The Project File Details
- Name: EVALUATING THE EFFECTIVENESS OF PROJECT DELIVERY METHODS IN SOUTH-EAST NIGERIA
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ABSTRACT
This research studied “evaluating the effectiveness of project delivery methods in South-East
Nigeria”. There are alternatives delivery methods for executing a project, the choice of
selection are mostly done on familiarity bases, which is purely subjective and may not offer a
better approach to optimize the overall success of the project. An extensive review of
literatures in relation to the study was made with respect to text and similar work done by other
scholars. The choice of a delivery method of a project needs to be subjected to a proper
evaluation, with respect to the key pertinent issues (client objectives). The types of project
delivery methods was sieved first through an extensive literature review; and about Nine (9)
methods were identified. An evaluation on the delivery method is further carried out using
related literatures. Eleven (11) pertinent issues (client and project objectives) were used to
assess how effective a delivery method responds to a pertinent issue. A field survey was futher
carried out to generate reactions from experienced professionals in the industry, this was
achieved by first conducting a pilot study to enable determine those factors or issues that
actually affects a project in the course of its delivery. A total of ten (10) respondents were
randomly selected from the parent population using an open-ended question. The first ten (10)
issues or factors that had the highest percentages of occurrence or frequencies from their
responses were futher used as the major issues to evaluate the delivery methods. However
Time, Cost, and Quality were the issues with the highest frequencies. The field survey was
conducted in four (4) South-Eastern states in Nigeria, a population of one hundred and fifty
(150) respondents was used for the study, their responses were used in generating of the data
needed for the evaluation. The data generated were analyzed using frequency tables, simple
percentages, mean scores, and z-test. The result obtained was futher used in evaluating and
ranking the delivery methods, using the Spearman Rank Correlation Analysis. The evaluation
reveals that Time, Cost, and Quality are three close-ended interdependent issues, which borders
on every project. Some delivery methods respond positively to any of these issue, but yet,
negatively to any of them at the same time. Hypothetical testing among these three (3) key
issues was conducted to see if there is any significant relationship among them in evaluating a
delivery method using the z-test. The result revealed that time, and quality has a significant
relationship, which could be either positive or negative; cost and quality equally have a
relationship, but time and cost has no significant relationship in evaluating a delivery method.
However the result of findings was used in the summary and recommendation. However no
project delivery method can be said to possess all the advantages required in a project with
respect to the pertinent issues. But a project should be subjected to a full and proper evaluation
before selecting a particular method.
TABLE OF CONTENTS
Title Page – – – – – – – – – – i
Certification Page – – – – – – – – – ii
Acknowledgement – – – – – – – – – iii
Dedication – – – – – – – – – – iv
Abstract – – – – – – – – – – v
Table of Contents – – – – – – – – – vi
List of Tables – – – – – – – – – x
List Figures – – – – – – – – – – xi
Assumptions
CHAPTER ONE – Introduction
1.1 Background of Study – – – – – – – – 1 1.2 Statement of Problem – – – – – – – 2 1.3 Aim and Objectives of Study – – – – – – 3 1.4 Scope of Study – – – – – 3 1.5 Significance Of Study – – – – – – – 4 1.6 Research Questions – – – – – – – 5
1.7 Research Hypothesis – – – – – – – 5
CHAPTER TWO – Literature Review
2.1 Introduction – – – – – – – – 7
2.2 Definition of Project Delivery Method – – – – 9
2.3 Procurement Strategy (Contract Type Vs Management
Method Vs Delivery Method) – – – – – – 11
2.3.1 Contract Type or Contracting Format – – – – – 11
2.3.2 Management Method And Project Delivery Method – – 12
2.4 Alternatives Procurement/Project Delivery Method
and Management Method – – – – – – 19
2.4.1 Project Delivery Methods – – – – – – 19
2.4.1.1 Traditional Design-Bid-Build (DBB) – – – – – 19
2.4.1.2 Design And Build (DB) – – – – – – 20
vii
2.4.1.3 Turnkey Method – – – – – – – – 21
2.4.1.4 Package Deal Method – – – – – – – 22
2.4.1.5 Multiple Prime Method – – – – – – 23
2.4.1.6 Build-Own-Operate-Transfer (BOOT) – – – – 24
2.4.1.7 Develop And Construct (D & C) – – – – 24
2.4.1.8 Construction Management At Risk (CMR) – – – 25
2.4.1.9 Design-Build-Operate-Maintain (DBOM) – – – 26
2.4.2 Management Methods – – – – – – 27
2.4.2.1 Agency Construction Management (ACM) 0r (CM) – – 27
2.4.2.2 Management Contracting – – – – – 29
2.4.2.3 Design & Manage – – – – – – – 30
2.5 Characteristics Of Project Delivery Methods – – 31
2.5.1 Traditional DBB – – – – – – – 31
2.5.2 Design and Build (DB) – – – – – 34
2.5.3 Turnkey System – – – – – – – 35
2.5.4 Package Deal Method – – – – – – 36
2.5.5 Multiple Prime Contracting – – – – – 36
2.5.6 Build – Own – Operate – Transfer (BOOT) – – – 37
2.5.7 Construction Management At-Risk – – – – 38
2.6 Requirements In A Project (Client Needs And Project Goals) – 40
2.6.1 Clients Needs Or Requirement – – – – – 42
2.6.2 Project Requirement (Goals / Objectives) – – – 43
2.7 Evaluating The Effectiveness Of Delivery Methods:
(Advantages/Disadvantages Of Alternative Project
Delivery Methods) Parameters Of Method Selection – – 45
2.7.1 Project –Level Issues – – – – – – 46
2.7.1.1 Issue 1; Project Size – – – – – – 46
2.7.1.2 Issues 2: Cost – – – – – – – 47
2.7.1.3 Issues 3: Schedule – – – – – – – 49
viii
2.7.1.4 Issue 4: Risk Management – – – – – 51
2.7.1.5 Issue 5: Risk Allocation – – – – – – 53
2.7.1.6 Issue 6: Sustainability Of Design And Construction – 55
2.7.2 Agency-Level Issues – – – – – – 56
2.7.2.1 Agency Experience (Issue 7) – – – – – – 57
2.7.2.2 Issue 8: Staffing Requirement – – – – – 58
2.7.2.3 Issues 9: Agency Goals/Objectives – – – – 60
2.7.2.4 Issue 10: Agency Control Of Project – – – – 62
2.7.3 Public Policy/Regulatory Issues – – – – 64
2.7.3.1 Issues 11: Competition – – – – – – 64
2.8 Delivery Methods of Project in Nigeria and Other
Countries of the World – – – – – – 66
CHAPTER THREE
3.0 Research Methodology – – – – – – 72
3.1 Population of Study and Sample Size – – – – 72
3.2 Sample Selection and Techniques – – – – 72
3.3 Source of Data Collection – – – – – 73
3.3.1 Primary Source – – – – – – – 73
3.3.2 Secondary Source – – – – – – – 73
3.4 Validity and Reliability of Instrument – – – – 73
3.5 Pilot Study – – – – – – – – 74
3.6 Administration of Questionnaire – – – – – 74
3.7 Method Of Data Analysis – – – – – 75
CHAPTER FOUR
4.0 Presentation and Analysis of Data – – – – 77
4.1 Introduction – — – – – – – 77
4.2 Pilot Study of Respondents Responses – – – 77
ix 4.3 Demographic of Respondents – – – – – 79
4. 4 Respondents General Views and Knowledge on Project Delivery Methods – – – – – 81 4.5 Respondents Response on the Evaluation
of the Effectiveness of Project Delivery Methods
Against the Pertinent Issues – – – – – 86
4.6 Test and Validation Of Hypothesis – – – – 96
4.7 Summary On The Test Of Hypothesis – – – – 103
CHAPTER FIVE- Summary of Findings, Conclusion and Recommendation
5.1 Summary Of Findings – – – – – – 104
5.2 Conclusion – – – – – – – – 105
5.3 Recommendation – – – – – – – 10
REFERENCING – – – – – – – 107
APPENDIX – A – – – – – – – 111
APPENDIX – B – – – – – – 113
Abbreviations and Acronyms Used in this Study – – 11
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY
The construction industry is one of the important Economic Sectors especially
in a developing country like Nigeria, Infact, no sector of the economy can
develop effectively without infrastructural facilities e.g. building, roads etc.
Osofisan (2007), states that “in many developing countries like Nigeria, the
construction sector to which the building industry belongs is one of the biggest
contributors to the Gross National Product (GNP)”. She further concluded that
“Similarly, it has been noted that in some developed countries, more than 16
percent of their GNP is devoted to the construction industries”. The construction
sector is a sub-sector of the economy that creates basic infrastructure needed to
accommodate inputs of all other sectors. That’s is why construction products are
regarded as the essential of life and economic development.
However, inspite of the importance of the industry, construction projects are
complicated, parallel, dynamic in nature, and are faced with a lot of problems
especially in Nigeria. Construction projects, therefore, require adequate and
effective project delivery methods. Consequently clients/owners of construction
projects are often bothered with diverse needs in their projects. In order to
accommodate these differing needs, various methods for contractual relations
have evolved; these various methods are referred to as “project delivery
methods”. A project delivery method could be defined as a system designed and
packaged to effectively and collectively bring together the owners intentions
and the project scope definition in relation to the design and construction issues,
in order to be effectively managed by the construction industry participants
2
However, in the early 1980s, owners of construction projects have been putting
greater pressure on the construction industry to improve quality, reduced cost
and more importantly, compress the period from project conception to project
completion for all kinds of public and private projects. As a result, both owners
and the industry have been experimenting with various forms of project delivery
methods with varying degrees of success, as even new methods yet to be
experimented are discovered. However, without effective project delivery
methods, construction projects may be abandoned.
1.2 STATEMENT OF PROBLEM
Construction projects differ from each other, infact two projects with the same
design still differ and this is one of the attributes of the industry. Construction
projects are unique and thus, exhibit certain characteristics which is different
from every other sector of the economy; Therefore, construction projects should
be subjected to a proper evaluation of the available alternative methods of its
delivery in relation to the owners interest and the scope of the project,
considering also other pertinent issues because ineffective project delivery
method could lend to Abandonment of project Cost-overrun of project Delay in project completion time Less quality product Lack of technology input Disallowance of flexibility and innovation Multiple construction contracts Increased adversarial relationship Reduction of possibility of competition Increase in life cycle cost etc.
3
The uniqueness of every project has reduced the chance of selecting like
projects and executing them with the same method. Most selections of
alternative methods are done based on a previously used method and this
reduces the chance of achieving maximum success for many projects. And these
have led to some of the above listed problems
1.3 AIM AND OBJECTIVES OF STUDY
The aim of this study is to evaluate how project delivery methods are used in the
Nigerian construction industry, with the following objectives:
1. To find out various types of projects delivery methods used in the
construction industry.
2. To evaluate the effectiveness of various project delivery methods.
3. To identify the factors influencing the choice of project delivery methods
4. To recommend suitable alternative project delivery methods.
5. To find out if the size of a project could affect the choice of its delivery.
6. To find out if evaluation is usually carried out on most project before
selecting a particular method of delivery.
7. To investigate the degree of relationship between/among the three (3) key
issues (i.e cost time and quality) and their behaviour in selecting a
delivery method.
1.4 SCOPE AND LIMITATIONS OF STUDY
The scope of this study comprised of response from professionals in the
construction industry and type of project for this study will be limited to
4
projects in four (4) South-Eastern States in Nigeria i.e. (Anambra, Abia, Enugu
and Imo).
1.5 SIGNIFICANCE OF STUDY
This study will guide project owners or construction proponents in selecting an
appropriate delivery method for their construction projects in order to ensure the
overall performance of the project.
It will also help professionals to advice and guide their clients, by helping them
to point out issues which ought to be considered when evaluating and selecting
a delivery method.
It will also assist government agencies in defining project requirements for a
successful delivery of project, especially on capital projects.
Also, in the improvement of knowledge in differentiating a project delivery
method, a project management method and a contract type or format.
5
1.6 RESEARCH QUESTIONS
The following research questions form the basis of this study:
1. What are the types of project delivery method used in the construction
industry?
2. Which factor(s) influences the choice of a project delivery method?
3. How effectively does a project delivery method responds to client
objectives and project requirements?
4. Which delivery method(s) could be recommended to construction
proponent towards achieving their objectives?
5. Does the size (cost) of a project affects the choice of its delivery?
6. Are evaluations usually carried out on most projects before the selection
of its method of delivery?
7. Is there any relationship between cost, time, and quality in evaluating a
delivery method?
1.7 RESEARCH HYPOTHESIS
The following hypothesis shall be subjected to empirical evidence based on the
data collected
1. Ho: Time and Quality has no significant relationship in the evaluation
of a project delivery method.
H1: Time and Quality has a significant relationship in the evaluation of
a project delivery method.
2. Ho: Time and Cost has no significant relationship in the evaluation of a
project delivery method.
6
H1: Time and Cost has a significant relationship in the evaluation of a
project delivery method.
3. Ho: Cost and Quality has no significant relationship in the evaluation of
a project delivery method.
H1: Cost and Quality has a significant relationship in the evaluation of
a project delivery method.
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