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Challenges facing the project manager in planning and managing housing projects implemented by emerging contractors

Thesis (MBA (Business Management))--Stellenbosch University, 2008. / ENGLISH ABSTRACT: The project manager is facing many challenges when planning and managing an Emerging Contractor project. Constraints experienced by Emerging Contractors are exerting risks on the project and pose a challenge to the project manager to guide the project to successful completion.
The constraints and risks experienced on an Emerging Contractor project are mostly related to inexperience and unproven track record. The Emerging Contractor has not been in business long enough to build trust relationships with suppliers. Suppliers are limiting their exposure to risk and are therefore not prepared to supply material in bulk or on credit to the Emerging Contractor. The term Emerging Contractor is a well-known term in the South African construction industry, but no clear definition exists of what criteria qualifies a contractor to be an Emerging Contractor. The assumption in the industry is that an Emerging Contractor is a construction business which is 100% controlled and managed by a black person. Emerging Contractors are conducting business at the bottom end of the market where there is no barrier to entry. This makes the competition very severe and the profit margins are very slim. Even though the contract values are low, the Emerging Contractor projects require a considerable amount of effort to manage and are therefore not cost effective for the experienced project manager.
The constraints experienced by the Emerging Contractor can be addressed by co-opting experience to the project team to provide guidance, training and management assistance. The proposal will require additional funding, but after a few projects the Emerging Contractor would have built up a reputation as a successful contractor and will therefore be self sustaining. / AFRIKAANSE OPSOMMING: Die projekbestuurder moet baie uitdagings trotseer met die beplanning en bestuur van 'n Opkomende Kontrakteur. Beperkings wat deur die Opkomende Kontrakteur ervaar word lei tot 'n risiko vir die projek en bied dus 'n uitdaging aan die projekbestuurder om die projek te lei tot suksesvolle voltooiing. Die beperkings en risiko's wat deur 'n Opkomende Kontrakteur projek ervaar word, hou meerendeels verband met onervarendheid en gebrekkige ondervinding. Die Opkomende Kontrakteur is nog nie lank genoeg in die bedryf om vertrouensverhoudings met verskaffers op te gebou het nie. Verskaffers verskans dus hul blootstelling aan risiko en is dus nie bereid om materiaal in grootmaat of op krediet aan die Opkomende Kontrakteur te
lewer nie. Die term "Emerging Contractor" is welbekend in die Suid-Afrikaanse konstruksiebedryf, maar 'n duidelike definisie kon nie gevind word wat die vereistes stel om as 'n Opkomende Kontrakteur te kwalifiseer nie. In die konstruksiebedryf word dit algemeen aanvaar dat 'n Opkomende Kontrakteur 'n konstruksie besigheid is wat 100% deur 'n swart persoon beheer en bestuur word.
Opkomende Kontrakteurs ding mee op die intreevlak van die konstruksiebedryf waar daar
weinig min versperring vir toetrede is. Dit maak die kompetisie baie straf en die
winsmarge laag. Selfs al is die kontrakwaarde laag behels die Opkomende Kontrakteur
projek buitengewone aandag en bestuur en is dit dan ook nie 'n koste effekiewe projek vir
'n ervare projekbestuurder nie.
Die beperkings wat deur die Opkomende Kontrakteur ervaar word, kan aangespreek word
deur ervare diensverskaffers na die projekspan te bring om leiding, opleiding en
bestuurshulp te verskaf. Die voorgestelde projekbestuursplan benodig addisionele
fondse, maar na 'n paar projekte het die kontrakteur vir hom/haar 'n reputasie opgebou
wat hom/haar toelaat om volhoubaar te wees sonder die hulp van die diensverskaffers.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/5037
Date12 1900
CreatorsDe Wet, Phillippus Rudolph
ContributorsBotha, M. C., Stellenbosch University. Faculty of Economic and Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
RightsStellenbosch University

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