IRACST- International Journal of Research in Management & Technology (IJRMT),... Vol. 2, No. 4, August 2012

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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
TOWARDS ACCOMPLISHING MILLENNIUM
DEVELOPMENT GOALS (MDGS) IN ABUJA F.C.T NIGERIA:
THE PROJECT MANAGEMENT CONSULTANTS ROLES
IJIGAH, E.A,
Postgraduate Candidate,
Department of Building,
University of Jos, Nigeria
austinedoka02@yahoo.com
OLORUNTOBA, K,
Doctoral Candidate, Department of
Architecture, Universiti Teknologi Malaysia
kayodetoba@yahoo.com
MOHD HISYAM RASIDI
Senior Lecturer, PhD.
Faculty of Built Environment,
Universiti Teknologi Malaysia
b-hisham@utm.my
ABSTRACT-This study examines the
prospects and problems of Project
Management Consultants in enhancing the
Millennium Development Goal in lieu of
Cost, Time and Quality of housing projects.
Basic literature was reviewed and survey
questions were administered while the
percentages mean score, critical index and
Chi-Square method at 5% level of
significance of analysis was used to test
data. Among the roles played by project
management consultants to enhance housing
for the achievement of the millennium
development goals are preparation and
presentation of project reports to clients
periodically
(Xn=4.15,
Critical
Index=0.2769), identification of clients
objective (Xn=4.10, Critical Index=0.2735)
and coordinating the preparation of as-built
drawings for the clients (Xn=4.10, Critical
Index=0.2735), The Chi-Square test
analyses indicated that the calculated value
obtained was (χ2 =139.9) against the table
value of (χ2=16.919) for time overrun, and
calculated value obtained was (χ2 =128.97)
against the table value of (χ2=14.067) for
cost overrun which revealed that there is
significant relationship between the
performance of Project Management
Consultants and the Cost/Time Duration of
MDGs Projects in Abuja FCT. Therefore,
Delay by client (Xn=4.41, Critical
Index=0.2974),
Corruption
(Xn=4.31,
Critical Index=0.2870) and Variation and
Fluctuation
(Xn=4.18,
Critical
Index=0.2786), are factors to be considered
during the execution of a project. The study
advocates
adequate
attention
to
determinants of construction Cost, Time and
Quality at the design stage, provision of
sufficient finance as at when due and proper
reconciliation of client’s and designer’s
requirement to prevent duration overrun of
such significant national projects.
I. INTRODUCTION
According to [19] there is a general
consensus among the various scholars that
development will increased capacity of
people to have control over material assets,
intellectual resources and ideology; and
obtain physical necessities of life (food,
clothing & shelter), employment, equality,
participation in government, political and
economic
independence,
adequate
education, gender equality, sustainable
development and peace. However, UNDP in
its 1998 report documented that the reality
of the world is that many countries are
underdeveloped
with
precarious
development indices. More than 1.2 billion
people or about 20 percent of world
population survive on less that US $1 per
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
day while Nigeria, which was one of the
richest 50 countries in the early 1970s, has
retrogressed to become one of the 25 poorest
countries at the threshold of the twenty first
century. The average annual percentage
growth of GDP in Nigeria from 1990 -2000
was 2.4. This is very poor when compared to
Ghana (4.3) and Egypt (4.6) [19]. In order to
address the problem of poverty and promote
sustainable development, the United Nations
Millennium Declaration was adopted in
September 2000 at the largest ever gathering
of heads of heads of States committing
countries both rich and poor to do all they
can to eradicate poverty, promote human
dignity and equality and achieve peace,
democracy and environmental stability.
Construction contributes some 7% of
the GDP in most countries and up to 12 to
14% in Japan and Korea [11] while in
developing countries according to [29]
investments in construction projects could
be as high as 50-60% of national budgets. In
Nigeria, the construction industry was the
dominant contributor to the nation’s GDP in
the 1980s, accounting for about 70% of the
GDP (Planning Committee on the National
Construction Policy, 1989). This made the
industry very strategic to Nigeria’s
developmental
efforts.
Unfortunately,
however, the industry has been bedeviled by
a combination of low demand and consistent
low productivity and poor performance over
the years [28], [26], [1] & [7]. This has
reduced its contribution to the national
economy to a mere 1% of the GDP in 2002,
and the years after; (African economic
outlook, 2004). However, as important as
this industry is, or may be, it is rather sad to
note that several authors have decries the
poor performance of the industry and its
concomitant effect on the cost and quality of
the product of the industry [20] & [21.
The
complexities
and
multidisciplinary nature of the construction
industry in Nigeria requires many
consultants be put together to meet the time,
cost,
quality,
safety,
aesthetic,
environmental dimensions, performance and
the expectations of the client to effect
project management [30]. In line with this, a
number of improved contract management
system have emerged over the years. These
include Design and Build, Package Deal,
Management Contracting, Turnkey, among
others to replace the Traditional Contract
Method in which the architect was
recognized as the independent designer of
buildings and the manager of the
construction process. These alternatives
have succeeded in bringing the activities of
the design and construction teams together,
to
bring
about
build-ability
and
maintainability;
Hence
the
project
management option is considered as more
appropriate to provide a frame work for
design
organization
and
contract
administration which can suit a particular
project and conditions for its execution.
II.
REVIEW OF PROJECT
MANAGEMENT IN NIGERIAN
CONSTRUCTION INDUSTRY
In Nigeria today, most construction
project are being completed at costs much
higher than initial estimated [16]. Earlier
studies by [27], [31], [13] and [33] have
indicated that initial cost estimates on
construction projects in Nigeria can hardly
be relies upon by clients. Ref. [16] assert
that the scenario is that in which clients are
compared to pay for unbudgeted increase in
projects or abandon the project out rightly.
The study of [3] as cited by [35]
review that the major criticism facing
Nigerian construction industry is the
growing rate of delays in project delivery
and project delays leading to cost and time
overrun, for example, through additional
overheads and potential claims between
clients and contractors [12]. There are also
of the opines that project should be judge as
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
successful if the project is completed on
time, within budget, without accident, to the
specified quality standard and overall client
satisfaction. [22] suggest that overall
effectiveness on construction sites may
simplistically be attributed to three main
dimensions; quality, in terms of accuracy of
jobs, workmanship, degree of skills;
quantity in terms of productivity, time
constraints, ability to meet planned schedule
; and resources in terms of availability of
materials, tools and equipment and
manpower.
Ref. [9], defined project management as
the overall planning, implementation,
control and co-ordination of the project from
inception to completion to meet the defined
needs to the required standards within time
and to budget, a view also shared by The
Chartered Institute of Building in the United
Kingdom [10]. Ref. [30] is of the same view
that project management is initiated to
accomplish specific goals of the project.
Ref. [23] added that project management is
the art and science of mobilizing and
managing people, materials, equipment and
money to complete the assigned project
work on time within budgeted cost and
specified technical performance standards.
According to [12] a project is successful
from the point of view of management, if it
is completed on time within budget and free
from accident.
In the context of construction industry, a
consultant is defined by the [36] as an
individual or organization engaged to:
- provide expert analysis and advise
which facilitates decision-making
- perform a specific one off tasks or
set of tasks
- Perform tasks involving skills or
perspectives that would not normally
be expected to reside within the
departments or agencies of the client.
Therefore the project management
consultants’ main responsibility is to deliver
the project end-time within budget and time,
in accordance with technical specifications,
and in fulfillment of the project’s objectives.
It is in view of this note that [32] suggests
that the project management responsibility
include; planning project activities, tasks
and end result, including work break down,
scheduling and budgeting, organizing,
selecting, and placing the project team,
coordinating tasks and allocating resources,
monitoring project status, identifying
technical and functional problems and
solving them directly or knowing where to
find them. The project manager should also
have some level of experience and also be
ethical in carrying out his responsibilities
according to the ethics of his profession
[32]. The contribution of the construction
industry to national economic growth
necessitates improved efficiency in the
construction industry by means of cost
effectiveness and timeliness which would
certainly contribute to cost saving for the
country as a whole [3]. Ref. [14] added that
there is a greater awareness of cost because
of the prevailing economic conditions which
have placed several restrictions on the
availability of capital, making it essential to
ensure that whatsoever the amount that is
available is judiciously used to secure the
best economic advantage. This idea
according to [25] is also shared by the
contractors and thus necessitates that project
be designed and executed through improved
and refined cost control tools to give
maximum value for money.
However because of the huge
amount of resources required in building
construction, this demand that the
professional advisers accept cost as an
element in design and that they should
provide a balanced cost in all parts of the
building as well as an accurately forecast
overall cost [18]. Ref. [17] further stated that
the effect of this increase is that as
construction works progress, most clients
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
especially government ministries and
institutions are compelled either to pay for
this unbudgeted increase or abandon the
project out rightly. This can only be
controlled by the use of the right
procurement method [15]. The study by [15]
reviews that the use of project management
procurement method will reduce or avoid
the problem encountered which led to
extension of time and cost of project.
Ref. [6], [9], [2], [24], [5] and
[23] all envisaged that the project
managers are trained and competent to
carry out the following functions:
a. Identify the client’s objectives
and priorities
h. Coordinate and manage all precontract services
i. Establish control systems and
execute
value
management
exercise
on
production
information.
j. Coordinate the approval of
building drawings and other
statutory consents.
k. Conduct tender evacuation and
selection of contactor (s) and
nominated sub-contractor(s)
l. Coordinate contractor’s site
possession
m. Monitor and control all post
contract project activities
n. Prepare and present project
report to client, periodically
o. Coordinate the preparation of asbuilt drawings
p. Coordinate the preparation of
final Account
q. Coordinate the preparation of
maintenance manual
r. Carry out project analyses and
feed back to client
A. Types of Project Management
According to [4] there are essentially two
type of project management which include.
b. Develop and prepare brief for a
project on behalf of the client,
taking cognizance of the client’s
requirements and objectives
c. Conduct reconnaissance site
survey
d. Establish a budget and an overall
development program
e. Advice client on the appointment
of other team members
f. Commission other consultancy
services
g. Establish and manage integrated
communication
and
project
information systems
i. The Executive type and
ii. Non –Executive type
Executive Project Management
Executive project manger acts in an
executive capacity on behalf of the client,
and handles the formation of the project
team from conception to implementation
through completion of the project.
The objectives of this type of project
management process are those of the client,
and the role of the project manager is geared
towards ensuring that the project
organization works to achieve the client’s
objectives. Similarly, decisions taken during
the process should be taken with the sole
purpose of achieving the client’s objectives.
In this note the Executive Project
Management is when the Project Manager is
vested with the powers to appoint the project
consultants and Contractors.
Non-Executive Project Management
The non-executive project management is a
direct opposite of the executive type of
project management. The client in this case
retains the decision making process and all
executive powers on the project.
B. Research Hypothesis
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
The following research hypotheses were
tested.
(a)
Ho: There is no significant
relationship between the project
management consultants practice and
the cost of millennium development
project in Abuja FCT.
(b)
Ho: The performance of the
project management consultants’ has
no significant relationship with the
time duration of millennium
development projects in Abuja FCT.
III.
METHODOLOGY
Detail reviews of relevant literature
in the area of project management
consultants in construction industry were
carried out. Interviews were conducted
through oral questions and questionnaire
administered on the contractors and
consultants who participated in the projects
of the millennium development goals in
Abuja FCT. The research presumes that the
locations are true representation of the
construction activities in Nigeria due to
vast construction/ developmental activities
going on in the area. Data were collected
through the coordinating consultants in
Abuja FCT. The final duration of each
project and cost were collected and
calculated from the date of commencement
of the project to the practical handing over
of the project by the contractor as reflected
in the handing over form completed for
each project investigated. Initial duration of
six weeks was fixed by the client for every
contractor.
A sample size of fifty firms
(consultancy and contractors) situated in
Abuja
that
undergo
millennium
development projects were sampled and a
total of fifty 50 questionnaires were
administered randomly among the firms
Table 1: Factors that Affect Cost of Construction Project.
score
Cost factors
%
Score
1 2 3
4
5
and thirty-nine (39) questionnaire were
received and used for the analysis. The data
collected were analyzed with statistical
method such as ANOVA and chi- square
using computer software. Responses from
questionnaires survey were analyzed using
descriptive statistics. The mean score of
factors responsible for time and cost
overruns were ranked on a five point linker
scale. The factors with the greatest mean
was ranked the most significant
contribution to time and cost overruns, and
any factor having a mean score below 3.00
was considered not a significant
contributor.
IV.
ANALYSIS OF DATA AND
IMPLICATION
Average Percentage Cost of Projects
Table 1 presents the factors that affect cost
of millennium development project in Abuja
FCT, the result indicates that Variation has
the highest average percentage(Xn=4.41,
Critical Index=0.2940) while Delay in
getting imported materials has the lowest
(Xn=3.64, Critical Index=0.2743).
In order to test hypothesis 1: this state that
there is no significant relationship between
the project management consultants practice
and the cost of millennium development
project in Abuja FCT. The chi square test
was used at 5% level of significant. From
the chi square test in Table 2, calculated
value obtained was (χ2 =139.9) against the
table value of (χ2=16.919). It could be
concluded they is a There is a significant
relationship
between
the
project
management consultant practice and the cost
of millennium development project in Abuja
FCT. That means the use of project
management
consultants
should
be
encourage in the construction industry to
reduce the cost of project executed.
Xn
Critical
index
REMARKS
Rank
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
Delay by client
0
1
6
Variations
0 0 8
Delay in payment 0 2 5
Civil commotion 0 4 10
Delay in getting 0 5 14
imported
materials
Architects
2 3 10
instruction
Change
in 0 0 7
specification
Bureaucratic
0 0 8
bottleneck
Grand mean=4.125; S.D= 0.0807
12
20
method
168
12
7
8
10
19
25
17
10
172
172
155
142
4.41
4.41
3.97
3.64
12
12
146
17
15
11
20
3rd
0.2940
0.2974
0.2650
0.2430
Significant
Xn > 3
significant
significant
significant
significant
3.74
0.2495
significant
8th
164
4.21
0.2800
significant
5th
168
4.31
0.287
significant
3rd
4.31
0.2870
1st
1st
6th
7th
Notes: Xn=sample mean, S.D = Sample Standard deviation: n=312(Total number of sample)
Table 2: Chi square (χ2) Text Result of Most Common Factors that
Influence Cost of Project Management Consultants.
F
S/N
Cost factors
e
fo=
1
2
3
4
5
6
7
8
Delay by client
Variations
Delay in payment
Civil commotion
Delay
in
getting
imported materials
Architects instruction
Change in specification
Bureaucratic bottleneck
Total
∑ (Fe –fo)2 =16,371
∑(Fe –fo)2
=
Fo
fe -fo
(fe –fo)2
(% Score)
168
172
172
155
142
(no of sample x 3)
117
117
117
117
117
51
55
55
38
25
2601
3025
3025
1444
625
146
164
168
-
117
117
117
29
47
51
841
2209
2601
16,371
-
16371
117
-
= 139.9
NOTE
If Xn ≥ 3.0(Accept), else Xn ≤ 3.0 (Reject)
Expected Value= Number of Sample x 3.0
39 x 3.0 =117
Fo= 117
Degree of Freedom (D.F) = Number of column – 1
8-1=7
variable
A8
Decision rule
χ2 calculated
139.9
D.F
7
χ2 table
14.067
significance
0.05(5%)
•
Decision
accept Hi
If χ2 calculated > χ2 table “accept
Hi”
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
•
And if χ2 calculated > χ2 table “
accept Ho”
A. Average Percentage duration
overrun of Projects
Table 3 presents the factors that affect time
duration of millennium development project
in Abuja FCT, the result indicates that the
Variation and Fluctuation has the highest
Critical
average
percentage(Xn=4.18,
Index=0.2786) while Architects instruction
has
the
lowest(Xn=3.77,
Critical
Index=0.2513).
In order to test hypothesis 2 which states
that the performance of the project
management consultants’ has no significant
relationship with the time duration of
millennium development projects in Abuja
FCT, chi square was used. From the result of
the chi-square in Table 4, calculated value
obtained was (χ2 =128.97) against the table
value of (χ2=16.919). It could be concluded
that there is a significant relationship
between the performance of the project
management consultants’ and the time
duration of millennium development
projects in Abuja FCT. That means that
project management consultants will reduce
time duration of project.
B. Level of Acceptance of Procurement
Methods
Summarily, Project Management was
ranked second (X=3.128, 20.54%), after the
Traditional Procurement Method (X=3.87,
51.28%).The result indicates the familiarity
of project management procurement
methods among the various shareholders
executing the project.
Table 3: Factors that Affect Time Performance of Projects.
score
factors
%
Xn
Critical
Score
index
1 2 3
4
5
method
Civil unrest
2 0 7
13 17 150
3.85
0.2564
Variation
and 0 2 3
20 14 163
4.18
0.2786
fluctuation
Delay in payment
0 1 7
15 16 163
4.18
0.2786
Contractors
0 3 5
16 15 160
4.10
0.2735
incompetence
Claims
0 3 10 16 10 150
3.85
0.2564
Architects instruction 0 4 10 16 9
147
3.77
0.2513
Increase in scope of 0 1 9
16 13 158
4.05
0.2701
work
Increase in volume of 0 3 4
17 15 161
4.13
0.2752
work
Substitution
of 0 2 10 19 8
150
3.85
0.2564
material
Availability
of 0 1 15 10 13 152
3.90
0.2598
material
Grand mean=3.986 ; S.D = 0.02268
C. Roles of Project Management in
Controlling Time and Cost of Project
Preparing and presenting project report to
client periodically (Xn=4.15, Critical
REMARKS
rank
Significant
significant
7th
1st
significant
significant
1st
4th
significant
significant
significant
7th
10th
5th
significant
3rd
significant
7th
significant
6th
Index=0.2769), is ranked highest as shown
in table 4, followed by identification of
clients
objective
(Xn=4.10,
Critical
Index=0.2735). Commission of other
consultants services has the lowest with
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
(Xn=4.05, Critical Index=0.2700). All the
roles of project management consultants
were accepted as factors to enhance the cost,
time and quality of projects.
Table 4: Chi square (χ2) Text Result of Most Common Factors that Influence
Time of Project Management Consultants.
f
S/N
Time factors
e
fo=
fe -fo
1
2
3
4
5
6
7
8
9
10
Civil unrest
Variation
and
fluctuation
Delay in payment
Contractors
incompetence
Claims
Architects instruction
Increase in scope of
work
Increase in volume of
work
Substitution of material
Availability of material
Total
∑(fe –fo)2 =15090
∑(fe –fo)2
=
fo
(fe –fo)2
(% Score)
150
163
(No of sample x 3)
117
117
33
46
1089
2116
163
160
117
117
46
43
2116
1849
150
147
158
117
117
117
33
30
41
1089
900
1681
161
117
44
1936
150
152
-
117
117
33
35
1089
1225
15,090
-
15090
117
-
= 128.97
NOTE
If Xn ≥ 3.0(Accept factor), else Xn ≤ 3.0 (Reject factor)
Expected coefficient = numbers of sample x 3.0
Fo=39x3.0 =117
Degree of Freedom (D.F)= Number of rows – 1
10-1=9
variable
χ2 calculated
D.F
χ2 table
A8
128.97
9
16.919
significance
0.05(5%)
Decision
accept Hi
Preparing and presenting project report to
client periodically (Xn=4.15, Critical
Index=0.2769), is ranked highest as shown
in table 4, followed by identification of
clients
objective
(Xn=4.10,
Critical
Index=0.2735). Commission of other
consultants services has the lowest with
(Xn=4.05, Critical Index=0.2700). All the
roles of project management consultants
were accepted as factors to enhance the cost,
time and quality of projects.
E. Cost and Time Overrun of 25
selected MDGs Projects in Abuja
FCT
The project report revealed that Seventeen
(17) of the project use project management
while eight (8)use other procurement
methods
the
performance
project
management consultant is better with time
overrun of 22.00% and cost overrun of
26.81%, while the other procurements
methods record time overrun of 64.25% and
cost overrun of 26.81%. Due to the problem
D. Roles of Project Management in
Controlling Time and Cost of Project
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IRACST- International Journal of Research in Management & Technology (IJRMT), ISSN: 2249-9563
Vol. 2, No. 4, August 2012
faced which led to extension of time and
cost overrun, all the respondents agree to the
use of project management procurement
method.
F. Quality of Project Executed
The project survey revealed that the quality
of work executed by project management is
better with Grand mean of 4.23compare to
other procurement methods with grand mean
of 3.97.
V. CONCLUSIONS AND
RECOMMENDATIONS
The study shows that there is a relationship
between project management and cost of
project. The result also highlight variation as
the major cost of delay with architect
instruction the least. The result of the
analysis of variance to test hypothesis two
shows that there is a positive relationship
between the performance of the project
management consultants’ and the time
duration of millennium development
projects in Abuja FCT. It observed that
variation and fluctuation as the major time
factor with importation of imported material
as the least factor.
Project Management was ranked
second after the Traditional Procurement
Method as the most acceptable procurement
method used for the project. The roles of
project management in controlling time and
cost of project include Preparing and
presenting project report to client
periodically and identification of clients
objective with Commission of other
consultants services been ranked lowest. out
of the twenty five (25) projects MDGs
project selected from the region Seventeen
(17) of the project use project management
while eight (8)use other procurement
methods
the
performance
project
management consultant is better with time
and cost overrun of (22.00% , 26.81%)
compare to other procurements methods
with time and cost overrun of (64.25%,
26.81%). It is therefore recommended that
clients should ensure prompt payment to
contractors so as to reduce cost duration
overrun. Clients should also be able to
cutinize their requirement properly at the
design stage to minimize variation due to
design changes which lead to cost and time
overrun
[3]
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