CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

        Construction industry is complex in nature because it contains large number of project parties as clients, consultants, contractors, stakeholders, shareholders and regulators. The complexity and fragmented nature of the industry and its highly casual employment of labour makes it sensitive to poor contract performance.

Basically, it is this unique characteristic of the industry that kept this problem in Akure unnoticed. However, poor construction performance has created economic situation which the industry cannot manage and at the same time the industry stakeholders or contractors do not know how to document these problems for future references.

The construction industry performance is affected by national economies (Navon, 2005). Despite this complexity, the construction industry plays a major role in the development and achievement of goals in the society. Construction industry is one of the largest single industries that contribute greatly to the development of nation including Akure.

The pace of the economic growth of any nation can be measured by the development of the physical infrastructure such as buildings, roads and bridges (Takin and Akintoye, 2002). Successful building construction projects are those projects finished on time, within budget, in accordance with specifications and to stakeholders’ satisfaction (Chua et. Al. 2001).

According to Melton. (2007) effective project delivery is all about control and management of uncertainty and call for an effective flow in stages; business case development, development project delivery plan and project delivery. Commitment to project delivery mean better services for clients, delivered more efficiently, effectively and economically.

As a result of this critical role of project delivery, there has been keen attention by researchers in the area of project management and planning. Research in the area of project management and planning is not a new phenomenon with variety of researches having been undertaken to reflect practices, problems, and fill in a research gaps in different aspects of project management and planning.

Project implementation and ICT was examined by Gichoya, (2005) who looked at strategic operations by government organizations in pursuit of implementing ICT projects . The study looked at the characteristic challenges faced by developing nations and the contribution in the failure of ICT projects.

Other areas of that have been widely focused include project management with scholars in this areas giving a conceptual understanding of a project. In this perspective Rand (2006) viewed project management as a discipline of planning, organizing, securing, and managing resources to achieve specific goals.

A project is a temporary endeavour with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables), undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value. The temporary nature of projects stands in contrast with business as usual (or operations), which are repetitive, permanent, or semi-permanent functional activities to produce products or services.

In practice, the management of these two systems is often quite different, and as such requires the development of distinct technical skills and management strategies.

In area project delivery Martin (2010) examined the importance of change management in facilitating project delivery. He indicated that management of change can be a difficult task for an organization especially if the organization has immature project management services and procedures. Similarly, other studies (Dahl 2008, Horroelen 2008. Anderson 2006) undertaken indicate that project delivery has been examined in the dimension of meeting plan parameters such as scope, time and cost.

Though individual factors have a role in project delivery, the overall achievement of project delivery may however not be realized through a single factors but an interaction between several factors which has been hardly emphasised in the previous research.

Several constructs that for the purposes of the proposed study may affect project delivery include; product quality, product maintenance, customer care, compliant resolution and customer satisfaction. This is an area that a majority of researchers on project management have overlooked.

1.2   STATEMENT OF THE PROBLEMS

Construction projects are executed to accomplish certain outcomes. Firstly, most projects will involve either the creation of new facilities or the upgrading or refurbishment of existing facilities.

To contractors, quality materials are supposed to be of a greater interest to them in order to improve cost, time, and quality performance but often times, most of them don’t take this into consideration, rather they go for the inferior material so as to have so much left over for them at the expense of others.

It could also be that quality training and meetings are not organised for performing an improvement of contractors. In addition, most contractors neglect the need of having a cost engineer in their projects which might help them to successfully control costs.

Majority of the problems encountered could be that the project is not completed or delivered within the specified period; reduced quality; use of unspecified materials; excessive budgets; unqualified employees safety problems such as project site accidents.

Finally, several researches has been carried out on the factors affecting success of construction project but not even a single research has been carried out on the comparative tendering and estimating procedures of effective project delivery case study of Cross River state.

1.3   AIMS AND OBJECTIVES

        The main of the study is to examine the comparative tendering and estimating procedures of effective project delivery. Other specific objectives of the study include;

1. to determine the factors affecting the tendering and estimating procedures of effective project delivery in Cross River state.
2. to determine the influence of tendering and estimating procedures on effective project delivery in Cross River state.
3. to determine the relationship between tendering and estimating procedures of effective project delivery in Cross River state.
4. to proffer possible solutions to the problems.

1.4   RESEARCH QUESTIONS

1. What are the factors affecting the tendering and estimating procedures of effective project delivery in Cross River state?
2. What is the influence of tendering and estimating procedures on effective project delivery in Cross River state?
3. What is the relationship between tendering and estimating procedures of effective project delivery in Cross River state?
4. What are the possible solutions to the problems?

1.5   STATEMENT OF RESEARCH HYPOTHESIS

HO:   There is no significant difference between tendering and estimating procedures of effective project delivery.

HI:    There is a significant difference between tendering and estimating procedures of effective project delivery.

1.6   SIGNIFICANCE OF THE STUDY

        The study on the comparative tendering and estimating procedures of effective project delivery will be of immense benefit to the entire Cross River state in the sense that it will update participants’ knowledge and can assist them to be more familiar with project management techniques and processes.

Owners are encouraged to facilitate payment to contractors in order to overcome delay, disputes, and claims. All managerial levels should participate in sensitive and important decision-making.

Continuous coordination and relationship between project participants are required through project life cycle for solving problems and developing project success.

It will enable the consultants to be more interested in design cost by using multi-criteria analysis and choosing the most economical criteria in order to improve their performance and to increase owners’ satisfaction.

In addition, consultants by the cause of this study will be urged to facilitate and expedite orders delivered to contractors to obtain better time performance and to minimize disputes and claims. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.

1.7   SCOPE OF THE STUDY

        The study on the comparative tendering and estimating procedure of effective project delivery is limited to Cross River state.

1.8   LIMITATION OF THE 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.

1.9   DEFINITION OF TERMS

Comparative:  Measured or judged by estimating the similarity or dissimilarity between one thing and another; relative.

Tendering:      Offer or present (something) formally.

Estimating:     Estimation is the process of finding an estimate, or approximation, which is a value that is usable for some purpose even if input data may be incomplete, uncertain, or unstable.

Procedures:     An established or official way of doing something.

Effective:        Successful in producing a desired or intended result.

Project Delivery      A project delivery method is a system used by an agency or owner for organizing and financing design, construction, operations, and maintenance services for a structure or facility by entering into legal agreements with one or more entities or parties.