Factors Influencing Performance of Building Construction Companies: A Case of Selected Firms in Kilifi County, Kenya
Abstract
The demand for buildings in Kenya has led to developers encroaching land demarcated (Gazzeted) as public land. Of recently the Kenya government has addressed land grabbing issues by demolishing unplanned building structures. Scarcity of land has forced developers to opt for high rise buildings hence a rise in cases of collapsed buildings forcing government to take measure in combating illegal unapproved building constructions. The purpose of this study was to establish factors that influence performance of building construction companies in Kilifi County, Kenya. Researcher collected a sample of 51 from 58 Target populations. Researcher had four independent variables for matters concerning objective, questions, and hypothesis under study: firstly independent variables which were :Contractors competences denoted by X1; Contractors compliance with government policies X2; Contractors financial capacities X3 and contractors technological capabilities X4, Secondly Dependent variable was performance of building firms (Y). Data ware tabulated, presented through frequency and finally analyzed with the aid of statistical Package for social services (SPSS version 24). Researcher utilized a Likert scales ranging from scale 1 - Strongly Disagree to 5-Strongly Agree. The findings revealed that all independent had a mean greater than 3 meaning they had influence on performance of building construction firms.(Contractors competences X1 = 4.925; Contractors compliance with government policies and regulations X2 = 4.90 contractors financial X3 = 4.93 Contractors technological capabilities X4 = 4.915 and dependent variables, Performance of building contractors had Y= 4.9). The study concludes that contractors compliance with government policies had the highest mean of 4.98 and Technological capabilities were the lowest with a mean of 4.195. The study recommended planning of works before execution, Stakeholders participation, utilizing work breakdown structure and work schedule to monitor progress of work. Fiscal strategies adopted to assess loans at low interest rate. Contractors encouraged regularly saving money and acquiring assets for financing future projects
Key words: Contractors competences; Government policies and regulations; Financial capacities; Performance of building contractors; Technological capacities.
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