Influence of Social and Economic Factors on Construction Project Performance in Pakistan

Abstract

The performance of a building project is a key determinant of its ultimate success. The failure of a construction project can be attributed to a variety of issues. Among these criteria, success and long-term sustainability have been identified as crucial. It has been established that social and economic considerations play a considerable effect in project completion. In Pakistani construction projects, however, there is a lack of a systematic framework for measuring the impact of social and economic elements on project success. It is, therefore, important to determine social and economic elements and their impact on project performance measures. Initially, 29 experts representing clients, consultants, and contractors were interviewed, and the factors relevant to Pakistan were shortlisted based on interviews. SPSS software was used to analyze the data, and the results were presented in tables and graphs. Safety, land value, health, employment, and education were the top five social factors, while the top five economic factors were productivity, employment, transportation, market access, and local market. As project performance indicators, time, customer satisfaction, cost, health and safety, and quality were identified. Based on these characteristics, a questionnaire was designed, and data from 154 valid replies were gathered and analyzed using the linear multiple regression approach. These equations have been constructed to examine the impact of social and economic factors on time, cost, health and safety, and quality. Using the findings of this research, we can better understand how social and economic aspects affect project outcomes and raise industry standards. These resources will be useful to the project manager in formulating a sound project management strategy and enhancing project results.

1. Introduction

Construction work is a social process [1], and the development of any country moves when construction works move [2]. The construction industry is influenced by social, economic, and other factors, which are very important because the present and future of any society are built on three pillars: economic, environmental, and social [3]. Social changes play a significant role in developing employment and aligning the path to prosperity. In general, social effects refer to how various phenomena affect people and how people are used to doing things [4].

As the construction industry is so important in meeting human needs, development efforts must not be overlooked. Furthermore, almost everyone in today’s mainstream culture associates the built environment with something similar. Construction activities are critical to achieving the socioeconomic development goal of providing lodging, asylum, and employment. By ensuring that projects are finished on schedule, within budget, and in accordance with long-term goals, socioeconomic variables aim to improve project delivery. There are numerous stakeholders in the construction industry, and it is intertwined with many different geographic areas. During good times for the economy, it grows more quickly, as it is a cyclical industry [5]. The state of the economy has a noticeable effect on the building sector [6]. Many firms rely on development loans because of the importance of the general economy and the resources needed to accomplish construction projects. This necessitates the completion of the construction projects on time and within budget. The performance of any construction project is critical to its success.

Performance has always been evaluated primarily from a monetary point of view. Cost, duration, and quality are all important factors in a project’s evaluation [7]. Numerous additional factors affect construction project performance, including customer satisfaction, client transitions, market efficiency, and health and safety. These measures are no longer a reliable way to track progress. One of the most significant criteria for success is how well one performs.

Pakistan’s construction industry has become one of the country’s key economic pillars. Construction development work in Pakistan is increasing at an exponential rate due to increased urbanization. However, these projects are plagued by poor performance, particularly in terms of cost and time, as well as poor quality. Poor performance can lead to the failure of construction projects. Design, social, and economic factors all have an impact on performance. Unfortunately, there is a lack of literature available on the social and economic factors affecting Pakistan’s construction industry. As a result, this research work is carried out. The objectives of this study include the identification of social and economic factors affecting the project performance of Pakistan’s construction industry. Furthermore, regression models are developed to assess the impact of social and economic factors on project performance indicators. This paper is divided into several sections: the introduction, literature review, research methodology, results and discussion, and conclusion.

2. Literature Review

A construction project’s ultimate goal is the same as any other endeavor: to be successful. The success of building construction is a major concern for governments, engineers, and other stakeholders. To complete construction projects, accurate and reliable forecasts of project performance are required [8]. Building projects are only as good as their management, preparation, and execution [9]. In the end, a project’s success is determined by how well it performs [10]. Since construction activities are highly dependent on project performance [11], it is no surprise that both public and private clients are concerned about it [12].

There are two types of problems with performance: improbable targets and genuine causes. As a result of the current economic climate, construction companies must examine their performance to ensure their long-term viability [13]. An evaluation standard for projects varies from one to the next. Numerous factors could affect the project’s global market performance, such as limited resources, unskilled labor, a limited budget, and intense construction industry competition [14].

Building projects can be compared to living things. As a result, they call for the cooperation and interdependence of many different parties, each with their objectives, and there may be conflicts of interest among and within groups [15]. To improve a community’s quality of life and meet people’s needs, the building concept must take into account a wide range of social, environmental, and economic concerns. Well-planned construction projects can revitalize a neighborhood. As a result, entrepreneurship and the establishment of new businesses aid in the reduction of unemployment [16]. Economic and social factors such as income, education, employment, and neighborhood safety can all have an impact on one’s ability to make healthy choices. Employment, for example, provides income that influences housing, education, and other decisions [17]. The state of the economy has a noticeable impact on the construction industry [6]. Due to the ambiguity of the definition of project success and the differing perspectives of participants on this concept, it may be difficult to determine whether a project is successful or not. Any construction project fails due to a performance issue, which is caused by a variety of factors [18]. To evaluate its performance, a construction company must understand various performance measurement factors [6]. Although construction is critical to development, several issues may need to be addressed to improve performance. This is exacerbated by the nature of work, which includes high fragmentation, uncertainty, low efficiency, poor quality, and a lack of standards [1]. From the beginning to the end, it includes a wide range of activities and participants [19].

2.1. Social Factors

The significance of social factors in the completion of the project cannot be overstated. Social factors may impede construction by preventing clearances and the movement of men, materials, and equipment. In the case of public projects, land acquisition and corporation are critical [20]. Construction demand is inherently volatile. Construction outputs are notoriously volatile. The construction labor market is characterized by a scarcity of trained and qualified workers. In addition, failure to recruit qualified and trained construction workers has a significant impact on performance [21].

The construction industry is critical to society’s advancement and achievement of its goals [22]. Working in the construction industry is critical to achieving and expanding public goals [6]. Social performance refers to the extent to which construction projects have met the needs of current and future generations [22]. Because of this, it is critical to include participants who represent those who will be affected by the project on a direct or indirect basis and who have the power to influence it positively or negatively.

End-users and the surrounding environment must be taken into account when it comes to social issues such as land acquisition and disposal, community resettlement, and health threats [23]. To improve transparency and accountability, many governments around the world are gradually encouraging the participation of interested individuals, parties, and organizations to participate in public infrastructure and megaprojects. Residents’ rights should be respected by developers of construction projects who do not cause problems during construction or demolition or restrict access to their homes [16]. Several researchers, as discussed below, have identified various social factors influencing the performance of construction projects.

Accidents: Accidents are uncontrollable events that can occur unexpectedly and without warning, causing damage and injuries [24]. Accidents are common and occur at a higher rate in the construction industry than in any other industry [25]. The most serious consequences of on-site accidents are project completion on time, cost overruns, and a lack of trust among customers [24].

Shopping Tourism and Recreation: Tourism is an important part of modern society. It has the potential to revitalize the physical environment by assisting in the development of infrastructure and the provision of recreational facilities for residents. It has enormous potential for accelerating and advancing construction activities in a sustainable manner. These activities include road and airport development, as well as utility improvements. Furthermore, tourism has the potential to influence public policies and provide the necessary capital for infrastructure upgrades [26]. At the same time, leisure is regarded as the primary tool for attracting customers. Clients want to shop while having fun, so they choose complexes that provide recreational services [27].

Traffic: The effects of traffic and construction on each other are unavoidable. Construction progress is slowed by heavy traffic, changes in circulation patterns, and reduced speed. Traffic delays impact construction progress time, as well as project cost and quality. Heavy traffic increases the likelihood of an accident, and a lack of materials and equipment results in project failure. Furthermore, traffic can result in a shift in scope, a decrease in profit, and a loss of customer satisfaction [28].

Transportation: A better transportation system can improve logistical efficiency, reduce material costs to and from construction sites, and, most importantly, aid in project time, schedule, and quality management. A good transportation system shortens project time, improves project schedules, and improves project quality. A good transportation system boosts project efficiency while closing the gap between expectation and execution. This allows materials to be transported just-in-time as needed, keeping the site clear of obstacles and, as a result, creating a much safer environment [29].

Health and safety: Health and safety are intertwined with the construction site and should be implemented from the start. When health and safety measures are not implemented properly, accidents occur, and projects may lose a significant amount of work hours and efficiency. If health and safety regulations are not followed, injuries and illness are likely to occur, increasing work hours and affecting profitability and production.

Migration: Construction necessitates migration. It refers to people moving from one location to another. Migration is an important part of development projects, with an estimated 15 million people forced to flee their homes each year to make way for infrastructure construction [30]. It lessens the negative effects of a volatile labor market. Migrants increase demand for existing services, structures, and infrastructure. In terms of construction, the increased economic activity caused by a larger population will drive the growth of buildings and infrastructure [31].

Land Value: When demand exceeds supply, the value of land rises [32]. The cost of construction is directly related to the value of the land [33]. According to [34], land value attracts various types of building and infrastructure projects. The value of a property is primarily determined by its location, and transporting resources to such a location may necessitate additional time.

There are several other social factors that can affect the performance of a construction project. A comprehensive literature review was carried out to identify the common social factors, as summarized in

Table 1. Social Factors Affecting the Project Performance.

Social Factors	Sources
Accident	[35,36,37]
Shopping, Tourism, and Leisure	[36,38,39]
Traffic	[38,39,40]
Transportation	[38,39,40,41,42]
Health	[1,10,13,16,35,36,38,39]
Safety	[1,10,13,14,16,35,36,37,38,39]
Migration	[38,40]
Land Value	[35,38,39]
Parking	[43]
Local Issues	[41,42,44]
Education	[1,36,39]
Privacy	[16]
Crime	[36,39,40]
Community Interaction	[10,14,16,37,39,41,42,45]
Accessibility and Connectivity	[1,16,35,38,39,40,41,42,44]
Employment	[16,22,42]

.

2.2. Economic Factors

Construction production demand is expected to rise as a result of increased economic activity [46]. As a result, economic activity has shifted from developed to developing countries, where it is now more prevalent [21]. Constructing a new home is highly dependent on a healthy economy [6,11]. There are many economic factors that affect the implementation of construction projects [10,47]. Organizations everywhere are being compelled to keep a close eye on and make adjustments to their performance as a result of economic expansion, fierce competition, and the rapid evolution of the development sector [48].

Historically, the most common criteria for measuring construction performance were economic performance areas such as profit, income, and return on investment [14]. Unfortunately, the building sector in developing countries is the most neglected and chaotic, and it is overly taxed because it is considered a luxury item. Banks provide no financial assistance for construction activities, and no constructive policy is ever developed by the bank for these activities [2]. Economic factors include interest rates, taxes, laws and legislation, jobs, and political activities [46]. Inadequate budgetary and time management is to blame for poor performance [11]. The nature and availability of resources related to technological, economic, and social aspects frequently influence the construction budget [49].

A substantial amount of research has been conducted to investigate the factors that influence the performance of construction projects. Education is a critical tool in development [46]. Education enables people to grow and develop, which leads to economic growth, and skill development leads to increased employment and economic growth. Construction industrialists must be economically competitive in the market due to advancements in technology and techniques. It is very important to identify the economic factors for achieving adequate performance of construction works, especially in underdeveloped or developing countries [16]. The literature review has pointed out several economic factors which impact project performance. These factors are identified and summarized in

Table 2. Economic Factors Affecting Project Performance.

Economic Factors	Sources
Employment	[16,22,35,38,40,41,50]
Market Access	[38,41,42]
Regional Development	[35,38,39,41,44]
Income	[16,35,36,38,41,42,50]
Tourism	[38,41]
Productivity	[10,13,14,37,38,41]
Local Market	[41]
Transportation	[10,36,41,50]

.

2.3. Project Performance Indicators

Performance is defined as doing well what one was hired to do. It describes behavior as well as judging and evaluating procedures [19]. The construction sector governs any country’s economy and is considered an indicator of a nation’s financial well-being [51,52]. There have been lamentations about project performance among countries, as evidenced by the number of failures reported on construction project performance [52]. Performance measurement systems have evolved into critical tools in the successful management of organizations in order to ensure that their objectives are met. Performance measurement is defined as the process of determining the extent to which a project’s (general) aim and (specific) objectives have been met. It can be done to improve an organization’s ability to create superior plans, to better implement innovation and learning, and allow for incremental organizational development [53]. The construction industry has become more dynamic, complicated in nature, and dominated by uncertainty as a result of the modernization of past working procedures and the evolution of new ways to conduct work [54]. Thus, the measurement of progressive project performance is critical in predicting the success or failure of a construction project. The success of a construction project is dependent on its performance [55].

This performance is evaluated based on completion dates, expected quality standards, cost estimates, and client satisfaction. Failure to meet project objectives on time and within budget is quite common [56], and the two common terms used in measuring construction project performance are Critical Success Factors, CSF [55], and Key Performance Indicators, KPI [57]. The ultimate measure of project success is the project client’s satisfaction [58]. Client satisfaction is determined by how well projects perform in terms of other key performance indicators such as cost, time, and quality [59]. Measurement of project performance using the key performance indicators approach has yielded several classifications, but the most popular and widely accepted in the construction industry worldwide is the UK KPI working group classification [57]. Different people may define project performance differently, whether in terms of function, aesthetics, attractiveness, profit, sustainability, or satisfaction. Depending on the requirements and objectives, the list could go on indefinitely. The following four key factors influence construction clients’ needs: performance in terms of time, cost, quality, and safety. According to [60], inefficient design and construction processes are commonly cited as some of the primary causes of poor performance due to fragmentation. The project team must work together to complete the various project activities for successful project delivery, but the project manager is in charge of orchestrating the entire construction process [61]. Caring for construction activities is a source of concern in the construction industry because the success of activities is determined by their performance [3]. Performance indicators are a set of measures that focus on the aspects of organizational performance that are most important to the culture and future success of the organization. The performance measure reflects a balance of time, quality, and cost [62]. Performance indicators are essential for monitoring and controlling operations, as well as ensuring that objectives are met [8]. Organizations use performance indicators to evaluate the success of construction projects. In contrast, actual and estimated performance are frequently compared in terms of effectiveness, competence, and product quality [63]. Construction projects are carried out in one of the most dynamic and complex environments [64].

There are two types of indicators: (1) quantifiable (tangible and measurable) indicators and (2) qualitative indicators (difficult to quantify). Key performance indicators (KPIs) are financial and non-financial metrics that are used to track the progress of an organization’s goals [14]. The use of performance indicators allows top management to monitor the progress of construction projects regularly [13]. Quality issues are a concerning occurrence for a civil engineer. In this context, owners and engineers are concerned about quality issues that have become more common than expected [65,66]. Although measuring the performance of any construction project may appear simple, it is a very complicated process [13]. Several researchers have pointed out different indicators for measuring project performance. The most common indicators used to measure construction performance include time, cost, quality, customer satisfaction, health, and safety [18].

Table 3. Project Performance Indicators.

Project Performance Indicators	Sources
Cost	[1,8,14,62,67,68,69,70,71,72,73,74,75]
Customer Satisfaction	[1,8,14,62,67,68,71,72,73,75]
Health	[1,8,14,62,69,72,73]
Safety	[1,8,14,62,67,68,69,70,71,72,73,74]
Quality	[1,8,14,62,67,69,70,71,72,73,75]
Time	[1,8,14,62,67,68,69,70,71,73,74,75]

presents common indicators of project performance.

Cost is an essential indicator for measuring project performance. Both the client and the contractors are concerned about the cost of construction projects [3]. The problem of cost overruns has substantially affected construction project prices [76]. Project costs include design cost, materials cost, cost of changes in work order and rework cost, waste rate, and profit rate [3]. Similarly, customer satisfaction is also a very important indicator. Customer satisfaction means the fulfillment of customers’ satisfaction. This necessitates a combination of requirements compliance (must deliver what is promised) and fitness for purpose (the product must satisfy the needs). The customer satisfaction indicator is a composite index based on the importance of each element in determining overall customer happiness and purchasing or using behavior [20]. Upright quality of products and services, modern and technical help, cost optimization, and timely delivery increase customer satisfaction [13]. For any project, safety is the most crucial consideration. A lapse in safety affects the project duration. There are a lot of standards, all of which are strictly followed to assure safety. Due to budget limits and other factors, requirements are frequently overlooked [20]. Further, it is essential to achieve quality. In construction projects, quality should meet the expectations of contributors and investors [3]. Quality is meeting or exceeding the owner’s requirements. Quality in construction is related to meeting the contract specification, completing the project schedule, meeting the owner’s needs within budget, avoiding claims, and ensuring the facilities serve their intended function [65]. Furthermore, time is crucial since it is frequently used as a benchmark for evaluating a project’s performance and the competency of the project organization [3]. A large number of projects are facing poor performance of time, resulting in time overrun [77]. It takes a long time to complete the construction [10]. Unavailability or late arrival of resources on-site, payment delay, time to remedy problems, and projected construction time are all factors [3].

3. Research Methodology

The structure of the research methodology serves as a foundation for conducting analysis. It provides a step-by-step approach to accomplishing the project’s goals by performing various tasks.

As depicted in Figure 1, the first step of the research process is problem identification. Problem identification is an important step in a research study because it sets the focus and direction for the study. It involves identifying a specific gap in knowledge or understanding that the study aims to address. By clearly defining the problem, researchers can ensure that their study is relevant and will make a meaningful contribution to the field. Additionally, problem identification helps to guide the selection of research methods, data collection techniques, and analysis methods. Without a well-defined problem, a research study risks being irrelevant or inconclusive. In this study, the problem of poor performance was considered for study. After defining the problem, a detailed literature review was carried out. A literature review is an imperative step in a research study because it allows researchers to gain a comprehensive understanding of the existing knowledge and research on a topic. This process involves locating and reviewing relevant literature, including academic journals, books, and other sources. By conducting a literature review, researchers can identify gaps in the current knowledge, identify key theories, concepts, and relevant research studies, and develop a clear understanding of the current state of the field. This step also allows researchers to identify the strengths and weaknesses of previous research, which can help to guide their own research design and methodology. Furthermore, the literature review also provides a solid background and support to the research problem, helps to avoid duplication of work, and also helps to identify the research gap. From a comprehensive literature review, it was found that social and economic factors have significant effects on project performance. The literature review resulted in identifying 24 common factors in the social and economic domains which affect the performance of the project. Based on these factors, a questionnaire form was developed.

This research was conducted using a combination of qualitative and quantitative methods of data collection. It was staged in two parts. The first part was a pilot study that was carried out based on a qualitative strategy. A pilot study allows researchers to test and refine their research methods and procedures before conducting a full-scale study. It is conducted to assess the feasibility, reliability, and validity of the research design, data collection tools, and procedures. This can help to ensure that the main study is conducted in a smooth and efficient manner and that the data collected are of high quality. In this study, a panel of 29 construction experts participated in semi-structured questionnaires and semi-structured interviews for conducting the pilot study. Its goal was to determine the relevance of social, economic, and project performance indicators at various levels of scale. The data collected during the pilot study were analyzed with the Relative Importance Index (RII). Based on the findings of the pilot study, as described below in Section 4.1, the questionnaire form was finalized, and actual data collection was carried out and analyzed, as discussed in Section 4.2 below. In the pilot study, social and economic factors and project performance indicators were rated on a scale of five points in phase one.

Table 4. Likert Scale for data measurement.

Likert Scale	1	2	3	4	5
Description of Level of Relevancy	Not Relevant	Less Relevant	Relevant	Very Relevant	Extremely Relevant
Description of Level of Importance	Not Important	Less Important	Important	Very Important	Extremely Important

displays the description of the Likert Scale adopted for data measurement in this research work.

For the qualitative phase of data collection, sample size plays a very important role in achieving suitable data. For this study, the sample size (SS) of the population was calculated based on the formula adopted from [78] as follows.

$$SS=\frac{\left(Z^2\right)\left(p\right)\left(1-p\right)}{C^2}$$

(1)

where:

• SS = Sample Size;
• Z = Z value (1.645 for 90 percent confidence level);
• p = percentage picking a choice expressed as a decimal (0.5 used for sample size needed); and
• C = margin of error (9 percent), the maximum error of estimation, which can be 9 or 8 percent.
• SS = $\frac{{1.645}^2\ast 0.5 \left(1-0.5\right)}{{0.08}^2}$ = 106

The relevancy and importance level of social factors, economic factors, and project performance attributes was evaluated based on the Relative Importance Index (RII) calculated using the equation:

$$RII=\frac{{\sum }^{ }W}{\left(A\ast N\right)}=\frac{\left(5n5+4n4+3n3+2n2+1n1\right)}{\left(A\ast N\right)}$$

(2)

• W = weight given to each factor by respondents and ranges from 1 to 5.
• 1 for not important/not relevant, 2 for less important/less relevant, 3 for important/relevant, 4 for highly important/highly relevant, 5 for extremely important/extremely relevant.
• A = Highest Weight
• N = Total No. of Respondent

There is a zero-to-one RII range for factors; the higher the RII value, the more important the factor is [79]. Social factors (independent variables) and economic factors (independent variables) were ranked by RII to determine the order of effect on project performance indicators (dependent variables), and RII was used to determine the order of effect on project performance indicators (dependent variables).

4. Results and Discussion

4.1. Ranking the Factors and Performance Measurement Indicators (Phase-1)

This phase of the study aimed to determine the important factors of social and economic aspects that affect the project performance. It also pointed out the important criteria for measuring the performance of the projects. Data collection for this involved structured interviews among the experienced practitioners involved in handling the construction projects. A panel of 29 practitioners participated in this data-collection process. The demographic characteristics of the respondents are presented in

Table 5. Demographic Characteristics of the Respondents.

Demographic Characteristic	Frequency	%Age	Cumulative %Age
Type of Organization
Client organizations	9	31.03	31.03
Consultants	9	31.03	62.06
Contractors	11	37.94	100
Education Level of the Respondents
Bachelor level	21	72.41	72.41
Master Education	7	24.14	96.55
Diploma	1	3.45	100
Working Experience of the Respondents
6 to 10 years	14	48.28
11 to 20 years	12	41.38
More than 21 years	3	10.34
Position of the Respondents in the Organization
Directors	4	13.79	13.79
Project Managers	6	20.69	34.48
Resident Engineer	4	13.79	48.27
Planning Engineer	4	13.79	62.06
Site Engineer	9	31.4	93.1
District Engineer	1	3.45	96.55
Project Coordinator	1	3.45	100

.

An analysis of social, economic, and project performance indicators was conducted with the help of RII calculations to rank each factor in terms of relevance and importance. The RII values were used to interpret the relevance and importance of the various factors, and the results are summarized in

Table 6. Evaluation Criteria for RII.

S No	RII Range Value	Interpretation
1	0.9 ≤ RII ≤ 1.0	Extremely Relevant/Important
2	0.7 ≤ RII ≤ 0.9	Very Relevant/Important
3	0.5 ≤ RII ≤ 0.7	Moderately Relevant/Important
4	0.3 ≤ RII ≤ 0.5	Less Relevant/Important
5	0.2 ≤ RII ≤ 0.3	Not Relevant/Important

.

The RII value of importance and the relevancy of the social factors, economic factors, and performance indicators, along with their ranking, are presented in

Table 7. RII of Social/Economic Factors and Performance Indicators.

Factor/Performance Indicators	RII (Level of Importance)	Rank	RII (Level of Relevance)	Rank
Social Factors
Safety on Site	0.94	1	0.96	1
Land Value	0.84	2	0.85	2
Health of Residents	0.81	3	0.77	3
Local Employment	0.79	4	0.76	4
Education	0.78	5	0.73	5
Accessibility and connectivity	0.73	6	0.71	6
Privacy of Residents	0.71	7	0.70	7
Communication and Interaction	0.7	8	0.69	8
Physical Components	0.68	9	0.68	9
Accessibility to Parking	0.65	10	0.67	10
Local Issues	0.64	11	0.65	11
Flow of Traffic	0.63	12	0.63	12
Travel Time	0.62	13	0.61	13
Accident	0.58	14	0.58	14
Economic Factors
Productivity	0.84	1	0.81	1
Local Employment	0.82	2	0.76	3
Transportation	0.79	3	0.78	2
Market Access	0.77	4	0.75	4
Local Market	0.76	5	0.74	5
Regional Development	0.74	6	0.72	7
Income of Residents	0.73	7	0.73	6
Project Performance Indicators
Time	0.99	1	0.98	1
Customer Satisfaction	0.96	2	0.97	2
Cost	0.95	3	0.96	3
Health and Safety	0.92	4	0.93	4
Quality	0.91	5	0.90	5

.

4.2. Developing Regression Equation (Phase-2)

The goal of this research phase was to develop a regression model for evaluating the impact of social and economic factors on project performance indicators. A questionnaire survey was used to collect data for this purpose. For this purpose, 350 questionnaires were distributed, but only 160 responses were collected. A total of 6 questionnaire forms were discarded because they were incomplete, and the remaining 154 responses were analyzed. The demographic characteristics of the respondents participating in this questionnaire survey process are presented in

Table 8. Demographic Characteristics of the Respondents.

Demographic Characteristic	Frequency	%Age	Cumulative %Age
Type of Organization
Client organizations	44	28.57	28.57
Consultants	34	22.08	50.65
Contractors	76	49.35	100
Education Level of the Respondents
Bachelor level	130	84.42	84.42
Master Education	23	14.94	99.35
Diploma	1	0.65	100
Working Experience of the Respondents
1 to 5 years	96	62.34	62.34
6 to 10 years	43	27.92	90.26
More than 10 years	15	9.74	100
Projects Handled by the Respondents
Residential Projects	85	55.19	55.19
Infrastructure Projects	38	24.68	79.87
Non-residential Project	25	16.23	96.10
Social Amenities	6	3.90	100

below:

Table 8 reveals that the respondents involved in the data collection have a sound technical background and experience working on construction projects. Hence, the data collected from the respondents are considered valid and used for further analysis. Analysis of data involved multivariate regression analysis with the SPSS software package to study the effect of social and economic factors on project performance indicators. The analysis for the effect of social factors on time showed that the R² value of social factors is 0.826, which revealed that predictors explained 82% of the variance in the outcome variable with F (14, 139) = 20.51, p < 0.001, and Durbin Watson 1.328% of the variance in the outcome. The test parameters obtained for the factors are tabulated and presented in

Table 9. Regression Analysis for Effect of Social Factors on Time.

Variables	B	SD	T	p
(Constant)	0.331	0.167	1.974	0.050
Safety on site	0.154	0.050	3.089	0.002
Land value	0.072	0.034	2.126	0.005
Travel time	0.025	0.040	0.614	0.540
Local employment	−0.029	0.036	−0.800	0.425
Health of residents	0.073	0.041	1.787	0.076
Physical components	−0.021	0.045	−0.472	0.638
Privacy of residents	0.142	0.043	3.277	0.001
Accessibility and connectivity	0.028	0.058	0.489	0.625
Education	−0.185	0.048	3.877	0.000
Local issues (dirtiness, noise, vibration)	0.097	0.033	2.907	0.004
Flow of traffic	0.120	0.072	1.661	0.099
Communication and interaction	0.131	0.071	1.837	0.068
Accident	−0.008	0.048	−0.175	0.861
Access to parking	0.081	0.050	1.618	0.108

.

Table 9 shows the individual contribution of the predictors; the result indicates safety on site (β = 0.15, p < 0.05), land value (β = 0.07, p = 0.001), privacy (β = 0.14, p = 0.001), education (β = 0.19, p < 0.001), local issues (β = 0.07, p < 0.05), positively predict project time. Based on the results, the effect of social factors can be represented in terms of the equation, as in Equation (3).

$$\begin{gathered} \mathrm{Time}=0.331+0.15\left(\mathrm{Safety} \mathrm{on} \mathrm{site}\right)+0.07\left(\mathrm{land} \mathrm{value}\right)+0.14\left(\mathrm{Privacy}\right)- \\ 0.19\left(\mathrm{Education}\right)+0.20\left(\mathrm{Local} \mathrm{Issues}\right) \end{gathered}$$

(3)

In the same way, the financial impact of social factors was assessed by evaluating the effect of a social factor on project cost. The results revealed that 94.6 percent of the variance in the outcome variable was explained by predictors, with an R² value of 0.946 and F (14, 139) = 174.38 (p < 0.001) and Durbin Watson 1.69.

Table 10. Regression Coefficients of Social Effects on Cost.

Variables	B	SD	t	p
(Constant)	0.308	0.089	3.472	0.001
Safety on site	0.060	0.029	2.081	0.039
Land value	0.208	0.030	6.962	0.000
Travel time	0.041	0.023	1.798	0.074
Local employment	−0.014	0.019	−0.736	0.463
Health of residents	0.025	0.029	0.856	0.393
Physical components	0.097	0.032	3.027	0.003
Privacy of residents	0.039	0.030	1.305	0.194
Accessibility and connectivity	0.069	0.028	2.429	0.002
Education	0.139	0.023	5.992	0.000
Local issues (dirtiness, noise, vibration)	0.026	0.021	1.239	0.217
Flow of traffic	0.044	0.031	1.389	0.167
Communication and interaction	−0.131	0.035	3.719	0.080
Accident	0.071	0.027	2.626	0.061
Access to parking	0.050	0.019	2.578	0.000

lists the results of the tests performed on the various variables.

Table 10 shows individual contributions of the predictors on cost; the result indicates safety on site (β = 0.06, p = 0.05), land value (β = 0.21, p < 0.01), physical components (β = 0.10, p < 0.05), accessibility and connectivity (β = 0.07, p < 0.05), education (β = 0.14, p < 0.01), access to parking (β = 0.5, p< 0.05). Based on the results, the effect of social factors can be expressed in terms of the equation, as in Equation (4).

$$\begin{gathered} \mathrm{Cos}\mathrm{t} =0.31+0.06 \left(\mathrm{Safety} \mathrm{on} \mathrm{site}\right)+0.21 \left(\mathrm{Land} \mathrm{value}\right)+ \\ 0.10 \left(\mathrm{Physical} \mathrm{components}\right)+0.14 \left(\mathrm{Education}\right)+0.05 \left(\mathrm{Access} \mathrm{to} \mathrm{parking}\right) \end{gathered}$$

(4)

Predictors explained 66.2 percent of the variance in the outcome variable, with F (14, 139) = 19.41, p < 0.001, and Durbin Watson 1.95 for the results of social factors on health and safety. For each factor, the test parameters are listed in

Table 11. Regression Coefficients of Social Effects on Health and Safety.

Variables	B	SD	T	p
(Constant)	0.465	0.191	2.430	0.016
Safety on site	0.094	0.057	1.658	0.011
Land value	0.026	0.045	0.575	0.566
Travel time	0.136	0.051	2.670	0.080
Local employment	0.001	0.057	0.013	0.990
Health of residents	0.027	0.051	0.529	0.598
Physical components	0.057	0.056	1.016	0.311
Privacy of residents	0.075	0.059	1.259	0.210
Accessibility and connectivity	−0.029	0.072	−0.401	0.689
Education	0.208	0.063	3.285	0.001
Local issues (dirtiness, noise, vibration)	−0.216	0.051	4.263	0.000
Flow of traffic	0.028	0.082	0.336	0.738
Communication and interaction	−0.046	0.074	−0.626	0.532
Accident	−0.025	0.052	−0.481	0.631
Access to parking	0.198	0.064	3.094	0.002

.

Table 11 shows the individual contribution of the predictors where safety on site (β = 0.09, p < 0.05), education (β = 0.21, p = 0.001), local issues (β = −0.22, p < 0.01), access to parking (β = 0.20, p < 0.05) are dominant. The effect of the factors on health and safety is represented by Equation (5).

$$\begin{gathered} \mathrm{Health} \mathrm{and} \mathrm{Safety}=0.47+0.09 \left(\mathrm{safety} \mathrm{on} \mathrm{site}\right)+0.21\left(\mathrm{Education}\right)- \\ 0.22\left(\mathrm{Local} \mathrm{Issues}\right)+0.20\left(\mathrm{Access} \mathrm{to} \mathrm{parking}\right) \end{gathered}$$

(5)

The project’s health and safety is influenced by social factors, according to Equation (5). These findings have been corroborated by other researchers. Workers’ health and safety can be improved by providing adequate safety arrangements, employing educated and trained personnel, and providing better access to parking [16,80]. Debris on the job site can lead to any number of unfortunate incidents, putting the health and safety of the workers at risk.

The influence of social factors on project quality was evaluated with an R² value of 0.605, which indicated that they explained 60.5 percent of the variance in the outcome variable with F (14, 139) = 15.20 p < 0.001 and Durbin Watson 1.67.

Table 12. Regression Coefficients of Social Effects on Quality.

Variable	B	SD	T	p
(Constant)	0.722	0.237	3.051	0.003
Safety on site	0.083	0.056	1.480	0.001
Land value	0.023	0.036	0.633	0.528
Travel time	0.077	0.064	1.206	0.230
Local employment	0.008	0.073	0.112	0.911
Health of residents	0.063	0.078	0.804	0.423
Physical components	0.059	0.065	0.914	0.362
Privacy of residents	−0.086	0.067	−1.278	0.203
Accessibility and connectivity	0.211	0.077	2.742	0.002
Education	0.401	0.076	5.274	0.000
Local issues (dirtiness, noise, vibration)	−0.143	0.055	2.591	0.011
Flow of traffic	−0.122	0.071	−1.711	0.089
Communication and interaction	0.087	0.094	0.921	0.003
Accident	−0.024	0.076	−0.318	0.751
Access to parking	−0.027	0.062	−0.440	0.660

provides a breakdown of the individual factors’ evaluation values.

Table 12 demonstrated the individual contribution of the predictors where safety on site (β = 0.08, p < 0.05), education (β = 0.40, p < 0.01), and local issues (β = −0.09, p < 0.05), communication and interaction (β < 0.09, p < 0.05). Equation (6) presented the effect of the independent variable (social factors) on the dependent variable (project performance indicator/quality).

$$\begin{gathered} \mathrm{Quality} =0.722+0.08 \left(\mathrm{safety} \mathrm{on} \mathrm{site}\right)+0.40 \left(\mathrm{Education}\right)- \\ 0.14 \left(\mathrm{Local} \mathrm{Issues}\right)+0.09 \left(\mathrm{communication} \mathrm{and} \mathrm{interaction}\right) \end{gathered}$$

(6)

Similarly, the R² value for the effect of social factors on customer satisfaction was found to be 0.797. With F (14, 139) = 38.88, p < 0.001, and Durbin Watson 1.866, the predictors explained 79.7 percent of the variance in the outcome variable.

Table 13. Regression Coefficients of Social Effects on Customer Satisfaction.

Variables	B	SE	T	p
(Constant)	0.122	0.198	0.617	0.538
Safety on site	0.074	0.074	1.000	0.001
Land value	0.157	0.086	1.829	0.070
Travel time	0.019	0.072	0.257	0.797
Local employment	0.199	0.052	3.850	0.000
Health of residents	0.044	0.060	0.737	0.462
Physical components	0.046	0.061	−0.754	0.002
Privacy of residents	0.197	0.049	3.996	0.000
Accessibility and connectivity	0.390	0.087	4.493	0.000
Education	−0.030	0.060	−0.493	0.622
Local issues (dirtiness, noise, vibration)	0.145	0.057	2.564	0.011
Flow of traffic	−0.202	0.077	−2.632	0.009
Communication and interaction	−0.028	0.087	−0.323	0.747
Accident	−0.190	0.078	2.430	0.016
Access to parking	−0.029	0.061	−0.469	0.01

displays the regression coefficient values for each individual factor.

Based on Table 13, the effect of the social factors on customer satisfaction can be assessed as safety on site (β = 0.07, p < 0.01), local employment (β = 0.20, p < 0.01), physical components (β = 0.05, p < 0.05), privacy (β = 0.20, p < 0.01), accessibility and connectivity (β = 0.39, p < 0.01), flow of traffic (β = −0.2, p < 0.05), and accident (β = −0.2, p < 0.05). This effect of the factors can be demonstrated by Equation (7).

$$\begin{array}{l}\mathrm{Customer} \mathrm{Satisfaction} \\ =0.122+0.07 \left(\mathrm{safety} \mathrm{on} \mathrm{site}\right)+0.20 \left(\mathrm{Local} \mathrm{Employemnt}\right)\\ +0.05 \left(\mathrm{physical} \mathrm{components}\right)+\left(0.20\right) \left(\mathrm{Privacy}\right)\\ +0.39 \left(\mathrm{accessibility} \mathrm{and} \mathrm{connectivity}\right)\\ +\left(-0.202\right) \left(\mathrm{Traffic} \mathrm{Flow}\right)+\left(-0.19\right) \left(\mathrm{Accident}\right)\end{array}$$

(7)

In assessing the effect of economic factors on project performance indicators, regression analysis revealed that the R² value of the economic factors with respect to time was 0.737. With F (7, 146) = 58.367, p < 0.001, and Durbin Watson 1.904, the predictors explained 73.7 percent of the variance in the outcome variable. Similarly, the R² value for the effect of the factors on cost was 0.821, indicating that the predictors explained 82.1 percent of the variance in the outcome variable with F (7, 146) = 95.719, p < 0.001, and Durbin Watson = 1.704. Simultaneously, the effect of the factors on project health and safety yielded an R² value of 0.678. With F (7, 146) = 43.848, p < 0.001, and Durbin Watson = 1.708, the predictors explained 67.8 percent of the variance in the outcome variable. The model’s R² value for customer satisfaction is 0.794. With F (7, 146) = 214.336, p < 0.001, and Durbin Watson = 1.608, the predictors explained 79.4 percent of the variance in the outcome variable. The R² value of the economic factors in relation to quality is 0.753, indicating that the predictors explained 75.3 percent of the variance in the outcome variable with F (7, 146) = 134.680, p < 0.001, and Durbin Watson 2.235.

Table 14. Regression Coefficients of Economic Factors on Project Performance Indicators.

Variables	B	SD	T	p
Economic Effects on Time
(Constant)	0.667	0.169	3.934	0.000
Productivity	−0.256	0.051	5.024	0.040
Transportation	−0.169	0.054	3.115	0.002
Local Employment	−0.027	0.045	−0.597	0.552
Local Market	−0.186	0.063	2.946	0.004
Regional Development	0.162	0.048	3.396	0.001
Market Access	0.030	0.055	0.540	0.590
Income of residents	0.094	0.045	2.082	0.059
Economic Effects on Cost
(Constant)	0.242	0.145	1.669	0.097
Productivity	0.447	0.073	6.098	0.000
Transportation	0.015	0.067	−0.224	0.823
Local Employment	−0.117	0.036	3.243	0.001
Local Market	0.021	0.062	0.338	0.736
Regional Development	0.132	0.040	3.307	0.001
Market Access	−0.178	0.059	3.031	0.003
Income of residents	0.096	0.037	2.581	0.061
Economic Effects on Health and Safety
(Constant)	0.714	0.155	4.612	0.000
Productivity	0.128	0.036	3.597	0.210
Transportation	−0.114	0.034	3.368	0.001
Local Employment	0.088	0.069	1.271	0.206
Local Market	−0.109	0.080	−1.361	0.176
Regional Development	−0.168	0.052	3.198	0.002
Market Access	0.195	0.076	2.564	0.051
Income of residents	0.272	0.050	5.383	0.069
Economic Effects on Customer Satisfaction
(Constant)	0.313	0.160	1.949	0.053
Productivity	0.366	0.057	6.432	0.000
Transportation	−0.039	0.058	−0.663	0.508
Local Employment	0.079	0.054	1.454	0.148
Local Market	0.157	0.074	2.112	0.036
Regional Development	0.083	0.061	1.365	0.174
Market Access	0.092	0.070	1.323	0.188
Income of residents	0.270	0.056	4.821	0.060
Economic Effects on Quality
(Constant)	0.190	0.164	1.158	0.249
Productivity	−0.271	0.044	6.118	0.000
Transportation	0.056	0.048	1.159	0.248
Local Employment	0.187	0.058	3.226	0.072
Local Market	0.055	0.064	0.867	0.004
Regional Development	0.117	0.050	2.317	0.022
Market Access	0.131	0.054	2.411	0.077
Income of residents	0.218	0.042	5.221	0.210

summarizes the regression coefficient values of individual factors on project performance indicators.

Table 14 reveals that productivity (β = −2.56, p < 0.05), transportation (β = −0.17, p < 0.05), local market (β = −0.19, p < 0.05), and regional development (β = 0.16, p = 0.001) had the greatest impact on time. These parameters led to Equation (8) demonstrating the effect of the independent variable (economic factors) on the dependent variable (project performance indicator/time).

$$\begin{gathered} \mathrm{Time} =0.667-2.56 \left(\mathrm{productivity}\right)-0.169\left(\mathrm{Transportation}\right) \\ -0.186\left(\mathrm{Local} \mathrm{Market}\right)+0.162\left(\mathrm{Regional} \mathrm{Development}\right) \end{gathered}$$

(8)

Based on the analysis results obtained from regression analysis, Equation (9) can represent the impact of economic factors on project costs.

$$\begin{gathered} \mathrm{Cos}\mathrm{t}=0.242+0.447\left(\mathrm{Productivity}\right)+0.02\left(\mathrm{Transportation}\right) \\ -\left(0.12\right)\left(\mathrm{Local} \mathrm{Employment}\right)+0.13\left(\mathrm{Regional} \mathrm{Development}\right) \\ -0.18\left(\mathrm{Market} \mathrm{access}\right) \end{gathered}$$

(9)

Table 14 also reveals that economic factors have an impact on health and safety. The findings revealed that transportation (β = −0.14, p = 0.001) and regional development (β = −0.17, p < 0.05) are important indicators, which can be represented by Equation (10).

$$\begin{gathered} \mathrm{Health} \mathrm{and} \mathrm{Safety} \\ =0.714-0.11\left(\mathrm{transportation}\right) \\ -0.17\left(\mathrm{Regional} \mathrm{Development}\right) \end{gathered}$$

(10)

The effect of economic factors on customer satisfaction revealed that productivity (β = 0.37, p < 0.01) and local market (β = 0.16, p < 0.01) are the most important factors influencing customer satisfaction. From Equation (1), the effect of these factors can be studied as follows.

$$\mathrm{Customer} \mathrm{Satisfaction}=0.31+0.37\left(\mathrm{Productivity}\right)+0.16\left(\mathrm{Local} \mathrm{Market}\right)$$

(11)

Contrary to popular belief, economic variables such as productivity (−0.27, p < 0.01), regional development (−0.12, p < 0.05), and the local market (−0.15, p < 0.05) all have an effect on product quality. In order to examine the total effect of these factors, Equation (12) can be used.

$$\begin{gathered} \mathrm{Quality}=0.190-0.271\left(\mathrm{Productivity}\right)+0.12\left(\mathrm{Regional} \mathrm{Development}\right) \\ +0.06\left(\mathrm{local} \mathrm{Market}\right) \end{gathered}$$

(12)

4.3. Discussion

Gathered data to study the effect of the social and economic factors were analyzed using the multiple regression method. Multiple regression analysis is a very useful technique in studying the strength of a relationship between an independent variable(s) and a dependent variable. It aids in predicting how much variance in the dependent variable is accounted for by a given independent variable. At least three variables are used in multiple regression analysis (one is dependent, and the other two are independent). It is a method for generating equations and explaining variable relationships. In addition, the F-Test, multi-colinearity, and Durbin Watson tests were used to modify the factors. To see if the relationship between independent and dependent variables has an impact on the dependent variable, the F-Test is used in conjunction with the regression model as a whole. Models can be tested for statistical significance using the F-test. It is significant if the p-value is lower than 0.05. Multi-colinearity determines whether or not there is a linear relationship between dependent variables because it is difficult to determine the effects of each independent variable on the dependent variable. The Watson Durbin is a regression model output autocorrelation test. The test yields a result in the range of 0 to 4. If the value is 2, the correlation is positive; otherwise, there is no correlation; and if the value is greater than 2, the correlation is negative.

In this study, Equation (3) was developed to show the relationship between social factors and project time. It explains how to save time by addressing social factors that affect project completion. According to Enshassi [33], construction sites can keep their privacy by implementing safety measures on-site. Problems encountered on-site tend to prolong the duration of a construction project, whereas bringing on workers who have a thorough understanding of their jobs and have completed formal education programs tends to shorten it. To a large extent, the price of real estate is determined by its location; the more desirable an area is, the more expensive it is to transport resources to that area. At the same time, from Equation (4), it is possible to conclude that the social factors influencing project costs seek cost-cutting measures. Findings show that hiring well-educated and well-trained workers raise the project’s cost because they follow regulations, work hard to maintain quality, take the best safety measures possible on the site, and provide good access for parking machinery and vehicles. All of these things require a lot of money, which raises the project’s overall cost. Recommendations are supported by [16]. As stated by Enhassi [33], land value directly affects the cost of building a new home. Adding aesthetics to the project’s physical components is becoming increasingly popular, which raises the project’s overall cost because of the intricate design and modern amenities that clients expect. According to Equation (5), the project’s health and safety is affected by social factors. Some other researchers have come to the same conclusions. Providing adequate safety arrangements on site, employing trained and educated personnel, and providing better parking access improve workers’ health and safety [16,80]. The destruction caused by construction site local issues can result in any unfortunate incident that puts the health and safety of workers at risk. The influence of social factors on project quality is depicted in Equation (6). Bitamba and An [80] also stated that safe working conditions have a positive influence on quality, resulting in better work quality. Local issues during the construction project, on the other hand, have a negative impact on work quality. The relationship between social factors and customer satisfaction is developed and presented in Equation (7). Several researchers agree with the findings demonstrated by the developed equation. The aesthetics of a project are important to clients, and providing modern physical components leads to increased customer satisfaction [42]. According to a study conducted in the Republic of Congo by [80], providing employment to local workers and better safety and health measures for workers affect customer satisfaction levels satisfactorily. Better communication and coordination with the client, on the other hand, increases satisfaction [16].

In addition to social factors, this study demonstrated the impact of economic factors on project performance. To assess the effect of the factors, regression analysis was used to develop the relationship between economic factors and project performance indicators. Several researchers have found similar parameters. According to [81], resources close to a project’s location boost productivity and speed up construction. Another factor that contributes to a shorter project completion time is easier access to materials from the local market and improved transportation infrastructure [82]. The project’s timeline will be impacted if it is being completed in an area that has a lot of construction going on. Four economic factors have a significant impact on productivity: transportation (0.02), employment (0.12), regional development (−0.13), and market access (0.18), according to the outcomes of the equation and Table 12. A study by [80] found that easier access to the local market led to higher productivity and lower labor costs overall. The cost of building a project can be reduced by employing local workers and laborers [83]. If there is an ongoing development in a project’s neighborhood, it will raise property values, but it will also slow down construction for some time. This has an adverse effect on the project’s cost [84]. Project costs will rise significantly if additional areas need to be accessed [82]. Construction is associated with development. Several construction projects are underway when a region is being developed, which has a negative impact on the health and safety of project workers [33]. Furthermore, the transportation of resources to construction sites necessitates frequent vehicle movement, which distracts workers and increases the likelihood of accidents or other unfavorable incidents [84]. Tengan et al. [3] defined productivity as output minus input. Satisfy customers by reducing the time and increasing the quantity of a construction project’s output for the same input (cost and budget) [85]. Any product or service needed by the customer that can be found locally and at a reasonable cost increases their level of satisfaction [86]. According to [83,87], regional development leads to contractor competition. As a result, the project’s quality is automatically improved; however, any increase in productivity without taking the necessary measures compromises and reduces the project’s quality [3]. The ease of access to the market reduces the time and cost of transporting required materials, resulting in higher quality.

5. Conclusions

This research looked into the impact of social and economic factors on Sindh construction projects. The construction project’s performance indicators have also been identified. The data were analyzed and ranked using SPSS. Additionally, the RII formula was employed to order the various project metrics. Finally, models were developed using multiple regression analysis to predict changes in project performance indicators (time, customer satisfaction, cost, health and safety, and quality). Different influences on project performance indicators can be explained by the model. With these findings and models, Pakistan’s building industry can predict and calculate the amount of change in project performance indicators that are likely to take place. Construction firms can use these models to spot issues that have a negative impact on key performance indicators. They can use these models to predict the effects of social and economic factors before beginning any activity.

The top five social factors identified in this study were site safety, land value, resident health, and local employment and education. Moreover, the top five economic factors are productivity, local employment, transportation, market access, and market size. Time, customer satisfaction, cost, health and safety, and quality are identified as important project performance indicators. The social factors regression analysis equations indicate that safety on-site is the most common social factor affecting all the five project performance indicators identified from the literature. The second most common factor is education, which affects time, cost, quality, and health and safety indicators. After that, local issues are the third common factor affecting time, health and safety, and quality indicators. At the same time, land value effect time and cost indicators, privacy effect time and customer satisfaction indicators, access to parking affect health and safety indicators, and the cost and customer satisfaction indicators are affected by physical components.

Similarly, economic factors regression model analysis equations explain that regional development is the most common economic factor affecting time, cost, health and safety, and quality indicators. Productivity is the second common factor explained in the equation, affecting time, cost, quality, and customer satisfaction. Whereas the local market is the common economic factor for time, quality, and customer satisfaction indicators, transportation is a common economic factor that affects time, cost, health, and safety.