The Examination Of Causes Of Project Abandonment In Aba, Abia State

Project and Seminar Materials for Civil Engineering CE

The Examination Of Causes Of Project Abandonment In Aba, Abia State


Chapter One


Introduction

Background Of Study

Construction projects in Nigeria and around the world are fraught with complexities and ambiguities as a result of the risk of missing project deadlines, which are also dependent on low quality and cost overruns, which invariably lead to project failure and abandonment. According to (Ubani and Ononuju, 2013 (Olalusi and Otunola, 2012), the public sector’s constant failure and abandonment of projects is posing serious challenges to stakeholders in the built environment.The construction industry is widely acknowledged as the primary and pivotal pillar upon which any country’s development is built. Due to its role in providing the basic requirements for the entire citizenry, it is regarded as a country’s lifeline as well as an instrument of choice. So far as the construction industry remains the preferred tool of most policymakers, poor project performance in the construction sector and the resulting disillusionment among stakeholders appear to have become the norm rather than the exception in recent years. Many causes contribute to project failure in Nigeria, which most commonly leads to outright abandonment. Construction project failure is viewed as a negative result of risky decisions that invariably obstruct any or all anticipated project benefits.Furthermore, a component is said to fail when the many aspects that make up the component can no longer be relied on to achieve its original goals. Abandonment, on the other hand, occurs when a project’s client/owner fails to provide or pay for the project’s maintenance and operation. Abandonment occurs when management decides to end a project in progress, either temporarily or permanently, for whatever cause (Ewusi-Mensah and Przasnyski, 1991).The act of isolating a building or ceasing any activities or maintenance work on such a project within the time range of the contract agreement and with no intention of returning to the development is known as project abandonment (Spelman, 1993). However, governments, contractors, and agencies have abandoned historic buildings and development projects in the middle of construction and completion on multiple occasions, as has been noted. The causes and effects of these project abandonments are not limited to a single source, but rather cut across numerous factors (Ayodele and Alabi, 2011), resulting in a whole declining effect on the values of developed projects nearby. The majority of this abandoned project has become a haven for crooks. Although the location of the abandoned project and demand are both relevant, accessibility and infrastructure availability in the real estate locations and the surrounding built environment should be far more critical determinants in this study setting.

To understand why projects are abandoned, we must first comprehend the prevalent absence of policy continuity when political officeholders shift. Whether it’s long-term development plans or contracts for key infrastructure, Nigerians have a habit of abandoning policies or projects implemented by past administrations once new people take power. Because authorities frequently re-award such contracts to cronies and big campaign supporters at inflated costs, this failure to assure policy continuity is at the basis of nepotism, corruption, and impunity.When projects are abandoned, the most common explanation provided is a lack of cash. Yet, the basic causes are frequently the pre-contract catastrophes already mentioned, as well as project management shortcomings. How many project failures can be blamed on budget constraints? Shouldn’t one be perplexed as to why a project is approved in the absence of sufficient funds? In fact, section 4 (2) (b) of the Public Procurement Act 2007 clearly states that all procurements must be “based only on procurement plans supported by prior budgetary appropriations; and no procurement proceedings shall be formalized until the procuring entity has ensured that funds are available to meet the obligations and has obtained a “Certificate of “No Objection” to Contract Award” from the procuring entity.” Simply expressed, the law states that no contract should be issued if funds are not immediately available!

It is self-evident that abandoned projects encourage corruption and erode public trust in the government. It’s not uncommon for the excuse of insufficient or delayed money to be made up. Such a conclusion could be reached because abandoned initiatives are frequently rewarded with unjustifiably large payments. Rising inflation, exchange rates, labor, and material costs, among other factors, are being blamed for rising expenses.The applicable rules must be rigorously followed if they aim to examine the anomalies of abandoned projects. Section 63 (1) of the Public Procurement Act, which states that “a mobilization fee of no more than 15% for local suppliers and contractors and 10% for foreign suppliers and contractors may be paid to a supplier or contractor…,” must be strictly enforced. Contractors are frequently awarded mobilization fees in excess of 50% of the contract price, according to the PPAC, often in clear violation of the law (Premium Times, April 11, 2015). While the executive branch of the government bears most of the responsibility for stalled projects, it is far from alone. The National Assembly (NASS) is also liable for illegally and unconstitutionally adding new, unexpected projects into appropriation legislation with the expectation of their implementation.


Statement Of Problem

Before the oil boom, Nigeria’s construction industry was one of the most important sectors of the economy. Despite its economic importance, it has faced numerous obstacles as a result of its inability to meet pre-determined objectives. According to Ewa (2013), the issue of project failure and abandonment has gone unresolved for a long time, leaving open the possibility of a multiplier effect on both the construction industry and the overall economy. Olalusi and Anthony (2012) claimed in their analysis that most construction projects that would have benefited Nigeria’s economic and overall development were strewn about the country’s nooks and crannies.This had an impact on the entire environment, defacing aesthetics and causing social issues as well as various health risks to the general public. In most cases, the cancellation of a public-sector construction project has little direct impact on the economy.

As a result of the government’s absorption of the entire population through reserve money, As a result of the public’s inability to benefit from the intended goal, this circumstance frequently results in a loss of opportunity. Should new money be made available to resurrect such ventures, however, the project’s initial planned objectives would necessarily be sacrificed, resulting in an additional opportunity cost. 2013 (Hoe). According to Onyekpere (2011), the impact of failed projects on a nation’s economy in terms of cost and schedule overruns is huge because the increased costs spent as a result of these situations could have been used to create other key projects for the benefit of the entire citizenry. Most projects fail to meet their objectives for a variety of reasons, including bad project design, poor stakeholder management, delays in project identification and launch, delays in project implementation, cost overruns, and coordination failure. According to Amade et al. (2014), Nigeria’s nooks and crannies are awash with evidence of failed and abandoned construction projects caused by cost-related issues such as poorly articulated cost estimating principles and poor risk management practices, which are frequently dependent on clear-cut knowledge of contingency provisions and management. It has been observed that, despite the government’s efforts to bring the concepts of its projects to fruition, public projects are still abandoned in large numbers at various phases of construction. What are the reasons for the project abandonment in Aba?


Objective Of Study

The following are primary objectives of this study

  1. To identify the causes of the abandonment of projects in Aba.
  2. To examine the effects of the abandonment of projects in Aba.
  3. To identify the solutions to the issues of abandoned projects in Aba.

Research Question

  1. What are the reasons for the abandonment of projects in Aba?
  2. What are the effects of the abandoned projects in Aba?
  3. What are the solutions to Aba’s abandoned projects problems?

Significance Of Study

The findings of this study will inform the general public on the causes and consequences of project abandonment in Nigeria. The findings of this research will assist the government and policymakers in developing and implementing strategies to lower the rate of project abandonment in Nigeria. This research will also serve as a resource base for other scholars and researchers interested in conducting additional research in this sector, and if used properly, will go a long way toward providing fresh explanations for the topic.


Scope Of Study

The purpose of this research is to look into the reasons for project abandonment in Aba.This will investigate all cases of abandoned projects in Aba and look into the causes.


Limitation Of Study

Finance, inadequate materials and time constraint were the challenges the researchers encountered during the course of the study


Definition Of Terms

Project:

This is any undertaking, carried out individually or collaboratively and possibly involving research or design, that is carefully planned (usually[quantify] by a project team, but sometimes by a project manager or by a project planner) to achieve a particular aim.

Abandonment:

The action or fact of abandoning or being abandoned.


The Examination Of Causes Of Project Abandonment In Aba, Abia State


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