Comparative Analysis on Building Construction Labour Management Practices of Local and Foreign Contractors in Addis Ababa

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Addis Ababa University


Labour management in building construction has an essential impact on controlling manpower related problems. Ineffective construction labour management is always a source of claims, conflicts, unproductivity, cost overrun, and delay affecting overall performance of the construction projects causing imperfect competition among local and foreign construction contractors. This study was aimed at conducting a comparative analysis of building construction labour management practices between local and foreign contractors in Addis Ababa. It is important to identify the trend gaps between these contractors, and work for improvement. The principal tools used to conduct this research are literature review to select the most common building construction labour management practices identifying 39 factors leading to affect management practices, and experiences of other countries; two separate semi-structured survey questionnaires for contractors at head offices and at project site, and semi-structured interview with senior Foreman (Craftsmen). Using the Kish sampling technique a total of 112 respondents (i.e. 40 Contractors, 40 Engineers, 32 Foreman (Craftsmen)) has been involved in the study from both foreign and local construction contractors. The study has used the SPSS software of 20.0 version to analyze the responses from survey questionnaire and calculated RII to prioritize the leading factors. The study has revealed major problems of building construction labour management practices from both local and foreign contractors affecting their performance. According to the results of the study; lack of HRM personnel, technical selection criteria, lack of scheduled training, minimum labour wage scale and labour-relation are found to be the major factors affecting contractors’ performance. Comparative study of management-related and labour-related problems also has been done. Finally, relevant recommendations for the conclusions made, and future research areas are forwarded.



Labour, Labour Management Practices, Labour-Relations, Manpower Planning, Retention, Selection and Recruitment, Training, Wage, Payment