Significance of Project Management in Construction Industries of Developing Countries

Introduction

Project management refers to the methods involving the redesigning of management and

modifying specific management mechanisms to control and utilize the organizational resources

effectively for particular business objectives (Kerzner, 2009). Project management comprises of

different tools which allows managers to supervise the development of projects while allowing

them to evaluate strategies that lead to success or failure, hence mitigating risk (Wells, 2012).

Although the concept of project management is widespread in the domain of manufacturing and

technology development, it is often overlooked in the construction industry (Conforto et al.,

2014). Studies have revealed that in the construction industries of Nigeria, Bangladesh and India,

both the managers and workers utilise informal techniques of management. Mostly, managers at

construction organizations utilise outdated project management tools such as Gantt charts to

systematize their management which leads to project delays and abandonment due to its lack of

efficiency and effectiveness. Due to the huge demand of construction activities, it is vital for

construction managers to employ competent project management strategies to plan and control

resources proficiently (Ogunde, Olaolu, Afolabi, Owolabi, & Ojelabi, 2017). Currently, a lack of

research exists on the application of project management techniques to enhance the performance

of construction projects in developing countries. Therefore, the fundamental objective of the

proposed study is to evaluate the importance of formal project management in the construction

industries of developing nations.

Literature Review

Construction industry is a significant element that determines the success or failure of an

economy. Correspondingly, this is because flourishing economies demonstrate a rise is

construction projects whereas weak economies are more likely to experience project

abandonments (Olusegun & Michael, 2011). Aliyu (2012) has investigated the mechanism of

project management in the domain of Nigeria’s construction industry. Although the industry is

mostly controlled by foreign companies (Ogunlana, Charoenngam, Herabat, & Hadikusumo,

2004), construction projects often get delayed in completion for several years, consequently

leading to excess utilization of the resources in contrast to those decided during the initial

planning. Aliyu (2012) has indicated that the reliance of construction project managers on

obsolete Gantt charts instead of the contemporary tool Critical Path Method (CPM) is one of the

primary reasons of resource wastage and project delays.

A research indicated that out of every 10 projects in Nigeria, 7 projects faced delays in

their completion (Aibinu & Jagboro, 2002). Some of the most preeminent barriers to

construction project effectiveness in Nigeria include low financial leverage, cultural hindrances

and rigid political and social frameworks (Olateju et al., 2011). Another study by Ibem, Anosike,

and Azuh (2011) discovered that high work load, absence of feedback on existing and previous

projects and frequent modifications in the scheme of work are some of the factors that increase

the stress among construction workers in Nigeria. Moreover, Olateju et al. (2011) also revealed

that, although the traditional and contemporary project management mechanisms have allowed

the operations to pursue smoothly within the country, there is still a lack of optimum results.

Along the same lines, Nwachukwu and Emoh (2011) indicated that the knowledge and utilization

of project management techniques is relatively low in Nigeria.

 Similarly, Bangladesh is another developing country where the construction industry

contributes largely in the overall GDP, specifically an approximate percentage of 20% (Islam,

Trigunarsyah, Hassanain, & Assaf, 2015). However, Islam et al. (2015) conducted a group of

surveys including previous literature, questionnaires, and interviews of 10 construction

engineers. The study revealed that some of the most significant causes of construction delays in

Bangladesh are inadequate planning and organizing, poor project management, and work

overload (Islam et al. 2015).

Correspondingly, the construction industry of India was also studied by several

researchers to discover the causes of delays in project completion. Similar to Nigeria and

Bangladesh, the construction sector of India contributes significantly in the country’s economy,

i.e. by almost 9 % (Doloi, Sawhney, Iyer, & Rentala, 2012). However, despite the great

significance of the sector, the construction projects in India are deteriorating in terms of quality,

performance and cost due to a lack of formal project management awareness in the country (Auti

& Skitmore, 2008). Moreover, Auti and Skitmore (2008) indicated that the public sector in India

still implements traditional methods to execute projects rather than contemporary project

management techniques. The lack of adequate project management in the public sector is mainly

due to rigid governmental strategies, absence of transparency, and extortion (Auti & Skitmore,

2008).

The literature suggests that the application of project management tools can enhance the

performance of the construction sector of India and other developing countries by scheduling

activities, increasing transparency, and intensifying the flexibility of operations (Auti &

Skitmore, 2008). Additionally, Połoński (2015) illustrated that construction managers should

employ the Work Breakdown Structure (WBS) on construction projects, which involves splitting
a project into a set hierarchy of essential activities or tasks. Burghate (2018) further emphasized

that WBS demonstrates the requirements of each activity graphically which helps project

managers to fulfill tasks in a logical sequence. As the WBS allows the allotment of time and cost

required to complete each section of the framework, project managers find it easy to calculate the

budget and forecast the overall schedule of the project. Furthermore, the utilization of the Critical

Path Method (CPM) also leads to the reduction of resource wastage and speeds up completion

process (Howell et al., 2010). In CPM, specific time durations are allocated to the critical

activities of a project that determine the overall completion time of a particular project (Antill &

Woodhead, 1991).

Another project management tool that can be used to enhance the performance of

construction industry in developing countries is the use of Radio Frequency Identification

(RFID) method. In RFID, radio waves of disparate frequencies are utilized to recognize

particular items (Lu, Huang, & Li, 2011). The enhancement of real-time transparency and

traceability of information is crucial in the management of construction projects and hence,

RFID can help project managers streamline construction activities in several components of the

project including materials, machinery and human resources while reinforcing the overall quality

of the project (Lu et al. 2011). For instance, using RFID tags can enable project managers to

keep a record of the inventory and manage the overall supply chain more efficiently by making

the information available in real-time. Correspondingly, this is because managing the inventory

of material is crucial in construction projects to manage an optimum flow of cash (Lu et al.,

2011).

Similarly, RFID can be used in the handling of human resources by providing the

workers with an RFID card to keep a track of their bio data. Along the same lines, the safety of
workers can be improved by implementing an employee tracking mechanism to obtain real-time

information about their locations. A study revealed that 36% of workplace injuries in

construction industry are caused due to heavy machinery and vehicles, consequently leading to

construction delays (Valero, Adán, & Cerrada, 2015). Therefore, personal cautionary systems

can be established to notify the labor about the risks of particular components. For example,

ACCIONA and FCC are construction organizations based in Spain which utilize employee

tracking systems to ensure the well-being of the labor working in tunnels through Wi-Fi (Lu et

al. 2011). However, implementing RFID technology is costly and may add to the costs of the

organization (Lu et al., 2011). Nevertheless, this cost increase can be compensated by the cost

savings which the projects can achieve due to timely completion and resource conservancy.

Hence, construction project managers should implement RFID to manage the information

regarding the materials, human resources and machinery involved in specific construction

projects.

Likewise, project managers can use Building Information Modelling (BIM) to maximize

the efficiency of the construction projects. BIM is a mechanism of creating, saving,

administering, exchanging and disseminating building information in a manner that makes it

metamorphic and interoperable (Eadie, Browne, Odeyinka, McKeown, & McNiff, 2013). BIM

involves different strategies, mechanisms and tools that formulate a methodology which helps in

handling the design of the building and input the information over digital mediums throughout

the execution period of a project (Bryde, Broquetas, & Volm, 2013). BIM can assist project

managers in revamping their construction procedures to engage various stakeholders linked to a

project more effectively. The seven steps crucial to executing a BIM mechanism involve

reducing wastage, intensifying feedback, improving the speed of project delivery, postponing
decisions to obtain harmony between relevant decision makers, encouraging the employees,

enhancing efficiency, and visualizing the project as a whole (Bryde et al. 2013).

Integrated Project Delivery (IPD) is another project management tool that allows the

management of huge infrastructure and construction projects by integrating various stages of a

project (Ilozor & Kelly, 2012). The fundamental objective of IPD revolves around helping

designers, clients, organizations and employees in minimizing wastage, reducing costs and

uplifting performance. Ilozor and Kelly (2012) exhibited in their research that a combination of

BIM and IPD can have a significant positive impact on construction project management in

terms of cost and profit, employee safety, stakeholder relationships, scheduling, budget

estimation, return on investment, and overall project productivity.

Nevertheless, for the project management approach to be effective, it is vital for

construction companies to provide adequate assistance and motivation to employees by offering

training to both the current and new workers regarding project management tools (Auti &

Skitmore, 2008). The training can either be provided to employees in-house or by motivating

them to attend workshops and seminars arranged by professional training institutes. Furthermore,

governments should also strive to upgrade their policies and eradicate issues involving

corruption and bureaucracy in construction projects and promote transparency throughout the

projects. Along the same lines, project management departments should also be set up

throughout the public construction companies to manage, scrutinize and control the projects,

consequently leading to a proficient execution of project management mechanisms (Olateju et

al., 2011). Additionally, rather than applying all project management techniques simultaneously,

it is essential to execute them slowly in order to counter the resistance to change (Olateju et al.,

2011).
Findings and Discussion

For the current research, an extensive review of literature has been conducted from which

the research methodology will be developed. The present research primarily consists of a study

of secondary sources such as literary articles from peer reviewed journals, conference

proceedings and information gained from construction managers. The primary purpose of this

research is to investigate the significance of formal project management in construction projects.

Majorly, the researcher has studied whether formal project management methods impact the

progress of construction projects, and the extent of the impact. The study has illustrated that

project management tools enhance the efficiency of construction projects by reducing delays,

improving performance and uplifting the overall quality. The present study has confirmed the

findings that project management plays a crucial role in enhancing the overall project outcomes

of public and private sectors by streamlining the activities involving the planning, organizing and

evaluation of both the physical and human resources. Correspondingly, this is in line with the

findings of Olateju et al. (2011) who proposed that project management is a key driver which

allows public sector companies to apply business improvement tools like TQM and Lean

Management to uplift their proficiency and competitive advantage.

Several project management techniques have been studied in this research which can

improve the performance of construction projects within developing countries. For instance, a

Work Breakdown Structure (WBS) can allow project managers to divide the overall project into

hierarchical activities, hence leading to more efficient project completion. Similarly, a Critical

Path Method (CPM) framework enables managers to determine the estimate length of duration

required for completing a specific project, hence allowing them to plan the activities accordingly.

On the other hand, RFID helps project managers to manage the material, human resources and
machinery required in the completion of a construction project. Lastly, BIM and IPD allow

managers to design the project through integration with different stakeholders. The tools and

techniques mentioned above will allow construction companies to invest their scarce resources in

the most optimum manner and consequently, maximize returns for all the stakeholders involved.

The results of this study are in line with the previous researches conducted on the effectiveness

of project management techniques in construction industries. For instance, Hardin and McCool

(2015) proposed that the enhancement of designs and construction mechanisms due to the

implementation of BIM leads to a decline in wastage of resources and cost overruns,

consequently maximizing the overall organizational efficiency.

Moreover, Aliyu (2012) revealed in a study that applying CPM to construction projects in

Nigeria increases the project efficiency by reducing the delays in completion. A similar

conclusion was reached by a study of Olateju et al. (2011) which delineated that the application

of project management tools like WBS decreases the project delays and cost overflow.

Furthermore, a research by Nawi, Haron, Hamid, Kamar, and Baharuddin (2014) also verified

the findings of the proposed study that IPD allows construction managers and employees to input

their skills and competence in the preliminary phases of the design mechanism which will aid the

constructors to formulate a precise budget of the project. Therefore, it can be deduced from the

discussion of research findings that both the public and private sector in developing countries

like Nigeria, Bangladesh and India should focus on adopting project management mechanisms in

their construction industries to speed up the project completion process, avoid unnecessary cost

and resource exhaustion, prevent the abandonment of projects to resultantly achieve overall

efficiency of operations.
Conclusion

The current study is based on the significance of project management with special focus

on the construction industry. The review of literature conducted for research has suggested that

the construction industry in many developing countries such as Nigeria, Bangladesh and India do

not use formal project management methods in the public sector despite the construction industry

being a large contributor in their GDP. Correspondingly, this is due to the absence of appropriate

governmental policies, lack of transparency across the construction companies and existence of

corruption in the public. The use of informal methods in this domain leads to lengthy delays in

project completion and project abandonment along with the wastage of precious resources. Also,

other factors that lead to delays in the completion of construction projects are lack of appropriate

planning and scheduling along with the excessive workload over employees.

Hence, it was revealed that using project management tools involving the Critical Path

Method (CPM), Work Breakdown Structure (WBS), Radio Frequency Identification (RFID)

technology, Building Information Modelling (BIM) and Integrated Project Delivery (IPD) can

help in minimizing resource wastage and improving the deliverability of construction projects.

However, to efficiently execute the project management techniques, it is essential for

organizations to provide necessary training to the employees and implement the project

management techniques gradually in order to reduce employees’ resistance to change and help

them achieve the overall objective of project management. Additionally, construction companies

should also set up project management offices to monitor the progress and effectiveness of the

applied tools.
Future Research Recommendations

The role of construction industry is vital for developing countries and can considerably

aid infrastructure development. However, the construction industry in developing countries

needs to be transformed according to the emerging technologies and new methods of project

management in order to realise its true potential. Hence, a more forward-thinking and extensive

research is required in this domain. Developing countries’ governments must sponsor or

otherwise facilitate researchers to undertake research related to project management methods in

the construction industry. Also, future researchers may investigate the factors associated with

project delays from the clients’ sides and discover specific project management techniques to

eradicate the issues. Moreover, the review of literature in the study is relatively narrow as the

current research has only focused on three developing countries; Nigeria, Bangladesh and India.

The importance of project management effectiveness in the construction industry of other major

developing nations such as Pakistan, Turkey and Malaysia is yet to be explored. Hence, in future,

the researchers can focus on an extended range of developing countries to increase the scope of

the study. Additionally, the literature on the selected sample countries was discovered to be

limited due to which an in-depth analysis of their current project management approach was not

obtained. Therefore, the researchers may engage in both the primary and secondary research in

the future, by collecting data through questionnaires and first-hand interviews to enhance the

authenticity of information.
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