THESIS ABSTRACT

Abstract

The construction industry is vital for a country's development and has grown significantly, including in Nepal, where government-driven infrastructure projects and private sectors involvement in construction have accelerated progress. However, despite its global economic impact, the sector often struggles with client satisfaction, a trend reflected in Nepal. In developing countries like Nepal, client satisfaction in construction is often tied to cost, with low-cost labor contracts leading contractors to compromise on quality to sustain profits. This results in issues such as cost overruns, delays, and subpar work, mainly due to contractor negligence, ultimately causing dissatisfaction. This research focuses on client satisfaction with construction firm’s performance in private building projects in Kathmandu Valley. The study also explores the key factors affecting client satisfaction and the challenges perceived by the main project stakeholders—clients, and contractors. A thorough literature review identified seven key factors influencing client satisfaction: site management, time management, cost performance, quality control, safety standards, personnel skills, and service quality. Using convenience sampling, 15 ongoing private building projects were studied, with 108 questionnaires distributed to clients, and contractors, achieving an 89.81% response rate. Survey results revealed that clients reported a medium level of satisfaction with construction firms' performance, though key areas like time management, safety, site management, and cost control were rated relatively low. While satisfaction levels differed slightly between the two groups, Kendall’s Tau-b correlation coefficient showed a significant relationship between their assessments of construction firm’s performance. Clients and contractors identified key client-related issues affecting satisfaction, including design changes during construction, delay in assessing/ evaluating major changes in scope of work, and approval delays for design documents. Clients and Contractors pointed to contractor-related problems like poor planning, unreliable subcontractors, and inadequate site management. The study, using the Relative Importance Index (RII) and Kendall’s Tau-b correlation coefficient, vii revealed a significant correlation in respondent rankings across both categories: client, and contractor-related issues. It was recommended that these challenges be carefully addressed and treated as lessons learned to minimize their occurrence in future projects, thereby improving client satisfaction. Improving client satisfaction in construction projects requires a comprehensive approach that addresses issues at multiple levels—client, and contractor. By implementing structured communication, better planning, risk management, and quality control practices, these challenges can be mitigated, resulting in more successful project outcomes and a higher level of client satisfaction.

Keywords

Client Satisfaction, RII, Stakeholder Perspective, Construction Challenges, Performance Improvement Strategies