Study of Factors Affecting Construction Cost Performance in Nigerian Construction Sites
Chapter One
Objectives of study
- The research aims to determine the various factors that impact project cost performance.
- To evaluate the rate and effect of delay and cost overrun in completion of construction projects in Nigeria.
- Investigating the order of severity of the factors, and recommending ways of curtailing the effects
CHAPTER TWO
LITERATURE REVIEW
Introduction
This section involves an evaluation of the literature which provides the academic background to the area of study. Here the views of different authors and their attempts relevant to the topic have been described. As secondary sources, Literature reviews do not report new or original experimental work, but form the basis for research in nearly every academic field. According to Rowley and Slack, (2004:31), ‘‘All research needs to be informed by existing knowledge in a subject area’’. Lewis and Thornhill (2012), explained that “an essential preliminary task when undertaking a research study is to go through the existing literature in order to acquaint with the available body of knowledge in the area of interest’’.
The main purpose of Literature review is to both substantiate and clarify the Research Subject as well as ensure that the Research Question and Hypothesis are corroborated in an existing Research and there is consistency between the Literature review and the rest of the dissertation (Saunders et al, 2009). According to Hofstee (2006:104), ‘‘Literature review should be a critical evaluation of the previous writing that is relevant to what you are doing.
‘Critical’ here is characterized by careful evaluation and judgement, ‘not’ marked by a tendency to call attention to errors and flaws’.
Construction industry
The Construction Industry is an economic investment and its relationship with economic development is well known. This Industry is made up of companies that undertake both minor and major construction projects in a Nation. It is volatile and dynamic in nature and requires tremendous capital. A unique element of risk in the industry is the manner in which disputes and claims are woven through the fiber of the construction process. As an essential component in socio-economic development of any nation, the industry often acts as a catalyst to stimulate the growth of a nation’s economy. Many studies have highlighted the significant contribution of the Construction Industry to national economic development (Myers 2013). Although, some argue that the extent of its contribution is not always clear, others have argued that the Construction Industry can be used to regulate the economy, while others tend to differ. Some have argued that the contribution is limited to short term. There are also those who argue that it is economic growth that drives the Construction Industry rather than the industry advancing the economy, i.e. the Construction Industry is not a driver of economic prosperity rather it only follows the “path” defined by the total economic growth rate.
Construction Industry is a major index factor in the social and political integration of the society and ranks as one of the major budgetary areas of developing economies (Nwachukwu, 2008). The Construction Industry has been proven to stimulate rapid economic growth of any nation. There cannot be much progress in national development without the provision of basic infrastructure. This sector is a crucial factor of competitiveness in the economy as it provides the infrastructure and buildings on which every other sectors relies on. Saleh (2009) stated that “Construction is considered unique in that it can stimulate the growth of other industrial sectors”. According to Lewis (2011) one of the most dynamic and responsive industrial sector is that of construction. It is an industry in which the output is usually visible, which gives it political appeal, as well as having strong backward and forward linkages with other industries, which makes it a powerful tool for economic manipulation. Construction Industries are desired mainly for the services which they help to create as most business, social, religious, economic, industrial activities etc. operate on her structural base (Nwachukwu, 2008).
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
The study design was cross sectional. Both quantitative and qualitative methods were used in the study. The researcher employed a correlation technique which was undertaken in order to ascertain and be able to describe the characteristics of contract planning measures and performance in the site construction projects in Ogun State.
Sample and sampling technique
Field survey was carried out with 100 questionnaire distributed and 67 were used for analysis of response from construction practitioners selected randomly from population of construction firms, the data generated there from is thus a reflection of opinion of workers of the sampled firms.
Sources of data
Primary data
The study primarily employed the use of self-structured questionnaire. The questionnaires were distributed to the respondents in the study area.
Secondary data
Secondary data were collected with the aid of Journal articles and past works. Simple severity index was used in determining the extent to which the variables were accorded and their order of priority.
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
Results
The background information about the respondent is as presented in the table below.
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
Conclusion
The objective of the research work had been achieve visa -a-vis, studying factors affecting cost performance on construction sites. More so, the causes of construction delays and failures in Nigeria has been linked to communication barrier, high level of corruption within the government and construction industry, low level of project management awareness, etc These factors can be brought to the barest minimal through increased knowledge and competency level in project management by contractors, high level of stakeholders’ influence, effective government policies and above all a well develop mitigation strategy.
Earned Value Management as good mitigation strategy is very essential in monitoring work progress as well as the scope, cost and time. If this is adopted and strictly adhered to, it will be a desirable end to the delays and failures experienced in the Nigeria Construction Industry. This is achievable when mitigation strategies are viewed as a positive process and the most creative task of contractors and project managers. This would help generate achievable expectations and increase control on project delays in Nigeria.
The research concluded by identifying these factors as the major ones that result in cost overrun on construction sites.
- Inadequate planning
- Contactors project inexperience
- Inflation
- Incessant variation order
- Change in project design
- Project complexity
- Shortening of contract period
- Fraudulent practices.
Recommendation
To this end therefore, in order to prevent occurrence of cost overrun or a practice action towards prevention of such, the following are recommended:
- Adequate planning breaking of project planning into short term achievable goals, medium term planning and Long term planning
- Studying of project history for possible application on another similar projects
- Bulk purchase of material
- Proper design of the project during design stage so as to avoid. Undue on-project variation establishing fraudulent detecting system or system of individual accountability to discourage pilfering, stealing and other related vices.
References
- Ashworth, A. (1994) Cost Studies of Building. Second Edition, Longman Scientific and Technical. Harlow. England.
- Bathurst, P.E and Butler, D. A (1980) Building Cost Control Techniques and Economics. Second Edition. Heinemann. London.
- Dissanayaka, S.M and Kumaransammy, M.M. (1999) Comparing Contributory Time and Cost Performance in building projects. Building and Environment, 31(6), 569-578.
- Ferry, D.J; Brandon, P.S and Ferry, J .D. (1998) Cost Planning of Building. Seventh Edition. Blackwell Science Limited. Hosney Mead. London.
- Harris, J.O and MacCaffer, R. (2005) Modern Construction Management. Iowa State Press. Fifth Edition, Blackwell Publishing Company. Ames, Iowa.USA.
- Jagboro, G.O. (1998) An Evaluation of the factors that cause delays on Construction Project in Nigeria. African Journal of Development Studies, 1(1&2) Pg 105-114.
- Kerzner, H.C. (1998) Project Management. Sixth Edition. John Wiley and Sons. Incorporated .Canada.
