Causes of Contractors’ Failure in the Construction Industry in Rwanda
Kalamagye John1, Abednego O. Gwaya2, Githae Wanyona3
1Mr. John Kalamagye, Bachelor of Science in Engineering (Construction, Engineering and Management). KIST. Msc in Transportation Engineering and Economics. UR. Msc. Construction Project Management, (Ongoing), JKUAT.
2Dr. Abednego Gwaya, B.A (Bldg. Econ.), U.O.N, MSc Civil Eng. Makerere, Ph.D (Const. Eng. & Mngt).JKUAT.
3Dr. Githae Wanyona, B.A BLDG ECONS (U.O.N), M. Engineering (Kyoto University, Japan), PhD (UCT), RSA.
Manuscript received on June 05, 2019. | Revised Manuscript received on June 11, 2019. | Manuscript published on June 15, 2019. | PP: 75-82 | Volume-5, Issue-12, June 2019. | Retrieval Number: L11250651219/19©BEIESP
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: In Rwanda the construction sector plays a major role in the country’s economic development through its contribution to gross domestic product (GDP), gross domestic capital formation (GDCF), creation of employment and production of capital facilities and assets required for production in other sectors. Despite its importance, construction industry faces challenges which cause failure by contractors during the execution of contracts and seek to develop a strategy to mitigate contractors’ failure in construction i n d u s t r y in Rwanda. The study aims at identifying and analyzing the challenges which cause failure experienced by contractors during the execution of construction contracts and seeks to develop a strategy to mitigate constructors’ failure in the constructor industry in Rwanda. Even if the construction industry i n Rwanda is growing at an increasing rate due to the political environment that promotes doing business and a booming private s e c t o r driven economy; most construction contractor’s companies remain at same level of survival and growth in business for quite a long period of time due to a number of hindering factors. The study focused on the challenges which cause failure encountered b y construction c o n t r a c t o r s during implementation of contracts in Rwanda; the perceptions o f contractors, consultants and clients regarding the challenges which cause failure of construction contractors during the execution of contracts in Rwanda; and the strategies to mitigate contractors’ failure in construction industry in Rwanda. In the purpose of the study, the online questionnaire survey of 80 construction c o n t r a c t o r s, 58 consultancy firms and 32 clients was conducted. The researcher surveyed 30 causes that h a v e been categorized into managerial, financial, expansion and external groups which lead to failure of construction contractors from literature and respondents.
Keywords: Client, Consultancy, contracts, and contractors’ failure.