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SUMMARY, DISCUSSION OF FINDINGS, CONCLUSIONS AND
This chapter presents the summary of the study findings, discussion of findings, conclusions that have been drawn from the research findings. Recommendations of the study were generated from conclusions of the study which finally ensured into the suggestions for further research
5.1 Discussion of the findings
This section presents the discussion of the study inline to the study objectives.
5.1.1 Contractors’ financial capability and Project Performance
The correlation coefficient of 0.469 suggests a moderate positive linear relationship between financial capacity and project performance. As financial capacity increases, project performance tends to increase as well. The significance level of 0.004 indicates that there is a 0.4% probability of observing such a strong correlation by random chance. The double asterisks (**) denote that the correlation is significant at the 0.01 level. This results further indicates a relationship between financial capacity and project performance indicating the contractors with good financial capacity tend to perform well when given the contracts. This view was also observed in regression results which indicated that the P-value 0.004 <0.05 shows that there is a statistically significant relationship between Financial capacity and project performance. This findings also further shows that the alternative hypothesis is accepted concluding that; there is a significant relationship between contractors’ financial capability and Project Performance Among UPE Schools in Mbarara District. This finding also correlated with the Agency theory by Eisenhardt (1989), which it proposes that, a contract between the government and a contractor reflects a principal-agent relationship. The principal (government) contracts with the agent (contractor) to perform some level of effort, such as construction of schools on behalf of government which is eminent in this current study. In this relationship, the government’s objectives include obtaining the product or service at the right quality, right quantity, right source, right time, and at the right price, it further notes for the government the principal to achieve better project performance there is need to be cognizant of financial capability of the organization.
The findings in the study shows that Financial Record was imperative in analyzing the financial capacity of the contractor in enhancing good performance of the contractor, this view was also in line with Ghalayini & Noble, (2011) who states that the contractors’ financial capacity is the resource he requires to smooth the progress of implementation of the construction work on site. It is made up of money at hand, bank credit, overdraft, credit purchases, and work-in-progress and invoiced amount. Financial capacity also includes resources needed to grease the daily business of the construction firm.
The study findings further show that the Experience in the Construction Industry is imperative in enhancing the performance of the contractor, this study results was also in line with Cooper, and Aouad, (2011) observed that it requires a determined positive effort by the contractor as mismanagement can weaken productivity and profit level. To ensure that the level of financial capacity is maintained and that there is sufficient provision of funds to finance current assets to facilitate projects to be project completion within cost and time, there is need of establishing the optimum level of financial capacity needs of a project. Further there is need of continuous checking and monitoring the quantum of individual parts that comprise the financial capacity to ensure that the requirements are not exceeded.
The findings in the study further shows that contractor possesses extensive experience, Positive, as experience is crucial for successful project execution, this view was also shared by Obelle, (2012), Who asserted that that inadequate planning, delays and government approvals and regulations delayed construction of road projects and in order to manipulate the challenges a contractor needed to have some experiences to navigate the challenges.
In the study it was also further revealed that Technical Team Competence of the contractor is imperative in the enhancing the performance of the project, has a well-trained technical team, which is crucial; in the performance of the organization, this view was also inline to the assertions by Pidd, (2012) who identified the most significant causal factors for performance of projects as inadequate and inconsistent release of funds by clients, poor financial management by contractors or lack of capacity by contractors all these factors that influence construction quality implementation at the execution phase in industry.
The study results further indicates that Recognizes the importance of a competent technical team for project delivery, Quality Management System, therefore the quality management systems is imperative in project performance this view was also further shared by Kerzner (2015), project success encompasses completion of project tasks within the allocated time period, within the budgeted cost, at the proper performance or specification level accepted by customer, with minimum or mutually agreed upon scope changes, without disturbing the main work flow of the organization, and without changing the corporate culture. Other researchers suggested that in addition to the measurement of time, budget, quality and customer satisfaction, the overall stakeholders’ satisfaction should be considered for project success
In construction projects in Zambia, a study by. In water projects in found that client related factors such as financial capacity, owner interference, decision making ability and scope variation, and consultant related factors such as financial capacity, equipment availability and quality skilled workforce, site supervision ability, material availability, and control over sub-contractors have significant influence on project quality. Contractual capacity basically means the ability of a contractor to execute the contractual works successfully to completion. Contractual capacity can be reviewed from three main dimensions including financial, management and technical according to Ministry of Public Works evaluation procedures.
The findings in the study was also in lines of efficiency of the equipment that the contract has and the Clientele Relationship were found to be essential in enhancing better project performance, this views were also shared by (Ogunlana, 2010) who further asserts that as knowledge in project management field developed, the “golden triangle” was considered not enough to define project success. Project success was recognized to be a complex, multi-dimensional concept encompassing many attributes, Projects are unique, reason why project success criteria differ from one project to another, a combination of factors determines the success or failure of a project and influencing these factors at the right time makes success more probable.
5.1.2 Technical capability Project Performance
The correlation coefficient between technical capacity and project performance is reported as 0.356, with a significance level (p-value) of 0.033. this finding shows that the P-value 0.033<0.05, indicates that there is a statistically significant relationship between technical capacity and project performance. The Pearson correlation coefficient 0.356 further indicates that there is a moderate positive significant relationship between technical capacity and project performance. The study results further indicate that P-value 0.033 <0.05indicates that there is a statistically significant relationship between technical capacity and project performance. this also indicates that the null hypothesis is rejected and alternative hypothesis is accepted indicating that there is a significant relationship between technical capacity and project performance. This finding also further shows that the study will be grounded in agency theory developed by Eisenhardt (1989). The agency theory underpins that, a contract between the government and a contractor reflects a principal-agent relationship. The principal (government) contracts with the agent (contractor) to perform some level of effort, such as construction of schools on behalf of government which is eminent in this current study. In this relationship, the government’s objectives include obtaining the product or service at the right quality, right quantity, right source, right time, and at the right price, this finding further show that the government being the principle is mandated to choose an agent with a sound technical capacity to carry out the project.
On findings regarding the Experience in the Construction Industry; the results indicated that the contractor has wider experience in the construction industry, this is a positive sign as experience is often crucial in the construction sector for successful project execution, this view was also further supported by Lim and Mohammed, (1999) who further stated that construction projects are usually in phases and also require some form of specialization. Due to this, project team managers in construction projects that are complicated are changes at different phases. This means that at a particular point in time, a specific activity is carried out in the construction industry. All tasks are completed within a given time frame thereby paving way for the next phase in construction works.
On finding out further on Technical Team Competence the results further indicated that majority also agreed that the contractor has a well-trained technical team. This is a crucial factor as the expertise and competence of the technical team can directly impact project delivery, while on the matter regarding a considerable number agreed that the contractor has a quality management system, these responses are in line with Brown, & Adams, (2008) who asserted that according to Multiple linear regression models reveal that technical expertise, past time in business, work methods and working capital significantly impact on contractor’s performance across time, cost and quality success, Another basic requirement is that financial material and human resources are fully available for the implementation.
Safety Mechanisms; The results show a mixed response regarding the contractor’s safety mechanisms, with a notable portion of the respondents strongly disagreeing or disagreeing. Safety is a critical concern in construction, and these results indicate potential areas of improvement in safety practices and on the same note a substantial majority agreed that the contractor has efficient equipment suitable for project delivery. This is a positive aspect as having the right equipment is essential for successful and timely project completion.
Regarding the Clientele Relationship that the company has a well-established clientele relationship. This positive response indicates satisfaction among respondents regarding the contractor’s client interactions and Familiarity with Local Area and Resources; A significant majority agreed that the contractor is familiar with the local area and resources. Local knowledge is valuable in construction projects, and this positive perception can contribute to successful project planning and execution. In summary, while there are positive perceptions in areas such as experience, technical team competence, and equipment, there are also areas, particularly related to financial transparency, quality management, and safety mechanisms, where improvements or further communication may be needed. The contractor should take these results as valuable feedback for potential areas of enhancement in their operations.
5.1.3 Contractors managerial capability Project Performance
A positive correlation coefficient (0.311) suggests a positive linear relationship between managerial capability and project performance. This means that as one variable increases, the other tends to increase as well, and vice versa. The strength of the correlation is moderate, as the coefficient is between 0.3 and 0.5. The study results further indicate that P-value 0.033 <0.05indicates that there is a statistically significant relationship between technical capacity and project performance. this also indicates that the null hypothesis is rejected and alternative hypothesis is accepted indicating that there is a significant relationship between technical capacity and project performance. This finding also further shows that the study will be grounded in agency theory developed by Eisenhardt (1989). The agency theory underpins that, a contract between the government and a contractor reflects a principal-agent relationship. The principal (government) contracts with the agent (contractor) to perform some level of effort, such as construction of schools on behalf of government which is eminent in this current study. In this relationship, the government’s objectives include obtaining the product or service at the right quality, right quantity, right source, right time, and at the right price, this finding further show that the government being the principle is mandated to choose an agent with a sound technical capacity to carry out the project.
In the study it was further revealed that the contractor is able to plan for activities before implementation, Strong planning is a positive sign for project success. The high agreement suggests a commendable capability in pre-implementation planning. The contractor implements the projects in line with goals and objectives, this view was also further seconded by Carvalho, Patah, & de Souza Bido, 2015; Sabrokro, Tajpour, & Hosseini, (2018) who state that there is no magical formula for effective management rather there are a few skills required, these skills contribute to developing a continual learning process which not only makes management easier but effective as well. The study further indicated that Aligning project implementation with goals is crucial. The high agreement indicates that the contractor is effective in maintaining this alignment, in the same view Valcic, Dimitric, and Dalsaso (2016) believed that positive end results can be guaranteed if proper management skills are utilized and are also aligned to the project goals.
The study results further revealed that the contractor works in teams with the workers, Effective teamwork is vital for project success. The high agreement indicates a positive team-oriented approach by the contractor, this view was also further indicated by Howell, (2018) who stated that A leader needs to be conscious of defining goals for their followers, introducing new directions and generally promoting an organization, Good leadership is one of the essentials skills for effective management. It requires managers to be able to make good decisions, motivate individuals, and lead by example.
The findings in the study further indicates that the overall performance of a project, good leadership skill is essential for project quality performance. Notwithstanding their conclusion, both researches emphasize on the need for a project manager to build trust, gain respect, and encourage followers to give their best towards achieving good results and ensure productivity. It is rather unfortunate that a high number of managers especially in the project management field are lacking in this essential skill as they fail to motivate and manage employees to bring about desired output
The contractor has good record systems for project implementation, Mixed responses, with a significant percentage neutral. The neutral responses suggest uncertainty or a lack of consensus regarding the contractor’s record-keeping. Establishing clear and robust record systems might be an area for improvement. The study results further revealed that there is effective and efficient communication from the contracted team, but with a significant portion in neutral or disagree, this also further affirms that, Investigating and addressing communication concerns may be beneficial.
The contractor has the ability to control activities to ensure quality compliance, the contractor appears to excel in certain areas, such as planning, goal alignment, teamwork, and quality control. However, there are areas, notably risk management and record-keeping, where improvements may be considered. Additionally, addressing communication concerns could further enhance the overall effectiveness of the contractor’s managerial capabilities. On findings out if the Risk management is done and factored throughout the implementation process, the results indicated that Mixed responses, with a significant proportion disagreeing or strongly disagreeing. Addressing risk factors is crucial for project success, and the contractor may need to enhance their approach to risk management highlighting the importance of risk management was also further highlighted by Nixon, Harrington, & Parker, (2012) It is important to mention that there are three main effective management skills that are paramount in leading infrastructure projects; these are task execution skill, people management skill, and commercial insight management of these skills helps in reduction of risks in the execution of any specific project.
In conclusion, the survey results reveal an overall positive sentiment among respondents regarding the contractor’s financial capabilities, particularly in terms of honoring short-term financial obligations and utilizing the liquidity of current assets. The majority of respondents’ express confidence in the contractor’s ability to meet immediate financial commitments, although opinions show some variation, while there is still a favorable view on the contractor’s financial autonomy as a measure of solvency, the lower mean score and greater diversity of opinions indicate a less unanimous agreement compared to the previous statements. Notably, the use of borrowed funds for the project generates a more balanced response, with a moderate level of agreement but a higher degree of variability in opinions. This suggests that respondents are less aligned in their views on whether the contractor’s decision to not use borrowed funds is a positive attribute. In summary, the data suggests an overall positive perception of the contractor’s financial capabilities, with some variability in opinions on specific measures. The standard deviations highlight the extent of diversity in respondent views for each statement, emphasizing the need for careful consideration of different perspectives when assessing the contractor’s financial strength.
In conclusion, the findings from the survey on the contractor’s performance in the construction industry reveal a generally positive outlook in key areas such as experience, technical team competence, efficient equipment, clientele relationship, and familiarity with the local area and resources. These aspects are critical for successful project execution and client satisfaction. However, the results also highlight areas of concern, particularly in relation to the quality management system and safety mechanisms. The disagreement or uncertainty expressed by a significant portion of respondents in these areas suggests potential gaps or dissatisfaction with the contractor’s processes. Additionally, financial transparency is identified as an area where improvement may be needed. It is crucial for the contractor to recognize these findings as constructive feedback and an opportunity for enhancement. Addressing the concerns related to quality management, safety mechanisms, and financial transparency can contribute to overall project success and strengthen the contractor’s reputation in the industry. This comprehensive understanding of strengths and areas for improvement will enable the contractor to refine its operations and better meet the expectations of its stakeholders.
In conclusion, the study reveals commendable strengths in the contractor’s managerial capabilities, particularly in planning, goal alignment, teamwork, and quality control. The high levels of agreement in these areas indicate a positive and effective approach to project implementation. However, there are identified areas for improvement, notably in risk management and record-keeping, where mixed or neutral responses suggest potential weaknesses. Addressing these aspects could contribute to enhancing the overall effectiveness of the contractor’s performance. Additionally, investigating and addressing communication concerns may further solidify the contractor’s managerial prowess, ensuring a more cohesive and successful project implementation process.
In conclusion, the analysis of the regression models reveals insights into the relationship between independent variables and the dependent variable, “Project performance.” In the first model, the intercept and the coefficient for “Financial capacity” are both found to be statistically significant. The positive coefficient for “Financial capacity” suggests that higher financial capacity is associated with better project performance. The model appears to fit the data well. In the second model, the constant term is not statistically significant, but the coefficient for “Technical Capacity” is found to be significant, indicating that an increase in Technical Capacity is associated with a positive change in project performance. However, the overall model fit is not discussed, and additional information such as the R-squared value is needed for a comprehensive understanding of the relationship. In the third model, the constant term lacks statistical significance, and the managerial capability variable has a borderline significance level. The positive unstandardized coefficient suggests a positive relationship between managerial capability and project performance, but the uncertainty associated with the coefficient and the lack of statistical significance raise caution.
In summary, while each model provides valuable insights, it is crucial to consider the overall model fit, additional factors, and the significance levels of all coefficients for a comprehensive understanding of the relationships between independent variables and project performance. Further analysis and exploration are recommended to draw robust conclusions and inform decision-making in the context of project management.
5.3 Recommendations of the study
Recommendations of the study were made in line with the study objectives;
Recommendations on Contractors’ financial capability;
Enhance Communication on Financial Autonomy: Recognizing the variability in opinions regarding the contractor’s financial autonomy, it is recommended to enhance communication on the decision-making process related to financial autonomy. Providing clear and transparent information can help align stakeholders and strengthen confidence. Diversify Communication on the Use of Borrowed Funds: Given the balanced response and higher variability in opinions on the use of borrowed funds, consider diversifying communication to address concerns or misconceptions. Providing insights into the rationale behind the decision not to use borrowed funds can help in garnering more support.
Regularly Monitor and Address Short-Term Financial Obligations: Since there is a positive sentiment regarding the contractor’s ability to meet short-term financial obligations, it is advisable to maintain a proactive approach in monitoring and addressing these obligations. Regular updates and communication can reinforce stakeholders’ confidence in the contractor’s financial stability.
Engage with Stakeholders for Input on Financial Decision-Making: To address the diversity of opinions, it is recommended to engage with stakeholders for their input on financial decision-making processes. This collaborative approach can foster a better understanding of varying perspectives and lead to more informed financial strategies.
Recommendations on the contractors’ technical capacity;
Prioritize Quality Management and Safety Mechanisms: Acknowledging the areas of concern in quality management and safety mechanisms, it is crucial for the contractor to prioritize improvements in these aspects. Implementing robust quality control measures and enhancing safety protocols will contribute to overall project success and client satisfaction.
Enhance Financial Transparency: Recognizing financial transparency as an area for improvement, the contractor should take proactive steps to enhance transparency in financial processes. This may include regular financial reporting, clear documentation, and open communication to address any concerns or uncertainties among stakeholders.
Use Survey Findings for Continuous Improvement: The survey findings should be treated as constructive feedback and an opportunity for enhancement. The contractor should develop an action plan based on the identified areas for improvement, setting measurable goals and timelines for implementation.
The following are the Recommendations for Strengthening Managerial Capabilities;
Address Gaps in Risk Management and Record-Keeping: To enhance overall effectiveness, the contractor should address gaps in risk management and record-keeping. Developing comprehensive risk mitigation strategies and implementing robust record-keeping practices will contribute to more efficient project management.
Improve Communication Strategies: Given the importance of communication in project implementation, it is recommended to investigate and address any concerns related to communication. Developing clear communication strategies and channels can enhance collaboration and ensure a more cohesive project implementation process.
Implement Continuous Training and Development Programs: To further strengthen managerial capabilities, consider implementing continuous training and development programs. This can help address any knowledge gaps, enhance skills, and keep the managerial team abreast of industry best practices.
Consider refining Model 1 by incorporating additional relevant variables that may impact project performance. This could enhance the model’s predictive power and provide a more comprehensive understanding of the factors influencing project success. Conduct a thorough diagnostic analysis, including checking for multicollinearity and outliers, to ensure the robustness of the model results.
Explore potential interaction effects between variables to capture nuanced relationships that may not be evident in the current model. Evaluate the overall model fit of Model 2 by examining key statistics such as the R-squared value. This will provide a clearer picture of the proportion of variability in project performance explained by the model.
Conduct sensitivity analyses to assess the stability of the results and ensure that the relationship between Technical Capacity and project performance remains consistent across different scenarios.
Consider exploring potential moderating variables that may influence the strength or direction of the relationship between Technical Capacity and project performance. Given the borderline significance of the managerial capability variable in Model 3, conduct additional analyses to explore its impact on project performance in more detail.
Consider collecting additional data points or refining the measurement of managerial capability to improve the precision of the estimates.
Explore alternative model specifications or transformation techniques that may enhance the statistical significance of the managerial capability variable. Combine insights from all three models to create a more comprehensive understanding of the interplay between financial capacity, technical capacity, and managerial capability in influencing project performance.
Investigate potential interactions or synergies between the independent variables that could provide a deeper understanding of their joint impact on project success. Consider incorporating qualitative data or expert opinions to complement the quantitative findings and provide a more nuanced perspective on the factors influencing project performance.
Communication of Results, clearly communicate the limitations of each model, including uncertainties associated with coefficients and potential sources of bias or confounding factors.
Present the findings in a format accessible to a diverse audience, ensuring that stakeholders with varying levels of statistical expertise can comprehend the results and implications. Encourage ongoing collaboration and feedback from relevant stakeholders to refine the models and enhance the practical applicability of the findings in the context of project management.
