Investigating project issue factors as causes of construction contract terminations: the case of Ghana

  • Authors

    • Charles .E Coleman The University of Zambia
    • Erastus M. Mwanaumo Department of Civil and Environmental Engineering, The University of Zambia
    • Mundia Muya Department of Civil and Environmental Engineering, The University of Zambia
    • Rahimi. A. Rahman Faculty of Civil Engineering and Technology, Universiti Malaysia Pahang, Al-Sultan Abdullah, Kuantan, Malaysia
    2025-01-30
    https://doi.org/10.14419/rx1ve555
  • Construction Contract Terminations; Ghana’s Construction Industry; Project Issues; SEM; AMOS
  • Abstract

    This study aims to investigate and analyse the project issue factors (PIF) contributing to construction contract terminations within Ghana's construction industry. By identifying and understanding these key factors, the study seeks to provide valuable insights for stakeholders to improve project success rates, minimise disruptions, and foster sustainable growth in the sector. The research adopted a quantitative research approach, utilising techniques such as exploratory factor analysis (EFA) and structural equation modelling (SEM) to analyse data collected from 315 construction industry professionals in Ghana. A combination of purposive and random sampling techniques was employed to ensure a diverse and representative sample, considering participants' qualifications, experience, specialisations, and employment sectors. The study's findings revealed significant project issue factors (PIF) that contribute to construction contract terminations in Ghana. Top-ranking factors include contractor refusal to work with engineer instructions, construction time delays, failure to remedy defective works, and unsuitable materials on structures. The study underscores the importance of addressing these factors through enhanced communication, robust project management practices, quality control measures, and continuous professional development. The study’s methodology and comprehensive analysis add value to the literature as it contributes to the existing body of knowledge by focusing specifically on the Ghana’s construction industry and providing empirical insights into the factors driving construction contract terminations. The recommendations have practical implications for industry stakeholders, policymakers, and professionals, guiding them in implementing strategies to mitigate project issue factors (PIF) and improve overall project outcomes, thereby fostering a conducive environment for sustainable growth in Ghana’s construction industry.

  • References

    1. Raj, A., & Singh, M. (2019). Risk Management in Global Construction Projects: Case Study of Delays and Disputes. International Journal of Construction Management, 25(3), 215-226.
    2. Wang, X., & Dulaimi, M. F. (2021). The Impacts of Contractor Insolvency on Project Outcomes: Evidence from the UK Construction Industry. Journal of Project Management Research, 18(2), 87-101.
    3. Chan, D., & Kumaraswamy, M. (2020). Global Trends in Construction Contract Terminations: A Meta-Analysis of Contributing Factors. Construction Management Review, 12(1), 33-45.
    4. Smith, J. (2018). Contract Disputes and Terminations in the US Construction Sector: Causes and Impacts. Journal of Construction Engineering and Management, 140(12), 22-31.
    5. Musonda, I., & Okoro, O. (2019). Contract Termination in Nigerian Construction Projects: A Case Study Analysis. Journal of African Construction Management, 7(4), 56-72.
    6. Wambui, N. & Mwangi, K. (2021). Challenges in Managing Large-Scale Construction Projects in Kenya: Insights from Contract Terminations. Journal of East African Construction Research, 9(2), 99-117.
    7. Ndlovu, J. & Makinde, O. (2017). Examining Contract Terminations in South Africa’s Infrastructure Projects. South African Journal of Project Management, 15(3), 45-63.
    8. Agyekum, K., & Asamoah, P. (2020). Causes of Contract Terminations in Ghana's Construction Industry: A Case Study of Public Projects. Ghana Journal of Infrastructure Development, 4(1), 77-90.
    9. Mensah, J. K. (2021). Impact of Project Management Failures on Contract Terminations in Ghana’s Road Construction Sector. Journal of Construction and Management Studies in Ghana, 6(2), 33-49.
    10. Ofori, G. (2019). Contractor Performance and Project Success: Insights from Ghana’s Construction Industry. Construction in Emerging Markets, 2(1), 11-21.
    11. Asante, A. & Tutu, D. (2021). Analysing the Effects of Material Price Escalations on Construction Projects in Ghana. Ghana Journal of Construction Economics, 7(2), 98-115.
    12. Arhin, D. (2022). Cultural Influences in Project Teams: A Case Study of the Ghanaian Construction Industry. West African Construction Review, 5(1), 101-122.
    13. Nyabor, R. (2021). 27 E-blocks Contracts Terminated-Education Ministry.https://citinewsroom.com/2021/10/27e-block-contracts-terminated-education-ministry [Accessed: 23/10/24].
    14. Simmons, B., & Hamer, S. (2020). Construction Contract Terminations: Insights from Australian and UK Markets. International Journal of Construction Law, 18(1), 15-29.
    15. Francis, T., & Nartey, E. (2021). Construction Contract Disputes and Their Impacts on Project Outcomes in Ghana. Journal of West African Infrastructure Studies, 9(3), 45-61.
    16. Krejcie, R. V., & Morgan, D. W. (1970). Determining Sample Size for Research Activities. Educational and Psychological Measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308.
    17. Smith, N. J., Merna, T., & Jobling, P. (2014). Managing risk in construction projects. John Wiley & Sons.
    18. Kikwasi, G. (2012). Causes and effects of delays and disruptions in construction projects in Tanzania. In Australasian Journal of Construction Economics & Building-Conference Series,1(2),52-59 https://doi.org/10.5130/ajceb-cs.v1i2.3166.
    19. Rosenau, M. D., & Githens, G. D. (2011). Successful project management: a step-by-step approach with practical examples. John Wiley & Sons.
    20. Secchi, C., & Belladonna, A. (2020). Infrastructure in a changing world: trends and challenges. Political Science, Ledizioni.
    21. Kley, H. M. A. (2021). Studying the use of termination as project cost control techniques in the construction industry, (MSc Thesis), KNUST.
    22. Amponsah, R. (2012). The real project failure factors and the effect of culture on project management in Ghana. IDRC.
    23. Kumi-Yeboah, A., & Smith, P. (2017). Cross-cultural educational experiences and academic achievement of Ghanaian immigrant youth in urban public schools. Education and Urban Society, 49(4), 434-455. https://doi.org/10.1177/0013124516643764.
    24. Leedy, D. P. and Ormrod, E. J. (2010). Practical research: Planning and designing (9th edn.). Upper Saddle River, New Jersey: Pearson Education.
    25. Clark, T., Foster, L., Bryman, A., & Sloan, L. (2021). Bryman's social research methods. Oxford Uni. Press.
    26. Field, A. P. (2005). Is the meta-analysis of correlation coefficients accurate when population correlations vary? Psychological methods, 10(4), 444-467. https://doi.org/10.1037/1082-989X.10.4.444.
    27. Hair, J. F., Anderson, R. E., Tatham, R. L., & Black, W. C. (1998). Multivariate Data Analysis: With Readings, 4th edn Prentice Hall. Englewood Cliffs, New Jersey.
    28. Hajjar, S. T. (2018). Statistical analysis: Internal-consistency reliability and construct validity. International Journal of Quantitative and Qualitative Research Methods, 6(1), 27-38.
    29. Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS SEM. European business review. https://doi.org/10.1108/EBR-11-2018-0203.
    30. Moshagen, M. (2012). The model size effect in SEM: Inflated goodness-of-fit statistics are due to the size of the covariance matrix. Structural Equation Modeling: A Multidisciplinary Journal, 19(1), 86-98. https://doi.org/10.1080/10705511.2012.634724.
    31. MacCallum, R., Austin, J. (2000). Applications of Structural equation modelling in psychological research, in Annual Review: Psychology, Vol 51, pp 201-226. https://doi.org/10.1146/annurev.psych.51.1.201.
    32. Byrne, B. M. (2013). Structural equation modeling with Mplus: Basic concepts, applications, and programming. Routledge. https://doi.org/10.4324/9780203807644.
    33. Shek, D. T., Yu, L. (2014). Confirmatory factor analysis using AMOS: A demonstration. International Journal on Disability and Human Development, 13(2), 191-204. https://doi.org/10.1515/ijdhd-2014-0305.
    34. Mustafa, M. B., Nordin, M. B., & Razzaq, A. B. A. (2020). Structural equation modelling using AMOS: Confirmatory factor analysis for taskload of special education integration program teachers. Univ. Jnl. Educ. Res, 8(1), 127-33. https://doi.org/10.13189/ujer.2020.080115
  • Downloads

  • How to Cite

    Coleman, C. .E, M. Mwanaumo , E. ., Muya, M. ., & A. Rahman, R. . (2025). Investigating project issue factors as causes of construction contract terminations: the case of Ghana. International Journal of Engineering & Technology, 14(1), 7-13. https://doi.org/10.14419/rx1ve555