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

LiteratureReview According to Giorgio Locatelli et al. (2017), futureresearch activities should deepen the correlation between corruption andproject performances comparing the costs of similar megaprojects in countrieswith different levels of corruption. Corruption does not simply lead to extracost and delay, but also increases the transaction costs such the effort to seta certain procurement and controlling system. OgenoDavid Owour (2016) in his study on the “Factorsinfluencing completion of construction projects in kenya: a case of governmentbuildings construction projects in nairobi county, kenya found out that thePolitical interference plays a critical but poorly understood role indetermining the success or failure of the completion of Construction Projectson a Very high extent with a mean of 3.901.

The questionnaire method of surveywas used for data collection because it offered considerable advantages in theadministration. Data was collected, examined and checked for completeness andclarity. The data collected was analyzed quantitatively.

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


order now

Frequency tables withvarying percentages was used to present the findings. According to Sohail M et al. (2016) there has beenan increase in international concern recently about the extent of corruption inthe construction industry. For example the American Society of Civil Engineersclaim that corruption accounts for an estimated $340,000,000,000 of worldwideconstruction costs each year. However, it was observed that research oncorruption in the construction sector have gone relatively unnoticed andunderstudied. Fundamentally, if incidences of corruption and bribery are todecline it requires breaking the taboo of talking about corruption in theconstruction industry. Through his study Zhang et al. (2015) identified that inChina when the net loss for corruption “income from corruption minus thepenalties for corruption and cost of strict inspections” is less than the costof strict inspections, the final evolutionary stable strategy of the inspectorsis to carry out indolent inspections.

The topic of increased projecttransaction costs is vastly under-investigated. Chan and Kajewski (2012) through their studies stressed the importance of a stablepolitical environment in successful implementation of any long termconstruction project. And also suggested that to encourage the private sectorinvestment in public housing projects, the government should provide aguarantee to developers by managing those risks that the government is in thebest position to handle, such as changes in law and fluctuation of the exchangerate.  MohammedMukhtar Musa et al. (2006) in his study in Nigeria onInfluence of External Environmental Factors on the Success of Public HousingProjects in Developing Countries by means of interviews and surveys concludedthat the political factor significantly affected the public housing projectsuccess in their country to a great extent. As per the studies by Arghadeep Laskar et al. recentexperiences of several new mega-projects are clear indicators that the industryis poised for a bright future.

It is the second homecoming of the civilengineering profession to the forefront amongst all professions in the country.However, the industry is still faced with some major challenges, includingcorruption, disaster resistant construction, water management and masstransportation. Deng X et al. intheir study to explore the variables affecting the project system vulnerabilityto political risks in international construction projects concluded that threeexposure factors (i.e.

, attribute-based exposure, strategy-based exposure, andtransaction-based exposure) and three capacity factors (i.e., core competitivecapacity, relative bargain capacity, and integrate adaptive capacity) werebelieved to be the significant underlying factors for the project systemvulnerability to political risks. The results also indicated that the emergentframework was suitable and tractable for application in the future. Aquestionnaire 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 thatone of the major problems that the Nigeria construction industry is faced with,is the problem of cost overrun, which leads to completing projects at costsvery much higher than the initial cost.

 Fromthe literature surveys that were conducted it was identified that even thoughthere have been many studies carried out on the factors affecting theconstruction project in India or internationally, there were not much studiescarried out on the political influence on construction projects. There have alsobeen a considerable number of studies devoted to political risk management inthe context of international general business, such as multinationalenterprises, foreign direct investments, and international joint ventures;however, the study on political risks has drawn less attention than those onother types of risks in the construction industry. Although a few studies havefocused 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 aboutthe factors contributing to political risks in international projects.