ASSESMENT OF THE PERFOMANCE OF SMALL-SCALE

LOCAL CONTRACTORS ON CIVIL PROJECTS IN

DAR ES SALAAM TANZANIA

MLAKI BRIAN FREDRICK

Department of Building Economics

School of Architecture Construction Economic and Management
(SACEM)
Ardhi University (ARU)
DAR ES SALAAM AUGUST, 2021
ASSESMENT OF THE PERFOMANCE OF SMALL-SCALE
LOCAL CONTRACTORS ON CIVIL PROJECTS IN

DAR ES SALAAM TANZANIA

MLAKI BRIAN FREDRICK

Dissertation submitted in partial fulfilment of the requirements for the award of the
B.Sc. Degree in Building Economics of the Ardhi University.

Department of Building Economics

School of Architecture Construction Economic and Management (SACEM)
Ardhi University (ARU)

DAR ES SALAAM AUGUST, 2021

 CERTIFICATION
The undersigned certifies that he has read and hereby recommends for acceptance by
Ardhi University dissertation titled “Assessment of the performance on small scale
local contractors on civil projects” in partial fulfilment of the requirements for the
degree award of Bachelor of Science in Building Economics.

………………………………………….

DR. HERRIETH ELIUFFO

(Dissertation supervisor’s)

Date………………………………….

1
 DECLARATION
I, MLAKI BRIAN FREDRICK, hereby declare that the contents of this report are
the results of my own study and findings and to the best of my knowledge, they have
not been presented elsewhere for a Diploma, Degree or any professional award in any
Institution of Higher Learning.

………………………………………………………..

MLAKI, BRIAN FREDRICK

SUPERVISOR’S DECLARATION

This report has been presented as a semester Dissertation in partial fulfilment of the
requirements for the award of the B Sc. Degree in Building Economics of Ardhi
University

……………………………………
……………………………………….

DR. HERIETH ELLIUFO DR. GODWIN MARO

DISSSERTATION SUPERVISOR HEAD, DEPARTMENT OF

BUILDING ECONOMICS

SCHOOL OF ARCHITECTURE

CONSTRUCTION ECONOMICS

AND MANAGEMENT

ARDHI UNIVERSITY

2
 ACKNOWLEDGEMENT
First and foremost, I would love to thank God for his undying love and blessings. It is
by his grace that I can call this a successful piece of work.

I would love to express my heartfelt gratitude to my supervisor, DR HERIETH K

ELIUFO for always providing the assistance and guidance throughout this whole
semester for her constructive criticism and guidance in spite of her tight schedule

I would love to thank and appreciate the sincere love, care and concern of my family
especially my father Qs. Fredrick Mlaki who, has consistently make a follow up and
provide support throughout the semester.

My very special appreciation goes to the participants of the contractors and

TANROAD Dar es salaam. Tanzania who warmly received me and whole-heartedly
co-operated in responding to my questionnaire questions. Their co-operation and
willingness to participate is what made this study fruitful. Finally, I thank my
colleagues Ngwanangwaru Rose, Diana kessy, to mention a few, for their criticism,
their support, their hand of help whenever I needed it and for their presence at large. I
am grateful for each one of them. Thank you all very much.

3
 DEDICATION
This dissertation is dedicated to my parents for their love and support from my
childhood. Their endless support, love, and encouragement that they gave me to make
me the person that I am today.

4
 ABSTRACT
Small-Scale Construction Firms in Tanzania have a number of challenges that limit
their ability to contribute to the country's GDP, job creation, and infrastructure
development. Despite the possibility of increased development contributions, there is
still a need to improve the performance of Tanzania's small-scale local contractors.
This research outlines performance evaluation as the major purpose of local small
civil contractors, with performance indicators used to evaluate the contractors'
efficacy and efficiency in terms of construction process and client satisfaction., as
well as make recommendations on how to improve their performance. Client
satisfaction was measured using eight parameters, while schedule consistency and
delivery reliability were measured using nine parameters

The research used a cross-sectional design with structured questionnaires. Structured

interviews were done with clients who were purposefully chosen and contractors who
were randomly chosen. The respondents were chosen from among the project team
members, including clients (TANROAD) and small local contractors (Class VI and
VII). Ten questionnaires were physically delivered to TANROAD employees, and all
questionnaires provided were returned, resulting in a 100% response rate. A total of
78 questionnaires were issued to small contractors, with 56 of them being collected,
resulting in a response rate of 71%. SPSS25 was used to analyse the data.

Small-scale civil contractors in Tanzania are characterized by poor performance in

terms of construction schedule consistency, and project delivery reliability is still a
key issue for these contractors, according to the results acquired on the ground. The
study gathered suggestions on how to enhance contractor performance from both
small contractors and clients, and it was discovered that the best strategies to improve
contractor performance were ;Human resource management and work force
development by the contractors to reduce the extent of defect ,Improve planning and
scheduling during design process to reduce (extension of time) EOT that affect project
delivery and appropriate financial mechanism to improve cash flow and liquidity of
this contractors were ranked to be the most reliable measures .

TABLE OF CONTENTS

5
CERTIFICATION..........................................................................................................1
DECLARATION...........................................................................................................2
ACKNOWLEDGEMENT.............................................................................................3
DEDICATION...............................................................................................................4
ABSTRACT...................................................................................................................5
TABLE OF CONTENTS...............................................................................................6
LIST OF TABLES.........................................................................................................9
ABBREVIATIONS......................................................................................................10
CHAPTER ONE..........................................................................................................11
INTRODUCTION........................................................................................................11
1.1 Background of the Study....................................................................................11
1.1.1 Knowledge Gap......................................................................................15
1.2 Statement of the Problem...................................................................................16
1.3 Objective of the Study........................................................................................16
1.3.1 main objective..............................................................................................16
1.3.2 specific objective.........................................................................................16
1.5 Significance of the study....................................................................................17
1.6 Scope of the Study..............................................................................................18
1.7 Research Methodology.......................................................................................18
1.7.1 Research Design..........................................................................................18
1.7.2 Unit of Analysis...........................................................................................18
1.7.3 Research Approach Methodology...............................................................18
1.7.4 Population....................................................................................................19
1.7.5 Sampling Type.............................................................................................19
1.7.6 Sample Size..................................................................................................19
1.7.7 Scaling Method............................................................................................20
1.8 Data Collection...................................................................................................20
1.9 Data Analysis......................................................................................................21
1.10 Research Organization......................................................................................21
1.11 Chapter summary..............................................................................................22
CHAPTER TWO.........................................................................................................23
LITERATURE REVIEW.............................................................................................23
2.1 Introduction........................................................................................................23

6
 2.2 Definition of terminologies................................................................................23
2.2.1 Assessment...................................................................................................23
2.2.2 Project..........................................................................................................23
2.2.3 Civil Works Contractors..............................................................................23
2.2.4 Performance assessment..............................................................................24
2.3 Small Scale Local Contractors in Tanzania....................................................24
2.4 Performance Assessment....................................................................................27
2.4.1 Construction process performance assessment............................................30
2.4.1.1 indicators for construction process performance......................................30
2.4.2 Clients Satisfaction Performance Assessment.............................................33
2.5. Improving the performance of small-scale local contractors in Tanzania........36
CHAPTER 3.................................................................................................................41
DATA COLLECTION AND ANALYSIS..................................................................41
3.1 Introduction........................................................................................................41
3.2 Data Collection...................................................................................................41
3.3 Data Analysis......................................................................................................42
3.4 Respondents information....................................................................................42
3.4.1 Period with the organization of the respondents..........................................42
3.4.2 Professional positions of the Respondents...................................................42
3.5 Clients Satisfaction Assessment.........................................................................43
3.5.1 Extent of Disputes or Claim During Contractual Period.............................43
3.5.3 Extent of Occurrence of Defects Outstanding at Practical Completion of the
Project...................................................................................................................44
3.5.3 Information Coordination and Communication...........................................44
3.5.4 Extent of Quality of Projects After Defect Liability Period........................45
3.5.5 Performance of small contractors in resource optimization and management
..............................................................................................................................45
3.5.6 Extent of Budget Adherence........................................................................45
3.5.7 Extent of Skilled Workforce or Staff of Small-Scale Contractors...............46
3.5.8 Measures to Improve the Performance of Small-Scale Civil Contractors.
(Client’s Perception).............................................................................................46
3.6 General Information of Respondents..................................................................47
3.6.1 Period with the Organization.......................................................................47
3.6.2 Position in the organization.........................................................................48
3.6.2 Number of projects......................................................................................48

7
 3.7 Small civil contractor’s performance assessment in terms of schedule stability
and delivery reliability..............................................................................................48
3.7.1 Extent of Schedule Change During Construction........................................48
3.7.2 The Extent of Schedule Changes due to Difference of the Actual Site
Condition and that Given in the Document..........................................................49
3.7.3 Extent Client- Initiated Variation Occur During Construction....................49
3.7.4 Extent at Which Projects Schedules Comply with Contractual
Agreement.............................................................................................................50
3.7.5 Extent of Coordination and Communication Between Project Parties........50
3.7.6 Extent of Unrealistic Baseline Schedule Prepared by this Contractor.........50
3.7.7 The use Project information technology to control the progress and
schedule of the project..........................................................................................51
3.7.8 Extent of Contract Being Delivered on Time in a Given Period of Time...51
3.7.9 Extent of Lost Time due to Shortage of Materials and Searching for
Materials...............................................................................................................52
3.7.10 Descriptive Analysis of Performance Indicators.......................................52
3.8 measure to improve the performance of this contractors with regard to schedule
stability and delivery reliability................................................................................54
3.9 Discussions of the Findings................................................................................55
3.9.1 Performance of Small Civil Contractors......................................................55
3.9.2 Suggested measures to improve performance of small-scale civil
contractors.............................................................................................................56
CHAPTER 4.................................................................................................................57
CONCLUSION AND RECOMMENDATION...........................................................57
4.1 Introduction........................................................................................................57
4.2 Conclusion..........................................................................................................57
4.3 Recommendation................................................................................................59
REFERENCES.............................................................................................................60
APPPENDIX I: QUESTIONNAIRE TO CLIENTS...................................................64
APPENDIX II: QUESTIONNAIRE TO CONTRACTORS.......................................68

LIST OF TABLES

8
Table 1.1: non-financial performance measure............................................................14
Table 1.2: Knowledge Gap..........................................................................................15
Table 1.3:Population Size............................................................................................20
Table 1.4: Sample Size.................................................................................................20
YTable 2.1: Contractors Population……………………………………………………
27
Table 2.2: Limitation of Financial Measures by Different Researchers......................29
YTable 3.1:Respondents experience in years with the
organization…………………..42
Table 3.2: Professional position within the organization.............................................43
Table 3.3: Extent of occurrence of disputes and claims...............................................43
Table 3.4: Frequency of Occurrence of Works Redone...............................................44
Table 3.5:Frequency of Occurrence of Defects at Practical Completion.....................44
Table 3.6: Extent of Information Miscoordination......................................................44
Table 3. 7: Extent of Quality After DLP......................................................................45
Table 3.8: Extent of Resource Optimization and Management...................................45
Table 3.9: Extent of Budget Adherence.......................................................................46
Table 3.10: The use of skilled workforce by the contractor........................................46
Table 3.11: Measures to Improve Performance of Small Contractors in Tanzania.....46
Table 3.12: Period with the Organization....................................................................47
Table 3.13: Position within the Organization..............................................................48
Table 3.14: Number of Projects Executed...................................................................48
Table 3.15: Extent of Schedule Change.......................................................................49
Table 3.16: Extent of Schedule Instability due to Different Site Condition................49
Table 3. 17: Extent of Client-Initiated Variation During Construction.......................49
Table 3.18: Projects Schedules Compliance to the Contract.......................................50
Table 3.19: Coordination and Communication Between Projects...............................50
Table 3.20: Extent of Unrealistic Baseline Schedule...................................................51
Table 3.21: Extent of Use of Project Information Technology....................................51
Table 3.22: Extent of Project Delivery........................................................................51
Table 3.23: Extent of Lost Time due to Shortage of Material.....................................52
Table 3.24: Descriptive Analysis of the Performance Indicators on Small Civil
Contractors...................................................................................................................52
Table 3.25: One Sample Test.......................................................................................53
9
 ABBREVIATIONS
CRB Contractors Registration Board

DLP Defect Liability Period

EOT Extension of Time

GDP Gross Domestic Product

NBS National Bureau of Statistics

PERT Program Evaluation Review Technique

SCC Small Civil Contractors

SPSS Statistical Package for the Social Science

TANROAD Tanzania National Road Agency

10
 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Contractors registration board CRB (2016) defines local contracting firms (building,
civil, electrical and mechanical) as those firms, who’s its majority shares, are owned
by citizens of the United Republic of Tanzania. According to the contractor’s
registration board bylaw (2009) amendment, Local building contractors are divided
into seven classes, which are ranking from class one up to class seven. According to
[CITATION Kik18 \l 1033 ] Tanzanian contractors are categorized according to size
into the following seven classes, namely: Class I through VII with the great majority
of registered contractors concentrated in Classes IV to VII (small contractors)
accounting for 84% of the total[ CITATION Tes17 \l 1033 ] . A small-scale
contractor is defined broadly as one with limited capital investment, who may need
financial and managerial support to effectively run his or her business[CITATION
pau15 \l 1033 ].

The construction industry as a whole is largely made up of small firms. It provides

entrepreneurial opportunities for many small businesses and plays an important role in
the distribution of income. Due to the considerable variation in construction demand,
contractors are at greater risk of changes in their working environment. Small
contractors often experience difficulties in managing labour, materials, finance and
equipment. They have limited capacity to influence the business environment,
including the regulatory framework of the industry[CITATION int20 \l 1033 ] .
Also[CITATION ill17 \l 1033 ] and [ CITATION ari18 \l 1033 ] said Small and
medium-sized construction firms have the potential to enhance any nation’s growth
and development, because they contribute to wealth creation, value re-orientation, job
creation, and poverty eradication.

Most construction firms are small in size in every country. Small contractors in
developing nations are not only weak on the inside, but they are also harmed by the
well-documented issues that plague the construction industry in these countries. These
businesses, on the other hand, have a lot of promise for satisfying the countries'
construction demands and laying the groundwork for national development. Running

11
a construction business in such an environment is a great challenge. In most
developing countries, small enterprises face a particularly formidable array of
problems[ CITATION Hab96 \l 1033 ].

Because of its impact on the welfare of its population and the investment required, the
road sector is a significant part of any country's economy. In any culture, high-quality
road construction is critical for both safety and economic development. This
significance is supported by the fact that the transportation industry plays a critical
part in a country's socioeconomic growth through providing transportation.
Construction and repair of roads utilizes a great part of government expenditure.
Performance of local contractor on projects are assessed to ensure that deliverable is
in line with specification[CITATION reg13 \l 1033 ].[CITATION fal14 \l 1033 ]
referred performance of small-scale construction firms as to economic and operational
performance of small-scale construction firms in areas of excellence, profitability,
productivity and other non-cost factors such as quality, speed delivery and flexibility.
Therefore, there is a great advantage to assess and measure the performance of small-
scale contractors.

According to many researches, there is a problem with small-scale contractors'

performance when it comes to completing road projects. According to the
International Labour Organization, a variety of factors can influence this contractor's
performance.[CITATION ANI02 \l 1033 ] said Implementation problems seem to lie
mainly on the inability of involved personnel to operate by the required rules and
guidelines due to lack of experiences and managerial skills. Lack of appropriate
technical standards, work specifications and guidelines for small scale construction
projects is also a major hindering problem for technical personnel to properly and
effectively implement a construction project.

Local contractors in developing countries have significant challenges in the

performance and implementation of road projects. According to a study, small-scale
local contractors underperform when it comes to road construction. Construction
projects and the sector as a whole have done poorly in both industrialized and
developing countries, according to studies. Many projects in poor countries run into
difficulties. Also[ CITATION Oso12 \l 1033 ] said although globally small-scale
construction firms experience problems that tends to limit their capacity in handling

12
construction businesses resulting in poor workmanship, cost and time overruns.
However, the problems are more severe in developing countries. [ CITATION
ofo06 \l 1033 ]“The construction industry in developing countries failed to meet
expectations of governments, clients and society as a whole”.

[ CITATION arc19 \l 1033 ] at the conference of awareness and the establishment of

contractor’s union and groups using eligible labor technology for construction, road
maintenance repair which was done at the university of labor technology in Mbeya,
The Permanent Secretary of Ministry of works, Transport and Communication (in
charge of Works sector) said construction works require greater credibility and quality
shields. He said various studies show local contractors particularly the small scale has
been unable to assign great work to several reasons. This means the small-scale
contractors underperform in such a manner that the government cannot entitle them
with great works, thus there is a problem of underperformance of small-scale local
contractor in execution of road work. As a general remark, the Tanzanian construction
industry and the local firms in particular, lack Competency in performance and this is
why the present research is centered in performance Management and improvement
(matiko, 2012).
The study will be tailored on the assessment of small-scale civil contractor’s
performance in execution of road projects in Tanzania (the case study being Dar es
salaam,) and suggest crucial performance measures for civil contractors in Tanzania.
Performance Assessments determine whether performance measures and incentives
have been met by this contractor. Local contractors’ performance is measured and
evaluated using a number of performance indicators that might be related to the
predominant performance evaluation measurements scopes of cost, time and quality.

Traditionally, the success of projects is measured on time, cost and quality

parameters; although, most construction projects in Tanzania have not performed well
on each of these parameters, thus emergence of other performance measures. ( katic
and bevanda, 2019) said Traditional performance indicators (time, cost, quality) are
not sufficient for balanced view of project success or fail. They are lagging indicators
because they constitute results of project execution and do not show drivers
performance indicators of construction projects. Performance of contractors in
construction sector can be assessed in two ways as formally given as financial
indicators and the non-financial indicators or operational indicators. Apparently

13
financial measures were the cornerstone of performance measures system. These
measures have played an important role in shaping corporate management decisions
and are likely to continue doing so for some time to come. The main financial
measure of performance is profit. (Matiko, 2012) said the calculation of profit is
hardly ever straightforward since it depends on sets of accounting conventions. In
addition, the measurement of profit per se gives no indication of the potential for
improvement within an organization even in profit terms. Further, the attainment of
profit in turn depends on a number of other financial and operational outcomes, and
management has to encourage and monitor performance across a wide front
Organizational management is a whole process.

Limiting performance measures to financial (and specifically to profit alone) is

outdated because the indicators are themselves derived from cost accounting
information, which is often based on outdated and arbitrary principles. Also ( katiac
and Bevanda, 2019) argued that This limited approach of measurement the
performance success is not sufficient because it shows the results of decisions made in
paste, have no impact on improving current performance and don’t show causes of
such results. It is very important to see how to measured organizational performance,
as has the impact on market share, so this may be accepted from potential investors,
employees and customers. For these, the most important is system that represents
balance between financial score and drivers for further performance. At the same time
that system beam intangible assets potential and help organizations in enforcement
different strategies.

Performance assessment is divided into five performance measures that is innovation

and learning, process, project stakeholder satisfaction and financial. The purpose of
this study is to assess the performance of small civil contractors in civil projects by
using non-financial measures or operational measures. Being that the case, our
performance dimensions will be focused to clients/customers satisfactions and process
and by using the below listed indicators of performance, the performance of this
contractors will be done.

Table 1.: non-financial performance measure

Clients satisfaction assessment indicators Process assessment indicators
Number Disputes/claims Schedule stability
Number /cost of reworks Delivery reliability
Information coordination Quality performance

14
 Quality Resource availability
Customers/clients satisfaction survey Skill coverage / requirement
Source: literature
Contracting firm’s performance is an important element in project success and a
firm’s competitiveness has often been explained by the characteristics that define its
ability to deliver a project within the parameters of completion time, estimated cost,
and quality satisfaction (Aliyu et al, 2015)

1.1.1 Knowledge Gap

Table 1.: Knowledge Gap

TITLE AUTHOR FINDINGS GAP
Establishment of Msomba, factors caused by contractors The results did not discuss
impediments to small Philemon and LGAs towards poor on criteria of client
and medium local (2009) performance of construction satisfaction on government
contractors’ projects in LGAs were projects, also the factors of
performance in identified, the extent of poor performance did not
construction projects effects of critical factors on discuss the criteria of
in local government the overall performance of construction schedules and
authorities in construction projects and project delivery reliability
Tanzania suggesting measures for their as a major problem of local
mitigation contractors

Assessing the Regina The researcher attempted to The study focused on

performance of local bekeo (2013) show that local contractors assessing performance of
contractor on are perceived to have poor contractors in terms of
government projects performance in terms of technical capacity, project
in Akwapim northern technical capacity. The monitoring environment of
Municipality findings showed how the project and funding
assembly akropong- technical capacity, selection mechanism whilst this
akuapem eastern criteria and funding study will check on other
region -Ghana mechanism as attributes of parameter such as schedule
performance of local stability during
contractors construction delivery
reliability and client’s
satisfaction.

Performance Divine Findings reported that

evaluation of private hedidor This paper examined the project management,
contractors in eastern (2015) main factors of influencing communication bottleneck
region Ghana construction contractor and lack of subcontractor’s
performance in the Eastern commitment as the main
Region of Ghana. parameters for
performance assessment
while this study will assess
the performance by using
other important parameter
left out and also it was
reported that the sample
size for the study was
limited. Also, the study
was general, there is little
emphasis typically on the
small civil contractors
Measuring the Benoni The study examined the key The study majorly tested

15
 performance of basheke performance measurement the reliability of different
contractors in (2012) variables for the construction variables for measuring
government industry in Uganda. It was performance by ranking
construction methods also to identify the the variable, this study will
in developing challenges faced by assess the extent of
countries; Uganda’s contractors in Uganda performance of small
context contractors at different
parameters. Also, the study
focused on the whole
sector but this study will
focus on small scale
contractors.

Source: literature

1.2 Statement of the Problem

The contractor's ability to complete a construction project successfully is primarily

dependent on his or her performance. However, it has become a global tendency for
contractors to fail to meet the expectations of the clients they serve, and many road
contractors have failed to meet these standards. [ CITATION Miz08 \l 1033 ]
said still some Contractors have been doing the work that they do not take into
account time and quality. We all hear and see delays in projects that once many leads
to construction costs and worse, deteriorating infrastructure completed in a short
period of time. While the local contractor performance has been the subject of much
research, evidence suggests that there is much need for further improvement. While
studies have been conducted to evaluate the performance of the whole construction
sector and building contractors, few scholarly researches have been conducted to
examine the performance of small civil contractors, which is an important area for
improvement in the delivery of critical services. As a result, the researcher proposes
to examine the performance of small-scale local contractors in the implementation of
road projects scientifically by focusing on and examining non-financial performance.

1.3 Objective of the Study

1.3.1 main objective

To assess the achievement of non-financial performance measures on small local
civil contractors in civil projects

16
1.3.2 specific objective
In order to attain the main objective, specific objectives were formulated which were
as follows

I. To examine the achievement of client satisfaction as a non-financial

performance measures of small-scale civil contractors.

II. To examine the achievement of performance schedule stability and delivery

reliability as non-financial performance measures.

III. To come up with suggestions of how to improve the performance of small-

scale civil contractors with regard to client’s satisfaction, schedule stability
and deliver reliability in Tanzania.

1.4 Research questions

I. Does the performance of small civil contractors on road projects meet client’s
satisfaction?
II. How is the performance of small civil contactors as far as construction
schedule stability and delivery reliability is concerned?
III. What strategies can be adopted to improve and manage the performance of
this contractors in Tanzania

1.5 Significance of the study

The findings of this study will help to determine if small-scale local contractors in
Tanzania have the full capabilities to complete road projects in Tanzania, based on
their performance on government road projects. The findings could potentially be
utilized by the government and policymakers in Tanzania to develop policies and
methods to monitor, manage, and enhance the performance of small-scale local
contractors working on road projects. This discovery could be beneficial to road
authorities and the government in general because the study would set out statistics
and information on the performance of local contractors and identify common issues
that these small contractors face. The results of the study will be useful to the intended
contractors in developing self-awareness about their performance in the execution of
road works, keeping track of their performance in each project, and improving their
performance by implementing a performance management approach. The study will
provide information and data that may be relevant to other academics working on

17
other studies involving small local contractors and road construction. Other
researchers may be able to combine this information with studies from other countries
to compare performance measures of small local contractors.

1.6 Scope of the Study

The study here in focused on the assessment of performance of small-scale civil

contractors in road projects in Tanzania. The study is confined in Dar es salaam
region due to that it has greater regional road networks. The target is the small local
contractors (Class Vi -Class Vii) in Dar es salaam.

1.7 Research Methodology

[CITATION crk04 \l 1033 ]defined Research methodology as the systematic way to

solve the research problem. It involves analysis of the assumptions, principle and
procedures in a particular inquiry. Methodologies explicate and define the kinds of
problem that are worth investigating, what constitute a research problem; testable
hypotheses; how to frame a problem in such a way that it can be investigated using
particular design and procedures; and how to select and develop appropriate means of
collecting data.

1.7.1 Research Design

(Akhtar, 2016) defined research design as structure of research, it is a glue that holds
all the element in a research project together, is a plan of proposed research. The
researcher will use the cross-sectional research design. Cross sectional study is also
known as one-shot or status studies, are the most commonly used design in the social
sciences. This design is best suited to studies aimed at finding out the commonness of
a phenomenon, situation, problem, attitude or issue, by taking a cross-section of the
population, it collects data from many subjects at a single point in time.

1.7.2 Unit of Analysis

The unit analysis of this study herein is the small-scale civil contractors and
TANROAD (as client). The study intends to measure performance of this
contractor’s and the road authority as the client case taken in Dar es salaam
Tanzania.

18
1.7.3 Research Approach Methodology
The three common approaches to conducting research are quantitative, qualitative,
and mixed methods. The researcher anticipates the type of data needed to respond to
the research question (Williams, 2007) . The quantitative method will be utilized to
answer the study's questions. Quantitative research is a type of research that aims to
test theories, establish facts, show correlations between variables, and forecast results.
Quantitative research employs natural-sciences-based approaches to ensure
objectivity, generalizability, and consistency.
Quantitative research approaches include unbiased random selection of research
participants from the study population, a standardized questionnaire or intervention,
and statistical methods for testing prepared hypotheses about the relationship between
specified variables. In quantitative research, the researcher is considered external to
the actual research, unlike in qualitative research, where he or she is regarded as a
great research instrument because of his or her active participation in the research
process. Results are expected to be replicable, regardless of who conducts the
research.

1.7.4 Population
Population is the group of individual or object who have one or more characteristics
in common[ CITATION kum11 \l 1033 ]. The intended population for this study is
the small civil contractors (Class VI-Class VII) and the client which is the road
authority TANROAD.

1.7.5 Sampling Type

Sampling design refers to the technique or the procedure the researcher adapted in
selecting items for the samples. The design constitutes two types namely, probability
and non-probability sampling. Probability sampling is based upon the concept of
randomization or random selection in which respondents are selected: each and every
unit in the population has equal chance of being selected. For the case of this study
the sampling type is simple probability sampling. Under simple probability sampling
the population of small civil contractors is subjected to simple random every
contractor with any current commitment project has equal and fair probability of
being chosen

19
A purposive non probability sampling was used to select sample from a population of
clients. This was backed up by the presence of several clients serving as construction
stakeholders hence personal judgement was used (Kothari, 2011).

1.7.6 Sample Size

Kothari (2011) describes that sample size as a determination of precision rate and
confidence rate

Population of the study

[ CITATION Kot11 \l 1033 ] describes that sample size as a determination of

precision rate and confidence rate. Sample size should be optimum, neither large nor
small [ CITATION Lyi18 \l 1033 ]. According to [ CITATION CRB21 \l 1033 ] there
are 783 small civil local contractors in Dares salaam accounting for 549 contractors
(class VI) and 234 contractors (class VII). Class VI -Class VII make up small
contractors[ CITATION Tes17 \l 1033 ].

Table 1.:Population Size

Population Population size
Class VI contractors 549
Class VII contractors 234
Total 783

A census sampling technique as used and justified by[CITATION Kik18 \l 1033 ]

[CITATION Chi20 \l 1033 ][ CITATION chi19 \l 1033 ] for the purpose of small
contractors’ studies, was used in administering 78 questionnaires via hand (or circa
10% of the total number of Class VI and VII contractors).

Table 1.: Sample Size

Population Size Sample Size
Class VI (n=549) 54
Class VII (n=234) 23
Total 78

1.7.7 Scaling Method

Scaling describes the procedures of assigning numbers to various degrees of opinion,
attitude and other concepts. This can be done in two ways, (I) making a judgement
about some characteristic of an individual and then placing him directly on a scale
that has been defined in terms of that characteristic and (ii) constructing
questionnaires in such a way that the score of individual’s responses assigns him a

20
place on a scale[CITATION crk04 \l 1033 ]. For the case of our study Linkert type
scale was used. In a Likert scale, the respondent is asked to respond to each of the
statements in terms of several degrees, usually five degrees (but at times 3 or 7 may
also be used) of agreement or disagreement[CITATION crk04 \l 1033 ].

1.8 Data Collection

Data collection is very essential in the success of the study; it is further defined as a
relevant information gathering proceeding from the established sample size of a
population of the given study. Data collection is classed into primary and secondary
data collection where primary data collection entails data from the field and/or first-
hand information while secondary data is obtained from literatures (Kothari, 2004) in
the case of this study questionnaire technique where the contractors were handled
questionnaire to answer and data and information were gathered are recorded and
literature review to obtain secondary data .Secondary data enlightens and brings
further understanding of what was done prior by other researchers, work by authors,
published articles, journals, papers and varied sources of secondary data related to
assessment of performance of small civil contractors. Questionnaire technique as also
employed.

1.9 Data Analysis

Data analysis is the process of collecting, modelling, and analysing data to extract
insights that support decision-making[ CITATION ber21 \l 1033 ]. descriptive
research was used to organize and present information systematically on “An
Assessment of the performance of small-scale local contractors on civil works” Data
collected were edited and coded. This was done to ensure consistency and uniformity
in the processing of the data. The data was analyzed using Statistical Package for
Social Science (SPSS 26). Frequencies and percentages were used in the analysis and
the result represented in descriptive and frequency table.

1.10 Research Organization

Chapter one; introduction

This chapter serves as an introduction to the study, including its background and
purpose. It clarifies the study's purpose. It includes the study's background, problem

21
statement, major and particular objectives, research question, significance of the
study, and research methods.

Chapter two; literature review

This will discuss on the literature reviews concerning the study, that are books,
journals, previous studies related to the study, different papers concerning the
assessment of performance of the small-scale local contractors.

Chapter Three; Data Collection analysis and finding

Here in the data collected through questionnaires and interviews was analysed and
interpreted to obtain findings. This chapter was guided by the research questions. And
it is at this stage the research questions were answered.

Chapter four; Conclusion and Recommendations

This is a conclusive chapter that recognized the contribution of the study and
recommended further action, and outcome of the study.

1.11 Chapter summary

This chapter begins with a background section that provides an overview of the topic,
followed by a problem statement that outlines the problem and how this study will
address it. Other topics covered in this chapter include research objectives, research
questions based on the specific objectives, study significance, scope, and limitations,
as well as the research technique used in this study. The final section of this chapter
discusses the dissertation framework, including a brief description of the study. The
following chapter is devoted to a review of the literature.

22
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter critically examines and analyses an in-depth work done related to this
study’s area of interest by other researchers and summarizes the work. It entails
various concepts, empirical and theoretical reviews on the assessment of performance
of local civil contractors. This part of dissertation provides secondary data regarding
the study in hand. Literature review should help the researcher develop a theoretical
background of the study thus helps him to link up with what is proposed to be
examined in the end contribute towards the body of knowledge in a particular
profession. The information is obtained from books, journals, newspapers, magazines,
conference papers research reports and dictionary and from the website in the internet.

2.2 Definition of terminologies

2.2.1 Assessment
An assessment, is the act of making judgments in order to determine the exact value,
quality, or quantity of anything.

2.2.2 Project
Any project involving construction, erection, installation or alteration of any structure
or other works connected therewith, for public, commercial use or otherwise shall be
executed/carried out by a Registered Contractor. A project is an activity for which
money is spent in expectation of returns and which logically seems to lend itself to
planning, financing and implementing as a unit. Projects include large-scale, one-

23
time, unique products such as civil-engineering construction contracts, aerospace
programs, among others. They are customer-specific and often too large to be moved,
which practically dictates that project is the process of choice (Byron, 2006).

2.2.3 Civil Works Contractors

Construction of roads, bridges and highways and associated works, construction of
dams, irrigation systems and associated waterworks

2.2.4 Performance assessment

Performance essentially refers to how successfully a task, system or operation
functions. From this perspective. Performance assessment, also known as alternative
or authentic assessment, is a form of testing that requires students to perform a task
rather than select an answer from a ready-made list performance measurement is a
task required for assessing and improving characteristics and operations of a system,
process, or infrastructure ( karlfatisand konstatinos, 2021). “Performance
measurement is a process of assessing progress toward achieving predetermined
goals, including information on the efficiency with which resources are transformed
into goods and services (outputs), the quality of those outputs (how well they are
delivered to clients and the extent to which clients are satisfied) and outcomes (the
results of a program activity compared to its intended purpose), and the effectiveness
of government operations in terms of their specific contributions to program
objectives.

2.3 Small Scale Local Contractors in Tanzania

Every country's economy relies heavily on contractors. The value of small contractors
cannot be overstated: they are responsible for a large number of little jobs. Projects
that are relatively simple, dispersed, and often isolated but vital for economic
development and social upliftment in urban and rural areas are generally simple,
dispersed, and frequently isolated. It is critical that contractors are capable of
completing the construction items required for socioeconomic development in
sufficient quantities, within the specified time frame, at a reasonable and predictable
cost, with good quality, while also paying attention to the public's and workers' on-site

24
health and safety, and using materials, equipment, and methods that are least harmful
to the environment.

In developing countries, local contractors with such capabilities are in short supply.
The large number of small contractors in most of these countries, are ineffective and
inefficient. They also face several problems and constraints relating to their own
management, organizations and technical expertise, as well as the resources they
require, the regulations they should comply with and procedures for awarding and
administering their work.

According to [ CITATION CRB21 \l 1033 ] Any person who for reward or other
valuable consideration undertakes to carry out and complete any construction work
for another person, of any structure situated below, on or above the ground or water
bodies or other work connected therewith, where such person undertakes to do any
such works is known as a contractor. Contractors in Tanzania are classified into seven
classes. The classification was made in the bases of contractor’s capacity and
competence, to undertake construction projects. General Contractors i.e., Building,
Civil Works, Electrical and Mechanical contractors are classified in seven (7) classes
of registration whilst Specialist Contractors are classified in three (3) Classes. In all
cases Class One is the highest class of registration.[ CITATION CRB21 \l 1033 ] .
Small contractors - Class VI and Class VII, Medium contractors – Class III and Class
V and Large contractors – Class I and Class II. Therefore, small scale civil contractors
are contractors responsible for civil works, that is are responsible for most of the
regional road projects which include spot improvement works, periodic maintenance
of roads works, construction of road drain infrastructure and routine maintenance
works, grass cutting.

The construction industry is an important source of employment in both developed

and developing countries. It accounts for 7.6% of the total global employment
equivalent to about 230 million people. Construction typically contributes 5% to 9%
to GDP in developing countries and provides backward and forward linkages to the
rest of the economy[CITATION int20 \l 1033 ] . [ CITATION Tan16 \l 1033 ]
reported that. Tanzania construction contributed 13.6% to Tanzania’s GDP during
2015, reaching almost USD6b. In 2010 the sector accounted for only 7.8% of the

25
country’s GDP or USD1.6b. The growth rate of the Tanzanian construction sector was
4.3% in Q1 2016, compared to 23.2% in Q1 2015. According to the Tanzania
National Bureau of Statistics (NBS), the slowing of the growth rate was due to
reduced investments in construction activities. However, for the fiscal year 2016–
2017 the government of Tanzania has budgeted TZS5.47t equivalent to 25.4% of the
total budget, excluding public debt service, for infrastructure development projects.

The construction industry as a whole is largely made up of small firms, as shown on

the figure below. It provides entrepreneurial opportunities for many small businesses
and plays an important role in the distribution of income. Due to the considerable
variation in construction demand, contractors are at greater risk of changes in their
working environment. Small contractors often experience difficulties in managing
labour, materials, finance and equipment. They have limited capacity to influence the
business environment, including the regulatory framework of the industry.

Despite their dominance in the sector, these contractors are minor players in terms of
output. Although the characteristics of such businesses are well established, further
information is required. In a developing country, a small construction company is
frequently owned by a single person. The founder-proprietor-manager has a diverse
educational and professional background. Some have building experience and are
graduates or technicians with a diploma. Many are former tradespeople,
subcontractors who specialize in trade or labor-only work, or suppliers. But yet others
have no technical qualifications or practical experience in construction. Other
differences among them indicate that small contractors are heterogeneous, and vary
by size, skills, capabilities, resources and prospects.

Small contractors have some key strengths but also several significant weaknesses
and problems. By their nature, especially their flexibility and “mobility”, small
contractors can add depth, vitality, and resilience to a nation’s construction industry.
Their improvement would raise the skill levels, capability and productivity of the
local construction industry. Efforts to develop such enterprises are needed, as only
limited progress will be achieved if they were left to develop by themselves, given the
array of their internal problems and external constraints on their operations.

Whereas the large number of small-construction firms is not necessarily regrettable, in

developing countries, many of them have little prospect of growth and development.

26
There is a wide difference between the large firms and the small ones with regard to
turnover, resources and access to inputs. Owing to the differences among them, the
various sizes of contractors require different corporate initiatives as well as assistance
and support schemes, to develop.

Table 2.: Contractors Population

Contractors Class Contractor Population
Class I 100
Class II 60
Class III 154
Class IV 163
Class V 767
Class VI 1064
Class VII 2278
TOTAL 4587
Source; [ CITATION NBS13 \l 1033 ]

A total of 4,587 contractors were operating in 2010 of which 477 were large
contactors and 4,110 were small contactors. A total of 477 large contractors whereby
100 (21 percent) were in class one, 60 (12.6 percent) were in class two, 154 (32.3
percent) were in class three and 163 (34.2 percent) contractors were in class four. A
total of 4,110 were small contractors of which 767 (18.7 percent) were in class five,
1,064 (25.9 percent) were in class six, and 2,278 (55.4 percent) were in class
seven[ CITATION NBS13 \l 1033 ].

2.4 Performance Assessment

The construction industry is a project-oriented industry where each project is unique

and could be considered as a prototype, although a similar set of process stages is
involved in every project [ CITATION Weg01 \l 1033 ]. It remains that the focus of
performance measurement on the project more than the organizational level
[ CITATION Lov00 \l 1033 ].Performances of local contractors on projects are

27
assessed to ensure that deliverables are in line with specification Performance
assessment is fundamental to organizational improvement. The importance of
performance assessment has increased with the realization that to be successful in the
long-term requires meeting and measuring performance against all stakeholders' needs
including customers, consumers, employees, suppliers and local communities.

Cost, time, and quality are among factors that are considered while evaluating
construction projects. Different scholars have classified these three types of project
metrics as insufficient, arguing that other elements, such as the quality of relationships
among participants and flexibility, might influence customer satisfaction and so affect
the project's success or failure. They go on to say that what participants remember
after a project is not so much financial success or early completion as it is memories
of peace, goodwill, and trust, or, on the other hand, disagreements, distrust, and
conflict. Construction companies utilize performance assessment to assess the
financial and non-financial components of their projects, as well as compare and
contrast their results with those of others, in order to improve program efficiency and
effectiveness. Performance measurements are required to track, forecast, and
eventually control the factors that are critical to a project's success. The subject of
performance measurement or assessment has become a matter of concern to several
countries at different levels of socio-economic development which have realized the
need to improve the performance of the construction industry[CITATION reg13 \l
1033 ].

Project assessment and performance is an integral part of every successful

construction work in the country Tanzania. Performance management and
performance assessment can help government agencies develop a continuous system
of improvement.[ CITATION reg13 \l 1033 ] said, Consistent performance measures
can help reveal when a program or service is not being delivered properly or
effectively, which can result in insufficient services to the public. It is important for
government agencies to be receptive to introducing performance measures to become
more focused on outputs and outcomes of a program. Performance measurements can
also result in positive behavioral change, Local contractors should embrace the
concept of continuous improvement and be willing to be measured (benchmarked)
against outcomes.

28
Construction project development involves numerous parties, various processes,
different phases and stages of work and a great deal of input from both the public and
private sectors, with the major aim being to bring the project to a successful
conclusion. The level of success. In carrying out construction project development
activities will depend heavily on the quality of the managerial, financial, technical and
organizational performance of the respective parties, while taking into consideration
the associated risk management, the business environment, and economic and
political stability. Performance assessment can be achieved by using financial
measures and non-financial measures. Traditionally performance of contractors was
assessed or measured by focusing on financial measures which was later criticized by
different scholars and researchers.

These measures have been justifiably criticized by a number of researchers, in that

they report on the results and decisions made in the past and therefore are of little use
in improving current performance. Limiting performance measures to financial (and
specifically to profit alone) is outdated because the indicators are themselves derived
from cost accounting information, which is often based on outdated and arbitrary
principles. Also ( katic and Bevanda, 2019) argued that This limited approach of
measurement the performance success is not sufficient because it shows the results of
decisions made in paste, have no impact on improving current performance and don’t
show causes of such results. This section gives some of the traditional indicators
limitations as presented by different performance measurement research pioneers.
Table 2.: Limitation of Financial Measures by Different Researchers
Researcher Limitation
Neely (1999) Encourage short-termism
Lack strategic focus and fail to provide data on
quality, responsiveness
and flexibility
Encourage local optimization; and
Do not encourage continuous improvement
Galanin and Based on management accounting system
Noble, (1997) Lagging metrics: they are results of past
decisions
Corporate strategy: they do not incorporate
strategy
Inflexible: they have predetermined format
Love and Holt Over-rely on financial aspects
(2000) (Clarke and Clegg, 1999);
Are retrospective
(and hence always to some extent out- of- date)
Do not accurately reflect the interest of
stakeholders
(Kaplan and Norton, 1996; Mbugua et al, 1999);

29
This paper will outlay the assessment of performance of indigenous small civil
contractors by using performance indicators which will assess the effectiveness and
efficiency of this contractors in terms of construction process and client’s satisfaction.
Construction process indicators are termed as leading indicators while client’s
satisfaction indicators are lagging indicators.

Leading Indicators are indicators that are used to give proactive information on the
quality and capability of inputs in terms of physical and human resources, processes
and operations that helps to explain how and why particular output or outcome of the
firm’s activity, or process has been achieved. By using these indicators failures or
shortcomings can be seen and addressed before they impinge on the bottom line; and
Lagging indicators are those indicators which give information that reflect directly or
indirectly the extent to which an output or outcome has been achieved. (M atiko ,
2012) said; It was however, further established that there are lagging indicators which
also were perceived to have greater potential for improving performance. This is
supported by other researchers that a performance measurement system which
balances between leading and lagging indicators has greater potential for improving
performance of business organisations. This literature will discuss the non-financial
indicators in two dimension of performance assessment that is construction process
and client’s satisfaction criteria.[CITATION coo02 \l 1033 ] who noted that the
dimensions of project success refer to efficiency and effective measures where
efficiency measures correspond to strong management and internal organisational
structures which means getting the project out on time, on budget 14 and meeting a
quality threshold. On the hand, the effective measures refer to the achievement of
objectives, users' satisfaction and the use of the project

2.4.1 Construction process performance assessment

Processes are the means of delivering value to stakeholders. The measures of process
performance assess the ability of the organization processes to deliver value to clients
according to their requirements. It is an important measurement because it assists the
company to know their processes well by identifying weakness and strengths of the
processes in delivering value to all stakeholders. The following indicators are
developed to lead the companies to choose indicators according to their operations
and capabilities.[ CITATION Mkr16 \l 1033 ] Said Construction processes are

30
especially prone to risk. Uncertainty has become one of the major factors affecting
project execution and ultimate success

2.4.1.1 Indicators for construction process performance

I. Schedule stability
Project schedule set of starting and finishing times of project activities. A schedule
simply defining start and finishing times neglecting the availability of resources does
not always present a feasible solution for project execution [ CITATION Kff09 \l
1033 ]. Project schedule establishes a timeline for delivering the project and most
importantly, the project activities and their respective inter-relationship. [ CITATION
Moo12 \l 1033 ] posits that contractors frequently develop detailed schedules after or
before contract award.

They submit these schedules for review and approval to the client or his
representatives. The approved schedules will then be utilized to create the project's
schedule baselines, which will be used to manage the project in the future. Tracking,
progress reporting, and the administration of construction disputes and claims are all
part of the management process. It is common knowledge that project activities are
fraught with risk, which can result in many schedule disruptions during project
execution. As a result, since the introduction of the first PERT, the random character
of activity durations has been the topic of various research endeavours. The issues of
project management under uncertainty and risk management have recently received
growing attention. Nevertheless, the development of a pre-computed baseline
schedule (preschedule) with the objective of assuring stability in the start times of the
activities, rather than the minimization of the expected project duration or some other
regular objective function, has been mostly overlooked so far[ CITATION Bar05 \l
1033 ].

Construction schedules are affected by weather, production logistics, design scope

changes, site conditions, soil properties, material delivery time, information request
and information release problems, and equipment efficiency, all of which have an
impact on contractor performance during work execution. [ CITATION Ökm08 \l
1033 ] said, schedules need to be evaluated to ensure a reduced effect of these risks,
uncertainties, unexpected situations, deviations, and surprises That highly effect the
performance of this contractors. That being said it is important that the schedule
remains stable and active throughout the construction process[CITATION Efo19 \l

31
1033 ]. This study will assess the achievement of schedule stability on small civil
contractor in execution of road improvement and rehabilitation works. This indicator
assesses the percentage at which the processes have conformed to the schedule.
Number of schedule changes expressed as the percentage of all planned schedule in
that process during a given period of time.

The schedule can also be subjected to change as a result of client orders, or in other
words, client-oriented variations that cause schedule changes. A change order is a
written order to the contractor signed by the owner and issued after the contract has
been completed, authorizing a change in the work or a contract sum or time
adjustment. Changes in designs and contract agreements almost always result in a
change in the contract price or timeline. Most construction projects may experience
changes throughout construction, and change orders will be issued to amend or
modify the initial design or scope of work. The corrections or modifications are
carried out for many reasons including changes in scope made by the client and as a
result of change requests made by the consultant due to design errors or new findings.
Change orders strain the relationships of owners, engineers, contractors,
subcontractors, and others involved in the construction process, also adding cost and
schedule delay[CITATION Wal61 \l 1033 ].He also concluded that change of project
scope due to owner requirements is the most important cause and cost overruns are
the most important impacts of change orders in those projects. Due to the schedule
instability, underperformance of this contractors is inevitable That being said the
extent of change orders will be assessed to the examine their performance.

II. Delivery Reliability

Delivery reliability is the ability to deliver products according to promised schedule,
notwithstanding whether the firm may be competing on the least costly or the highest
quality product[ CITATION Mak02 \l 1033 ]. In addition to defining delivery speed
as a comparison between the customer's projected lead time and the lead time offered
by the manufacturer, delivery dependability measures the performance of actual lead
times in relation to quoted lead times. It is displayed as the Number of times the
process has delivered on time in a specific period of time. It was created to measure
the reliability of the process to deliver services to its clients on time.

Construction product delivery through projects has become a source of debate and
worry, particularly in light of contract time overruns, which are a typical occurrence

32
in the construction business. Building completion time is important for two reasons:
construction projects are capital commodities that must be used by others, and clients
want to recoup their investment and start earning money from their construction
investment. The time dimension in the construction sector is all about how long the
customers have to wait before receiving their product.[ CITATION LWG05 \l 1033 ]
rightly observes that performance of a contractor in relation to time is indicated by
completion period, start on site predictability, regular submission of payment invoices
or statements, and claims for extension of time.

III. Quality Performance

The degree of achieving construction quality of "conformance to specification" is

defined as quality performance. In the construction projects, work progress is
managed with process factors while the monitoring is based on the result factors. The
managers on the lower level are interested in the process factors, while the upper
management places more emphasis on the measures showing results. In this sense,
quality performance can be regarded as the process measures, compared to the
financial measures mainly demonstrating the cost status in the construction
project[ CITATION san06 \l 1033 ]. This measures the ability of the process to
deliver quality services/products to its customers. Percentage of products/services
which are 100%fit for purpose; or Percentage of products/services delivered to
customers that are defect free. As far as this study this measure will describe the
extent at which projects are 100% fit for the set purpose over the set time

IV. Resource Availability

Assesses whether there are sufficient resources available to fulfil the resource
requirement of the process. It is measured by considering the Percentage of occasions
that resources are available when required; Percentage of occasions that critical
resources are available when required.

V. Skill/ Coverage Requirement

33
This measures the average number of people with key skills for a given job it assesses
the extent of number of employees or staff per identified skill, it can also be measured
as Percentage of activities for which insufficient skills cover is available.

2.4.2 Clients Satisfaction Performance Assessment

Contractor performance is usually considered as a significant contributor to client
satisfaction [ CITATION Fir10 \l 1033 ]. Product outcome is one of the Criteria for
performance Excellence. These are measures and indicators of product and service
performance that have strong correlation with customer satisfaction (Evans and
Lindsay 2011). When the customers of a product keep complaining about the outcome
of a project then the producer or the service provider will have to rethink about the
product or service[ CITATION reg13 \l 1033 ]. The local contractors in Tanzania will
have to evaluate their work performance so that the perception of shoddy work being
associated to them will be erased and their product outcomes will satisfy the
customers. The construction industry is mainly project based and construction
projects are mostly one-off in nature Clients everywhere will always want to get
better value for money, and the construction industry is not an exception. This implies
that it would be in the best interest of the industry to embrace new ways of working in
order to remain competitive and to meet the needs of its ever-demanding clients.
Customer satisfaction can be used for evaluation of quality and ultimately for
assessment of the success of a company's quality improvement programme
[ CITATION sam04 \l 1033 ] . The purpose of this measure is to establish a
customer's or client's overall degree of satisfaction with a company's service during
small contractor contracts. Customers must be satisfied in order to repurchase or
suggest the organization/company to others; hence this is an important measure. For
this project, it was proposed that the following metrics be used to track customer
satisfaction on projects under the supervision of a small civil local contractor.

Parameters for Client’s Satisfaction

a) Dispute or Claims

Construction Claim can be defined as a request by either party to the contract, usually
the Contractor, for compensation for damages caused by failure of the other party to
fulfil his part of obligations as specified in the contract. The compensation is usually
in the form of the additional payment or an extension of time (EOT). Construction

34
claims are measured by many project participants to be one of the most worrying and
unpleasant events of a project. The high competition has forced contractors to submit
projects with minimum profits in order to stay in business. In addition to their
multiparty nature, projects are becoming more complex and riskier[ CITATION
Abh14 \l 1033 ]. This has placed an added burden on contractors to construct
increasingly sophisticated and risky projects with less resources and profits. Under
these circumstances, it is not shocking that the number of claims within the
construction industry continues to increase[CITATION Abh14 \l 1033 ]. This will
assess the extent at which this small contractor will claim for extension of time (EOT)
or number of Dispute settled.

b) Extent of reworks in construction

Rework is defined as the unnecessary effort of redoing an activity that was

inaccurately done the first time[ CITATION lov04 \l 1033 ]. Rework is a major
contributor to time wastage and schedule overruns which eventually impact on cost,
resources and quality. [ CITATION lov04 \l 1033 ] suggested that rework typically
increased total project costs by 12.6%. The actual costs could be substantially higher,
however, because these findings did not account for schedule delays, litigation costs
and other intangible costs of poor quality. [ CITATION lov04 \l 1033 ] declared that
construction professionals do recognize that rework contributes significantly to poor
project performance. Being that said, this paper will assess the extent of reworks in
rehabilitation works.

c) Information coordination between the clients and contractor

Coordination of information that positively affects customers perception of

organization and help them make decisions about organization. It is the average time
taken to respond to client’s query

d) Resource optimization and management

Resource management is the process of planning and allocating resources required to

meet project objective .Proper resource management helps to
keep projects on schedule by ensuring that the demand of project resources is met and
also maximizes the utilization resources from project to. Without proper resource
management, projects can fall behind schedule, or can become unprofitable. The
objective is to ensure the adequate and timely supply of resources, whilst at the same

35
time maximising the utilisation of resources between projects .Optimization of
resource allocation, this assesses whether there have been allocated enough and
appropriate resources to meet the quality and workmanship requirements. It Can Be
Other Wise Assessed by Examining the Cost of reworks resulting out of poor resource
allocation expressed as the total cost of rework (matiko2012).

The most method of resource optimization as discussed by [ CITATION int20 \l

1033 ]is the labour-based technology in construction projects. A local resource-based
approach applies a cost-effective use of local skills, enterprises, labour and materials
in the infrastructure delivery process. The process optimizes the social and economic
impact of investments in infrastructure by ensuring that these investments are
channelled through the local economy, so creating job opportunities and stimulating
local markets, entrepreneurship and industry while safeguarding cost effectiveness,
quality and sustainable asset delivery.

2.5. Improving the performance of small-scale local contractors in Tanzania.

There is the need for more information, more research and further developmental
effort with regard to small contractors in developing countries for many reasons:

a) There are a lot of unmet demands, and the entire delivery system has to be
rebuilt and upgraded to increase its performance:
b) Small contractors meet the construction needs of the poorer sections of the
population, and upgrading them would benefit a lot of people:
c) Only small companies are capable and willing to take on small projects in
rural areas;
d) The quality of small-construction companies' work needs to be improved in
order for them to provide better value for clients' money;
e) Small contractors can help reduce reliance on imported inputs with improved
expertise.

The main aim of small-contractor development and to improve their performance is to

seek the emergence of sufficient numbers of such companies and their upgrading to
enable them to effectively compete in the open market for jobs that they are capable

36
of undertaking, and systematically and continuously grow in size and
capability[ CITATION Hab96 \l 1033 ].Small civil contractors require technical and
managerial abilities, as well as material, financial, and other resources, as well as a
favorable operating environment. Experience in the manufacturing sector suggests
that a combination of support, incentives, and direct assistance can help small
businesses improve their skills. However, attempts to do so in the construction
industry have largely failed. While the components of "an appropriate strategy" for
promoting the building industry are well understood, a viable method of putting the
strategy into action remains difficult.

The problems that small contractors face in specific countries have been investigated.
Small-contractor development is also studied at the global and regional levels. The
majority of writers' solutions were similar. Small-contractor development is difficult,
according to the literature, and necessitates a wide range of policies focused not only
on the businesses and their owners, but also on their resource demands, the rest of the
industry with whom they collaborate, and their working environment. Many of the
suggestions offered by previous authors are aimed towards governments. However,
many other parties have a role to play. These include contractors themselves, other
construction practitioners, professional institutions and trade associations, and
international organizations.

At initially, indirect measures to improve the performance of small and medium-sized

local contractors were taken. More direct assistance and support programs were set
aside for the manufacturing sector's clearly more productive units. Small-construction
company owners were encouraged to join together in order to form larger entities.
Contractors were encouraged to increase their technical expertise and to run their
businesses more properly by hiring skilled employees. They were urged to pursue
technical and/or managerial education. These indirect tactics applied to businesses in
allied industries as well. Loans were encouraged to be extended by financial
institutions to contractors. Materials suppliers were implored to offer them better
trading terms. These initiatives achieved little. A major reason for this lack of
progress was the failure to address the problems at their roots

The prominent measures includes; long term financing plan, establishing an efficient
financial planning system, training and education of their workers, learn
37
entrepreneurship skills, acquire plants and equipment, develop long term strategy,
introduce policies that retain workers through establishing workers motivation
schemes, improve quality of workmanship and products through more strict
supervision and establishment of quality control systems[CITATION fal14 \l 1033 ].

Other measures include the use of automated building processes and sustainable
construction materials, as well as the installation of good materials management
practices on site and a good marketing strategy based on keeping good and honest
relationships with clients. less strict prequalification procedure, adoption of more
acceptable contractor selection method, adequate compensation, and fast payment for
authorized work to small scale construction enterprises by government and other
construction clients Others include the abolition of multiple taxation for small
construction enterprises, as well as research and development-based support for
established construction firms, implementation of economic policies that support
SMEs development such as; implement contract conditions that are favourable to
SMEs development, implement policies that minimize currency fluctuation and
reduction of interest rates by commercial banks. The objective of this section is to
present in a comprehensive manner the small-contractor performance development
issue. The objective of this section is to present in a comprehensive manner the
recommendation on improving the performance of small contractors to attain schedule
stability effective delivery reliability and client satisfaction

2.5.1 Employment of contingency plan in scheduling.

Schedule contingency is defined as an amount of time included in (added to) the
project or program schedule to mitigate (dampen/ buffer) the effects of risks or
uncertainties identified or associated with specific elements of the project
schedule[CITATION Ted14 \l 1033 ] Contractors can use contingency
scheduling to calculate contingency costs. “Amount added to an estimate to
accommodate for things, conditions, or events whose existence is uncertain and which
experience suggests would likely result in higher costs,” says Cost Contingency. It
intends to cover Incomplete designs, Construction disturbances (accidents or
breakdowns), Changes in market conditions, Regulatory risk, Estimating inaccuracies,
Technological changes, Omissions, Abnormal construction and start-up problems,
Unforeseen safety requirements, and Unanticipated price changes.

38
. 2.5.2. Invest in training, technical knowledge and work force development
Human resource development strategies play a critical role in order to have a
successful organization.[CITATION Ami11 \l 1033 ] . The Oxford English Dictionary
defines training as the action of teaching a person a practical skill or type of behaviour
in any profession, art or craft. The HRD definitions do not also differ significantly. It
is generally defined as a planned and systematic effort to modify or develop
knowledge, skills, behaviour and attitudes through learning experiences, to achieve
effective performance in an activity or a range of activities[ CITATION TNG95 \l
1033 ]. According to the research by [ CITATION Ami11 \l 1033 ] , Contractors who
did not have any integrated training programs, their companies faced with many
problems and barriers for employing effective training policies. Some of their barriers
were Variations in the number, size and type of projects undertaken by the
companies; High expenses of construction training courses; Dynamic and complex
environment of the industry; Financial problems faced by the companies; Short term
contract of most of the workers; Large number and various types of construction
learning points; Low knowledge and lack of incentive among the workers for training;
Time-consuming; and Little attention of client to the importance of skilled labour in
the projects.

2.5.3 Human resource management

The process of managing people within an organization is known as human resource

management (HRM). HRM in construction is largely concerned with ensuring that a
project has enough human resources, with the appropriate skill sets and experience, to
finish it successfully. In order to establish a project's human resource requirements,
HR managers must be able to define and document project roles and responsibilities,
as well as develop a plan defining the end-to-end processes that will be required on
the project (or series of projects).2.5.4 Appropriate financial mechanism to improve
cash flow and liquidity of this contractor.

[CITATION Kik18 \l 1033 ] reported that Local contractors cannot afford to tender
for projects that require high levels of bid security and annual turnover because of
their financial base. Small-scale contractors in Nigeria, as small business owners, face
challenges accessing external sources of capital financing. Inadequate sources of
working capital is one of the major reasons for poor business performance and failure.

39
Small-scale contractors or builders face the challenge of not having sufficient funds to
carry out construction activities, which contributes to poor operational performance
(Gambo, Said, & Ismail, 2016).

Inadequate lending capacity from creditors results in the disruption of the small-scale
contractors’ ability to find access to external financial support from financial
institutions. Similarly, managers at SMEs may experience severe pressure from
lenders due to excessive regulations on loan applications for small-scale contractors,
improved business performance involves having to depend on executing smaller
projects from the government, private individuals, or subcontracted jobs from their
primary competition. Small-scale contractors rely mostly on trade credit as a source of
finance for their daily cash flow because it is difficult for them to qualify for business
capital compared to their more established competitors (Donkor et al., 2014). High
lending interest rates by financial institutions, stringent conditions to access capital,
stringent requirements for obtaining bonds, and high taxes constitute obstacles to the
growth and profitability of small-scale builders (Kulemeka, Kululanga, & Morton,
2015). That being said the Government of Tanzania should ensure policies that reduce
interest, and high levies of the financial institution. Also, through the road authorities
the government should ensure a speedy payment to this contractor to stabilize their
cash flow

CHAPTER 3

DATA COLLECTION AND ANALYSIS

3.1 Introduction
Kombo and Tromp (2011) term data collection as a process of gathering information
and data as means to prove facts. Whereas, Data analysis is referred to as a
computation and establishment of patterns of relationship among data obtained
through questionnaires by the researcher [ CITATION Kot11 \l 1033 ]. Generally, the
chapter aims at presenting the data collected, how findings were achieved as well as
an in-depth analysis of the performance of small-scale contractors in execution of

40
civil works; and furtherly aimed at determining the possible solutions/ or measures to
improve their performance.

3.2 Data Collection

Data collection as prior defined; Here in, primary data and secondary data were
collected; primary data was collected via responses from structured questionnaire
addressed to clients, small local contractors and located in Dar es salaam meanwhile,
secondary data was collected through different publications and literatures from
libraries. 10 questionnaires were physically handled to the Tan roads staffs and all
questionnaires distributed were handled back making 100% response rate. 78
questionnaires were distributed to small contractors .56 questionnaires were
subsequently collected making up an average response rate of 71%.

There are four main reasons for the small number of contractors under scrutiny.
Tanzania has closed some contractors as a result of the country's current difficult
economic position; some contractors have relocated to other locations; and others
have diversified their businesses from construction to other areas such as agriculture
as a result of the current economic climate. The closure of such construction
enterprises is not limited to poor countries; rather, it is a worldwide phenomenon
[CITATION Chi20 \l 1033 ] .The fourth reason is that some of small contractors have
not secured works due to financial and economic restrictions.

3.3 Data Analysis

The obtained data and information were then processed from raw and complex into
fine sections that were tabulated and researched in order to establish an existing
correlation of the facts and obtain findings for specific talks of the outcomes. The data
was analyzed using the IBM statistical package for social sciences (SPSS) computer
programmer version 25.0.0, as with other questionnaire-based surveys for
performance assessment studies. The one-sample t-tests and descriptive statistics such
as frequencies and measures of central tendencies were used in the data analysis.

3.4 Respondents information

41
3.4.1 Period with the organization of the respondents
Client staff representatives were asked to state how long they had been with the
organization. 50 percent of respondents have less than 5 years of experience, while 50
percent have 5 to 10 years of experience. It was also discovered that no answer had
more than 10 years of experience with the company, which is important to research in
order to acquire a broader background on the variables. This means that, all other
things being equal, data obtained from respondents will provide a true representation
of the performance of small civil contractors' work in terms of projects in terms of
customer satisfaction.
Table 3.:Respondents experience in years with the organization
Frequency Percent Valid Percent Cumulative Percent
Below 5 years 5 50.0 50.0 50.0
5-10 years 5 50.0 50.0 100.0
Total 10 100.0 100.0

3.4.2 Professional positions of the Respondents

In this study total number of 10 respondents from within the organization were asked
to answer the questionnaire. Table below shows the frequency of occurrence of this
profession on this study. Table below account that 40%(n=4) were site engineers,
20%(n=2) are the site technicians, 20%(n=2) project managers and 20%(n=2) were
the planning engineer.

Table 3.: Professional position within the organization

Frequency Percent Valid Percent Cumulative Percent
Site technician 2 20.0 20.0 20.0
Site Engineer 4 40.0 40.0 60.0
Planning engineers 2 20.0 20.0 80.0
project manager 2 20.0 20.0 100.0
Total 10 100.0 100.0
3.5 Clients Satisfaction Assessment
Respondents were asked to indicate the extent of different performance measures
represented by the Linkert’s scale as previously seen.

3.5.1 Extent of Disputes or Claim During Contractual Period

Respondents in Tan Road organization were asked to provide their own evaluation of
the amount or extent of disputes or claims during the contractual time of the project in
order to assess the local contractor's performance in relation to the various projects

42
granted to them. Respondents were asked to tick whether the frequency of disputes or
claims is high or low on a Likert scale. This was shown by the research. 50 percent of
respondents (n=5) said the occurrence is moderate, followed by 20% (n=2) who said
the extent is high, and 10% who said it is low. see figure below
Table 3.: Extent of occurrence of disputes and claims
Frequency Percent Valid Percent Cumulative Percent
Very low 1 10.0 10.0 10.0
Low 1 10.0 10.0 20.0
moderate 5 50.0 50.0 70.0
High 2 20.0 20.0 90.0
very high 1 10.0 10.0 100.0
Total 10 100.0 100.0

3.5.2 Extent of Reworks Done due to Engineers/ Architects’ Dissatisfaction

In order to analyze the local contractors' performance in regard to the various projects
granted to them, respondents in Tan Road Organization were requested to offer their
own evaluation of the quantity or extent of disputes or claims during the contractual
duration of the project. On a Likert scale, respondents were asked to mark whether the
frequency of reworks is high or low.

From table 3.4 below 5 respondents (50%) indicated that the extent of reworks to be
redone by this contractor due to engineer’s dissatisfaction is high .40% of the
respondents said it is moderate whilst 10% say it is very high. This proves the
underperformance of this contractors while executing civil works and prove
dissatisfactions from the client

Table 3.: Frequency of Occurrence of Works Redone

Frequency Percent Valid Percent Cumulative Percent
moderate 4 40.0 40.0 40.0
High 5 50.0 50.0 90.0
very high 1 10.0 10.0 100.0
Total 10 100.0 100.0

3.5.3 Extent of Occurrence of Defects Outstanding at Practical Completion of the

Project
In order find out the satisfaction level of the clients in civil works executed by small civil
contractors, the respondents were asked to state the occurrence of defects outstanding at
practical completion of the projects. when asked 30% of the respondents said it is
moderate and 30 percent also said the rate of occurrence is low.

43
Table 3.:Frequency of Occurrence of Defects at Practical Completion

Frequency Percent Valid Percent Cumulative Percent

Very low 2 20.0 20.0 20.0
low 3 30.0 30.0 50.0
moderate 3 30.0 30.0 80.0
high 2 20.0 20.0 100.0
Total 10 100.0 100.0

3.5.3 Information Coordination and Communication

This is the average amount of time it takes for contractors to react to a client's request.
This will reveal whether the clients are satisfied with the contractors' reaction in
meeting their needs. According to the study, 40 percent (n=4) of respondents (the
greatest number) believe that SCC takes a long time to respond to client requests,
implying that information coordination is inadequate. In addition, 30% of respondents
indicated that information coordination was moderate.

Table 3.: Extent of Information Miscoordination

Frequency Percent Valid Percent Cumulative Percent
Valid low 3 30.0 30.0 30.0
moderate 3 30.0 30.0 60.0
high 4 40.0 40.0 100.0
Total 10 100.0 100.0

3.5.4 Extent of Quality of Projects After Defect Liability Period

Quality is, of course, the most significant criterion for gauging performance and client
happiness when examining client satisfaction. At the end of the DLP, this study
should describe the quality of civil projects completed by small contractors.
According to the tables below, 50% of respondents (n=5) rank the quality as
moderate, while 30% rate it as high. After the DLP, this can be judged to be of
satisfactory quality.

Table 3. : Extent of Quality After DLP

Frequency Percent Valid Percent Cumulative Percent
Low 2 20.0 20.0 20.0
moderate 5 50.0 50.0 70.0
High 3 30.0 30.0 100.0
Total 10 100.0 100.0

44
3.5.5 Performance of small contractors in resource optimization and
management

Workers were asked if small contractors optimize available resources during

construction to determine the validity of information provided by workers in the Road
Authority (with regard to the competency of resource optimization and management
by small contractors). Five out of ten respondents said that their performance is low,
while four (40 percent) said that their performance is good. According to the findings,
resource optimization and management are not up to par. Both the clients and the
contractor will incur costs as a result of this. Clients, on the other hand, are
dissatisfied with this contractor's performance in resource optimization and
management.

Table 3.: Extent of Resource Optimization and Management

Frequency Percent Valid Percent Cumulative Percent
Low 5 50.0 50.0 50.0
moderate 4 40.0 40.0 90.0
High 1 10.0 10.0 100.0
Total 10 100.0 100.0

3.5.6 Extent of Budget Adherence

This study shows whether small scale local contractors comply with the agreed budget
throughout the construction process. Examination of results reveals that 70 % said it
was moderate ,20%(n=2) said the extents is high whilst 1 respondent assessed that it
was low. Henceforth, the performance of small civil contractors is satisfying.

Table 3.: Extent of Budget Adherence

Frequency Percent Valid Percent Cumulative Percent
Low 1 10.0 10.0 10.0
moderate 7 70.0 70.0 80.0
High 2 20.0 20.0 100.0
Total 10 100.0 100.0

3.5.7 Extent of Skilled Workforce or Staff of Small-Scale Contractors

Clients' staffs were asked to state whether small scale contractors have enough skilled
individuals in order to verify the validity of information provided by workers (in

45
terms of the competency of the labor they use). According to the survey, small-scale
civil contractors do not have enough trained personnel. The biggest percentage of
respondents (n=4) indicated the extent is modest, while 30% said the extent is
extremely low. ‘Most small-scale firms hire staffs with poor education levels and
experience,' said one of the respondents. This has a direct impact on the project's
performance, resulting in low client satisfaction.
Table 3.: The use of skilled workforce by the contractor
Frequency Percent Valid Percent Cumulative Percent
Very low 3 30.0 30.0 30.0
Low 4 40.0 40.0 70.0
moderate 3 30.0 30.0 100.0
Total 10 100.0 100.0

3.5.8 Measures to Improve the Performance of Small-Scale Civil

Contractors. (Client’s Perception)
Table 3.: Measures to Improve Performance of Small Contractors in Tanzania
Measures N Minimum Maximum Mean Std. Deviation
Communication improvement 10 3.00 5.00 4.0000 0.66667
between the clients and the small
contractors
Resource optimization by this 10 3.00 5.00 4.0000 0.66667
contractor to reduce cost in
construction
Human resource management and 10 4.00 5.00 4.3000 0.48305
work force development by the
contractors to reduce the extent of
defect
Improve planning and scheduling 10 3.00 5.00 4.3000 0.82327
during design process to reduce
EOT (extension of time) that affect
project delivery
High supervision/ improving 10 3.00 5.00 4.2000 0.63246
project monitoring of works by the
client’s staff
Appropriate financial mechanism 10 4.00 5.00 4.7000 0.48305
to improve cash flow and liquidity
of this contractor
Quality management system by the 10 3.00 5.00 4.1000 0.56765
contractors
Valid N (listwise) 10

Examination of the results reveals that Appropriate financial mechanism to improve

cash flow and liquidity of this contractor was the highest ranked measures to improve
performance of small-scale contractors based on the overall sample mean of 4.70. The
lower value of the standard deviation of 0.4805 further reinforces the consensus
among respondents in ranking this performance improvement measure highly. The

46
second overall ranked performance improvement measures were Human resource
management and work force development by the contractors to reduce the extent of
defect (mean = 4.3) was ranked second overall. The lower value of the standard
deviation of 0.4805 further reinforces the consensus among respondents.The third
overall ranked critical factor was that of Improve planning and scheduling during
design process to reduce EOT (extension of time) that affect project delivery (mean =
4.3). in the lower ranks, Resource optimization by this contractor to reduce cost in
construction and Communication improvement between the clients and the small
contractors was ranked last with lowest mean of 4 which indicates that isles reliable
to be used as performance improvement measures for this contractor. Despite of the
ranking, all measures were found to be statistically significant.

Contractors Questionnaire Analysis

3.6 General Information of Respondents

3.6.1 Period with the Organization
Contractors were asked to state their experience (in years) with the organization they
are working.51.7%(n=30) were found to have experience below five years whilst 48%
(n=28) which have experience with 5 to 10 years.

Table 3.: Period with the Organization

Frequency Percent Valid Percent Cumulative Percent
Valid below 5 years 30 51.7 54.5 54.5
5-10 years 28 48.3 48.3 100
Total 58 100.0 100.0

3.6.2 Position in the organization

Respondents were asked to indicate their position within the organization. the study
shows that 36.2%(n=21) of the respondents were site engineers, followed by quantity
surveyors with 31%(n=18), technician 12% (n=7) of the respondents.

Table 3.: Position within the Organization

Frequency Percent Valid Percent Cumulative Percent
Valid site engineer 21 36.2 36.2 36.2
quantity surveyor 18 31.0 31.0 67.2
technician 12 20.7 20.7 87.9
project manager 7 12.1 12.1 100.0
Total 58 100.0 100.0

47
3.6.2 Number of projects

Respondents were also asked to indicate the number of projects of which small
contractors have participated. Result shows that 64% (n=37) have executed projects
with range (1-10projects).

Table 3.: Number of Projects Executed

Frequency Percent Valid Percent Cumulative Percent
Valid 1-10 projects 37 63.7 63.7 63.7
10-20projects 21 36.3 36.3 100.0
Total 58 100.0 100.0

Frequency Percent Valid Percent Cumulative Percent

Valid low 3 5.2 5.2 5.2
moderate 20 34.5 34.5 39.7
high 33 56.9 56.9 96.6
very high 2 3.4 3.4 100.0
Total 58 100.0 100.0

Respondents were asked to describe the extent of schedule changes due to difference
of the actual site condition and that given in the document. The examination of result
revealed that the extent of hanged of schedule is high. 57%(n=33) said that the extent
is high ,33%(n=19) said it was moderate whilst 8.6%(n=5) assessed that the extent is
very high. the overall assessment indicate that schedules are highly subjected to
changes, henceforth poor performance by this contractor.

Table 3.: Extent of Schedule Instability due to Different Site Condition

Frequency Percent Valid Percent Cumulative Percent
Valid low 1 1.7 1.7 1.7
moderate 19 32.8 32.8 34.5
high 33 56.9 56.9 91.4
very high 5 8.6 8.6 100.0
Total 58 100.0 100.0

3.7.3 Extent Client- Initiated Variation Occur During Construction

Respondents were asked to rate the extent of occurrence of client-initiated variation,

result evaluation suggest that the extent of occurrence is very high. this means that
small contractors are subjected to client’s variation at a great extent, Examination of
the result revealed that 31% (n=18) said the extent is very high and high, 32.8%
(n=19) say the extent is moderate whilst 3% and 1.7% of the respondents say it is low
and very low respectively.

48
Table 3. : Extent of Client-Initiated Variation During Construction

Frequency Percent Valid Percent Cumulative Percent

Valid very low 1 1.7 1.7 1.7
low 2 3.4 3.4 5.2
moderate 19 32.8 32.8 37.9
high 18 31.0 31.0 69.0
very high 18 31.0 31.0 100.0
Total 58 100.0 100.0

3.5.3 Extent at Which Projects Schedules Comply with Contractual

Agreement

Most of the respondents suggest that this parameter is highly achieved, with 50%
(n=29) say the extent of compliance is high 12 % and 34% of respondents suggest
that the extent is high and moderate respectively. This analysis concludes that
small contractors during tendering prepare schedules that comply with the
agreement
Table 3.: Projects Schedules Compliance to the Contract
Frequency Percent Valid Percent Cumulative Percent
Valid low 2 3.4 3.4 3.4
moderate 20 34.5 34.5 37.9
high 29 50.0 50.0 87.9
very high 7 12.1 12.1 100.0
Total 58 100.0 100.0

3.7.5 Extent of Coordination and Communication Between Project Parties

All respondents voted that extent of coordination and communication is between

being moderate and very high. This justifies that coordination between project parties
and information flow is very good, this data also suggests that average time taken by
this contractor to respond to client’s requirement is low.55%(n=32) of the respondents
assessed that the coordination and communication between parties is high, 41%(n=24)
said the extent is moderate while 3.4 % said it was high.

Table 3.: Coordination and Communication Between Projects

Frequency Percent Valid Percent Cumulative Percent
Valid moderate 24 41.4 41.4 41.4
high 32 55.2 55.2 96.6
very high 2 3.4 3.4 100.0
Total 58 100.0 100.0

49
3.7.6 Extent of Unrealistic Baseline Schedule Prepared by this Contractor

For a definite project schedule, preparation of baseline schedule in inevitable .it helps
to prepare and modify projects schedules. that being said, its cruciality is of
importance. Respondents assessed that; the prepared baseline schedule are unrealistic
suggesting that there is a high possibility of schedule changes during construction.
The study revealed that,48 % (n=28) of the respondents assessed that the extent of
unrealistic baseline schedule is high ,17% (n=10) said the extent is very high where as
19% of the respondent argue that the extent for occurrence is moderate 15% said the
extent is low.

Table 3.: Extent of Unrealistic Baseline Schedule

Frequency Percent Valid Percent Cumulative Percent
Valid low 9 15.5 15.5 15.5
moderate 11 19.0 19.0 34.5
high 28 48.3 48.3 82.8
very high 10 17.2 17.2 100.0
Total 58 100.0 100.0

3.7.7 The use Project information technology to control the progress and
schedule of the project

In order to reveal the extent at which these small-scale local contractors use
information technology, respondents were asked to rate the extents of use according
to the Linkert scale. Result examination revealed that most small contractors have not
adopted the use of information technology in project monitoring and scheduling. 36%
of the respondent (which is the highest) assessed that the extent of use of technology
is moderate followed by 31% of the respondents assessed that the extent of use is low,
whilst 8% say it is very low. that being said, poor performance by this contractor is
inevitable.

Table 3.: Extent of Use of Project Information Technology

Frequency Percent Valid Percent Cumulative Percent
Valid very low 5 8.6 8.6 8.6
low 18 31.0 31.0 39.7
moderate 21 36.2 36.2 75.9
high 13 22.4 22.4 98.3
very high 1 1.7 1.7 100.0
Total 58 100.0 100.0

50
3.7.8 Extent of Contract Being Delivered on Time in a Given Period of Time

Examination of this result revealed that most projects executed by small civil
contractor were not delivered on time .it was shown that 46.6% of the respondents
assessed that most of their projects are not delivered on time ,36% of the respondents
confirmed that extent of projects delivery is moderate whilst 12% which percepts that
the extent is high. generally small-scale civil contractors’ performance in project
delivery is low.

Table 3.: Extent of Project Delivery

Frequency Percent Valid Percent Cumulative Percent
Valid very low 3 5.2 5.2 5.2
low 27 46.6 46.6 51.7
moderate 21 36.2 36.2 87.9
high 7 12.1 12.1 100.0
Total 58 100.0 100.0

3.7.9 Extent of Lost Time due to Shortage of Materials and Searching for
Materials

42.4% of the respondent respondents assessed that this small civil contractor lost a lot
of time when there is shortage of material. 39% of the respondents said that the extent
of lost time is moderate whilst other 15% of the respondents is very high. The results
indicate that small civil contractors experience shortage of resources which as a result
time is lost while searching. loss of Time during construction affects the schedule and
project delivery. Also, this result suggests that small civil contractors have low
capabilities for purchasing resources for construction, hence poor performance.

Table 3.: Extent of Lost Time due to Shortage of Material

Frequency Percent Valid Percent Cumulative Percent
Valid very low 3 5.2 5.2 5.2
low 27 46.6 46.6 51.7
moderate 21 36.2 36.2 87.9
high 7 12.1 12.1 100.0
Total 58 100.0 100.0

3.7.10 Descriptive Analysis of Performance Indicators

Table 3.: Descriptive Analysis of the Performance Indicators on Small Civil
Contractors

N Minimum Maximum Mean Std. Deviation Ranking

51
Extent of schedule change during 58 2.00 5.00 3.7069 .74947 4th Rank
construction
The extent of schedule changes 58 2.00 5.00 4.0345 .77154 2nd Rank
due to difference of the actual
site condition and that given in
the document
Extent client- initiated variation 58 2.00 5.00 4.1552 .61564 1st Rank
occur during construction which
result to schedule instability
Extent at which projects 58 3.00 5.00 3.9655 .77154 3rd Rank
schedules comply with
contractual agreement
Extent of Coordination and 58 2.00 5.00 4.1034 .80980
communication between
project parties that cause
Extent of unrealistic baseline 58 2.00 5.00 3.8966 .71793
schedule
The use Project information 58 3.00 5.00 3.8448 .64350
technology to control the
progress of the project, which
includes the database and
software used by the
management team
Extent of contract being 58 2.00 5.00 3.7759 .85928
delivered on time in a given
period of time
Extent of lost time due to 58 2.00 5.00 3.6379 .76544
shortage of materials and
searching for materials?
Valid N (listwise) 58

The examination of results from the table above shows that “extent client- initiated
variation occur during construction which result to schedule instability” was of high
extent with mean of (m=4.1552). This result indicates that most small civil
contractors experience client-initiated variation which as a result it affects the
performance. Also, most respondents showed that the frequency of occurrence of
schedule changes due to difference of the actual site condition and that given in the
document is the second with the highest mean score of 4.0345. which proves that the
performance of small civil contractors is adversely affected.
Inspire of other parameters having lower means table 5.4 below shows that all
parameters for contractors’ performance are statistically significant(p<0.05)

Table 3.: One Sample Test

One Sample Test
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
Extent of schedule change 16.004 32 .000 1.98485 1.7322 2.2375
during construction

52
 The extent of schedule 19.565 32 .000 2.25758 2.0225 2.4926
changes due to difference of
the actual site condition and
that given in the document
Extent client- initiated 15.759 32 .000 2.56061 2.2296 2.8916
variation occur during
construction which result to
schedule instability
Extent at which projects 16.380 32 .000 2.25758 1.9768 2.5383
schedules comply with
contractual agreement
Extent of coordination and 20.914 32 .000 2.16667 1.9556 2.3777
communication between
project parties that cause
Extent of unrealistic baseline 13.096 32 .000 2.22727 1.8808 2.5737
schedule
The use project information 7.000 32 .000 1.16667 .8272 1.5062
technology to control the
progress of the project, which
includes the database and
software used by the
management team
Extent of contract being 9.106 32 .000 1.16667 .9057 1.4276
delivered on time in a given
period of time
Extent of lost time due to 16.392 32 .000 2.19697 1.9240 2.4700
shortage of materials and
searching for materials

3.8 measure to improve the performance of this contractors with regard to

schedule stability and delivery reliability

N Minimum Maximum Mean Std. Deviation Ranking

Employing contingency plan in 58 2.00 5.00 3.7069 .74947 8th Ran
scheduling
Invest in training, technical 58 2.00 5.00 4.1552 .61564 1st Rank
knowledge and skill development
Human resource management and 58 2.00 5.00 4.1034 .77154 2nd Rank
work force development
Access to available resources and 58 3.00 5.00 3.9655 .77154 4th Rank
proper equipment
Improving coordination and 58 2.00 5.00 4.0345 .80980 3rd Rank
communication between
Appropriate financial mechanism 58 2.00 5.00 3.8966 .71793 5th Rank
to improve cash flow and
liquidity of this contractor
Establishment of performance 58 3.00 5.00 3.8448 .64350 6th Rank
measuring systems (POMS) e.g.;
balance scorecard, KPI (key
performance indicators)
Hire skilled staff to achieve good 58 2.00 5.00 3.7759 .85928 7th Rank
progress of work
Valid N (listwise) 58

53
Examination of the results reveals that Invest in training, technical knowledge and
skill development was the highest ranked measures to improve performance of small-
scale contractors based on the overall sample mean of 4.1552. The lower value of the
standard deviation of .61564 further reinforces the consensus among respondents in
ranking this performance improvement measure highly. The second overall ranked
performance improvement measures were Human resource management and work
force development (mean = 4.1034.) was ranked second overall. The lower value of
the standard deviation of .77154 further reinforces the consensus among
respondents.
The third overall ranked critical measure was that of Improve Improving coordination
and communication between project parties (mean = 4.0345). in the lower ranks, hire
skilled staff to achieve good progress of work and Employing contingency plan in
scheduling was ranked last with lowest mean of 3.7759 and 3.7069 respectively which
indicates that is are less reliable to be used as performance improvement measures for
this contractor. Despite of the ranking, all measures were found to be statistically
significant.

3.9 Discussions of the Findings

3.9.1 Performance of Small Civil Contractors

The results of the data analysis presented in the previous sections show that the
performance of this contractors is not satisfactory. Performance of this contractors
were done by assessing the non-financial measures of performance that is schedule
stability, delivery reliability and client’s satisfaction.
The result show that most of the indicators indicate that the performance of civil
contractors in civil works is not satisfactory. The extent of schedule changes while
proceeding with construction is high, hence managerial performance of this
contractors is poor. Also, it was also evidenced that this Contractors experience client-
oriented variation at a great extent this has a direct impact on the performance of this
contractors in terms of time and cost and subjection of Extension of Time which result
to underperformance of this contractors. Variations often cause disputes and
dissatisfactions among the parties involved in construction projects. Thus, it is very
important to control Variations in a construction project [CITATION Aft14 \l
1033 ].The study also discussed that one of the causes of variation is schedule change

54
during construction. A change of schedule during the project construction phase may
result in major reallocation of resources. A change in schedule means that the
contractor will either be required to provide additional resources or keep some
resources idle. In both cases, additional cost is incurred[ CITATION Aft14 \l 1033 ].
Also, it was also noticed that most contractors prepare unrealistic construction
schedules. One of the respondents discussed that during the tendering period, most
contractors do not prepare a realistic baseline schedule. This as a result it affects the
actual construction flow and time consequence which will way forward affect the
performance of this contractors. [ CITATION Ali12 \l 1033 ] Sayed on the other
hand, enhancing the reliability of planning is a fundamental factor in achieving stable
construction flow and subsequently, high productivity and improved product quality.

In addition, the respondents evidenced that the extent of contract to be delivered on

time is very low which indicate poor time performance as well as cost performance.
this also suggests underperformance of this contractors. Inspire of different reforms
and policies update by the Government to improve the capabilities of local contractors
in project delivery (time, cost and quality), This study evidence that there is still a
great problem in delivery reliability of the projects.
Clients also reported their perception of performance of small civil contractors in
Tanzania in-terms of their satisfaction. The result of this study gave an impression
that the performance of small civil contractors is poor. Respondents (from Tan road)
under this section showed that small civil contractors have a high extent of works to
be redone due to dissatisfaction of the engineers. This indicate that the performance of
this contractors in civil works is poor. The result also indicated that small civil
contractors have low ability to optimize the resources available and managing them.

3.9.2 Suggested measures to improve performance of small-scale civil contractors

Both clients and the small civil contractors examined different ways of improving the
performance of this contractors as far as clients satisfaction is concerned .The clients
argues that the best measures to improve performance of contractor were Human
resource management and work force development by the contractors to reduce the
extent of defect ,Improve planning and scheduling during design process to reduce
EOT (extension of time) that affect project delivery and Appropriate financial
mechanism to improve cash flow and liquidity of this contractor . Contractors also

55
suggested that to improve performance in terms of schedule stability and delivery
reliability, measures such as Invest in training, technical knowledge and skill
development, Human resource management and work force development and
Improving coordination and communication between project parties.

Contractors (respondents) were also asked to propose other measures to improve the
performance of small-scale contractors and the following are the suggested measure

 Enhancement of proper communication and relation between site team and

office team, that is, between the contractor’s staffs and also between the
client’s consultant and the contractor
 Adopting new method and skills for human resource management and
equipment. the respondent suggested the use of information technology and
construction management software’s and models.

CHAPTER 4
CONCLUSION AND RECOMMENDATION

4.1 Introduction

This chapter respectively intends to conclude and recommend on the study of

performance assessment of small civil contractors in Tanzania. The conclusion
summarizes what had been discussed prior in chapter three; from the questionnaires
and analysis through associating them to the objectives of this research study mean
while recommendations section portrays practical implications of this study and
suggests further research in this field.

4.2 Conclusion

The purpose of this study was to examine the non-financial performance measures for
construction industry in Tanzania. In this research, the non-financial variables in
evaluating the performance of small contractors in Tanzania have been examined. A
number of opinions on improving the performance of small civil contractors from the
small contractors.
It is my contention that the measurement of performance of contractors in a sector
which is critical for the country’s development is essential for policy making, a
managerial decision making and, above all, improving the performance of the sector .

56
While several studies have been conducted on performance of the whole construction
industry and building contractors n, there have been limited studies undertaken on the
context of small civil contractors. To address this knowledge-gap, this research sought
to assess the performance of the small sale contractors Using a quantitative approach
of survey-based questionnaires, augmented by literature review, the Classes VI and
VII local type of contractors’ viewpoints were sought to further determine their
perception on levels of performance and client’s satisfaction . Main findings are
concluded here under as follows
In assessing the performance of small civil contractors using non-financial measures
conclusions were drawn from the study;

 In the analysis of client’s satisfaction parameters, it was found out that clients
are not satisfied with works conducted by these contractors hence prove
underperformance that is , Parameters such as the extent of dispute or claims,
the extent of works redone due to poor quality was found to be high, also it
was found out that this contractor, fail dramatically on the parameters of
budget adherence, and human resource optimization, Extent of Skilled
Workforce or Staff of Small-Scale Contractors extent was found to be low,
hence client’s satisfaction is not achieved
 For schedule stability and delivery reliability indicators it was found out that
schedules are subjected to changes and projects are not being delivered on
time this proves poor performance. The negative effects of schedule pressure
arise mainly by working out of sequence, generating work defects, cutting
corners, and losing the motivation to work[CITATION mad06 \l 1033 ] . That
being said the performance of Civil contractors in Civil works is due to be
unsatisfactory since these contractors have failed to achieve schedule stability.
On the context of client-initiated variation, result show that the extent of
variation is high. According to the down side of this variation order was it
brought cost and schedule overrun and causes disagreement and claims among
the contract parties., the performance of this contractors not satisfactory.
 Both client and SCC suggested on measures improve small contractors’
performance. The clients suggested that Human resource management and
work force development by the contractors to reduce the extent of defect,
improve planning and scheduling during design process to reduce EOT

57
 (extension of time) that affect project delivery and Appropriate financial
mechanism to improve cash flow and liquidity of this contractor while the
SCC suggest that Invest in training, technical knowledge and skill
development, Human resource management and work force development can
enhance schedule stability ,delivery reliability and clients satisfaction to
improve the performance of this contractors.

4.3 Recommendation

Despite the attempts by the by the Government to improve performance of small civil
contractors, there is still much to be done. The research therefore puts forward the
recommendations below to help improve their performance,
 Small contracting firms should engage in provision of training and skills to it
staffs to increase knowledge and technical know-how to enable skill
development in form of structured training in business management and
marketing strategies for imp limitation of government project at the required
satisfaction.
 All contractors should enhance the Development of realistic baseline schedule,
the use of scheduling software packages such as the critical path method
(CPM) or line of balance (LOB) scheduling technique and the use of schedule
contingency plan to avoid late delivery of project
 All local contractors in General should employ the use of performance
measurement systems such as the Balanced scoreboard which will help to
measure performance of the organization which as a result helps in decision
making, policy making and general improvement of the organization.

58
REFERENCES

Abhisheksha pg scholar Types and courses of construction claims [Journal] //

International Journal of Engineering Research & Technology (IJERT). - 2014.
Akhtar inaam research on social science interdisplinary persperctive [Book
Section] // research on social science ; interdisplinary persperctive / book auth. akhtar
inaam. - new delhi : [s.n.], 2016.
Aliyu haruna, and ibrahim m.s Influence of building contractors perfomance on
construction process in nigeria [Journal] // journal of energy technologies and
policy. - 2015. - pp. 11-22.
Amin A.T Mahyuddin Ramli and Abu HBakar Training and Development of
workforce in the construction industry [Journal] // International Journal of academic
research. - 2011. - p. vol 3 page 4.
ariyo small firms are the backbone to nigeria economy .africa economy analysis
[Journal] // academy of management journal vol1 ,no1. - 2018. - pp. 109-124.
Barangormez on construction of project schedule [Journal] // METU theses
collection. - 2005.
Basheke Benon c measuring the perfomance of contractorss in governmnent projects
in developing countries ugandas context [Journal] // african jornal of business
management. - 2012.
Bekoe regina assessing the perfomance of local contractors on government projects
in the akuapem eastern region -ghana [Journal] // european journal of business and
management. - 2013. - p. vol. 5.
Boniface Muhegi Joseph Malongo globalization ; a challenge to construction
industry [Journal] // IRBNET. - p. 2.
calzon bernardicta data analysis methods and techniques [Online] // datapine
website. - 25 march 2021. - https://www.datapine.com/blog/data-analysis-methods-
and-techniques/.

59
carrie williams research methods [Journal] // journal of business and economic
research . - 2007. - p. 65.
chilese N kavishe Neema and David ,E Critical factors influencing the bid or no-bid
decision of the indigenous small contractors in Tanzania [Online] // researchgate
website. - september 2019. - https://www.researchgate.net/publication/342467761.
Chileshe N., Edwards, D.J and Kavishe and Haupt, T.C. Perception on challenges
impacting bid decision of indigenous building contractors in Dar es Salaam, Tanzania
[Journal] // Journal of Engineering , design and technology. - 2020.
Cooke Davies "The real success factors on projects [Journal] // International Journal
of project management. - 2002. - p. 20.
CRB CONTRACTORS REGISTRATION BOARD(CRB) [Online] // CRB website. -
2021. - https://www.crb.go.tz/CoreFunction/RegistrationOfContractors.
Doglous Consulting LLC Ted Principle of schedule contigency management
[Conference] // 2014 Construction CPM Conference. - Orlando carlifonia : [s.n.],
2014. - p. 1.
Dragon katic and bevanda balanced scorecard in construction [Online] //
researchgate website. - march 2019. -
https://www.researchgate.net/publication/331650837_BALANCED_SCORECARD_I
N_CONSTRUCTION.
eziodwashe Efole friaday Schedule quality , schedule evaluation and schedule
comformance scoring. quantity surveyors get ready [Journal] // international journal
of civil engineering and Estate management . - 2019. - pp. 1-33.
Firuzan david A and Jamshid assessing contractor quality perfomance [Journal] //
construction management and economics . - 2010. - pp. 211-223.
Ofori,G Construction Industry in Developing Countries: A research Agenda
[Journal] // Journal of construction in developed countries. - 2006. - pp. 51-62.
Gitonga L.W "Improvements through Benchmarking: A Survey of the Kenyan
Construction firms [Journal] // MBA Research Project, University of Nairobi. - 2005.
Habitat Policies and Measures for Small-Contractor Development in the
Construction Industry [Journal] // community development library. - Nairobi :
UNITED NATIONS CENTRE FOR HUMAN SETTLEMENTS, 1996. - p. 20.
Ibrahim faki, et al factors affecting the perfomance small scale construction firms in
nigeria [Journal] // nigeria journal of technology vol.34,no.4. - 2014. - pp. 981-991.
Illori critical analysis of monitoring and evaluation system for small and medium
enterprises ,with specific reference to small medium enterprisesdevelopment agency
in nigeria (SMEDAN) [Journal] // PHD thesis ,university o the f western cape ,south
africa. - 2017. - p. 2.
internationallabourorg small scale contractors development in construction industry
[Online] // international labour organization website. - 2020. -

60
https://www.ilo.org/wcmsp5/groups/public/---
ed_emp/documents/publication/wcms_758529.pdf.
Invest Tanzania Tanzania construction sector report [Online] // Tanzania invest. - 16
october 2016. - https://www.tanzaniainvest.com/construction/tanzania-construction-
sector-report#:~:text=The%20construction%20industry%20in%20Tanzania,the
%20country's%20GDP%20or%20USD1..
jeffory meyer d kishiwagi ,stephanie r witt general admistration service streamlines
the procurement of construction service [Journal] // sematic scholar. - 2010.
karna sami customers satisfaction in construction [Journal] // researc gate. - 2004.
Kikwasi Roles of construction sector and key bottleneck to supply response in
Tanzania k [Online] // WIDER Working Paper 2018/131, Prepared for United
Nation. - 2018. - www.wider.unu.edu/sites/default/files/Publications/.
Kothari c r research methedology methods and technique [Book]. - new delhi : new
age international publisher limited, 2004.
Kothari Research method and techniques 2nd edition [Book]. - New delhi  : New age
international publishers, 2011.
kumar ranjit research methedology a step by step guide for begginers [Book]. - new
delhi : sage publishers, 2011.
kumeleka paul john critical factors inhibiting the perfomance of small- medium
-scale contractors in sub saharan region.a case in malawi [Journal] // journal of
construction enginnering. - 2015.
Love P. E. D., and Holt, G. D. Construction business performance easureent ; The
SPM alternative [Journal] // journal of business process management. - 2000. - pp.
408-416.
love P.E.D ,Edwards detrerminants of reworks in building construction projects
[Journal] // Engineering , construction and architectural management. - 2004. - pp.
259-274.
Lyimo K. S., Luvara, V. G., Tesha, D. N. and Phoya, S. Critical Factors Causing
Delay and Cost Overrun in Public Building Projects in Dar es salaam [Journal] //
indian journal of research. - 2018.
M.krezwminiski construction schedule stability and result schedule [Journal] //
researchgate. - 2016.
Mahamid Walid M. A. Khalifa and Ibrahim Causes of order change in onstruction
[Journal] // Engineering technology and applied science research. - 2019. - pp. 4956-
4961.
Makori C.G Strategic Performance Measurement Within an Operations Strategy
;context ; a survey of kenyan practices [Journal] // university of nairobi library
archives . - 2002.
mathewkarlfatis konstatinos perfomance measurement in road sector; a croos
country review of experience [Journal] // internationa transport forum . - 2021.

61
matiko samson lema nm developnment of construction contractorss perfomance
measurement framework in tanzania [Online] // academia web site. - 2012. -
https://www.academia.edu/16731916/_Development_of_Construction_Contractors_P
erformance_Measurement_Framework_.
Memon Aftab Hameed and Hasan Ismail Abdul Rahman and Mohamad Faris
Abul significant couses and effects of variation in construction projects [Journal] //
Research Journal of Applied Sciences, Engineering and Technology. - 2014. - pp.
4494-4502.
Meysam Alireza Ahankoob and seyed Construction scheduling Through use of
Builing information modeling inconstruction industry [Journal] // Research gate. -
2012. - p. 1.
Moosavi F.S and Moselhi schedule assesment evaluation [Conference] // conference
proceeding of the ASCE Construction research congress. - canada  : [s.n.], 2012.
mwakalinga arch eliud GOVERNMENT TO INCREASE CAPACITY BUILDING
OF SMALL CONTRACTORS [Conference] // conference of awareness and the
establishment of contractors union and groups using eligible labor technology for
construction, road maintenance repair. - mbeya : nipashe, 2019. - p. 1.
NBS intergrated business survey, construction analytical report [Online] // Tanzania
national bureau of statistics. - september 2013. -
https://www.nbs.go.tz/nbs/takwimu/IBS/Construction%20Industry%20Analytical
%20Report,2010.pdf.
neely mike gregory ,ken platts perfomance measurement system design , literature
review and research agenda [Journal] // international journal of operation and
production management . - 2005. - p. 1.
Nepal madhav prasad and son moonsea park and bosik Effects of schedule
pressure on construction process [Journal] // journal of construction engineering and
management. - 2006.
Ökmen Öztaş, A. Construction Project Network Evaluation with Correlated schedule
risk analysis [Journal] // Journal of Construction Engineering and Management.. -
2008.
Osotimehin K.O., Jegede, C. A., Akinlabi, B. H and Olajide, O.T An Evaluation
of the Challenges and Prospects of Micro and Small Scale Enterprises Development
in Nigeria [Journal] // America international journey of contemporary research. -
2012. - p. 174.
Pinda Mizengo speech by honorable mizengo p. pinda (mp.), prime minister
[online] // tanzania covernment portal documents. - 17 july 2008. -
https://www.tanzania.go.tz/egov_uploads/documents/110_sw.pdf.
sanghoon H.L Development of quality perfomance indicators for quality
management in construction projects [Journal] // Sematicscholar . - 2006.
Sunke Kffr. Nicole project management ,managerial approach [Online] // academia.
uk website . - 8 june 2009 . - https://core.ac.uk/download/pdf/56725592.pdf.

62
T.N. Garavan P. Costine, and N. Heraty Training and Development in ireland ;
context ,policy and practice [Conference] // Ork Tree press. - duplin : [s.n.], 1995.
Tesha D.N.G.A.K., Luvara, V.G.M., Samizi, M. and Lukansola, D. “Growth trend
of local building contractors in a period for period 2005-2015 in Tanzania [Journal] //
International research journal of Engineering and technology . - 2017. - pp. 20982-
2102 vol 4 no 7.
Thongha small scale contracting ,strengtheninglocal capacity for sustainable rural
infrastructure [Journal] // international labour organization publication. - 2002. - p. 5.
WBDProjectmanagement project planning , delivery and control [Online] // whole
building design guide. - 24 august 2017. - https://www.wbdg.org/project-
management.
Wegelius-Lehtonen Performance measurement in construction Logistics [Journal] //
international journal of production eonomics. - 2001. - pp. 107-116.

63
 APPPENDIX I: QUESTIONNAIRE TO CLIENTS

ASSESMENT OF THE PERFOMANCE OF SMALL-SCALE CIVIL

LOCAL CONTRACTORS IN DAR ES SALAAM TANZANIA

Dear Sir/Madam,

I BRIAN MLAKI Fourth-year student at Ardhi University with Registration number

10445/T.2017 pursuing Bachelor of Science in Building Economics, undertaking a
research titled "Assessment of small civil local contractors’ performance in civil
works in dares salaam Tanzania ". You are kindly requested to participate effectively
by answering questions posed in this questionnaire. I sincerely assure you that the
collected information has high degree of confidentiality and will be used for academic
purpose only.

Name: MLAKI BRIAN FREDRICK

Reg. No: 10445/T.2017

Mob No: 0685079880

Email: [email protected]

64
Part I: Respondent Information

1. Name of the firm(optional); _______________________________________

2. Telephone/Email; _______________________________________________

Please tick the appropriate answer in the brackets below

3. Period with the organization

1. Below 5 years
2. 5-10 years { }
3. 10-15 years
4. 15 years and above

4. What is your position in the organization?

a) Technician
b) Site engineer { }
c) Planning engineer
d) Project managers

Part II: Performance Assessment

Below is the table listing the performance assessment indicators for the assessment of
small civil contractors as identified from literatures. Please put a tick (√) in the
appropriate column to indicate the frequency or extent of achievement of small civil
contractors’ performance in civil works in Tanzania with respect to client satisfaction
on works performed by this contractor

KEY; 1-Very low 2 – low 3-moderate 4-high 5- very high

5. Customers / clients satisfaction assessment questions

65
How would you assess the performance of small-scale civil contractors with regard to
the following measures?

S/N Performance Assessment Indicators 5 4 3 2 1

1. Dispute/claims
Extent at which disputes or claims are settled
2. Number/cost of reworks
Extents at which works are redone due to below
engineers/architects’ satisfaction
3. Extent of occurrence of defects outstanding at
practical completion of the project

4. Information coordination /communication

Average time taken for contractors to respond to
client’s Requirement
5. Extent of Quality of project after defect
rectification period
6. Performance of small contractors in resource
optimization and management
7. What is the extent of adherence to the agreed
budget by this contractor
8. Extent/ number of skilled workforces of this
contractor

Part III: Performance Improvement

Below is the table listing possible measures towards improving the performance of
small-scale civil contractors in Tanzania as identified by literature. Please tick (√) the
appropriate column to indicate the reliability of the measures

KEY; 5 – Most reliable ,4- Reliable, 3- Moderate, 2-less reliable, 3 -least reliable

6. What would you suggest as a measure to improve the performance of this

contractors with regard to client’s satisfaction?

S/N Measures Towards Improving the Performance of 5 4 3 2 1

Small-Scale Civil Contractors
1. Improvement in communication between client and
contractors

2. Resource’s optimization to reduce cost in construction

3. Human resource management and work force
development by the contractors to reduce the extent of
defect
4. Improve planning and scheduling during design process
to reduce EOT (extension of time) that affect project

66
 delivery
5. High supervision/ improving project monitoring of
works by the client’s staff
6. Appropriate financial mechanism to improve cash flow
and liquidity of this contractor
7. Quality management system by the contractors

7. Are there any other possible solutions or measures (list them)?

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

67
 APPENDIX II: QUESTIONNAIRE TO CONTRACTORS

ASSESMENT OF THE PERFOMANCE OF SMALL-SCALE CIVIL

LOCAL CONTRACTORS IN DAR ES SALAAM TANZANIA

Dear Sir/Madam,

I BRIAN MLAKI Fourth-year student at Ardhi University with Registration number

10445/T.2017 pursuing Bachelor of Science in Building Economics, undertaking a
research titled "Assessment of small civil local contractors’ performance in civil
works in dares salaam Tanzania ". You are kindly requested to participate effectively
by answering questions posed in this questionnaire. I sincerely assure you that the
collected information has high degree of confidentiality and will be used for academic
purpose only.

Name: MLAKI BRIAN FREDRICK

Reg. No: 10445/T.2017

Mob No: 0685079880

Email: [email protected]

68
Part 1: Respondent Information

1. Name of the firm(optional); ___________________________________

2. Telephone/Email; _______________________________________________

Please choose the appropriate answer in the brackets below

3. Period with the company

a) Below 5 years
b) 5-10 years
c) 10-15 years
d) 15 years and above

4. What is your position in the organization?

a) Quantity surveyor
b) Site engineer
c) Site foremen
d) Project managers

5. What is the number of projects that you executed within 5 years?

a) 1-10 projects
b) 10-20 projects
c) 20-30 project
d) 30 and above

Part 2: Performance Assessment

Below is the table listing the performance assessment indicators for the assessment of
small civil contractors as identified from literatures. please put a tick () in the
appropriate column to indicate the frequency or extent of achievement of small civil
contractors’ performance in civil works in Tanzania

KEY; 1-Very low 2 – low 3-moderate 4-high 5- very high

7. How would you assess the performance of small-scale civil contractors with regard
to the following measures?
69
 S/ Performance Assessment Indicators 5 4 3 2 1
N
I. Schedule Stability
1. a) Extent of schedule change during construction
2. b) The extent of schedule changes due to difference of
the actual site condition and that given in the
document
3. c) Extent client- initiated variation occur during
construction which result to schedule instability
4. d) Extent at which projects schedules comply with
contractual agreement
5. e) Extent of Coordination and communication between
project parties that cause
6. f) Extent of unrealistic baseline schedule
7. g) The use Project information technology to control the
progress of the project, which includes the database
and software used by the management team
II. Delivery Reliability
1. a) Extent of contract being delivered on time in a given
period of time
2. b) Extent of lost time due to shortage of materials and
searching for materials?

8. Are the any other performance measures which can be used to assess the
performance of small-scale civil projects? (List them)

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

70
Part 3: Performance Improvement

Below is the table listing possible measures towards improving the performance of
small-scale civil contractors in Tanzania as identified by literature. Please tick (√) the
appropriate column to indicate the reliability of the measures

KEY: 5 – most reliable ,4- reliable, 3- moderate, 2-less reliable, 3 -least reliable

9. What would you suggest as a measure to improve the performance of this

contractors with regard to schedule stability and delivery reliability

S/N Measures towards improving the performance of 5 4 3 2 1

small-scale civil contractors
1. Employing contingency plan in scheduling
2. Invest in training, technical knowledge and skill
development
3. Human resource management and work force
development
4. Access to available resources and proper equipment
5. Improving coordination and communication
6. Appropriate financial mechanism to improve cash
flow and liquidity of this contractor
7. Establishment of performance measuring systems
(POMS) e.g.; balance score card, KPI (key
performance indicators)
8. Hire skilled staff to achieve good progress of work

10. Are there any other possible solutions or measures (list them)

_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________

71