay Kahssay

doi:doi:10.11648/j.ajce.20200804.12

| Peer-Reviewed |

Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects

Solomon Esaiyas, Girmay Kahssay

Received: 15 July 2020 Accepted: 30 July 2020 Published: 14 September 2020

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.

DOI	10.11648/j.ajce.20200804.12
Published in	American Journal of Civil Engineering (Volume 8, Issue 4, July 2020)
Page(s)	87-96
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Local Contractors, Chinese Contractors, Subcontracting, International Building Projects, Challenges

References

[1]	A. Ngowi, Ed."Challenges facing construction industries in developing countries," Building Research & Information, vol. 30, no. 3, pp. 149-151, 2002.
[2]	J. Fischgrund and V. Omachonu, "Quality in Construction: Identifying the Gaps," International Journal of Construction Engineering and Management, vol. 3, no. 2, pp. 65-73, 2014.
[3]	ENA, "Ethiopia: Construction Industry Crucial for Successful Transformation of Economy - Construction Minister," 2018.
[4]	Z. T. Zewdu, "Construction Projects Delay and Their Antidotes: The Case of Ethiopian Construction Sector", International Journal of Business and Economics Research, vol. 5, no. 5, pp. 113-122, 2016.
[5]	A. T. H/Gebriel, "Model Development for improving the Performance of Projects: A Case Study on Ethiopian Roads Authority (ERA)," 2004.
[6]	A. Getahun, "Comparative analysis on the factors affecting performance of local and international contractors in road projects administered by Ethiopian roads authority," Addis Ababa, 2016.
[7]	EEA, "The Current State of the Construction Industry: Report on the Ethiopian Economy," vol. VI, 2008.
[8]	A. Y. Anshebo, "Performance Assessment of Public Building Construction Projects in Addis Ababa", Addis Ababa, 2017.
[9]	K. Girmay, "Claims in International Projects in Ethiopia", Addis Ababa, 2003.
[10]	A. Dinku, "Insurance Requirements and Practices of Ethiopia’s Construction Sector," 2000.
[11]	M. M. Gebre, "The Role of Financial Institutions for The Ethiopia’s Construction Industry," 2006.
[12]	W. Jekale, "Development of the Construction Industry in Ethiopia," EACE Bulletin, vol. 4, no. 1, pp. 9-16, 2005.
[13]	W. Jekale, "Performance for public construction projects in developing countries: Federal road and Educational Building projects in Ethiopia," Norway, 2004.
[14]	B. Abate, "Proposed Affirmative Action for Building the Capabilities of Domestic Contractors", 2002.
[15]	B. Berhanu, "Comparative Financial Performance of Domestic and Foreign Construction Companies in Ethiopia", Addis Ababa, 2009.
[16]	F. Yik, J. Lai, K. T. Chan and E. Yiu, "Best Practices in Managing Specialist Subcontracting Performance: Final Report", Construction Industry Institute, 2006.
[17]	X.-H. Jin, G. Zhang, B. Xia and Y. Feng, "Relationship between Head Contractors and Subcontractors in the Construction Industry: A Critical Review," in Seventh International Conference on Construction in the 21st Century (CITC-VII) “Challenges in Innovation, Integration and Collaboration in Construction & Engineering”, Bangkok, Thailand, 2013.
[18]	EIM, "EU SMEs and subcontracting: Final report," Business & Policy Research, 2009.
[19]	J. Mbachu, "Conceptual framework for the assessment of subcontractors' eligibility and performance in the construction industry," Construction Management and Economics, vol. 26, no. 5, pp. 471-484, 2008.
[20]	H. A. Hailu, "Determinants of Subcontracting Performance in Road Construction Projects: Case of Addis Ababa Road Projects," International Journal of Scientific Engineering and Research, vol. 6, no. 7, pp. 1-7, 2018.
[21]	D. Gunderson and W. Rick, "General Contractors Perceptions of Subcontractors: Attributes and Competencies: A Pacific Northwest Study," in 48th ASC Annual International Conference Proceedings, 2013.
[22]	S. O. Olatunji, D. O. Aghimien, A. E. Oke and T. M. Akinpelu, "Assessment of the Use of Subcontracting Options for Construction Project Delivery," Civil and Environmental Research, vol. 8, no. 5, 2016.
[23]	A. H. Memon, I. A. Rahman and A. A. A. Azis, "Preliminary Study on Causative Factors Leading to Construction Cost Overrun.," International Journal of Sustainable Construction Engineering & Technology, vol. 2, no. 1, 2011.
[24]	CIDB, "Subcontracting in The South African Construction Industry; Opportunities for Development," 2013.
[25]	R. M. Choudhry, J. W. Hinze, M.ASCE, M. Arshad and H. F. Gabriel, "Subcontracting Practices in the Construction Industry of Pakistan," Journal of Construction Engineering and Management, 2012.
[26]	L. Yoke-Lian, S. Hassim, R. Muniandy and L. Teik-Hua, "Review of Subcontracting Practice in Construction Industry," IACSIT International Journal of Engineering and Technology, vol. 4, no. 4, pp. 442-445, 2012.
[27]	J. M. Assbeihat, "Factors affecting the performance of Electromechanical Subcontractors in Construction Projects (Jordan case)," European International Journal of Science and Technology, vol. 5, no. 2, pp. 32-40, 2016.
[28]	M. Usman, "Project Management Competence and Complexity in Projects: Impact Study on Performance of Mega Engineering Projects in Pakistan," 2018.
[29]	W. Kifle, "Factors Affecting Time Performance of Local Road Contractors on Federal Road Construction Projects," Addis Ababa, 2013.
[30]	R. Sweis, L. Bisharat, S. Bisharat and G. Sweis, "Factors Affecting Contractor Performance on Public Construction Projects," Life Science Journal, vol. 11, no. 4s, pp. 28-39, 2014.
[31]	A. Rahman, "Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia," Journal of Applied Sciences, vol. 13, no. 2, pp. 286-293, 2013.
[32]	O. Ameh and E. Osegbo, "Study of Relationship between Time Overrun and Productivity on Construction Sites," International Journal of Construction Supply Chain management, vol. 67, no. 1, 2011.
[33]	S. B. Lagiman, "Improvement of Relationship between Main Contractor and Subcontractor for Successful Construction Project Implementation," 2017.

Cite This Article

Plain Text BibTeX RIS

APA Style

Solomon Esaiyas, Girmay Kahssay. (2020). Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. American Journal of Civil Engineering, 8(4), 87-96. https://doi.org/10.11648/j.ajce.20200804.12

Copy | Download

ACS Style

Solomon Esaiyas; Girmay Kahssay. Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. Am. J. Civ. Eng. 2020, 8(4), 87-96. doi: 10.11648/j.ajce.20200804.12

Copy | Download

AMA Style

Solomon Esaiyas, Girmay Kahssay. Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. Am J Civ Eng. 2020;8(4):87-96. doi: 10.11648/j.ajce.20200804.12

Copy | Download

@article{10.11648/j.ajce.20200804.12,
  author = {Solomon Esaiyas and Girmay Kahssay},
  title = {Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects},
  journal = {American Journal of Civil Engineering},
  volume = {8},
  number = {4},
  pages = {87-96},
  doi = {10.11648/j.ajce.20200804.12},
  url = {https://doi.org/10.11648/j.ajce.20200804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20200804.12},
  abstract = {Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects
AU  - Solomon Esaiyas
AU  - Girmay Kahssay
Y1  - 2020/09/14
PY  - 2020
N1  - https://doi.org/10.11648/j.ajce.20200804.12
DO  - 10.11648/j.ajce.20200804.12
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 87
EP  - 96
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20200804.12
AB  - Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.
VL  - 8
IS  - 4
ER  -

Copy | Download

Author Information

Solomon Esaiyas

Civil Engineering, Addis Ababa Science and Technology University, Addis Ababa, Ethiopia
Girmay Kahssay

Civil Engineering, Addis Ababa University, Addis Ababa, Ethiopia

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Solomon Esaiyas, Girmay Kahssay. (2020). Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. American Journal of Civil Engineering, 8(4), 87-96. https://doi.org/10.11648/j.ajce.20200804.12

Copy | Download

ACS Style

Solomon Esaiyas; Girmay Kahssay. Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. Am. J. Civ. Eng. 2020, 8(4), 87-96. doi: 10.11648/j.ajce.20200804.12

Copy | Download

AMA Style

Solomon Esaiyas, Girmay Kahssay. Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects. Am J Civ Eng. 2020;8(4):87-96. doi: 10.11648/j.ajce.20200804.12

Copy | Download

@article{10.11648/j.ajce.20200804.12,
  author = {Solomon Esaiyas and Girmay Kahssay},
  title = {Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects},
  journal = {American Journal of Civil Engineering},
  volume = {8},
  number = {4},
  pages = {87-96},
  doi = {10.11648/j.ajce.20200804.12},
  url = {https://doi.org/10.11648/j.ajce.20200804.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20200804.12},
  abstract = {Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - Challenges Facing Local Contractors Working with Chinese Contractors in Addis Ababa Building Projects
AU  - Solomon Esaiyas
AU  - Girmay Kahssay
Y1  - 2020/09/14
PY  - 2020
N1  - https://doi.org/10.11648/j.ajce.20200804.12
DO  - 10.11648/j.ajce.20200804.12
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 87
EP  - 96
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20200804.12
AB  - Building construction projects particularly represents one of the largest sectors of the construction industry. Currently, the rise in construction of high rising buildings are observed in Addis Ababa, the capital city of Ethiopia. The number and size of building construction projects that are being constructed in the city are increasing through time and most of these projects were being carried out by Chinese contractors. Local contractors are also involved in those projects via a subcontracting strategy. However, it is not easy for local contractors to succeed by working with their foreign counterparts who have massive international experience and capacity. The aim of this study was assessing and identifying the challenging factors affecting local contractors’ performance in Chinese building projects in Addis Ababa. In order to achieve the objectives of this study, both quantitative and qualitative research approach were used with primary and secondary source of data. This study employed three types of data collection techniques such as a questionnaire surveys, interviews and observations. The target population for this study are local contractors and consultants involved in building projects that are carried out by Chinese contractors. In this study the researcher used Census/Parametric method of survey. That mean all target population of this study are included in this investigation, based on the consent and willingness of the participants. The Relative Importance Index (RII) was used as an instrument for analyzing data collected through questionnaire in tabular form by using Likert’s scale of five ordinal measures. Based on the analysis, it was found that the most challenging factors affecting local contractors’ performance in Chinese building projects were financial constraints, information exchange problems, cultural differences, unfamiliarity with Chinese work methodology and project complexity with a RII value of 0.84, 0.81, 0.77, 0.73 and 0.71 respectively. This study also identified and discussed the major cause and impact of those challenges and proposed measures to minimize their effect on the local performance in the upcoming projects through interviews from respondents and analyzed by using content analysis.
VL  - 8
IS  - 4
ER  -

Copy | Download