THE NIGERIA CONSTRUCTION INDUSTRY

THE NIGERIA CONSTRUCTION INDUSTRY

In Nigeria, like most developing countries, the construction industry plays a dominant role in the economic activities of the country. According to Olowo (1988) the construction industry accounts for about 60 percent of the Nation’s capital investment and 30 percent of the Gross Domestic Product (G.D.P).

Furthermore, the construction industry is said to have contributed about half of the total stock of fixed capital investment in the Nigeria economy (Olaloku, 1987).The industry also generates employment opportunities which place it second to the Government in the employment of labour (Husseini, 1991). When the construction industry was booming in the 1970’s, the country’s economy experienced similar effects during that period. However, from early to mid 1980’s, the industry experienced a jolt and its effect was felt in all spheres of national life (Isiadinso, 1988) Buhari (1991) reported that the lull in construction of early 80’s was not limited to Nigeria alone.

The lull also occurred in Western Europe and America. But the parent companies of these big timers in our midst were not only able to stay afloat the stormy ocean but were able to expand their sales. They were able to do this by initiative, creativity and research. Consequently, the Federal and State governments resorted to taking foreign loans as a quick solution to the problem. However, some of the measures taken by Government in order to revitalize the economy have further aggravated the situation. One obvious implication of this development is that the cost of imported raw materials and subsequently of the finished products has substantially increased (Husseini, 1991).

These substantial increases as reported by Mbachu&Nkado (2004) have obvious negative implications for the major players and the industry; undermining the viability and sustainability of the industry.

THE ROLES OF CONSTRUCTION ACTOR IN CONSTRUCTION INDUSTRY

There are diverse interests in the construction industry. The principal interest or actors in the construction industry are:

• The Client
• The Consultant
• The Contractor

The Client

The Client is, by far, the single most important member of the construction team. He is the initiator and financier of all the projects. Omole (1986) noted that the major contribution the client can make to the successful operations of the construction industry lies in his skill in specifying his needs prior to the preparation of the design. It is also important for the client to set cost limits of the project at the briefing .He should also ensure that adequate financial provisions are made prior to the commencement of any project.

The Consultant

Cost and advise on client desire design are among the most important and basic considerations that Consultants must deal with. It is essential to see that projects are contained within the client’s budget and cost forecasts. Cost has the final control over virtually every project.

Accurate cost analysis and control is one of the necessary services the client requires from the consultants (Omole, 1986).

 The Contractor

Omole (1986) further reveals that the major task of Contractors is to assemble and allocate the resources of labour, equipment and materials to the project in order to achieve completion at maximum efficiency in terms of time, quality and cost.