The Effects of Hyper Inflation On Contractor Performance A Case Study
The Effects of Hyper Inflation On Contractor Performance A Case Study
Chapter 1 Chapter 2
Introduction The Zimbabwean Construction industry and
contractor performance
Chapter 3 Chapter 4
The impact of inflation on performance Research Methodology
Chapter 5 Chapter 6
Data presentation and analysis Summary, Conclusions and recommendations.
Chapter 1
INTRODUCTION
1.0 INTRODUCTION
The intention of this chapter is to set out the research context of this study and define the aim
and objectives of the research study. A brief discussion of the scope of the research and
research methodology is also presented followed by an outline of the way the report is
structured.
retention. Sir John Egan in Rethinking Construction (1998) observed that clients want projects
to be delivered on time, within budget, free from defects, efficiently, right first time, safely and by
profitable companies.
Contractors remain poor performers due to a plethora of reasons. The risks contractors grapple
with to deliver a satisfactory project are numerous. Contractors will have to contend with project
physical factors, adversarial relationships, unfriendly contractual terms, incomplete designs and
unsympathetic clients and their advisors. The economic environment creates additional risks
which the contractor must contain and overcome in order to meet the clients’ expectations.
It has been generally argued that most of the above factors result from the procurement route
chosen by the client from the onset. Traditionally, contractors are brought in through competitive
tendering when all designs and details are completed without their input and yet are expected to
deliver the project as required. Thus, it is against this background that this researcher decided
affects contractor performance in terms of time, cost, quality and sustainable development of
In pursuing this research study the focus of attention is on the contractor and the construction
project will be the unit of analysis. Thus, the research covers both private and public sector
work, civil engineering and building projects, as well as the different types of facilities (e.g.
commercial or educational) with particular reference to the case study Kuchi Construction (Pvt)
Ltd. Kuchi Construction will be used as the unit of analysis as a case study. In addition, industry
data will be collected from CIFOZ and ZBCA as well as the Ministry of Public Construction and
National Housing. The study focuses on construction projects within Zimbabwe to ensure that
potential variations due to the national context are controlled for and kept uniform as much as
possible, and to ensure that findings reflect the general trend across Zimbabwe.
1.4 METHODOLOGY
The research methodology for this study is, to a large extent, quantitative (positivist), which
implies that the research process is largely deductive. Within this general positivist framework,
elements of the qualitative approach are also incorporated to provide alternative insight into the
phenomenon of contractor performance. Research methods applied include a literature survey,
case study with the primary data collected through interviews and questionnaire surveys. High
The study commences with an in-depth literature review focusing on the areas of contractor
performance and an in-depth study of the case study organisation to draw out those
The research report will consist of five (5) chapters, organised as shown in Figure 1.1.
Chapter 1 will outline the context within which the research is undertaken, and sets out the aim
and objectives. The scope and the research methodology applied will be also briefly outlined.
Chapter 2 presents a review of the literature focusing on the structure and profile of the
and the factors influencing contractor performance. In particular, this chapter seeks to highlight
the performance deficit that still exists in the Zimbabwean construction industry, and the hyper-
Chapter 3 - this chapter seeks to draw attention to the lack of empirical research on
hyperinflation and its impact on project performance. The chapter discusses the concepts of
hyper-inflation, the impact of hyper-inflation in determining project outcomes, and the theories
this case quantitative research methodologies, with aspects of the qualitative approach
incorporated to support and improve the research design. Arguments are presented justifying
this choice in particular the case study approach and the specific research methods applied to
Chapter 5 presents researched data and discussion on contractor performance based on the
information gleaned from the case study company (Kuchi Construction) and the assessment of
projects in Zimbabwe, where performance is the degree to which the project objectives are
achieved. The performance of the construction projects as assessed on the basis of the various
outcomes pursued by stakeholders including inter alia cost, time, quality, health and safety,
Chapter six concludes the research report with a focus on the research conclusions and
recommendations.
Chapter 1
Introduction
Chapter 2 Chapter 3
The Zimbabwean Construction The impact of inflation on
industry and contractor performance
performance
Chapter 4
Research Methodology
Chapter 5
Data presentation and
analysis
Chapter 6
Conclusions