Literature is vastly under-investigated. Chan and Kajewski (2012)



According to Giorgio Locatelli et al. (2017), future
research activities should deepen the correlation between corruption and
project performances comparing the costs of similar megaprojects in countries
with different levels of corruption. Corruption does not simply lead to extra
cost and delay, but also increases the transaction costs such the effort to set
a certain procurement and controlling system.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now


David Owour (2016) in his study on the “Factors
influencing completion of construction projects in kenya: a case of government
buildings construction projects in nairobi county, kenya found out that the
Political interference plays a critical but poorly understood role in
determining the success or failure of the completion of Construction Projects
on a Very high extent with a mean of 3.901. The questionnaire method of survey
was used for data collection because it offered considerable advantages in the
administration. Data was collected, examined and checked for completeness and
clarity. The data collected was analyzed quantitatively. Frequency tables with
varying percentages was used to present the findings.


According to Sohail M et al. (2016) there has been
an increase in international concern recently about the extent of corruption in
the construction industry. For example the American Society of Civil Engineers
claim that corruption accounts for an estimated $340,000,000,000 of worldwide
construction costs each year. However, it was observed that research on
corruption in the construction sector have gone relatively unnoticed and
understudied. Fundamentally, if incidences of corruption and bribery are to
decline it requires breaking the taboo of talking about corruption in the
construction industry.


Through his study Zhang et al. (2015) identified that in
China when the net loss for corruption “income from corruption minus the
penalties for corruption and cost of strict inspections” is less than the cost
of strict inspections, the final evolutionary stable strategy of the inspectors
is to carry out indolent inspections. The topic of increased project
transaction costs is vastly under-investigated.


Chan and Kajewski (2012) through their studies stressed the importance of a stable
political environment in successful implementation of any long term
construction project. And also suggested that to encourage the private sector
investment in public housing projects, the government should provide a
guarantee to developers by managing those risks that the government is in the
best position to handle, such as changes in law and fluctuation of the exchange


Mukhtar Musa et al. (2006) in his study in Nigeria on
Influence of External Environmental Factors on the Success of Public Housing
Projects in Developing Countries by means of interviews and surveys concluded
that the political factor significantly affected the public housing project
success in their country to a great extent.


As per the studies by Arghadeep Laskar et al. recent
experiences of several new mega-projects are clear indicators that the industry
is poised for a bright future. It is the second homecoming of the civil
engineering profession to the forefront amongst all professions in the country.
However, the industry is still faced with some major challenges, including
corruption, disaster resistant construction, water management and mass


Deng X et al. in
their study to explore the variables affecting the project system vulnerability
to political risks in international construction projects concluded that three
exposure factors (i.e., attribute-based exposure, strategy-based exposure, and
transaction-based exposure) and three capacity factors (i.e., core competitive
capacity, relative bargain capacity, and integrate adaptive capacity) were
believed to be the significant underlying factors for the project system
vulnerability to political risks. The results also indicated that the emergent
framework was suitable and tractable for application in the future. A
questionnaire survey and case studies were conducted by them.


According to the Ogunsemi D.R. and Jagboro G.O. (2006)
in their work “Time-Cost modelling for building projects in Nigeria, concluded that
one of the major problems that the Nigeria construction industry is faced with,
is the problem of cost overrun, which leads to completing projects at costs
very much higher than the initial cost.


the literature surveys that were conducted it was identified that even though
there have been many studies carried out on the factors affecting the
construction project in India or internationally, there were not much studies
carried out on the political influence on construction projects. There have also
been a considerable number of studies devoted to political risk management in
the context of international general business, such as multinational
enterprises, foreign direct investments, and international joint ventures;
however, the study on political risks has drawn less attention than those on
other types of risks in the construction industry. Although a few studies have
focused on political risks in construction projects (e.g., Ashley & Bonner, 1987; Wang et al., 1999, 2000; Al Khattab et al.,
2007; Sachs et al., 2008; Ling & Hoang, 2010), little was known about
the factors contributing to political risks in international projects.