The use and effectiveness of construction management as a building procurement system in the South African construction industry

Abstract

Project objectives are no longer being determined in terms of time, cost and quality only. Other factors such as employment creation, transfer of skills, use of small medium and micro enterprises (SMMEs) and community empowerment now play a role in determining project objectives and success. Is project management, applied with the traditional building procurement system the best method to achieve these unique project objectives ? Some have argued that construction management, as a building procurement system, could be the most suitable method to use in the South African situation considering the unique project objectives described above. This research proposed to determine whether the use of construction management, as a building procurement system, can improve the attainment of client objectives in the South African construction industry. Based on the problem statement, the following hypothesis was formulated: "The use of construction management as a building procurement system on construction projects with a strong focus on the empowerment of previously disadvantaged individuals (PDIs) and affirmable business enterprises (ABEs) leads to an improved attainment of project / client objectives." It was further broken down as follows: * The choice of building procurement system does influence project success or failure. * Construction management can improve the attainment of client objectives on certain projects. * Construction management in South Africa has not been widely used and understood hence may have failed in its use thus far. * Construction management can be applied successfully on certain projects by following international best practices. The problem was resolved firstly through a literature survey, followed by an empirical survey. Respondents targeted for the empirical survey were clients or developers and project managers based in the following provinces: Gauteng, KwaZulu Natal and the Western Cape. Literature reviewed indicates that this procurement system leads to cost savings and shorter project duration, thereby resulting in improved client satisfaction levels. Furthermore, it can also be of benefit as it allows affirmative construction to take place. This may be of particular interest to public sector clients. Construction management has been widely used in the United States of America and the United Kingdom. In certain instances, it achieved good results, whereas in other instances the results were disastrous. Authors such as Kweku et al (1987) argue that this is due to poor implementation. In the light of this, it is important to note that this method has its shortcomings and can be poorly implemented resulting in unsuccessful projects. Ensuring that "recipes of success" identified herein are applied, can go a long way to ensuring that the system is properly applied and that favourable results are achieved. In theory, therefore, construction management can lead to more satisfied clients as it can achieve better results in terms of their objectives, when properly implemented. Based on literature reviewed and the empirical survey findings, it is concluded that the hypothesis is proven. Based on the literature review, empirical survey and conclusions reached, It is recommended that: q Private sector and public sector clients (such as the National Department of Public Works), consider the use of construction management as a building procurement system on some of their future projects, especially projects with a strong empowerment component. q Clients select suitably qualified and experienced individuals (such as construction project managers) and/or organisations (such as established building contractors) to perform construction management services on their projects. q Existing best construction management practices are applied on construction management projects. q Further research be undertaken on, inter alia, the role of the construction manager and the project manager on construction management projects, the development of emerging contractors on construction management projects and the development of guidelines for the implementation of construction management projects in South Africa.