The objective of this research was to use fifty indigenous construction firms in grade one to three registered with NCC in Lusaka (1) to examine whether number of employees employed by indigenous construction firms affect value of a contract, (2) to find out whether financial investment affect value of a contract of indigenous construction firms and (3) to investigate whether value of capital assets affect value of a contract of indigenous construction firms in 2018.
This study was cross-sectional in design. The subjects consisted of a stratified random subpopulation of 130 indigenous registered firms with NCC, drawn from grades one to three, and sampled 50 firms. National council construction (NCC), central statistics office (CSO), and financial statements of the companies sampled provided the population and detailed information used in the study. The factors assessed for 2018.
Table of Contents
1.0 Introduction
1.1 Problem Statement
1.2 General Research Question
1.2.1 Research Questions
1.3 General objectives of the study
1.3.1 Specific Objectives
1.4 Scope of the Study
1.5 Significance of the Study
1.6 Organization of the Study
2.0 Introduction
2.1 Investment
2.2 Types of investments
2.3 Value of the contract
2.4.2 Financial Investment Value
2.4.3 Value of Capital assets
2.5 Types of Financial Investments
2.5.1 Certificates of Deposit
2.5.2 Stocks
2.5.3 Mutual Funds
2.5.4 Bonds
2.6 Investment process
2.7.1 Security Analysis
2.7.2 Portfolio Management
2.8 Small and medium-sized enterprises (SMEs)
2.9 Contractors
2.10. Subcontractor
2.11 The overview of the Policy in Zambia
2.12 Construction Policies in Various African Countries that encourage indigenous construction firm’s growth in contract value
2.12.1 Construction policies in South Africa to encourage growth in contract value
2.12.2 Construction policies in Nigeria to encourage growth in contract value
2.12.3 Construction policies in Ghana to encourage growth in contract value
2.12.4 Construction policies in Kenya to encourage growth in contract value
2.12.5 Summary of the Construction Policies of the different countries aimed at encouraging growth in contract value
2.13 Empirical Analysis
2.14 Critique of literature reviewed
2.15 Conclusions
3.0 Introduction
3.1 Theoretical Framework
3.2. Basic Production Theory
3.2. Modern Portfolio Theory
3.3. Summary of Theories
3.4. Conceptual Framework
3.4.1 Hypothesis Development
3.4.2. Operationalization of the Concepts
3.4.3 Value of the contracts
3.4.4 Number of Employees
3.4.5 Financial Investment Value
3.4.6. Value of capital asset
3.4 Summary
4.0. Introduction
4.1. Research Design
4.2. The Study Area
4.4. The Target Population
4.5. Sample Size
4.6. Sampling Methodology
4.7. Data Collection Tools
4.8. Data Analysis
4.9. Research Ethics
4.10. Limitations of Research
4.11. Summary
5.0 Introduction
5.1 Level of response
5.2 Data preparation
5.3 Descriptive Statistics of Dependent and Independent Variables
5.5 Correlation Matrix
5.6 Multiple Regression
5.6.1 Model Summary
5.6 Coefficient Model Summary of the Independent and Dependent variables
5.7 Hypotheses Testing
5.7 Discussion of the Results
5.9 Discussion of findings and Implications
5.9.1 Discussion of the Results
5.9.2 Research Question One: Does the number of employees employed by Indigenous construction firms affect value of a contract tendered for?
5.9.2.1 The number of employees
5.9.3 Does the number of employees employed by indigenous construction firms affect value of a contract?
5.9.3.1 Financial investment value
5.9.4 Does the value of capital asset affect the value of a contract for Indigenous construction firms?
5.9.4.1 Value of capital assets
5.10 Chapter Summary
6.0 Introduction
6.1 Summary of research conclusions
6.2 Recommendations of the study
6.3 Future research
6.4 Summary
6.5 Conclusion
Research Objectives and Thematic Areas
The primary objective of this research is to evaluate the key factors influencing the value of contracts awarded to indigenous construction firms in Lusaka, specifically examining the impact of workforce size, financial investment, and capital asset value. The study seeks to address how these variables contribute to the growth and competitive capacity of local firms within the Zambian construction sector.
- Analysis of the relationship between the number of employees and contract value.
- Investigation into the role of financial investments in enhancing construction firm growth.
- Assessment of how capital asset values influence a firm's ability to secure high-value contracts.
- Review of current construction policies in African nations and their impact on local firm development.
Extract from the Book
2.3 Value of the contract
A contract is an agreement between two parties, and in this case, it is an agreement made with the construction firm and contractor (Thomas & Wright, 2016: Mau, 2010: Patra, 1962). Concurring to Ahmed et’ al (2002), the value of the contract of any project, depends on the length of the contract, the number of workmanships required to complete the works and the value of capital assets required to efficiently execute the construction works. In Zambia, the main contractor is usually the Zambian Government. Additionally, Kaliba et al. (2009). Indigenous construction firms have challenge in competing with foreign contractors due to various constraints such as, poor working conditions, access to investment and working capital to acquire capital assets, mainly aimed at growing assets, participating in high value contracts depends on the length of bids and ability to overcome all chronic cash flow challenges caused by delayed payments; procurement processes, and public tendering aimed at maximizing firms potential to bid for high value contracts .
Summary of Chapters
CHAPTER ONE: Provides an overview of the construction industry in Zambia, identifying the problem statement regarding indigenous firms' growth and defining the research objectives and scope.
CHAPTER TWO: Reviews literature on investment types, contract values, and international construction policies, offering a comparative analysis of how different African countries support local contractors.
CHAPTER THREE: Outlines the theoretical foundations using Basic Production Theory and Modern Portfolio Theory, and presents the conceptual framework and hypothesis development.
CHAPTER FOUR: Details the research methodology, including the cross-sectional descriptive design, target population of 130 firms, sampling techniques, and data collection tools.
CHAPTER FIVE: Presents and analyzes the empirical data collected from the sampled construction firms, evaluating the research hypotheses through multiple regression analysis.
CHAPTER SIX: Summarizes the research findings, offers recommendations for policy and firm management, and suggests areas for future research.
Keywords
Indigenous construction firms, Lusaka, Contract value, Number of employees, Financial investment, Capital assets, Zambia, Construction policy, Subcontracting, SME growth, Modern Portfolio Theory, Basic Production Theory, Market competitiveness, Economic development, Procurement regulations.
Frequently Asked Questions
What is the primary focus of this research?
The research primarily focuses on assessing the factors that affect the value of contracts awarded to indigenous construction firms in Lusaka, Zambia.
What are the central themes of the study?
The central themes include the impact of workforce size, financial investment levels, and the value of capital assets on the ability of local construction firms to secure and successfully execute higher-value contracts.
What is the core research question?
The core research question asks how specific internal firm factors—namely employee count, financial investments, and capital assets—influence the contract values obtained by indigenous Zambian construction firms.
What methodology was employed in this study?
The study utilized a cross-sectional descriptive research design, collecting both qualitative and quantitative data from a sample of 50 indigenous construction firms registered with the National Council for Construction (NCC).
What topics are covered in the main body of the work?
The main body covers literature on investment and construction policies, the theoretical framework (Basic Production and Modern Portfolio theories), research methodology, data presentation, and a detailed discussion of findings through regression analysis.
Which keywords characterize this work?
Key terms include indigenous construction firms, Lusaka, contract value, construction policy, subcontracting, and financial investment.
What was the outcome regarding financial investments?
The study found that financial investment had an insignificant effect on the value of contracts for the firms sampled, primarily because most firms did not engage in diverse financial investment portfolios due to a lack of excess funds and knowledge.
How does the number of employees correlate with contract value?
The findings indicate a significant positive correlation, meaning that firms with larger workforces (reflecting greater capacity and expertise) are more likely to be awarded higher-value contracts.
What is the role of capital assets according to the study?
Capital assets are shown to have a significant positive relationship with contract value, as they serve as both necessary tools for project execution and as potential collateral for financing.
- Arbeit zitieren
- Norah Mpundu (Autor:in), 2019, Factors affecting the value of contracts for indigenous construction firms in Lusaka, München, GRIN Verlag, https://www.grin.com/document/1215906
