Effects Of Construction Delays On Project Delivery In Nigerian Construction Industry. A Study Of New Idea Construction Company, Obinze, Imo State

ABSTRACT

This study evaluated the root causes of project/construction delays and its effect on the project delivery in Nigerian construction industries. Many construction companies in Nigeria are characterized by delay and poor delivery in meeting with the objectives for which they were established. The sources of data of the research include primary and secondary sources of data. However, data collection used in this research included personal interviews and questionnaires. The analysis of the result indicated that changes in government policies, corruption, poor funding and lack of project management knowledge have been the major constraints to project success in the country. Some recommendations were also put forward as a measure to reduce the incident of project/construction delay on project delivery in the country.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

The Nigerian construction industry continue to occupy an important position in the nation’s economy even though it contributes less than the manufacturing or other service industries. The contribution of the Construction industries to the national economic growth necessitates improved efficiency in the industry by means of cost effectiveness and timeliness and would certainly contribute to cost savings for the country as a whole.

A major criticism facing the Nigerian construction industry is the growing rate of delays in project delivery. Delay is a situation where the contractor and the project owner jointly or severally contribute to the non-completion of the project within the original/ budgeted time and period. In Nigeria, Aibinu A.A and Jagboro G.O. (2002) studied the effects of construction delays”. They discovered that the performance of the construction industry is poor time wise. The investigation shows that seven out of ten projects surveyed suffered delays in their execution.

Assaf, S.A., Al – Khali M and Al Hazmi (1995) investigated “causes of delay in large building construction project”. According to the investigation, timely delivery of projects within budgets and the level of quality standard specified by the client is an index of successful project delivery. When projects are delayed, they are either accelerated or have their duration extended beyond the scheduled completion date and these are not without some consequences.

However, construction projects are unique. As they may have a distractive set of objectives, they require the application of new technology or technical approaches to achieve the required result. This uniqueness makes the contingency allowance allocation based on the assumption and nutrition inadequate and unrealistic.

Albinu A.A. and Jagboro G.O. (2003) studied “the effects of construction delays ”. This study revealed that in Nigeria, 5-10% of pre-contract estimate are in most cases not allowed as contingency. This allowance was found to be inadequate contingency which implies extra financial commitments. Some who are not prepared for such extra cost resort to some form of loan to offset the unexpected costs.

Furthermore, associated delay problems can also result in dispute, arbitration, total abandonment and protracted litigation by the parties. To some extent, the contract parties through claims usually agree upon the extra cost and time elongation associated with delay. Nevertheless, this has in many cases given rise to heated argument between the owner and contractor. The question of whether a particular delay to the progress of work warrants extra cost and or extension of project duration is usually the cause of disagreement.

1.2   STATEMENT OF PROBLEM

The construction industry in Nigeria is large, volatile and requires tremendous capital outlays. A unique element of risk in the industry is the manner in which disputes and claims are woven through the fibre of construction process. Delays occur in every construction project and the significance of this delay varies considerably from project to project. An incident of delay can originate from the contractor’s organization or from any other factors interfacing upon construction project. Some projects are delayed over the years. It is therefore essential to define the actual causes of delay in order to minimize and avoid the delay in construction project.

Delay has an adverse effect on the delivery of projects. However, a large number of associated problems influence project delivery-time performance: Clients’ limited understanding of the construction process, inadequate design; poor quality constructability; poor motivation of workers; non- participatory management style and adverse physical, economical and socio – political factors.

1.3   AIM/OBJECTIVES OF THE STUDY

The aim of this study is to analyze the effect of construction delays on project delivery in Nigerian construction industry.

The objectives include:

–       To identify effects of delays in project delivery in construction industries.

–       To identify the major causes of delay in Nigerian construction industries.

–       To investigate how the effects of delay can be minimized.

1.4   RESEARCH QUESTIONS

The study is directed towards the following research questions regarding the effects of construction delays on project delivery in Nigerian construction industry. They include;

–       What are the elements of project management methods that could be applied in the reduction of the effects of delays in project delivery?

–       Should project planning scheduling and control concept be introduced in the minimization of project delays?

–       Project management methods that can be applied to reduce the effects of these delays.

1.5   HYPOTHESIS

A:

Ho: Changes in successive government policies do not contribute to project delay

Hi: Changes in successive government policies contributes to          project delay.

B:

Ho: Construction delays in Nigeria are not as a result of corruption.

Hi: construction delays in Nigeria are as a result of corruption.

C:

Ho: Project delays do not affect the nation’s economy.

Hi: project delays affect the nation’s economy.

1.6   SCOPE/LIMITATIONS OF STUDY

This research is interest in finding the effects of delays in project delivery of construction industries with a focus on New Idea Construction Company, Obinze Imo state. This study however had certain limitations on the depth of its coverage.

1. Access to the visited company’s library was a bit difficult because of too much bureaucracy.
2. Getting materials from the school library was a bit difficult as most materials needed where limited.
3. Access to other school libraries was not too easy as schools like polytechnics were on strike during the period of this research.
4. Financial constraint was a major constraint encountered during the research period.

1.7   SIGNIFICANCE OF STUDY

The outcome of this study will be of immense value to the success of project delivery in Nigeria as well as a contribution to the literature. Perhaps, the information obtained from this research can be used by government policy makers, regulators, project managers to develop better understanding and ways to curtail the effects of construction delays on project delivery in Nigerian construction industry.

Other than giving significant ideas to the policy makers in imposing rules and regulations that need to be practiced by construction companies, the findings of this study should help minimize the effects of construction delays on project delivery by construction companies. It should also help improve the quality of project management in construction industries. This research empirically lends significant general knowledge of proper project management in project delivery to construction companies.

Pages:  73

Category: Project

Format:  Word & PDF        

Chapters: 1-5

Material contains Table of Content, Abstract and References.