Factors Impacting Operational Performance of Small and Emerging Black Contractors in Gauteng, South Africa

This study examined the factors influencing the operational performance of small and emerging contractors in construction projects in Gauteng, South Africa. The study took a qualitative approach, conducting eight semi-structured interviews with selected respondents, and using judgemental random sampling from two large and three small emerging construction companies. The study results revealed that the factors affecting the performance of emerging contractors are project planning, skilled human resources, funding, ability to innovate, quality products and services, pricing, management, and health and safety plans. Successful operational performance is attained by project planning, competent and skilled staff, risk management and retention of skilled staff.Factors that lead to failure to perform during a construction project are insufficient funding, reliance on unreliable suppliers and subcontractors, lack of project management skills, lack of skilled personnel and lack of knowledge of legislation. The impact of these factors varies, depending on the organisation's size. Small contractors are severely affected by a lack of funding, skilled personnel, project knowledge, and legislative knowledge. The large emerging contractors have developed and are either no longer affected by all the factors or only affected to a certain level. It is recommended that emerging contractors ensure staff training and development, a learning organisation culture that innovates, staff retention initiatives, government training and funding initiatives