Barriers on small scale contracors to enter and survive compettitive construction industry in Sri Lanka

Abstract

Many challenges are facing by business managers when there are projects involved in their business in construction industry. Construction is industry is not an exception when project comes in to their businesses as a part of the business activity. Many barriers are directly resulting to operations related and some are indirect marginal activities of SME level for its survival. While managing a SMEs, most ofthe time, challenges are addressed by the SMEs to ensure the success and survival. Many considerations are included in communication, workforce, safety, time constraints, and nature ofthe project, quality and time management. From a literature review six predominant problems currently facing the construction industry were identified. With the analysis of data and above constrains in the field of construction SMEs survival, it reveals that the clear relationship between employee turnover, application of new technology, government regulations, financing, contractor awareness of environmental issues, project management, knowledge transfer and survival ofSME construction companies. The underlying aim ofranking these problems being towards developing a strategy for improving the performance of the construction sector and improving client satisfaction through the satisfaction of SME operations. Accordingly, research question is formulated to address the issue of “what are the existing situations of competitive construction industry in Sri Lanka and what are the barriers to enter and survive in competitive construction industry in Sri Lanka?” The opinions of Construction Company concerning the severity ofthese problems was obtained through a questionnaire survey. Finings revealsthat, there are direct relationship between employee turnover, application of new technology, government regulations, financing, contractor awareness of environmental issues, project management, knowledge transfer and survival of SME construction companies. This was proved by using the fishbone model. With the findings ofthis research, it is not only applicable to locally, but also to address to mitigate issues related to survival of construction SMEs at global level.