This paper presents findings from a survey-based study of Iran's construction industry, drawing on responses from clients, consultants, contractors, and other industry participants. Using a structured questionnaire with Likert-scale, open-ended, and multiple-choice questions, the study identifies the most pressing obstacles facing the sector. Key findings include the damaging effects of high inflation, a shortage of skilled workers, substandard construction materials, outdated technology, international sanctions, and inadequate regulatory frameworks. The analysis also examines how companies finance projects, the civil rights implications of construction activities, and the dominant role of oil price dependence in Iran's financial landscape. The paper concludes that regulatory reform is the single most critical factor needed to move the industry forward.
Analyzing the data is a significant part of any study. For this study, there were two clients/owners, eight consultants, seven contractors, and two others who did not fit into the first three categories who participated in the research. There were four parts to the questionnaire. The first part collected basic information, such as how long a person has been in business and what volume of business is conducted by that person's company. Most of the organizations were small, with fewer than 50 employees.
The second section of questions focused on a list of issues that could be potential problems within the Iranian construction industry. The goal of those questions was to ask participants to rate each issue from "strongly agree" through "strongly disagree," so that the researcher could gain a clearer understanding of how individuals felt about the specific challenges the construction industry is facing.
According to the results of that section, the most commonly identified problem was that high inflation rates were causing difficulties for businesses in Iran. The second most commonly identified problem was a lack of skilled workers and how that shortage raises construction costs across the board. The table below shows the different options from which participants had to choose, and what they believed to be the case for each option. Naturally, this is not a large sample size, and some participants may hold strong opinions about one or more issues that are not shared by the rest. While this could have introduced some skew in the data, it is still highly likely that the information provided here is an accurate representation of the issues currently being faced in Iran's construction industry. Identifying these issues is one of the most important steps toward finding workable solutions.
The table below presents the fifteen survey items related to perceived causes of delay and difficulty in Iranian construction projects, along with the distribution of participant responses.
Even though a couple of problems stood out clearly within the industry and in the minds of the participants, there were still many different issues that respondents considered important. These were also not the only concerns, as two additional parts of the questionnaire explored further dimensions of the problem.
The third part of the questionnaire involved open-ended questions. One of the most significant of these dealt with how companies were paying for projects. Preselling the building was found to be the most common and practical method of financing construction, followed closely by bank loans and mortgages. Other options were less popular but were still used by some companies.
Participants also indicated that they wanted to see more and better training classes for laborers, so that the quality of work performed would improve. Better-trained workers would help cut costs — a concern strongly supported by the data in the table above. Another important issue raised was the consequences of using substandard construction materials. Such materials can be more difficult to work with and are often less reliable and durable. Most respondents did not want to use these products, but in many cases they reported having no alternative. Substandard materials cause delays, increase costs, lead to structural failures, and create persistent problems after construction is complete that can prove disastrous. Some companies also use substandard materials deliberately in an effort to cut costs — an approach that frequently backfires and results in significant long-term problems.
There are many sanctions against Iran, and these are also harming the construction industry. According to participants who answered this question, sanctions cause the following problems:
"Sanctions-driven shortages and construction impacts on citizens"
"Oil dependence, inflation, and dominant building materials"
"Regulations identified as the industry's most critical obstacle"
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