Implementing of cost and profit management systems: a case of small, medium and large construction firms in Swaziland.

Abstract

The construction industry in Swaziland consists of small, medium and large construction firms both in building and civil construction works. The industry is guided by several management systems such as quality, health and safety, environmental, cost and profit management systems. The study focused on the implementation of cost and profit management systems, it sought to compare effectiveness of the use of these systems by large construction firms and challenges faced by small or medium contractors in adopting this system. Through this comparison the aim was to find ways in which small and medium contractors could be capacitated for them to be able to master the use of cost and profit management systems so as to track financial performance of the organization and execution of projects. The purpose of the study is to understand the extent to which construction companies employ cost and profit management systems to predict profitability. In previous research inadequate capacity, lack of financial capital, poor management systems have been identified as contributors to the failure of these companies thus this study will collate these contributors, analysing the cost and profit management systems between the small, medium and large construction firms. The interpretivist paradigm and inductive research was conducted in a case study methodology which was qualitative research design in nature as it needed to investigate and understand in depth the reasons for failure to implement cost and profit management systems by small and medium contractors. The research was conducted using semi- structured interviews with nine construction firms in the different categories from the Mbabane- Manzini corridor selected by purposive sampling. These were selected because they had projects at the time of the study. Data was analysed by thematic analysis. The findings were that the firms scarcely used cost and profit management systems and it they used them they were not fed properly with information because of the lack of expertise among staff. It is recommended that employers and employees are given training to understand the intricacies of the industry and the implications are that firms need capacity building.