The relevance of ethical conduct in creating a competitive advantage for entry-level emerging contractors

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Date
2015
Authors
Buys, Fanie
Van Schalkwyk, Tanya
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Journal ISSN
Volume Title
Publisher
University of the Free State
Abstract
English: Small emerging contracting companies could possibly be flooding the construction industry, putting strain on the construction economy to stay afloat, support and sustain these participants. It is important for any organisation that deals with other individuals and organisations to understand the correct ethical codes of conduct in a business environment. To minimise unethical behaviour in the industry, new contractors need to both understand and apply the principles of ethical conduct in their business environments. This research is aimed at investigating whether ethical conduct among new entry-level emerging contractors can contribute to, and ensure their sustainable competitiveness in the South African construction industry. This research is also aimed at determining whether education and knowledge of entrepreneurship, business, project and construction management, in addition to building contracts, can contribute to new entry-level emerging contractors’ ethical conduct and sustainable competitiveness. The literature reviewed and the results of quantitative research among professional consultants in South Africa formed the basis of the study. Ethics is a sensitive topic within the construction industry; therefore, it is difficult to gather the data directly from contractors, as they are reluctant to participate for fear of revealing their identities and having this negatively influence their personal and business credentials. Unbiased respondents, who were not directly linked to emerging contractors and who were not afraid to give their objective opinions, were questioned and included architects, quantity surveyors, consulting engineers, project managers, construction mentors, and construction managers. The study revealed that ethics is an important factor in any business environment and that the correct application thereof can partially contribute to the sustainable competitiveness of new entry-level emerging contractors. This, in turn, should promote the long-term survival of a business. Furthermore, the knowledge of good management practices and building contracts can contribute to a successfully run business. However, the average new entry-level emerging contractor has insufficient experience and knowledge of the management of construction projects and of building contracts. The study should be valuable to construction-industry professionals, contractors and clients, as it provides them with research information on a problem area in the industry.
Afrikaans: Daar is tans baie nuwe intreevlak opkomende aannemers wat die konstruksienywerheid betree en moontlik druk plaas op ekonomiese vooruitgang om die volhoubaarheid van hierdie aannemers te verseker. Vir enige onderneming om eties op te tree teenoor ander persone en organisasies is dit noodsaaklik om etiese kodes te handhaaf. Om onetiese optredes te beperk, is dit daarom belangrik dat hierdie opkomende aannemers die belangrikheid van etiese kodes in die konstruksiebedryf verstaan en handhaaf. Hierdie navorsing is daarop gemik om vas te stel of etiese optredes deur nuwe intreevlak opkomende aannemers in die Suid-Afrikaanse boubedryf tot hul onderhoubare mededingendheid kan bydra en verseker. Die navorsing is ook daarop gemik om vas te stel of kennis en ondervinding/ervaring in entrepreneurskap, besigheid, projek- en konstruksiebestuur, asook boukontrakte kan bydra tot nuwe intreevlak opkomende aannemers se etiese optredes en onderhoubare mededingendheid. Die literatuur wat ondersoek is, asook die resultate van ‘n kwantitatiewe navorsing gemik op professionele konsultante in die boubedryf in Suid-Afrika, het die basis van die navorsing gevorm. Etiek is ‘n sensitiewe onderwerp in die boubedryf. Daar is gevind dat dit moeilik is om data direk van kontrakteurs af in te samel omdat hulle huiwerig is om deel te neem aan so ‘n gesprek, hoofsaaklik omdat hulle huiwerig is dat hul persoonlike inligting geopenbaar sal word, en dat dit hul besighede en persoonlike kredietwaardigheid negatief sal beïnvloed. Daarom is onbevooroordeelde respondente genader en onderhoude met hulle gehou omdat hulle geen direkte skakel met opkomende aannemers gehad het nie en omdat hulle bereid was om eerlike en objektiewe opinies te lewer. Hierdie onbevooroordeelde respondente het bestaan uit argitekte, bourekenaars, siviele ingenieurs, konstruksie-mentors, asook konstruksie- en projekbestuurders. Die studie het bewys dat etiek ‘n belangrike faktor in enige besigheidsomgewing is en dat die korrekte toepassing daarvan gedeeltelik kan bydra tot die onderhoubare mededingendheid van nuwe intreevlak opkomende aannemers, en gevolglik ook tot die langtermyn oorlewing van so ‘n besigheid. Daar is ook bevind dat kennis van goeie en korrekte bestuursbeginsels, asook boukontrakte, kan bydra tot ‘n suksesvolle bestuurde besigheid. Daar is egter ook bevind dat die gemiddelde nuwe intreevlak opkomende aannemer nie genoegsame kennis en ondervinding het van die bestuur van konstruksieprojekte, en van boukontrakte nie. Die studie behoort van belang te wees vir professionele persone wat deel vorm van die konstruksiebedryf, asook vir aannemers en kliënte in die bedryf omdat dit inligting in verband met navorsing van ‘n probleemarea in die industrie bied.
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Keywords
Ethics, Building contracts, Construction, Sustainable competitiveness, Business management, Project management
Citation
Buys, F., & Van Schalkwyk, T. (2015). The relevance of ethical conduct in creating a competitive advantage for entry-level emerging contractors. Acta Structilia, 22(2), 81-109.