Identifying the performance areas affecting the project performance for Indian construction projects

Abstract

Purpose The construction industry is facing challenges because of performance shortfalls. Construction projects are highly complex, distinctive, fragmented and do not have well-established performance assessment models to evaluate their project success. The purpose of this paper is to assess the direction through determination of performance areas that would affect project performance in Indian construction projects. Design/methodology/approach A survey instrument was developed to gather data on the perception of industry professionals on these identified areas. Purposive sampling method was used to select respondents for the survey. These performance areas are ranked using relative importance index to ascertain a level of importance among the group. Factor analysis (FA) was conducted to identify the significant performance areas project performance. Further to identify the most influence performance areas on Indian construction projects, multiple regression analysis was carried out. Findings Findings indicated 28 significant performance areas. This shows the low level of adoption of good construction management practices in Indian construction projects. FA resulted in the areas being grouped to nine broad significant performance areas with 59.49% of the total variance, namely, quality, schedule, environment and stakeholder satisfactions, cost, productivity, safety, communication management, customer relations and finance. Multiple regression analysis revealed two pivotal factors “customer relations” and “schedule” that significantly influence project performance in Indian construction industry. Originality/value The outcome of the study will guide project stakeholders, who desire to improve project performance on construction projects, to prioritize their efforts. It also highlights performance areas of project management which required more focussed research in the context of Indian construction projects. The findings can be extended to the developing countries.