Survival of Contractor Consortiums in the Road Construction Industry during Economic Crisis
Abstract Road construction industries worldwide are periodically exposed to economic crises, which are cyclical in nature and often characterized by high inflation, currency depreciation, resource shortages, and institutional inefficiencies. In such conditions, traditional procurement methods frequently struggle to maintain project continuity, prompting the emergence of local contractor consortiums as a more resilient alternative. This study examines how contractor consortiums in the road construction sector adapted to recent economic crises and sustained operations amid unprecedented challenges. A qualitative research approach was adopted, involving 14 semistructured interviews with industry experts. Manual content analysis identified key adaptive measures, including financial pooling, shared equipment and labor, agile internal coordination, and proactive engagement with public authorities. These mechanisms enabled many consortiums to continue project delivery despite severe economic and operational constraints. However, the effectiveness of these measures was constrained by rigid legal and contractual frameworks, limited digital integration, fragmented stakeholder collaboration, and delayed institutional responses. To enhance future resilience, the study recommends modernizing contractual systems, strengthening digital adoption, and improving public–private coordination. The findings contribute to construction management research in crisis contexts by demonstrating the viability of consortium-based procurement and providing practical guidance to support the long-term sustainability of local contractor consortiums in the road construction sector.
Authors
- B.A.K.S. Perera (ORCID: https://orcid.org/0000-0002-4542-8890)
- Ilangakoon Wijayawardhana Mudiyanselage Ashinsana Devindi Ilangakoon (ORCID: https://orcid.org/0009-0008-7356-2107)
- Pahalage Alias Pallage Vijitha Dharma Sri Disaratna
- Masinghe Arachchi Kankanamalage Manuja Yasas Masinghe
Institutions
- University of Moratuwa (LK)
- Monash University (AU)
Publication Details
- Journal
- Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
- Published
- 2026-10-07
- DOI
- https://doi.org/10.1061/jladah.ladr-1621
- Primary Topic
- Construction Project Management and Performance
- Type
- article
- Field-Weighted Citation Impact
- 0.00