ABSTRACT
The main objective of this study was to identify the factors affecting delay and cost performance in the building maintenance. Project 6 building maintenance was chosen for this study out of 18 buildings in Lagos because it was the closest project to my living area and researcher witnessed work stoppage for a long period of time, motivating me to conduct research on the factors that cause delays and cost performances. It is a delayed project relative to its baseline schedule time and cost, planned time 7/1/2015 for only one years to 8 month, which was expected to be completed 7+ in 24 months, 4+ in 18 months, with works running concurrently, but it has now taken 48 months with an 89.24 % performance .To collect both qualitative and quantitative data for the analysis, a mixed method research approach was used. The major factors of delay were identified using a questionnaire and an interview. A total of 39 questionnaires were distributed to the project's three key groups of participants, namely the owner, consultant, and contractors, and three of them participated in the interview. Explanatory (causal) research method was used to analyze the results. The data from the survey was statistically analyzed. The most significant factors influencing delay and cost performances were identified using the relative important index process. The respondents' level of agreement/disagreement on the causes of delays and cost performances was also calculated using Spearman's correlation coefficient analysis. The study's findings showed that the main factors affecting of construction delays and cost performances in buildings were Fluctuation of material price, Poor planning and scheduling, Poor inspection, Less responsibility for the work, Lack of government control, Inadequate time estimation , Poor monitoring and evaluation, Scarcity utility, Less follow up of progress and improper site management for time overrun and Less productivity and inefficiency of equipment, Inflationary increase of materials price, Un periodic maintenance cost of machineries, Change of consultants for design, supervision and contract management, Late delivery of material on site, Unskilled personnel , Inefficient material management, Suspension of work, Low experience of project managers and Low experience of consultants for cost performances.
Keywords: condominium project delay, client, contractor and consultant, time overrun, cost performance
CHAPTER ONE
INTRODUCTION
This chapter deals with background of the study, significance of the study, scope of the study, limitation of the study, limitation of the study, objective of the study and organization of the study.
1.1 Background of the study
The construction industry is critical to a country's physical growth in order to promote other social and economic developments. This industry is regarded as a national economic locomotive (Naveenkumar and Prabhu, 2016). It is important for economic development not only because of its high jobs and income generation potential for a large number of people, but also because it makes major construction materials available locally, improving the economy of industry, trade, social services, and agriculture. The greater the degree of self- reliance, the more energy, engineering, labor, materials, equipment, and market trade are given from within the national economy (Rathi and Khandve, 2013). Since the construction industry buys goods and services from other businesses in other industries, it has grown into a large market (Arcila, 2012). This means that the construction industry will help to promote a more balanced distribution of the benefits of economic development, thus alleviating some of the issues associated with income inequality. As a result, not only does the construction industry contribute to national economic development, but it also has a huge impact on the performance and competitiveness of other industries.
Since 1991, Nigeria's government has liberalized the economy, shifting from a state- controlled to a more market-oriented economy. In line with this agenda, the government devised a number of policies and initiatives aimed at transforming the country into a middle- income nation by 2025. GTP, one of the country's plans, is aimed at bringing rapid economic growth and assisting in the nation's transition to the desired higher level of economy (Construction contractors association of Nigeria, 2013). Nigeria is undergoing large-scale development efforts. Housing, roads, railways, lakes, airports, colleges, schools, and hospitals, as well as water supply and sewerage, power, and telephone lines, are all examples. The Nigerian government now recognizes the construction industry's contribution to jobs, growth, and long-term development. Its promotion and growth has a huge impact on other industries' production and productivity.
UN-HABITAT (2011) specified, Lagos is mostly categorized by low provision of inadequate housing development, overloaded housing that lacks basic services such as potable water, electricity, sanitation and do not meet minimum standards of living. To overcome the severe housing shortage of Lagos, constructing cost efficient condominium houses, establishing fair housing transfer system and timely delivery of houses to enable residents was an option put in place.
The government of Nigeria has, therefore, planned and started facilitation of condominium housing program in the city since 2003 and financial source of those buildings includes bank loan, city budget and down payments from beneficiaries of the project. The independent source of finance is Commercial Bank of Nigeria (CBE) which provides funding directly to housing development program and loan service to the beneficiaries (Integrated Housing Development Program [IHDP], 2008).
Finally, the aim of this study is to assess and establish the applicability of previous studies on the factors that affect delays and cost performances in current projects. As a result, attempts are being made to identify the primary causes of delays and cost performances. In the housing construction practice of the Lagos Housing Development Project Office (AAHDPO) in general and in Lagos: 6 building maintenance project Project Office (AAP6HDPO) in particular; and forward reliable and timely possible solutions as a set of recommendations for future activities.
Statement of the Problem
Nigeria is one of the fastest rising developing countries spending house construction program as an effort for development, work opportunity and infrastructure development (UN- HABITAT, 2011). Construction industry is very big, difficult, and needs huge funds‘ investments. Public construction projects in Nigeria are parts of the country‘s development initiative. It shares considerable amount of the country‘s scarce financial resources. Mahamid (2013)
In Nigeria, the construction industry is the highest recipient of government capital budget in terms of government development and investment program. Consequently, public construction projects consume an average annual rate of nearly 60% of the government‘s capital budget (Ministry of Works and Urban Development [MoWUD], 2006). Worku and Jha (2016) also noted that construction delays are common problems within projects in Nigeria. According to Tekalign (2014), 79.06% of public construction projects failed to meet their objective in Nigeria and resulted in average of 26.2% delay. Abdo (2006) states 94% of the public building projects have encountered delays. Moreover, the delays extended three times than actual plan and the average delay is found to be 89.9%. Similarly, Worku and Jha (2016) show that, in Nigeria, only 8.25% construction projects have been finished in the original targeted completion date. The remaining 91.75% delayed three times than targeted contractual time.
From 18 projects in AAIHDP (2018) Project 6 building maintenance is one and it was started in June 2015. This project was to construct G+4 in 18 months and G+7 in 24 months. Although they were planned to be completed in 1 years to 8 months, 48 months elapsed with 89.24% performance. This delay is three times than schedule baseline. From 18 housing construction projects in Lagos, Project 6 was chosen purposively for this study because it is the most delayed project when compared to its baseline plan and near to the researchers (AAIHPO, 2018).
From this, one can reason that project delay has negative implication on economy since they share significant amount of scarce resource of the country. Project 6 building maintenance shares considerable amount of the project‘s scarce resources. According to AAIHDP (2018) capital budget of project is N 881,529,529.05. But with this specified budget construction of this condominium house project is delayed three times than baseline plan. If the causes for the delay of such a project are not identified and the corrective project management decisions are not taken in time, the project may incur extra cost and extension of project time, which gives rise to dissatisfaction to all the parties, involved which nowadays is becoming a serious problem. Project 6 building maintenance cannot be an exception.
Although the cause of delay varies from project to project, since every project has its own unique characteristics; the multiple effects seem to be time overrun, budget overrun, poor quality, bad public relation, arbitration, litigation, disputes and claims and total abandonment. Therefore, this research intended to identify the real causes and effects of delay in Project 6 building maintenance.
Many studies have been done in this respect with a tool of Relative Importance Index (RII). However, relationship or correlation of causes and effects on delay of building maintenance projects were uncovered.
A methodology that requires sound engineering judgment is needed for the effective implementation of construction projects and holding them within projected costs and schedules (Al-Najjar, 2008). Despite the extensive project management experience, delays and cost performances are an unavoidable part of most projects. The project's efficiency and progress are measured in terms of cost, time, and quality.
The Nigerian housing initiative, like other construction projects, is plagued by time and cost performances. Housing construction in Lagos was not completed on time and budget due to a variety of reasons, as detailed in table 9 and table 12. Improving construction quality by cost-effectiveness and timeliness will almost certainly result in project cost savings. However, delays and cost performances in housing developments continue to be a bottleneck to project completion. As a result, the aim of this research is to identify factors that contribute to delay and cost performances, as well as their impact on housing construction projects, and to make recommendations for reducing delays and overspending in Lagos: 6 building maintenance project.
Research questions
The following are the basic research questions:
• What does the existing performance of 6 building maintenance project in terms of time and cost
• What are the Factors affecting delay and cost performance in building maintenance projects in Lagos: 6 building maintenance projects?
Objectives of the Study
This study has the following general and specific objectives:
1.4.1. General Objective:
The general objective of this study is to assess the main factors affecting delay and budget over run in building maintenance in Lagos; 6 building maintenance project and possible mitigation strategies in 6 building maintenance projects.
Specific Objectives
The specific objectives of the research are to:
• To assess the current status of construction condominium in Lagos: 6 building maintenance projects.
• To determine important factors affecting delay and cost performance in the building maintenance in Lagos: 6 building maintenance project.
• To examine the extent the causes and effects had on the delay of 6 building maintenance projects.
Significance of the Study
In the Lagos 6 building maintenance projects, there are few records regarding the housing project. Previously, there were no well-documented research on factors influencing delays and cost performances in housing project construction. As a result, the aim of this study was to fill a knowledge gap in the literature about the factors that influence delays and cost performances in condominium housing construction.
The study is felt to be significant for the following reason:
• It is of the utmost importance for the company in question.
• It describes causes and solutions that contribute to construction time and cost performances in condominium housing developments.
• Another important aspect of the analysis was that it enabled researchers to do more in-depth studies on condominium housing developments, and they were able to use this study as a source of knowledge as well as understand the potential causes of delay and come up with a solution by recognizing which causes needed more attention.
Scope of the Study
This research was conducted in Lagos, Nigeria, with a focus on the Project 6 housing construction. The factors influencing delays and budget increases in condominium housing project development were the focus of this report.
• The research makes use of cross-sectional data from the study year.
• The analysis focused only on the client, contractor, consultant, and external factors that cause delays and cost performances in condominium projects.
• In Lagos; 6 building maintenance project projects specifically from 2015 to 2020.
Limitations of the Study
This research had some limitations that prevented it from successfully achieving its goals. The following were the study's main flaws:
• At the project office level, there is a lack of a well-organized and well-developed data system.
• Inadequate time to perform a large-scale analysis
• The respondents' working days have been shifted due to Covid 19 mitigation.
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