1. i
SHORTAGE OF SKILLED LABOUR IN
CONSTRUCTION INDUSTRY OF SRI LANKA
By
Basnayake L.K. (E/10/0057)
Premathilaka R.P.M.M. (E/10/264)
Supervised by
Dr. P.B.G. Dissanayake
Project: E/10/072
Department of Civil Engineering
Faculty of Engineering
University of Peradeniya
Peradeniya, 20400
Sri Lanka
August, 2015

2. ii
ABSTRACT
The construction industry is heavily dependent on the adequate supply of skilled labour,
and as a result the skilled labour shortage in the Sri Lanka has received considerable
attention in recent years. Hence, the study on the shortage of skilled labour in
the construction industry of Sri Lanka is an important and timely study for the industry.
This study focuses on the reasons for the skilled labour shortage, the consequences of
skilled labour shortage, mitigation methods to overcome the skills shortage and to find the
extent of the skilled labour shortage in Sri Lanka. A questionnaire survey was conducted
within the both private and public construction organizations to analyze the views of
professionals’ as well as labourers’. Professional level questionnaire survey was conducted
among 150 number key persons with in the industry and labour feedback survey was
conducted among 55 number labourers with various skills categories. Significance Index
was applied for the ranking of reasons and adverse effects while the Importance Index was
used to rank the counter measures. Spearman’s Rank Correlation method was used to find
the relationship between the responses of each category. Both the Microsoft Excel as well
as the SPSS software were utilized accordingly for the processing of data analysis. Labour
feedback survey was found seven critical issues for the skills shortage. Inadequate supply
of skilled labour from training institutes was found as the major reason for shortage of
skilled labour in construction industry while poor quality of works was identified as the
major effect and arranging seminar/training through ICTAD/IESL was found as the most
suitable mitigation measure to overcome the issue.
Keywords: Construction Industry, Skilled Labour, Causes, Effects, Mitigation Measures

3. iii
Acknowledgements
We would like to pay our gratitude to Dr. P.B.G. Dissanayake, the supervisor of our
project for his guidance. Also we would like to thank Dr. S.B. Wijekoon and Mrs. K.K.K.
Sylva for their advises as members of our evaluation panel. Furthermore our sincere
acknowledgement goes to Civil Engineering Department and Civil Engineering Society for
the support given to us to make our reseach a success.

4. iv
Contents
Abstract
Acknowledgement
Table of Contents
List of Figures
List of tables
List of Abbreviations
1 Introduction
2 Literature Review
3 Materials and Methods
4 Results and Discussion
5 Conclusion and Recommendation
References
Appendix

5. v
List of figures
Fig 4.1 Distribution by Employment
Fig 4.2 Distribution by Involvement
Fig 4.3 Distribution by Category
Fig 4.4 Distribution by ICTAD Grade
Fig 4.5 Summary of the training analysis
Fig 4.6 Summary of the training analysis

6. vi
List of tables
Table 4.1 Ranking of Casual Factors according to the view of involved parties
Table 4.2 Ranking of Casual Factors according to the view of type of employment
Table 4.3 Ranking of effects due to shortage according to the view of the type of
involvement
Table 4.4 Ranking of effects due to shortage according to the view of type of employment
Table 4.5 Ranking of Mitigation Measures to overcome the shortage
Table 4.6 Ranking of Mitigation Measures to overcome the shortage according to the view
of type of employment
Table 4.7 Summary of casual factors according to overall view
Table 4.8 Summary of effects according to overall view
Table 4.9 Summary of mitigation measures according to overall view
Table 4.10 Spearman's Rank of Correlation among involved parties
Table 4.11 Preliminary results of Questionnaire B
Table 4.12 Grand Summary Table

7. vii
List of abbreviation
ICTAD Institute of Construction Training and Development
IESL Institution of Engineers Sri Lanka
QS Quantity Surveyor
TO Technical Officer

8. 1
CHAPTER ONE
INTRODUCTION
1.1 Sri Lankan Construction Industry
Construction Industry is one of the most booming industries in the 21st
century and remains
so with the continuation of the development process especially in the developing countries.
In Sri Lanka, the construction industry plays a major role in economic and physical
development. Further it is the fourth highest sector in Sri Lankan economy after services,
manufacturing and agriculture (IMacs Research & Analytics , 2011). The end of the
island’s ethnic war in 2009 has revived the economic activity and resulted in an
infrastructure building boom (IMacs Research & Analytics , 2011).
According to the Annual Survey of Construction Industries, the total estimated value of
work done by all types of construction activities in Sri Lanka was Rs.78, 320 million in
2010. The highest contribution to this value has been made by the building construction
sector which accounted for 48.0 % of the total value of work done. The major share of the
value of work done on building construction sector (which amounted Rs. 37,623 million)
has come from the private and public sector. Highway construction was the second highest
contributor to the value of works done, amounting to 32.6% of the total value in 2010
(Survey of construction industries, 2011).Aided by robust construction and manufacturing
activities, the industry sector recorded a growth rate of 9.9 percent, raising its share of
GDP to 31.1percent with in the year 2013 (Central Bank of Sri Lanka Annual Report,
2013).
However, there are challenges to overcome with the construction industry of Sri Lanka.
The industry concerns include high raw-material costs, lack of availability of funds,
shortage of skilled workers and frequent changes in regulations, particularly in
development control and approval processes (IMacs Research & Analytics , 2011).
As of 2009, the direct employment in the construction industry was 562,000 persons. This
included four categories of employees: professional, technical, crafts, and machine
operators. Almost 97 percent of total persons employed were males with 75 percent falling

9. 2
in the 25-45 age-group. 52 per cent were with experience of less than five years (IMacs
Research & Analytics, 2011).
There is an excess demand in the job categories of craft and related trade workers,
elementary occupations, and plant and machinery operators and assemblers (Karunathilake,
2006). Hence, it is clear that there is a huge shortage with the skills related to the
construction industry of Sri Lanka.
1.2 Objectives of the Study
The specific objectives of the study are as follows;
To investigate extent of the skill labour shortage in Sri Lanka.
To investigate causes for the shortage of skilled labour in construction industry of Sri
Lanka.
To find out the consequent effects due to the shortage of skilled labour.
To propose suitable mitigation methods to overcome the shortage of skilled labour.
1.2 Scope of the Study
Sri Lankan construction industry can be categorized under building construction, highway
construction, bridge construction, water supply & drainage, irrigation & land drainage,
dredging & reclamation and other constructions (Survey of construction industries, 2011).
However the scope of this study is limited only for the building construction, highway
construction works and water supply and drainage works, considering availability of time
for the study. Data were collected from both government and private sector organizations
including client, contractor and consultant, three parties.
1.3 Significance of the Study
A standard civil engineering construction project is expected to meet the requirements of
cost, time and quality of the client, which are to a significant extend rely on performance of
involved workforce. The workforce performance mainly depends on their acquired training
or skills. Though the many past researchers identified the shortage of skilled labour as a
key factor which adversely affects the construction industry in both locally as well as

10. 3
internationally, there are only few studies done to analyze this situation to come up with
effective mitigation measures. Besides many researches have been done on building
construction industry, gender factor, social factors and labour feedback had not been
investigated. Thus, this research is an attempt to cover the short comings of the past studies
and to support the Sri Lankan economy. Therefore, the study on “shortage of skilled
labour in construction industry of Sri Lanka” is a very timely and unavoidable research
topic to the present context of Sri Lanka.

11. 4
CHAPTER TWO
LITERATURE REVIEW
2.1 Nayanthara De Silva, Rajakaruna R. W. D. W. C. A. B., and Bandara K. A. T. N.
“Challenges faced by the construction industry in Sri Lanka: perspective of clients
and contractors”
This paper presented about findings of a research which was carried out to identify
challenges face by the Sri Lankan construction industry and effective motives to overcome
such aspects. The survey sample was selected randomly and the sample size was 40. An
industry wide questionnaire was developed. A seven-point “likert” scale was used to record
the response of respondents. The questionnaire survey was started from a pilot survey. The
improved version of the questionnaire was distributed among the selected group. Hand
delivery was used to deliver and collect the questionnaires to increase the rate of return.
2.2 Jayawardena. H.K., Senevirathne. K. and Jayasena. H.S. “Skilled Workforce in
Sri Lankan Construction Industry: Production vs. Acceptance”
This research was undertaken to unearth the answer to the research question of “how the
skilled labour production could gain acceptance in the Sri Lankan construction industry”.
Desk research was carried out to find training courses available for the construction trades.
A questionnaire survey was conducted among 77 recruitment officers in medium to large
size contracting firms and 34 subcontractors - in six distinct trades.
2.3 Jayawardana .A.K.W. and Gunawardana. N.D. “labour market issues of
Managerial and Supervisory personnel in the construction industry” (A case study in
Sri Lanka)
In this study two types of questionnaire were used for their survey and data collection as
Institutional Questionnaire among contractors, consultants and clients and Individual
Questionnaire survey among administrators, managers, professionals, technicians and
supervisors. Survey sample was comprised with 107 contractors listed in ICTAD.A postal
questionnaire was used and paid envelops were attached with the questionnaire. The

12. 5
response rate was 40%. In this research data processing was carried out manually as well as
using the computer software such as excel spread sheet package.
2.4 Praveen.R, Niththiyananthan.T, Kanarajan.S “Understanding and Mitigating the
Effects of Shortage of Skilled Labour in the Construction Industry of Sri Lanka”
The objectives of this study were to identify the causes for the shortage of skilled labour in
the Sri Lankan construction industry, the resulting effects due to the shortage and to come
up with effective mitigation measures. In this research the “Significance Index” was used
to rank causes and effects and the “Importance Index” was used to find the important
mitigation measures. Agreements between different parties were compared using
Spearman’s rank correlation coefficient method. This study revealed that the most
significant causal factor for skilled labour shortage is “inadequate number of trained
personne” and resulting effect is “time over-run” of construction project. This study also
revealed that “Increasing the wages” as the most important mitigation measure to
overcome this problem.
2.5 Samarakoon. S.M.S. “Causes and effects in medium scale building construction in
Sri Lanka”
In this research, a questionnaire survey was used among the construction industry in Sri
Lanka. The related factors were identified using the findings of previous researches and
interviewing the professionals working in medium scale building projects. A pilot survey
was carried out among 10 professionals working in related field. The sample was selected
according to snowball sampling method. The questionnaire was distributed using email,
hand and post.
2.6 MacKenzie.S , Kilpatrick. A. R. & Akintoye. A “UK construction skills shortage
response strategies and an analysis of industry perceptions”
This paper reveals that the construction industry is heavily dependent on the adequate
supply of a skilled labour force. The perception of the construction industry to the skills
shortage response strategies identified was investigated through a one-page postal

13. 6
questionnaire survey sent to 130 construction organizations. The response rate was
considered high compared with the norm of 20–30% for most postal questionnaire survey.
The respondents were asked to rank responses on a 6-point Likert scale. Additionally, they
were asked to indicate the order of preference for their response, and to rank their preferred
solutions for the industry. Finally it concludes as follows. “For long term training plans to
be successful the industry must ensure that there is an adequate supply of people entering
and encouraged to remain in the industry.”
2.7 Sadi A. Assaf , Sadiq Al-Hejji “Causes of delay in large construction projects”
A survey on time performance of different types of construction projects in Saudi Arabia
was conducted to determine the causes of delay and their importance according to each of
the project participants, i.e., the owner, consultant and the contractor. The field survey
conducted included 23 contractors, 19 consultants, and 15 owners.
Data were gathered through a questionnaire.
Frequency index: A formula is used to rank causes of delay based on frequency of
occurrence as identified by the participants
Frequency Index (F.I.) %=  a(n/N)* 100/4
Where; a is the constant expressing weighting given to each response (ranges from 1 for
rarely up to 4 for always), n is the frequency of the responses, and N is total number of
responses.
Severity index: A formula is used to rank causes of delay based on severity as indicated by
the participants.
Severity Index (S.I.)=  a(n/N)*100/4
where a is the constant expressing weighting given to each response (ranges from I for
little up to 4 for severe), n is the frequency of the responses, and N is total number of
responses.
Importance index: The importance index of each cause is calculated as a function of both
frequency and severity indices, as follows:
Importance Index (IMP.I.)%= (F.I.% * S.I %)/100
The Spearman’s rank correlation coefficient r is used to measure and compare the
association between the rankings of two parties for a single cause of delay, while ignoring
the ranking of the third party.

14. 7
CHAPTER THREE
MATERIALS AND METHODS
3.1 Survey Method –Questionnaire Survey
From the Literature Review a methodology was adopted for the study on “Shortage of
Skilled Labour in Construction Industry of Sri Lanka”. The methodology of collecting
data and analyzing them are discussed below.
Questionnaire survey was the main method of collecting data. Two types of
questionnaires were prepared, one targeting administrative and professional level such as
managers, engineers, architects and quantity surveyors. This questionnaire was
a quantitative one which was filled by them. Most of the questionnaires were sent by post
while email and manual methods (by hand) were also used whenever it wass appropriate.
The other questionnaire was a qualitative questionnaire targeting the labour. Unlike the
previous questionnaire this questionnaire was filled by ourselves i n most cases after
having face to face interviews with the labourers.
A sample size of 75 was selected (in the previous studies this figure is between 25 and
147) and a response rate of 40% is expected which is the average response rate of
previous studies. Altogether 150 questionnaires were sent. Both the snowball sampling
and the random sampling methods were adopted in selecting the sample size. For the
questionnaire survey the contact details of the relevant personnel were obtained from the
professional bodies like IESL, Institution of Architects and Institution of Quantity
Surveyors etc.
A pilot survey was conducted before sending the final questionnaire targeting 10 key
persons from the industry in order to get their feedback to fine tune the
questionnaire. A questionnaire feedback form was attached to get their feedback. The
questionnaires were prepared covering the following aspects and key areas in order to get
a clear response and to make the analysis easier and more effective.
Questionnaire A-Targeting Administration and Professionals
Background Information
Information about the organization
Information about the respondent

15. 8
02. Identification of the reasons for a shortage of skilled labour
03. Identification of the consequences of the shortage of skilled labour
04. Determination of mitigation measures
05. Conclusion.
Questionnaire B- Targeting Labours
01. Basic personal details
02. Type of job and work experience
03. Job satisfaction
04. Training and educational qualifications
05. Physiological aspects of the job
06. Future Plans with the job
In order to obtain a high response rate confidentiality was kept at its maximum and was
avoided asking for private details. A covering letter was attached with the questionnaires
in order to give an idea on the nature of the project expecting a high response rate.
3.2 Analytical Method
In order to calculate the severity and the importance of the consequences of the shortage
of skilled labour Importance Index and Severity Index were calculated. Relative
Importance Index were calculated from the above two indices in order to rank the causes
and the effects.
In order to calculate the frequency of occurrence of certain events, frequency index was
calculated. Importance Index was calculated to rank the importance of mitigation
measures.
The statistical methods adopted to analyze the data are as follows.
3.2.1 Frequency Index
Frequency Index was used to determine the frequency of occurrence of a certain event.
Frequency of Occurrence
1-Rarely
2-Sometimes

16. 9
3-Often
4-Always
Frequency index = a (n/N)*100/4
a-constant for weight given by each respondent
n-frequency of occurrence
N-Total number of response
3.2.2 Severity Index
Severity Index was used to rank the factors according to the severity.
Degree of Severity
1-Little
2-Moderate
3-Great
4-Extreme
Severity index= a (n/N)*100/4
a-constant for weight given by each respondent
n-frequency of occurrence
N-Total number of response
3.2.3 Relative Importance Index
This index was used to rank the factors in ascending order.
Relative Importance Index (RII) = (FIxSI)/100
3.2.4 Spearman’s Rank Correlation
Spearman Rank Correlation was used to determine whether there is any correlation
between two factors.
di = xi-yi (Difference between the ranks)
n-size of the sample
3.2.5 SPSS (Statistical Package for the Social Sciences)
This is a software package developed to analyze the data of social surveys. This software
was used to find correlations among certain factors.
 = 1 −
6 𝑑𝑖^2
𝑛(𝑛2 − 1)

17. 10
CHAPTER FOUR
RESULTS AND DISCUSSION
4.1 Results of Questionnaire A
4.1.1 General Characteristics of Respondents
Two questionnaire surveys were conducted, first one targeting the Engineers, Architects,
QSs and TOs and the second one targeting skilled labour.
4.1.2 Respondents of Questionnaire Survey 1
150 questionnaires of the first type were sent among professional engineers, architects, QS
and TOs out of which 71 responds were obtained with a respond percentage of 48%. The
distribution of the respondents by type of employment, involvement, category and ICTAD
classification are as follows.
Fig.4.1 Distribution by Employment Fig.4.2 Distribution by Involvement

18. 11
4.2 Findings of Questionnaire Survey-01
4.2.1Ranking of Casual Factors Causing a Shortage of Skilled Labour
Frequency Index and Severity Index were calculated for each and every factor mentioned
in the questionnaire. By multiplying both these indices Relative Important Index was
calculated. Based on Relative Important Index casual factors were ranked and the
summarized results of each category are tabulated as follows.
Table 4.1. Ranking of Casual Factors according to the view of involved parties
No
.
Casual Factors Client Consultant Contractor
RII Ran
k
RII Ran
k
RII Rank
1 Inadequate supply of skilled labour
from training institutes
54.81 4 52.07 1 62.3
9
2
2 Inadequacy of skills in the available
labour force
60.65 2 38.20 4.5 63.1
1
1
3 People's unwillingness to engage in
construction industry as labours
47.60 6 38.20 4.5 33.6
7
6
4 Management policy of the
organizations (Can manage with lesser
no. of skilled labours and a higher no.
skilled labour)
40.24 7 29.05 7 28.6
7
7
5 After training shifting their careers to
another field
50.30 5 36.27 6 38.9
9
5
6 Contractors do not provide training for
employees
57.69 3 39.77 3 49.0
8
4
7 Seeking foreign employment with
higher salary
71.56 1 44.90 2 49.1
1
3
Fig.4.3 Distribution by Category Fig.4.4 Distribution by ICTAD Grade

19. 12
Table 4.1. Ranking of Casual Factors according to the view of type of employment
No
.
Casual Factors
Engineer Architect QS TO
RII Rank RII Rank RII Rank RII Rank
1
Inadequate supply of skilled
labour from training institutes
48.66 1 87.89 1 56.25 3 57.95 3
2
Inadequacy of skills in the
available labour force
43.16 4 66.02 2 76.53 1 64.46 1
3
People's unwillingness to
engage in construction
industry as labourers
33.40 6 35.16 5.5 48.21 6 43.39 4
4
Management policy of the
organizations (Can manage
with lesser no. of skilled
labours and a higher no.
skilled labour)
30.83 7 14.06 7 34.69 7 35.95 6
5
After training shifting their
careers to another field
35.85 5 35.16 5.5 50.89 5 33.26 7
6
Contractors do not provide
training for employees
43.54 3 56.25 3.5 61.73 2 42.98 5
7
Seeking foreign employment
with higher salary
44.31 2 56.25 3.5 51.02 4 59.71 2
4.2.2 Ranking the effects of Shortage of Skilled Labour
Frequency Index and Severity Index were calculated for each and every factor mentioned
in the questionnaire. By multiplying both these indices Relative Important Index was
calculated. Based on Relative Important Index effects due to the shortage were ranked and
the summarized results of each category are tabulated as follows.
Table 4.2. Ranking of effects due to shortage according to the view of the type of
involvement
No
.
Effects Client Consultant Contractor
RII Rank RII Rank RII Rank
1 Delay in project duration/Slow
construction
68.34 1 53.64 1 55.56 3
2 Inability to understand drawings 47.89 4 44.16 6 38.17 10
3 Inability to manage unforeseen site
conditions
45.27 6 36.70 10 51.66 6
4 Poor Quality of work 62.13 2 45.69 3 54.79 4
5 Errors during constructions 46.60 5 38.27 9 52.23 5
6 Improper construction method 58.84 3 41.14 7 49.68 7
7 Less labour productivity 42.71 7.5 52.07 2 60.99 1
8 Material Wastage 42.71 7.5 44.94 4.5 56.92 2
9 Additional cost of removing bad works 35.39 9 39.01 8 46.60 8
10 Safety issues 34.39 10 44.94 4.5 41.20 9

20. 13
Table 3.4. Ranking of effects due to shortage according to the view of type of employment
No
.
Effects
Engineer Architect QS TO
RII Rank RII Rank RII Rank RII Rank
1
Delay in project
duration/Slow
construction
52.37 1 60.94 2 56.25 1 57.95 1
2
Inability to understand
drawings
42.02 8 39.06 9.5 45.92 7 51.24 2
3
Inability to manage
unforeseen site
conditions
45.48 5 51.56 3 45.92 7 34.71 9
4 Poor Quality of work 49.01 4 46.88 6 45.92 7 50.93 3
5
Errors during
constructions
43.11 6 42.19 7.5 48.47 5 40.29 6
6
Improper construction
method
41.92 9 42.19 7.5 53.32 3.5 48.04 4
7 Less labour productivity 50.72 3 71.09 1 53.32 3.5 43.44 5
8 Material Wastage 51.94 2 47.27 4.5 41.20 9 36.26 8
9
Additional cost of
removing bad works
36.87 10 39.06 9.5 55.74 2 39.05 7
10 Safety issues 42.37 7 47.27 4.5 18.24 10 32.23 10
4.2.3 Ranking the mitigation measures to overcome the shortage
Important Index was calculated to rank the mitigation measures to overcome the shortage
of skilled labour.
Table 4.4 Ranking of Mitigation Measures to overcome the shortage
No. Mitigation Measures
Client Consultant Contractor
RII Rank RII Rank RII Rank
1 Increase the supply of skilled labour 82.69 4.5 85.23 5.5 85.71 2
2
Improve the skills of the labours at
the company level
through proper in house training
78.85 6 75.00 14 81.25 5
3 Increase salary/ Wages 92.31 1 84.09 7 76.79 8
4
Establishment of minimum salary
level
59.62 14 76.14 13 72.32 10.5
5
Arranging seminar/training
programmes through ICTAD/IESL
90.38 2.5 97.73 1 83.93 3
6
Creating a healthy and safe working
environment
75.00 7 82.95 8 92.86 1

21. 14
7
Assess the level of skills of labourers
and provide a grading
system to motivate them mentally to
acquire skills
71.15 8.5 93.18 2 81.25 5
8
Conduct annual surveys on trends of
labour market, understand the
competencies required by the labours
in current industry and restructure the
format of training programmes
accordingly
69.23 10.5 85.23 5.5 75.00 9
9
Better coordination and
communication between training
institutes
67.31 12 79.55 12 81.25 5
10
Conduct awareness programmes for
contractors to recruit sufficient
number of skilled labour illustrating
the advantages associated with.
82.69 4.5 87.50 4 72.32 10.5
11
Provide a proper certificate of service
at the end of the
end of termination of service
evaluating the level of
competencies such that they can
present it somewhere else
as a valid certificate about his skills
90.38 2.5 89.77 3 77.68 7
12
Conduct annual survey to monitor the
demand and supply of
skilled labour
69.23 10.5 80.68 10 69.64 12
13
Making regulations on the minimum
number of skilled labour
and their competencies employed in a
construction project based on the size
of the project
65.38 13 80.68 10 59.82 14
14
Defining a minimum ratio of skilled
labour to unskilled labour depending
on the nature of the work
71.15 8.5 80.68 10 64.29 13

22. 15
Table 4.5. Ranking of Mitigation Measures to overcome the shortage according to the view
of type of employment
No. Mitigation Measures
Engineer Architect QS TO
RII Rank RII Rank RII Rank RII Rank
1
Increase the supply of
skilled labour
81.98 2 93.75 3 85.71 5.5 86.36 3
2
Improve the skills of the
labours at the company
level through proper in
house training
74.42 7.5 81.25 7 89.29 3 75.00 13
3 Increase salary/ Wages 75.58 6 93.75 3 92.86 1 84.09 4.5
4
Establishment of
minimum salary level
68.02 12 81.25 7 75.00 10 79.55 9
5
Arranging
seminar/training
programmes through
ICTAD/IESL
83.14 1 100.00 1 89.29 3 95.45 1
6
Creating a healthy and
safe working
environment
80.23 3.5 81.25 7 89.29 3 90.91 2
7
Assess the level of skills
of Labourers and provide
a grading
system to motivate them
mentally to acquire skills
79.07 5 81.25 7 85.71 5.5 77.27 11.5
8
Conduct annual surveys
on trends of labour
market,
understand the
competencies required by
the labours in
current industry and
restructure the format of
training
programmes accordingly
74.42 7.5 68.75 11 78.57 8.5 77.27 11.5
9
Better coordination and
communication between
training
institutes
73.84 9 75.00 10 71.43 12 81.82 6.5
10
Conduct awareness
programmes for
contractors to recruit
sufficient number of
skilled labour illustrating
the advantages associated
69.77 11 81.25 7 78.57 8.5 79.55 9

23. 16
11
Provide a proper
certificate of service at
the end of the
end of termination of
service evaluating the
level of
competencies such that
they can present it
somewhere else
as a valid certificate
about his skills
80.23 3.5 93.75 3 82.14 7 81.82 6.5
12
Conduct annual survey to
monitor the demand and
supply of
skilled labour
73.26 10 62.50 13 57.14 14 79.55 9
13
Making regulations on
the minimum number of
skilled labour
and their competencies
employed in a
construction project
based on the size of the
project
65.12 13.5 62.50 13 71.43 12 72.73 14
14
Defining a minimum
ratio of skilled labour to
unskilled labour
depending on the nature
of the work
65.12 13.5 62.50 13 71.43 12 84.09 4.5

24. 17
4.3 Overview of all the findings
Table 1 to 6 shows the detail analysis of the responds given by each category for each sub
section of the questionnaire. Moreover the responds given were ranked to find out the most
important factors under each sub sections. All those findings were analyzed as a whole in
order to have a general idea about each major issues addressed through the questionnaire.
The overview respond of the respondents are tabulated below against top five ranks.
Table 4.7 Summary of casual factors according to overall view
1 Inadequate supply of skilled labour from training institutes
2 Inadequacy of skills in the available labour force
3 Seeking foreign employment with higher salary
4 Contractors do not provide training for employees
5 After training shifting their careers to another field
Table 4.6. Summary of effects according to overall view
1 Poor Quality of work
2 Delay in project duration/Slow construction
3 Less labour productivity
4 Improper construction method
5 Material Wastage
Table 4.7. Summary of mitigation measures according to overall view
1 Arranging seminar/training programmes through ICTAD/IESL
2 Creating a healthy and safe working environment
3 Increase the supply of skilled labour
4 Provide a proper certificate of service at the end of termination of service
evaluating the level of competencies such that they can present it somewhere else
as a valid certificate about his skills
5 Assess the level of skills of labourers and provide a grading
system to motivate them mentally to acquire skills

25. 18
4.4 Agreement between the parties involved
The total sample of the survey was divided in to several categories. As a whole there is
homogeneity between the responses given by each category in most of the cases. Yet there
were instances where there is a difference between the responses given by two parties. In
order to calculate the homogeneity between the responses among the respondents
Spearman’s Rank od Correlation was calculated. It is a non-parametric test which
compares median rather than the mean.
Table 4.8. Spearman's Rank of Correlation among involved parties
Type
Correlation Coefficient
Causes Effects Mitigation Measures
Client vs. Consultant 0.65 0.25 0.59
Client vs. Contractor 0.82 0.18 0.45
Consultant vs. Contractor 0.67 0.51 0.31
Engineer vs. Architect 0.87 0.62 0.79
Engineer vs. QS 0.68 -0.03 0.74
Engineer vs. TO 0.54 0.18 0.55
Architect vs. QS 0.85 0.41 0.80
Architect vs. TO 0.73 0.30 0.53
QS vs. TO 0.61 0.54 0.36
The values obtained by Spearman’s Rank of Correlation falls in between +1 and-1. +1
indicates a strong relationship between the considered two parameters whereas -1 denotes a
strong disagreement between the parameters.
From the above table the highest value obtained is 0.87 which is between the engineer and
architect for the causes and the lowest is -0.03 between engineer and QS for the effects.
Since all the values obtained are positive except in one case it can be concluded that there
is a similarity between the responds given by the respondents inade

26. 19
4.5 Discussion of the results of Questionnaire A
Questionnaire A was conducted on the topic “Shortage of Skilled Labour in Construction
Industry of Sri Lanka”. The questionnaire consisted of four sub sections namely,
I. Background Information
II. Identifying the casual factors causing a shortage
III. Identifying the effects of the shortage
IV. Identifying mitigation measures for the shortage
150 questionnaires were sent and 71 responds were obtained. Respondents were
categorized based on the type of involvement as client, consultant, and contractor.
Moreover the respondents were further categorized according to the type of employment as
engineer, architect, QS and TO.
Collected data was analyzed using Frequency Index, Severity Index, Important Index and
Relative Important Index. According to the analysis inadequacy of supply of skilled labour
from training institutes, poor quality of work and arranging seminars/training programmes
through IESL/ICTAD were identified as the most important casual factor, effect and
mitigation measure for the shortage of skill labour in construction industry of Sri Lanka
Most of the respondents show a similarity among the responds. The correlation between
the respondents from each categories were calculated using Spearman’s Rank of
Correlation. Based on that in most of the cases there are positive agreements among the
parties involved except in one case.

27. 20

28. 21
4.6.2 Results regarding to training and migration analysis
Figure 4.5: Summary of the training analysis
Figure 4.6: Summary of the migration analysis
4.6.3 Grand summary of the Questionnaire
Table 4.12: Grand Summary Table
Item Percentage
01. Gender
Male 100%
Female 0%
02. Age Group
Bellow 35 Yrs. 42%
Above 35 Yrs. 58%
03. Work Experience
0-5 Years 30%
5-10 Years 42%
More Than 10 Yrs. 28%
04. Satisfaction
Salary 42%
Job 80%
No Of Leaves 100%
Work Load 92%
05. Training
Trained Before 42%
Need Further Training 48%
06. Wish To Work In Abroad 54%
07. Wish To Continue The Same Occupation 74%
skilledlaboursin
constructionindustry
trained - 42%
need further
training - 52%
no need - 48%
non trained - 58%
need further
training -45%
no need training -
55%
skilledlaboursin
constructionindustry
worked in
abroad - 18%
wish to go - 56%
not - 44%
not - 82%
wish to go abroad -
54%
not -46%

29. 12
4.6.4. Discussion of the results of Questionnaire B
Total sample size of the labour data analysis is fifty five consisting with fifty skilled
labours and five unskilled labours. Unskilled labours were surveyed to having the basic
idea about their career and analyzed whether this human resource can be converted to the
skilled labour category. According to this sample Female participation for the construction
industry of Sri Lanka is negligible. Majority of the sample is represented by masons while
the lowest is tillers. This result interprets the negative attitude of the young people towards
the construction industry because the majority of the sample represents the elderly people.
But the literacy level of the sample is at a good level.
Most of the skilled labour categories are shown less work experience, i.e.: less than 10 year
experience, except the masons. When considering all the labour categories there are only
28% who has more than 10 year experience. They usually shift their carrier for another
after working 5 years or more. But 74% is hoped to carry out the same occupation for
future. Work experience of the unskilled labour category is almost 100% with less than
five years working experience. Thus, Work experience is a major factor that influence for
the sharpening of skills with in the construction industry.
When we concern about their salary satisfaction, it shows that only 42% is satisfied about
their current wages. Their expected wage is so differed from what they earn. However most
of the surveyed skilled labours are satisfied with their job and working loads. Concrete
workers are the least satisfaction labour category for the above three.
And also most of the Sri Lankan skilled labours are served with their work experience
instead of having formal training. According to this survey, there are only 42% who has a
formal training at current situation and 48% is expected to have further or basic training for
overcome the shortage of skills with in the construction industry. Most of the surveyed
skilled labours arre qualified with the NVQ (Certificate Level) and were trained through
NAITA, Sri Lankan Army, ICTAD, Sri Lankan Youth Service Council and Small Industry
Development Board.
And 54% of the surveyed skilled labours are preferred to work in foreign countries due to
this less wage relative to other countries. So this skills drain is another critical issue
towards the skill shortage.

30. 13
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.1.1. Conclusion for Questionnaire A
According to the analysis the lack of supply of training institutes is the main reason for the
shortage of skilled labour in construction industry of Sri Lanka. Apart from that the lack of
skills in the current workforce and skill drain for foreign countries expecting higher
salaries could be identified as casual factors.
Due to the shortage of skilled labour, poor quality of works could be identified as the most
severe effect. Other than that delay in construction and less labour productivity are
identified as the adverse effects of shortage.
5.1.2. Recommendations of Questionnaire A
From the results obtained from the questionnaire arranging seminar/ training through
ICTAD/ IESL is the best recommendation to overcome from the issue. In the meantime
creating a safe and healthy working environment would attract more people to the
construction industry.
Also in order to attract more Labourers salary structure should be restructured. It would be
also useful to prevent skill drain.
Along with that the supply of skilled labour from training institutes too have to be
increased.

31. 14
5.1.2 Conclusion of Questionnaire B
Though the most of the construction sites are full with unskilled labours, the available
skilled labour resource is not sufficient with the demand. The following reasons can be
concluded for the skills shortage within construction industry of Sri Lanka after analyzing
the career and background details of labours.
1. Less wage relative to the other countries
2. Inadequate training
3. Skills drain
4. Less work experience
5. Shifting of the career for another profession
6. Negative social attitude towards the labour industry
7. Wastage of female skills without contributing for the development of country
5.1.2 Recommendations for questionnaire B
It should be mentioned that the labour data analysis study was only limited for the
construction sites at Kandy and Colombo, by considering the time availability for the
study. So it is recommended to carry this study further among some more districts by
increasing the sample size. Hence it will be help to obtain more effective results related to
the whole country.

32. 15
REFFERENCES
1. Central Bank of Sri Lanka Annual Report 2013
Department of Census & Statistics, Sri Lanka
2. Gunawardena. N.D. and Jayawardana. A.K.W. “The training needs of construction
workers in Sri Lanka”
3. IMacs Research & Analytics 2011
4. Jayawardana.A.K.W. and Gunawardana. N.D. “labour market issues of Managerial
and Supervisory personnel in the construction industry” (A case study in Sri Lanka)
5. Jayawardana. A.K.W. and Pandita. H.G.W. “Understanding and mitigating the
factors affecting construction delays”
6. Jayawardena. H.K., Senevirathne. K. and Jayasena. H.S. “Skilled Workforce in Sri
Lankan Construction Industry: Production vs. Acceptance”
7. Karunathilaka. C.P.A. “Trends in Labour Markets and Future Challenges, the
Experience of Sri Lanka2006”
8. KPMG’s 2013 Global Construction Survey
9. MacKenzie.S , Kilpatrick. A. R. & Akintoye. A “UK construction skills shortage
response strategies and an analysis of industry perceptions”
10. Nayanthara De Silva, Rajakaruna R. W. D. W. C. A. B., and Bandara K. A. T. N.
“Challenges faced by the construction industry in Sri Lanka: perspective of clients
and contractors”
11. Praveen.R, Niththiyananthan.T, Kanarajan.S “Understanding and Mitigating the
Effects of Shortage of Skilled Labour in the Construction Industry of Sri Lanka”
12. Sadi A. Assaf , Sadiq Al-Hejji “Causes of delay in large construction projects”
13. Samarakoon. S.M.S. “Causes and effects in medium scale building construction in
Sri Lanka”
14. Survey of Construction Industries 2011

33. 16
APPENDIX
Questionnaire 1- Managerial and Engineer Level
Shortage of Skilled Labour in Construction Industry of Sri Lanka
01. Background Information
a.) About organization
1. ICTAD grade for construction:
2. Company type :
b.) About respondent
Architect E n g i n e e r Q S T O
Likeness of Occurrence Degree of
Severity
1-Rarely 1-Little
2-Sometimes 2-Moderate
3-Often 3-Great
4-Always 4-Extremely
02. Identification of
Casual Factors
Likeliness of
occurrence
Degree of Severity
1 2 3 4 1 2 3 4
1) Inadequate supply of skilled labour from
Training Institutes.
2) Inadequacy of skills in the available
labour force
3) People's unwillingness to engage in
construction industry as labours
4) Management policy of the organization
(Can manage with lesser no. of skilled
labour and a higher no. of unskilled labour)

34. 17
5) After training shifting their carrier to another
field
6) Contractors do not provide training for
employees
7) Seeking foreign employment with higher
salary
03. Identification of effects
Likeliness of
occurrence
Degree of Severity
1 2 3 4 1 2 3 4
1) Delay in project duration/ slow construction
2) Inability to understand drawing
3) Inability to manage unforeseen site condition
4) Poor quality of work
5) Errors during construction
6) Improper construction method
7) Less labour productivity
8) Material usage
9) Additional cost of removing bad work
10) Safety issues
04. Identification of mitigation measures
For the following section please use this system to indicate
their importance
Importance Index
1-Not Important 3-Important
2-Less Important 4-More Important

35. 18
Important Index
1 2 3 4
1) Increase the supply of skilled labour
2) Improve the skills of the labours at the company level through
proper in house training
3) Increase the salary/wage
4) Establishment of a minimum salary level
5) Arranging training programmes/seminars through ICTAD/ IESL
ICTAD/IESL
6) Creating a healthy and safety working environment
7) Asses the level of skills of labours and provide a grading system to
motivate them mentally to acquire skills
a grading system to motivate them mentally to acquire skills.
8) Conduct annual survey on trends of labour market,
understand the competencies required by the labour
in current industry and restructure the format of training
programmes accordingly.
9) Better coordination and communication between training
institutes and the industry
10) Conduct awareness programmes for contractors to recruit
sufficient number of skilled labour illustrating the advantages
associate with
11) Provide a proper certificate of service at the end of termination
of service evaluating the level of competencies such that they
can present it somewhere else as a valid certificate about his
skills
12) Conduct annual survey to monitor the demand and supply of
skilled labour
13) Making regulations on the minimum number of skilled labour
and their competencies employed in a construction project
based on the size of the project
14) Defining a minimum ratio of skilled labour to unskilled labour
depending on the nature of work

36. 19
Questionnaire 2- For Labours
Shortage of Skilled Labour in Construction industry of Sri Lanka
1. What is your age?
.................................................................................................................
2. What is your gender? Male Female
3. From where are you?
.................................................................................................................
4. Social status : Married Single
5. What is your level of education?
o-8 years of school
upto GCE O/L Examination
upto GCE A/L
Examination
passed GCE A/L
Examination
6. What is your present category of
work?.......................................................................................
7. Have you worked in other categories of work
previously?..........................................................
If yes what are
they?.....................................................................................................................
8. For how long have you been working in your present area of
work?..........................................
9. How many companies or projects you have worked
before?........................................................
10. If you have worked for any other company or project what is the reason for
shifting the Company?
Project was finished and there were no other
vacancies in that company after thatlack of
wages
Too much work load
poor working or living
conditions
shortage of leaves or
holidays
other

37. 20
specify………………………………………………………………………………………………
………….......
11. Are you satisfied with your job? Yes No
12. If no what is the main reason?
Salary is not enogh
Poor safety/working conditions
Too much work load
Less number of
holidays
Lack of skills
Other
Specify…………………………………………………………………………………………
……............
13. What is your present
salory?...............................................................................................................
14. Are you satisfied with your salary? Yes No
15. If no how much of a wage increment you
expect?..............................................................................
16. Are you satisfied with your work load? Yes No
17. Are you satisfied with the number of leaves you have? Yes No
18. Do you wish to continue with the present category of the work in future? Yes No
19. If no
why?........................................................................................................................................
....
20. If no what is the job that you wish to do in
future…………………………………………………
21. Have you received any formal training in your particular area of work? Yes No
22. If yes what is the level of training you have recived?
Diploma
National vocational qualification
Specify the
level………………………………………………………………………………………………
Certificate level
Other
Specify…………………………………………………………………………………
……………

38. 21
23. What is your training institute?
Specify………………………………………………………………………………………………………
………………………………………………………………………………………………………………..
24. Do you think that the training you had is sufficient to meet the requirement of your
job? Yes No
25. Do you think a further training is necessary? Yes No
26. Do you think it is possible to have a further training while working? Yes No
27. Have you worked in abroad before? Yes No
28. If yes why do you come back to Sri
Lanka?........................................................................................
29. If no do you wish to go abroad in future? Yes No
30. If yes
why?........................................................................................................................................
..

39. 22
FEEDBACK FORM FOR PILOT SURVEY
SHORTAGE OF SKILLED LABOUR IN CONSTRCTION INDUSTRY OF SRI LANKA
After going through the preliminary survey please fill the feedback form in order to assist
us in fine tuning the Questionnaire which expected to be used in the final survey of the
project.
1. How long did it take to complete the questionnaire? Is it too long?
...................................................................................................................................................
2. Were the questions clear and adequate?
…………………………………………………………………………………………………………………………………………….
3. Were there any unclear questions? If so please indicate them and give your ideas on
how they can be modified?
…………………………………………………………………………………………………………………………………………….
4. Did you reject answering any questions? If so please indicate them and give us an
appropriate method to improve them.
…………………………………………………………………………………………………………………………………………….
5. Were there any inappropriate questions which have to be removed? If so indicate
them.
…………………………………………………………………………………………………………………………………………….
6. Was the layout clear and attractive? If not how shall it be improved?
…………………………………………………………………………………………………………………………………………….
7. Was the format clear and appropriate? If not, how shall it be modified?
…………………………………………………………………………………………………………………………………………….
8. Do you think any more questions should be included in the questionnaire? If so
what are they?
...................................................................................................................................................
9. Other comments
………………………………………………………………………………………
……………………………………………………………………………………....
Thank You!