Critical Factors Inhibiting Performance of Small- and Medium-Scale Contractors in Sub-Saharan Region: A Case for Malawi

Table 3

Mean score ranking of variables by major players in the construction industry combined after subjecting each group to the Pareto principle.

Constraints believed to be important elements for Malawian small- or medium-scale contractors (SMCs)	Client mean^1	Client ranking^2	Consultant mean	Consultant ranking	Contractor mean	Contractor ranking	All players mean	All players ranking	Kruskal-Wallis test significant	Critical variable ranking
High lending interest regimes for SMEs offered by financial institutions^A	4.28	9	4.33	6	4.45	1	4.42	1	0.340	1
Stringent conditions for small- and medium-scale contractors to access capital^A	4.15	21	4.39	3	4.38	2	4.35	2	0.225	2
Fluctuation of currency/exchange rate^A	4.41	4	4.36	4	4.29	4	4.31	3	0.726	3
Stringent requirements for obtaining bonds/guarantees/sureties^A	4.00	35	4.11	24	4.30	3	4.24	4	0.106	4
High taxes^A	4.10	27	3.81	51	4.24	5	4.17	5	0.060	5
Inability to compete with bigger construction companies^C	4.18	20	4.31	8	4.13	8	4.16	6	0.830	6
Inflation of prices^A	4.21	15	4.00	36	4.11	10	4.11	7	0.480	7
Unavailability of credit lines from suppliers^A	3.69	59	3.86	48	4.21	6	4.10	8	0.001	8
Lack of incentive from government to encourage emerging contractors^A	3.90	46	3.97	43	4.16	7	4.10	9	0.166	9
Theft by employees^C	4.18	18	4.11	25	4.07	13	4.09	10	0.911	10
Unavailability of credit lines from banks^A	3.79	52	4.08	28	4.13	9	4.08	11	0.135	11
Stringent requirements for obtaining letters of guarantee^A	3.85	50	3.97	42	4.09	11	4.05	12	0.221	12
Uncertainty in prices of materials^A	4.18	16	4.09	26	4.01	16	4.04	13	0.746	13
Unstable interest rates^A	4.11	25	4.00	34	4.03	15	4.03	14	0.966	14
Rapid changes in the economy^A	4.11	24	3.69	55	4.05	14	4.01	15	0.042	15
Poorly prepared tenders or estimates^C	4.55	1	4.47	1	3.84	26	4.00	16	0.000	16
Lack of detailed deliberate construction policy to develop indigenous contractors^A	3.87	49	4.03	33	4.00	18	3.99	17	0.503	17
Unfair competition (contract price undercutting by bigger contractors)^A	3.59	67	3.64	62	4.09	12	3.97	18	0.019	18
Political interference^A	3.71	58	4.03	31	4.01	17	3.97	19	0.389	19
Corruption^A	4.05	31	4.17	20	3.88	22	3.94	20	0.580	20
Inadequate budget allocations^B	4.10	28	4.17	19	3.87	24	3.93	21	0.124	21
Lack of business management skills^C	4.51	2	4.28	11	3.77	31	3.93	22	0.000	22
Failure to provide collateral for securing financing^C	4.00	34	4.00	38	3.90	20	3.93	23	0.973	23
Poor financial management^C	4.46	3	4.28	12	3.78	30	3.92	24	0.001	24
Fraud by employees^C	3.90	47	4.00	39	3.89	21	3.91	25	0.760	25
Poor planning of work^C	4.36	8	4.25	14	3.75	33	3.89	26	0.000	26
Failure to meet deadlines^C	4.36	7	4.31	9	3.72	34	3.87	28	0.000	27
Inability to develop long-term strategy^C	3.97	36	4.31	7	3.79	27	3.87	29	0.021	28
Double taxing^A	3.74	54	3.67	59	3.88	23	3.84	30	0.272	29
Stringent requirements for obtaining insurance covers^A	3.49	72	3.50	69	3.94	19	3.83	31	0.005	30
Poor accounting^C	4.15	22	4.31	10	3.67	39	3.81	32	0.001	31
Failure to control materials on site^C	4.24	13	4.08	27	3.70	35	3.81	33	0.007	32
Poor record keeping^C	4.26	12	4.19	15	3.66	40	3.80	34	0.001	33
Lack of proper training in project management^A	4.26	10	4.19	16	3.65	41	3.79	35	0.000	34
Budgetary overruns^C	4.03	33	4.18	18	3.69	37	3.78	36	0.008	35
Lack of proper experience of project management^A	4.13	23	4.40	2	3.62	43	3.78	37	0.000	36
Failure to provide required quality of work^C	4.38	5	4.36	5	3.58	50	3.77	38	0.000	37
Poor planning of site^C	4.26	11	4.19	17	3.60	47	3.76	39	0.000	38
Poor company organisation^C	4.21	14	4.06	29	3.61	45	3.73	40	0.006	39
Lack of technical know-how^C	4.38	6	4.28	13	3.52	55	3.71	42	0.000	40
Project site management^C	4.05	32	4.11	23	3.55	51	3.68	47	0.001	41
Failure to provide reliable tenders^C	4.18	19	3.97	40	3.52	53	3.66	51	0.001	42
Lack of ICT knowledge^C	3.64	63	4.14	21	3.58	49	3.65	52	0.027	43
Poor personnel management^C	4.18	17	4.00	37	3.49	60	3.64	54	0.000	44
Poor contract management^C	4.08	29	4.14	22	3.45	65	3.61	56	0.000	45

: significant.
¹Mean score rating of constraints is based on the following: ≤1.5: 1 = strongly disagree; 1.5 < ≤ 2.5: 2 = disagree; 2.5 < ≤ 3.5: 3 = uncertain; 3.5 < ≤ 4.5: 4 = agree; and >4.5: 5 = strongly agree.
²Ranking of variables in the individual groups of the major players (i.e., clients, consultants, and contractors) is against all the 118 variables.
^AConstraints emanating for the business environment (external factors).
^BConstraints emanating from clients or client representations.
^CConstraints emanating from contractors’ deficiencies.