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IMPACT ON LOCAL BUSINESS
(A Case Study of BRT Peshawar, KP)
Submitted To:
DR. AMJID AMIN
Submitted By:
ALI RAZA
BS(Hons) Economics
DEPARTMENT OF ECONOMICS
UNIVERSITY OF PESHAWAR
Session 201418
BRT CONSTRUCTION ACTIVITIES AND ITS
IMPACT ON LOCAL BUSINESS
(A Case Study of BRT Peshawar, KP)
This Thesis is Submitted to the Department of Economic University of
Peshawar in Partial Fulfillment of the Requirements for the Award of
Bachelor in Economics.
Submitted To:
DR. AMJID AMIN
Submitted By:
ALI RAZA
BS(Hons) Economics
DEPARTMENT OF ECONOMICS
UNIVERSITY OF PESHAWAR
Session 201418
APPROVAL SHEET
This Thesis is Submitted to the Department of Economic University of
Peshawar in Partial Fulfillment of the Requirements for the Award of
Bachelor in Economics.
Supervisor:
DR. AMJID AMIN
Department of Economics
University of Peshawar.
External Examiner:
Chairman:
DR. ZILAKAT KHAN MALIK
Chairman Department of
Economics
University of Peshawar.
DEPARTMENT OF ECONOMICS
UNIVERSITY OF PESHAWAR
Session 201418
ACKNOWLEDGEMENT
I am thankful to Almighty Allah who gave me the courage and power for completing
especially my mother whose prayers, courage and help made my thesis successfully
completed.
I feel pride in expressing my deepest sense of gratitude to my honorable supervisor
Mr. Amjid Amin Assistant Professor in Department of Economics in University of
Peshawar, who is the source of initiation for this thesis.
Least but not the least, I present my obligations a heartfelt admiration to my loving
parents, brothers and sister, because my success is really the fruit of their support and
devoted prayers.
ALI RAZA
1
ABSTRACT
The main objective of the study is to investigate, “Does transit construction negatively
affects business sales and survival during the construction period”. In this regard data
was collected from primary sources such as questionnaire to investigate on the desire
objective.
The study concluded that the BRT construction activities in Peshawar city have a
great negative impact on the local business community. There is need for the
Therefore it is a challenge for provincial authorized department to reduce the impact
led by these construction activities. This thesis investigated a negative impact on local
business through collection of primary data.
The study concludes that t6he following steps should be taken:
It is very important to investigate the effected resources for business
community and introduce a proper improvement measurement with a pave and
sensitive plan, like proper implementation procedures, specified
implementation responsible institution and reporting etc.
Dust which has shown a negative impact on air quality and also disturbs
businesses. To reduce the impact during construction phase it is necessary to
periodically spray water during rush hours (2-4 times per day)to reduce dust
and air pollution.
The raw material using during construction should be site carefully or another
way material, equipment at material site should be shifted to specified rented
area chosen for this purpose. This will provide a relief on obstruction to
business activities.
The knock on effect of loss of business would be reduced turnover and potential
business relocations and/or closures. This would result in reduced economic activity
and the loss of industry jobs which are an important source of employment. Thus its is
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necessary for provincial government to assist these loses carefully and provide a
strong support for the confidence of the effected business community.
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TABLE OF CONTENTS
4
LIST OF TABLE
Page No.
4.2.1 Industry Sector 20
4.2.2 Business forecast before construction phase 21
4.2.3 Business forecast during construction phase 22
4.3.1 Satisfaction of business operations during construction 23
4.3.2 Overall conditions of road along business 24
4.3.3 Satisfaction with the operation on road construction 25
4.4.1 Dust and noise impact on business operations 26
4.4.2 Customer lose due to construction activities 27
4.5.1 Shift of business to alternative locations 28
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LIST OF FIGURES
Page No.
Figure 1 Industry Sector 20
Figure 2 Business forecast before construction phase 21
Figure 3 Business forecast during construction phase 22
Figure 4 Satisfaction of business operations during construction 23
Figure 5 Overall conditions of road along business 24
Figure 6 Satisfaction with the operation on road construction 25
Figure 7 Dust and noise impact on business operations 26
Figure 8 Customer lose due to construction activities 27
Figure 9 Shift of business to alternative locations 28
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CHAPTER 1
INTRODUCTION
1.1 Background of the study
1
(ROW) without any legal permission or license. There will be temporary impacts on
mobility and access of people due to construction of the BRT, which will be managed
by the civil works contractors during the construction period, to ensure no
inconvenience to the people. A traffic management plan has also been prepared for
this purpose as part of the environmental management plane (EMP). The contractor
must identify the impacts and address them during the construction. The preliminary
design identified impact on a number of public utilities. These include water supplies,
drainage system, telecommunication infrastructure, gas and electricity supply poles
and transformers, temporary ambulance stations, police/ security check posts will also
need to be relocated. PDA has already held meetings with the utility institutions to
submit their plans for relocation or redesign of these utilities and the process
payments for relocation of utilities companies/departments is already started. The
detailed design consultants will keep on reviewing these plans and suggest remedial
measures to avoid damages or disruptions of services during civil works. The main
objective of this research effort is to address the concerns of individual business
owners. The case study information along with quantified estimates of both perceived
and actual business impacts from previous projects can be used to address the
concerns of business owners. Also, this study includes a state-of-the practice review
of mitigation techniques for use in future projects to minimize construction impacts
and foster better relationships with business owners.
During the construction period it is difficult for the business communities to roll the
wheel of their businesses. Peshawar BRT construction is flowing through the main
business hubs. The economic impacts play a major role in society and should be taken
into consideration during the construction phases of a mega project. Although its
importance is pressing, economic losses are rarely deliberated because of the positive
impacts construction can have on surrounding businesses. Once construction is
complete, land prices may rise, development begins or continues, and access and
mobility is improved; all of these advantages are economic stimuli that make it
difficult for a contractor to evaluate the negative impacts a construction project may
have on the area bordering a construction project. Yet in some cases, the damages
such as loss of income or customers, decreased productivity, or property destruction
are irrevocable and businesses are forced to close or relocate. . In this context the
2
study explore the following research question. The main research question is “Does
transit construction negatively affects business revenue and survival during the
construction period?”
1.3 Aims
To find the economic impact of construction period on local businesses and to suggest
a recommendations to minimize these kinds of negative impacts.
1.4 Objectives
This paper aims to recognize the economic impact of BRT construction activities on
the adjusted businesses. BRT is a very first mega project in KP, the province of
Pakistan. The route follows through major business hubs in Peshawar, the capital of
KP. More interestingly from the past two or three years most new businesses were
entered in these economic hubs which also include multinational companies. Thus this
thesis intends to agenize the economic touch of businesses situated inbound to BRT
construction realm.
The effects of transit construction on businesses have not been studied. As a result,
predictions of effects on business sales are often a source of contention between
business community members and transit agency managers during the construction
process (Fan and Guthrie, 2012). But as both sides are for the most part unable to
support their claims with evidence, they instead most often revert to language of fear
on the business side and dismissal on the transit side. At a minimum, the research
reported in this thesis can provide some evidence using primary dat, while at best it
could serve as a model for predicting effects during future projects. A second area of
importance is how construction’s activities effects on business. If transit construction
destabilizes businesses through a loss of sales, they are more vulnerable to
displacement via higher rents and/or displacement of the customer base. Additionally,
business death rates are of interest as the reason given for ignoring construction
impacts is their temporary nature. Business death, on the other hand, is presumably a
permanent impact that is significant for the owner and potentially the neighborhood.
3
1.6 Organization of the study
Chapter 1 provides the background of the study, Objectives of the study, Significance
and Organization of the study.
4
CHAPTER 2
LITERATURE REVIEW
Xue, X., Zang, R., Jing, R. Yang & Li, H.(2015) executed a study on rapid urban
development in which they focused an investment on increasing subway projects.
They postulated that although these kinds of projects alleviate transportation pressure
in cities and makes citizen’s life easier yet it raises many economic, environmental
and social problems during the construction process. China subway construction site
usually lie in the most dense business district, construction caused part of the traffic
jams bought about a negative impact on the benefit of the shops. They approached
through stockholder theory. They used structural equation modeling (SEM) a
statistical technique for testing and estimating casual relationships. The data was
collected through questionnaires which is an important tool of data collection. Two
surveys with semi structural interviews near the subways construction site on Xidazhi
Street. The study concluded that there are four top negative factors of urban subway
constructions including commute impact factor, transportation impact factor,
environmental impact factor and lives impact factor. Thus the study woke the negative
impacts on the citizen.
5
able to survive such churn. The result of the study showed that there is a negative
impact on business survival from station construction while business owners report
lost revenue from construction activity but the paper also mentioned that the result
from the revenue analysis is insignificant, suggesting that lost revenue is not the
primary mechanism through which business failure occurs. The leading candidate for
an alternate mechanism is transit construction spurring turnover in property ownership
and lease agreements. Transit access has been shown to increase commercial property
values, which can often affect businesses in the form of increased rents. Thus the two
mechanisms reveal a negative impact of the construction of transit corridor on the
business survival.
6
about construction schedules, closures and other related information. State DOTs
tended to emphasize maintaining access to businesses as the primary mitigation
measure employed. Special signage to denote business access was highlighted, though
states were split on whether or not individual business names should be used on signs.
Contractor incentives or penalties were also common measures implemented by DOTs
to encourage efficient construction practices.
7
businesses' usable parking spaces, customers per day, and full-time and part-time
employees decreased slightly during construction. The study surveyed managers of
abutting businesses to obtain information on sales figures, number of employees and
number of available parking spaces before and during construction. Survey data on
sales were cross-checked with actual sales data, where available. Of the 54 survey
respondents, 34 (63 percent) reported a decline in sales and 20 reported a decline of
25 percent or more. Twenty-three businesses reported actual sales data for 1990
(before construction) and 1991 (less than one year into construction). Of those 23
businesses, slightly over half experienced a decline. The aggregate sales data from
these 23 businesses showed a five percent decrease in sales between 1990 and 1991.
Meanwhile, gross sales data for all businesses in Caldwell (obtained from the state
comptroller’s office) showed a five percent increase in sales during this period.
Approximately 80 percent of business managers reported no change in the number of
employees during construction.
Krieg, A. (2009) in master thesis investigated the impacts of Central Link LRT
construction on neighborhood business activity along a commercial corridor in the
Rainier Valley neighborhood of Seattle, WA. This section of the Central Link LRT
involved the construction of a center-aligned, at-grade track along 4.5 miles of Martin
Luther King Jr. Way South, a main commercial corridor in the ethnically diverse
neighborhood. Though this analysis focused on data collected before LRT and after
construction, a few of the findings presented speak to impacts on business activity
during construction. According the study, 268 businesses were open a year before
construction began and 57 businesses were forced to relocate due to construction.
Despite these 57 relocations, 234 businesses were open in 2009, when Central Link
operation began. While business turnovers did occur during the six-year study period
(from 2003, a year before construction began, until 2009, when Central Link
operation began), the total number of open businesses peaked during the middle of the
construction period in 2006. Total revenue reported by businesses along the corridor
that paid business taxes grew by 30 percent between 2001 and 2008 (adjusted for
inflation). However, businesses with gross annual revenues below $50,000 during this
period were tax exempt, and are thus excluded from this figure. The number of
businesses above the threshold was relatively stable during construction, but the
number of businesses below the threshold fluctuated and many of these businesses
8
demonstrated losses. Business impact mitigation measures included a Supplemental
Mitigation Assistance (SMA) program, which disbursed $15.1 million in business re-
establishment payments, business interruption payments and loans for business
improvements. The business re-establishment payments were geared towards
businesses forced to relocate off of the corridor. The business interruption payments
were targeted at small businesses staying on the corridor, which were required to
demonstrate losses to be eligible. One hundred sixty-eight businesses out of a
universe of 310 businesses received business interruption payments.
Agnew, S., baum, P., Croaston, M., Janzen, A., Jerabek, E., Jorgenson, B. , Senn, A. &
yang, J. (2010) studied the business impacts of LRT construction and mitigation
strategies employed in four US cities: Seattle, Portland, Phoenix and East Los
Angeles. The student researchers also completed an inventory of University Avenue
businesses between Lexington Parkway and Rice Street and classified businesses by
sector. Based on a literature review, the authors identified eight factors that influence
the extent of LRT construction impacts to a given business. These included, in order
of importance, the financial state of the business (at the start of construction),
mitigation measures taken, parking and accessibility, marketing, type of customer
base, property value changes, proximity to new developments or vacancies (possible
future sites for new development), and whether a business owned or leased their
space. The authors then completed a sectorial analysis of businesses in this study area
based on the eight factors outlined above. The researchers found that businesses in the
personal care services sector, the largest sector in the study area, were not expected
not to be particularly affected during construction due to their regular clientele. Full-
service restaurants were expected to see impacts due to loss of walk-in business
during construction. Businesses in the automotive repair and maintenance sector were
expected to have relatively low survivability as compared to other sectors due to loss
of accessibility during construction.
9
under construction at the time of the survey. Harrison and Waldman supplemented the
business owner perceptions gained through the surveys with an analysis of more
objective sales data reported to the Texas state comptroller. The research team further
examined business openings and closings during construction and trends in multi-
tenant real-estate market. Based on two previous reports (WisDOT, 1989; de
Solminihac and Harrison, 1993) and correlation with NCE surveys, the researchers
identified the four most sensitive sectors to transportation construction work: retail,
other; retail, food; retail, auto; and services. Harrison and Waldman collected sales
data for the businesses within these sectors along the NCE project corridor. They then
compared the data from before construction began to sales data from the construction
period. They further compared sales data for businesses along the NCE construction
corridor to sales data for these sectors in Dallas as a whole. Both of these comparisons
yielded no significant difference in business sales. Surveys of business openings and
closings along the four sections showed 60 business openings and 36 business
closings occurred during construction. Finally, analysis of quarterly absorption,
occupancy and rental rates for multi-tenant office buildings showed a low point from
1991 to 1992, when occupancy rates in the project area were 10 percent below the city
average. However, the statistics showed a steady rise from 1992 to 1996, when
occupancy in buildings of this type was 87 percent along the NCE project corridor –
four percent above the city average .Survey responses from businesses in the two
completed sections primarily highlighted negative impacts to sales and driving
patterns. Some also noted communication issues between the Texas Department of
Transportation (TxDOT), the construction contractor and businesses. Surveys that
were administered to businesses as they were experiencing frontage road
reconstruction activities yielded similar results to those in the completed sections.
However, these business owners noted less adverse impacts from construction than
those surveyed in the completed sections. Harrison and Waldman hypothesized that
this could mean that TxDOT, the contractor and businesses had learned from the
experiences from the already completed sections.
Ellis, R. and washburn, S. (2005) surveyed and interviewed businesses along four
reconstruction corridors to determine their perceptions of impacts to their businesses
during construction. The four projects were 1) A 2-year major reconstruction of San
Jose Boulevard (Jacksonville). 2) A 13-month (400-day) major reconstruction of 1.6
10
miles of SR 121 (MacClenny). 3) A 20-month major reconstruction of 1.16-mile
stretch of Mahan Drive (Tallahassee). 4) A major reconstruction of 3 miles of US 192
(Kissimmee). Using information gathered from interviews and focus groups with
business managers along the four corridors, Ellis and Washburn rated the construction
impacts of highest concern to businesses. The highest rated concerns were related to
customer access/parking and delivery access followed by business visibility and
signage concerns. The prevailing perception of the business managers was that
customers had a difficult time accessing their businesses. The next impacts of highest
concern, according to the FDOT report, were utility outages and disruptions during
construction. Construction-associated congestion and changes in traffic patterns were
determined to be another set of impacts that concerned business managers. Based on
information gathered from businesses on their perceptions, the report concluded that
destination businesses (e.g. banks, specialty retailers, insurance agencies) were less
likely to feel negative impacts on business due to traffic pattern changes than other
businesses such as fast-food retailers. The study further expounded a number of
accommodation strategies to address the business concerns that were identified. The
authors broke down these recommendations into three areas: 1) strategies to Improve
Communication with Businesses. a) Hold a public meeting to introduce mitigation
efforts and project personnel before construction starts. b) Install a project sign that
includes basic information about the project and contact information. c) Regularly
distribute information to businesses via flyers. d) Provide project information and
updates on a project website. 2) Business Signage A) Mount signs on posts to
increase visibility. 3) Business Access, Parking and Traffic Congestion a) Develop
traffic control plans which take into account construction impacts to automobile
traffic; other traffic including pedestrian, bicycle and bus; business access; and
parking availability. The development of the plan should also include accident
analysis and level of service analysis of the existing corridor, pre-construction. b)
Base part of contractor incentive pay on the successful implementation of business
accommodation efforts.
Bibi, H., Yasmeen, S., Ghafoor, A. Chaudary & Aaiman, S. Hadi (2015) conducted a
study effects of mega metro project on rawalpindi’s socioeconomic and cultural life.
The purpose of the study was to explore the effects of mega metro project on
Rawalpindi’s socio-economic and cultural life. The objective of the research was to
11
study the “effects of metro project on the socio-economic and cultural life of business
community of the locale. “Research was conducted in the area near 6th road
Rawalpindi. Mega metro project have more negative effects in the lives of the
residents and business community than positive effects. The study was conducted in
the area near 6th road Rawalpindi. The study Business community has been badly
affected as a result of mega metro project, as congested roads led to reduced number
of customers due to inconvenience because of lack of parking lots, roads blockage,
traffic jams and longer alternate routes. On one hand all these aspects lead to the
reduction in customer’s number, which adversely affected the economic conductions
of the business community, while on the other hand it also enhanced work
opportunities for the labor class. “Ephemeral employment for construction work
increased the economic activity but the local businesses reduced due to disrupted
access. Data was driven through structured questioners from a selective sample of 50
respondents. The sample size was selected by using non-probability sampling in
which quota sampling technique was used to gather required information. The study
of mega metro project revealed that it is not required for the citizens of Rawalpindi,
people were facing more serious issues which need to be enlightened which have
made their life a miserable plight rather than transportation facilities. Although public
transport is used by most of the population but there should be some other convenient
and cheaper solution instead of publicizing mega metro project which have more
adverse effects than benefits, the solution which should not affect their business and
personal lives.
12
sample towns was matched with a group of control towns. Total employment of each
bypass town was regressed on total employment of its control towns and a bypass
dummy variable used to measure the effect of the bypass. The equations were
estimated by ordinary least squares (OLS) regression. The other three impacts were
obtained by interviewing the owners and managers of 54 travel-related businesses
located in the nine bypass towns. The statistical results are consistent with the
hypothesis that the bypass did not have a statistically significant effect on total
employment of the bypass towns. In the opinion of most of the owners and managers
of the travel-related businesses the bypasses had a negative impact on their retail sales
and employment, and on the town as a whole. There was a substantial variation in
opinion regarding the impact of the bypass on company retail sales, employment, and
on the town as a whole among the industry groups in the sample.
Crossley, D., J. Blazek Crossley, R. Cagney, and G. Wells. (2006). a study mitigate
business interruption during LRT construction projects to present “a toolkit of tested
mitigation practices” for future projects, particularly those in the City of Houston.
13
Data on methods used in these cities, along with mostly anecdotal appraisals of
success levels, were collected via interviews with City officials, rail project officials,
business community members and others involved (e.g. officials from banks or
nonprofit lending institutions involved). Effective methods employed in Dallas, Los
Angeles, Minneapolis, Portland, Salt Lake City, and San Diego were broken down
into five key areas for successful mitigation. These areas, along with the various
strategies highlighted by Houston Tomorrow, are listed below. 1. Financial assistance
programs: a)Small loan programs that offer low-interest or interest-free loans. b)
Loans administered by a third-party, non-profit institution 2. Community relations: a)
A single point of contact for businesses and the broader community. b) 24-hour
construction hotline 3. Construction guidelines and project management: a) Meeting
with utility companies to coordinate construction schedule. b) Flexibility in design. c)
Early communications with businesses about construction plans. d) Completing
construction in sections. e) Maintaining vehicle access to parking and pedestrian
access to business entrances 4. Contractor incentives: a) Incentive pay determined
based on appraisal of calls into the complaints hotline and on the votes of community
representatives 5. Marketing: a) Distribution of coupon books. b) Promotional mail
alerting neighbors that shops are open. c) Special signage along corridor. d) Placing of
ads on buses. e) Placing of full-page ads for specific geographic clusters of businesses
as they were experiencing construction on their doorstep. f) Establishment of Lunch
Bus program to bring project-related employees to eat at restaurants along the
construction corridor
Summary
Most relevant studies are concerned about the general construction activities.
Although mega projects of construction of transports like LRT and BRT after
completion can bring about a huge change in social, environmental and economic
perspectives but the prescribed literature is mainly focused on the economic impacts
of construction activities on the local businesses. According to analysis of the relevant
literature (Xue, Zang, Jing and Li, 2015) during the period of construction the
businesses lie on the line of the construction severely felt a negative impacts by
decline in the revenue during the time of construction. Revenue is not the only factor
but factors like property value addition and so on also can be study in the realm of
business activities, it may cause a business to be better-off or worse-off. The impact of
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mega projects of transportation refers adverse effects on the traffics along the
construction line. Factors including like traffic jams, damages of road utilities and
parking chaos are worse for the construction lines business communities to regulate
their business activities, it tends to decline in the visit and attention of consumer of
particular business due to the factors mentioned above as a result businesses along the
construction line felt a negative influence. The relevant literature (Solminihac and
Harrison, 1993) also pick out some other very important factors like basic needs i.e.
water, gas, electricity and working emotions. Suspensions of factors like these can
badly hurt the business habits like, Food market which necessarily cannot survive in
the absence of gas and water observed negative shocks. Furthermore markets like
furniture which uses heavy machines to roll the wheel of the business. The disruption
of electricity due to construction can be a emphasis threat for their revenues. The
services sectors are also not exempted from the effect of construction activities, but
the businesses in personal care services sector were not expected not to be particularly
affected during construction due to their regular clientele. The relevant study
(Harrison and Weldman, 1998) also woke some mitigation suggestions, like how to
overcome the losses suffered by business during construction activities, like business
mitigation programs which amplifies business re-establishment payments, business
interruption payments and loans for business improvements. Analysis of literature
(Alexander Krieg, 2009) evoked that business re-establishment payments were geared
towards businesses forced to relocate off of the construction line. The business
interruption payments were targeted at small businesses staying on the construction
points, which were required to demonstrate losses to be eligible. Thus in conclusion it
can be stated that most of the relevant study fired up the negative impacts of
construction period on the local businesses.
This paper aims to recognize the economic impact of BRT construction activities on
the adjusted businesses. BRT is a very first mega project in KP, the province of
Pakistan. The route follows through major business hubs in Peshawar, the capital of
KP. More interestingly from the past two or three years most new businesses were
entered in these economic hubs which also include multinational companies. Thus this
paper intends to agenize the economic touch of businesses situated inbound to BRT
construction realm.
15
CHAPTER 3
RESEARCH METHODOLOGY
3.1 Introduction
The purpose of this chapter is to deeply investigate the problem stated in this study.
This chapter mainly deals with the analysis of the data, collection of the data and the
required procedure of the study. Thus this chapter deals the responses made for the
investigation of the problem.
Primary data were used through questionnaire. Questionnaires are distributed among
businesses situated near construction area of BRT.
Data were on restaurants, convenience stores, retails, auto and truck repair shops,
furniture and beauty parlors/cosmetics which were situated near the zones of
construction area.
The collected data was then analyzed through computer accessories by using Excel,
Ms Words and finally the data were represented in the forms of tables, graphs and
description.
16
3.4 sampling size and sampling technique
BRT project was stared since fourth quarter of the 2017 and the construction is still on
the way. The entire engineering project is located on the main city roads passing
through main business hubs. Many inconvenience and problems have been brought to
residents and business life. the sample technique used in this thesis were stratified
random sampling with sample size of 100(n=100). Stratified or proportional sampling
aims to find a population for the entire population and for the subgroups within
population. the population is divided in to four subgroups i.e Hayatabad , university
town, tehkal payyan and sadder. These subgroups were made to analyze the
inconvenience and problems faced by the business community due to the construction
activates of BRT project.
17
organizations have to work within the boundaries of the rules (Ngowi, 2001).
Contractors may be obligated to improve their environmental performance to respond
to a community's requirements. Contractors need to take actions for planning and
managing the work regarding the minimization of environmental impacts related to
the construction process(Qietal.,2010).They can use an environmental management
system integrating the environmental issue in the organizational processes and
procedures (Yip, 2000), and choose sustainable materials and sustainable design
alternatives to cater to environmental regulations (Rohracher, 2001). A subway project
is an important infrastructure for serving residents. Therefore the public interests have
close association with the sustainability of a construction project. The praise and
complaints of a community on a construction site represents an important factor
affecting the project's sustainability performance. According to Walker (2000), the
environmental impact becomes a crucial issue especially when the interests of the
public are affected, in particular, for those large-scale engineering projects. Zhang et
al. (2008) show that those pressures from the community play significantly positive
roles in engaging firms in improving environmental management performance.
18
CHAPTER 4
ANALYSIS OF DATA
4.1 Introductions
This chapter discusses the data analysis and findings from 100 questionnaires
completed by business personals following the route of construction. The purpose of
this thesis was to identify the impact of construction activities on the business
community.
This section of questionnaire covers the industry sector in which business is operating
and business forecast before the construction phase and during construction phase.
The respondent were asked about in which industry sector does their business is
operating. Table 4.1 describes the respondent industry sector.
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Table 4.1 Respondent industry sector
Restaurants 13 13.0
Retail 15 15.0
Furniture 17 17.0
Fig 4.1
20
4.2.2 Business forecast before construction phase
The respondents were asked to mark the business forecast before the construction
phase. Table 4.2.2 shows the actual sales before the construction phase i-e January to
September 2017.
The table shows that overall actuals sale were higher before the construction phase.
99% of the actual sales were higher at less than 10%, between 10% to 20% and over
20%.
Fig 2: How would you assess your actual sales in the period of January to September 2017?
21
4.2.3 Business forecast during construction period
The respondents were asked to marked business forecast during the phase of
construction i-e five months. Table 4.2.3 shows the business forecast during
construction phase of five months.
The table shows that 15% of business recorded increase in sales. Remaining 85% of
the business sales recoded decrease in sales. Among them highest percentage 63% of
respondent marked 10% to 20% decrease in sales.
22
4.3 Services satisfaction level
In this section respondents were asked questions about the satisfaction level of
business services during the period of construction. Respondent were asked that how
satisfied are they at rendering services in the construction period, how satisfied are
they with overall conditions of roads along their business and how satisfied are they
with the operations of construction on roads. Table 4.3.1 4.3.2 and 4.3.3 shows the
statistical description of the respondents.
How satisfied are you with your business operation during construction phase of BRT?
Satisfied 10 10.0
Dissatisfied 40 40.0
The table shows that only 10% are satisfied with their business operations and 90%
are dissatisfied and very dissatisfied respectively.
Fig 4: How satisfied are you with your business operation during construction phase of BRT?
23
Table 4.3.2 overall conditions of road along business
How satisfied are you with overall condition on roads along your business?
Satisfied 2 2.0
Table 4.3.2 shows that only 8% respondents are satisfied and very satisfied and rest of
98% are dissatisfied and very dissatisfied.
Fig 5: How satisfied are you with overall condition on roads along your business?
24
Table 4.3.3 Satisfaction with the operation on road construction
How satisfied are you with operations of on road construction i-e controlling, warning and traffic
through and around work area?
Satisfied 4 4.0
This table also shows the highest percentage of dissatisfaction and very
dissatisfaction. Thus from this section the respondents shows dissatisfaction from the
services of their business during the construction period.
Fig 6: How satisfied are you with operations of on road construction i.e. controlling, warning and
traffic through and around work area?
In the section respondents were asked questions about the construction impacts on
their business economic activities. Table 4.4.1 and 4.4.2 shows its statistical
description.
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Table 4.4.1 dust and noise impact on business operations
Rate the degree at which dust and noise does affect your business operations?
Somewhat 40 40.0
Table 4.4.1 shows that noise and dust due to construction have 42% and 40% very
much and somewhat impact on the economic operations of business.17% responded
neutral and just 1% responded no impact.
Fig 7: Rate the degree at which dust and noise does affect your business operations?
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Table 4.4.2 Customer lose due to construction activities
Approximately how many customers due you lose during construction activities?
somewhat 37 37.0
Table 4.4.2 describes that 82% of respondents responded in the right of customer loss
7% remain neutral and 11% responded against customer loss.
Thus this section concluded that due to construction activities a high percentage of
impact found on the economic activities of the business along the route of
construction.
Fig 8: Approximately how many customers due you lose during construction activities?
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4.5 Shift of business to alternative locations
This section asked question about the shift of business to alternative locations. Table
4.5.1 show respondent response on this question.
Somewhat 1 1.0
The table 4.5.1 shows that 96% of respondents answered against the shifting of
business to alternative location meanwhile 2% remain neutral and 2% answered on
behalf of the shifting.
Fig 9: To what extent you need your business to shift at alternative locations?
4.6 Conclusion
28
This chapter discussed the data analysis and interpretation with reference to the
literature review. The aim of this study was to identify impact of construction
activities on the local businesses The main findings of the investigation were
summarized in each section.
4.7 Discussion
The research has been conducted in the realm of brt construction zone. Businesses
following the construction zone have been questioned and surveyed. The thesis topic
was BRT construction activities and its impact on the local business. The main
objective of the thesis was to find out the adverse impact of construction activities on
the sales and revenue of the particular business. According to this the thesis explored
the effects of the construction on the lives of the businesses. The business community
following the route of the construction was badly affected. The biasness community
faced los sales. Due to construction the individuals transport route have changed and
people have suffer in more specific business operators were suffered a lot. In the due
course business managers and operators was surveyed and questioned. The route of
BRT Peshawar flowing from Hayatabad , University Town, Tehkal Payan and Sadder.
The occupying business on the route was fall in the free discussion about construction
and their business activities. The industry sectors were divided into six main business
occupied on these places including convenience stores, retails, restaurants furniture
and beauty polar /cosmetics. The discussion raised key concept about the impact of
construction activities and raised vital questions about the business recipient
satisfaction effects, sales effects and persistence expenses etc.
The searcher discussed the construction activities with the managers and operators of
the business. Majority of the manger had told that when the project was starting there
was no information available to us to take precautionary actions. Due to this course
we didn’t involve in the precautionary measurements and walk in sale are cut now
during heavy construction phase. The sales which incurred before construction was
higher than the sales now a days i-e during construction. The business operators on
the route covered by heavy construction told that neither they get any advice
committee from the authorities to guide them how to get their business operate
normally during the period of construction phase nor any information about the
project stating. We have no information about project timings and work. The
29
information about basic necessities are hidden. We have not informed when they
conduct work on electricity poles. Due to this power supply has been cut for long last
and we cannot run our operations. Same is the case with the telephone and other
necessary resource like telecommunication and water supply. The roads were
congested already and it is even more congested from prior, as of ongoing machine
work on the roads. Service roads are fully demolished and parking spots are
completely eliminated. It causes a rough flow of traffic and extreme rush of cars on
the road. Due to traffic customer are effected a lot they used to make a way on the
alternative routes. Due to this our customer are lose. Employ also get late due to
traffic issues. Even it takes 1 to 2 hours to cover distance of 4-6 KM. due to hurdles in
the traffic employ and costumers became inactive. Thus resulting difficulty for
business to make a smooth way. The managers were asked future benedicts after
construction. Majority response in appositive manners one of the human resources
manager at plaza expressed that, Economics play important role in the most decisions,
including construction. We have been expecting a positive result in the upcoming
phase i-e after completion of the construction. Business operators often claim that
new construction will creates an economic boom. In the response of the question
about alternative route most t of the businesses shown dis agreement at shifting to
alternative locations. Some of the small business usually operating on street side
shown interest to shift to alternative location if they were provide with an opportunity.
In the area of Hayatabad the business managers shown a normal behavior over the
flow of business. They told that at Hayatabad roads are not to congested and business
operating there are in a small number, there is an issue of traffic but not for long time,
traffic van shined in no time so by this reason business are in normal position.
Secondly small number of businesses operating in this area have its own parking for
their customers which is sufficient to handle the issue of parking so customer can feel
ease while getting business services. This is the main reason the business operating in
the area of Hayatabad have their normal business operation.
The only business which had shown an increase in the revenue was the auto and truck
repair shops. They argued that due to construction, heavy excavations, poor road
conditions and dust it is difficult o maintain the conditions of the vehicles’ perfect.
They argued that almost 50% of increase in sale is due to these factors. We have seen
customer in the due course whose vehicles have damaged due to a large number of
30
culverts , worse condition of roads and water spot on the roads. Thus after the
discussion with the mangers and business operators situated near the construction
zone it can be concluded that , the route followed by BRT construction ,business at
university town, Tehkal Payan and sadder have a huge impact on the business sales.
The majority of the mangers responded satisfied during construction and the auto and
truck repair shop have shown normal business operation and shown an increase in the
revenue. Thus to evaluate overall , the construction phase of BRT Peshawar
construction activities destroyed 90% of local businesses with a huge financial and
customer lose.
31
CHAPTER 5
The BRT construction activities in Peshawar city have a great negative impact on the
local business community. There is need for the systematic re-planning for the flow of
businesses during construction period. Therefore it is a challenge for provincial
authorized department to reduce the impact led by these construction activities. This
thesis investigated a negative impact on local business through collection of primary
data.
5.2 Recommendations
Dust which has shown a negative impact on air quality and also disturbs
businesses. To reduce the impact during construction phase it is necessary to
periodically spray water during rush hours (2-4 times per day)to reduce dust
and air pollution.
The raw material using during construction should be site carefully or another
way material, equipment at material site should be shifted to specified rented
area choosen for this purpose. This will provide a relief on obstruction to
business activities.
The uncertainty associated with the development and how it may impact in
business, it is difficult for business to plan for future. This is particularly
challenging for small and independent businesses inbound to construction
area. There is a need for provision of a point of contact advice and support
32
services for businesses. The following steps for provincial government are
necessary.
Legal advice
Thus this will enable effected businesses to plan ahead, minimize disruption and
provide a greater confidence for decision making and investments. Secondly The
business advice service should provide advance information about construction work.
Street vendors mainly a small restaurants and street food business are effected
by demolition. For those businesses of street vendors it is necessary that
support should be available to find similar alternative accommodations.
The knock on effect of loss of business would be reduced turnover and potential
business relocations and/or closures. This would result in reduced economic activity
and the loss of industry jobs which are an important source of employment. Thus its is
necessary for provincial government to assist these loses carefully and provide a
strong support for the confidence of the effected business community.
33
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Agnew, S., Baum, P., Croaston, M., Janzen, A., Jerabek, E., Jorgenson, B. , Senn, A.
& yang, J. (2010) The potential impact of central corridor LRT on existing University
Avenue businesses.
Harrison, R., Benjamin, T. Waldman, Tamer, E. Diraby & James, T. o’connor. (1998)
Mitigation the adverse impact of the Dallas north central expressway construction on
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Michael, W. Babcock & Jose, A. Davalos (2014) Case study of the economic impact
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Appendix
QUESTIONNAIRE
Name of Business:
Read and answer the following questions for carefully accurate evaluation.
Circle the answer which best represents your opinion.
3. How would you asses your potential sales over the following period?
1) Fourth quarter of 2017 i-e October-December to march-April.
36
a. Less than 5% increase b .Between 5% to 10% d. Over 10% increase
increase
d. Less than 5% decrease e. Between 5% to 10% f. Over 10% decrease
decrease
4. How would you assess your actual sales in the period of January to September
2017?
a. Less than 10% higher b. Between 10% and c. Over 20% higher
20% higher
d. Less than 10% lower e. Between 10% to 20% f. Over 20% lower
lower
5. How would you assess your actual sales for the period of October 2017 to March
2018?
a. Less than 10% higher b. Between 10% and 20% c. Over 20% higher
higher
d. Less than 10% lower e. Between 10% to 20% f. Over 20% lower
lower
a. Less than 10% higher b. Between 10% and 20% c. Over 20% higher
higher
d. Less than 10% lower e. Between 10% to 20% f. Over 20% lower
lower
Read and answer the following questions carefully for accurate evaluation.
Circle the answer which best represents your opinion.
Q. Question 1 2 3 4
No
1 How satisfied are you with your customers
and employ ability to assess your business
by car?
37
2 How satisfied are you with your business
operation during construction phase of BRT?
Read and answer the following questions carefully for accurate evaluation.
Circle the answer which best represent t your opinion.
Q. Question 1 2 3 4
No
1 Rate the degree at which your business relies
on traffic and transportation system?
2 Rate the degree at which dust and noise does
affect your business operations?
38
3 Approximately how many customers due you
lose during construction activities?
4 Approximately how many customers due you
lose during construction activities?
Please briefly state your opinion regarding BRT project. Is this mega project is a right
decision by provincial authorities?
39