1. National University of Science and Technology
Faculty of the Built Environment
Department of Quantity Surveying
An analysis of the resource management strategies and their effectiveness on construction
projects during the implementation phase. A case of Harare
By
Jacob Mhlanga N01415763W
Supervisor: Dr. M. Nyathi
A research submitted in partial fulfilment of the requirements of Master of Science degree in
Construction Project Management
August 2016
2. ii
DECLARATION
I, Jacob Mhlanga, do hereby certify for this thesis that:
a) Except where due acknowledgement has been made, the work presented here is that of
myself alone,
b) The work has not been submitted previously, in whole or in part, to qualify for any other
academic award;
c) The content of the thesis is the result of work which has been carried out since the official
commencement date of the program, and
d) That any editorial work, carried out by a third party is acknowledged.
Signed by:…………………………………………..
Jacob Mhlanga
August, 2016
3. iii
ACKNOWLEDGEMENTS
I would like to acknowledge Dr M Nyathi for his invaluable assistance and unwavering
commitment as well as input that offered me direction in this study. I also like to appreciate my
classmates for their support. Lastly, I would like to express my heartfelt gratitude to my family
and friends for their level of understanding and support during the course of the study.
4. iv
DEDICATION
This study is dedicated primarily to the Most High, my personal Lord and Savior Jesus Christ who
gave me the strength, wisdom and perseverance during the course of the research. I also would
like to dedicate this study to my late mother, Rosemary Mhlanga and my best friend and
companion Sicelumusa Adelpha Ncube.
5. v
ABSTRACT
Resource management is the epicenter of viable project management during the implementation
phase of any project. Lately, various scholars have argued that project completion is not a measure
of project success if resource efficiency and effectiveness is disregarded. The purpose of the study
was to analyze the effectiveness of the resource management strategies used by contractors during
project implementation phase. Therefore, the study was of paramount importance as it provided a
clear perspective of the current state of affairs in contractors’ resource management strategies in a
resource constrained economy. The data was collected from contractors, professionals and clients.
Both qualitative and quantitative methods were used in the study. There was 76% response rate
from the targeted sample. The study noted diverse resource management strategies used by
contractors during project execution. By and large a majority of these contractors are stuck in the
use of traditional resource management methods, such as project based recruitment, paper-based
information systems, bulk purchasing, disposal of worn out machinery amongst others. However,
this is at odds with the global trends which have seen an influx of computer aided systems such as
e-sharing, synchronized estimating and procurement softwares. The general adoption of these
systems and softwares in Zimbabwe has been low constituting only 22% of the industry as Candy
and Buildsmart are deemed expensive to license and run by contractors. However, the use of
Microsoft Excel and Microsoft Projects dominates the industry. On the other hand, the critical path
method and resource levelling techniques have yielded favorable results in developed countries,
whilst in the Zimbabwean industry these are not effective. Accordingly, the CPM has been viewed
as a planning technique which is not religiously followed during project implementation for use in
tandem with resource levelling. Furthermore, the study concludes that contractors’ failure to apply
effective resource management strategies culminated to poor performance trends as evidenced by
late completion of projects, clientele dissatisfaction, cost overruns, project failure, and contractors’
loss of the market share. Therefore, various practical suggestions on the adoption and application
of resources management strategies were made in this study.
6. vi
CONTENTS
DECLARATION ..........................................................................................................................................ii
ACKNOWLEDGEMENTS .........................................................................................................................iii
DEDICATION .............................................................................................................................................iv
ABSTRACT..................................................................................................................................................v
CONTENTS.................................................................................................................................................vi
LIST OF TABLES .......................................................................................................................................ix
LIST OF FIGURES......................................................................................................................................ix
CHAPTER 1: INTRODUCTION .................................................................................................................1
1.0 BACKGROUND..........................................................................................................................1
1.1 PROBLEM STATEMENT ..........................................................................................................6
1.2 AIM ...............................................................................................................................................6
1.3 RESEARCH OBJECTIVES..........................................................................................................7
1.4 RESEARCH QUESTIONS..........................................................................................................7
1.5 JUSTIFICATION..........................................................................................................................7
1.6 ASSUMPTIONS OF THE STUDY..............................................................................................8
1.7 LIMITATIONS .............................................................................................................................8
CHAPTER OUTLINE ..................................................................................................................................9
CHAPTER 2 LITERATURE REVIEW..................................................................................................... 10
2.0 INTRODUCTION..................................................................................................................... 10
2.1 THE CONSTRUCTION INDUSTRY ....................................................................................... 10
2.2 OVERVIEW OF ZIMBABWEAN ECONOMY...................................................................... 11
2.3 ZIMBABWEAN CONSTRUCTION INDUSTRY ................................................................... 14
2.4 NATURE OF CONSTRUCTION PROJECTS.......................................................................... 14
2.5 RESOURCES MANAGEMENT IN CONSTRUCTION.......................................................... 15
2.5.1 Construction Resources Defined ........................................................................................ 16
2.5.2 Resources Management...................................................................................................... 20
2.5.3 Correlation between Project Management and Resources Management ........................... 21
2.5.4 Theoretical techniques and strategies of Resources Management ..................................... 22
2.6 CRITICAL PATH METHOD.................................................................................................... 23
Resource Scheduling.......................................................................................................................... 24
Resource Loading............................................................................................................................... 25
Resource Availability Analysis.......................................................................................................... 26
2.7 RESOURCES LEVELLING...................................................................................................... 26
2.8 BENEFITS OF RESOURCES MANAGEMENT STRATEGIES ............................................ 31
2.9 IMPLEMENTATION OF RESOURCE MANAGEMENT STRATEGIES.............................. 34
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2.10 CHALLENGES OF IMPLEMENTING RESOURCES MANAGEMENT STRATEGIES..... 36
2.11 CONSEQUENCES OF POOR RESOURCES MANAGEMENT............................................ 38
2.12 THEORETICAL GAP .............................................................................................................. 40
2.13 CONCLUSION ......................................................................................................................... 41
CHAPTER 3: RESEARCH METHODOLOGY........................................................................................ 42
3.0 INTRODUCTION...................................................................................................................... 42
3.1 AREA OF STUDY..................................................................................................................... 42
3.2 RESEARCH DESIGN ............................................................................................................... 42
3.2.1 RESEARCH APPROACH..................................................................................................... 43
3.2.2 RESEARCH METHODS....................................................................................................... 44
3.2.2a. Qualitative Research............................................................................................................... 44
3.2.2b Quantitative Research......................................................................................................... 45
3.2.2c Mixed Methods................................................................................................................... 45
3.3 TARGETED POPULATION.................................................................................................... 45
3.4 SAMPLING ............................................................................................................................... 46
3.4.1 Sample and study units....................................................................................................... 46
3.4.2 Sampling Techniques ......................................................................................................... 47
3.5 DATA COLLECTION TOOLS................................................................................................. 49
3.5.1 Secondary Sources ............................................................................................................. 49
3.5.2 Primary Sources ................................................................................................................. 49
3.5.3 Data Collection Instruments............................................................................................... 49
3.6 DATA PRESENTATION AND ANALYSIS............................................................................ 51
3.7 RELIABILITY AND VALIDITY ............................................................................................. 51
3.8 ETHICAL CONSIDERATIONS ............................................................................................... 52
CHAPTER 4: DATA PRESENTATION AND ANALYSIS..................................................................... 54
4.0 INTRODUCTION...................................................................................................................... 54
4.1 RESPONSE RATE........................................................................................................................... 54
4.2 CONTRACTORS’ PERSPECTIVE IN RESOURCES MANAGEMENT ............................... 55
4.2.1 PROJECTS MONETARY VALUE....................................................................................... 55
4.3 CONTRACTORS KEY PROJECT RESOURCES.................................................................... 57
4.4 RESOURCES MANAGEMENT............................................................................................... 59
4.5 CONTRACTORS’ RESOURCES MANAGEMENT STRATEGIES....................................... 60
MATERIALS..................................................................................................................................... 61
MONEY ............................................................................................................................................. 63
MACHINERY.................................................................................................................................... 65
MANPOWER..................................................................................................................................... 66
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LIST OF TABLES
2.1 Real GDP Growth 12
3.1 Sample size 47
4.1 Response rate of the study 54
4.2 Priority ranking of resources 57
4.3 Level of effectiveness of resources management strategies 68
4.4 Effectiveness of resource levelling techniques 73
4.5 Project XYZ Rebranding Project Information 78
4.6 Consequences of poor resource management 83
LIST OF FIGURES
2.1 Civil contract example of site manpower 25
2.2 Resource levelling techniques 28
4.1 Contractors’ respondents composition 55
4.2 Monetary value of projects undertaken by contractors in 2015 56
4.3 Project resources priority list 58
4.4 Effectiveness of resource management strategies 68
4.5 Construction Computer softwares 70
4.6 Application of CPM 71
4.7 Effectiveness of resource levelling techniques 73
4.8 Consequences of poor resource management 82
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CHAPTER 1: INTRODUCTION
1.0 BACKGROUND
Construction resources management is a global phenomenon that project managers in the industry
are seized with as they pursue successful implementation of their projects. Preston (1976) states
that the construction industry exists in an environment that is in a state of flux earmarked with
different dynamics emanating from technological to economic changes. Despite all these dynamics,
the construction industry is still attributed to being responsible for the provision of services that
other industries rely on, hence the need for development of viable resources management strategies
(Idoro, 2010). For example, industries such as manufacturing, agriculture, tourism and transport
all depend on the infrastructure provided by the construction industry.
It is against this background that construction industry is deemed to possess such a strategic role
in the economic development of nations across the globe (Moavenzadeh and Rossow, 1975, Idoro,
2010, Kass 2012). With such a pivotal role in economic development, construction industry’s
contribution to the gross domestic product in different countries throughout the world is of great
significance (Idoro, 2010). However, it is worth-noting that despite all its potency to bolster the
global economy, the construction industry exists in a constrained environment marred with limited
resources.
Due to the scarcity of resources, it is evident that nowadays it’s not just a matter of completing a
project, but doing so in a resource effective manner (Shaker, 2007, Idoro, 2010, Nagaraju et al
2012). Haddad (2006), further substantiates this assertion stating that, successful completion of
projects requires all resources to be efficiently managed as failure to do so has detrimental effects
on project execution. Contextually, it can be deduced that the fulcrum upon which successful
project execution is hinged on is the management of resources.
According to Kass (2012) and PMBOK (2013), construction projects are viewed as finite
endeavours that are allotted limited resources. The purpose for allocation of finite resources in a
project is due to the fact that resources are scarce and yet corporates seek to realize return to their
investments. Mangore and Chigara (2012) and Nagaraju et al (2012) further add that the nature of
the construction projects is their voluminous consumptive ability of resources and hence the
industry requires to employ effective management skills of these large investments. In tandem
with this assertion, due to the large amounts involved in construction projects, the main thrust
11. 2
during project implementation is tailored towards the efficient resource exploitation as this would
provide guidance on how these are allocated during project successful execution. This argument
substantiates the findings of the study done by Ofori (1980) which claimed that construction
industry is deemed a service industry that acquires its main inputs from different sectors in the
economy and hence such demands require efficient usage of resources during project execution.
Therefore, upon realization of the complexity of the nature of construction projects, there has been
a need for the implementation of resource management strategies and techniques so that
contractors boost their resource usage efficiency in the industry (Kass, 2012). Project resources
include mainly money, materials, manpower and machinery (Idoro, 2010). Nagaraju et al (2012)
defines a resource as an entity that contributes to the accomplishment of project activities such as
manpower, material, money, equipment, time or space. These studies further agree that resources
are scarce, therefore project managers are called in to be actively involved in their management so
that projects are successfully implemented.
Preston (1976) supplements that in the construction industry project managers must master the art
of knowing resource availability and how to distribute these resources economically. In the same
vein, Nagaraju et al (2012) underscored that resources management would require the project
manager to develop an effective schedule or plan that would be an aiding tool in controlling the
firm’s resources during project execution. The study further enhances that this is crucial in the
delivery of a project within limited resources available. It is imperative to note that in pursuit of
effective and efficient project resources management, completion of a project requires a judicious
planning, scheduling, allocation and controlling of available resources which is made possible by
implementing proper and effective resource management techniques (Mendoza, 1995, Shaker,
2007).
Due to the complexity of construction projects it is of essence that resources be subjected to
resource management techniques. In pursuit of project resources management, project managers
engage mainly the following processes; planning, organizing, executing, monitoring, and
controlling (Ahuja et al 1994). Various scholars have defined resources management in the
following manner:
Resources management is defined as a means to achieve better productivity, which should
be translated into cost reduction (Kass, 2012).
Baghele (2014) defines resource management as the efficient and effective deployment of
an organization's resources when they are needed
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Kafka (2007) defines construction resources management as a concept of overseeing and
strategically managing every physical asset, from consumables to tools and equipment in
every company department, for the advancement of the company.
From these definitions it can be seen that resource management is a means by which firms seek to
use their available resources in a cost effective and efficient manner, accomplishing their corporate
project objectives and meeting their clientele requirements. Resource management is an exercise
that requires techniques and tools for it to be effectively done. Sawalhi nd Enhassi (2009) states
that various studies have revealed that the most common management tools in construction are
work break-down structures, bar charts and linked bar charts, critical path method, resource
levelling, schedule crashing and schedule updating. However, certain studies argue that Gantt chart
is the most widely used management tool because of its simplicity and applicability in all phases
(Yang, et al 2009). Lately, there has been a lobbying within project resource management for the
adoption and implementation of Critical Path Method (CPM) and Resource Levelling, hence these
were considered in this study.
Agundu et al (n.d) state that CPM involves systematic planning, scheduling, and controlling of
projects. It is further noted that this tool produces the series of interrelated network of activities
that necessitate project implementation. Project managers then use these network of activities to
come up with the critical path that is defined as the longest route in the network and any delay in
an activity in this path would elongate the project duration (Baghele et al, 2014). However, Kass
(2012) adds that the sound engineering judgment and methodology used by the project manager is
key in coming up with the CPM and hence the tool is deemed essential. Mendoza (1995), Kastor
and Sirakoulis (2007) and Joshi and Patil (2015) argue that CPM is based on the assumption that
there are unlimited resources for the execution of the activities, though in real projects, resources
are limited.
To buttress the CPM method, the project managers use other methods such as resource levelling
in project execution. Agundu et al (n.d) state that the use of information obtained to develop a
CPM can be correlated with the resource levelling technique to produce a detailed project schedule.
Contextually, Ludwick (n.d) further echoes the same notions stating that nowadays projects
schedule should be done taking into consideration the limitedness of resources. According to
Dubey (2015), referring to the PMBOK (2013) states that resource levelling is a technique in which
start and finish dates are adjusted based on resource constraints with the goal of balancing demand
for resources with the available supply. The study further identifies various ways of carrying out
13. 4
resources levelling and these include, splitting, delaying, levelling and overtime. Nagaraju et al
(2012) further add that resource levelling attempts to keep the requirements for a construction
resource as constant as possible over the duration of the project. Consequently, Dubey (2015)
states that the non-critical activities are shifted within the schedule using the available total float
in order to level resource usage and the planned project completion date is unchanged as a result
of the levelling process. Preston (1976) adds that resource levelling can be accomplished by
shifting non-critical activities within any time allowance between the late finish time and the
earliest start time of succeeding activities. It can be seen that the complementary use of these two
techniques is crucial in ensuring that the non-critical activities are identified and resources are
assigned to where they are useful and productive.
Various studies have been carried out in relation to the resource management strategies and
techniques and these noted the following key aspects:
Preston (1976) study on resources management pointed out that endogenous variables
available to the industry are its resources, men, money, material, equipment, time and space
and therefore the adaptive control of these variables would allow the opportunity to meet
the requirements of the dynamic environment
Kafka (2007) laments that ineffective resources management leads to financial impairment,
costly project delays, lost time and decreased productivity
Kastor and Sirakoulis (2007) study on resource scheduling argue that the use of scheduling
tools in resource management is not sufficient as these assume the abundance of resources
and hence the need to have other management techniques such as resource levelling,
crashing and schedule control.
Kass (2012) postulates that resource management systems within building contractors in
the Gaza Strip explored the local practice in construction resources management and
developed a construction resources management system to facilitate the management of
construction resources mainly in the building construction. The study noted that successful
management of construction resources has to be based on updated information and
processed utilizing a well-designed construction resources management system.
Nagaraju et al (2012) points out that state-of-the art resource management is essential for
a construction project to succeed in fulfilling its project objectives. Allocation of resources
for activities is necessary in construction domain to complete the project within the
scheduled time.
14. 5
Joshi and Patil (2015) in their study on resource scheduling in construction projects stated
that despite the availability of management tools such as CPM and PERT project delays
are still prevalent and mainly due to insufficient supply of resources
Dubey (2015) states resource levelling emphasizes the need to examine resources
allocation to carry out specific tasks in a project, as their availability within a given firm is
always limited. While preparing the schedule structure, the Project Manager might
schedule certain tasks in parallel and in such cases it might be possible that the same
resource is being used in both the parallel tasks, while its availability is limited
In the Zimbabwean context:
Saungweme (2011) noted that Zimbabwe has not been spared from resource scarcity
and singles out skills flight, shortage of materials, and liquidity crunch as the major
drivers of construction failure in Zimbabwe.
Mangore and Chigara (2012) in their study on an analysis of the implications of
resources management on building projects noted that despite the resources
management systems that the contractors have put in place the fact that their projects
were characterised by time and cost overruns raised questions on the effectiveness and
efficiency of these systems. The study further argues that many studies have focused
on resource scheduling and a very few have been done on resource planning and
management.
From the above studies it can be seen that in the Zimbabwean context resources management
strategies are a topical issue since the economy is characterised by liquidity crisis, skills exodus,
limited foreign direct investments, and low capacity utilization in the manufacturing industry (CZI,
2012). However, despite being such a crucial issue, there is limited literature on resources
management strategies that operational local contractors have adopted and are implementing to
combat such harsh economic conditions, an observation which has motivated this particular study.
A local contractor is defined as a company which is originally from Zimbabwe and is wholly by a
Zimbabwean citizen.
Ibbs and Nguyen (2007), argue that resource correlated matters are frequently unheeded even
though their impact affects project implementation. Contextually, lack of resources management
strategies leads to exacerbated project cost and time overruns, delays, losses, skills exodus,
clientele dissatisfaction and frustration or eventually project abandonment. Therefore, this study
seeks to investigate the resource management strategies that local contractors have adopted and
15. 6
are implementing during project execution in nexus with theoretical framework of critical path
method and resource levelling techniques and their overall impact on projects.
1.1 PROBLEM STATEMENT
Amongst an array of factors, successful implementation of construction projects is dependent on
the management of resources. Since projects are finite, they require proper allocation of resources
as well as viable management strategies. Resource planning, allocation, levelling and smoothing
are some strategies required at every phase in project execution, making resources management
an essential practice in the industry. Kastor and Sirakoulis (2009) state that the scarcity of
resources is a usual reason for project delays thus needs judicious management.
Currently, the Zimbabwean economy is bedevilled by an acute shortage of resources mainly
money, machinery, manpower (lost through brain drain) and materials. The banking sector is
charging exorbitant interest rates which discourages contractors from borrowing to finance their
projects (Mukumba, 2007, Nyakayedza, 2012). Consequently, limited access to financial facilities
has plunged contractors to using obsolete plant and equipment which affects productivity and
compromises the project duration and quality. However, in some cases, contractors receive down
payments from clients and due to financial needs, they divert project finances which leads to
project delays or eventually failure. Nyakayedza, (2012) further states that low capacity utilization
of the manufacturing industry has affected availability of raw materials. Whilst Mangore and
Chigara (2012) noted with concern that ineffective resource management systems had marred
projects with delays, financial losses, poor quality and cost overruns and in some instances, project
abandonment.
Consequently, in the Zimbabwean construction industry such retrogressive traits have become a
norm, which has seen contractors’ viability in the industry being greatly depleted and clientele
confidence on the local companies plummeting as well. Therefore, when these trends continue
unabated local contractors would become less competitive as they lose the market share to foreign
contractors which would negatively affect their penetration into the global market.
1.2 AIM
The overall purpose of this study is to analyse resource management strategies that contractors in
developing countries have established in managing their resources during project implementation
and evaluate their effectiveness.
16. 7
1.3 RESEARCH OBJECTIVES
To explore the resource management strategies that local contractors have adopted and
implemented in their projects.
To determine the effectiveness of resource management strategies used by local contractors
To analyse the relationship between the theoretical resource management strategies and
the practical approach as applied by contractors
1.4 RESEARCH QUESTIONS
What are the resource management strategies that local contractors have implemented in
their projects?
How effective are the resource management strategies that are adopted by local contractors?
Is there any link between the theoretical resource management strategies and those
implemented by local contractors?
1.5 JUSTIFICATION
The construction industry exists in the nucleus of the economic hub of Zimbabwe. In that particular
hub there are other different sectors mainly, manufacturing, agriculture, tourism and transport. It
is important to note that all these sectors are closely linked with the construction with some either
being providers of inputs for projects or beneficiaries of the finished infrastructure. This makes
construction industry to be a significance player within the economy. It is when the current projects
are executed in a resource efficient manner that the economy of Zimbabwe as a whole gleans some
dividends. The main thrust for Zimbabwean economic growth is that the available limited
resources are used to derive maximum potential within the economy. The construction industry
makes this possible by the adoption of resource management strategies during project execution.
CIFOZ and ZBCA which are statutory bodies that govern the contractors within Zimbabwe would
also benefit from the study through the expansion of the clientele base that shall be attracted by
the efficiency of contractors. These bodies would see the clients gaining confidence again in their
members and in so doing this bring about business for the local contractors.
Construction companies are profit making firms that have corporate goals and chief amongst those
aims is the return on their capital. When the contractors adopt the resource management strategies
not only would they execute their projects efficiently but they would be able to realise returns on
their investments in these projects. High on the list of benefits for the contractors is the fact that
they would be able to do multiple projects and level their resources such that no project would
suffer in the process. It is key to note that having multiple projects means that the clientele base of
17. 8
contractors would have increased and this also boosts their experience. As these contractors
increase their clientele base they would also increase their influence in the market and they could
compete global and thus also benefitting the nation of Zimbabwe.
Lastly the clients would be able to have their projects on schedule and also within budget. The
main reason why projects become costly and delayed is mainly because the management team is
not effective enough in controlling the projects. Therefore, when contractors implement the
resource management strategies, they would become actively involved in controlling the projects
and in so doing the clients would be able to receive their finished projects on time.
1.6 ASSUMPTIONS OF THE STUDY
The study made the following assumptions:
a) Majority of the contractors operated in Harare and Bulawayo and in these cities there is
much construction activities as compared to other cities in Zimbabwe.
b) The respondents were sent interview guides through email and then interviews were then
conducted later on. Some questionnaires were filled in whilst the researcher was there to
clarify it through an informal interview.
c) All contractors have resource management strategies framework that they apply.
1.7 LIMITATIONS
As the study progressed, the following obstacles were encountered:
a) Financial Constraints
The major setback that limited the study was the unavailability of finances to fund the extensive
operation and visits of sites to carry out observation of projects under constructions as well as to
cover as man contractors as possible. This limited the number of questionnaires that were
administered.
b) The nature of operations within the contractors
The fact that the construction sector is characterised by projects that are located in different sites,
the study did not meet as many as possible of the intended professionals such as site quantity
surveyors and site managers. The study had to glean responses form the available top management,
and these acknowledged limited sentience on the subject understudy
18. 9
CHAPTER OUTLINE
CHAPTER 2: LITERATURE REVIEW
This chapter gives a detailed outline of the literature related to the area of study. This information
is gathered from textbooks, journals, magazines, newspapers and the internet. This involves
citations by different scholars and how they have viewed the resources management strategies of
contractors.
CHAPTER 3: RESEARCH METHODOLOGY
It focuses on the research methodology that was used during the research. It therefore, gives a
detailed procedural framework on how the data was collected. This includes the research design,
target population, sample, data collection procedures as well as the data analysis plan.
CHAPTER 4: DATA PRESENTATION AND ANALYSIS
The chapter focuses on presenting and analysing the collected and collated data. These finding
shall then presented in form of tables, graphs and charts and analysed in relation to the Literature
Review covered in Chapter 2.This analysis leads to the interpretation of the data. After the
interpretation, the data would then be transformed into meaningful information usable by others.
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS
The last chapter is conclusion and recommendations of the research. The researcher gives
recommendations which can be adopted in the betterment of the indigenous contractor’s
performance within the building sector
19. 10
CHAPTER 2 LITERATURE REVIEW
2.0 INTRODUCTION
This chapter reveals the theoretical framework upon which the study is based on. The main basis
of the chapter was to formulate the foundational knowledge of the study. On the quest to do so, a
compilation of a variety of studies and literature on resource management strategies in construction
were discussed. Furthermore, the major resource management techniques used in critical path
method and resource levelling were reviewed and these provided a perspective upon which the
study was centred.
2.1 THE CONSTRUCTION INDUSTRY
The construction industry is defined as a significant contributor to the economy with its core
business mainly to undertake infrastructural development and advancement of the construction
activities in the country (Kagioglou et al 2001). It is viewed as an important vehicle for economic
development through various infrastructural developments. On the same vein, Amponsah (2010)
notes that it has a great potential not only as a means of meeting a country’s construction needs,
but also for upgrading each country’s entire infrastructure and economy. According to Elbeltalgi
(2009) the growth in the construction industry is an indicator of the economic conditions of a
country. Such contributions of the construction industry makes it a major industry in the world.
This assertion is further buttressed by Plessis (2007) who states that construction industry by itself
is a large sector of the economy responsible for employment creation. Ahadzie (2009) further
acknowledges that construction provision of employment creation is a noteworthy cause.
Contextually, Ofori (1993) postulates that the construction industry has great potential in uplifting
the general economy of a nation as well as the livelihood of its citizenry. However, Turin (1973),
augments that construction sector due to the needs it’s meant to address it has the ability to grow
in a faster rate than the GDP. The study further notes that with the capacity of the construction
sector, it is a leading sector for economic growth and a channel through which the investments are
relayed into the economy. The main thrust behind the need for more investment into the sector is
because of the voluminous amounts that are needed in the financing construction related projects
(Mangore and Chigara, 2012). Furthermore, the thrust that drives the economic development in a
nation is the closely linked to the investment injected into the country. According to Ofori (1980)
due to the fact that construction is such a huge investment channel, this serves as an effective
means through which the economic development can be realised.
20. 11
In spite of all its unique complexities it goes without saying that construction industry is a pivotal
sector of the economy. Studies reveal that it is a main economic contributor in terms of boosting
employment creation, providing social utilities and amenities, and gross domestic product and also
it’s a catalyst in the advancement of the developing countries economy (Ofori, 1980, 1993, Idoro
2010, Mangore and Chigara 2012). Therefore, prior to discussing the Zimbabwean construction
industry, it is needful that we focus first on the current state of the economy and the effect it has
on the construction industry.
2.2 OVERVIEW OF ZIMBABWEAN ECONOMY
According to Monyau and Bandara (2015) the Zimbabwean economy has experienced significant
downward trends with growth substantially slowing down. This study substantiates assertion
enshrined in World Bank (2006) report on the Zimbabwean economic growth projections that the
economy was facing a different array of challenges which were affecting its growth. The study
notes that those challenges include significantly high unemployment, reported to be in the region
of 80%, low and deteriorating industrial production, with many companies closing down or scaling
down operations, decreasing agricultural production; decreasing fiscal revenues and increasing
brain drain. These areas that were singled out in the report are deemed to be the major economic
drivers and when they are affected that means the economy would be greatly affected as well.
Consequently, such a trend has led to the decline in the economic growth in the nation. The
Zimbabwe Institute’s study on the Progressive Zimbabwe: Sustainable Growth & Transformation
Discussion with Major Players in 2007 noted that Zimbabwe’s public infrastructure had also
continuously been deteriorating and disintegrating, mainly evidenced in the economy’s major
sectors that is, infrastructure, roads, railways, electricity and water.
The Confederation of Zimbabwean Industries (CZI) in its 2012 manufacturing sector survey stated
that the economic growth had brought in a glimmer of hope in the country was soon after the
dollarization in 2009. However, the report proceeds to state that by 2012 that upward trend had
slowed down significantly. According to Monyau and Bandara (2015), the GDP growth
decelerated sharply from 10.6% in 2012 to 4.5% in 2013 and an estimated 3.8% in 2014. The
report further notes that real GDP growth was on a downward trend a phenomenon which signified
very low potential to spur any significant economic turnaround.
According to the National Budget of 2015, the International Monetary Fund had pegged that most
developing countries were going to experience a 5% growth which would in turn contribute to the
global 3.8% percentage growth up from 3.3% experienced in 2014. Despite all the envisaged
21. 12
growth of the year 2015, according to the National Budget for 2016, the actual economic growth
was 1.5% which was a movement on the negative from the 2014’s 3.8% GDP growth. The
following is an excerpt of the GDP growth projections from the National Budget for 2016:
Table 2.1 Real GDP Growth (%)
Industry 2012 2013 2014 2015 2016
Projected
Agriculture, hunting
and fishing
7.8 -2.8 23 -3.6 1.8
Mining and quarrying 8 11.7 -3.4 -2.5 1.6
Manufacturing 5.3 -0.6 -5.1 1.6 2.1
Electricity and water 0.3 5 5.4 -10.8 3.6
Construction 23.5 3.9 6.9 7 4.5
Finance and insurance 28 11.3 7.7 6 5
Real estate 59 0.7 4.7 3.9 2.5
Distribution, hotels and
restaurants
4.3 3.9 2.5 4.7 4
Transport and
communication
6.7 7 1.1 4.2 2.8
GDP at market prices 10.6 4.5 3.8 1.5 2.7
Source: Ministry of Finance and Economic Development
From Table 2.1, it can be seen that lately, the Zimbabwean economy despite its potency has
experienced a lot of challenges which in the process has daunted its growth. Statistics show that
despite the downward trend, 2016 GDP growth was projected to be on the upward movement from
2015’s 1.5% to 2.7%. The statement notes that what is of paramount importance is that the main
focus behind that envisaged growth was centred on the planned investments into various sectors
of the economy with construction being one of them.
22. 13
The major reason why the economy has been in such a state is because of the lack of investor
confidence in the economy. Some of the major economic challenges bedevilling Zimbabwe were
noted as follows: limited capital sources and its high cost; uncertainties arising from policy
inconsistencies, especially with respect to economic empowerment and indigenisation regulations;
dilapidated infrastructure; obsolete technologies and machinery; frequent breakdown of the
existing machinery (Monyau and Bandara 2015). This particular survey is in tandem with the CZI
(2012) report in that these challenges have been a negative force in terms of economic revival in
Zimbabwe.
Lately, there has also been uncertainty on the Indigenization law which has been marred with
contradictions and misinterpretations from various policy makers since its introduction in 2007.
According to The Herald, (22 April 2016), Honourable Vice President Mnangagwa addressing an
accountant’s conference in Harare stated that the law which was introduced in 2007 has been under
spotlight since then. The most daunting highlight of the law was deemed to be its misinterpretation.
According to the law, the foreign owned companies which are extracting natural resources should
cede 51% to the local formerly disadvantaged people so that they also benefit from their resources.
However, such a move saw investors being in a state of limbo with regards to investing their money
in the country which has led to acute shortages of cash in the market. This augments discoveries
made in the survey that CZI carried out in 2012 which mentioned that chief amongst the negative
elements toward economic recovery was the aspect of policy inconsistency.
According to Mukumba (2007), the Zimbabwean banking sector was charging exorbitant interest
rates which in turn discouraged contractors from borrowing. The study also revealed that due to
lack of funds, the contractors were operating with obsolete equipment which greatly affected their
productivity and project delivery. Therefore, with such an understanding it can be seen that the
issue of resources mainly money has been a thorn in the flesh for ordinary Zimbabweans, with
local contractors not being spared from the same. The CZI (2012) report also notes the following
factors as having the greatest negative impact on capacity utilization and doing business in
Zimbabwe in 2012: availability and cost of funding, infrastructure in particular power shortages
and cost, economic policy instability and high labour cost and rigid labour laws.
From the aforementioned studies, it can be distinguished that various sectors contribute immensely
to the economic development and the construction industry has that strong contributory effect.
Therefore, with an economy that is marred with such negative elements, the construction industry
23. 14
is deemed a key driver to the economic revival (National Budget of Zimbabwe, 2015) even though
survival and viability of the contractors is greatly threatened.
2.3 ZIMBABWEAN CONSTRUCTION INDUSTRY
The 2012 Zimbabwe National Budget Statement-Part 1, emphasized that the stabilization of the
macro-economic environment in 2009 allowed the construction sector to a growth rate of 1%
estimated for 2011 and 1.5% for 2012. According to the National Budget of 2015, the construction
industry in Zimbabwe has been projected to contribute to the GDP growth at estimated rates of
3.9% in 2013, 2.6% in 2014 and 2.9% in 2015. From these projections it is evident that the
construction industry has a momentous role in economic development. The Minister of Finance
further adds that the various projects spurring the projected growth had been made possible by the
resources mobilized through loans and mortgages. However, on the same budget of 2015, the
Minister laments that the construction industry had not yet realised its full potential owing to
limited financing, low fiscal space for capital development programmes and little external capital
flows which in turn leads to scarcity of resources to spur noteworthy development. Hence, from
the aforementioned challenges these have been deemed as the main factors affecting the business
environment of the Zimbabwean construction industry.
Mangore and Chigara (2012) argue that construction activities require large amount of resources
such as labour, materials, equipment, and hence existing in a limited economic environment poses
challenges for the contractors. These challenges can only be addressed by an adoption of proper
management systems. This is further substantiated with what Aniekwu and Ozochi (2010) realised
in the Ghanaian construction industry in that construction involves more risks than most other
industries and hence the need to properly manage the available limited resources.
2.4 NATURE OF CONSTRUCTION PROJECTS
The nature of the construction industry is unique as compared to other industries. The main
characteristics which makes it unique and complex is the deployment of resources which in turn
are exposed to risks and uncertainty inherent in every phase of the project execution (Aniekwu and
Ozochi 2010, Nagaraju et al, 2012). Such uncertainty associated with the industry exposes its
investments. Joshi and Patil (2013) define construction projects as resource driven temporary
endeavours that have a need for proper resource utilization for them to be successful.
24. 15
Construction projects require hefty amount of resources such as money, labour, materials and
equipment for them to be carried out (Nagaraju, 2012, Mangore and Chigara, 2012). In line with
that, it is key to note that a project is a onetime activity with defined objectives which has to be
finished in a certain period of time using limited number of resources (Joshi and Patil 2015). On
the quest to carrying out successful projects, contractors use resources that provide the means of
accomplishing the work objectives which are scarce in supply whilst the clients seek to have their
projects which meet their requirements delivered (Memon and Zin, 2010). Therefore, any
construction project requires proper scheduling of resources for its completion within time and
cost. For this to be accomplished various scheduling techniques have been used. Nwachukwu and
Emoh (2011) observed that the execution of construction work often involves substantial funds,
and the losses through failure or abandonment have crippling effects on capabilities of investors.
On the quest of further understand in detail the nature of construction projects, the following
scholars have defined it as follows:
A complex effort to achieve a specific objective within a schedule and budget target, which
typically cuts across organizational lines, is unique and is usually not repetitive within the
organization (Cleland and King, 1983)
An endeavour in which human, material and financial resources are organized in a novel way to
undertake a unique scope of work comprising of given specification within constraints of cost
and time, so as to achieve beneficial change defined by quantitative and qualitative objectives
(Turner, 1993)
In conclusion, the nature of construction projects is that these are temporary endeavours that
involve substantive amounts of resources. According to Ofori (1980) construction projects provide
opportunities in response to the needs of a society, but also shape the nature of the society's future.
2.5 RESOURCES MANAGEMENT IN CONSTRUCTION
The construction industry derives most of its inputs derived from other economic sectors (Idoro,
2010, Mangore and Chigara, 2012). The industry obtains its vital resources (materials, manpower,
plant and equipment, and finance) from several sectors of the economy, and it is affected positively
or negatively by a wide range of economic measures. Therefore, management of resources is an
essential task in each construction company (Menzel et al n.d.). According to Nagaraju et al (2012),
the crucial factor in successful implementation of a construction project depends largely on
availability of resources. The study further adds that the major reason for the importance of
resources management is because of the fact that every activity during project implementation
25. 16
requires an investment of resources. It can be seen that construction project activities are mainly
hinged on the availability of resources. Nagaraju et al (2012) state that resources are scarce in
nature and this brings a challenge to project managers.
Contextually, Mendoza (1995) argues that the reason for the management of project resources is
because of the seasonal shortages, labour disputes, equipment breakdown, material theft and
competing needs within a firm. The study further agrees with Mangore and Chigara (2012) that
the poor management of resources during project execution leads to project delays and failures.
Therefore, prior to unravelling what is involved in resources management, it is of paramount
importance to understand the term resources within the construction context.
2.5.1 Construction Resources Defined
Construction projects are an investment of a various set of resources (Mendoza, 1995, Nagaraju et
al 2012, Dubey, 2015). Various studies agree that there is no efficient resource planning and
management in a project without understanding the resources that are involved. A resource is an
entity that contributes to the accomplishment of project activities such as manpower, material,
money, equipment, time or space (Mendoza, 1995, Nagaraju et al 2012). According to Baghele et
al (2014) there are many resources which affect the project and these are material, money,
machinery and space. Resources are crucial to the successful implementation of the project. Dubey
(2015) states that resources are required to carry out specific tasks in a project, but the availability
of resources within a given firm is always limited.
The limited nature of resources makes resources management an essential subject to consider
during project execution. Mendoza (1995) purports that the reason behind the need for such
management of resources is because of how complex projects have evolved to be. Ofori (1980)
agrees that, the industry obtains its vital resources from several sectors of the economy hence the
need for judicious management. Ibbs and Nguyen (2007) augments resources management is
crucial and this is because of their scarcity. The project key resources are inclusive of:
Manpower
Dainty and Loosemore (2012) highlight that the world has seen a growing interest in the manner
in which human resources are managed in every organization. The study proceeds to add that the
construction companies have not been spared from this trend and hence the emergence of different
human resources management within the sector. Studies disclose that manpower is a significant
cost in construction companies due to its labour intensity (Cynthia, 2014, Dubey 2015).
26. 17
Manpower resources management is viewed as a means of correcting an ideology which was once
prevalent in the construction industry where human capital was being exploited for the benefit of
construction firms (Dainty et al. 2007). The study also notes with concern that in construction
projects, manpower resource issues too often lie outside the remit of project managers who neither
know nor care about the employment status of many operatives on the project for which they are
responsible. Therefore, in tandem with such perspective, Hendrickson (1998) states that manpower
resource is at the core of every construction activity from planning to execution phases and hence
project managers should play an active role on their engagement. According to Cynthia (2014),
wastages and underutilization of manpower are predominant within the Ministry of Public Works
in Zimbabwe and hence the need for the efficient management of resources.
Dainty and Loosemore (2012) further bring another aspect that has been observed in the industry
which is employment engagement. The study notes that those working in the industry vary from
skilled to unskilled and these have contracts that also vary. Mangore and Chigara (2012) augment
this manpower management by stating that the construction industry engages workers either on a
temporal or permanent basis. In such a case, the main thrust behind this approach by contractor
has been the aspect of remaining profitable and competitive. However, in the Zimbabwean context
it has been noted that since the turn of 2009 there has been a massive exodus of the skilled
personnel to different countries in the world (Mukumba, 2007, Mangore and Chigara, 2012).
Machinery and Plant
According to Kass (2012), construction machinery and plant refers to the tools, instruments,
equipment, and other mechanical implements required in performance of construction work.
Haddad (2006) and Kass (2012) assert that within the construction industry plant resource has been
the centre of focus in terms of management by many project managers since there has been an
upsurge demand for its use. However, such as increase in plant usage brings with it a need for
proper management strategies. The study proceeds to state that in this particular resource, there is
need to understand the quantity of plant needed and how to procure it whether through purchasing
or hiring.
Ofori (1986) argues that machinery and plant resources have huge cost implication on the project
and hence the need to judiciously manage these resources. Therefore operating costs associated
with plant if not closely monitored may plunge a contractor into losses as these costs contribute
significantly during project implementation. Burke (2003) adds that the use of the CPM during the
project helps in determining how the plant would be distributed in a project and thus dealing with
the aspect overloading resources. On the other hand, Mukumba (2007) and Saungweme (2011)
27. 18
note that the use of obsolete machinery in Zimbabwe has a negative effect on the productivity on
site and greatly reduces competitiveness. The study in tandem with what Ofori (1986) observed in
Ghana agrees that attending to the repair, maintenance or replacement of obsolete or dilapidated
machinery is a cause for concern especially due to limited access to finances. It is upon this premise
that machinery and plant resource management strategies ought to be developed within the
industry.
However, Mangore and Chigara (2012) recommend the use of resource registers as a means of
noting down all the hours associated with plant on site. The study further adds that in Zimbabwe
most emerging contractors rely on hired plant, a trend which requires proper management so that
cost implications are maintained within the project plant allowable costs. Burke (2003) urges for
the strict application of the CPM specially when the contractors rely on hired plant, to only do so
as when is necessary according to the project program. Contextually, proper management of
machinery and plant during project implementation directly impacts the project performance.
Money
Haddad (2006) postulates that during any construction project the three inter-related factors of
time, money, and quality need to be controlled and managed. The study argues that since
construction is such an investment intense endeavour, money and its management plays a crucial
role. Mangore and Chigara (2012) note that in the Zimbabwean context because of the liquidity
crisis, there is such a need to manage the available money. However, despite the need to manage
the monetary resources, CIFOZ Construction Journal Volume 3 (2012) states that the construction
industry received the least money from government loans a move that has further limited the
production of a viable sector. This assertion is in tandem with what Mukumba (2007) also
underscored in that the industry even though it is investment intense, it was bedevilled by low
access to finances from banks. Therefore, the study argues that by virtue of the nature of
construction projects, limited access to money has a detrimental effect on the project
implementation. Consequently, Mangore and Chigara (2012) further discuss that contractors must
have viable money management strategies and these contribute to overall project performance.
From this particular situation, it then brings to view the need for the management of the available
limited monetary resources. Haddad (2006) substantiates that the management of money in
construction projects via different means was all meant to enable the companies to remain
profitable. The study further sheds light on how interlinked this particular resource is since it is
fungible commodity that is required to purchase the services and goods needed during construction
projects implementation. Wideman (2001) agrees with this notion and further adds that the
28. 19
management of money in project determines the project performance in terms of quality, cost and
time components.
Materials
According to Haddad (2006), successful management of construction materials has to be based on
thorough and updated information, and processed utilizing a well-designed construction materials
management strategies. Joro (2015) defines the goal of material management as to ensure that the
materials are available at their point of use when needed hence, efficient procurement of material
represents a key role in the successful completion of the work. However, in terms of materials
management that Ofori (1980) argues that there are diverse factors to be considered especially
when these are scarce in the local markets. The study states that limited availability of locally
produced materials means a huge investment in the importation of materials. Various studies
further shed light that the construction materials availability during project implementation is
closely linked with the viability of the manufacturing sector (Ofori, 1980, Mangore and Chigara,
2012, Mukumba, 2007).
Bell (1987) notes that some construction contractors have developed integrated and materials
management systems (MMS) that combine and integrate the functions of the organization.
According to Pataskar (2013) material management is concerned with the planning, identification,
procuring, storage, receiving and distribution of material. Despite this understanding, there are
various cause for concern with regards to material management especially the aspect of scarcity.
Ofori (1980) lamented the situation of management in Ghana and the argued that material
management systems have to be adopted in any project implementation as these would aid in the
effective and efficient running of projects.
Mangore and Chigara (2012) contend that shortage of materials on the local market, liquidity
crunch and inflationary tendencies were identified as some of the constraints to implementing an
effective site resources management system. The study argues that with the exception of labour
only contracts, material reconciliation in projects are hardly done and hence leaving a gap for
material wastage that in turn affects project implementation. Therefore, Mangore and Chigara
(2012) advocate for material management systems that contractors would have to adhere to at all
costs such that their materials are properly planned for, procured, controlled and distributed during
project implementation. This idea seeks to buttress the observation made by Cynthia (2014) and
Joro (2015) in that various projects are not implemented effectively due to mismanagement and
wastage of materials.
29. 20
During project implementation, there is also a need to consider the effects of importation of
materials as these have a bearing on the project duration if they are not properly management
during procurement, shipping and delivery on site (Ofori, 1980, Mangore and Chigara 2012).
These studies also further add that apart from procurement of materials, storage and safe-keeping
on site also is an essential part of material resource management. During project implementation,
Shaker (2007) notes that the preparation of logs that record the flow of materials, and their approval,
become essential tracking tools to are essential tools in materials management. It can be seen that
material management is a cumbersome practice which need proper planning and execution during
a project. Shaker (2007) augments that materials when they are not properly accounted for, they
are subject to theft and misuse hence negatively affecting the project. The study puts all the
materials management under the jurisdiction of the project manager.
Conclusively, Haddad (2006) states that material management practices could increase efficiency
in operations and reduce overall cost which is deemed a good impact on project implementation.
The study notes that material management is key in controlling material flow within a company,
curbs unnecessary project delays and cost overruns.
2.5.2 Resources Management
Having established the core resources in construction it is therefore incumbent to proceed and pay
attention to the management strategies during project implementation. Effective construction
resources management process is a key to success of a construction project. Resource management
aims at planning, scheduling, procurement and control of workers, materials and equipment
required for the completion of the project, economically and effectively (Sears, Clough and Sears,
2008). Nowadays, successful management of construction resources has to be based on and
updated information and processed utilizing a well-designed construction resources management
system (Kass, 2012). According to Nagaraju (2012), the best combination of resources to use for
performing a construction activity is based on contractor’s ability to identify the interdependencies
of the various resources which brings us to the subject of resource management.
Resources management is defined as a means to achieve better productivity, which should
be translated into cost reduction (Kass, 2012).
Baghele (2014) defines resource management as the efficient and effective deployment of
an organization's resources when they are needed
30. 21
Kafka (2007) defines construction resources management as a concept of overseeing and
strategically managing every physical asset, from consumables to tools and equipment in
every company department, for the advancement of the company.
These definitions point out the essentiality of resources management in construction projects.
Contextually, resources management is defined as the means, strategies and techniques that
companies employ on the available resources to ensure that they increase their project efficiency
and effectiveness whilst minimizing their costs.
According to Nagaraju et al (2012), due to the resource-driven nature of construction management,
resources management is really a difficult task. The study ensues to state that what makes the
process of resource management a difficult one is the issue of scarcity of resources. Resource
scarcity cannot be measured due to its overarching presence in an economy, managing resources
around this subject is such a great challenge. This is further substantiated by Nagaraju et al (2012)
as they state that the project manager must develop a plan of action for directing and controlling
resources of workers, machines and materials in coordinated and timely manner in order to deliver
a project within the frame of limited resources. It is on this same premise that Menzel (n.d.) states
that today resources management systems are available to assist construction companies to
efficiently organise the allocation of their personnel and equipment within the company, but they
cannot provide the company with the idle resources for every single task that has to be performed
during a construction project.
Some variables affect completion of construction projects. Menzel et al (n.d.) state that in
implementing a construction project, companies have to determine whether to work with their own
equipment and personnel or to rent these resources. Such decisions are core in terms of effective
management of resources.
2.5.3 Correlation between Project Management and Resources Management
Project management has been practiced since early civilization. According to Stevens (2002) the
pioneers of project management are deemed to be Henry Gantt and Henry Fayol. These developed
management tools that are predominantly applied in the industry nowadays. Stevens (2002) further
states that the management tools such Gantt charts and the five management function form the
basis of project management as is known today. From these tools there are other project
management techniques that have evolved over the past years and these have also been resource
management inclined. According to Joshi and Patil (2015), project management techniques can be
used to resolve resource conflicts and also useful in minimizing the project duration within limited
31. 22
availability of resources to make the project profitable. Therefore, the advancement of the
techniques has given rise to a significant role of a Project Manager (PM) in the industry.
According to Mendoza (1995) it is the duty of the project manager to envisage the future tasks
within the project and then plan for the resources required so that the tasks are properly coordinated
when they occur. The study also proceeds to note that the key skills of a project manager in
resources management is the ability to plan ahead and schedule tasks based on the available limited
resources. Therefore, the duty of a project manager is crucial in resources management during
project implementation. Nagaraju et al (2012) states that project managers must take complex
decisions under different scheduling needs and under conditions of uncertainty and risk.
Liberatore et al. (2001) reveal that 83% of professional project managers use project management
software for planning and control, and that in construction industry resource levelling is used by
58% for planning and by 44% for project control. From the same survey it was derived that
Primavera Project Planner and MS Project are the most popular software packages used for
construction projects. Therefore, in line with this it can be seen that effective and efficient use of
resources management systems should ensure successful performance of construction projects in
terms of cost, time and quality (Mangore and Chigara, 2012)
Nagaraju et al (2012) postulates that the need for project management systems that aid in planning
is because unless matching resources are planned and procured, no activity can be executed
according to a prefixed time schedule. In respect of project resources, project managers are always
confronted with a number of questions which mainly seek to address the availability of resources.
Having understood this scenario Dubey (2015) proceeds to assert that PM should master the art of
scheduling tasks as this would be due to the limited availability of resources. Therefore, in line
with this, there are various strategies that have been developed to assist PM to manage projects.
2.5.4 Theoretical techniques and strategies of Resources Management
In theory there are various strategies that the project managers use in resources management during
project implementation. Various studies have noted that a wide range of the common resource
management strategies and techniques are inclusive of bar chart, critical path method (CPM),
resource scheduling, resource smoothing, project crushing, programme evaluation and review
technique (PERT), resource levelling and earned value analysis (Bowser, 1995, Kastor and
Sirakoulis, 2009, Joshi and Patil, 2015, Dubey 2015). Contextually, these studies further agree that
there is a common need for resource management strategies as the real world is earmarked with
32. 23
scarce resources. These resources require judicious resource planning, allocation and spending
during project implementation.
According to Hegazy (1999) a handful of companies cannot remain competitive in today’s highly
competitive business environment without effectively managing its resources. Due to various pros
and cons, the application of resources management strategies vary based on their level of
complexity and effectiveness. In practice, basic PERT and CPM scheduling techniques have
proven to be helpful only when the project deadline is not fixed and the resources are not
constrained by either availability or time. However, in a real world this is not practical even for
small-sized projects, therefore, several techniques have been used to modify CPM results in
account of practical considerations. In dealing with project resources, the main type of technique
that has been used is resource levelling. In tandem with that common premise, this study was
focused mainly on the widely used critical path method juxtaposed with resource levelling
techniques to ascertain how these strategies impact project execution.
2.6 CRITICAL PATH METHOD
Critical Path Method (CPM) can be defined as the logical sequencing of a series of events
necessary for a successful research project in such a manner that the most efficient route to some
culmination point can be calculated (Bowser, 1995, Joshi and Patil, 2015). According to Kastor
and Sirakoulis (2009), the critical path method (CPM) has been widely used for project scheduling,
helping managers to guarantee the in time and on budget completion of the project. The study
further notes that the CPM provides useful information for the project for the efficient planning of
a project. The critical path of a network gives the shortest time in which the whole project can be
completed
One of the advantages of the use of CPM is the ability of managing by exceptions critical activities
such that they don’t elongate the project duration (Bowser, 1995). On the other hand, Baghele et
al (2014) argue that critical path method (CPM) is used for repetitive types of projects where the
time estimates for various activities are either known or can be determined fairly accurately. By
and large, in practice, there are so many factors which affect the time and cost of the project gets
adversely affected. Therefore, the critical path analysis being viewed as a tool that illustrates the
individual tasks of a project highlighting the expected starting and finishing tasks of each. More
precisely, the critical path analysis can be used to estimate the minimum or maximum time that
tasks would be started and completed. The other key decisions that can be deduced from a critical
path include the following: estimate the minimum time that the whole project would take to
33. 24
complete, identify if resources are not being used effectively, awareness of any tasks that could
create a possible delay and logical sequence of activities that must be made
While CPM is easy to understand and use, it does not consider the time variations that can have a
great impact on the completion time of a complex project (Kass, 2012). Practically, a common
feature of many projects is a penalty clause for delayed completion and or bonus for earlier
completion. Thus, project managers take these into consideration whenever undertaking any
project. Burke (2003) states that initially the critical path was used for planning and developing a
logical framework, but of late it has been developed so that it also guides the project
implementation phase so that resources are allocated accordingly. These techniques help
management in efficient and economic use of resources for completion of project objectives with
unlimited availability of resources, though it is observed that resources are limited in real project
scenario.
Since CPM greatest limitation is not regarding the resources required for the execution of
construction project but being used as a timeline indicator (Joshi and Patil, 2015). Furthermore, it
is also based on the network activities showing how tasks are interrelated and interlinked. It is on
this premise that Dubey (2015) puts across an argument that the network technique’s focus on time
element and assumption of unlimited resources being available for assigning to the activities to
satisfy the time schedule is misleading in the real world. Various studies further buttress this
argument and postulate that such a management tool is not complete since in actual sense resources
are scare in the real world (Kastor and Sirakoulis, 2009, Joshi and Patil, 2015 and Dubey 2015).
Therefore, it can be noted that the use of the critical path in a world that has limited resources loses
its significance and hence calling for another management technique to bolster the critical path
method.
However, as a management tool, Nagaraju (2012) states that CPM provides the premise for
implementing key resource management strategies such as, resource scheduling, resource
availability analysis and resource loading. These are detailed as follows:
Resource Scheduling
As earlier on noted, CPM is primarily used as a scheduling tool as it provides the basis of
fundamental project activities such as resource definition, planning, and allocation and levelling
(Reiss, 1992). According to Preston (1976), resources scheduling is seen as a means of minimizing
the maximum resource level required for the entire project duration. The study further states that,
the procedure of assigning the accomplishment of an activity to a variable time frame subject to a
34. 25
maximum resource constraint and allowing project time to vary has also been termed as resource
scheduling. Joshi and Patil (2015), state that schedules developed without resource constraints
may not be feasible or realistic when actual resources are considered. Critical Path Method (CPM)
is a technique that has been used mainly for scheduling and controlling of projects, communicating
plan and training new managers. Mangore and Chigara (2012) note with concern that resource
related studies have focused much attention on developing models for resource scheduling, little
has been done on the resource planning and management during project hence the need to unravel
resources levelling.
Resource Loading
Dubey (2015) defines resource loading as the process by which available resources are assigned
to meet the objectives of various activities constituting a project. Resource loading allows the
planner to assign resources such as labour, equipment and materials to each activity in the project
schedule. The main goal of the exercise is to glean as much production as possible from the
available resources through efficient distribution of the same in project execution. Dembure (2009)
adds that this approach uses charts that provide a clear picture of how the resources are being
distributed within the project. The study argues that this pictorial view of the bar charts can be
used also a control mechanism by project managers during project implementation. In tandem with
the importance of resource loading, Wideman (2001) illustrated the following resource loading
approach as a means of demonstration the distribution of manpower resources in a civil
engineering project over the space of 38 weeks paying attention to the aspect of formwork:
Figure 2.1: Civil contract example of site manpower (predominantly) concrete work
35. 26
From the S - curve shown in figure 2.2, Wideman (2001) states that the resource loading approach
is key as it enables the management to single out the trade-off components during project
implementation that enables efficiency and effective production of the contractor. Dubey (2015)
argues that resource loading can be applied to any type of resources on site, from plant, machinery
to manpower. According to PMBOK (2013), application of resource loading also requires project
managers to regularly update their project schedule which in turn may have an effect on the critical
path. Dembure (2009) agrees with this assertion by stating that resource loading helps in project
implementation and control.
Resource Availability Analysis
Mangore and Chigara (2012), postulate that resource availability is deemed a crucial strategy
during resource management in project implementation. This approach seeks to compare the
quantity of available resources at any given time and whether they can be deployed into the project
and it is the duty of project managers to constantly be informed of the available resources at any
given time. Preston (1976) purports that the lack of carrying out proper resource availability
analysis has a negative impact on projects as this affected project execution and hence elongated
duration. Hendrickson (1998) agrees with this observation and further adds that during
construction planning, there is need for an in-depth understanding of the resources available as this
determines also the strategy for project implementation. Therefore, as a resource management
strategy, resource availability analysis plays a crucial role since resources are always limited. In
liaison with the critical path method, Hendrickson (1998) argues that in resource availability
analysis, the difficulty arises because critical path scheduling assumes that no resource availability
problems would be experienced during the project implementation. Consequently, this approach
is seen as to complement the flaws that are posed by the critical path method which is developed
on the premise that resources are unlimited.
2.7 RESOURCES LEVELLING
Resource levelling is defined as an attempt to project implementation in a manner that boosts
productivity and efficiency (Mendoza, 1995). This approach is deemed as inclined on resources-
usage and seeks to implement the project in a resource effective manner. Gido and Clements (2015)
further shed light as they define resource levelling as a method of developing a schedule that seeks
to address the fluctuations in resource requirements in a project. The study states this approach is
mainly moving activities in a project to improve resource loading profile. Contextually, resource
levelling is defined in the PMBOK (2013) as a technique in which start and finish dates are
36. 27
adjusted based on resource constraints with the goal of balancing demand for resources with the
available supply. Joshi and Patil (2015) view the technique as a key tool used to analyse
unbalanced use of resources and resolves resources requirements. Along, that line of thinking,
(Dubey, 2015) concludes that this approach basically seeks to properly assign the resources in a
project so that there is reduction of resources redundancy in a project.
Resources levelling is therefore viewed as an integral part of managing a project, since it addresses
the issue of resource scarcity. Nagaraju et al (2012), Kass (2012) and Dubey (2015) purport that
nowadays this process has been achieved by the adoption of computer software which helps the
project managers in evaluating the resources needed in their project during implementation. As a
result, resource levelling is needed in construction projects to avoid the difficulties associated with
the large variations in resource usage (Nagaraju et al, 2012). The technique thus seeks to keep the
requirements for a construction resource as constant as possible over the duration of the project.
According to Nagaraju (ibid), this is made possible only by the shifting of the schedule using the
available slack in the CPM in order to level resources requirements and usage. However, the study
quickly cautions that activities that are shifted should be on the non-critical path so that the project
duration is not affected by the exercise.
Dubey (2015) states that resource levelling may be simple in which the given tasks are delayed
until the given resources are available or they can be complex where the given resource might be
deployed on multiple projects throughout the company, thus requiring levelling to be done at the
company level instead of the individual project. Joshi and Patil (2015) augments this approach by
underscoring that the only means by which resources conflict within can be resolved in a company
is through resource levelling which involves splitting and delaying project activities. Delay of
activities are only done on the non-critical activities. Mendoza (1995) also noted that by virtue of
the nature of resources needed in construction projects, the only way to deal with the dilemma of
resources conflict is to delay certain activities until the company has resources to implement those
tasks. Therefore, based on this premise, Dubey (2015) discusses the four main techniques that can
be used in resource levelling in resources constrained projects.
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Figure 2.2 Resource levelling techniques (Dubey, 2015)
Dubey (2015) notes the following approaches in resources levelling:
1. Levelling: this method calls for the allocation of resources within the project or with other
projects within the firm. Joshi and Patil (2015) noted that usually the construction
companies carry out multiple projects at the same time and hence this if not properly
managed might have a huge financial and resources burden on the companies. It is upon
this premise that the project managers would be required to be aware on how best to level
resources in order to achieve their project goals. Dubey (2015) cautions that if levelling is
done on activities that are on the critical path this would affect the duration of the project
and hence crippling the investment pursuits of companies. The study however, postulates
that delays in activities not on the critical path due to levelling can be done as these would
not have an effect on the project duration. Ludwick (n.d) states that there are basically two
methods of levelling resources and these are:
a) Time constrained approach - which takes into consideration that time is of essence and
hence resources are arranged in such a manner that time factor of the project is not
compromised
b) Resource constrained approach - considers that there are no resources availed for the
project and the budget does not permit that. Therefore, in this approach, resource demand
exceeds resources availability. This is however, dealt with using the delaying method
which is discussed below.
Resource
Levelling
Splitting
Overtime
Levelling
Delaying
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2. Delay: an activity may be delayed due to non-availability of resources as well as due to
change in the sequence of tasks. Dubey (2015) notes that during project implementation it
is common for the firm to have no resource to implement a certain activity and hence the
need to delay that particular activity. Scarcity of resources causes activities with the slack
to be delayed whilst those with the least slack to be prioritized. Consequently, such a
technique of delaying activities, project managers need to be actively involved in the
process since resource levelling is a complex issue which needs to be resolved daily during
project implementation. Nagaraju et al (2012) state that in all the project activities there is
need not to delay activities that would have a negative effect on the entire project duration.
The use of project management software such as Microsoft Project gives a clear view on
which tasks can be delayed and for how long without affecting the project overall duration.
Amponsah (2010) however, argues that with the general slow uptake of project
management computer systems in most developing countries like Ghana, this approach of
delaying as a technique may have detrimental effects on the project as project managers
would rely on mere judgment and experience in the industry. This assertion presents a
perspective that needs addressing within the industry such that there is a universal adoption
of these management computer systems to aid human effort. Ludwick (n.d) states that the
main focus on delaying is to alter the start and end time of a task rather than its entire
duration. This needs careful planning as it can result in the task delay f not properly
executed which would ultimately affect the project duration.
3. Overtime: According to Nagaraju et al (2012) and Mendoza (1995), human resources are
the integral part of the construction project. These studies note that the human effort is
crucial from the implementation of the project to its successful completion. However, due
to the nature of the construction projects and them being time bound, there is need for these
human resources to work overtime in order to complete the given work (Dubey, 2015). It
is also important to note that the engagement of these human resources to carry out
overtime work would attract more wages which is calculated using the work overtime
factor. On this premise, Dubey (2015) argues that the main cause of the usage of large
amounts of money in a project at times is associated with the assignment of resources
through overtime and hence the need to curb such extra expenditure. Conversely, Mendoza
(1995) reveals that unlike any other resources, the human resource can only work up to a
certain limit due to fatigue hence the need to engage other workers to ease the burden of
working long hours. Therefore, based on that, overtime can only be used as a levelling
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technique up to a certain limit. However, if not properly controlled, overtime can also affect
the overall profitability of the company.
4. Splitting: These are activities that can be interrupted so that the resources are then
transferred to other parts of the project. Dubey (2015) states that there are certain work
packages that due to the resources constraints can be done in sections until they are finished.
This particular approach may see in the work breakdown structure the activity being broken
into smaller segments so that these activities may only be carried out when the required
resources are available. Joshi and Patil (2015) state that resource conflict or over allocation
can be resolved by splitting certain task. Ludwick (n.d) adds that this approach mainly
focuses on tasks that cannot be done continuously and hence being split into sequential
packages that are done in intervals.
However, to buttress the resource levelling techniques developed by Dubey (2015), Khaled and
Dho Heon (2009) carried out a study that developed resource levelling matrices. These matrices
mainly deal with minimizing undesirable resource fluctuations and to maximize efficiency of
resource utilization on construction site. The study notes the total amount of resources that need
to be temporarily released during low demand periods and rehired at a later stage during high
demand periods. The second metric measures the total number of idle and non-productive resource
days because of undesirable resource fluctuations
Process of Resource Levelling:
Dubey (2015) developed a means by which resources management in a project can be done and
this is shown in the steps below:
a. Develop a work breakdown structure with all shows activities to be carried out in a project.
b. Show how these are interrelated and dependent on each other in an organised sequence.
c. Then assign resources and time frame needed for each activity
d. Explore all the possible hindrances that may hinder the activity, from government policies,
personnel, machinery, and money to the site conditions.
e. Evaluate the interdependency of project activities in liaison with the identified resources
requirements, allocated time and the constraints likely to be faced.
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f. Develop network of the project activities and taking into consideration the linkages that
exist in the project as well as the constraints.
g. Allocate the available resources to these activities and seek to avoid over allocation of
resources to any of the activities.
h. Evaluate the resources allocation.
i. Level all the given resources to develop a revised schedule by using the levelling tool
The study indicates that resource levelling is a complex exercise which requires proper planning,
monitoring and control of activities. These stages are performed to all the activities and thus
dealing with how the available resources can be judiciously assigned to achieve maximum benefits
to the projects. In addition to levelling Ludwick (n.d) states that resource levelling should be
followed by the smoothing process which is an exercise that ensures that there is no over-allocation
of resources. Smoothing eliminates peaks and troughs in a project resources requirement graph.
2.8 BENEFITS OF RESOURCES MANAGEMENT STRATEGIES
In resources management, there are great benefits that contractors glean from properly applying
the aforementioned strategies. Mangore and Chigara (2012) state that effective resource
management system would, among other benefits, enhance good business relations between
contractor and client, ensure that projects are delivered on time and within cost. Dubey (2015)
further adds that the limited available resources when assigned accordingly, has the ability to
achieve more in project successful execution. Therefore, the following are some of the outstanding
benefits associated with application of resources management strategies:
Managing scarce and limited resources
Apart from any other key goals, the main thrust behind the adoption of resource management is
because of their limitedness. According to Dubey (2015) and Mangore and Chigara (2012) citing
Karr and Nasr (1986) there has been a lot of talk on the adoption of scheduling for projects and
very few on the management of resources. These studies agree that the viability of the contractors
is mainly based on how they deal with the limited resources. Closely linked with that, Joshi and
Patil (2015) also adds that the main benefit of the resources management is the fact that it gives a
clear insight on the fact that resources are limited unlike the CPM which only provides as schedule
that assumes an unlimited supply of resources. Consequently, Dubey (2015) argues that the issue
of assigning limited resources within the project such that people do not work overtime is one of
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the main benefits of the resources management strategies. Management of scarce resources is the
essential benefit of applying these techniques.
Projects are unique and require judicious allocation of finite resources
Companies exist in a resource constrained environment (Dubey, 2015). Therefore, based on that
premise the other benefit that resources management strategies present is the ability to allocate
these resources based on the project needs. According to Dubey (2015) there are certain activities
within the project that are deemed a priority and would require the allocation of resources without
fail or delay such that the project achieves its intended purpose. This is further elaborated by Joshi
and Patil (2015) as they state that project management techniques are used to resolve resource
conflicts and also useful in minimizing the project duration within limited availability of resources
to make the project profitable. Consequently, as stated earlier on, resources management requires
the active involvement of a project manager since projects are so unique and exists in a resource
constrained environment.
Cost overruns and project delays are minimised
In a project, time is an essential component since a project is defined as a temporary endeavour
which has a definite usage requirement needed by the client. According to Dubey (2015), the
aspect of cost overruns is so detrimental that some projects end up not being deemed a success
because of the cost components. Therefore, in resources management, one of the main thrust
behind the exercise is ensuring that there is no cost overruns or these are minimised. Mangore and
Chigara (2012) lamented the state of the projects, noting that even though contractors had resource
management systems, they still could not curb the negative effects of cost overruns on their
projects which is definitely a cause for concern. Nyakayedza (2012) also augments that projects
done by local contractors were earmarked by cost overruns rendering them less competitive against
foreign contractors. Therefore, on the quest to combat this element, resources management
strategies when the project manager judiciously plan and allocate resources, they are bound to curb
the negative aspect of costs overruns.
Boosts competitiveness of contractors
Hegazy (1999) states that very few companies that have not adopted the resource management
strategies are viable within the construction world. It was identified by Mangore and Chigara (2012)
that the losses incurred by contractors is overwhelming and thus limiting their competitiveness in
the global market. Mendoza (1995) substantiates that profitability of companies is based on their
42. 33
management of costs of which failure to do so has negative impact on the sustainability of the
companies in the industry. It is against this background that companies have sought to pursue
resources management as a key project exercise such that they boost their competitiveness in the
market. According to Mangore and Chigara (2012) citing Karra and Nasr (1986) it was noted
modes that have been developed in the industry mainly focused on resources scheduling whilst the
most important aspect was resources management which is still not up to standard as evidenced
by projects failures in terms of resources allocation, assignment and management. Consequently,
this has further depleted the profitability of contactors.
Return on capital for the clients
Since the construction projects are resource intense investments, there is need to consider how the
returns are gleaned from the projects (Mangore and Chigara, 2012, Dubey 2015). It has been noted
that for the clients to draw their intended results from projects there is need for the sound
implementation of project management skills biased on the efficient usage of resources such a
money, manpower, plant and materials (Mangore and Chigara, 2012). It is therefore, important to
note that when the firms put in place viable resources management strategies, the main thrust is to
ensure that they satisfy their clients by meeting their needs at the most minimal usage of resources.
A study carried out by Nwachukwu and Emoh (2011) noted that the usage of resources had a
pivotal contribution to the clients as failure to adequately use the available resources impacted
negatively on the investors and thus tainting the future injection of resources in projects by the
same. This is line with the
Project productivity and efficiency
Projects efficiency is now a core aspect in project management. According to Chigara and
Mangore (2012) the usage of resources management systems assist in the efficient running of a
project and proper management of resources. This is in line with what Dubey, (2015) noted in that
the success of the allocation of the resources in a projects determined its efficiency and level of
productivity. The study noted that there are activities within the projects that are deemed a priority
that would require the adequate allocation of resources such that the overall project performance
is not derailed in the process. In tandem with that, Nagaraju et al (2012) asserts that each activity
is allocated with a specific resource and must be completed within the time limit, otherwise it may
adversely affect the overall duration of the project. However, Mendoza (1995) states that the main
advantage of resource levelling is the fact that it reduces peak demands for resources and creating
a requirement for resources other non-peak times. The study also augmented that resource
