Search

Purpose The UK government has elaborated the effect of late payment on the economy, with its impact on the construction sector being particularly pronounced. This paper aims to evaluate the late payment epidemic that persists within the construction industry, specifically analysing the effectiveness of government-led voluntary payment initiatives. Design/methodology/approach A mixed philosophical lens is adopted that incorporates both pragmatism and post-positivism to examine the late payment phenomena. Couched within deductive reasoning and a case study strategy, a questionnaire survey was conducted to elicit responses from one-hundred construction professionals. Elucidating upon respondents’ perceptions of the UK’s late payment epidemic, a comparative analysis was undertaken of upstream (main contractor) and downstream (subcontractors/suppliers) contractors through Cronbach’s alpha, descriptive statistics, independence chi-square test, Kruskal–Wallis test and Mann–Whitney U test. Findings Emergent findings reveal that in practice, the monitoring and enforcement of government-led voluntary payment initiatives has been unprosperous with numerous contractors being forced to adopt indefensibly poor and punitive payment practices. Survey responses and extant literature substantiate and underscore the industry’s need to strengthen voluntary government-led payment initiatives. To create a responsible payment culture, any future code created should be mandatory and enforceable as a self-regulating approach has failed dismally. The work concludes with practical additional measures that could be introduced to create a responsible payment culture and promote ethical trading within the UK construction industry. Originality/value This paper constitutes a novel vignette of, and reflection upon, contemporary practice in this area of construction finance and serves to emphasise that very little has changes in the sector despite numerous UK government led reports and interventions.

Purpose Construction companies require meticulous and thorough financial planning to ensure business survival in an increasingly competitive global market. Past studies assert that cash flow management is also crucial to meeting project and organisational performance expectations. However, the link between an advance payment system (APS), cash flow and project performance has hitherto received scant academic attention. Therefore, this study aims to investigate the attributes and impact of APS on cash flow, project and organisational performance. This study surveyed all registered contractors listed in Grades 1–9 on the Construction Industry Development Board Register of Contractors in South Africa. Design/methodology/approach This study adopted an empirical epistemological design and deductive reasoning to analyse primary data collated via a questionnaire data collection instrument. Summary statistical and regression analysis were used to explore data garnered. Findings This study found that key significant attributes of APS in South Africa were payment of balance to the contractor upon project delivery; advance payment to contractors before the commencement of the work; and payment to contractors as agreed. This study proffers that project performance in terms of cost, time and quality performance is highly and positively supported by APS. Moreover, APS positively supports the efficiency, competitiveness and profitability of construction organisations. Cumulatively, these findings confirm that APS attributes in South Africa conforms to the global attributes of APS. The research concludes that client use of APS on projects improves the likelihood of attaining improved quality and time performance. This paper concludes with a recommendation that both public and private clients consider the option of an APS as the ideal payment system to support project and organisational performance. Originality/value To the best of the authors’ knowledge, this work constitutes the first attempt to explore the linkages between an APS, cash flow and project performance in South Africa and seeks to engender wider polemic debate and further discussion among industry stakeholders.

Purpose Ghana has set an objective of achieving 10% of its energy requirements through renewable sources, by 2020. However, to date, the renewable energy (RE) sector has attracted only marginal investor interest. This paper aims to identify the challenges faced in financing RE in Ghana. Design/methodology/approach A comprehensive review of literature in renewable energy finance was conducted and 12 financing challenges were identified. From this list, a questionnaire was developed asking to rank barriers. This was distributed to experts within financial institutions and 32 were returned. A factor analysis and severity index analysis were performed to identify a ranking of challenges impeding RE project financing in Ghana. Findings The challenges to RE financing fall into the three broad categories, namely, “economic, commercial and regulatory” challenges. Within these broad constraints, “long payback periods,” “limited track record” and “high upfront cost” are the most severe impediments to obtaining financing for RE. Practical implications Identifying the specific conditions that make an investment in RE unattractive, give policymakers set on achieving the 10% RE goal, a way forward in developing a targeted policy that would mitigate identified investor disincentives. Originality/value The broad range of potential barriers to investment are known. However, this study combines a specific governmental ambition – encouraging the financing of RE – with a specific set of identified barriers inhibiting that ambition. In this regard, this study identifies exactly where the government needs to act if it is to facilitate investment in RE, as is required for Ghana to reach its 10% RE target.

Purpose This paper aims to assess the impact of infrastructure development on Ghana’s economic growth. Design/methodology/approach Using data obtained from the World Bank’s World Development Indicators, the United States’ (US) International Energy Statistics and the Central Intelligence Agency’s (CIA) Factbooks from 1980 to 2016, an autoregressive distributed lag (ARDL) framework is used to determine the long- and short-run impact of the selected infrastructure stock and quality indices on Ghana’s economic growth. Findings Findings indicate a statistically significant relationship between infrastructure development and economic growth. Additionally, electricity-generating capacity is identified as the infrastructure stock index that has the greatest positive impact on Ghana’s economic growth. The study reveals that electricity-distribution loss has a significant negative effect over both long- and short-run periods. Research limitations/implications Commercial petroleum export from Ghana since 2010 has been a key contributor to economic growth. Although its aggregate effect is included in the annual GDP figures adopted for the study, the authors would have wished to assess its impact on GDP as an independent standard growth determinant. However, because of a lack of available data over this study period, petroleum exports could not be adopted as an independent standard growth determinant. Additionally, an aggregated index of infrastructure stock and quality could not be derived because of the small size of data available. Hence, this study did not assess its impact on Ghana’s economic growth. Practical implications The research provides pragmatic guidance to policymakers to focus their efforts on expanding electricity-generating capacity while simultaneously taking steps to curb electricity transmission and distribution losses. These two related actions offer the greatest positive impact on infrastructure development and, as a consequence, Ghana’s economic growth. Originality/value This paper represents the first attempt to empirically study the relationship between infrastructure development and Ghana’s economic growth. A key contribution to the existing body of knowledge includes strong evidence of a positive effect of infrastructure development upon Ghana’s economic growth. Results also reveal that the greatest positive impact on economic growth is derived from electricity-generation capacity. However, the study also uncovers a negative, but statistically significant, relationship between road and economic growth.

PurposeAlthough a high proportion of the Ghanaian population live and work in under‐developed areas, research on rural infrastructure development is scarce. The purpose of this paper is to explore the challenges confronting rural infrastructure development and the requisite incentives needed to boost it.Design/methodology/approachAn inductive methodological approach was adopted using a structured questionnaire to survey the perceptions of rural contractors.FindingsIncentive systems identified include the provision of mobilization funds for projects; a plant pool for rural contractors; special allowance for rates of project items; and provision of letters of credit to secure loans for projects. Key challenges confronting rural construction were identified as a lack of financial institutions willing to support projects with funds; lack of potable water; lack of good health care systems; and lack of a goods market to supply materials.Research limitations/implicationsIdentification of challenges and incentive systems for rural infrastructure development provides an opportunity to reinvigorate rural infrastructural development in sub‐Saharan Africa.Practical implicationsThe study will be of value to all project partners throughout the supply chain who contemplate rural infrastructure development.Originality/valueThe paper presents a novel epitome of rural infrastructure delivery in the developing country of Ghana.

PurposeFailure to resolve Ghana's infrastructure deficit, coupled with inability of traditional financing methods to meet current infrastructure demand, have triggered recent studies to explore strategic issues underpinning innovative financing (IF) of infrastructure. The purpose of this study is to explore potential impediments inherent in IF tools available to Ghana.Design/methodology/approachThe empirical aspect of the investigation used structured interviews and a survey questionnaire to gather data from project implementation agencies with experience of infrastructure IF. Factor analysis (principal component analysis) established which variables measured aspects of the same underlying dimensions.FindingsA total of three key challenges were identified, and explained in terms of: investment capacity; implementation and revenue mobilization. Findings provide an early failure signal when implementing IF.Practical implicationsConclusions and recommendations are of benefit to various international development partners and governmental and non‐governmental organizations that develop and/or implement infrastructure projects. Further research will seek to explore strategic, innovative solutions to on‐going challenges.Originality/valueKnowledge of the critical challenges facing implementation of IF remain scant and incomplete.

PurposeAs a tool to help compliance with relevant health and safety legislation, a cost‐effective method of risk assessing construction workers' exposure to hand‐arm vibration (HAV) is presented that allows larger numbers of workers to be evaluated, either as a stratified sample of a population or as a population where numbers are not prohibitive.Design/methodology/approachThe method, developed and tested in the field with a national UK contractor, employs work study to collect exposure level data of workers undertaking real work and analyse these, to inform HAV management and risk control decisions.FindingsThe method benefits from economies of scale to efficiently risk assess large numbers of workers, without the need for specialist equipment or analysis software. It can be applied to sample strata defined by, for example, equipment used, types of work or classifications of worker.Research limitations/implicationsResults add to the growing body of academic knowledge relating to construction worker HAV exposure and its management.Practical implicationsThe method can easily be moulded to suit any type of construction organisation and help control cost associated with HAV legislation compliance.Social implicationsPotential benefits of controlled HAV exposure include reduced incidence of (HAV induced) medical conditions and concomitant personal financial gains to society.Originality/valueThe method and context are novel. The methodology of work study and sampling in a broader sense are well established.

PurposePlant and equipment theft (PET) is inherent throughout the construction sector. Its effect places direct financial burden on those who have invested in such assets, but additionally, induces “indirect” costs for many other stakeholders including project owners, plant hirers and construction managers. The paper's objective is to take and discuss a snapshot of PET, the overriding aim being to aid greater understanding of it and in particular, the application of (post‐theft) recovery technologies.Design/methodology/approachDescriptive case study data are considered along with informal, anecdotal evidence provided by practitioners. These data are qualitatively considered; observations are discussed; a model representation of PET and recovery is developed; and conclusions are drawn.FindingsPlant and equipment thieves are shown to be audacious and determined, but it is identified that in addressing these characteristics, recent advances in plant security and recovery technologies (PSRT) have been significant. Arguably, PSRT are not being adopted as broadly as they should be to offset the PET problem.Research limitations/implicationsThe formal model of PET might help inform future academic endeavour in the subject of plant and equipment management generally and PET specifically.Practical implicationsThe model suggests that more widespread use of PSRT may not only help defeat plant thieves, but additionally help recover stolen assets and identify organised criminal networks.Originality/valueThe work is novel in setting and will be of interest to both academics and practitioners in the field.

The Control of Vibration at Work Regulations (CVWR), quantify workplace vibration exposure using exposure action, and exposure limit values (EAV and ELV respectively). Hand‐arm vibration (HAV) risk can be objectively assessed using hand‐tool vibration magnitude data, for comparison to the EAV and ELV. When considering risk controls, one disadvantage of this ‘focus’ on vibration magnitude, is that it might deflect appreciation of the economic implications of such controls, resulting from for example: restrictions on tool usage time; the need for operator rotas where continuous tool use is required; and complications in estimating labour costs because of these types of condition. Based on a sample of hand‐tools’ performance data, this research developed ‘hybrid’ (performance/vibration) dimensions for quantifying tools’ efficacy; representing (interalia) units of work achievable to reach the EAV and ELV. These hybrid dimensions characterize an alternative performance‐based (and therefore financially related) way of considering a tool’s ‘suitability’ within CVWR parameters; over and above the (selection) criterion of tool vibration magnitude. Analyses are then presented that investigate the time and cost ramifications of using multiple operators, to sustain continuous tool usage while keeping exposure levels within CVWR limits.