EFFECTS OF CONSTRUCTION PROJECT FAILURES AND ABANDONED INFRASTRUCTURE IN NIGERIA(A CASE STUDY OF KADUNA STATE)

EFFECTS OF CONSTRUCTION PROJECT FAILURES AND ABANDONED INFRASTRUCTURE IN NIGERIA

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Abstract

This research was an attempt to investigate the effects of construction project failures and abandoned infrastructure in Nigeria. The study also tends to examine the factors that contributes to abandoned infrastructures and project failures in Nigeria. The study investigated possible causes of project abandonment, its effects on the immediate community, contribution to infrastructural decadence and environmental pollution. A sample of 300 respondents which comprises of civil servants and contractors from the study area were purposely selected for the study. The study adopted a survey design, since this method allows determination of sample characteristics for a large group in a very short time. This study employed mixed methods research design that used both qualitative and quantitative approaches in a single study to gather or analyze data. From the findings, it was clear that nonfunctional Government policies, defective procurement procedures, incompetent contractors, defective design and so on contributed significantly to project abandonment. It was concluded that non-utilization of competent consultants and contractors, inconsistencies in Government policies, poor location of infrastructural facilities, defective cash flow and lack of adequate control in monitoring resources accounts for thousands of abandoned projects in Nigeria.

                                            CHAPTER ONE

                                        INTRODUCTION

1.1   BACKGROUND TO THE STUDY

Government projects remains an essential aspect of development to the citizens and residents of every nation, as it forms part of the building blocks that support national growth. The successful execution of projects and infrastructures serves as a visible indicator of development in a country (Hanachor, 2013). Despite this fact, in developing countries such as Nigeria, majority of projects embarked on by the government are classified as failed projects (Hanachor, 2013). Most research indicates that some of these government embarked projects have failed (Frimpong, 2003; Sambasivan & Soon 2007; Sweis, 2008; Shehu, 2014). As a result, extant literature has been devoted to discussions on these failed construction projects; nevertheless, they have mainly been discussed in relation to factors (causes) that lead to failure.

The effects of project failure are numerous both in developed and developing nations, and studies have indicated that large amounts of funds have been lost by governments as a result of failed projects (Fabian and Amir, 2011; Damoah, 2015). These factors which lead to project failure consequently lead to stagnant growth in national development (Nweze, 2016). In order to curb these menace, various authors have recommended more investigation into the causes and effects of projects failure especially in developing countries (Damoah, 2015; Taherdoost and Keshavarzsalehc, 2016).

According to PMI (Project Management Institute PMBOK) guide (2013), a project is a temporary endeavour which is aimed at creating a unique result. Note (2015) however, defines a project as a series of unique and related activities with a goal that must be achieved at a set time, within its cost constraints and in accordance with set specifications. There is no clear cut definition for project failure, and there seems to be differences in its acceptable definition. Nzekwe et al. (2015) however suggest that regardless of a project’s completion time and cost, it can still be considered as failed if the project does not fulfil its required purpose.

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). Thus the motivation of this research is to evaluate the effects of construction project failures and abandoned infrastructure in Nigeria.

1.2   STATEMENT OF THE PROBLEM

The abandonment of a projects gives an adverse effects on parties such as the developer, contractor, consultant and client. Most projects failures and abandoned infrastructures in Nigeria is due to a myriad of problems ranging from imperfect  project  design,  poor  stakeholder  management,  delays  between  project  identification  and startup,  delays  during  project  implementation,  cost  overruns,  and  coordination  failure. Currently in Nigeria, the rate of project failure is alarming and these failed projects have high financial implications (Akande et al., 2018) which consequently reduce the rate of development. The abandonment of a public sector construction project usually leads to a loss of opportunity by the public not being able to benefit from the intended project purpose. On  the  other  hand,  should  additional  funds  be  made  available  to  revive  such  projects,  this  would invariably  incur  extra opportunity  cost of foregoing  the project’s  original  set objectives (Hoe, 2013). According to (Onyekpere, 2011), the impact of failed projects in terms of cost and schedule overruns on a nation’s economy is enormous as the new costs incurred as a result of these scenarios would have been  deployed  for  the  development  of  other  important  projects  for  the  overall  benefit  of  the  entire citizenry. The issue of project failure and abandonment has been left unresolved for a  very long time and this has created obvious room for a multiplier effect on the construction industry specifically and the entire economy as a whole (Ewa, 2013). It is from the above stated experience that, this research work attempts to find possible ways of eradicating the challenges associated with construction project failure and abandoned infrastructure in Nigeria.

1.3   OBJECTIVES OF THE STUDY

The primary objective of this study is to examine the effects of construction project failure and abandoned infrastructure in Nigeria. The specific objectives are:

1. To determine the major root causes that hinders the success of many construction projects and infrastructures 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

This study will be guided by the following research questions

1. Are there major root causes of construction project failure and abandonments in Kaduna State?
2. Are there effect of construction project failure and abandonments in Kaduna State, Nigeria?
3. Are there possible remedies to the problem of construction project failure and abandonments in Nigeria?

1.5 RESEARCH HYPOTHESES

H₀: construction project failure and abandonments does not have any effect on infrastructural development in Kaduna State.

H₁: construction project failure and abandonments does have an effect on infrastructural development in Kaduna State.

H₀:  there is no relationship between construction project failure and project abandonments

H₂: there is a relationship between construction project failure and project abandonments.

1.6   SIGNIFICANCE OF THE STUDY

There are several valuable benefits expected by implementing this study. All construction contracts allocate time between owners and contractors. Hence the significance of this study would better inform improved project relationships and communications and enhance construction administration practices between owners and contractors. The significance of establishing the issues related to the construction project delays will be to provide a greater insight and understanding on the causes of delays particularly among the main project players: contractors, client and consultants. It is hoped that these findings will guide efforts to improve the performance of the construction industry and will be useful to the construction players. Therefore, these findings might encourage the practitioner to focus on delay problem that might have existed in their present or future projects. Other than that, this study is expected to provide a better ways and methods in delivering construction projects by minimize the major causes of delays. The findings would also enhance and broaden time of wide range of risks that could materialize during the design, and construction phases of a project which would subsequently result in better and more prudent designs specifications. This study will educate the general public and the experts in the construction projects industry on the causes of construction project failure and abandonments in Nigeria with a view of proffering solution to the problem.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study on effects of construction project failure and abandoned infrastructures in Nigeria will cover the issues of abandoned projects, failed project and all other abandoned infrastructural facilities in Kaduna State. Data collection and analysis was therefore limited to the data received from project supervisors in the field of project constructions in Kaduna Metropolis. Therefore this research was constrained by the following factors:

Financial Constraints

Bearing in mind the economic state of the nation, it was found difficult in making both ends meet, because of the exorbitant nature of things nowadays in travelling for the collection of data needed for the project.

Time Constraints

Looking at the interval between the resumption and vacation of the final semester for the project to be completed, the time given seemed to be short for the collection of required information for better work to be done.

Non-Availability of Material

During this project, it was noticed that the required materials needed for the project are not documented. Those that were documented lacked access to the storage facilities where they can be reached.

1.8 DEFINITION OF TERMS

Project Failure: A project is considered a failure when it has not delivered what was required, in line with expectations.

Infrastructure: Infrastructure is the set of fundamental facilities and systems that support the sustainable functionality of households and firms. Serving a country, city, or other area, including the services and facilities necessary for its economy to function (O’Sullivan, 2003).

Project delays: Construction delays in residential and light construction are often the result of miscommunication between contractors, subcontractors, and property owners. These types of misunderstandings and unrealistic expectations are usually avoided through the use of detailed critical path schedules, which specify the work, and timetable to be used, but most importantly, the logical sequence of events which must occur for a project to be complete.

Timely delivery: A timely event happens at a moment when it is useful, effective, or relevant.  

Projects: In project management a project consists of a temporary endeavor undertaken to create a unique product, service or result. Another definition is: a management environment that is created for the purpose of delivering one or more business products according to a specified business case.

1.9 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding.  Chapter five gives summary, conclusion, and recommendations made of the study.

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