Causes Of Construction Project Failures And Abandonment In Nigeria

ABSTRACT

The objective of this study was to identify possible factors that would minimize or contain failure and abandonment of construction projects, evaluate the identified factors in their order of importance. Data on the study variables were collected through structured questionnaire from construction firms located in State of Osun (considering Oshogbo, Ile-Ife and Ilesa) with wealth of experience in failed and abandoned public sector construction projects. Respondents were approached personally to collect the data. A total of three hundred (300) questionnaires were distributed while two hundred and fifty three (253) were retrieved and used for analysis. Various statistical tools such as descriptive statistics, cronbach’s alpha test, as well as relative importance index with the aid of SPSS and Microsoft Excel were applied for data analysis and inference. The results of the study revealed that nine factors were critical in containing failure and abandonment of building construction projects in Nigeria.

TABLE OF CONTENTS

COVER PAGE

TITLE PAGE

APPROVAL PAGE

DEDICATION

ACKNOWELDGEMENT

ABSTRACT

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE PROJECT

• PROBLEM STATEMENT
• OBJECTIVE OF THE PROJECT
• RESEARCH QUESTION
• SIGNIFICANCE OF THE STUDY
• SCOPE/LIMITATIONS OF THE STUDY
• LIMITATION OF STUDY
• DEFINITION OF TERMS

CHAPTER TWO

LITERATURE REVIEW

• REVIEW OF THE STUDY
• PARTIES INVOLVED IN PROJECT EXECUTION
• CAUSES OF ABANDONED BUILDING PROJECTS
• CAUSES OF ABANDONED BUILDING PROJECT BY THE CLIENT
• CAUSES OF ABANDONED BUILDING PROJECT BY THE CONTRACTOR
• CAUSES OF ABANDONED BUILDING PROJECT BY THE CONSULTANTS
• ABANDONMENT OF PROJECTS CAUSED BY ARCHITECTS
• ABANDONMENT OF PROJECTS CAUSED BY ENGINEERS
• EFFECTS OF ABANDONED BUILDING PROJECTS

CHAPTER THREE

METHODOLOGY

• PREAMBLE
• SAMPLE SELECTION
• POPULATION OF THE STUDY
• SAMPLE SIZE
• ADOPTED SAMPLING TECHNIQUE
• RESEARCH INSTRUMENT
• DATA COLLECTION AND ANALYSIS

CHAPTER FOUR

4.0  RESULTS OF DATA ANALYSIS AND DISCUSSION OF FINDINGS

• PREAMBLE
• GENERAL PARTICULARS OF RESPONDENTS
• CHARACTERISTICS OF PROJECTS SAMPLED
• RESPONSE ON THE CAUSES OF ABANDONED BUILDING PROJECTS
• RESPONSE ON THE EFFECTS OF ABANDONED PROJECTS
• SUMMARY OF FINDINGS

CHAPTER FIVE

• CONCLUSION
• RECOMMENDATION

APPENDIX

QUESTIONNAIRE

CHAPTER ONE

• INTRODUCTION

1.1                                       BACKGROUND OF STUDY

Abandoned projects and construction failure including building and other civil engineering infrastructure development project like houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria. Osemenan (1987) reported that Nigeria has become the “world’s junk-yard of abandoned and failed projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the building and construction industry can experience such magnitude of project failure and abandonment. According to another report by Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated cost of above N 300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment and construction project failure is been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole. The building and construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experience an increase in building and construction activities, but in a depressed economy, the incidence of project abandonment and construction failures tends to be more prevalent. Akindoyeni (1989) qualitatively reasoned that some of the causes of project abandonment and construction failure in Nigeria are deaths of client, inability of client to attract fund and lack of good planning.

The abandonment of development projects is the act of discontinuing any activities or maintenance works on such development project within a time frame of the contract agreement and with no intention of returning back to the development (Spelman, 1993). Similarly, O’Flaherty (1993) while reflecting on property development projects suggest that it is when an owner or developer is ceasing to provide the required maintenance management to a developed property. There could also be construction failure due to improper planning.

However, real property development projects being a capital intensive undertaking should be critically analyzed to ascertain its feasibility and viability before embarking on it. But, on several occasions and as it had been observed, governments, contractors and agencies have abandoned development projects mid-way into construction and completion.

The causes and effects of these development projects abandonments and construction failure are not just peculiar to a particular reason rather cut across several reasons (Ayodele and Alabi, 2011), and as well as creating a total dwindling effects on the values of developed properties located close and within the vicinity. The expected prominence of any earmarked development projects is to be completed, while at the same time, adding values to the built environment aesthetics. Although, development projects are temporary endeavors undertaken to create a unique product and services with a defined beginning and ending date (Gardner, 2005). The accomplishment of such purposes should be realized at all times otherwise needless of such development (Gardner, 2005). The development projects specific in the study framework is infrastructural projects (such as; house, electricity, road, schools, and drainage). However, the study purpose is to investigate and assess the causes and effects of development projects abandonment  and construction failure in Nigeria.

1.2   STATEMENT OF THE PROBLEM

The unceasing abandonment and failure of development projects is so shocking in the developing countries such that Nigerian has remained one of the countries in such difficulty (Ayodele and Alabi, 2011; Kotangora, 1993; Osemenan, 1987). Therefore, the significance that the incessant abandonment of projects and construction failure would bring several effects on the aesthetics of the environment, real properties and its values and the economy cannot be overemphasized since some of the development projects provide the basic services that should meet the needs of the people. However, this study will examine the causes of construction project failure and abandonments in Nigeria.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1. To examine the causes of construction project failure and abandonments in Nigeria.
2. To examine the effect of construction project failure and abandonments in Nigeria.
3. To determine the solution to the problem of construction project failure and abandonments in Nigeria.

1.4   RESEARCH QUESTIONS

1. What are the causes of construction project failure and abandonments in Nigeria?
2. What is the effect of construction project failure and abandonments in Nigeria?
3. What is the solution to the problem of construction project failure and abandonments in Nigeria?

1.6   SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1. This study will educate the general public and the experts in the building industry on the causes of construction project failure and abandonments in Nigeria with a view of proffering solution to the problem.
2. This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study on causes of construction project failure and abandonments in Nigeria will cover the issues of abandoned projects, failed project and all other abandoned infrastructural facilities.

1.8       LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

• DEFINITION OF KEYWORDS

ABANDONMENT is the act of giving up on an idea or stopping an activity with no intention of returning to it (Oxford, 2005).

PROJECT is a unique Endeavour to produce a set of deliverables within a clearly specified time, cost and quality constraints (PMG, 2003). A project is a series of tasks, which has a start, middle and an end. Therefore, the abandonment of building project can be defined as an act of giving up on or stopping a building project with no intention of returning to it.

REFERENCES

Akindoyemi, A. (1989), the Management of Abandoned Project, Journal of Nigerian Institute of Building, Vol. 1, Iss. 2, pp. 27.

Ayodele, E.O. and Alabi, O. M. (2011), Abandonment of Construction Projects in Nigeria: Causes and Effects; Journal of Emerging Trends in Economics and Management Sciences (JETEMS), Vol. 2, Iss. 2, pp. 142-145.

Gardiner, P.D. (2005). Project Management: A Strategic Planning Approach: Palgrave Macmillan, USA and UK.

Kotangora, O. O. (1993); Project Abandonment, Nigerian Tribune.

O’Flaherty, B. (1993) Abandoned Building: A Stochastic Analysis; Journal of Urban Economics, Vol. 34, pp. 43-74.

Osemenan, I. (1987); Project Abandonment; New Watch Magazine, Vol. 1, pp. 15.

Spelman, W. (1998); Abandoned Buildings: Magnets for Crime; Journal of Criminal Justice, Vol. 21, National Vacant Properties Campaign.

CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

• CONCLUSION

This study has shown factors which contribute to the causes of abandoned building projects, especially the various activities of the parties within the construction industry which include withdrawal/late honouring of certificates of payment, breach of contracts, indiscrimination award of contracts and corruption on the part of the public clients and also, the failure of the client to make fund available.

Furthermore, the study also reveals the role of consultants in abandoned projects, which include; producing drawings, assessing client’s financial capacity, specifications and modification. These tends to pose a great task if relevant safety measures are not put in place and creating problems for the contractors to cope with, which may eventually lead to project abandonment.

Also, the role of contractors in project abandonment is also reveal, which are lack of proper coordination of subcontractors and other specialist firms, lack of schedule of plants, equipments and materials, poor management skills, improper supervision of structural works, technical deficiency and lack of good incentive scheme. All these must be checked to reduce project abandonment.

In the course of the study, it was discovered that the abandonment of building projects also have effects on clients, consultants, contractors, the economy and the society at large. Therefore to reverse the effects proper measures must be taken by the clients, professionals and the government, in order to improve the society.

In conclusion, the majority of the respondents are of the opinion that there is need to know the clients financial capacity before embarking on any project. There is also need for the architects to be on site to monitor the progress of work and making sure it conforms to plan. Some of the respondents also stated that the parties involved in the construction industry (i.e. the clients, consultants and contractors) should try and fulfill their agreement to the last letter, government should ensure accessibility to fund by both public and private developers in all our financial institutions and cost of building materials should be reduced by government policy.

• RECOMMENDATIONS

The research suggested the various means by which all the causes and effects of abandoned building projects in the construction industry can come to an end. This includes;

1. Client’s financial capacity should be known before embarking on any project.
2. Architects should ensure proper monitoring of progress of work and making sure it conforms to plan.
3. The parties involved in the construction industry (i.e. the clients, consultants and contractors) should try and fulfill their agreement to the last letter.
4. Government should ensure accessibility to fund by both public and private developers in all our financial institutions.
5. Cost of building materials should be reduced by government policy.