Factors Affecting the Performance of Small Indigenous Contractors in Papau New Guinea
Contractors’ performance, amongst other things, has been associated with the high cost
of public housing in Papua New Guinea. Given that small indigenous contractors
undertake construction of all public housing, this paper investigates the performance of
small indigenous contractors.
Eight likely factors that affect small indigenous contractors' performance are identified
from the literature. An empirical study is then described aimed at determining how
Page (iv) The Australian Journal of Construction Economics and Building
these factors affect project cost, time and quality. This comprised a survey conducted in
Port Moresby by personally administered questionnaires to a sample of small
indigenous contractors to assess the level of factors associated with the problem of lack
of performance. Additionally, the view of each firm concerning the effect of each factor
on performance was also obtained. The results show that, with the exception of culture,
all the factors are perceived to have an effect of construction performance. It is also
shown that the incidence of these factors, within the firms surveyed, are quite low. Of
particular concern is the level of cash flow.