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PROJECT TOPIC AND MATERIAL ON AN EVALUATION OF THE ENVIRONMENTAL FACTORS THAT LEAD TO ABANDONMENT OF PUBLIC BUILDING PROJECTS IN THE FEDERAL CAPITAL TERRITORY, ABUJA
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- Name: AN EVALUATION OF THE ENVIRONMENTAL FACTORS THAT LEAD TO ABANDONMENT OF PUBLIC BUILDING PROJECTS IN THE FEDERAL CAPITAL TERRITORY, ABUJA
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ABSTRACT
The successful implementation of building projects may be impaired without a good knowledge of the environmental factors that contribute to building projects abandonment and this abandonment makes it difficult to achieve the benefit to be derived from the projects. The aim of the study was to evaluate the environmental factors that lead to abandonment of public building projects, with a view to proffering solutions to public building projects abandonments in Abuja . The study identifies the characteristics of abandoned public building projects, examine the environmental factors that are responsible for public building projects abandonment and also assess the effects of public building projects abandonment on the environment. The research adopted the quantitative method in which the checklist was developed to obtain the inventory of abandoned public building projects in Abuja. A structured questionnaire was also designed and administered to the in-house consultants of the F.C.D.A. Data was analyzed using statistical tools like Means, Percentages and Relative Importance Index (RII) and presented using Charts and Tables. The study revealed that 67% of the public building projects are abandoned after the contract period has elapsed. It also revealed that lack of funds constitute about 50% of the factors affecting completion as well as none of the abandoned public building projects achieved 50% completion. The study found that inadequate working capital is the highest ranked factor among the other environmental factors with a RII of 0.87. The study also revealed that cost overrun is the most significant effect of abandonment of public building projects with a RII of 0.81. The research concluded that the inadequate working capital, importation of materials and equipments, instability in governance, type of contract, civil conflicts and unexpected geological condition are the environmental factors that contribute largely and immensely to the abandonment of public building projects. The research recommends that there should be proper cost analysis of the project to be embarked upon.
TABLE OF CONTENTS
Title Page…………………………………………………………………………………………………………………………i
Declaration………………………………………………………………………………………………ii
Certification………………………………………………………………………………………..iii
Dedication…………………………………………………………………………………….…..iv
Acknowledgements……………………………………………………………………………..…v
Abstract…………………………………………………………………………….……………..vi
Table of Contents……………………………………………………………….………………….vii
List of Figures…………………………………………………………………………….………..ix
List of Tables………………………………………………………………………………………x
List of Appendices………………………………………………………………………………..xi
List of Plates…………………………………………………………………………………………xii
CHAPTER 1……………………………….…………………………………………………….1
1.0 INTRODUCTION……………………………………………………………………………1
1.1 Background of the Study…………………………………………………………………….1
1.2 Statement of the Research Problem………………….……………………………………..3
1.3 Justification of the Study…………………………………………………………………….4
1.4 Aim and Objectives……………………………………………………..…………………….5
1.4.1 Aim………………………………………………………………………….……………5
1.4.2 Objectives…………………………………………………………………………….…..5
1.5 Scope and Delimitations of the Study………………………………………………….…..5
1.5.1 Scope………………………………………………….…………………………….……5
1.5.2 Delimitations………………………………………………….…………………….……6
CHAPTER 2………….………………….………………………………………………………7
2. LITERATURE REVIEW…………………………………………………………………..7
2.1 Introduction……………………………………………………………………………………7
2.1.1 Building Projects……………………………………………………………………..……9
2.1.2 Types of Construction Projects……………………………………………………..………9
2.1.2.1 Residential……………………………………………………………………………………….10
2.1.2.2 Building…………………………………………….……………….………………….10
2.1.2.3 Institutional and Commercial…………….……………………………………………10
2.1.2.4 Industrial………………………………………….…………………………………….11
2.1.2.5 Specialized Industrial Construction…………………….………………………………11
2.1.2.6 Highway Construction………………………………………………………………….11
2.1.2.7 Heavy Construction……………………………………………………………….…….11
2.1.3 Project Abandonments……………………………………………………………………..12
2.2 Characteristics of Abandoned Building Projects…….………………………………….14
2.3 Project Environmental Factors……………………………………………………………….18
2.3.1 Economic and Financial……………………………………………………………………..18
2.3.2 ConstructionTechnology…………………………………………………………………………..19
2.3.3 Political……………………………………………………………………………………….19
2.3.4 Legal Factors……………………………………………………………………..………20
2.3.5 Physical Factors………………………………………………………………………………21
2.3.6 Socio-cultural Factors…………………………………………………………..………..21
2.3.7 Institutional……………………………………………………………………..………..22
2.4 Effects of Building Projects Abandonment on the Environment….…………………..22
CHAPTER3………………………………………………………………………………………………………………25
3. RESEARCH METHODOLOGY………………………………………………………..25
3.1 Research Design…………………………….…………………………………………………25
3.2 Research Method Adopted for the Study…………….………………………………….27
3.3 Population of the Study…………………………………………………………………..27
3.4 Sampling Techniques……………………………………………………………………..27
3.5 Sample Size………………………………………………………………………………..28
3.6 Data Collection Instrument………………………………………………………………29
3.7 Administration of Data Collection Instruments………………………………………..30
3.8 Method of Analysis……………………………………………………………………….30
3.8.1 Relative Importance Index (RII)…………………………………………………………30
CHAPTER 4…………………………………………………………………………………..32
4. DATA PRESENTATION, ANALYSIS AND DISCUSSION OFRESULTS………….32
4.1 Breakdown of Administered Questionnaires……………………….…………………..32
4.2 Respondents Profile………………………………………………………………………..33
4.2.1 Profession of the Respondents……………………………………..…………………….33
4.2.2 Years of Experience of Respondent…………………………………..………………….34
4.2.3 Level of Qualification of Respondent………………………………………………………….34
4.3 Characteristics of Abandoned Public Building Projects in Abuja…………………….35
4.4 Environmental Factors Leading to Public Building Projects Abandonment…………37
4.4.1 Economic and Financial Factors Leading to Public Building Projects Abandonment…37
4.4.2 Construction Technology Factors Leading to Public Building Projects Abandonment..38
4.4.3 Political Factors Leading to Public Building Projects Abandonment……………………….39
4.4.4 Legal Factors Leading to Public Building Projects Abandonment………………………40
4.4.5 Social and Cultural Factors Leading to Public Building Projects Abandonment………..41
4.4.6 Physical Factors Leading to Public Building Projects Abandonment…………………..42
4.5 Assessment of the Effects of Public Building Projects Abandonment on the
Environment………………………………………………………………………………43
CHAPTER 5……………………………………………………………………………………………………………..45
5. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS………………………45
5.1 Summary of Findings……………………………………………………………….……45
5.2 Conclusions……………………………………………………………………………….46
5.3 Recommendations………………………………………………………………………..48
5.4 Contribution to Knowledge…………………………………………………………………48
5.5 Recommendation for Further Research………………………………………………..49
REFERENCES…………………………………………………………………….………..50
CHAPTER ONE
Background of the Study
The construction industry contributes greatly to the growth of any nation even though it contributes less than the other industries. Therefore, it is a key player in the socio-economic progress of several countries internationally (Usman, Kamau and Mireri, 2014). Also the Nigeria construction industry is a broad variety of loosely incorporated organizations that jointly erect, adjust and restore a large range of different buildings and public engineering projects. The building industry is also defined as financial activities that center on the construction of physical projects, such as buildings and road and rail network, despite of the construction being land or maritime based (Osman, 2006). The success of a project is a very critical issue in the industry.
Unluckily a lot of these projects in Nigeria are out rightly abandoned still at commencement (Olapade and Anthony, 2012). Dahlan (2001) contends that, from the development point of view, the word „abandoned project‟ refers to a project in which the construction job has been delayed, even though planning consent has been approved to the developer. Also, Olapade and Anthony (2012) defined abandoned project as a project in which the client refuse to provide maintenance and working services to a building. However, this study view abandoned building project as a project in which the construction work is incomplete and suspended. Therefore, the importance that the continual abandonment of projects would bring numerous effects on real properties and its values and the financial system cannot be overemphasized since some of the building projects provide the fundamental services that should improve the real properties developed (Ihuah and Benebo, 2014). By most accounts, abandoned buildings have numerous risks and danger associated with them.
The abandonment of building projects most especially the public building projects scattered across the length and breadth of Nigeria. According to a report by Nasir (2012), there are about eleven thousand, eight hundred and eighty-six (11,886) abandoned projects that will cost an expected N7.78 trillion to complete! These shocking figures are from the statement of the Presidential Projects Assessment Committee (PPAC) set up in March 2011, by The President Goodluck Jonathan of Nigeria to look into cases of abandoned projects. If the government does not begin any fresh projects, it will take more than five years budgeting about N1.5 trillion yearly to finish them all – and that is assuming no cost-over runs or delays.
However, Faniran, Love and Smith (2000) recommended that there is a need to build up proper management tools and techniques particularly modified to the project environment of developing countries. According to Ajayi, Ogunsanmi and Ofili (2010) the four most significant external environmental factors in declining order include community issues, weather conditions, economic situation (boom or meltdown) and government policy.
Olusegun and Michael (2011) discussed that the mission in increasing infrastructural projects are mostly to give new and valuable product and services to the public. It also encourages the artistic part of the environment but this purpose is somehow compromised and not accomplished owing to the incessant problem of project abandonment.
Therefore, the problem of abandoned building projects is enormously affecting the building industry in terms of economy, and needs a more serious view on this issue in order to have a good understanding of the problem so that the industry could take the basic steps required to overcome this issue.
1.2 Statement of the Research Problem
In developing nation, the building sector forms a high proportion of the financial system and it also represents one of the major active and composite industries environments (Rahman and Sufian, 2008). According to a report by Stanley (2014), about 437 abandoned buildings in Abuja had so far been captured. Despite the growing rate of construction activities in FCT, limited research works has been carried out to identify and tackle the problem of abandonments.
Nwachukwu and Nzotta (2010) opined that the speed at which building construction projects are abandoned, some even under construction, is rising majorly in a developing economy like Nigeria. Therefore, the problem of incessant abandonment of building projects by the governments is a very important issue to be addressed. This applies to Nigeria where construction investments account for over 50% of the gross fixed capital structure.
Previous studies done on abandonments had focused on other aspect. For instance, Khalid (2010) and Dahlan (2010) have done related researches but focused mainly on housing projects. Ihuah and Benebo (2014) focused on development projects while Akindele (2013) focused on residential building projects. Khalid (2010) conducted questionnaire survey, interviews and literature review relating to developers from six states in Malaysia. However, the questionnaire survey did not consider the contractors and consultants. Also, Dahlan (2010) focused on the issue of abandoned housing projects by conducting case studies and literature review on undergraduate projects and research reports but Dahlan (2010) study did not entail a questionnaire survey.
Ihuah and Benebo (2014) investigated and determined the various causes of abandoning development projects and the effects of such causes on real properties and its values in Nigeria using a questionnaire survey. But the questionnaire survey did not involve the consultants. Akindele (2013) appraised the effects of landed property abandonment in Osogbo and Ogbomoso, Nigeria using questionnaire survey only. The questionnaire involved only the residents/tenants but did not involve the contractors and consultants.
Base on these previous studies on abandonment, there was no known study that had focus on investigating the factors within the environment that posed greater challenges not only to projects but also to management and organizational structure. This study therefore sought to investigate the environmental factors that are responsible for abandonment of public building projects.
1.3 Justification of the Study
The eradication of abandonment shall develop the provision of housing for all particularly low-income earners, establishment of employment opportunity for professionals in the building industry, decreasing the wastage of public funds, human and resources on the aspect of the client, as well as improved physical and socio-economic growth of the nation amid others (Olapade and Anthony, 2012).Therefore, the abandonment of building projects has resulted in several unfavorable consequences to the economy, the public and environment. Cost-effectively, it is a waste of valuable resources (Yap, 2013).According to Ahmed and Ahmed (2014), the problem of abandoned projects is a global occurrence and this issue is a harmful factor to the stakeholders of those projects.
However, the prevailing and continual abandonment of building projects are disturbing that it creates numerous harmful effects to the values of real property, as well as, to the owners, inhabitants, the surroundings and the economy as a whole (Ihuah and Benebo, 2014). According to Parameswaran (2006), there are unforeseen environmental factors beyond the control of the organization that has caused project abandonment. Based on these facts, it therefore justify why the environmental factors that are responsible for building projects abandonment and the overall effects of building projects abandonment on the environment should be thoroughly investigated.
1.4 Aim and Objectives
1.4.1 Aim
The aim of this research is to evaluate the environmental factors that lead to abandonment of public building projects, with a view to proffering solutions to the abandonment of public building projects in Abuja.
1.4.2 Objectives
The objectives are:
1. To identify the characteristics of the abandoned public building projects in Abuja
2. To examine the environmental factors that are responsible for the abandonment of public building projects
3. To assess the effects of public building projects abandonment on the environment.
1.5 Scope and Delimitations of the Study
1.5.1 Scope
The scope of the study is to evaluate the environmental factors that lead to abandonment of public building projects. The study considers the project consultants of the abandoned public building projects in Abuja. The Federal Capital Territory, Abuja was chosen as a location due to increase in the rate of construction activities in Abuja.
1.5.2 Delimitations
The contractors are not included in this study as a result of their inaccessibility and mobile nature. Another difficulty for this study is that, there was no free access to the abandoned project files due to some confidential reasons; therefore as a result of this, nine of the abandoned projects were gotten.
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