AN INVESTIGATION ON THE IMPLEMENTATION OF EFFECTIVE BUSINESS PRACTICES BY CONSTRUCTION FIRMS WITHIN NAIROBI COUNTY

ABSTRACT This study investigated the implementation of effective business practices by construction firms in Nairobi. This is because business practices have a critical influence on the performance of construction projects and industry yet are often not the topic of research as hard factors such as time, cost and quality are preferred. Specifically, the study divided these practices into three parts: internal practices, external relationships, review and goal setting practices which formed the specific objectives. A review of literature was conducted to determine the most critical of business practices most relevant to the Kenyan and Nairobi context. the literature review settled for human resources, health and safety and technology under internal practices; client relations, competition relationship and partners relationship under external relationships; and Appreciation for role of business practices as influencing construction performance, conducting of reviews and existence of clear mission and vision guiding setting of goals. The study found that firms in Nairobi have implemented good business practices in regard of internal practices, have poor external relationships and poor review and goal setting practices. In general, when the specific objectives were averaged, the business practices were found to just exceed the benchmark. In light of these findings the study recommended that the firms continue their positive internal practices but follow statutory and practical guidelines on health and safety. On external relationships, the firms should observe the post occupancy satisfaction of clients, set goals and share information with partners and be aware of how competitive they are in relations to other firms