SWOT analysis for large scale contractors of Sri Lanka

Abstract

According to the Central Bank statistics of Sri Lanka, construction industry contributes around 10% of the GDP. Moreover, the construction industry output directly relies on the construction contractors’ performance out of which most of the contractors are local. Therefore, local construction contractors are the top most significant characters in the industry. Thus, enhancing the performance of local contractors assist the development of national economy. Hence, the aim of the research study is to identify significant facts about the status of large-scale local contractors. At the outset, a comprehensive literature review was undertaken to identify the strengths, weaknesses, opportunities and threats of contractors. With the expert interviews, factors related to local contractors were identified. Then a questionnaire survey was carried out to rank the factors in order to identify the most significant factors. As per the findings Sri Lankan construction industry is furnished with many significant strengths and weaknesses. However, external factors such as labor scarcity, frequently changing government policies, skilled labor migration and prequalification criteria in major projects are the threats that affect the local contractors. Few opportunities are available for local contractors such as gain experience on megaprojects, technology transfer and improved management and coordination capability.