Challenges of Construction Industries in Developing Countries: Lesson from Various Countries

Construction industry in the developing countries faces more challenges than developed countries. Construction institutions in developing countries are government agencies. A long term plan is required to be formulated because the development of the construction industry is a long term process.
Globalisation of the construction industries in developing countries is undeniable because the developing countries do not have the capability to construct projects that are required to develop their socio-economy. Therefore, the developing countries must import foreign construction activities. However, it does come with advantages and disadvantages.
The advantages of globalization for construction industries in developing countries are international finance makes funds beyond the developing country’s capabilities possible. Competition among foreign firms also lowers the cost of projects to developing countries. The host contractors may also benefit technology transfer from their foreign contractors.The disadvantages are local contractors lack the technical and managerial capability to undertake foreign-funded projects. Globalizing the construction industry in developing countries could also deprive the opportunity to grow for local firms. Difficulties such as Foreign contractors not transferring technology on purpose due to preventing future competitors does happen.  
The construction industry offer job opportunities and develop the infrastructure for developing countries.  Therefore, the construction industry should do well despite the unfavourable environment of a developing country. The industry can help national economies to recover and contribute to easing of the social problems. The process requires a construction industry development agency to be formed. The agency should be close contact with the industry and have complete control over all aspects. The agency can formulate long-term plans for a stable development process of the industry. Personnel of the agency should be effectively utilized for the leadership of the Agency. Staying relevant with the plans, policies, initiatives, procedures and communication channels and refining  continuously is also vital to the agency.
Construction industry in developing countries may face difficulties because the project procurement and administrative arrangements currently in use in developing countries have been inherited from western countries which have a different culture. The construction industry requires temporary interaction between several organisations.  Therefore, failure to consider and incorporate cultural traits in the procurement systems of construction adopted in development countries is one of the factor of poor performance in construction products. The uniqueness of culture in developing countries requires practices, procedures and relationships suited to the culture of each country. It is necessary to replace the obsolete and inappropriate practices.
The issue of environment has been going on for decades. Developing countries face the issue not being able to preserve the environment because they  don’t have the level of socio-economic development and lack of the managerial experience, financial resources and administrative system to deal with the issue through education.  In developing countries, the construction industry receives little attention. Construction companies should search for ways to minimize negative impacts of construction activity on the environment. The government plays an important role in encouraging and making sure it happens.