THE EFFECTS OF DELAYS ON CONSTRUCTION DELIVERY IN NIGERIA
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Abstract
Delay is one of the biggest problems often experienced on construction project sites. Delays can instigates negative effects such as increased costs, loss of productivity and revenue many lawsuits between owners and contractors and contract termination. The aim of this project is to investigate the effects of delay on building construction project delivery time. Random sampling technique was used in this study. Population sample of 200 was used in this work. A total sample of one hundrd and thirty three (133) was deployed. A structured questionnaire was used in data collection. There are many factors that induce delay on construction projects, however in some of identified factors includes: lack of funds to finance the project to completion, changes in drawings, lack of effective communication among the parties involved , lack of adequate information from consultants, slow decision making and contractor’s insolvency, variations among others.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Ever since the dawn of civilization, man has indulged in some form of construction activity. In most countries, construction activity constitutes 6-9% of the gross domestic product (GDP) and more than half of the fixed capital formation as infrastructure and public utilities required for economic development (Chitkara, 2009). Like most developing countries such as Saudi Arabia, Libya and Malaysia, a major criticism faced by the Nigerian construction industry is the growing rate of delay in project delivery (Assaf, Alkhalil and Al-Hazmi, 1995; Saleh, 2009 and Yong, 1988). Majority of the construction projects in Nigeria experience delays which in turn lead to disputes, arbitration, litigation and sometimes the total abandonment of the project. In construction, the term “delay” refers to something happening at a later time than planned, expected and specified in a contract or beyond the date agreed upon for the delivery of a project (Pickavance, 2005). Research has shown that timely delivery of projects within budget and to the level of quality standard specified by the client is an index of successful project delivery (Chan and Kumaraswamy, 1994). The investigation of Odeyinka and Yusuf (1997) shows that seven out of ten projects surveyed in housing projects in Nigeria suffered delay in their execution.
Construction industry in Nigeria is faced with a lot of problems, among which is delay in project execution. It has been researched, that delay is a major setback in the construction industry in Nigeria. The problem of delays in the construction industry is a global phenomenon. In Nigeria, it was observed that the performance of the construction industry in terms of time was poor. . Chan and Kumaraswamy [1997] studied delays in Hong Kong construction industry. They emphasized that timely delivery of projects within budget and to the level of quality standard specified by the client is an index of successful project delivery. Failure to achieve targeted time, budgeted cost and specified quality result in various unexpected negative effects on the projects Normally, when the projects are delayed, they are either extended or accelerated and therefore, incur additional cost. The normal practices usually allow a percentage of the project cost as a contingency allowance in the contract price and this allowance is usually based on judgment. Although the contract parties agreed upon the extra time and cost associated with delay, in many cases there were problems between the owner and contractor as to whether the contractor was entitled to claim the extra cost. Such situations, usually involved questioning the facts, causal factors and contract interpretation. Therefore, delays in construction projects give rise to dissatisfaction to all the parties involved and the main role of the project manager is to make sure that the projects are completed within the budgeted time and cost.
The motivating factor for this study is the need for awareness on the effects of these delays on construction projects in Nigeria. The study area represents an area of rapid construction development observed in the number of on-going projects in the city. The question of how the problem of delays can be solved are considered and addressed in this study.
1.2 STATEMENT OF THE PROBLEM
Construction is an industry that involves complex and dynamic processes. It consists of successful coordination of multiple discrete business entities such as professionals, tradesmen, manufacturers, trade unions, investors, local authorities, specialists, trade contractors and others. Construction projects impact on a nation’s economy. Successful completion of construction projects leads to wealth creation; socio-economic growth and improved standards of living amidst the numerous advantages of construction project, most construction project suffer a major delay in terms of delivery period. It is on these note that the researcher intends to investigate the effect of delay on construction delivery in Nigeria.
1.3 OBJECTIVE OF THE STUDY
The main objective of the study is to investigate the effects of delay on construction delivery in Nigeria. But for the successful completion of the study, the researcher intends to achieve the following objectives;
- To ascertain the effects of delay on construction delivery in Nigeria
- To investigate the impact of delay in construction on the life span of the project
- To ascertain the causes of delay in construction project delay in Nigeria
- To ascertain the relationship between delay in project delivery and project abandonment.
1.4 RESEARCH HYPOTHESES
For the purpose of the study, the following hypotheses are formulated by th
the researcher;
H0: there is no relationship between project delay in delivery and project abandonment.
H1: there is a significant relationship between project delay in delivery and project abandonment.
H02: there is no effect of delay on construction delivery in Nigeria.
H2: there is a significant effect of delay on construction delivery in Nigeria.
- SIGNIFICANCE OF THE STUDY
At the completion of the study it is believed that the study will be useful to the construction industry in Nigeria as the study will educate them more on the dangers of project or construction delay as the study will show the effect of delay on project delivery. The study will also be useful to the contractors who are awarded the contract of construction, as the study emphasis the benefit of timely completion and delivery of the projects. Study will also be beneficial to researchers who intends to embark on study in similar topic as the study will serve as a guide to their study. Finally the study will be beneficial to academia’s students and the general public.
- SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers the effects of delays on construction delivery in Nigeria. But in the cause of the study, the researcher encounters some constrain in the cause of the study
(a)Availability of research material: The research material available to the researcher is insufficient, thereby limiting the study.
(b)Time: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
(c)Finance: The finance available for the research work does not allow for wider coverage as resources are very limited as the researcher has other academic bills to cover
1.7 DEFINITION OF TERMS
Delay: a period of time by which something is late or postponed.
Contract
A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the civil law tradition. Contract law concerns the rights and duties that arise from agreements
Construction
Construction is the process of constructing a building or infrastructure. Construction differs from manufacturing in that manufacturing typically involves mass production of similar items without a designated purchaser, while construction typically takes place on location for a known client. Construction as an industry comprises six to nine percent of the gross domestic product of developed countries
Contract delivery date
Contractual Delivery Date (often mentioned as CDD) is a term used by Openreach, the infrastructure division of the BT Group in the United Kingdom. It represents the date when the construction project will be delivered to the client in a fully functional state.
1.8 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 its 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 also recommendations made of the study.
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