An-Najah National University Faculty of Graduate Studies Identification of Challenges Facing Public Construction Industry in Palestine Framework to deal with them By Hanan Ahmad Taha Supervisor Dr. Abd Al Fattah Shamleh This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Engineering Management, Faculty of Graduate Studies, An-Najah National University, Nablus-Palestine. 2016 iii Dedication To all those who were always supported me in times of fun and frustration, to all who raise my spirits in times of despair to accomplish my work successfully To the spirit of my father who had always surrounded me, reminded me of the lasting support and hopes that we wanted, and talk about the future, you were compassionate Father, I did not forget you and I will not do, you're spectrum who lived with my support, protect, and keeps me confident that I would become what we always strive for. My affectionate mother, I am honoured to have you as my mother. Thank you for your prayers and blessing, for giving me a chance to prove and improve myself through all my walks of life. To the most precious in my life……….. My dearly beloved brothers and sister To those who were closest to my heart……….. My beloved friends To everything beautiful in this generous country Everyone who helped and supported me. iv ACKNOWLEDGEMENT First, I extend my sincere thanks and gratitude to God, who gave me the strength to complete this work, despite all difficulties. I extend my sincere thanks and great gratitude and appreciation to my supervisor Dr. Abd Al Fattah Shamleh who made every effort to accomplish this work, provided advice, guidance, and provide me of his support and experience. Many thanks for my dear colleague, Eng. Ahmed Rashed for his permanent help and assistance. In addition, I would like to extend my thanks and appreciation to my instructors in the Engineering management program at An-Najah National University for their support and devotion. Sincere gratitude to all institutes, organizations and engineers for their help in collecting the research-required data. Finally, thanks and regards to all those who supported me in any respect during the completion of this work. vi Table of Contents No. Contents page Dedication iii Acknowledgement iv Declaration v List of Figures viii List of Tables ix List of Abbreviations xi Abstract xiii Chapter 1 Introduction 1 1.1 Overview 1 1.2 Problem of the study 4 1.3 Question of the study 5 1.4 Objective of the study 6 1.5 Significance of the Study 6 1.6 Methodology 7 1.7 Research limitations 9 1.8 Research Expected Outcomes 11 1.9 Thesis Structure 11 Chapter 2 Literature Review 13 2.1 Preamble 13 2.2 The construction, and the construction industry (CI) 14 2.3 Construction sector in Palestine 17 2.4 Palestinian Public Construction Sector in Palestine 22 2.5 Key challenges facing (PCI) in Palestine 24 2.5.1 Social Culture 25 2.5.2 Socio-Political Pressures 28 2.5.3 The Environment 29 2.5.4 Work Force challenges 30 2.5.5 Helath and public safety 32 2.5.6 Legal Issues 34 2.5.7 Government Regulation 36 2.5.8 Performance 37 2.6 Summary 42 Chapter 3 Research Methodology 43 3.1 Introduction 43 3.2 Research Methodology Diagram 43 3.3 The Research Approach 45 3.4 The Sample Size 47 3.4.1 Project owners -Governmental Organization (GO) 48 3.4.2 Construction Projects (C.P) representative 48 vii 3.4.3 Contractors companies 49 3.5 Designing the Questionnaires 51 3.6 Interviews 52 3.7 Sampling, Instrumentation and Procedure 52 3.8 Instrumentation 55 3.9 Validity of the Questionnaire 56 3.10 Reliability of the Questionnaire 56 3.11 Data Analysis 57 Chapter 4 Result and Data Analysis 58 4.1 Introduction 58 4.2 Results and Discussion 58 Chapter 5 The Framework 89 5.1 Introduction 89 5.2 Framework Development Requirements 90 5.3 The Stages of the Framework 91 5.3.1 Stakeholders 92 5.3.2 Challenges and proposed solution 93 5.3.2.1 Culture 94 5.3.2.2 The Environment 96 5.3.2.3 Work Force Considerations 97 5.3.2.4 Health and public safety 98 5.3.2.5 Legal Issues, Socio-Political Pressures, and governmental Regulation 100 5.3.2.6 Technical Performance 101 5.3.3 Stage3: the core of the framework 103 5.4 Conclusion 105 Chapter 6 Conclusions and Recommendation 107 6.1 Introduction 107 6.2 Conclusions of the Research 107 6.3 The Research Contribution 109 6.4 Result and Recommendations 113 Refrains 117 ب الملخص viii LIST OF FIGURES No. Figures Page 2.1 Construction Sector Contribution to GDP in 2000- 2012 21 2.1 Construction Sector employment in Palestine in 2000-2012 31 3.1 The Methodology Flowchart 44 3.2 The Percentage of the Classified Targeted Contracting Firms in Palestine. 50 3.3 Executed projects Percentage according to the classification degree for the registered classified contracting companies in West Bank 50 3.4 Classified contractors percentages with respect to the location in the West Bank 51 5.1 Framework for implementing PCI projects in West Bank 91 ix LIST OF TABLES No. Tables Page 2.1 Economic main Sector Contribution to GDP 1950's - 2007 20 3.1 Distribution of Sample According to Study Independent Variables 53 3.2 Distribution of Sample According to General Information about the company 54 4.1 Means, Standard Deviations and estimated level of the extent the conflicts happening between the project stakeholders within the public construction project(PCP) 59 4.2 Means, Standard Deviations and estimated level of the most disagreements happening during execution because of 60 4.3 Means, Standard Deviations and estimated level of the reason of contractual disagreements 61 4.4 Means, Standard Deviations and estimated level of factors related to culture 62 4.5 Means, Standard Deviations and estimated level of factors related to political considerations 63 4.6 Means, Standard Deviations and estimated level of factors related to environmental considerations 64 4.7 Means, Standard Deviations and estimated level of factors related to work force considerations 65 4.8 Means, Standard Deviations and estimated level of factors related health and safety 66 4.9 Means, Standard Deviations and estimated level of factors related to legal issues 67 4.10 Means, Standard Deviations and estimated level of factors related to quality 68 4.11 Means, Standard Deviations and estimated level of factors related to cost 69 4.12 Means, Standard Deviations and estimated level of factors related to time 70 4.13 Means, Standard Deviations and estimated level of the factors and the total degree 71 4.14 Means, Standard Deviations and estimated level of dealing with challenges 72 4.15 Frequency, and Percent most precaution to avoid challenges that faces the C.P 73 x 4.16 T-test for Independent Samples of the challenges facing PCI in Palestine due to gender 74 4.17 Frequencies, Means and Standards Deviations of challenges facing PCI in Palestine due to age 74 4.18 Results of One Way ANOVA of the challenges facing PCI in Palestine due to age 75 4.19 Frequencies, Means and Standards Deviations of challenges facing PCI in Palestine due to qualification 75 4.20 Results of One Way ANOVA of the challenges facing PCI in Palestine due to qualification 76 4.21 Frequencies, Means and Standards Deviations of challenges facing PCI in Palestine due to position 76 4.22 Results of One Way ANOVA of the challenges facing PCI in Palestine due to position 77 4.23 Frequencies, Means and Standards Deviations of challenges facing PCI in Palestine due to experience 77 4.24 Results of One Way ANOVA of the challenges facing PCI in Palestine due to experience 78 4.25 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to project location 78 4.26 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to project location 79 4.27 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to work type 79 4.28 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to work type 80 4.29 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to firm classification 80 4.30 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to firm classification 81 4.31 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to the number of accomplished projects 81 4.32 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to the number of accomplished projects 81 xi 4.33 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to main- sector of projects 82 4.34 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to main-sector of projects 82 4.35 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to the projects that your organization prefer 83 4.36 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to the projects that your organization prefer 83 4.37 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to the types of construction contracts 84 4.38 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to the types of construction contracts 84 4.39 Frequencies, Means and Standards Deviations of Challenges Facing PCI in Palestine due to the disagreements 85 4.40 Pearson correlation Matrix to show the relationships between the challenges of challenges facing PCI in Palestine 85 4.41 Results of One Way ANOVA of the Challenges Facing PCI in Palestine due to the disagreements 86 xii LIST OF ABBREVIATIONS PCI Public Construction Industry CI Construction Industry CS Construction Sector PCP Public Construction Projects GDP Gross Domestic Product PCBS Palestinian Central Bureau of Statistics PCU Palestinian Contractors Union SPSS Statistical Package for Social Science W.B West Bank C.P Construction Projects C.O Construction Organization NGOs Non-Government Organizations PMI Project Management Institute PMBOK A guide to the Project Management Body of Knowledge S.D Standard deviation Sig. Significance PNA Palestinian National Authority ILO International Labor Organization PPE Personal perspective equipment . PFI Palestinian Federation of Industries GO Governmental organizations xiii Identification of Challenges Facing Public Construction Industry in Palestine Framework to deal with them By Hanan Ahmad Taha Supervisor Dr. Abd Al Fattah Shamleh Abstract The nature of public construction projects (PCP) in Palestine has a special situation, according to its political and topographical and stakeholder's complexity in their demand for getting efficient projects that could be beneficial for the public users. Palestine suffers from many problems affecting the performance that could be in its main component; cost, time and quality. Since the development of this sector and its major contribution to the Gross Domestic Product (GDP) in Palestine, the importance of this study come through identifying the challenges facing these projects during their life cycle that required a high sense of management discernment, capabilities, skills and strategies to tackle and clarifying the ways to deal with. To achieve its objective the mixed research method was adapted in this research. Where the designed questionnaire was distributed to the construction practitioners (stakeholders and professionals) within West Bank as a sample study to represent Palestine zone, and will focus on public types and through several governmental organizations. Besides that, the researcher has conducted some interviews with the key stakeholders of construction industry. 350 questionnaires were distributed to get an obvious picture about these challenges. The major challenges related to health and safety, time, and quality that faces Public Construction industry (PCI) in xiv Palestine were discussed in this research. A theoretical framework is developedto get a deeper level of understanding about implementing best management practice, by minimizing the problems with using the maximum resources and opportunities to make construction management more efficient and responsive in PCP in West Bank. The recommendations introduce some solution for practitioners by acquiring the right skills and apply appropriate management strategies in managing construction projects. 1 CHAPTER 1 INTRODUCTION 1.1 Overview Public Construction Industry (PCI) is the backbone of the economic activity in human life. It contains projects for living, other for human transactions and industrial uses (Abukar, 2011). As such, it relates to and serves all aspects of human activity. It is an inevitable infrastructure for keeping life safe and progressing. Consequently, it is necessary to pay efforts to ensure that constructions are initiated on scientific bases. That is the role of construction management. The human factor is thus the determining one. Engineers are graduated to handle such issues while construction companies handle other factors related to the implementation, whereas the government takes care of the legal component. Since many parties are involved in the process complications and difficulties are ultimate. They may emerge from technical, out of legal, economic, political, organizational, etc. Even though the various parties, the management is there to cope with those difficulties, but it will consume a lot of time, resources and confusions that is if it could be controlled. Sudden unexpected changes in construction technology, techniques, materials, or human resources can create many reasons for the failure of those projects (Kim et al, 2012). The impact of such situation results in much of delay leaving the public suffering and un-served in a conflicting situation. The typical 2 response to such situation is to reduce, suppress, or eliminate those conflicts. The project manager is responsible for the precise role of clarifying and freeing the project of any of those irregularities (Olalekan, 2013). Even though it works sometimes, but generally it is not always effective; since the root causes cannot be easily identified, and the potentially positive aspects of conflict cannot be emerged (Verma, 1998). So, complaints should be attended and fault causes should be identified to enable managing and facing these complications efficiently (Kari et al, 2008). Construction is described as a key sector and one of the milestones of the economy. The quality of construction is thus one of the major factors that influence the quality of services offered to the public. Consequently, measures should be taken to maintain the quality of constructions as best as possible. Engineering and other parties in construction, form unique combination of a specific need. Process design yields engineering works to achieve the desired outcomes. The construction profession offers the opportunity to create works for the benefit of humankind, but in turn those who work in this profession bear substantial responsibilities (Osaily, 2010). As in other countries, the construction industry (CI) is one of the key economic sectors and the main force motivating the Palestinian national economy. In 1994, the construction sector (CS) has witnessed a remarkable expansion. It resulted in the recovery of the CI and subsidiary industries. The CS has occupied the foremost position among the rest of other sectors, attracting investments and creating new jobs (Osaily, 2010). It contributed 3 33% of the Palestinian Gross Domestic Product (GDP), it employs about 10.8% of laborer directly, and 30% indirectly in factories related to the CS. This positively affected various economic, social, educational and vocational sectors in addition to other public Palestinian institutions (PCU, 2003). Since the Government is responsible for organizing the CI, it puts standards describing the features of public constructions (schools, hospitals, roads, bridges and irrigation systems; and water and power infrastructure), (Ofori, 2012). So construction specifications are major requirements for an effective handling of the various serves offered to the public. The CI is one of the most dynamic, risky, and challenging businesses. It has a very poor reputation, with many major projects failing to meet deadlines and construction targets (Anthony Mills, 2001) that necessities they need to conduct substantial studies in the field. Yong and Mustafa (2012) found that many of factors affect the construction project success; their relative importance is perceived by different respondents. They listed 37 factors and put them in 7 major categories. Those included clients, consultants and contractors represent a wide range of professions., including those which are involved in design, construction, engineering, project management and quantity surveying. That helped in identifying 15 core element factors considered as critical factors to the success of construction projects (C.P). That suggests a strong 4 consistency in perception between respondents in recognizing the significance of human-related factors such as competence, commitment, communication and cooperation towards the success of a construction project. 1.2 Problem of the study The growing interest in the construction issue through last years in Palestine , specifically for buildings that serve the general public; whether through the projects implementation that related to infrastructure or through educational, health, security buildings , etc. And the conviction that the CS constitutes a point pedestal in Palestine, attention must be paid to support the national economy , and that's where previous studies are few in this field, the Palestinian library must be supported by studies support the exist and subtract suggestions for new, to help in the development of the management process, especially when this projects faced with real difficulties, both during the process of preparing and arranging for these projects; from studies of the needs, working in the designs and preparation of tender documents, and then through the next step during the process of awarding tenders and start implementing, and what is faced by funded ,designed and implemented crews of challenges and difficulties, which part of them could be familiar ,clear, and the other are new. And the reason for that is related to the economical and political special situation that Palestine suffers from. 5 This situation necessitates the need to study the issue scientifically, with an aim to pinpoint and understand those challenges for enabling a successful projection to make construction management more efficient and responsive. In Palestine, it is observed that a lot of complaints and conflicts emerge throughout the process of construction management (PCU 2012). Through previous studies, it appears that challenges may emerge from many parties’ human, materialist, and other environment and legal issues. Those are not reviewed as an independent from each other those are complicated and integrated. As such, to understand them, they should be reviewed as a unit. And attention should be given to those challenges as a unit. The review of those experiences widens the perception of academicians and researchers, enabling them to customize solutions that match the Palestinian specialty. 1.3 Question of the study This study intends to answer the following questions: Q1. What are the sociological, political, natural environment, legal, technical, human, health and safety, organizational, and performance challenges facing the PCI in Palestine? Q2. What are the effects of those challenges on PCI in Palestine? Q3. How those challenges are dealt with? Q4. Is there any significant statistical differences refer to variables such as age, gender, specialization, location, years of experience…etc., in perceiving those challenges? 6 Q5. How it is possible to cope with those challenges to ensure an efficient and effective PCI, in other words what are the recommendations should be considered to cope with those challenges? 1.4 Objective of the study The main objective of this study is to pinpoint the challenges, facing PCI in Palestine; this will contain the minor objectives as follows: 1. To identify the various sociological, political, technical, legal, organizational, and other environmental challenges facing the PCI. 2. To explore how those challenges influence the PCI. 3. To develop a theoretical project management framework to facilitate the implementation of management through the C.P in West Bank that helps in evolving better policies, strategies and rational decisions. 1.5 Significance of the Study The importance of the study is symbolized in the importance of the PCI itself. Little research has been written about the current situation of the PCI in Palestine. The clarification of obstacles faced by PCI would necessarily help in and face them and make construction of more value with minimum cost and maximized benefit. The presence of barriers will not only influence the efficiency of the construction project itself, but will also defuse construction efforts and waste many resources if not tackled with probably. 7 This study is also important for the public since the consequences of implementing its recommendations will result the best output in terms of public construction industry in Palestine incubating the services that they will get. This study is also essential for policy maker to guide their decisions and the direction of the work to ensure that all parties are satisfied. Theoretically, this study will enrich the Palestinian library with a new dimension for discovering and tackling with barriers faced by PCI. The significance of this study would help in a better relationship with the concerned stakeholders in the PCI, it will also enhance the public awareness of issues facing engineers and other parties in this industry within the aim of promoting leadership role, (Azhar,2014). The findings of this study enable a better understanding in one hand while it enables controlling in the other. The recommendations of this study are expected to promote the status of the PCI and enable taking necessary precaution measures for avoiding unnecessary risks. 1.6 Methodology 1.6.1 Research Methodology: This study adopt a mixed methodology, since it intends to describe the current situation, which relates the challenges facing the CI throughout using data collection tools relevant to the area of this study. This results in describing the current practices and its relevant areas of concern as an approach to identify a framework that help in evolving better policies, 8 strategies and rational decisions that can be implemented in such construction project management. 1.6.2 Data Collection Tools This study adopted a battery of data collection tools to ensure that all types of data required are collected. The most prominent tools are the questionnaire, which specially designed for the benefit of the study, while building questionnaire the researcher will benefit from the previous studies, theoretical publications, the adopted models and expert points of views. Before distributing the questionnaire, it was validated and examined in compliance to scientific research methodology. It was distributed to all stakeholders of CI Mainly to: engineers, employees, project managers, consultants, contractors, and other stakeholders. Interviews also are conducted with effective stakeholders. The interview will help in crystallizing the questionnaire and enhance the perception of challenges facing the PCI in the Palestinian context. It will also help in analyzing the results of the study as an outcome of the questionnaire. Data collected using those methods is integrated and categorized to ensure the questions of the study are answered; it is worth mention that the questionnaire were formulated and distributed online, and that really helped in getting a quicker response easily and within a short period. 1.6.3 Data Analysis Statistical Package for the Social Sciences (SPSS) was used for analyzing the questionnaire response after being coded and entered into the 9 system. Statistical devices used is: means, percentages, standard deviation, correlations, and cronbakh α, t-test …..etc (the quantitative method). In addition, the qualitative data analyzed using all scientific justifications and logics in accordance with the well-established theories and practices. 1.6.4 Population of The Study: The population of the study is as follows: Organizational population: it covers most of PCPs in West Bank governorates, in the last five years. Human population: it covers all individuals and groups concerned with the public construction project that focus on engineers, and other staff whom are related to CI, contractors who implement the C.P, local authorities, and government agencies. 1.7 Research limitations Constraints and obstacles are natural and logical matters that faced the researcher through conduction of the research. The respondents indifferences are the most important obstacle while presents their views on such topics. Although the researcher firstly explained the aim of the research, by introducing the questionnaire with a briefly introduction, a large number of them showed a lack of cooperation and they delegated the answers to others, and few number of participants easily and quickly replied without a continuous reminding from the researcher. Despite submitting, a letter to facilitate the task by the name of An- Najah National University, and the stakeholders accept to participate and 10 showed interest in the subject of the research, they were provided with a questionnaire copy to answer it, within six weeks to take their time in understanding the questions and answering them. The researcher tried to phone them many times to remind them within the period of time to finish preparing questionnaires in order to be collected. Unfortunately, the responses were disappointing due to their answers that they can’t reply because they don’t have enough time, or they lost it, others will answer it soon, and others are not interested. The researcher sent the questionnaire times and times, phoned most respondents two, three and four times, and visited some of them more than once, every time they had a new argument, until the researcher succeeded at last to collect a suitable number of responses. The most important barrier was determining the number of the contractors and engineering offices because it is allowed for these companies to have several classifications in different specializations, so one company may be counted several times. The willingness of the respondents to reveal weaknesses in their respective organizations was uncertain due to cultural issues in which persons did not like to show their weakness even if the researcher kept reminding them that this is a research for academic purposes only. Due to work commitment, some respondents could not fully concentrated on during the interview sessions, this caused the intended in- depth interview could not be fully achieved. Most of them did not have 11 enough time to respond due to the work pressure, so the researcher had to keep reminding them to respond to the questionnaire to achieve a good percentage of responsiveness. 1.8 Research Expected Outcomes The expected outcomes of this thesis are:  Descriptive analysis that articulate the current status about the stakeholders' perception, managers and decision makers about the challenges, issues facing them in the C.P in West Bank.  A list of the barriers and obstacles on both sides the technical and cultural that impede the deployment of challenges concepts in the CI according to the stakeholders ' perspective.  The framework formulation according to the analyzed data to cope with those challenges and improving performance of PCI through its PCP.  The recommendation for the stakeholders and decision makers in the CI and encouraging them to adopt the best practice for achieving the desired outcomes. 1.9 Thesis Structure This thesis is organized as follows; Chapter Two presents a historical review of previous studies to identify the main challenges that facing the PCS as general. Chapter Three discusses the main methodologies used in previous studies and the methodology adopted in this research to achieve the required goals. Chapter Four shows analysis, description and discussion 12 of research results. Chapter Five illustrates the developed framework that could help voiding the aforementioned challenges. Finally, chapter six presents conclusions and future research directions for this thesis. 13 CHAPTER 2 LITERATURE REVIEW 2.1 Preamble Engineering and construction are a unique combination of a specific need and design in a process that yields engineering works. The construction profession offers the opportunity to create works for the benefit of mankind, but in turn those who work in this profession accept substantial responsibilities (Osaily, 2010). The CI is one of the largest industrial sectors in most of the countries in the world. Most of the practitioners and theoreticians consider it as the major gagger of the economic situation, (Elbeltagi, 2009), and as Adnan et al (2012a), and Shweiki (2013) said "CI plays an important role in the economic contribution for the country development”. CI in Palestine is one of the largest and the most important industrial sector. It became one of the major mobilizer of the economy mainly in terms of employment and income, and its contribution to the gross domestic product (GDP). The role of this industry clearly appears in improving and facilitating the quality of living in light of the above and the need for improving the construction sector in Palestine; developing a holistic approach is a strategically important goal in Palestine as well as in other countries. We need to think of the future, being aware of such issue is one way in which we can guarantee a future with savings in time, cost, and resources that we require to achieve the quality needed, by knowing the 14 contribution of performance, technical, scientific, legal, organizational and other projection that improve the performance and satisfy the needs. This chapter should include first and foremost: 2.2 The construction, and the construction industry (CI) Construction has many characteristics common to both manufacturing and service industries. Definitely, there are physical products in this sector as in other industries. But in other ways, construction is more like a service industry because it does not accumulate significant amounts of capital when compared with industries such as steel, transportation, petroleum, and mining (Rashed, 2014). On the other hand, the construction sector is one of the key economic sectors and the main force motivating the Palestinian national economy. In 1994, the construction sector has witnessed a noticeable expansion. This has resulted in the recovery of the construction contracting profession and subsidiary industries; the construction sector has occupied the foremost position among the rest of sectors, mainly attracting investments and creating new jobs Osaily (2010); Construction sector contributes 33% to the Palestinian (GDP) Osaily ( 2010). Employs about 10.8% of laborers directly, and 30% indirectly in factories related to the construction sector and other service and productive sectors. This is a large proportion covered by this sector, thus positively affecting various economic, social, educational and vocational sectors in addition to other Palestinian institutions (Palestinian contractors union (PCU), 2003). 15 Scanning the previous literature reveals that there is no one agreed upon definitions for construction management (CM), and CI, below is a review of the most prominent definitions: Jackson, (2010), defined “Construction management (CM) entails the planning, scheduling, evaluating, and controlling of construction tasks or activities to accomplish specific objectives by effectively allocating and utilizing appropriate labor, material, and time resources in a manner that minimizes costs and maximizes customer/owner satisfaction”. Other like Westernoff ,(1998). Said that CM is a loose term used to describe the process used to organize and direct men, materials, and equipment to accomplish the purpose of the designer. Whereas, (PM) is the coordination of time, equipment, money, tasks and people. CM is not just a single task or activity. It comprises several tasks and is usually delivered by the team. At the same time, an individual member of a CM team performing even one of its functions is said to be doing CM (Jackson, 2010). And so “The construction manager responsibility is taking a set of written plans and specifications and a raw piece of land and then coordinate all of the materials, manpower, and equipment necessary to guarantee the set price, schedule, and quality of the project—without any accidents or errors, regardless of weather conditions, interest rate fluctuations, acts of God, or any other unforeseen conditions” (Jackson, 2010). 16 CM is a part of CI and to understand the whole process Chan and Liu, (2007), defined “ (CI) is the large, complex and diverse wide range coverage of business interests and activities, united by their common usage and development of land”. The CI assumes a focal part in national welfare that incorporates the improvement of private lodging, public structures and industrial plants, furthermore the reclamation of infrastructure and other public facilities. The CI is a mixture of different fields and members that have been gathered together to structure a division of the economy (Hendrickson; 2008, Saqfelhait; 2012). And to achieve the outcomes from this sector it should finish a construction extend in time, by high quality, and within the right budget, nearby construction organizations need to enhance their authoritative and administration structure, expand social, economic, and environmental imperatives, and enhance the interrelationships between all individuals included in the project (Enshassi and Kaka, 1997) And this enhancing for the administration structure, and other as mentioned above are not constrained and limited to construction companies, yet it is additionally for all associations related with this division by governmental organizations and non-benefit associations that preserve the majority of the ventures in the range of study, where they have the experience to know the best practice in CI through overseeing activities regulated until getting the results and through observing, controlling through execution and assessing the execution to be capable enhance practice in the future . 17 Understanding these concepts and the responsibility of the experts working in this field could be help getting better awareness of the process of construction industry management (CIM). It is concluded that CM and CI is focused on the whole process of planning, scheduling, evaluating, and controlling of construction tasks and activities that achieve business interests. Due to the multi-stakeholders that involved in the construction sector there is an initiative for identifying the CI deported from the viewpoint of those who identify with it. For instance law makers focus on the legal issues in their definition, while practitioners focus on the technicalities and the administrators focus on procedures, roles and responsibilities, and all other focus on their field. It should be noted that this sector is very sophisticated that hold a numerous number of activities and procedures. 2.3 Construction sector in Palestine The strategic geographical location of Palestine and situation along with its topography, ecosystem diversity and climatic variations present a suitable environment for the occurrence of reptiles, additionally the importance of this region makes it vulnerable against assaults and endeavors to control it by numerous nations of the world, making it a politically unstable region. We will take West Bank as a sample study to represent Palestine zone and will focus on public types and through several governmental organizations dealing in this field. 18 According to Abdulhadi (1994), the CI contribution to the economic growth was limited from 1948 up to 1994. During that period a lot of changes have taken place. According to Abdulhadi who said that in 1950s - 1960s raise house were in blasted, and a large portion of the Palestinians were deported from their homes following the Zionist action of the occupation. That cost them allot for constructing new houses. However the construction of public projects, such as, schools, hospitals, new roads, water, et al.... and so forth was done by the central authorities or their agencies during that period, and projects were executed in Palestine. Each few years CI in Palestine confronted allot of changes due to discriminating circumstance that influences all segments, and for some reasons confronting the country, through 1967 to 1972, i.e. It was around then the first decade of Israeli occupation of the Palestinian territories, the construction sector witnessed an extreme decay contrasting with its growth during the sixties. This was related to two reasons, firstly a political instability degree and secondly the Israeli restrictive approaches wide range (Shaka'a et. al., 2001). After that high rate growth was attaining by the CI and job opportunities to the labor force was opened in the occupied territories in the CS but that situation weren't maintained for a while (Abdulhadi, 1994). Through 1985 and till 1991 the entire economic and social conditions were influenced by many external shocks and construction was one of these sectors. So Palestine confronted a slowdown in the economy, 19 high inflation rates, devaluation of the Jordanian Dinar (JD), the most noticeable factor affect the construction sector in this period is the Intifada (Abdulhadi, 1994). During that stage, Palestine was generally under two sorts of Israeli restrictions: physical and financial instructions that made CI had experienced a sharp decrease due to closure of large areas of land and prevention of expansion of villages, and preventing any transformed cash from outside Palestinian or funds from the abroad donor associations because of tight controls were imposed on them. Furthermore, to the tight control of the utilization of these funds in the West Bank and Gaza Strip (Abedmousa, 2008). In spite of these facts, it appears that the construction activity was less affected than the total economy; its average share of GDP during the period (1987-1991) was around (21-23%). ( Saqfelhait, 2012). As a result of the restriction and until 1994, After the peace accord "OSLO agreement", an emergency program was established to perform a plan to improve the infrastructure in Palestine and build as much as possible in short duration (Saqfelhait, 2012), housing was a real problem for the Palestinian Authority, which found that there were urgent needs for over 100,000 new houses (Enshassi, 1997a). By millions of US dollars had been contributed to the Palestinian National Authority (PNA) from the international community and Arabs. And by that the GDP was dramatically increased 25% in 1994. 20 This circumstance did not change until the second Intifada "uprising" began in the year 2000. Since the year 2000 as of not long ago, the Palestinian CI has experienced numerous issues, for the most part because of sharp reversals in the political setting. Moreover, its share of GDP was diminished to 9% in the year 2004 (World Bank, PCBS, 2004); (Enshassi et al, 2007). Table 2-1 which shows the distribution of GDP by the major sector of the Palestinian economy for selected years 1985's-2007.(PFI, 2009). Table 2-1: Economic main Sector Contribution to GDP 1950's – 2007 / Source: (PFI,2009). And during the years 2010, 2011 figures demonstrate a bit increment in the construction segment's commitment to GDP to reach (9.2%) at 2010, and additionally expanding in the first two quarters of 2011 to reach (9.9%) and (11.5%), respectively (MAS, PCBS, 2011).Figure (2.1) shows the distribution of GDP by the major construction sector of the Palestinian economy for selected years 2000 - 2012. (PPSII, 2013). 21 Figure (2.1): Construction Sector Contribution to GDP in 2000-2012 / source: (PCBS report, 2014). Recently, and precisely in the years 2013 and 2014, Observed change in the national income outcomes up and down, the figures demonstrate the construction sector’s contribution to GDP to achieve (10.75%) at 2013, and additionally diminishing at the first two quarters of 2014 to achieve (8.3%) and (7.9%) at the first and second quarters of 2014, respectively (PCBS report, 2014). The CS is one of Palestine's most essential industries, in spite of the fact that it is essentially affected by changes in the political environment. Other than private firms, three major nongovernmental associations assume necessary parts in this industry, to be specific the Palestinian Contractor's Union (PCU), the Engineers Association (EA) and the Palestinian Construction Industries Union (PCIU). Realizing the importance of the structural sector in Palestine and its impact on the national, and economic income in this country, and major importance in supporting and developing country in the construction public 22 sector. Therefore the development of the economy and national income, who is in turn affects all other sectors to build a better future, so it is important to identify the factors affecting the performance of this sector to be studied, analyzed and thus get the results that help finding practical solutions that contribute to the resolution of the problems facing the sector to avoid them in future plans and projects. 2.4 Palestinian Public Construction Sector in Palestine This study focuses on identifying the challenges facing public construction industry, for that it is necessary to review the types of the public construction facilities in Palestine, in which we can find out which Category should be targeted in the study. Generally, the constructed facilities can be classified into four major categories, each with its own characteristics. These classifications are: Residential Housing Construction, Institutional and Commercial Building Construction, Specialized Industrial Construction, and Infrastructure and Heavy Construction. Moreover, as this study focus on the public construction project that owned by the government. Hence, this market is highly competitive, with potentially high risks and additionally high remunerates. (Saqfelhait, 2012). This sector is a part of Institutional and commercial building construction that envelops an incredible diversity of project sorts and sizes, for example, schools and colleges, therapeutic and medical centers and clinics, 23 recreational facilities and sports stadiums, road construction, water and sewer, structures and establishments, and so on. The CS is specifically joined with governmental institutions; they may be the owner of a construction project, or they may control and manage the construction sector in accordance with the Law (Saqfelhait, 2012). As previously mentioned, the greater part of the C.P in Palestine have been completed by the private sector. As indicated by Abdulhadi (1994), the rate of the total construction completed by public sector during 1980-1987 was less than 1.5% in the West Bank and less than 3.2% in the Gaza Strip. However, after the peace accord (OSLO agreement), this rate has expanded due to the great funds from both the worldwide and Arab communities. Enshassi and Mayer (2004; PCU 2008) expresses that, public sector, which incorporates public project owners, in the same way as legislative, governmental institutions, and different firms working in the construction part has been with very few exceptions responsible for nonresidential purpose construction like hospitals, schools, government buildings and so forth. In this manner we should illustrate the challenges that faces the public construction sector in Palestine, and this what the researcher will deal in the next section. 24 2.5 Key challenges facing (PCI) in Palestine The CI all over confronts issues, difficulties and challenges on the world's countries general and in the developing countries for special, these impediments are available close by a general circumstance of financial anxiety, unending asset deficiencies, institutional weaknesses and a general powerlessness manage the key issues. PCI face assigns of challenges through the past years in Palestine. Due to some reasons that affect directly or indirectly this sector, and so through the submitted inquiry of this study that expects to give a response to try to introduce this sector in a better way: What are the technical, the human, the organization, the environment and others difficulties confronting and facing the PCI in Palestine? , and What is the impact of those challenges on PCI in Palestine?, How those challenges are dealt with?, and if there is any significant statistical differences refer to variables as age, gender, specialization, location, years of experience… etc., in perceiving those challenges?, and must also answer What are the measures should be taken to cope with those challenges?. The challenges that will be examined will be: culture; environment; work force considerations; legal issues; the socio-political Pressures; governmental regulation; and Performance and in Palestine. In this research all those challenges took into consideration to highlight the impact of them in the Palestinian's PCI, to find solutions dealing with them to get the best practice in managing projects with the 25 best result for the whole society by having best using the CM concepts, such as recourses and getting the best quality, performance and society and government satisfaction. 2.5.1 Social Culture The word ‘culture’ has many meanings, which have been changed over the past two generations. About presented 160 different definitions of culture. (Kwaniand and Ofori, 2001), found a simple definition that "culture involves what people think, what they do, and what they produce". Also found that culture as a set of values, beliefs, norms, attitudes and habits of a group of people, pointing out that a society’s beliefs and values have an impact on the way business is conducted in that society. (Kwaniand & Ofori, 2001). According to Emuze & James (2013), found several definitions of culture which consists of behaviors related to many issues such as language, religion, values, standards, and customs that are shared by a group of people and learned from birth. It is necessary to reconsider the arrangements and procedures of PCI's effort that's required in Palestine to reflect the personality and cultural values of individual developing countries in the practices and procedures of construction. The PCI exposure a masculine culture; where relationships are characterized by argument, conflicts and crises (tough environment). As a 26 result, employees (male and female) are found that they are subjected to a very hostile environment. Women who are attracted to this field are facing the PCI in the same barriers, as women in other sectors. In this male- dominated profession, there are added stereotypes regarding the nature of the profession and the professional themselves. Women who do not enter this field tend to fill specialized technical jobs rather than managerial working posts. This leads to the distinction between gender career opportunities that have an inevitable consequence of the high staff turnover rate for women in construction companies (Waziri & Khalfan, 2014). Dainty et al., (2000) found that younger women became disillusioned with their career choice more rapidly than men, and sought to leave the industry early on in their careers. Palestine culture is closed on itself that due to the occupation policy that make any exchange of new trends not easy, and why most of stakeholders involved in the CI feel not comfortable for any change in management if not refuse it. Change management and time management are both essential in improving the culture of the CI in Palestine. Since the Palestinian society in the past didn't give attention for improving the mentality to respect the time and enhance the performance. Changing and improving the behavior will help in dealing with this cultural issues; such as thinking of new trends in the local market like "make technology for all"; which means that all organizations level must encourage to accept the change and not feel of 27 danger; especially for those who think it is not possible to learn anything new in this field and it is limited to the new generation, which poses a threat to their career positions, the new technologies should perceived through the whole organization as tool to enhance the company position in market rather than a change that should be resisted. Due to environmental concerns and the need to reduce costs. The CI worldwide has experienced increased innovation and modernization (Marrengula et al ,2012). And as Palestine is one of the developed countries, it should keep pace with developing technology to enhance performance that will reflect on increasing the degree of acquisition of new technology associated with the lack of skills; high levels of innovation, and raise governmental sector investment in research and development (Marrengula et al ,2012). Palestine culture are one of the key challenges that make the necessary of efforts need to study and analyze this topics , because of the unique situation in Palestine due to the occupation that made allot of barriers to extend our vision through the whole world, So to give this aspect its right , studying the current situation in the West Bank should take into consideration to find alternative methods that help in solving the problems, obstacles that arise from this challenge, to be able devise practices, procedures and relationships that are suited to the culture in West Bank, then to formulate procurement approaches which enable and facilitate the integration of the construction process in the context. 28 2.5.2 Socio-Political Pressures Construction environment regulators, governments affect the process of development and building approval and enforcement of compliance with acts and regulations (Akanni, et al, 2013). For the government it is important to understand how political changes can specifically influence their behavior of a business. Political variables take a gander at political impacts, for example, government support, regulations and standards, employment laws, transportation approach, environmental regulations and tax policy (Taherkhani, et al, 2012). Palestine has faced a bad political situation due to the Israeli occupation since 1948. Shweiki (2013) clarified that Strikes, Israeli attacks and border closures were the most critical factors affecting project delay in Palestine in general and in Gaza for special. That had a major effect on the Palestinian PCI. It has also prevented implementing or even has also thought of an illustration sustainable construction in West Bank, which made this trend to be the major barriers and challenges facing the Palestinian community, (Osaily ,2010). It's important to highlight this theme in this study since Palestine face a very special political situation that affect the PCI, that help finding how much political situation have an impact on the performance of this industry. 29 2.5.3 The Environment Since eighties the environmental issue has been a major subject of research and international attention must be paid for this issue to protect it when they attain a high level of socio-economic development, and as the political situation in Palestine which faced with high levels of land disgracing it should take the most attention specially in reducing the area of lands that could be site for projects (Ofori, 2000). Appearing of these challenges has put adoption of sustainable development standards in construction by experts to concentrate on cost, time and quality only as conventional design and pay very little attention on environmental impacts. This trend of construction sustainability makes sound, environmentally responsible practices into one discipline that looks at the environmental, economic and social effects of a building or building project as a whole. A best practice in production process will result in reducing negative impacts on environment, minimize waste, and reduce planning risk, extended building life and viability Azix et al,( 2012).And so according to Ofori (2000) the government should take the responsibility as a construction client to encourage the construction companies and practitioners to continuously search for inputs and ways of working, by using technologies, materials, and so on, which will minimize the bad side effects on the environment, and evaluate the inputs that could provide some positive environmental features. 30 And so Palestine's government should take this responsibility to encourage construction organizations to share the improvement of the PCI by studying the environment in all fields (Ofori, 2000). The Palestinian environmental issue now a day's take a large scale in the evaluation of the projects, and fail to comply with environmental regulation can result in project delay or termination, disqualification from future work opportunities, fines, civil action, and even criminal prosecution. Also, it is paramount that top management as all parties in Palestinian organizations have full knowledge and understanding of environmental regulations and permit requirements. 2.5.4 Work Force challenges People are the most important resource in construction organization. Planning and implementation of the action in construction operations depend on knowledge and skills of people having a talented managers in place to guide and direct operations are crucial. (Muir & PE, 2005). Obviously, having a sufficient number of skilled and unskilled workers to perform the work is a bare necessity. Finding and recruiting sufficient numbers of skilled, talented people is becoming increasing difficult. There are several factors contributing to this challenge. That includes construction by nature is dangerous, dirty, and hard work. Disregarding the instability, construction remains necessary for employment, with the world utilizing 14.4% of Palestinian employees. However, despite steady growth since 2001/2 (reaching over 112,000 31 formal workers in 2012), the number of individuals currently utilized isn't considerably larger than in 2000 (around 103,000 – Figure 2.2). In 2012, the amount of employees utilized in construction activities grew by virtually half-hour in Gaza, however, by solely around 3d within the West Bank. Also, around 400th of all Palestinian construction workers worked in Israel or in an exceedingly settlement (accounting for quite 57 of Palestinian employment in Israel and also the settlements). Figure (2.2): Construction Sector employment in palestine in 2000-2012 Source: PCBS, Labour Force Survey, 2000-2012. Because of that, the focal point in the PCI in Palestine how to maximize long-term performance is?, it is important to provide the worker with the necessary training needed. Through enhancing the leadership and empowerment. That would be useful to aid in effectively coordinating work activities by providing the communication link between management and work crews, provides the opportunity for upward mobility and gives motivated individuals the chance to advance professionally. And lead to high levels of commitment, enthusiasm, self-motivation, productivity, and innovation. 32 Most studies focus on empowerment due to the high benefits to the employee and the organization can get feelings of appreciation, belonging, and heightened self-esteem. It also enables employees to make decisions for which they are accountable and responsible. According to (Muir &PE, 2005) Research indicates the level of empowerment does influence productivity. A high empowerment, increased productivity yields in contrast level. Empowerment of the workforce is one of the keys to improving construction performance. 2.5.5 Helath and public safety International Labor Organization(ILO)( 2001) has defined the Occupational health and safety as: “The prevention and maintenance of the highest degree of physical, mental and social well-being, the prevention of ill-health among workers caused by their working conditions, the protection of workers from factors adverse to their health in their employment, and the placing and maintaining workers in occupational environments adapted to their individual and psychological conditions.” that describe health refers to the protection of bodies and minds of people from illness resulting from materials, processes or proceeding used in the work place whereas safety is protection of people from physical injury (Hughes and Ferret, 2008). Safety means a state in which no danger of a damage causing accident exists. The workers in construction workplaces are exposed to hazards of occupational diseases and injuries and the adverse effects of excessive long 33 hours of work. Machines, plants and other sophisticated construction equipment constitute a danger to the operators, who in most cases do not have prior skills for operating such machines or plants. Duties should be assigned to labor with regard to his physical and mental health and skills. Moreover, employers must have complete control over their employees, thus ensuring adherence to safety practices. The company must comply with all provisions of safety and health regulations that relate to the construction works itself (Muiruri and Mulinge ,2014) There are a number of factors that have a negative impact on health and safety management in Palestine, which include poor infrastructure; problems of communication because of low literacy level; unorganized practices on construction sites; adherence to traditional methods of work; lack of equipment; improper use of equipment and corruption; extreme weather conditions. The CI culture in Palestine also does not promote health and safety. The competitive tendering practices and award of most public contracts to the lowest bidder in most projects is forcing contractors to drive their prices low while reducing costs which in turn affects health and safety (Muiruri and Mulinge ,2014) Some of the major challenges of health and safety management in the constructions sites noted by previous studies included but not limited to; inadequate personal and protective equipment, poor maintenance of personal protective gear, lack of top management support in the management of health and safety in construction sites, inadequate enforcement mechanisms, inadequate welfare facilities, absence of safety 34 and health committees, unawareness of health and safety matters among the workers and lack of equipped first aid kits on the construction sites. Welfare facilities were also noted as a big challenge since they are not adequately provided as well as personal protective equipment. Some site supervisors indicated that lack of adequate funds, lack of monitoring and evaluation, lack of personal protective equipment implementation programs among others as some of the factors that give rise to the above challenges (Muir and PE,2005). That explains the importance of studying this challenge to save the life of all involved in the C.P and enhancing performance of CI in Palestine. 2.5.6 Legal Issues Construction business is conducted through contractual arrangements that at times results in disputes. Claims, disputes, and financial the most common issues that represent the legal aspect of the CI and have been steadily on the rise for years. Hassanein and El Nemr, (2008) affirm that, claim was defined by Hughes and Barber in their reference “Claims in Perspective” as “a request, demand, application for payment or notifications of presumed entitlement to which the contractor, rightly or wrongly at this stage, considers himself entitled with respect to an agreement has not yet been reached”. The various types of claims include delay/disruption, extra work claims, acceleration, impossibility-of-performance, defective design 35 (error or omission), interference, and superior knowledge claims (Muir& PE, 2005). In construction disputes, the nonattendance of contract documentation is the most well-known issue. In any construction dispute which goes to litigation, the gathering with the better documentary record than backing its position will be in a better position to win. Cautious contract organization can save the Company a huge amount of dollars in unnecessary legitimate expenses and discourage subcontractors, suppliers and other outsiders from seeking after meritless claims and litigation ( Hassanein and El Nemr, 2008). Financial issue is one of the legal parts, according to finance, is the set of activities dealing with the management of funds, It includes the decision of accumulation and utilization of funds. Construction project finance is a unique financing and accumulations service that is particularly intended to support those in the CI, offering informed funding and services specific to construction business needs. Access to finance incorporates issues, such as, the accessibility of finance in the form of deposits, finance, payments, or insurance to individuals or firms. The accessibility of such services can be compelled for instance by physical access, affordability or eligibility. (Bondinuba, 2012). In CI, There is always a risk of financial related misfortune, and few gatherings are at more hazardous than others, (construction executive, 2014). 36 According to (BurtonShAw-Gunn, 2009), there are moreover numerous risks connected with financing of large-scale investments, both by private and also public organizations. In terms financial means requirements for projects, regardless of whether it is a public, public- private or a privately-funded venture and speculators are regularly afraid about settling on decisions because of lack of full information in the field of financing methods and their related risks. In C.P, the fundamental issues are in the evaluations and estimation of their profitability and guaranteeing the correct modes of financing. As the fund could be by internal, external or the client the projects must be secured to be able control project cost and financial performance that will be key areas to be managed (BurtonShAw-Gunn, 2009). This study will give attention to the financial part as a major subject, due to the previous studies which most of them taken attention for claims, contract problems, legal perspectives for construction in Palestine and has been studied as a special and specific topics. 2.5.7 Government Regulation Government regulation is one of the challenges facing PCI in the way of increasing this regularity since the public construction sector is always coming under greater regulation through the construction codes and licensing requirements. By applying these established construction standards and codes to satisfy the structural integrity that affects the public safety, although of that allot of multi specifications for contracts will 37 appear that form a challenge facing this sector with different currency and different conditions that are dependent on the funded organizations or country (Abedmousa, 2008). Since Palestinians code and international codes are mainly be relied upon in the governmental institutions, but it also often needs modifications that are unnecessarily restrictive to fit with the Palestinian situation. Some local codes are outdated and obsolete and prohibit the use of often superior, cost-effective materials and systems (Muir, PE, 2005). Therefore, the governmental institutions could be directly related to or indirectly contributing in the construction sector wherever a governmental body owns a construction project. that serve the community through their needs and by its various branches that concern of public building projects which work separately in some cases or together to manage public projects .As well as, they could control and supervise the construction sector. Therefore, the construction sector is organized according to PCU law and the laws enacted by the previously mentioned governmental institutions (Abedmousa, 2008). 2.5.8 Performance Okuwoga (1998) stated, the performance of the CI is considered as a source of concern to both public and private sector clients. Rashed (2014) stated that the performance is the processes and procedures that involved within a project to get the activities done in the right way. 38 That various definition appears many reasons and factors which attribute to the performance problem facing the public construction sector in Palestine. Abu Shaban, (2008) affirm that, the CI performance problems can be classified in three layers: problems of shortages or inadequacies in industry infrastructure (mainly the supply of resources), problems caused by clients and consultants and problems caused by contractor incompetence/ inadequacies. Or it could be because of incompetent designers/contractors, poor estimation and change management, social and technological issues, site related issues and improper techniques and tools. Also, Samson and Lema (2002) found that the traditional performance measurement systems have problems because of the large and complex amount of information with absence of approaches to assist decision maker understand, organize and use such information to manage organizational performance. The performance challenge could be categorized according to the component they related to; the components are the cost, the time and the quality.  Challenges related to cost Iyer and Jha (2005) remarked that project performance in term of cost has been studied since 1960s. These studies range from theoretical work based on the researcher experience one end of structured research work on the other end. Moreover, Pheng and Chuan (2006) by Abu Shaban 39 (2008) stated that there have been many past studies on project performance according to cost and time factors. Project complexity, client characteristics and contractor characteristics are highly correlated with the cost performance Abu Shaban (2008). Basically the most sophisticated challenges faced the construction project in West Bank related to the project budget, in which affect the performance of the project, some time the project stakeholders have to decrease the scope of work by erasing some activities to keep budget under control, and that really create a conflict of interest through the project parties.  challenge related to time Abu Shaban (2008) remarked that studies in various countries appear to have contributed significantly to the body of knowledge relating to time performance in C.P over the past three decades. A number of unexpected problems and changes from the original design arise during the construction phase, leading to problems in cost and time performance. A poor site management, unforeseen ground conditions and low speed of decision-making involving all project teams are the three most significant factors causing delays and problems of time performance in 40 local building works and project complexity, client type, experience of team and communication are highly correlated with the time performance. Chan and Kumaraswamy (2002) to increase speed of construction and so to improve the construction time performance have proposed technological and managerial strategies. Effective communication, fast information transfer between project participants, best selection and training of managers, and detailed construction programs available with advanced software can be remarked as a solution to enhance the performance.  Challenges related to quality Time, cost, quality are the three critical objectives of construction management, are not independent but intricately related. Trade-offs between project duration, total cost, and quality are extensively discussed in the project management because of its practical relevance and it is one of the highly important issues in project accomplishment and has been ever taken into consideration by project managers. Improving quality is considered by many as the best way to enhance customer satisfaction, to reduce manufacturing costs and to increase productivity. Any serious attempt to improve quality must take into account the costs associated with achieving quality, since nowadays it does not suffice to meet customer requirements, it must be done at the lowest possible cost as well. This can only happen by reducing the costs needed to achieve quality and the reduction of these costs is only possible if they are 41 identified and measured. Quality is said to be an ambiguous term understood differently by different people. It is sometimes defined as activities designed to improve the organization and its services and also known as achieving pre-defined standards. It is also believed that quality is the characteristics of a product or service that bear. It is believed that quality is a factor affecting decision making and paying attention to it can make our decision economics. In other words, avoiding quality, as a worthwhile investment, is not economic. Quality is not an abstract, instrumental, luxurious and unnecessary paradigm and new approach to the management thinking assuring the production of high quality products and services, giving serious attention to quality is found to be the main success factor of organizations. Quality management points to attain a sustained consistent level of quality, that won't be change over time, the quality process shall improved till sky, the quality is a journey rather a destination. But in west bank there is a group of challenges that faces the CI such as: absence of clear code of conduct that related to quality issues, no quality system to control the contractor activities according to, the stuff unwillingness to accept the quality system, no quality system to rank contractors according to, and the prevailing perception that quality is inferior than the other components of the project. This research will study the factors affecting the performance of PCI and then analyze the result to be able form a framework help in developing 42 this sector in the future to minimize the problems with using the maximum resources and opportunities available. 2.6 Summary In this chapter, CI, PCP and the challenges facing this sector had been discussed, so the importance of the performance and the subsequent in managing the PCP in West Bank had been highlighted. This research aims to implement the best practice in public building construction sector in Palestine Generally and particularly in West Bank. Next chapter presents the methodology that is used in this research to collect data, by highlighted the status existing for the challenges in implementation construction sector in West Bank, in different words, an attempt to clarify the impact of the challenges and by what variables that could affect the construction sector performance. to find out those factors through the real practice in C.P in West Bank and put the hand on the existing gap, and to find out a way to bridge such a gap. 43 CHAPTER 3 RESEARCH METHODOLOGY 3.1 Introduction This chapter introduces the methodological approach overview used during the research that studying and identifying the challenges facing PCI in Palestine , by studying the current situation in the local C land, building a framework that can be implemented by evolving better policies, strategies and rational decisions to decision makers and managers to achieve best performance; this is adopted by reviewing of literature related to CI to select the appropriate way conducting the analysis First and foremost, the researcher reviewed the literature that related to the construction sector. An interviews were conducted; then the questionnaire was distributed and the result were analyzed; then the framework and results and conclusion were formulated. 3.2 Research Methodology Diagram To outline the approach utilized in the research as a part of this exploration, which begins, with the selection of the theme and completion with the conclusion and recommendation, involving the questionnaire design and the data collection and developing the framework. Seven phases are included in this research and represented in figure (3.1); that clarify a flowchart of the methodology, that driving achievement the research purpose. 44 Selecting the topic considered the first phase of this study. The second phase involved creating the study objectives and the research plan after that is to identify and define the research problems. The third phase is reviewing the literature to reveal the previous studies that are related to the PCI and challenges facing construction sector. Then doing preliminary studies to investigate the Palestinian situation about implementing project management in public CP, by interviewing some government organization, consultants, and managers of donor countries’ institutions, contractors, and other stakeholders to help in data gathering about the status quo. The fourth phase illustrates designing and testing the questionnaire contents by contact with experts, to get their opinion about whether the target of this research would be useful to fulfill and develop the framework and get the recommendations. Based on the experts notes the questionnaire was modified. Figure (3.1): The methodology flowchart 45 The next move of this stage was distributing around (350) questionnaires to the targeted sample to reach the research objective by collecting data and analyze it. The fifth phase of the research is statistical data analysis using Statistical Package for the Social Sciences (SPSS) program to execute the required analysis. Developing a framework is a crucial step to enhance and enrich the implementation of PCP management in West Bank. Eventually the research conclusions and recommendations exhibited. 3.3 The Research Approach Saqfelhait (2012) defined the research strategy as “the way in which the research objectives can be questioned.” Therefore, selecting research technique is an entirely essential choice the researcher needs to look forward to the methodologies, to figure out which of them will fulfill the targets of the study and the researcher needs, contrasting the accessible data and the required data. There are two fundamental ways to deal with research, the quantitative and qualitative methodologies, or the mixed method (Creswell, 2009). Both methodologies have advantages and disadvantages; whatever, there are inquiries about where one is more helpful or more suitable than the other. The quantitative approach uses the numerical values, while the qualitative approach uses the textual results, the first one describes the closed-end questions, the questionnaire and survey method, and the second 46 focus on the open-ended questions, the interviews and focus group method, (Creswell, 2009). A quantitative approach is used to anticipate and reach the final result utilizing numbers and numerical values. While the qualitative one is use(Creswell, 2009) to be able to achieve high thoughts and perception comprehend and understand how stakeholder consider issues, opinions and construct a basis for decision-making. For reaching the end goal of this research the analyst used qualitative method basically for the most part and quantitative method when expected to help in comprehension the real situation (Rashed,2014) and (Creswell, 2009). At the point when contrasting quantitative and qualitative research methods, Hancock (1998) noticed that qualitative research is interested in finding the responses to questions that start with: why? How? In what way? While quantitative research is more worried with questions like: how much? How many? How often? To what extent? The mixed method is utilized as a part of this study for information accumulation, which involves an incorporation of quantitative and qualitative approaches. These mix method was used: “The sequential transformative strategy, which has two distinct data collection phases, one following the other” (Creswell, 2009). In this research, the initial phase was qualitative followed by the quantitative that is implicit the prior phase . The researcher can have the capability to investigate the issue from assorted points of view and closures with a call for action (Creswell, 2009). 47 Then, the sequential explanatory strategy was adopted, which is described by gathering and analyzing of quantitative information in a first stage followed by qualitative data gathering and analyzing them as the second phase that builds on the outcome of the preliminary quantitative implications. This configuration normally received to clarify and translate quantitative implications, especially when sudden results emerge from a quantitative study (Creswell, 2009). 3.4 The Sample Size The questionnaire was designed, and 350 questionnaires were distributed to the participant to gauge and get a patent picture about the challenges facing PCI in Palestine implementing, to pinpoint and understand those challenges for enabling a successful projection to make construction management more efficient and responsive. There are two populations targeted in this research, they are Organizational population: it will cover all PC projects in West Bank governorates, in the last five years, and Human population: it will cover all individuals and groups concerned with the CP that will focus on engineers, and other staff who is related to CI contractors who implement the CP, local authorities, and NGO's agencies. It was not a simple work to decide the quantity of the organizations, and contractors; because of several categorizations in different specializations the firms had, might be tallied more than one time. The 48 researcher considered each firm once , as per its highest classification then we chose to make a comprehensive sample. 3.4.1 Project owners -Governmental Organization (GO) The first stage is represented by the GO as an owner for the CP; even though they control these projects directly or owned it by donors after completion. According to alfarra & allouh, (2007) Palestinian Governmental Structure consist of 22 ministries ,which they distributed according to each field needed to build our community and they are : Ministry of Information, Finance, Foreign Affairs, Civil Affairs, Economy, Agriculture, Education and Higher Education, Health, Housing and Public Works, Interior, Justice, Labor and Social Affairs, Planning, Tourism, Transport, Local Government, Prisoner Affairs, Religious Affairs, Telecommunications and Technology, and ministry of Women’s Affairs. In this research, the owner of those projects' are; government organizations , related ministries, municipalities, international agencies, and large public owners. 3.4.2 Construction Projects (C.P) representative The second population is represented by engineering consulting companies in Palestine who have a valid membership in the engineering association were selected and approved by the owners' representatives, which they are (205) offices distributed in all regions by various specialties. (138) class consultants were targeted; which located in 49 Ramallah City, Nablus, Bethlehem and Hebron Cities by (45), (43), (14) and (37) respectively (Engineering Association, 2015). 3.4.3 Contractors companies The third population represented contractor companies. In 2015, the number of contractor companies in building field reaches 317 contractors in West Bank, and the involved sample mainly are the three main categories first class A, first class B, second class; which consist of 148 companies distributed according these categories and region (23), (56) and (69) companies respectively. Other categories will be excluded as a result of the concentration of government institutions in their CP on the categories previously mentioned companies. The classification depends on the capital, staff, experience, history of the achieved projects. (PCU,2016) The researcher chooses the three principle classifications first class A, first class B, and second class; since it was found that around 95% of the total implemented projects in West Bank were finished by the first three degrees of the registered classified contractors (Rashed, 2014). In this way, the researcher proposed to concentrate on these three classified contractors due to the highest percent of public projects implemented in West Bank. Figure (3.2) Shows the percentage of these companies according to the CI field in Nablus ,Ramallah, Bethlehem and Hebron as a north middle and south region from total CI companies. 50 Figure 3-2: The Percentage of the Classified Targeted Contracting Firms in Palestine. (PCU,2014). The researcher gave the contracting companies’ opinions an interest regardless of its location. Figure (3.3) shows the percentage of the implemented projects with its classification degree. In addition, Figure (3-3) that illiterates the Percentage of the implemented projects according to the classification degree for the registered classified contracting companies in West Bank. Figure (3-3): Executed projects Percentage according to the classification degree for the registered classified contracting companies in West Bank (PCU, 2003). 51 Also, Figure (3-4) shows the location distribution of the contracting companies throughout the West Bank. Figure 3-4: Classified contractor’s percentages with respect to the location in the West Bank (PCU, 2003). 3.5 Designing the Questionnaires The questionnaire is the fundamental the field study tool to concentrate on, and is utilized on a large scale by the researchers to get the certainties about the circumstances and strategies that already are existed. The questionnaire was designed in English and translated to Arabic language because it is a mother language in order to be easily- understood by respondents; especially that some of them are not recognizable with the English language, and to serve the research language it is presented in English in the Appendix A. The questionnaire aimed to cover the main issues beginning with a covering letter that clarifies the motivation behind the research, the significance and the confidentially of information exhibited . In order to 52 accomplish the research aim, the questionnaire separated into three main division: -Part one: basic information -Part Two: The construction challenges; which cover facts about some variables, and practices concerning with the factors affecting the performance of CP. -Part three : how to deal with these challenges, and open-ended questions. 3.6 Interviews A face-to-face interpersonal interviews with some involved project manager for PCI in governmental organization, consultants companies, project managers and donors. In which an interviewer asks unstructured, structured, and semi-structured interviews to get important information according to their experience that help in building the framework. 3.7 Sampling, Instrumentation and Procedure The sample consisted of 350 various parties as explained in the sample and the population who work in West Bank in the last five years , the respondents were (300). Those aged from 20 to- more than 50 years, their qualifications ranged from (high school, Diploma to PhD). Moreover, the respondents were varied in terms of job title and years of experiences. The demographic variables are shown in table 3-1 and 3-2. 53 Table (3-1): Distribution of Sample According to Study Independent Variables Variable Class Frequency Percentage % Sex Male 219 73 Female 81 27 Age Less than 20 2 0.7 20-less than 30 141 47.0 30-less than 40 95 31.7 40-less than 50 23 7.7 over 50 39 13.0 Qualification Secondary 4 1.3 Diploma 10 3.3 Bachelor 218 72.7 Master 63 21.0 Ph.D 5 1.7 Position Project Engineer 142 47.3 Project Manager 76 25.3 Employee 23 7.7 General Manager 15 5.0 Other 44 14.7 Experience Less than 2 years 24 8.0 2-less than 5 years 59 19.7 5-less than 10 years 107 35.7 10-less than 20years 65 21.7 20-less than 30years 31 10.3 More than 30 years 14 4.7 Total 300 100.0 54 Table (3-2): Distribution of Sample According to General Information about the company Variable Class Frequency Percentage % Location of work North W.B 27 9.0 Middle W.B 40 13.3 South W.B 113 37.7 Arab countries 21 7.0 Foreign countries 3 1.0 North, Middle and South 53 17.7 Middle and South 43 14.3 Work type Governmental organization 60 20.0 Engineering Consultant office 102 34.0 Contractor 102 34.0 Donor Institute (NGO’s) 36 12.0 Firm classification 1st class (A) 62 60.0 1st class (B) 20 20.0 2nd Class 20 20.0 Number of accomplished projects Less than 10 70 23.3 10-49 projects 159 53.0 50-100 projects 51 17.0 More than 100 projects 20 6.7 main-sector of projects Building 118 39.3 infrastructure 79 26.3 Electro-mechanical 27 9.0 Others 76 25.4 projects that your organization prefer Governmental Organization 40 13.3 Non-profit Foreign Institutes 53 17.7 Municipalities 126 42 Private Local Institutes 26 8.6 Other 55 18.4 Types of construction Lump-Sum Contracts 11 3.7 Unit Price Contracts 36 12.2 Cost Plus Contracts 159 53.1 Design-Build Contracts 14 4 Other 80 27 55 The disagreements happening during execution of works are mostly between Owner and engineer 11 3.7 Owner and Contractor 63 21 Engineer and Contractor 226 75.3 Total 300 100.0 3.8 Instrumentation To reach the study target , the researcher utilized around 100 questions adjusted from previous literature and the own experience of researcher's in the field of construction engineering. The questionnaire comprised of three sections; the first one focused on the general data (demographic profile) such as (qualification, age, job title, experience, the main-sector of projects that company dealing with, and number of projects that the company has accomplished so far), whereas the second and third ones consisted of the following domains: (critical reasons of conflict which can have an impact on the performance of PCI and some facts about Some Practices of projects thorough execution the projects , number of challenges and barriers for implementing management in CP, the ways to deal with such challenges and an open-end questions). The scores of reaction to each item were computed according to a five-point Likert scale, in which strongly agree=5 points, agree=4 points, Natural = 3 points, disagree = 2 points and strongly disagree =1 point. 56 3.9 Validity of the Questionnaire To ensure the validity of the questionnaire, six person who specialized in CI were consulted their opinion in the questionnaire four of them were holding Ph.D. degree in the field of our study and the questionnaire was modified and improved according to their comments and recommendations and that really helped in developing a comprehensive questionnaire that survey the desired issue. The questionnaire, then, was piloted on 2 governess engineers with comparable levels of demographic information. The reason for the pilot study was to figure out if the inquiries were comprehensible. The respondents’ comments and the stakeholder recommendations were mulled over to adjust and enhance the questionnaire's substance and wordings by overlooking, including, or rethinking things. 3.10 Reliability of the Questionnaire Cornbach Alpha formula by the SPSS was used to measure the reliability of the questionnaire, and the result was (0.98), which is worthy with the end goal of the study.(Creswell, 2009) . Cronbach's alpha is a measure of internal consistency, that is, how closely related a set of items are as a group. It is considered to be a measure of scale reliability. (SPSS FAQ). The final draft of the questionnaire which include 350 distributed questionnaire given to the population of the study in West Bank. And by distributing, gathering and returned back the questionnaire to the researcher 57 It took about six weeks. (312) are the total number of the returned questionnaires ,(12) of them were excluded due to their responses were neither consistent nor completed. and only (300) were analyzed. Data collected using those methods will be integrated and categorized to ensure the questions of the study are answered, it's worth mentioning that the questionnaire was formulated and distributed online, and that really helped in getting a quicker response easily and within a short period of time. 3.11 Data Analysis To provide study questions answers. (SPSS-17) was used to analyzed the collected data collected. Means, frequencies, standard deviations, t-tests for Independent Samples and One Way ANOVA and person correlation matrix. The following scale was used by the researcher to analyze the findings, and represent the estimation level of employees’ responses. 3.5 -and more: High 1.7–3.49.: Moderate Less than 1.7: Low 58 CHAPTER 4 RESULTS AND DATA ANALYSIS 4.1 Introduction The following scale will be a guide for analyzing and describing a result of the study .the meaning and specification of the result is focused on standard deviation and means .means vary from 1to 5 and the key of describing them as table(4-1). Statistical Package for Social Science (SPSS) analyzing program was used after finishing the data collection to present answers to the study questions. Means, frequencies, standard deviations, One-Way Analysis of Variance (ANOVA), were utilized to discover descriptive statistical analysis. To analyze the findings, the following scale is representing the estimated level of stakeholders' responses: 3.5 and more means High level, 2.5-3.49 implying Medium level, and less than 2.5 implying the Low level 4.2 Results and Discussion This study aimed at clarifying the Challenges Facing Public Constructions Industry (PCI) in Palestine: framework for implementation. It is also aimed at defining the effect of several variables on the employees’ responses. To fulfill the points of the study, the researcher analyzed the information as per the study questions and the outcomes were as per the following: 59  Results related to the First Question. What are the cultural, the political, the environmental, the human, the health and safety, the organizational, and the performance's challenges facing the PCI in Palestine? To answer this question, the researcher used means and standard deviations as shown in Table (4-1). Table (4-1): Means, Standard Deviations and estimated level of the extent the conflicts happening between the project stakeholders within the public construction project (PCP). Item Means Standard deviations Estimated level After contract signing, before execution commencement 2.27 0.87 Low During project execution 3.98 1.00 High After project completion 3.14 1.11 Moderate Total 3.12 0.65 Moderate Table (4-1) demonstrates that the total degree the extent the conflicts happening between the project stakeholders within the PCP was (3.12) which suggests a moderate level of estimation. The highest score for mean was given to the item "During project execution." which scored (3.98), which is realistic and logical result, because on the project execution the claims and conflicts are raising, Furthermore, the item that had the lowest mean score was given to "After contract signing, before execution commencement" which scored (2.27) . 60 Table (4-2): Means, Standard Deviations and estimated level of the most disagreements happening during execution because of . Item Means Standard Deviations Estimated Level Interfering in woks & changing their specifications repeatedly 3.60 1.06 High Delay of contractor payments 3.62 1.12 High Supervising engineer un- commitment 2.74 1.16 Moderate Slow in making decisions 3.41 1.09 Moderate Not compensating the contractor under force majeure conditions 3.15 1.18 Moderate Delay in receiving or delivering the work site 2.79 1.17 Moderate Lack of authorities given to engineers 3.25 1.14 Moderate Poor experience in work execution 3.23 1.15 Moderate Oral instructions & orders 3.60 1.09 High Delay in work execution 3.84 1.04 High Not documenting the daily works 3.43 1.11 Moderate Shortage of manpower assigned to the project 3.41 1.13 Moderate Non abidance with needed specifications 3.75 1.04 High Absence of the implementation plan 3.67 1.14 High Total 3.69 0.70 high Table (4-2) demonstrates that the total degree of the reasons for the most disagreements happening during execution was (3.69) which suggest a moderate level of estimation. The highest mean was given to the item "Delay in work execution.", which scored (3.84), which is reasonable due to the prevailing culture to delay the activities till the last moment. Furthermore, the item that had the lowest mean score was given to 61 “Supervising engineer un-commitment” which scored (2.74), general speaking we have a commitment through our engineers. Table (4-3) : Means, Standard Deviations and estimated level of the reason of contractual disagreements. Item Means Standard Deviations Estimated level Not feeling in contract importance. 3.38 1.16 Moderate Speed in contract formulation and un review it. 3.03 1.2 Moderate Lack of essential understanding and perception of contractual and legal consequences. 3.62 1.05 High Differing interpretations of the contract due to lack of clarity. 3.49 1.09 Moderate Total 3.38 0.88 Moderate Table (4-3) demonstrates that the total degree of the reason of contractual disagreements was (3.38) which suggest a moderate level of estimation. The highest score of mean was given to the item "Lack of essential understanding and perception of contractual and legal consequences " which scored (3.62), because in Palestine the tendering process somehow is new, most of people are biased to the traditional way, they didn't like the contracts and documentation process. Furthermore, the item that had the lowest mean score was given to “Speed in contract 62 formulation and un review it” which scored (3.03), that’s mean the consultants firms usually review their documents, tenders and contracts. Table (4-4): Means, Standard Deviations and estimated level of factors related to culture. Item Means Standard Deviations Estimated Level Employees gender is a hostile environment 3.00 1.20 Moderate Suspicious cultures that prevailing inter, between stakeholders 3.40 1.01 Moderate Culture and tradition against anything new 3.17 1.07 Moderate Shortage by using modern techniques in design 3.36 1.02 Moderate Blindly imitate other projects 3.43 1.19 Moderate Shortage in employee training to use modern techniques 3.28 1.07 Moderate Shortage in using modern techniques in communication 3.00 1.08 Moderate Negative attitude against modern techniques 2.82 1.06 Moderate Total 3.18 0.81 Moderate Table (4-4) demonstrates that the total degree of factors related to culture was (3.18) which suggest a moderate level of estimation. The highest mean was given to the item "Blindly imitate other projects." which 63 scored (3.43), even in the CI the engineers like to keep the traditional way due to lack of creativity. Furthermore, the item that had the lowest mean score was given to "Negative attitude against modern techniques" which scored (2.82), people in this area trends to be conservatives. Table (4-5): Means, Standard Deviations and es