Assessment of the challenges associated with turnkey construction projects: a case of selected Construction Stakeholders in Tanzania

This study aimed assessing the challenges associated with Turnkey construction project. The case study was the construction companies in Tanzania. Both qualitative and quantitative research approaches were used in this research study. The research was conducted in Dar es Salaam City and respondents were the engineers who were involved in construction works. This study involved 81 engineers from rael estate investment firms, consulting engineering and Construction firms, who were selected out of a population of 2698 by using purposive sampling. Primary data were collected through structured questionnaires while the secondary data were obtained from different related literature reviews. The researcher used statistical software, namely Microsoft office Excel 2007 spreadsheet and Microsoft word as tools of analyzing research data. The findings have shown that, there are various Turnkey construction projects in Tanzania although they are few compared to the other construction methods and the reason being poor technology of local contractors. A part from that the method needs large sum of capital of contractor and lack of knowledge of the clients. The challenges revealed were large contract sum, lack of competition, lack of owners input into the design, public procurement regulations of 2013 as amended in 2016, risk of meeting the appropriate design, and risk of increase of material cost. It is concluded from the study that the Kinyerezi Power Project finally became the most important case study as the data collected from them brought a lot about the challenges, benefits as well as reasons to why having few Turnkey construction projects in Tanzania with a little figure of the Turnkey Construction projects in Tanzania was due of the various factors that include technological factors. It is therefore recommended that there is a need for public procurement regulations of 2013 as amended in 2016 to be revised in order to make more emphasis regarding the method, the Government to make policies that will encourage the use of the method and finally the responsive stakeholders to train their people about the benefits of the method.