Analysis of the business performance of the building construction sector for government contracting in Boyacá- Colombia

Análisis del desempeño empresarial del sector de la construcción de edificaciones para la contratación estatal en Boyacá-Colombia

Published 2022-06-01

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Vol. 19 No. 38 (2022): Table of contents Revista EIA No. 38
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Analysis of the business performance of the building construction sector for government contracting in Boyacá- Colombia. (2022). Revista EIA, 19(38), 3822 pp. 1-20. https://doi.org/10.24050/reia.v19i38.1561
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Carlos Gabriel Hernandez Carrillo
Universidad Pedagógica y Tecnológica de Colombia
https://orcid.org/0000-0001-9381-3649
Andrés Hernán Quinchanegua
Universidad Pedagógica y tecnológica de Colombia
Perfil Google Scholar
Jorge Andrés Sarmiento-Rojas
Universidad Pedagógica y tecnológica de Colombia
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The construction sector in Colombia is fundamental to provide the infrastructure necessary for the progress of society. It also responds favorably to changes in economic dynamics by creating jobs, moving raw materials, stimulating and developing other economic sectors. These tasks are sustained by business performance, which is considered the fundamental pillar of market economies. Likewise, business management is directly related to innovation, by applying new productive activities in employment, trade and service formulations. However, Colombian business park is mostly composed of micro and small enterprises, which exhibit limitations in their organizational structure. This limits their performance in direct participation in complex state construction projects in a changing economic environment dependent on international market phenomena. Therefore, this research analysed the economic environment of the building subsector, through the formulation of a methodology to select and characterize the companies of the building construction subsector in Boyacá. In addition, business capabilities were identified through the estimation of financial and organizational statements when compared with a representative sample of public bids for building construction. The above exposed the complex conditions in housing construction as a leader in the building subsector. In addition, 95.83% of the companies in Boyacá do not have the conditions to participate in public procurement due to organizational limitations that characterize the Colombian business park. These phenomena, together with the effects of the recent economic crises, have affected the economic growth of the building activity, despite institutional efforts to encourage production through investment in construction.

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