Sustainable Activity of Construction Companies under the Influence of Destabilizing Factors on the Duration of Implementation of Investment-Construction Projects

Abstract

Failure to meet the deadlines for the implementation of investment-construction projects is a problem in all countries of the world and leads to unstable activity of construction companies. This article studies the most important destabilizing factors affecting the main indicator of sustainable activity of construction companies, i.e., the duration of the implementation of an investment-construction projects. To determine and assess the impact of destabilizing factors on the duration of implementation of selected investment-construction projects, a survey was conducted in which a number of customers, consultants, and contractors involved in construction projects took part. Questionnaires developed on the basis of a cluster sample were sent to respondents, and 84 responses were received in response to the assessment of destabilizing factors. To analyze the received and grouped information, structural equation modeling using the Smart-PLS program was used. As a result of modeling, a number of results were obtained, the most important of which was the identification of the main reasons that lead to an average (20–50%) increase in the duration of projects in the construction sector. The most significant was the lack of an appropriate procurement program for materials; inefficient scheduling by contractors and instability of construction production, poor-quality processing of incoming information, and untimely decision-making due to changes in projects during their implementation. Destabilizing factors contribute to an increase in the duration of construction sector projects, which leads to time overruns, cost overruns, and an increase in the negative impact on the overall use of resources. As a result of the study, a set of recommendations was formed, the most important of which is the use of possible compensatory measures that can allow construction companies to eliminate the risks of disrupting construction deadlines for sustainable activities. These compensatory measures include: 1. recommendations to customers of the construction project, 2. recommendations to contractors, and 3. recommendations to the consultant. Moreover, the control of destabilizing factors that can cause delays, the improvement of contracts, and the precise and clearer definition of all elements of the project can help to reduce the duration of construction, and will allow companies to maintain sustainable activities in the construction industry.