Looking into corruption and how It affects the survival of local construction companies

What is it about?

Corruption deeply affects the construction industry, starting from the early planning stages of a project all the way through to its completion. The findings show that corruption isn’t just a side issue; it’s a major threat to the survival of local construction firms that already face many challenges. Local firms, which are often smaller and more vulnerable, struggle to compete when project contracts and decisions are influenced by bribery, favouritism, or political connections. This scenario makes it harder for honest businesses to win jobs, grow, or contribute meaningfully to the economy and local development. The study argues that if corruption is not tackled head-on, these smaller companies may continue to be pushed out of the industry. It calls for firm actions to reduce and eventually eliminate corrupt practices, from stronger oversight and transparent project bidding to enforcing accountability in both the public and private sectors. Only by cleaning up the system by every stakeholder, the study suggests, can local construction firms stand a fair chance of survival, growth, and contributing to the infrastructure and economic development of their communities.

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Photo by Jan Kopřiva on Unsplash

Photo by Jan Kopřiva on Unsplash

Why is it important?

Corruption in the construction industry is nothing new, but its impact on small, local companies deserves urgent attention. These firms play a key role in creating jobs and supporting local communities. When corruption becomes part of the system, it can make it harder for honest businesses to survive. This article explores how corruption affects local construction firms and why tackling it is vital for economic growth and development at the grassroots level.

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