An evaluation of the implementation of an enterprise resource planning (ERP) system for effective performance of construction projects in South Africa

M.Tech. (Construction Management)Abstract: The modern construction industry is characterised by its complex projects, fragmented nature, and its requirement for sophisticated management for the successful delivery of projects. Hence, project success rests heavily on its effective project management and collaboration among all relevant stakeholders in order to counter the challenges which negatively influence the performance of construction projects. With the construction industry being a critical sector in the economic development of South Africa, this study aims to evaluate the implementation of enterprise resource planning (ERP) systems for the purpose of effective construction project performance in the Gauteng Province of South Africa. This study assesses the perception of enterprise resource planning systems among construction professionals. The study further assesses the critical factors for their successful implementation, the benefits which can be gained through their implementation, the key performance indicators of a successful implementation, and also whether construction project performance can be improved through the implementation of ERP systems in the Gauteng Province construction industry. The data for this study were obtained from both primary and secondary sources. The primary data were obtained through structured questionnaires that were distributed to construction professionals and other relevant construction project stakeholders in contracting and consulting companies. The secondary data were collected through a rigorous review of related literature. Out of two hundred questionnaires handed out, a hundred and seventy-one were returned with only a hundred and sixty-seven of them being of good enough quality for analysis, thereby representing a response rate of eighty-six per cent. The findings that emerged from the questionnaire survey results obtained from the randomly selected respondents revealed that an ERP system is perceived to reduce operation costs, improve project cost control, promote effective planning of workforce distribution, maximise opportunities for staff education, eliminate unnecessary processes, enhance strategic resource planning, enhance strategic resource allocation, and improve project decision making, among other benefits. The study further revealed that the top most significant benefits of ERP system implementation in construction firms in the Gauteng Province include informed decision making, effective information management, effective project coordination, the elimination of unnecessary processes,.