i

SHORTAGE OF SKILLED LABOUR IN

CONSTRUCTION INDUSTRY OF SRI LANKA

By

Basnayake L.K. (E/10/0057)

Premathilaka R.P.M.M. (E/10/264)

Supervised by

Dr. P.B.G. Dissanayake

Project: E/10/072

Department of Civil Engineering

Faculty of Engineering

University of Peradeniya

Peradeniya, 20400

Sri Lanka

August, 2015

ii

ABSTRACT

The construction industry is heavily dependent on the adequate supply of skilled labour,

and as a result the skilled labour shortage in the Sri Lanka has received considerable

attention in recent years. Hence, the study on the shortage of skilled labour in

the construction industry of Sri Lanka is an important and timely study for the industry.

This study focuses on the reasons for the skilled labour shortage, the consequences of

skilled labour shortage, mitigation methods to overcome the skills shortage and to find the

extent of the skilled labour shortage in Sri Lanka. A questionnaire survey was conducted

within the both private and public construction organizations to analyze the views of

professionals’ as well as labourers’. Professional level questionnaire survey was conducted

among 150 number key persons with in the industry and labour feedback survey was

conducted among 55 number labourers with various skills categories. Significance Index

was applied for the ranking of reasons and adverse effects while the Importance Index was

used to rank the counter measures. Spearman’s Rank Correlation method was used to find

the relationship between the responses of each category. Both the Microsoft Excel as well

as the SPSS software were utilized accordingly for the processing of data analysis. Labour

feedback survey was found seven critical issues for the skills shortage. Inadequate supply

of skilled labour from training institutes was found as the major reason for shortage of

skilled labour in construction industry while poor quality of works was identified as the

major effect and arranging seminar/training through ICTAD/IESL was found as the most

suitable mitigation measure to overcome the issue.

Keywords: Construction Industry, Skilled Labour, Causes, Effects, Mitigation Measures

iii

Acknowledgements

We would like to pay our gratitude to Dr. P.B.G. Dissanayake, the supervisor of our

project for his guidance. Also we would like to thank Dr. S.B. Wijekoon and Mrs. K.K.K.

Sylva for their advises as members of our evaluation panel. Furthermore our sincere

acknowledgement goes to Civil Engineering Department and Civil Engineering Society for

the support given to us to make our reseach a success.

iv

Contents

Abstract

Acknowledgement

Table of Contents

List of Figures

List of tables

List of Abbreviations

1 Introduction

2 Literature Review

3 Materials and Methods

4 Results and Discussion

5 Conclusion and Recommendation

References

Appendix

v

List of figures

Fig 4.1 Distribution by Employment

Fig 4.2 Distribution by Involvement

Fig 4.3 Distribution by Category

Fig 4.4 Distribution by ICTAD Grade

Fig 4.5 Summary of the training analysis

Fig 4.6 Summary of the training analysis

vi

List of tables

Table 4.1 Ranking of Casual Factors according to the view of involved parties

Table 4.2 Ranking of Casual Factors according to the view of type of employment

Table 4.3 Ranking of effects due to shortage according to the view of the type of

involvement

Table 4.4 Ranking of effects due to shortage according to the view of type of employment

Table 4.5 Ranking of Mitigation Measures to overcome the shortage

Table 4.6 Ranking of Mitigation Measures to overcome the shortage according to the view

of type of employment

Table 4.7 Summary of casual factors according to overall view

Table 4.8 Summary of effects according to overall view

Table 4.9 Summary of mitigation measures according to overall view

Table 4.10 Spearman's Rank of Correlation among involved parties

Table 4.11 Preliminary results of Questionnaire B

Table 4.12 Grand Summary Table

vii

List of abbreviation

ICTAD Institute of Construction Training and Development

IESL Institution of Engineers Sri Lanka

QS Quantity Surveyor

TO Technical Officer

1

CHAPTER ONE

INTRODUCTION

1.1 Sri Lankan Construction Industry

Construction Industry is one of the most booming industries in the 21st century and remains

so with the continuation of the development process especially in the developing countries.

In Sri Lanka, the construction industry plays a major role in economic and physical

development. Further it is the fourth highest sector in Sri Lankan economy after services,

manufacturing and agriculture (IMacs Research & Analytics , 2011). The end of the

island’s ethnic war in 2009 has revived the economic activity and resulted in an

infrastructure building boom (IMacs Research & Analytics , 2011).

According to the Annual Survey of Construction Industries, the total estimated value of

work done by all types of construction activities in Sri Lanka was Rs.78, 320 million in

2010. The highest contribution to this value has been made by the building construction

sector which accounted for 48.0 % of the total value of work done. The major share of the

value of work done on building construction sector (which amounted Rs. 37,623 million)

has come from the private and public sector. Highway construction was the second highest

contributor to the value of works done, amounting to 32.6% of the total value in 2010

(Survey of construction industries, 2011).Aided by robust construction and manufacturing

activities, the industry sector recorded a growth rate of 9.9 percent, raising its share of

GDP to 31.1percent with in the year 2013 (Central Bank of Sri Lanka Annual Report,

2013).

However, there are challenges to overcome with the construction industry of Sri Lanka.

The industry concerns include high raw-material costs, lack of availability of funds,

shortage of skilled workers and frequent changes in regulations, particularly in

development control and approval processes (IMacs Research & Analytics , 2011).

As of 2009, the direct employment in the construction industry was 562,000 persons. This

included four categories of employees: professional, technical, crafts, and machine

operators. Almost 97 percent of total persons employed were males with 75 percent falling

2

in the 25-45 age-group. 52 per cent were with experience of less than five years (IMacs

Research & Analytics, 2011).

There is an excess demand in the job categories of craft and related trade workers,

elementary occupations, and plant and machinery operators and assemblers (Karunathilake,

2006). Hence, it is clear that there is a huge shortage with the skills related to the

construction industry of Sri Lanka.

1.2 Objectives of the Study

The specific objectives of the study are as follows;

To investigate extent of the skill labour shortage in Sri Lanka.

To investigate causes for the shortage of skilled labour in construction industry of Sri

Lanka.

To find out the consequent effects due to the shortage of skilled labour.

To propose suitable mitigation methods to overcome the shortage of skilled labour.

1.2 Scope of the Study

Sri Lankan construction industry can be categorized under building construction, highway

construction, bridge construction, water supply & drainage, irrigation & land drainage,

dredging & reclamation and other constructions (Survey of construction industries, 2011).

However the scope of this study is limited only for the building construction, highway

construction works and water supply and drainage works, considering availability of time

for the study. Data were collected from both government and private sector organizations

including client, contractor and consultant, three parties.

1.3 Significance of the Study

A standard civil engineering construction project is expected to meet the requirements of

cost, time and quality of the client, which are to a significant extend rely on performance of

involved workforce. The workforce performance mainly depends on their acquired training

or skills. Though the many past researchers identified the shortage of skilled labour as a

key factor which adversely affects the construction industry in both locally as well as

3

internationally, there are only few studies done to analyze this situation to come up with

effective mitigation measures. Besides many researches have been done on building

construction industry, gender factor, social factors and labour feedback had not been

investigated. Thus, this research is an attempt to cover the short comings of the past studies

and to support the Sri Lankan economy. Therefore, the study on “shortage of skilled

labour in construction industry of Sri Lanka” is a very timely and unavoidable research

topic to the present context of Sri Lanka.

4

CHAPTER TWO

LITERATURE REVIEW

2.1 Nayanthara De Silva, Rajakaruna R. W. D. W. C. A. B., and Bandara K. A. T. N.

“Challenges faced by the construction industry in Sri Lanka: perspective of clients

and contractors”

This paper presented about findings of a research which was carried out to identify

challenges face by the Sri Lankan construction industry and effective motives to overcome

such aspects. The survey sample was selected randomly and the sample size was 40. An

industry wide questionnaire was developed. A seven-point “likert” scale was used to record

the response of respondents. The questionnaire survey was started from a pilot survey. The

improved version of the questionnaire was distributed among the selected group. Hand

delivery was used to deliver and collect the questionnaires to increase the rate of return.

2.2 Jayawardena. H.K., Senevirathne. K. and Jayasena. H.S. “Skilled Workforce in

Sri Lankan Construction Industry: Production vs. Acceptance”

This research was undertaken to unearth the answer to the research question of “how the

skilled labour production could gain acceptance in the Sri Lankan construction industry”.

Desk research was carried out to find training courses available for the construction trades.

A questionnaire survey was conducted among 77 recruitment officers in medium to large

size contracting firms and 34 subcontractors - in six distinct trades.

2.3 Jayawardana .A.K.W. and Gunawardana. N.D. “labour market issues of

Managerial and Supervisory personnel in the construction industry” (A case study in

Sri Lanka)

In this study two types of questionnaire were used for their survey and data collection as

Institutional Questionnaire among contractors, consultants and clients and Individual

Questionnaire survey among administrators, managers, professionals, technicians and

supervisors. Survey sample was comprised with 107 contractors listed in ICTAD.A postal

questionnaire was used and paid envelops were attached with the questionnaire. The

5

response rate was 40%. In this research data processing was carried out manually as well as

using the computer software such as excel spread sheet package.

2.4 Praveen.R, Niththiyananthan.T, Kanarajan.S “Understanding and Mitigating the

Effects of Shortage of Skilled Labour in the Construction Industry of Sri Lanka”

The objectives of this study were to identify the causes for the shortage of skilled labour in

the Sri Lankan construction industry, the resulting effects due to the shortage and to come

up with effective mitigation measures. In this research the “Significance Index” was used

to rank causes and effects and the “Importance Index” was used to find the important

mitigation measures. Agreements between different parties were compared using

Spearman’s rank correlation coefficient method. This study revealed that the most

significant causal factor for skilled labour shortage is “inadequate number of trained

personne” and resulting effect is “time over-run” of construction project. This study also

revealed that “Increasing the wages” as the most important mitigation measure to

overcome this problem.

2.5 Samarakoon. S.M.S. “Causes and effects in medium scale building construction in

Sri Lanka”

In this research, a questionnaire survey was used among the construction industry in Sri

Lanka. The related factors were identified using the findings of previous researches and

interviewing the professionals working in medium scale building projects. A pilot survey

was carried out among 10 professionals working in related field. The sample was selected

according to snowball sampling method. The questionnaire was distributed using email,

hand and post.

2.6 MacKenzie.S , Kilpatrick. A. R. & Akintoye. A “UK construction skills shortage

response strategies and an analysis of industry perceptions”

This paper reveals that the construction industry is heavily dependent on the adequate

supply of a skilled labour force. The perception of the construction industry to the skills

shortage response strategies identified was investigated through a one-page postal

6

questionnaire survey sent to 130 construction organizations. The response rate was

considered high compared with the norm of 20–30% for most postal questionnaire survey.

The respondents were asked to rank responses on a 6-point Likert scale. Additionally, they

were asked to indicate the order of preference for their response, and to rank their preferred

solutions for the industry. Finally it concludes as follows. “For long term training plans to

be successful the industry must ensure that there is an adequate supply of people entering

and encouraged to remain in the industry.”

2.7 Sadi A. Assaf , Sadiq Al-Hejji “Causes of delay in large construction projects”

A survey on time performance of different types of construction projects in Saudi Arabia

was conducted to determine the causes of delay and their importance according to each of

the project participants, i.e., the owner, consultant and the contractor. The field survey

conducted included 23 contractors, 19 consultants, and 15 owners.

Data were gathered through a questionnaire.

Frequency index: A formula is used to rank causes of delay based on frequency of

occurrence as identified by the participants

Frequency Index (F.I.) %= a(n/N)* 100/4

Where; a is the constant expressing weighting given to each response (ranges from 1 for

rarely up to 4 for always), n is the frequency of the responses, and N is total number of

responses.

Severity index: A formula is used to rank causes of delay based on severity as indicated by

the participants.

Severity Index (S.I.)= a(n/N)*100/4

where a is the constant expressing weighting given to each response (ranges from I for

little up to 4 for severe), n is the frequency of the responses, and N is total number of

responses.

Importance index: The importance index of each cause is calculated as a function of both

frequency and severity indices, as follows:

Importance Index (IMP.I.)%= (F.I.% * S.I %)/100

The Spearman’s rank correlation coefficient r is used to measure and compare the

association between the rankings of two parties for a single cause of delay, while ignoring

the ranking of the third party.

7

CHAPTER THREE

MATERIALS AND METHODS

3.1 Survey Method –Questionnaire Survey

From the Literature Review a methodology was adopted for the study on “Shortage of

Skilled Labour in Construction Industry of Sri Lanka”. The methodology of collecting

data and analyzing them are discussed below.

Questionnaire survey was the main method of collecting data. Two types of

questionnaires were prepared, one targeting administrative and professional level such as

managers, engineers, architects and quantity surveyors. This questionnaire was

a quantitative one which was filled by them. Most of the questionnaires were sent by post

while email and manual methods (by hand) were also used whenever it wass appropriate.

The other questionnaire was a qualitative questionnaire targeting the labour. Unlike the

previous questionnaire this questionnaire was filled by ourselves i n most cases after

having face to face interviews with the labourers.

A sample size of 75 was selected (in the previous studies this figure is between 25 and

147) and a response rate of 40% is expected which is the average response rate of

previous studies. Altogether 150 questionnaires were sent. Both the snowball sampling

and the random sampling methods were adopted in selecting the sample size. For the

questionnaire survey the contact details of the relevant personnel were obtained from the

professional bodies like IESL, Institution of Architects and Institution of Quantity

Surveyors etc.

A pilot survey was conducted before sending the final questionnaire targeting 10 key

persons from the industry in order to get their feedback to fine tune the

questionnaire. A questionnaire feedback form was attached to get their feedback. The

questionnaires were prepared covering the following aspects and key areas in order to get

a clear response and to make the analysis easier and more effective.

Questionnaire A-Targeting Administration and Professionals

Background Information

Information about the organization

Information about the respondent

8

02. Identification of the reasons for a shortage of skilled labour

03. Identification of the consequences of the shortage of skilled labour

04. Determination of mitigation measures

05. Conclusion.

Questionnaire B- Targeting Labours

01. Basic personal details

02. Type of job and work experience

03. Job satisfaction

04. Training and educational qualifications

05. Physiological aspects of the job

06. Future Plans with the job

In order to obtain a high response rate confidentiality was kept at its maximum and was

avoided asking for private details. A covering letter was attached with the questionnaires

in order to give an idea on the nature of the project expecting a high response rate.

3.2 Analytical Method

In order to calculate the severity and the importance of the consequences of the shortage

of skilled labour Importance Index and Severity Index were calculated. Relative

Importance Index were calculated from the above two indices in order to rank the causes

and the effects.

In order to calculate the frequency of occurrence of certain events, frequency index was

calculated. Importance Index was calculated to rank the importance of mitigation

measures.

The statistical methods adopted to analyze the data are as follows.

3.2.1 Frequency Index

Frequency Index was used to determine the frequency of occurrence of a certain event.

Frequency of Occurrence

1-Rarely

2-Sometimes

9

3-Often

4-Always

Frequency index = a (n/N)*100/4

a-constant for weight given by each respondent

n-frequency of occurrence

N-Total number of response

3.2.2 Severity Index

Severity Index was used to rank the factors according to the severity.

Degree of Severity

1-Little

2-Moderate

3-Great

4-Extreme

Severity index= a (n/N)*100/4

a-constant for weight given by each respondent

n-frequency of occurrence

N-Total number of response

3.2.3 Relative Importance Index

This index was used to rank the factors in ascending order.

Relative Importance Index (RII) = (FIxSI)/100

3.2.4 Spearman’s Rank Correlation

Spearman Rank Correlation was used to determine whether there is any correlation

between two factors.

di = xi-yi (Difference between the ranks)

n-size of the sample

3.2.5 SPSS (Statistical Package for the Social Sciences)

This is a software package developed to analyze the data of social surveys. This software

was used to find correlations among certain factors.

= 1 −6𝑑𝑖^2

𝑛(𝑛2 − 1)

10

CHAPTER FOUR

RESULTS AND DISCUSSION

4.1 Results of Questionnaire A

4.1.1 General Characteristics of Respondents

Two questionnaire surveys were conducted, first one targeting the Engineers, Architects,

QSs and TOs and the second one targeting skilled labour.

4.1.2 Respondents of Questionnaire Survey 1

150 questionnaires of the first type were sent among professional engineers, architects, QS

and TOs out of which 71 responds were obtained with a respond percentage of 48%. The

distribution of the respondents by type of employment, involvement, category and ICTAD

classification are as follows.

Fig.4.1 Distribution by Employment Fig.4.2 Distribution by Involvement

11

4.2 Findings of Questionnaire Survey-01

4.2.1Ranking of Casual Factors Causing a Shortage of Skilled Labour

Frequency Index and Severity Index were calculated for each and every factor mentioned

in the questionnaire. By multiplying both these indices Relative Important Index was

calculated. Based on Relative Important Index casual factors were ranked and the

summarized results of each category are tabulated as follows.

Table 4.1. Ranking of Casual Factors according to the view of involved parties

No

.

Casual Factors Client Consultant Contractor

RII Ran

k

RII Ran

k

RII Rank

1 Inadequate supply of skilled labour

from training institutes

54.81 4 52.07 1 62.3

9

2

2 Inadequacy of skills in the available

labour force

60.65 2 38.20 4.5 63.1

1

1

3 People's unwillingness to engage in

construction industry as labours

47.60 6 38.20 4.5 33.6

7

6

4 Management policy of the

organizations (Can manage with lesser

no. of skilled labours and a higher no.

skilled labour)

40.24 7 29.05 7 28.6

7

7

5 After training shifting their careers to

another field

50.30 5 36.27 6 38.9

9

5

6 Contractors do not provide training for

employees

57.69 3 39.77 3 49.0

8

4

7 Seeking foreign employment with

higher salary

71.56 1 44.90 2 49.1

1

3

Fig.4.3 Distribution by Category Fig.4.4 Distribution by ICTAD Grade

12

Table 4.1. Ranking of Casual Factors according to the view of type of employment

No

. Casual Factors

Engineer Architect QS TO

RII Rank RII Rank RII Rank RII Rank

1 Inadequate supply of skilled

labour from training institutes 48.66 1 87.89 1 56.25 3 57.95 3

2 Inadequacy of skills in the

available labour force 43.16 4 66.02 2 76.53 1 64.46 1

3

People's unwillingness to

engage in construction

industry as labourers

33.40 6 35.16 5.5 48.21 6 43.39 4

4

Management policy of the

organizations (Can manage

with lesser no. of skilled

labours and a higher no.

skilled labour)

30.83 7 14.06 7 34.69 7 35.95 6

5 After training shifting their

careers to another field 35.85 5 35.16 5.5 50.89 5 33.26 7

6 Contractors do not provide

training for employees 43.54 3 56.25 3.5 61.73 2 42.98 5

7 Seeking foreign employment

with higher salary 44.31 2 56.25 3.5 51.02 4 59.71 2

4.2.2 Ranking the effects of Shortage of Skilled Labour

Frequency Index and Severity Index were calculated for each and every factor mentioned

in the questionnaire. By multiplying both these indices Relative Important Index was

calculated. Based on Relative Important Index effects due to the shortage were ranked and

the summarized results of each category are tabulated as follows.

Table 4.2. Ranking of effects due to shortage according to the view of the type of

involvement

No

.

Effects Client Consultant Contractor

RII Rank RII Rank RII Rank

1 Delay in project duration/Slow

construction

68.34 1 53.64 1 55.56 3

2 Inability to understand drawings 47.89 4 44.16 6 38.17 10

3 Inability to manage unforeseen site

conditions

45.27 6 36.70 10 51.66 6

4 Poor Quality of work 62.13 2 45.69 3 54.79 4

5 Errors during constructions 46.60 5 38.27 9 52.23 5

6 Improper construction method 58.84 3 41.14 7 49.68 7

7 Less labour productivity 42.71 7.5 52.07 2 60.99 1

8 Material Wastage 42.71 7.5 44.94 4.5 56.92 2

9 Additional cost of removing bad works 35.39 9 39.01 8 46.60 8

10 Safety issues 34.39 10 44.94 4.5 41.20 9

13

Table 3.4. Ranking of effects due to shortage according to the view of type of employment

No

. Effects

Engineer Architect QS TO

RII Rank RII Rank RII Rank RII Rank

1

Delay in project

duration/Slow

construction

52.37 1 60.94 2 56.25 1 57.95 1

2 Inability to understand

drawings 42.02 8 39.06 9.5 45.92 7 51.24 2

3

Inability to manage

unforeseen site

conditions

45.48 5 51.56 3 45.92 7 34.71 9

4 Poor Quality of work 49.01 4 46.88 6 45.92 7 50.93 3

5 Errors during

constructions 43.11 6 42.19 7.5 48.47 5 40.29 6

6 Improper construction

method 41.92 9 42.19 7.5 53.32 3.5 48.04 4

7 Less labour productivity 50.72 3 71.09 1 53.32 3.5 43.44 5

8 Material Wastage 51.94 2 47.27 4.5 41.20 9 36.26 8

9 Additional cost of

removing bad works 36.87 10 39.06 9.5 55.74 2 39.05 7

10 Safety issues 42.37 7 47.27 4.5 18.24 10 32.23 10

4.2.3 Ranking the mitigation measures to overcome the shortage

Important Index was calculated to rank the mitigation measures to overcome the shortage

of skilled labour.

Table 4.4 Ranking of Mitigation Measures to overcome the shortage

No. Mitigation Measures Client Consultant Contractor

RII Rank RII Rank RII Rank

1 Increase the supply of skilled labour 82.69 4.5 85.23 5.5 85.71 2

2

Improve the skills of the labours at

the company level

through proper in house training

78.85 6 75.00 14 81.25 5

3 Increase salary/ Wages 92.31 1 84.09 7 76.79 8

4 Establishment of minimum salary

level 59.62 14 76.14 13 72.32 10.5

5 Arranging seminar/training

programmes through ICTAD/IESL 90.38 2.5 97.73 1 83.93 3

6 Creating a healthy and safe working

environment 75.00 7 82.95 8 92.86 1

14

7

Assess the level of skills of labourers

and provide a grading

system to motivate them mentally to

acquire skills

71.15 8.5 93.18 2 81.25 5

8

Conduct annual surveys on trends of

labour market, understand the

competencies required by the labours

in current industry and restructure the

format of training programmes

accordingly

69.23 10.5 85.23 5.5 75.00 9

9

Better coordination and

communication between training

institutes

67.31 12 79.55 12 81.25 5

10

Conduct awareness programmes for

contractors to recruit sufficient

number of skilled labour illustrating

the advantages associated with.

82.69 4.5 87.50 4 72.32 10.5

11

Provide a proper certificate of service

at the end of the

end of termination of service

evaluating the level of

competencies such that they can

present it somewhere else

as a valid certificate about his skills

90.38 2.5 89.77 3 77.68 7

12

Conduct annual survey to monitor the

demand and supply of

skilled labour

69.23 10.5 80.68 10 69.64 12

13

Making regulations on the minimum

number of skilled labour

and their competencies employed in a

construction project based on the size

of the project

65.38 13 80.68 10 59.82 14

14

Defining a minimum ratio of skilled

labour to unskilled labour depending

on the nature of the work

71.15 8.5 80.68 10 64.29 13

15

Table 4.5. Ranking of Mitigation Measures to overcome the shortage according to the view

of type of employment

No. Mitigation Measures Engineer Architect QS TO

RII Rank RII Rank RII Rank RII Rank

1 Increase the supply of

skilled labour 81.98 2 93.75 3 85.71 5.5 86.36 3

2

Improve the skills of the

labours at the company

level through proper in

house training

74.42 7.5 81.25 7 89.29 3 75.00 13

3 Increase salary/ Wages 75.58 6 93.75 3 92.86 1 84.09 4.5

4 Establishment of

minimum salary level 68.02 12 81.25 7 75.00 10 79.55 9

5

Arranging

seminar/training

programmes through

ICTAD/IESL

83.14 1 100.00 1 89.29 3 95.45 1

6

Creating a healthy and

safe working

environment

80.23 3.5 81.25 7 89.29 3 90.91 2

7

Assess the level of skills

of Labourers and provide

a grading

system to motivate them

mentally to acquire skills

79.07 5 81.25 7 85.71 5.5 77.27 11.5

8

Conduct annual surveys

on trends of labour

market,

understand the

competencies required by

the labours in

current industry and

restructure the format of

training

programmes accordingly

74.42 7.5 68.75 11 78.57 8.5 77.27 11.5

9

Better coordination and

communication between

training

institutes

73.84 9 75.00 10 71.43 12 81.82 6.5

10

Conduct awareness

programmes for

contractors to recruit

sufficient number of

skilled labour illustrating

the advantages associated

69.77 11 81.25 7 78.57 8.5 79.55 9

16

11

Provide a proper

certificate of service at

the end of the

end of termination of

service evaluating the

level of

competencies such that

they can present it

somewhere else

as a valid certificate

about his skills

80.23 3.5 93.75 3 82.14 7 81.82 6.5

12

Conduct annual survey to

monitor the demand and

supply of

skilled labour

73.26 10 62.50 13 57.14 14 79.55 9

13

Making regulations on

the minimum number of

skilled labour

and their competencies

employed in a

construction project

based on the size of the

project

65.12 13.5 62.50 13 71.43 12 72.73 14

14

Defining a minimum

ratio of skilled labour to

unskilled labour

depending on the nature

of the work

65.12 13.5 62.50 13 71.43 12 84.09 4.5

17

4.3 Overview of all the findings

Table 1 to 6 shows the detail analysis of the responds given by each category for each sub

section of the questionnaire. Moreover the responds given were ranked to find out the most

important factors under each sub sections. All those findings were analyzed as a whole in

order to have a general idea about each major issues addressed through the questionnaire.

The overview respond of the respondents are tabulated below against top five ranks.

Table 4.7 Summary of casual factors according to overall view

1 Inadequate supply of skilled labour from training institutes

2 Inadequacy of skills in the available labour force

3 Seeking foreign employment with higher salary

4 Contractors do not provide training for employees

5 After training shifting their careers to another field

Table 4.6. Summary of effects according to overall view

1 Poor Quality of work

2 Delay in project duration/Slow construction

3 Less labour productivity

4 Improper construction method

5 Material Wastage

Table 4.7. Summary of mitigation measures according to overall view

1 Arranging seminar/training programmes through ICTAD/IESL

2 Creating a healthy and safe working environment

3 Increase the supply of skilled labour

4 Provide a proper certificate of service at the end of termination of service

evaluating the level of competencies such that they can present it somewhere else

as a valid certificate about his skills

5 Assess the level of skills of labourers and provide a grading

system to motivate them mentally to acquire skills

18

4.4 Agreement between the parties involved

The total sample of the survey was divided in to several categories. As a whole there is

homogeneity between the responses given by each category in most of the cases. Yet there

were instances where there is a difference between the responses given by two parties. In

order to calculate the homogeneity between the responses among the respondents

Spearman’s Rank od Correlation was calculated. It is a non-parametric test which

compares median rather than the mean.

Table 4.8. Spearman's Rank of Correlation among involved parties

Type Correlation Coefficient

Causes Effects Mitigation Measures

Client vs. Consultant 0.65 0.25 0.59

Client vs. Contractor 0.82 0.18 0.45

Consultant vs. Contractor 0.67 0.51 0.31

Engineer vs. Architect 0.87 0.62 0.79

Engineer vs. QS 0.68 -0.03 0.74

Engineer vs. TO 0.54 0.18 0.55

Architect vs. QS 0.85 0.41 0.80

Architect vs. TO 0.73 0.30 0.53

QS vs. TO 0.61 0.54 0.36

The values obtained by Spearman’s Rank of Correlation falls in between +1 and-1. +1

indicates a strong relationship between the considered two parameters whereas -1 denotes a

strong disagreement between the parameters.

From the above table the highest value obtained is 0.87 which is between the engineer and

architect for the causes and the lowest is -0.03 between engineer and QS for the effects.

Since all the values obtained are positive except in one case it can be concluded that there

is a similarity between the responds given by the respondents inade

19

4.5 Discussion of the results of Questionnaire A

Questionnaire A was conducted on the topic “Shortage of Skilled Labour in Construction

Industry of Sri Lanka”. The questionnaire consisted of four sub sections namely,

I. Background Information

II. Identifying the casual factors causing a shortage

III. Identifying the effects of the shortage

IV. Identifying mitigation measures for the shortage

150 questionnaires were sent and 71 responds were obtained. Respondents were

categorized based on the type of involvement as client, consultant, and contractor.

Moreover the respondents were further categorized according to the type of employment as

engineer, architect, QS and TO.

Collected data was analyzed using Frequency Index, Severity Index, Important Index and

Relative Important Index. According to the analysis inadequacy of supply of skilled labour

from training institutes, poor quality of work and arranging seminars/training programmes

through IESL/ICTAD were identified as the most important casual factor, effect and

mitigation measure for the shortage of skill labour in construction industry of Sri Lanka

Most of the respondents show a similarity among the responds. The correlation between

the respondents from each categories were calculated using Spearman’s Rank of

Correlation. Based on that in most of the cases there are positive agreements among the

parties involved except in one case.

20

21

4.6.2 Results regarding to training and migration analysis

Figure 4.5: Summary of the training analysis

Figure 4.6: Summary of the migration analysis

4.6.3 Grand summary of the Questionnaire

Table 4.12: Grand Summary Table

Item Percentage

01. Gender Male 100%

Female 0%

02. Age Group Bellow 35 Yrs. 42%

Above 35 Yrs. 58%

03. Work Experience

0-5 Years 30%

5-10 Years 42%

More Than 10 Yrs. 28%

04. Satisfaction

Salary 42%

Job 80%

No Of Leaves 100%

Work Load 92%

05. Training Trained Before 42%

Need Further Training 48%

06. Wish To Work In Abroad 54%

07. Wish To Continue The Same Occupation 74%

skill

ed la

bo

urs

in

con

stru

ctio

n in

du

stry

trained - 42%

need further training - 52%

no need - 48%

non trained - 58%

need further training -45%

no need training -55%

skill

ed la

bo

urs

in

con

stru

ctio

nin

du

stry worked in

abroad - 18%

wish to go - 56%

not - 44%

not - 82%

wish to go abroad -54%

not -46%

12

4.6.4. Discussion of the results of Questionnaire B

Total sample size of the labour data analysis is fifty five consisting with fifty skilled

labours and five unskilled labours. Unskilled labours were surveyed to having the basic

idea about their career and analyzed whether this human resource can be converted to the

skilled labour category. According to this sample Female participation for the construction

industry of Sri Lanka is negligible. Majority of the sample is represented by masons while

the lowest is tillers. This result interprets the negative attitude of the young people towards

the construction industry because the majority of the sample represents the elderly people.

But the literacy level of the sample is at a good level.

Most of the skilled labour categories are shown less work experience, i.e.: less than 10 year

experience, except the masons. When considering all the labour categories there are only

28% who has more than 10 year experience. They usually shift their carrier for another

after working 5 years or more. But 74% is hoped to carry out the same occupation for

future. Work experience of the unskilled labour category is almost 100% with less than

five years working experience. Thus, Work experience is a major factor that influence for

the sharpening of skills with in the construction industry.

When we concern about their salary satisfaction, it shows that only 42% is satisfied about

their current wages. Their expected wage is so differed from what they earn. However most

of the surveyed skilled labours are satisfied with their job and working loads. Concrete

workers are the least satisfaction labour category for the above three.

And also most of the Sri Lankan skilled labours are served with their work experience

instead of having formal training. According to this survey, there are only 42% who has a

formal training at current situation and 48% is expected to have further or basic training for

overcome the shortage of skills with in the construction industry. Most of the surveyed

skilled labours arre qualified with the NVQ (Certificate Level) and were trained through

NAITA, Sri Lankan Army, ICTAD, Sri Lankan Youth Service Council and Small Industry

Development Board.

And 54% of the surveyed skilled labours are preferred to work in foreign countries due to

this less wage relative to other countries. So this skills drain is another critical issue

towards the skill shortage.

13

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1.1. Conclusion for Questionnaire A

According to the analysis the lack of supply of training institutes is the main reason for the

shortage of skilled labour in construction industry of Sri Lanka. Apart from that the lack of

skills in the current workforce and skill drain for foreign countries expecting higher

salaries could be identified as casual factors.

Due to the shortage of skilled labour, poor quality of works could be identified as the most

severe effect. Other than that delay in construction and less labour productivity are

identified as the adverse effects of shortage.

5.1.2. Recommendations of Questionnaire A

From the results obtained from the questionnaire arranging seminar/ training through

ICTAD/ IESL is the best recommendation to overcome from the issue. In the meantime

creating a safe and healthy working environment would attract more people to the

construction industry.

Also in order to attract more Labourers salary structure should be restructured. It would be

also useful to prevent skill drain.

Along with that the supply of skilled labour from training institutes too have to be

increased.

14

5.1.2 Conclusion of Questionnaire B

Though the most of the construction sites are full with unskilled labours, the available

skilled labour resource is not sufficient with the demand. The following reasons can be

concluded for the skills shortage within construction industry of Sri Lanka after analyzing

the career and background details of labours.

1. Less wage relative to the other countries

2. Inadequate training

3. Skills drain

4. Less work experience

5. Shifting of the career for another profession

6. Negative social attitude towards the labour industry

7. Wastage of female skills without contributing for the development of country

5.1.2 Recommendations for questionnaire B

It should be mentioned that the labour data analysis study was only limited for the

construction sites at Kandy and Colombo, by considering the time availability for the

study. So it is recommended to carry this study further among some more districts by

increasing the sample size. Hence it will be help to obtain more effective results related to

the whole country.

15

REFFERENCES

1. Central Bank of Sri Lanka Annual Report 2013

Department of Census & Statistics, Sri Lanka

2. Gunawardena. N.D. and Jayawardana. A.K.W. “The training needs of construction

workers in Sri Lanka”

3. IMacs Research & Analytics 2011

4. Jayawardana.A.K.W. and Gunawardana. N.D. “labour market issues of Managerial

and Supervisory personnel in the construction industry” (A case study in Sri Lanka)

5. Jayawardana. A.K.W. and Pandita. H.G.W. “Understanding and mitigating the

factors affecting construction delays”

6. Jayawardena. H.K., Senevirathne. K. and Jayasena. H.S. “Skilled Workforce in Sri

Lankan Construction Industry: Production vs. Acceptance”

7. Karunathilaka. C.P.A. “Trends in Labour Markets and Future Challenges, the

Experience of Sri Lanka2006”

8. KPMG’s 2013 Global Construction Survey

9. MacKenzie.S , Kilpatrick. A. R. & Akintoye. A “UK construction skills shortage

response strategies and an analysis of industry perceptions”

10. Nayanthara De Silva, Rajakaruna R. W. D. W. C. A. B., and Bandara K. A. T. N.

“Challenges faced by the construction industry in Sri Lanka: perspective of clients

and contractors”

11. Praveen.R, Niththiyananthan.T, Kanarajan.S “Understanding and Mitigating the

Effects of Shortage of Skilled Labour in the Construction Industry of Sri Lanka”

12. Sadi A. Assaf , Sadiq Al-Hejji “Causes of delay in large construction projects”

13. Samarakoon. S.M.S. “Causes and effects in medium scale building construction in

Sri Lanka”

14. Survey of Construction Industries 2011

16

APPENDIX

Questionnaire 1- Managerial and Engineer Level

Shortage of Skilled Labour in Construction Industry of Sri Lanka

01. Background Information

a.) About organization

1. ICTAD grade for construction:

2. Company type :

b.) About respondent

Architect E n g i n e e r Q S T O

Likeness of Occurrence Degree of

Severity

1-Rarely 1-Little

2-Sometimes 2-Moderate

3-Often 3-Great

4-Always 4-Extremely

02. Identification of

Casual Factors

Likeliness of

occurrence

Degree of Severity

1 2 3 4 1 2 3 4 1) Inadequate supply of skilled labour from

Training Institutes.

2) Inadequacy of skills in the available

labour force

3) People's unwillingness to engage in

construction industry as labours

4) Management policy of the organization

(Can manage with lesser no. of skilled

labour and a higher no. of unskilled labour)

17

5) After training shifting their carrier to another

field

6) Contractors do not provide training for

employees

7) Seeking foreign employment with higher

salary

03. Identification of effects

Likeliness of

occurrence

Degree of Severity

1 2 3 4 1 2 3 4

1) Delay in project duration/ slow construction

2) Inability to understand drawing

3) Inability to manage unforeseen site condition

4) Poor quality of work

5) Errors during construction

6) Improper construction method

7) Less labour productivity

8) Material usage

9) Additional cost of removing bad work

10) Safety issues

04. Identification of mitigation measures

For the following section please use this system to indicate

their importance

Importance Index

1-Not Important 3-Important

2-Less Important 4-More Important

18

Important Index

1 2 3 4

1) Increase the supply of skilled labour

2) Improve the skills of the labours at the company level through

proper in house training

3) Increase the salary/wage

4) Establishment of a minimum salary level

5) Arranging training programmes/seminars through ICTAD/ IESL

ICTAD/IESL

6) Creating a healthy and safety working environment

7) Asses the level of skills of labours and provide a grading system to

motivate them mentally to acquire skills

a grading system to motivate them mentally to acquire skills.

8) Conduct annual survey on trends of labour market,

understand the competencies required by the labour

in current industry and restructure the format of training

programmes accordingly.

9) Better coordination and communication between training

institutes and the industry

10) Conduct awareness programmes for contractors to recruit

sufficient number of skilled labour illustrating the advantages

associate with

11) Provide a proper certificate of service at the end of termination

of service evaluating the level of competencies such that they

can present it somewhere else as a valid certificate about his

skills

12) Conduct annual survey to monitor the demand and supply of

skilled labour

13) Making regulations on the minimum number of skilled labour

and their competencies employed in a construction project

based on the size of the project

14) Defining a minimum ratio of skilled labour to unskilled labour depending on the nature of work

19

Questionnaire 2- For Labours

Shortage of Skilled Labour in Construction industry of Sri Lanka

1. What is your age?

.................................................................................................................

2. What is your gender? Male Female

3. From where are you?

.................................................................................................................

4. Social status : Married Single

5. What is your level of education?

o-8 years of school

upto GCE O/L Examination

upto GCE A/L

Examination

passed GCE A/L

Examination

6. What is your present category of

work?.......................................................................................

7. Have you worked in other categories of work

previously?..........................................................

If yes what are

they?.....................................................................................................................

8. For how long have you been working in your present area of

work?..........................................

9. How many companies or projects you have worked

before?........................................................

10. If you have worked for any other company or project what is the reason for

shifting the Company?

Project was finished and there were no other

vacancies in that company after thatlack of

wages

Too much work load

poor working or living

conditions

shortage of leaves or

holidays

other

20

specify………………………………………………………………………………………………

………….......

11. Are you satisfied with your job? Yes No

12. If no what is the main reason?

Salary is not enogh

Poor safety/working conditions

Too much work load

Less number of

holidays

Lack of skills

Other

Specify…………………………………………………………………………………………

……............

13. What is your present

salory?...............................................................................................................

14. Are you satisfied with your salary? Yes No

15. If no how much of a wage increment you

expect?..............................................................................

16. Are you satisfied with your work load? Yes No

17. Are you satisfied with the number of leaves you have? Yes No

18. Do you wish to continue with the present category of the work in future? Yes No

19. If no

why?........................................................................................................................................

....

20. If no what is the job that you wish to do in

future…………………………………………………

21. Have you received any formal training in your particular area of work? Yes No

22. If yes what is the level of training you have recived?

Diploma

National vocational qualification

Specify the

level………………………………………………………………………………………………

Certificate level

Other

Specify…………………………………………………………………………………

……………

21

23. What is your training institute?

Specify………………………………………………………………………………………………………

………………………………………………………………………………………………………………..

24. Do you think that the training you had is sufficient to meet the requirement of your

job? Yes No

25. Do you think a further training is necessary? Yes No

26. Do you think it is possible to have a further training while working? Yes No

27. Have you worked in abroad before? Yes No

28. If yes why do you come back to Sri

Lanka?........................................................................................

29. If no do you wish to go abroad in future? Yes No

30. If yes

why?........................................................................................................................................

..

22

FEEDBACK FORM FOR PILOT SURVEY

SHORTAGE OF SKILLED LABOUR IN CONSTRCTION INDUSTRY OF SRI LANKA

After going through the preliminary survey please fill the feedback form in order to assist

us in fine tuning the Questionnaire which expected to be used in the final survey of the

project.

1. How long did it take to complete the questionnaire? Is it too long?

...................................................................................................................................................

2. Were the questions clear and adequate?

…………………………………………………………………………………………………………………………………………….

3. Were there any unclear questions? If so please indicate them and give your ideas on

how they can be modified?

…………………………………………………………………………………………………………………………………………….

4. Did you reject answering any questions? If so please indicate them and give us an

appropriate method to improve them.

…………………………………………………………………………………………………………………………………………….

5. Were there any inappropriate questions which have to be removed? If so indicate

them.

…………………………………………………………………………………………………………………………………………….

6. Was the layout clear and attractive? If not how shall it be improved?

…………………………………………………………………………………………………………………………………………….

7. Was the format clear and appropriate? If not, how shall it be modified?

…………………………………………………………………………………………………………………………………………….

8. Do you think any more questions should be included in the questionnaire? If so

what are they?

...................................................................................................................................................

9. Other comments

………………………………………………………………………………………

……………………………………………………………………………………....

Thank You!