Causes Of Construction Project Failures And Abandonment In Nigeria

Project and Seminar Material for Estate Management

Chapter One

Introduction

1.1 Background To The Study

Abandoned projects and construction failure including building and other civil engineering infrastructure development project like houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria. Osemenan (1987) reported that Nigeria has become the “world’s junk-yard of abandoned and failed projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the building and construction industry can experience such magnitude of project failure and abandonment. According to another report by Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated cost of above N 300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment and construction project failure is been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole. The building and construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experience an increase in building and construction activities, but in a depressed economy, the incidence of project abandonment and construction failures tends to be more prevalent. Akindoyeni (1989) qualitatively reasoned that some of the causes of project abandonment and construction failure in Nigeria are deaths of client, inability of client to attract fund and lack of good planning.

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). However, the study purpose is to investigate and assess the causes and effects of development projects abandonment and construction failure in Nigeria.

1.2 Statement Of The Problem

The unceasing abandonment and failure of development projects is so shocking in the developing countries such that Nigerian has remained one of the countries in such difficulty (Ayodele and Alabi, 2011; Kotangora, 1993; Osemenan, 1987). Therefore, the significance that the incessant abandonment of projects and construction failure would bring several effects on the aesthetics of the environment, real properties and its values and the economy cannot be overemphasized since some of the development projects provide the basic services that should meet the needs of the people. However, this study will examine the causes of construction project failure and abandonments in Nigeria.

1.3 Objectives Of The Study

The following are the objectives of this study:

To examine the causes of construction project failure and abandonments in Nigeria.
To examine the effect of construction project failure and abandonments in Nigeria.
To determine the solution to the problem of construction project failure and abandonments in Nigeria.

1.4 Research Questions

What are the causes of construction project failure and abandonments in Nigeria?
What is the effect of construction project failure and abandonments in Nigeria?
What is the solution to the problem of construction project failure and abandonments in Nigeria?

1.6 Significance Of The Study

The following are the significance of this study:

This study will educate the general public and the experts in the building industry on the causes of construction project failure and abandonments in Nigeria with a view of proffering solution to the problem.
This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.

1.7 Scope / Limitations Of The Study

This study on causes of construction project failure and abandonments in Nigeria will cover the issues of abandoned projects, failed project and all other abandoned infrastructural facilities.

Limitation Of Study

Financial constraint

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint

The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Chapter Five

Findings, Conclusion And Recommendation

The objectives of the study was to

To examine the causes of construction project failure and abandonments in Nigeria.
To examine the effect of construction project failure and abandonments in Nigeria.
To determine the solution to the problem of construction project failure and abandonments in Nigeria.

Findings from the study revealed the following:

Construction project failures and abandonments militate against the development of Nigeria.
Incompetency leads to construction project failures and abandonments in Nigeria.
Construction project failure and abandonment does not encourage foreign investments.
There is a significant effect of construction project failure and abandonment on the socio economic development of Nigeria.