Track: Construction Management

Abstract

The performance of the South African construction industry is a major cause of concern in the country. There are factors known to influence the performance of the construction industry globally. Thus, this study seeks to investigate the factors influencing the performance of the construction industry, particularly in the Limpopo province, South Africa. Primary and Secondary data were used for this study. Primary data was obtained through the questionnaire survey which was distributed to professionals in the construction industry and secondary data was extracted from studies done previously by other researchers and scholars. Quantitative method was adopted whereby a total of 50 survey questionnaires were distributed, however only 35 questionnaires were returned which gave a response rate of 70%. To analyse Statistical Packages of Social Sciences (SPSS) was used for the study through the use mean item scores and standard deviations. The internal consistency and reliability of the research instrument was determined using Cronbach’s alpha test, which had a value of 0.866.  The study revealed significant factors affecting the performance of the construction industry as; Instability/escalation of construction material prices, project cost overruns, backlogs of payment to contractors, material and equipment, budget updates for construction projects, incapacity to spend funds received for construction projects, and inefficient funding of construction projects. The study contributes to the body of knowledge in relation to what influences the performance of the construction industry. It is evident that economic growth, regulatory bodies, skills and training programms influences the performance of the construction industry in South Africa. Therefore, an increase in infrastructure investment and firm regulatory implementation measures by CIDB can accelerate the economic growth and improve the performance of the construction industry in Limpopo Province, South Africa.