Management of problems faced by local contractors when working with foreign contractors in Sri Lanka

Abstract

Construction projects in Sri Lanka have increasingly involved collaborations between local and foreign contractors due to the rising demand for infrastructure development. While such collaborations can bring benefits, they can also give rise to various problems that hinder project success. Thus, this study was aimed at investigating how to manage the problems faced by local contractors working with foreign contractors in Sri Lanka. The research adopted a qualitative approach in achieving this aim, by using a literature review and two rounds of semi-structured interviews with industry experts. The data collected were analyzed using the manual content analysis method. The study identified 16 important problems faced by local contractors working with foreign contractors, namely communication issues, failure to manage the quality, conditions of the contract or contractual relationship between the parties, non-competent subcontractors or suppliers, differences in technical standards, cultural differences and cross cultural dimensions, comparatively smaller scale of Sri Lankan projects, lack of competent workers and technical staff, extensive use of foreign labour, lack of cost control procedures or the management of cash flow, attitude of staff, lack of good relationship among parties, failure to prepare and manage the schedule or the ability to achieve project milestones, economic and social condition of the host country, leadership issues and institutional differences. The research also investigated the cause for these problems and the strategies to overcome those problems. The research depicts that despite any negative impacts to the Sri Lankan contractors, it is an unchallenged fact that Sri Lanka needs to attract more foreign contractors and foreign funds to the country in order to continue its development process while achieving technological advancement and the balance of foreign reserves in parallel.