Contract Awards Disparity among Multinational and Indigenous Construction Companies

Abstract

The key players in the construction industry are the construction companies. However, the level of contract awards among multinational and indigenous construction companies in most developing countries is poorly understood. This research aim at determining the level of contract awards among multinational and indigenous construction companies. The research employed a quantitative approach using both primary and secondary method of data collection to achieve the stated objective. Purposive sample techniques were used for collecting both the primary and secondary data. Structured questionnaires were administered to 70 construction professionals and contractors to determine the factors responsible for low indigenous contractor’s participation and award of contracts. Primary and secondary data were collected, and the findings reveal that 65% of the contract awards between 2002 and 2012 were won by the multinational construction companies. While the lack of requisite skill and technical know-how with a percentage severity index (SI) score of 97% was responsible for low indigenous construction companies awards. This result indicates that the multinational construction companies are dominating the construction industry.