As I know, there are many challenges facing the construction industries in developing countries. However, in the developing countries, these difficulties and challenges are present alongside a general situation of socio-economic stress, chronic resource shortages, institutional weaknesses and a general inability to deal with the key issues. Based on a report, the main issues addressed are construction industry development, globalisation, culture, and, the environment. 

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          We will now start with the first issue, construction industry development which is a deliberate process to improve the capacity and effectiveness of the construction industry. It also promotes increased value for money to industry clients as well as environmental responsibility in the delivery process and the viability and competitiveness of domestic construction enterprises. The importance of taking measures to improve the performance of the construction industry has now been recognised in several countries at various levels of socio-economic development. Dedicated agencies have been formed in many countries to administer the continuous improvement of the industry, although they have different objectives, responsibilities and levels of authority. The resource constraints, formation of an agency does not guarantee the success of construction industry development when considering the nature of the industry’s needs and problems, and in many developing countries. A number of countries at different levels of development have recently formulated long-term plans for improving their construction industries.

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          The second issue, globalisation, is a trend which has occupied the headlines of major popular publications for several decades. There are sharply different arguments on the merits and otherwise of the process of globalisation from the perspective of the developing countries. Some of the construction projects which the nations require for their socio-economic development are beyond the capability of their industries to undertake, owing to the size, novelty and complexity of those projects. Therefore, the developing countries must import some construction activities. There are some advantages and disadvantages of globalisation to the construction industries of developing countries like direct foreign investment in projects leads to increase in construction demand, creating work opportunities for local firms and it is possible that local firms will be deprived of the opportunity to grow.

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          The next issue is the culture. The project procurement and administrative arrangements currently in use in developing countries have been inherited from Western countries. These arrangements determine the documentation, procedures and practices in the industry, and specify the roles of the participants and the relationships among them, and hence the networks of power and authority. They stress formality and the following of set channels of communication. Ironically, the countries of origin of these procurement arrangements have changed their approaches. The “traditional” procurement approach, which is still predominant in the Commonwealth countries, is now only one of many possible ones. Culture has become an important area of study in business organisations. The ability to manage cultural issues, especially in multi-cultural situations as are encountered on large construction projects, is a determinant of project and corporate success.

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          Lastly it is the environment. The issue of the environment has been topical since the eighties, and has been a major subject of research and international attention. There is a belief that countries do, or should, only pay attention to the environment and endeavour to protect it when they attain a high level of socio-economic development. Another important issue is the volume of physical resources which will be required to meet the backlog of infrastructural and building needs. These key requirements of the economies and basic needs of the peoples will put severe pressure on the resources of the countries and also the globe. These trends underline the critical importance of the sustainable management of resources in developing countries. The environmental problems of the developing countries exist side-by-side with a lack of the managerial experience, financial resources, and legal and administrative systems necessary to deal with the issue through public and formal education, formulation and enforcement of “command and control” measures.