Identifying Resource Allocation Challenges in Multiproject Environments in the Construction Industry

Abstract

Managing resource allocation across multiple projects presents a significant challenge, potentially resulting in resource scarcity during project execution, especially in developing countries. A comprehensive literature review was conducted to understand the global construction industry’s challenges, identifying 25 widespread issues that plague the sector. A questionnaire was administered to 350 construction stakeholders, divided into two groups—engineering contractors and planning/administration to prioritize these challenges appropriately according to the importance index. The five most critical challenges were decision-making, project context, parallel activities, resource planning and management, and resource transportation. Further analysis using factor analysis revealed five key underlying dimensions contributing to these challenges: firm capabilities and resource management, construction activities and transportation, personnel management, time and cost, and knowledge and digitalization. The research findings provide valuable guidance for construction stakeholders, enabling them to prioritize these challenges when developing strategic action plans to improve resource allocation performance.