Performance analysis of small and medium-sized construction firms in Oyo State, Nigeria

Abstract

This article examines time and cost performance of projects executed by small and mediumsized construction firms with a view to enhancing the firms' capabilities. The study adopted a quantitative descriptive analysis based on primary and archival data. Sixty-eight (68) valid questionnaires obtained from top managers of the firms provided primary quantitative data for the assessment. Secondary data were collected on the initial and final contract sums as well as on the initial and completion times of 184 public projects executed by the firms. Data collected were analysed using descriptive analysis. The findings indicated that the small firms specialised in general building works, while the medium-sized firms specialised in civil works, in addition to general building works. Project values in the case of small construction firms ranged between N1 million and N50 million, while those of medium-sized construction firms ranged between N51 million and N100 million. The performance index (PI) of the projects executed by the firms showed a general underperformance level. Approximately 96.12% and 31.03% of the projects executed by small and medium-sized firms, respectively, had cost performance index (CPI) at budget level (CPI = 1). Meanwhile, 37.42% of the projects executed by the small firms and 24.13% of those executed by medium- sized firms were completed as planned, that is, they had schedule performance index (SPI = 1). The article provides implications for understanding the influence of the construction firms' profile in relation to their PI that could assist in the capability development of small and mediumsized construction firms.