CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
A
major concern of stakeholders (clients, consultants, contractors, e.t.c) in Nigerian
construction industry is how to improve service delivery. Mitullah and Wachira
(2003) have reported that the development of an efficient construction industry
is an objective of policy in most countries.
The
construction industry is the pivot of any economy and a belief held in both the
developed and developing countries (Nubi. 2003). Adam (1992) emphasized that
through its contribution v to National Gross Domestic Product (GDP), labour,
employment and gross fixed capital formation (GFCF) construction industry’s
importance in the overall economy cannot be underestimated. The industry
provides the infrastructure, buildings, roads, bridges, dams, ports and other
construction products that are required for economic development.
Construction
is a $ 1.7 trillion industry worldwide (Bray, 2005). Global construction is
said to have contribution amounting to between 5 and 7 percent of GDP in most
countries and accounts for a significant part of global cross capital
formation- a little under one third ( Brays, 2005). The United Nations
Environment programme (UNEP) has noted that about one-tenth of the global
economy is dedicated to construction and operating homes and offices (UNEP,
1996). Mitullah and Wichira (2003) also stated that construction activiuty
plays a vital role in the process of economic growth and development, both
through its products (infrastructure, buildings) and through the employment
created in the process of construction itself.
The
construction industry in Nigeria is of paramount importance for employment and
economic growth (Ogunsemi and Jagboro, 2006). Presently,
the construction industry in Nigeria contributes about 3 percent to the
nation’s Gross Domestic Product (GDP) (Aganga, 2010). This is far below between
5 and 7 percent of GDP in most countries. Therefore, effort gears towards
improving the efficiency of the construction industry in Nigeria in terms of
improving on construction management techniques is worthwhile and will
contribute to better performance of the industry. This study therefore examines
the construction management techniques among contracting firms in Ibadan, Oyo
State.
A
project is made up of a group of interrelated work activities constrained by a
specific scope, budget, and schedule to deliver capital assets needed to
achieve the strategic goals of an Agency (Idoro and Patunola – Ajayi, 2009). All
projects must have a beginning and an end. The management of construction
projects requires knowledge of modern management as well as an understanding of
the design and construction process. Construction projects have a specific set
of objectives and constraints such as a required time frame for completion.
While the relevant technology, institutional arrangements or processes will
differ, the management of such projects has much in common with the management
of similar types of projects in other specialty or technology domains such as
aerospace, pharmaceutical and energy developments (Muller and Turner, 2007). Construction
Project management is the art of directing and coordinating human and material
resources throughout the life of a construction project by using modern construction
management techniques to achieve predetermined objectives of scope, cost, time,
quality and participation satisfaction (Idoro and Patunola – Ajayi, 2009). By contrast, the general management of
business and industrial corporations assumes a broader outlook with greater
continuity of operations. Nevertheless, there are sufficient similarities as
well as differences between the two so that modern management techniques
developed for general management may be adapted for project management.
(Arnaboldi et.al, 2004)
A
working knowledge of general management and familiarity with the special
knowledge domain related to the project are indispensable. Supporting
disciplines such as computer science and decision science may also play an
important role. In fact, modern management practices and various special
knowledge domains have absorbed various techniques or tools which were once identified
only with the supporting disciplines. (Arnaboldi et.al, 2004).
For example, computer- based information systems and decision support systems
are now common-place tools for general management. Similarly, many operations
research techniques such as linear programming and network analysis are now
widely used in many knowledge or application domains.
Construction project management
encompasses a set of objectives which may be accomplished by implementing a
series of operations subject to resource constraints. There are potential
conflicts between the stated objectives with regard to scope, cost, time and
quality, and the constraints imposed on human material and financial resources.
(Idoro and Patunola – Ajayi, 2009) These conflicts should be resolved at the
onset of a project by making the necessary tradeoffs or creating new
alternatives.
1.2
STATEMENT OF RESEARCH PROBLEM
The construction business in Nigeria is
a multi-billion dollar industry with hardly any year falling short of expected
windfalls befalling successful contractors who bid for construction projects,
the last 5 years has witnessed increasing patronage and profit for most
construction companies in Nigeria (Business Day Nigeria, 2010). This is
especially seen with some publicly quoted companies like Julius Berger Plc.
Costain West Africa and G. Cappa Plc which have recorded steadily rising
profits with the last two just recovering from years of consistent loses. Many
others which are not publicly quoted are rapidly expanding their operations to meet
up with greater challenges such as PW limited, Lekki Concession Company and Hitech all of which are handling
major infrastructural projects like roads and drainage reconstruction /
expansion and Land reclamation ( from the Lagos Lagoon) projects ( Business Day
Nigeria, 2010).
Recently a number of development
projects by government and private sector companies have created opportunities
for construction companies to reap massive revenues. For instance, in recent
times in most states of Nigeria infrastructural projects like road
reconstruction, housing projects, bridge building, construction of drainage, dams
rural electrification, city expansion and beautification projects among others
have been on the increase especially in Lagos, Rivers and Akwa Ibom states
where massive amounts of money running into tens of billions of dollars have
been voted for capital projects. Against this background, with more capital
investment in the construction industry in Nigeria because the nation is at the
developing stage, there is a need to
investigate construction management techniques in use among contracting firms or organization in Ibadan,
Oyo State.
1.3 SIGNIFICANCE OF THE STUDY
Nigeria has large expanse of undeveloped land
requiring road construction to link many part of the country with other parts
and construction of low cost housing to accommodate many of its city dwellers.
Also that many state governments are coming to terms with the importance of
sticking to master plans and town planning laws means that in coming years many
large scale construction projects will be embarked upon. Major infrastructures
like good road networks, that will support development are lacking and hence is
major cause of inadequate foreign investments (Business Day Nigeria, 2010).
This has prompted governments at both
state and federal levels to embark on long term infrastructure projects. State
and Federal governments are looking for alternative sources of revenue (non-oil
based sources) like taxation which depends largely on available infrastructure.
Of recent, crude oil deposits have been found in some parts of Nigeria implying
that very soon infrastructural work would begin in surrounding areas. However,
this is also dependent on security as the Niger delta is highly notorious for
security threats from militants. Therefore, good management techniques will
definitely determine the kind of output of the industry and measure the
efficiency of the industry in Nigeria with Ibadan in Oyo State as a case study.
1.4
RESEARCH QUESTIONS
From
the above information, the research question generated which this study
provides answers to are:
i.
What
are the construction management techniques in the construction industry in Ibadan,
Oyo state?
ii.
What
are the factors affecting the construction management techniques in Ibadan, Oyo
state?
iii.
What
are the impact of construction management techniques on construction cost, time
and overall performance in Ibadan, Oyo State?
1.5
OBJECTIVES OF THE STUDY
The
aim of this study is to evaluate tools / techniques for managing construction
project with a view to improving project delivery process in Ibadan, Oyo State.
The study specific objectives are to:
a)
identify and assess construction management techniques in the construction
industry in Ibadan, Oyo State,
b)
identify and assess factors affecting the construction management techniques in
Oyo state, and
c)
examine the impact of construction
management techniques on construction cost, time and quality in Ibadan, Oyo state.
1.6
RESEARCH HYPOTHESES
Ho: There are no construction management techniques in the
construction industry in Ibadan, Oyo state.
Hi: There are construction management techniques in the
construction industry in Ibadan, Oyo state.
Ho: There are no factors affecting the construction management
techniques in Ibadan, Oyo state.
Hi: There are factors affecting the construction management
techniques in Ibadan, Oyo state.
Ho: There is no significant impact of construction management
techniques on construction cost, time and quality in Ibadan, Oyo state.
Hi: There is significant impact of construction management
techniques on construction cost, time and quality in Ibadan, Oyo state.
1.7
SCOPE OF THE STUDY
The
management of construction project is a tool for achieving an efficient construction
industry. The scope of construction projects ranging from buildings (institutional,
commercial, public buildings e.t.c), civil engineering (roads, culverts,
bridges e.t.c) among others. The scope of this study is limited to some
Construction Industries some Construction Industries in Oyo State in Oyo State.
1.8 LIMITATION OF THE ESSAY
This
research covers the Assessment of Construction Management Techniques in the
Nigeria Construction Industry taking Ibadan, Oyo State as the case study area.
The essay is however limited to the
following:
·
Financial constraints
·
Time constraints and
·
Lack of access to some information
needed for the project work.
1.9 DEFINITION OF TERMS
Construction: The action of building something, typically a
large structure.
Management Techniques: Effective methods of managing that help to develop a productive
workplace.
Construction Industry: The branch of manufacture and
trade based on building, maintaining and repairing structures.