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Abstract
The construction industries in developing countries have been shown to be operating inefficiently and are unable to meet the pace of construction needs of these countries. The low level of involvement and the poor performance of the indigenous contractors are the major cause of these problems.
However, the decision to participate in construction projects, rests on the individual contractor's ability to compete successfully in a competitive market. The choice of project to compete for, should be supported by the contractor's competitive strengths/capabilities which can be deployed to gain advantage over the main competitors.
The problems being investigated are concerned with indigenous contractor's performance in construction projects which is considered to be necessary for their survival and thus increases their participation. It is noted over the past years, that the gradual development of construction industries in developing countries, and in particular in Kenya, has increased the demands for value for money thus offering clients a wider choice to select the right contractors for their projects. This has encouraged fierce competition among indigenous contractors which has increased due to the presence of international contractors.
To examine these problems, empirical studies were undertaken to assess indigenous contractors' performance and to examine their success in a construction project. A chi-square test was performed to examine indigenous contractors' performance. For a complete assessment it was necessary to test indigenous contractors' success in projects to identify the problems of the industry so that solutions can be offered. The analysis undertaken provided an insight to the problems facing the indigenous contractors in the construction industry in Kenya.
To resolve these problems strategies are formulated which address the short and long term problems of the industry. For the short-term solution, a framework for improving the performance of the indigenous contractors, is suggested. However, such an approach needs the commitment of the contractors and of those who are participating towards the improvement of the indigenous contractors. For the long-term solution, an Agency is considered to be suitable to offer improvement to the indigenous contractors and development of the industry as a whole. The success of the Agency in delivering the required improvements depends on the close monitoring and control of all the activities so that any deviation would be corrected immediately.