Challenges for commercial management in the construction industry: case for Sri Lanka

Abstract

Commercial management significantly contributes to preserving the value of construction projects and sustaining the industry. The fundamental purpose of commercial management is creating and maximising value through informed decision-making and overseeing the project. However, despite its critical importance, there exists a significant research gap regarding the challenges faced in effectively managing the commercial aspects of construction projects. Therefore, this study aims to investigate the challenges of commercial management in construction projects. Quantitative research approach was adopted to fulfil the aim of the study. The questionnaire survey was conducted among professionals in the construction industry which were chosen using the snowball sample method. Accordingly, an online questionnaire form was distributed among the professionals and collected seventy responses. Findings indicate that commercial management plays a pivotal role in project success, with parameters such as cost performance and anticipated profit levels being strongly influenced by effective commercial practices. However, challenges such as poor communication, change management, and external market forces pose significant obstacles. The study underscores the importance of addressing these challenges to enhance project outcomes and advocates for the adoption of innovative approaches to bolster commercial management practices in the construction industry. By shedding light on the unique challenges faced by commercial managers in Sri Lanka, the paper contributes to a deeper understanding of how cultural, regulatory, and economic factors influence commercial management practices in different contexts. This knowledge expansion facilitates cross-contextual comparisons and strengthens the theoretical foundations of commercial management in the construction industry.