Project performance in financial distress economy in the Ghanaian construction industry

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The construction industry is of much relevance to every nation’s development by delivering products that offers the basis for industrial production and all activities carried out by individuals, the public, cooperate groups, organizations and others. Also, in terms of economic development, the industry employs lots of individuals when carrying out its operations. However, there have been a lot of concerns raised on the topic of project performance assessment and many countries from different economy has come to appreciate the relevance of improving project performance in their construction industry. Nevertheless, in financial distress economy regardless of a firm’s nature or size presents substantial dangers to its projects performance. The financial strength of the construction industry is a critical necessity for stability in the economy and development. As a result, the appraisal of financial conditions of project is an essential objective for various project participants. The cost of failure of projects is very massive therefore, a success in the performance of project in financial distress economy needs fast initiatives by authorities to rescue them before failure. The aim of this research was to examine project performance in financial distress economy in the Ghanaian construction industry. Three objectives were set on which literature review was conducted. The first objective was to conduct a critical literature survey to establish a characterization and a theory for financial distress construction economy. The second objective was to explore the underlying impeding constraints to project performance in financial distress construction economy and the third objective was to establish the determinants for improvements of project performance in financial distress construction economy. Philosophically, this study leaned towards the positivism paradigm culminating into the adoption of quantitative method in which survey questionnaires were administered to respondents involved with project management yielding a response rate of 80 percent. The statistical tools utilized in data analysis include mean score; Relative Important Index (RII) and descriptive statistics. The findings of the research indicated that “High interest rates chargeable on loans; Lack of regularly cash flow forecasting; Increment of foreign exchange rate are characterization of financial distress construction economy. It was recommended that project stakeholders should ensure effective construction waste management, adequate labor supervision and effective materials and equipment’s management in financial distress economy. Moreover, there must be effective planning and coordination of project activities and effective and fast communication among project stakeholders
A thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment in partial fulfillment of the requirements for the Degree of Master of Science.
Project performance, Financial distress, Construction economy