State sector middle-income housing projects in Sri Lanka : Satisfaction of the key stakeholders

Abstract

UN-Habitat (2020) has predicted that the rate of urbanisation will increase from 56.2% in 2020 to 60.4% by 2030. Hence, there will be a significant influx of individuals from rural areas into metropolitan cities which will create a high demand for urban housing. In this context, governments must play a substantial role in addressing housing issues. However, there is lack of a study that identified the key stakeholders in state-sector middle-income housing projects and their satisfaction in Sri Lanka. Hence, this research aimed to investigate key stakeholder satisfaction of state-sector middle-income housing projects in Sri Lanka. In order to achieve the aim, the study initially conducted a literature review followed by three case studies under the qualitative approach. Data were collected through semi-structured interviews; document review and observations and the collected data was analysed manually. Interviews were limited to three stakeholder categories, beneficiaries, developers and contractors. Research findings highlighted the importance of having state-sector driven middle-income housing projects to satisfy the needs of middle-income cluster in the economy. The study further identified that various stakeholders such as end-users/beneficiaries, developers and contractors who play vital roles in shaping needs of state-sector driven middle-income housing projects in Sri Lanka. However, they face challenges such as inadequate financial capacity, deficiencies in administration and legal processes, lack of innovative mechanisms, private parties prioritising profitability over affordability, increasing production costs, rising land values, and lack of technical competencies to build houses as effectively as the private sector, in these projects. Moreover, the factors affecting beneficiaries’ satisfaction include location, housing size, design and layout, materials quality, services available, cost of housing unit, project duration, socio-cultural considerations, sense of safety, and possibility of future extension of the housing unit. Developer’s satisfaction affected by availability and cost of land, infrastructure and utilities, market demand, consumer preferences, punctual payment, financial incentives, profitability, and support from government. According to contractors, factors such as, use of local resources, approval processes, legal support and dispute resolution mechanisms, access to resources and equipment, communication and collaboration, quality of materials and workmanship, profit, clarity in project specifications and scope and punctual payment impact their satisfaction. The strategies to improve satisfaction of beneficiaries include improve housing design to cater family needs, transfer of ownership on time, introduce transparent financing method, enhance construction quality, identify the real beneficiaries, establish a post-occupancy management, and ensure safety and security. Developers and contractors have mentioned similar strategies to improve their satisfaction including incorporate environmental sustainability practices, conduct post-project evaluation, have quality assurance mechanisms, develop transparent and fair contractual agreements, collaborative decision-making, communication and feedback process, encourage to use innovative construction technologies and equipment, propose a risk management strategies, introduce fair payment practices and develop a clear project brief. Hence, this study provides practical and actionable recommendations that can potentially enhance key stakeholder satisfaction and the overall efficacy and success of the state-sector middle-income housing projects in Sri Lanka