Enhancing Collaboration in Construction Projects: A Delphi Study on the Convergence of Local and Foreign Contractors
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16, Issue 4
Abstract
The involvement of foreign contractors (FC) in developing countries is a growing trend, but it often leads to disputes and collaboration problems that hinder the intended benefits for the host country. This study focuses on solutions from the perspective of local contractors working with FC. Using a quantitative approach with three Delphi rounds, the study identified thirteen significant issues local contractors face in such collaborations and ranked them based on their significance. Notably, communication problems and difficulties in maintaining quality were key challenges. The study also pinpointed root causes, like the delayed involvement of professionals and language barriers, directly contributed to these problems. Moreover, the study highlighted solutions, emphasizing the importance of proper contract documentation and fostering a collaborative attitude. This research fills a gap in the literature by shedding light on managing FCs’ involvement from the viewpoint of local contractors, ultimately aiming to improve collaboration and enhance the capabilities of local contractors in the Sri Lankan context.
Practical Applications
This study focusing on the challenges encountered by local contractors when collaborating with foreign contractors in Sri Lanka serves as an essential resource for gaining a comprehensive understanding of the critical issues faced by Sri Lankan contractors. The insights given from this research, in turn, empower industry stakeholders, policymakers, and project managers to optimize the efficiency and effectiveness of construction projects in the context of developing countries. Furthermore, given Sri Lanka’s status as a developing nation that relies on foreign support, it is imperative for the nation to navigate these challenges effectively while simultaneously maximizing the benefits derived from foreign aid. By implementing the appropriate strategies recommended in this study, developing countries can take proactive measures to enhance collaboration between local and foreign stakeholders. This not only fosters capacity building among local entities but also expands their opportunities for growth and development.
Get full access to this article
View all available purchase options and get full access to this article.
Data Availability Statement
All data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
References
Works Cited
Aaltonen, K., and V. Turkulainen. 2018. “Creating relational capital through socialization in project alliances.” Int. J. Oper. Prod. Manage. 38 (6): 1387–1421. https://doi.org/10.1108/IJOPM-02-2017-0091.
Aboneh, A., and G. Mahesh. 2023. “Understanding the key factors of operating environment for small and medium contractors in the developing economies: The case of Ethiopia.” J. Eng. Des. Technol. https://doi.org/10.1108/JEDT-07-2022-0354.
Akali, T. 2018. “Influence of contractors’ capacity on performance of road construction Projects in Kakamega County.” Doctoral dissertation thesis, Dept. of Open Learning, Univ. of Nairobi.
Ameyaw, E. E., Y. Hu, M. Shan, A. P. C. Chan, and Y. Le. 2016. “Application of Delphi method in construction engineering and management research: A quantitative perspective.” J. Civ. Eng. Manage. 22 (8): 991–1000. https://doi.org/10.3846/13923730.2014.945953.
Amoah, C. 2018. “The impact of foreign construction firms on the capacity building of the local contractors in Ghana.” In Proc., 12th Built Environment Conf. Gqebera, South Africa: Association of Schools of Construction of Southern Africa.
Bandara, D. M. L. S. 2014. “Impact of foreign contractors on development of Sri Lankan construction industry through technology transfer.” Unpublished Master’s thesis, Dept. of Civil Engineering, Univ. of Moratuwa.
BOI (Board of Investment). 2022. “The best destination in Asia to grow your business.” Presentation for the Webinar Series held in June–July 2022 conducted by the Board of Investments. Accessed March 11, 2023. https://investsrilanka.com/#whysrilanka.
Central Bank of Sri Lanka. 2017. “Central bank annual report 2017.” Accessed February 6, 2023. https://www.cbsl.gov.lk/en/publications/economic-and-financial-reports/annual-reports/annual-report-2017.
Chen, Y., Z. Yang, B. Liu, D. Wang, Y. Xiao, and A. Wang. 2023. “How cultural intelligence affects expatriate effectiveness in international construction projects.” Eng. Constr. Archit. Manage. 31 (4): 1696–1714. https://doi.org/10.1108/ECAM-03-2022-0247.
Cheung, J. J., E. W. Chen, R. Darani, C. J. McCartney, A. Dubrowski, and I. T. Awad. 2012. “The creation of an objective assessment tool for ultrasound-guided regional anesthesia using the Delphi method.” Reg. Anesth. Pain Med. 37 (3): 329–333. https://doi.org/10.1097/AAP.0b013e318246f63c.
CIDA Act (Construction Industry Development Act). 2014. Published as a supplement to Part II of the Gazette of the Democratic Socialist Republic of Sri Lanka on October 17, 2014. Colombo, Sri Lanka: Government Publication Bureau.
CIDA (Construction Industry Development Authority). 2021. “Registration of foreign construction contractors.” Accessed March 19, 2023. https://www.cida.gov.lk/pages_e.php?id=33.
Dabarera, G. K. M., B. A. K. S. Perera, and M. N. N. Rodrigo. 2019. “Suitability of public-private-partnership procurement method for road projects in Sri Lanka’.” Built Environ. Project Asset Manage. 9 (2): 199–213. https://doi.org/10.1108/BEPAM-01-2018-0007.
Dalkey, N. C., B. B. Brown, and S. Cochran. 1969. The Delphi method: An experimental study of group opinion. Santa Monica, CA: Rand Corporation.
Denscombe, M. 2017. EBOOK: The good research guide: For small-scale social research projects. London: McGraw-Hill Education.
Esaiyas, S., and G. Kahssay. 2020. “Challenges facing local contractors working with Chinese contractors in Addis Ababa building projects.” Am. J. Civ. Eng. Archit. 8 (4): 87–96. https://doi.org/10.11648/j.ajce.20200804.12.
Etikan, I., S. A. Musa, and R. S. Alkassim. 2016. “Comparison of convenience sampling and purposive sampling.” Am. J. Theor. Appl. Stat. 5 (1): 1–4. https://doi.org/10.11648/j.ajtas.20160501.11.
Evans, M., and P. Farrell. 2021. “Barriers to integrating building information modelling (BIM) and lean construction practices on construction mega-projects: A Delphi study.” Benchmarking: Int. J. 28 (2): 652–669. https://doi.org/10.1108/BIJ-04-2020-0169.
Evans, M., P. Farrell, A. Mashali, and W. Zewein. 2021. “Critical success factors for adopting building information modelling (BIM) and lean construction practices on construction mega-projects: A Delphi survey.” J. Eng. Des. Technol. 19 (2): 537–556. https://doi.org/10.1108/JEDT-04-2020-0146.
Eybpoosh, M., I. Dikmen, and M. T. Birgonul. 2011. “Identification of risk paths in international construction projects using structural equation modeling.” J. Constr. Eng. Manage. 137 (12): 1164–1175. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000382.
Gao, R., P. Albert, C. Chan, W. P. Utama, and H. Zahoor. 2016. “Workers’ Perception of safety climate in international projects: Effects on nationality, religious belief and employment mode.” J. Constr. Eng. Manage. 143 (4): 04016117. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001226.
Gao, R., J. Wu, H. Wang, and S. Lyu. 2020. “International market selection of Chinese construction companies from the perspective of cultural distance.” In Proc., ICCREM 2020: Intelligent Construction and Sustainable Buildings. Reston, VA: ASCE.
Geher, G., and S. Hall. 2014. Straightforward statistics: Understanding the tools of research. Oxford, UK: Oxford University Press.
Gunduz, M., and H. A. Elsherbeny. 2019. “Operational framework for managing construction-contract administration practitioners’ perspective through modified Delphi method.” J. Constr. Eng. Manage. 146 (3): 1–15. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001768.
Hsu, C. C., and B. A. Sandford. 2007. “The Delphi technique: Making sense of consensus.” Pract. Assess. Res. Eval. 12 (Jun): 1–8. https://doi.org/10.7275/pdz9-th90.
Islam, M. S., and M. Nepal. 2016. “A fuzzy-Bayesian model for risk assessment in power plant projects.” Procedia Comput. Sci. 100 (Jun): 963–970. https://doi.org/10.1016/j.procs.2016.09.259.
Khouja, A., N. Lehoux, Y. Cimon, and C. Cloutier. 2021. “Collaborative interorganizational relationships in a project-based industry.” Buildings 11 (11): 502. https://doi.org/10.3390/buildings11110502.
Konara, P., and Y. Wei. 2017. Foreign direct investment as a catalyst for domestic firm development: The case of Sri Lanka. Plymouth, UK: Univ. of Plymouth.
Kumar, R. 2018. Research methodology: A step-by-step guide for beginners. New York: SAGE.
Kumari, R., and A. K. Sharma. 2017. “Determinants of foreign direct investment in developing countries: A panel data study.” Int. J. Emerging Mark. 12 (4): 658–682. https://doi.org/10.1108/IJoEM-10-2014-0169.
Lahdenperä, P. 2012. “Making sense of the multi-party contractual arrangements of project partnering, project alliancing and integrated project delivery.” Construct. Manage. Econ. 30 (1): 57–79. https://doi.org/10.1080/01446193.2011.648947.
Lei, Z., W. Tang, C. Duffield, L. Zhang, and F. K. P. Hui. 2017. “The impact of technical standards on international project performance: Chinese contractor’ experience.” Int. J. Project Manage. 35 (Jun): 1597–1607. https://doi.org/10.1016/j.ijproman.2017.09.002.
Li, G., C. Chen, G. Zhang, and I. Martek. 2020. “Bid/no-bid decision factors for Chinese international contractors in international construction projects.” Eng. Constr. Archit. Manage. 27 (7): 1619–1643. https://doi.org/10.1108/ECAM-11-2018-0526.
Loo, S. C., C. Wang, J. B. H. Yap, H. Abdul-Rahman, and L. C. Wood. 2020. “Globalisation entry decision-supporting tool for international construction risks.” Proc. Inst. Civ. Eng. Manage. Procure. Law 175 (4): 151–166. https://doi.org/10.1680/jmapl.20.00023.
Luo, J., and D. S. Santoso. 2023. “Critical factors affecting Chinese construction expatriates’ living and working conditions in Thailand: A Delphi study.” Int. J. Constr. Manage. 24 (10): 1066–1076. https://doi.org/10.1080/15623599.2023.2262248.
Meng, X. 2012. “The effect of relationship management on project performance in construction.” Int. J. Project Manage. 30 (2): 188–198. https://doi.org/10.1016/j.ijproman.2011.04.002.
Mok, K. Y., G. Q. Shen, and J. Yang. 2014. “Stakeholder management studies in mega construction projects: A review and future directions.” Int. J. Project Manage. 33 (2015): 446–457. https://doi.org/10.1016/j.ijproman.2014.08.007.
Mormina, M. 2019. “Science, technology and innovation as social goods for development: Rethinking research capacity.” Sci. Eng. Ethics 25 (3): 671–692. https://doi.org/10.1007/s11948-018-0037-1.
Murray, M., and J. Appiah-Biden. 2020. “Difficulties facing contractors from developing countries: Problems and solutions.” Accessed July 25, 2021. https://www.irbnet.de/daten/iconda/CIB8931.pdf.
Nelumdeniya, A. U., B. A. K. S. Perera, and K. D. M. Gimhani. 2023. “Usage of digital technology in improving the mental health of workers on construction sites.” Constr. Innovation. https://doi.org/10.1108/CI-08-2022-0214.
Nworie, J. 2011. “Using the Delphi technique in educational technology research.” Tech Trends 55 (5): 24–30. https://doi.org/10.1007/s11528-011-0524-6.
Ofori, G. 2012. New perspectives on construction in developing countries. Oxfordshire, UK: Routledge.
Ofori-Boadu, A. N., D. G. Owusu-Manu, D. J. Edwards, and F. Asiseh. 2021. “A conceptual model of subcontractor development practices for LEED projects.” Eng. Constr. Archit. Manage. 28 (4): 1196–1213. https://doi.org/10.1108/ECAM-08-2019-0425.
Ogbu, C. P., and E. M. Osazuwa. 2023. “Barriers to the growth of indigenous construction firms in Nigeria.” Eng. Constr. Archit. Manage. https://doi.org/10.1108/ECAM-03-2023-0211.
Pedersen, A. L., S. Utkilen, P. Wondimu, and O. Torp. 2021. “The risk of involving foreign contractors in Norwegian infrastructure market.” Procedia Comput. Sci. 181 (2021): 1196–1206. https://doi.org/10.1016/j.procs.2021.01.317.
Perera, B. A. K. S., R. Rameezdeen, N. Chileshe, and M. R. Hosseini. 2014. “Enhancing the effectiveness of risk management practices in Sri Lankan road construction projects: A Delphi approach.” Int. J. Construct. Manage. 14 (1): 1–14. https://doi.org/10.1080/15623599.2013.875271.
Perera, B. A. K. S., K. I. Ridmika, and M. K. C. S. Wijewickrama. 2021. “Life management of the quantity surveyors working for contractors at sites: Female versus male.” Constr. Innovation 22 (4): 962–986. https://doi.org/10.1108/CI-05-2020-0090.
Perera, B. A. K. S., and A. L. Samarakkody. 2020. “Managing financial and economic risks associated with high-rise apartment building construction in Sri Lanka.” J. Financ. Manage. Property Constr. 25 (1): 143–162. https://doi.org/10.1108/JFMPC-04-2019-0038.
Rajenthiran, N., H. A. S. Madhuwanthi, D. M. P. P. Dissanayake, and D. C. Sirimewan. 2020. “Cross-cultural dimensions and cross-cultural orientations in construction projects: Case study of Sri Lanka.” In Proc., of FARU 2020. Moratuwa, Sri Lanka: Faculty of Architecture Research Unit, Univ. of Moratuwa.
Santoso, D. S., and S. Soeng. 2016. “Analyzing delays of road construction projects in Cambodia: Causes and effects.” J. Manage. Eng. 32 (6): 05016020. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000467.
Saukko, L., K. Aaltonen, and H. Haapasalo. 2020. “Inter-organisational collaboration challenges and preconditions in industrial engineering projects.” Int. J. Managing Projects Bus. 13 (5): 999–1023. https://doi.org/10.1108/IJMPB-10-2019-0250.
Sodangi, M. 2023. “Towards attaining efficient joint ventures in international construction: The case of Saudi Arabia.” Eng. Constr. Archit. Manage. 30 (6): 2545–2563. https://doi.org/10.1108/ECAM-07-2021-0647.
Somiah, M. K., C. O. Aigbavboa, and W. D. Thwala. 2022. “Critical success strategies for the competitive advantage of indigenous construction firms in developing countries: A Ghana study.” Global Bus. Rev. 23 (5): 1188–1199. https://doi.org/10.1177/0972150920907258.
Sri Lanka Country Commercial Guide. 2021. “Official website of the International Trade Administration, USA.” Accessed February 16, 2022. https://www.trade.gov/country-commercial-guides/sri-lanka-marketoverview#:∼:text=Foreign%20direct%20investment%20(FDI)%20into,%2C%20ports%2C%20and%20telecommunications%20sectors.
Tengan, C., and C. Aigbavboa. 2018. “Validating factors influencing monitoring and evaluation in the Ghanaian construction industry: A Delphi study approach.” Int. J. Construct. Manage. 18 (Mar): 1–12. https://doi.org/10.1080/15623599.2018.1512353.
Tetteh, M. O., A. P. Chan, A. Darko, and G. Nani. 2023. “Factors affecting international construction joint ventures: A systematic literature review.” Int. J. Construct. Manage. 23 (1): 98–113. https://doi.org/10.1080/15623599.2020.1850203.
Tolsgaard, M. G., T. Todsen, J. L. Sorensen, C. Ringsted, T. Lorentzen, B. Ottesen, and A. Tabor. 2013. “International multispecialty consensus on how to evaluate ultrasound competence: A Delphi consensus survey.” PLoS One 8 (2): e57687. https://doi.org/10.1371/journal.pone.0057687.
Toor, S. U. R., and S. O. Ogunlana. 2008. “Problems causing delays in major construction projects in Thailand.” Construct. Manage. Econ. 26 (4): 395–408. https://doi.org/10.1080/01446190801905406.
Veerasanai, R., and A. Alias. 2022. “A review of foreign construction firm presence in the Malaysian construction industry.” Int. J. Construct. Manage. 22 (10): 1830–1843. https://doi.org/10.1080/15623599.2020.1742635.
Weerasekara, D. T., V. Disaratna, K. T. Withanage, and B. A. K. S. Perera. 2021. “Procurement management in the foreign-funded construction projects implemented in Sri Lanka.” Int. J. Construct. Manage. 23 (7): 1118–1130. https://doi.org/10.1080/15623599.2021.1956674.
Wignaraja, G., D. Panditaratne, P. Kannangara, and D. Hundlani. 2020. Chinese investment and the BRI in Sri Lanka. London: Chatham House.
World Bank. 2021. “Sri Lanka investment forum.” Accessed February 17, 2022. https://www.worldbank.org/en/news/feature/2021/06/10/foreign-investment-can-help-sri-lanka-build-back-better.
Yan, S., S. Chandrasiri, and J. A. Karunaratne. 2020. “Globalisation of Chinese enterprises through outbound direct investment: Evidence from Sri Lanka.” Econ. Res. 8 (1): 3–25. https://doi.org/10.4038/sljer.v8i1.122.
Zahoor, H., A. P. C. Chan, R. Gao, and W. P. Utama. 2017. “The factors contributing to construction accidents in Pakistan: Their prioritisation using the Delphi technique.” Eng. Constr. Archit. Manage. 24 (3): 463–485. https://doi.org/10.1108/ECAM-01-2016-0027.
Zhang, H., Y. Kang, W. Shen, and W. Tang. 2021. “Mitigating influence of institutional differences on international project performance by Knowledge Management.” In Proc., ICCREM 2021, 281–288. Reston, VA: ASCE.
Zhi, H. 1995. “Risk management for overseas construction projects.” Int. J. Project Manage. 13 (4): 231–237. https://doi.org/10.1016/0263-7863(95)00015-I.
Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 16 • Issue 4 • November 2024
Copyright
© 2024 American Society of Civil Engineers.
History
Received: Oct 23, 2023
Accepted: May 20, 2024
Published online: Aug 13, 2024
Published in print: Nov 1, 2024
Discussion open until: Jan 13, 2025
ASCE Technical Topics:
- Business management
- Construction engineering
- Construction management
- Contracts and subcontracts
- Convergence (mathematics)
- Developing countries
- Dispute resolution
- Ecosystems
- Engineering fundamentals
- Environmental engineering
- Legal affairs
- Mathematics
- Practice and Profession
- Project management
- Vegetation
- Water and water resources
- Water management
Authors
Metrics & Citations
Metrics
Citations
Download citation
If you have the appropriate software installed, you can download article citation data to the citation manager of your choice. Simply select your manager software from the list below and click Download.