Impact of Globalization on Sustainable Implementation in the Construction Industry: Dynamics of Construction Tender-Price Volatility (Published)
Construction infrastructure plays a crucial role in development, bringing significant implications for resource utilization. Henceforward, specific measures for alleviating challenges associated with sustainable construction become crucial-general arguments of good industry practice. Construction-sector sustainability is increasingly important in developing countries, and threats of globalization amid construction-tender price volatility require immediate action. The purpose of this paper is threefold. The first is to investigate, through a literature review, the indicators of globalization concerning the construction sector. The second intention is to evaluate the empirical impacts of globalization on the construction sector with a focus on the derivation of construction tender-price. Thirdly, the study intends to separate the contributions of foreign direct investment (FDI) to global integration for construction sustainability. The study adopts qualitative and quantitative approaches that follow a case study and causal research design to explore and understand decisions and opportunities regarding construction-tender price inflation. The study utilizes content, thematic, and statistical methods for data analysis. The study finds that construction tender prices increased by an average of 49.7% per annum for periodic maintenance of feeder roads between 2012 and 2021, with varying correlations to globalization indicators. The research highlights notable disadvantages of foreign direct investments in the construction sector through the emergence of foreign firms in developing countries. The drawbacks include instigating unfair competition, initiating adverse knockout effects on local firms, exterminating local firms, and perpetuating corruption. In addition, the study identifies areas requiring attention to address the impacts of globalization in the construction sector. Critical areas include legislating procurement controls that protect local firms and improving the qualifications and competencies of local firms. The study further underscores mitigation measures against the adverse effects of foreign firms in the construction sector. These measures include providing training to local firms, managing the nature and type of competition, managing the nature and type of competing firms, and building the capacity of local firms.
Keywords: Foreign Direct Investment, Globalization, construction sustainability, tender price variableness, the construction sector
Impact of Tender Price Variability on Economic Sustainability of Construction Sector in Developing Countries (Published)
Economic sustainability in the construction sector is increasingly important in developing countries, and threats from construction tender price variability and inflation require immediate action. While global trends emphasize sustainable construction practices triggered by rapid economic growth and augmented environmental impact considerations, this paper underscores the significance of adopting tender-price practices that focus on attaining economic sustainability for enhancing sustainable development in developing countries. The study predicates how construction tender price variability accentuates sustainable construction practices. The study identified respondents through purposive sampling for better insights and a more thorough investigation of the construction tender-price phenomena. The adopted method presented the study with information-rich participants and cases regarding issues of central significance to the inquiry. In addition, the study utilized snowball sampling in which existing respondents recruited or referred other respondents from among their professional acquaintances. The study findings 13 factors requiring immediate consideration to address construction tender price variability and inflation. These include material costs; interest rates; equipment costs; labor costs; delayed payments; exchange rates; and the nature and type of project. The results categorize four specific areas significantly affected by high construction tender prices. The harmful impacts were immediate and more severe to stakeholders like the government (client). The effect on projects is equally devastating; however, contractors appear to experience more positive-impact though in the short term. The long-term effects of high construction tender-price variability inflation were detrimental to all stakeholders by observation. Thus, the article recommends strategies that address tender price sustainability challenges faced in the construction sector.
Keywords: Economic Sustainability, developing countries, tender-price, the construction sector