Showing posts with label Construction. Show all posts
Showing posts with label Construction. Show all posts

Friday, 4 February 2022

THE IMPACT OF THE COST OF CONSTRUCTION MATERIALS ON REAL ESTATE VALUES

THE IMPACT OF THE COST OF CONSTRUCTION MATERIALS ON REAL ESTATE VALUES

ABSTRACT

This study examines the impact of the cost of construction materials on real estate value with particular reference to commercial properties in Makurdi. In attempt to achieve this aim, the researcher identify the impact of the cost of construction materials on real estate value, evaluate factors affecting cost of construction materials in the study area, identify the causes and effects of high cost of construction on real estate values and proffer solutions on how to minimize cost of construction materials in the study area.  The research adopted the survey design which offers the opportunity to gather information through the use of questionnaires, personal interview and observation. A structured questionnaire was administered to the respondents which comprise the tenants/landlords of Tonimas and Eje Plaza. Data were presented and analysed using simple statistical tools. The study revealed that the there is a steady increase in the cost of construction materials and that this increasing cost have a significant effects on real estate value. The research also shows that majority of the construction carried out used a combination of locally and foreign sourced building materials while others construction work sole depends on foreign sourced or imported building materials which mostly result in higher construction cost. The study recommends that the government policy on production of building material should be enhance to ensure that building material are readily available for use. Research and development into local building materials should be encouraged by the government, fund should be provided for such research in the fiscal budget.

CHAPTER ONE

1.0       INTRODUCTION

1.1       BACKGROUND OF THE STUDY

The first stage of the construction project cycle is the understanding of what the scope and requirement is and how it can be satisfied. This includes deciding on the size, materials, quality of facility required, and project management technique with high profile and certified professionals (contractors) experience skilled and unskilled labour. The cost benefit analysis is the prerequisite for all development projects.

Globally, the construction sector is inundated with high cost in the delivery of building projects. This experience has brought about loss of clients’ confidence in consultants, added investment risks, lack of ability to deliver value to clients, and disinvestment in the construction industry (Mbachu and Nkado, 2004). It is of essence that the objectives of a building contract are met to the contentment of the parties involved. Cost, time and quality are significant, interrelated and interdependent targets for achieving the objectives/goals expected of project construction (Ashworth, 1999, Gould, 2002). Thus, it is crucial to keep up a proper balance between the three so that project outputs are realised on time, within the financial plan and with the requisite quality (Akinsola and Potts, 1998). However, it is an admitted fact that in Nigeria, the majority of construction suffer undue time extensions and /or additional cost to the client and /or inadequate quality of work (Oluwole, 2008b).

High cost of construction can be either avoidable or unavoidable. High construction cost due to design plan or project management problems are avoidable because they could have reasonably been foreseen and prevented (Shanmugam et al., 2006). However, there are some unavoidable costs such as those due to unanticipated events which cannot reasonably be prevented. Construction cost may add value to projects when extra work is done with the intention of producing a better output. High cost may also add value when they involve work that was omitted from design plans but clearly needed to be done. However, some high cost may not add value and represent wasted money if they do not result in a better product.

Construction cost of a project refers to the actual ‘actual cost incurred’ to the client during construction of a building project (Janaka, 1992). Higher construction is the difference between the value originally envisaged for the project and the value reflected in the final certificate. Higher cost occurs from overspending the allowances, making changes and encountering unforeseen problems. Proper planning can greatly reduce cost overruns.

The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost.

According to Mendelson and Greenfield (1996) the remaining part of the twentieth century would involve corporations, institutions and government in a race to survive. The attendant dwindling economic fortune of nations economies around the World have geared up the participant in these sectors (the client in particular) to take up the challenge of ensuring efficient use of their resources to obtain value for money in terms of performance.

The total cost of construction in normal circumstances is expected to be the sum of the following cost: Materials, Labour, Site Overheads, Equipment/Plant, Head office Cost and Profit but in many parts of the world particularly in Nigeria, there are other costs to be allowed for.

The construction cost of a building project is always a primary concern for the vast majority of construction clients/owners. Cost is said to have a direct relationship with quality which can also be expressed by a popular saying ‘you get what you pay for.’ There’s also a popular quote by John Ruskin that says ‘it is unwise to pay too much, but it is worse to pay too little’. Regardless of Ruskin’s advice, cost is a critical factor in most building projects as some owners will always seek a low price. Low price and maximum price competition, however, often have negative impacts on quality standards and achieving best value for money overall.

Managing building costs is a challenging task for a design team, as well as for construction managers, contractors and consultants. Owners would often demand that their design and construction teams respect their financial and economic objectives and that they control costs during project delivery. This expectation is found in both the public and the private sectors in all client industries, locations, and financial situations. Owners expect that a budget prepared early in a project would be accurate and that the project will be completed to the required scope, quality and performance within that budget. The research will appraise the impact of construction cost on quality value of commercial properties in Makurdi.

1.2       STATEMENT OF THE PROBLEM

The demand for more construction of all types, coupled with a tight monetary supply has provided the construction industry with a big challenge to cut costs. The problem of high contract costs of all aspects of construction is becoming obvious. Consequently, substantial increases are being observed in projects. This substantial increase has brought about loss of client confidence in consultants, added investment risks, inability to deliver value to clients, and disinvestment in the construction industry, the aforementioned scenario necessitate this research to examine the impact of the cost of construction materials on real estate value.

1.3       AIM AND OBJECTIVES OF THE STUDY

The aim of the study is to find out the impact of the cost of construction materials on real estate value.

The objectives of the study are as follows:

  1. To identify the impact of the cost of construction materials on real estate value  
  2. To evaluate factors affecting cost of construction materials in the study area.
  3. To identify the causes and effects of high cost of construction on real estate values
  4. To proffer solutions on how to minimize cost of construction materials in the study area. 

1.4       RESEARCH QUESTIONS

The following research questions shall guide the researcher towards achieving the aim and objective of the study:

  • What are the impact of the cost of construction materials on real estate value?  
  • What are the factors affecting cost of construction materials in the study area?
  • What are the causes and effects of high cost of construction on real estate values?
  • What are the solutions on how to minimize cost of construction materials in the study area. 

1.5       SIGNIFICANCE OF THE STUDY

The result of the this research “impact of the cost of construction material on real estate value” would enable Clients, Contractors, Consultants and Estate Valuers  give an economic approach to construction work such that they would be able to identify the dominating factors leading to high construction cost in Nigeria.

The application of the solutions proffered to minimizing construction cost would restore client’s confidence in consultants, reduce investment risks, and generally boost the viability and sustainability of commercial property in real estate market in Makurdi and Nigeria at large.

The research contributes to the wealth of knowledge thus, will serve as a research material for researcher / students who are interested in study the impact of rising cost of construction on quality and value of commercial property. 

1.6       SCOPE AND LIMITATIONS

The scope of this research is limited to identification of the impact of cost of construction materials on quality and rental value of commercial properties in Nigeria with a particular interest in Makurdi town. The study is limited to commercial properties in the Makurdi town because there is easy access of information in Makurdi by the researcher.

LIMITATIONS

A study of this nature cannot be done without some problems and as such it was considered by many factors namely time, finance and data.

  • Time factor was the major constrain couple with multiplicity of other classroom work and lecture requirement were a set back to the research.
  • Un-cooperating attitude of some respondents as they were busy to attend to the researcher.
  • In accessibility of adequate information from research respondent due to illiteracy among them, some find it difficult to understand some question they were asked.
  • Finance was also a limiting factor in the course of the research.

1.7       DEFINITION OF TERMS

Cost: Oxford Advance Learner’s Dictionary (6th edition) define it as the amount of money that you need in order to buy, make or do something.

Building: Business dictionary define building as the permanent or temporary structure enclosed within the exterior walls and roof.

Materials: English oxford dictionaries define materials as the  substance of which a thing is composed or made.

Building Materials: this is any material which is used for construction purposes.

Property: a thing or things belonging to someone; possessions collectively.

Development: this is a process of developing or being developed.

Property Development (The Collins English Dictionary,2014): the business of buying land and buildings and then making improvements to them so that their selling price exceeds the price paid for them.  

Commercial Property: The term commercial property (also called commercial real estate, investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income.

1.8       HISTORICAL BACKGROUND OF THE STUDY AREA

Makurdi is the capital of the state Benue in Nigeria. The city is located in central Nigeria along the Benue River and holds the base for the Nigerian Air Force’s MiG 21 and SEPECAT Jaguar aircraft squadrons. As of 2007, Makurdi had an estimated population of 500,797. The major ethnic groups are the Tiv, Idoma and Igede. Makurdi is home to Benue State University and the Federal University of Agriculture.

Makurdi is located on the banks of Benue River, a major tributary of the Niger River. It is also located on the main narrow gauge railway line running north from Port Harcourt, although this is not currently working. There are regular bus services linking Makurdi to neighbouring towns.

Makurdi is the Capital of Benue State, it was established in the 20th century, and its total population was recorded to be 300,377 in 2006.  Starting from 1927, Makurdi started gaining popularity however, in 1976; the town became the capital of Benue State even until now. Makurdi is essentially an administrative centre with very limited industrialization occurring in it. River Benue divides the town into north bank and south bank. Two bridges further connect both the north and south banks to each other: the railway bridge which was constructed in 1932, and the new dual carriage bridge was constructed in 1978. Makurdi is a colonial town Just like Jos City, it was developed during the colonial period; initially, the capital of Benue province was not Makurdi, it was somewhere toward Gboko.  According to Daniel Otega, (A rural geography coordinator on the History of Makurdi )“ A rich migrant once settled very close to the river Benue Bank, he was surrounded by local villagers who did not have  knowledge about monetary value. This man was the only person who had access to money at that time and he was very rich, for the reason, the villagers usually come to him to collect money and then exchange it with other goods. Since then, they started calling him “mme- kurdi” which later became the name of the town “Ma-kurdi”, pronounced as Makurdi until today.

Location

Markurdi is located on the south bank of River Benue, where the railway line running from Port Harcourt stretches to the present government house, which was formally a residence for majority of engineers working there. The geographical coordinates of Markurdi town are 70 441 0”N, 80 321 0”E.

Transportation

Roads, railway, water and air are the common means of transportation routes that connect to Makurdi town with other towns and states; the major north route is the straight road that links Makurdi, Lafia and Jos Plateau road. The south routes are linked by Makurdi, Otukpo, Enugu, Yandev, Adikpo and Calabar roads. This Makurdi Rail Bridge provides the only rail link between the northern and eastern parts of Nigeria; though the railway is not currently working, it used to serve as a port from which goods, including locally grown sesame seeds and cotton were transported to Lagos State and to the Niger River delta ports.

Makurdi Airport has the Nigerian Airways and other private airlines provide air links between Makurdi and the rest of the country. The beautiful beaches of River Benue can be exploited to provide good sites for relaxation. The river itself provides tourist opportunities for fishing, boating swimming and scientific research. The Makurdi Moratorium that houses a variety of animals including some rare species also serves as another feature of tourist attraction.

Urban growth

In 1984, an industrial estate was built to provide urbanization with facilities and road networks; there was an establishment of coca cola deport and Benue State breweries along Gboko road. In 982 Agro mining food processing unit owned by a private individual for mining of rice was also created in Markurdi hence, there are printing press, small-scale industries, beautiful science, high commercial activities, hotels, banks, hospitals and recreational centres all over Makurdi town. Some institutions also exist such as Benue State University, Fidei polytechnic, Federal University of Agriculture, University of Mkar, and Benue State Polytechnic etc.

Makurdi is the biggest urban centre in Benue State, the present Makurdi has grown up to 348,990 in number, and other towns found in Benue were formed in the late 20th Century, which means that there is no town that is more than 100 years. There is an expansion of urbanisation, which has attracted administrative staff and population increase hence, native authority has gain popularity due to the growth of Makurdi town. There is a major development of new towns which were not there before on the way that leads to Gboko toward PKO, the southern parts is fast developing , while the northern parts is not as developed as the southern parts. The Jukun are the predominant settlers in the north bank, on the hills that used to be the colonial residence towards where the government house is presently located.  When viewing the landscape, you can see that Makurdi is  just like Garden city, the trees are lavishly planted to modify the micro climate of this area, but the low lying area of this town are covered with flood.

Economic activities

Generally, Benue State is known as an agricultural catchment area, it cultivates more of cash crops, fruit crops and food crops hence, it is commonly called “The food Basket of the Nation”. This rich attributes can easily be noticed while traveling from Jos to Benue State. In addition, the State logo and other physical features give important insight on the type of occupations that the state is dealing with.

Climate and Vegetation

Based on Koppen’s Scheme of Classification, Benue State lies within the AW Climate and experiences two distinct seasons, the wet/rainy season and the dry/summer season. The rainy season lasts from April to October with annual rainfall in the range of 100-200mm. The dry season begins in November and ends in March. Temperatures fluctuate between 23 – 37 degrees Celsius in the year. The south-eastern part of the state adjoining the Obudu-Cameroun mountain range, however, has a cooler climate similar to that of the Jos Plateau.

The vegetation of the State consists of rain forests which have tall trees, tall grasses and oil palm trees that occupy the state’s western and southern fringes while the Guinea savannah is found in the eastern and northern parts with mixed grasses and trees that are generally of average height.

Benue’s topography is mainly undulating plains with occasional elevations of between 1,500m and 3,000m above sea level. The state’s main geologic formations are sandy-loam shelf basement complex and alluvial plains. These together with its location in the transition belt between the north and south ecologies and a favourable rainfall pattern account for its support for a wide variety of crops.

Sunday, 2 January 2022

IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

IMPACT OF COMMUNITY DEVELOPMENT ON COMMERCIAL PROPERTY

Abstract

Road construction is a socioeconomic activity in most urban centers, it is long piece of ground specially prepared with a hard level surface for people, vehicles to travel upon, a greater part of the nations resources. Since 1941, a lot have been spent in road construction, maintenance, expansion and rehabilitation spread through the nations which is one of the factors affecting property value, for this reason the research is aimed at examining the impact of road construction, expansion and rehabilitation on property value with a particular interested in Osogbo town, in Osun state.  Literatures on the topic were reviewed with proper citation. 100 questionnaires were administered. The data obtained were analyzed using tables and description. It was found that there was notable increase in property value after road construction and it has impacted the community positively, government have been encouraged to levy betterment tax on occupiers / owners of the commercial properties. It was recommended that road should be constructed to other nearby town so as to improve property value and foster business relationship in the area.

CHAPTER ONE

1.0       INTRODUCTION

Community development has been one of the most significant social forces in the process of planned change during the last three decades. In the past change has occurred without plans or guidance, but today the increasing trend towards planned change enabled large segments of people to participate in the planning and change creating programs which affect their lives. Community development as an instrument of change has become a controversial topic and one hopes this will change the attitudes of policy makers.

The United Nations defines community development as “a process where community members come together to take collective action and generate solutions to common problems.” (UN, 2014). It is a broad concept, applied to the practices of civic leaders, activists, involved citizens, and professionals to improve various aspects of communities, typically aiming to build stronger and more resilient local communities.

Community development is also understood as a professional discipline, and is defined by the International Association for Community Development as “a practice-based profession and an academic discipline that promotes participative democracy, sustainable development, rights, economic opportunity, equality and social justice, through the organisation, education and empowerment of people within their communities, whether these be of locality, identity or interest, in urban and rural settings (Alison and Marilyn, 2011).

Community development seeks to empower individuals and groups of people with the skills they need to effect change within their communities. These skills are often created through the formation of social groups working for a common agenda. Community developers must understand both how to work with individuals and how to affect communities’ positions within the context of larger social institutions.

Community development has gained universal recognition in the last three decades as a substantial force for inducing planned change. Rapid technological advances have resulted in a series of inescapable social realities, and community development can help adapt to these new realities. Community development provides the possibility of altering by democratic means at times antihuman directions of technology, urbanization towards more human ends and property development.

Community development in forms of road construction, electricity, pipe born water, urban housing is socio–economic activity which brings opportunities as a result of improvement in the general activities of people which facilitate business activities and enhances the value of commercial properties.

Commercial properties are important in physical and economic development of towns and cities all over the world. Commercial property and land values tend to increase in areas with expanding community developments /  infrastructure, and increase less rapidly in areas without such improvements, rapid and continued rise in housing and prices are expected  in cities with community development, rapid economic and population growth (Gold Berg, 2017) man, nations, town regions and the world itself would be severely limited in development without community development, which is a key factor for physical and economic growth (Oyesiku, 2012).

Community development usually has three major elements: (a) community members’ well-being or welfare involving both material sufficiency and non-economic aspects of living such as health and education; (b) resource development, involving increased production and efficiency; and (c) organizational development, involving the maintenance and creation of social and economic structures through which members of the community may channel their energies for the betterment of community living (Baker, 1989:48). The ultimate goal of community development is therefore, to develop members’ capabilities and potentials to affect their well-being and quality of life through maximizing resources utilization to benefit them socially and economically. This could only be achieved through effective management of community development programmes as well as having highly committed and well-trained professionals not only in the technical disciplines but also in the community capacity building. The paper focuses on community capacity building as a community development process.

Similarly, commercial activities like retail, wholesale business, has attracted consumers and ancillary service providers. This partly caused increase in demand for commercial space and its effects on commercial property values within a community. There have been increase in rental values of commercial properties within a developed community., therefore this study seeks to examine the impact of community development on commercial property.  

  1.       Statement of Problem

Poor road network is one of the factors affecting property values. It makes a village town or state to be backward in economic growth and development. It is the socioeconomic impact of the road construction on property values that necessitate this study.  What are the impact of road construction, expantsion and rehabilitation on property value?

  1. Aim and Objectives

The aim of this study is to examine the impact of road construction, expansion and rehabilitation on property rental values in Osogbo. In other to achieve the above aim, the following objective shall be pursued.

  1. To examine the state of the available road network in the study area.
  2. To asses the supply of commercial property in the study area.
  3. To examine the rental value of commercial property in the study area before and after road construction.
  4. To determine the extent to which road construction has affected property values.
  5. To recommend the way forward.
  1. Research Question
  2. What is the nature of available road network in the study area?
  3. What is the growth rate of supply of commercial property in the study area?
  4. What are the values of property from 2010 – 2015?
  5. To what extent has road construction has affected property values?
  6. What way can road network be increase?
    1. Significance of the Study

This study focus on the impact of road construction on commercial property rental value. Accessibility is the most important element that enhance property values. This research will encourage government to provide good road network as it has positive impact on commercial property rental values.

The greater the accessibility of a location the comparative advantage to commercial property users, and the greater the comparative advantages to the demand for more property in the study area and finally this research will also serve as a requirement for the award of degree in course of study.

  1. Scope and Limitations of the Study

This research is confined to the study of impact of road construction, expansion and rehabilitation on property value in Osogbo, the research covers property value found within Osogbo metropolis.

1.6       Historical Background of the Study Area 

The early history of Osogbo is essentially the legendary account of the spirit-world; it is the history of the early people whom we call the spirits and fairies. This is in line with Yoruba traditions, which use mythical stories to explain the origins of the ruling families of an early Yoruba state.

Osogbo according to Yoruba oral history had been founded as early as Oduduwa period. Oso-igbo, the goddess of Osun River, was the Queen and original founder of Osogbo. She was credited with many important achievements, which helped to establish the settlement.

Osogbo the capital of Osun lies on coordinates 7°46′ North 4°34′East with an area of 47kmsq. According to the 2006 Population and Housing Commission Census, the city has a population of 156,694 people. Osogbo shares boundary with Ikirun, Ilesa, Ede, Egbedore and Iragbiji and is easily accessible from any part of the state because of it’s central nature. It is about 48km from Ife, 32km from Ilesa, 46km from Iwo, 48km from Ikire and 46km from Ila-Orangun.

Osogbo is a commercial and industrial centre. This started in 1907, when the British Cotton Growing Association sited an industry for growing and ginning of cotton. The Nigerian Tobacco Company (NTC) built its first factory in Osogbo. In this same year, a major turning point for the city which helped in its industrial and commercial development occurred.  The railway tracks were constructed linking it to other parts of Northern Nigeria.  This attracted people from far and near.

The Ataoja of Osogbo is the traditional title of the King and he is the political and spiritual heads of Obas and Chiefs in Osogbo and Olorunda Local Government Areas.

Osogbo is famous for the annual Osun Osogbo Festival which attracts tourists from different part of the world.

1.7       Definition of Key Terms

  1. Road: The Concise Oxford Dictionary defined road as specially prepared truck between places for the use of pedestrian, rivers and vehicles. It could also be a long narrow piece of ground especially prepared with a hard level surface for people, vehicles etc.
  2. Property: Is a legal concept encompassing all the interests, right and benefit related to ownership. Properties consist of the right of ownership which entitle the owner to a specific interest or interest in what is a physical entity and its ownership Olusegun (2003).
  3. Value: As the worth of something in terms of money or other goods for which it can be exchanged or quality of being useful or important. The word value does not have a specific and restricted meaning as it may mean different things to different people Olusegun (2003).
  4. Commercial Properties: Immovable properties, land together with all the properties on it that cannot be moved with any attached rights paten business operation (Microsoft Encarta 2009 Microsoft Corporation).
  5. Rental Value: As the rent which is an annual or periodic payment of money for the use of land or of land and building, rental value is the highest rent obtainable for a property in an open market at any given time Olusegun (2003).
  6. Road Network: Road construction is defined by Lord Hale to be open passage of bring, which from the situation of the adjacent land, and its own depth and wideness with nodal link and connectivity, afford a secure place for the common ridding and anchoring of vehicles for human and goods. Zangand lund University (2004), sees road network to consists of large number of interwoven roads exhibiting many patterns ranging from star like to grid – like with irregular patterns becoming recognized.

Monday, 18 March 2019

RELATIONSHIP BETWEEN RISK MANAGEMENT PRACTICES AND PROJECT PERFORMANCE IN NIGERIA CONSTRUCTION INDUSTRY


 

RELATIONSHIP BETWEEN RISK MANAGEMENT PRACTICES AND PROJECT PERFORMANCE IN NIGERIA CONSTRUCTION INDUSTRY

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

The construction industry, perhaps more than most, is overwhelmed with risks (Deviprasad, 2007). Ehsan et al. (2010) iterated that it is highly risk prone, with complex and dynamic project environments creating an atmosphere of high uncertainty and risk. The industry is vulnerable to various technical, sociopolitical and business risks. Deviprasad, (2007) further stated that too often this risk is not dealt with satisfactorily and the industry has suffered poor performance as a result. According to Pritchard (2001), most of the decisions, including the simplest ones, involve risks. The procedure of taking a project from inception to completion, and then into use is a complex one that entails time-consuming design and production processes (Ahmed, 2004 in Opolot et al. undated). The main role in project management activities is to drive the operations in order to reach or to overcome the expectations of those who decided on the investment, the stakeholders (Monetti, et al., 2006).  Risk management is fundamental to accomplish those objectives, not only trying to keep away from bad results caused by some special events or uncertain conditions, but also acting as a guide in order to maximize the positive results.

Risk Management refers to the culture, processes, and structures that are directed toward effective management of risks –including potential opportunities and threats to project objectives. Although risk is widely studied, it still lacks a clear and shared concept definition: risk is often only perceived as an unwanted, unfavorable consequence.

Risk management may be described as a systematic way of looking at areas of risk and consciously determining how each should be treated. It is a management tool that aims at identifying sources of risk and uncertainty, determining their impact, and developing appropriate management response (Uher, 2003). A systematic process of risk management has been divided into risk identification, risk assessment,  risk mitigation and risk monitoring.  An effective risk management method can help to understand not only what kinds of risks are faced, but also how to manage these risks in different phases of a project. Owing to its increasing importance, risk management has been recognized as a necessity in most industries today, and a set of techniques have been developed to control the influences brought by potential risks (Schuyler, 2001; Baker, 2005).

Compared with many other industries, the construction industry is subject to more risks due to the unique features of construction activities, such as long period, complicated processes, abominable environment, financial intensity and dynamic organization structures (Flanagan, 1993; Akintoye,1997; Smith, 2003). Hence, taking effective risk management techniques to manage risks associated with variable construction activities has never been more important for the successful delivery of a project. Previous research has mainly focused on examining the impacts of risks on one aspect of project strategies with respect to cost (Chen et al., 2000), time (Shen, 1997) and safety (Tam et al., 2004). Some researchers investigated risk management for construction projects in the context of a particular project phase, such as conceptual/feasibility phase (Uher, 1999), design phase (Chapman, 2001), construction phase (Abdou, 1996), rather than from the perspective of evaluation of the management of the risk.

Risk management is one of those ideas, that sense that a logical, consistent and disciplined approach to the future’s uncertainties will allow us to live with them prudently and productively, avoiding unnecessary waste of resources. It goes beyond faith and luck, the twin pillars of managing the future before we began learning how to measure probability (Risk management reports, 1999).

Risk management is one of the most critical project management practices to ensure a project is successfully completed. Royer (2000) stated that experience has shown that risk management must be of critical concern to project managers, as unmanaged or unmitigated risks are one of the primary causes of project failure. Risk management is thus in direct relation to the successful project completion. Project management literature describes a detailed and widely accepted risk management process, which is constructed basically from four iterative phases: risk identification, risk estimation, risk response planning and execution, often managing the risk management process is included (Klemetti, 2006).         

1.2 THE NEED FOR THE STUDY

Risk management practice increases the likelihood of project performance in the Nigeria construction industry. It provides a holistic view of risks, challenges and potential problems and builds processes to help construction companies in monitor and manage them. This not only reduces the cost of housing project, but gives organization valuable strategies to reduce risk associated with project investments and tactical project activities. The construction company management will increase confidence in knowing that project will meet targeted goals and achieve expected outcome.

The professionals in construction industry will have information on factors that affect effective risk management in public housing construction projects. This will enable them to conscientiously incorporate risk management in their professional work and that would result in better project performance. The government in the developing policies regarding project risk management and other regulatory requirements of house scheme project in Nigeria. The policy maker will gain insight how well to incorporate the sector effectively to ensure effective mitigation of project risks for the building construction projects to achieve high project success. The study will contribute to the general body of knowledge and form a basis for further research.

1.3 STATEMENT OF THE RESEARCH PROBLEM

Although technical issues are a primary concern both early on and throughout all project phases, risk management must consider both internal and external sources for cost, schedule, and technical risk. Early and aggressive detection of risk is important because it is typically easier, less costly, and less disruptive to make changes and correct work efforts  rather than the later, phases of the project. Many companies and organizations in the construction industry have an idea of risk management but do not implement it because they are not ready for possible challenges. Such as; increase in cost, time wasting, altered quality and also unhealthy scenario for workers (Deviprasadh, 2007).

In countries such as United States of America, United Kingdom and Canada, risk management has become a universal management process involving quality of thought, quality of process and quality of action (Sesel, 2003). In Nigeria however, the adoption of the risk management concept has been largely a part of the banking and financial sectors of the economy arising from responses to crisis that evolved within the financial sector of the economy in early 1990’s. With the emergence of the Project management profession in the late 1990s and the growing need to move organizations upward by adopting project management methodologies, risk management has become an integral part of the project architecture, being adopted by firms in Nigeria (Klemetti, 2006).  The uncertainties in the Nigerian situation vis-a-vis  the economical, political, environmental, social, cultural and financial environment in which the project is operated increases the uncertain outcomes which the risk management concept essentially attempts to predict and avert. This on the other hand may have a relationship with the performance of these projects. Global competition and technological innovations have increased the pressure in most Nigerian companies to deliver projects on time, within budget and with an acceptable quality of the deliverables of the project (Ehsan, (2006).

One of the major reasons for ineffective projects delivery in the Nigerian construction industry is the improper assessment of risk factors (Joshua, 2007). Many companies are not even aware of the kind or form of risks that they face in the process of construction. As a result the industry continues to suffer poor performances with many projects failing to meet time and cost targets (Joshua, 2007).  This study is going to examine the relationship between risk management practice and project performance in Nigerian construction industries.

1.4 AIM AND OBJECTIVE

1.4.1  AIM

This research is to analyze the relationship between risk management practices and project performance in Nigeria construction industry with a view to enhance the overall performance of Nigeria construction Industry.

1.4.2  OBJECTIVES

In order to achieve the above aim, the following specific objectives shall be pursued:

  1. To find out if there is any significant relationship between risk management practice and project performance of Nigerian construction industry.
  2. To articulate the existing risk management practices in construction industry in Nigeria.
  3. To find out the risk factors perceived to be critical in Nigerian construction industry 

1.5 METHODOLOGY

Field survey research method will be adopted in carrying out the research, together with information from construction professionals and contractors regards to risk management and project performance in Nigeria construction industry. Questionnaire will be used to gather information (data) from the respondents, review of past similar works, journals, conference / seminar papers and online resources will also play a vital in data collection.

1.5.1  DATA COLLECTION

The data shall be collected after the design, distribution and collection of questionnaires to some professionals in the Nigeria construction industry. The questionnaire will contain various questions for response on the analysis of conventional procurement strategies and their application in Nigeria construction industry.

1.6 SCOPE OF THE STUDY

The scope of the study will only cover the relationship between risk  management and project performance in Nigerian construction industry. It shall be limited to some selected construction firms and projects that are located in Abuja, the Federal Capital Territory. Essentially attention will be given to the experienced professionals within the construction industry that span minor and major players in the construction industry.


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Friday, 3 November 2017

ASSESSING THE LEVEL OF STAKEHOLDERS AWARENESS OF SUSTAINABLE DESIGN AND CONSTRUCTION


ASSESSING THE LEVEL OF STAKEHOLDERS AWARENESS OF
SUSTAINABLE DESIGN AND CONSTRUCTION

(A CASE STUDY OF ABUJA)

ABSTRACT
This research work assesses the level of Nigeria construction industry stakeholders’ awareness of sustainable design and construction and to enlighten the stakeholders in the construction industry on green building construction. The selected stakeholders are the client, architect, builder, quantity surveyor, civil engineer, mechanical engineer, electrical engineer, planner, and geo-surveyor. This study seeks to find out whether the above named stakeholders from selected construction industries in Abuja, Nigeria are aware of sustainable design and construction and also to find out the feasibility of sustainable design and construction in Nigeria. The study intends to identify through a theoretical research how the stakeholders from Nigeria construction industry can help create awareness, advice Nigeria and determine whether national building codes cover areas on sustainable design and construction. The data for this research was collected through administration of questionnaires and one on one interview with the selected stakeholders for primary data collection and collection of the secondary data was through already existing internet materials, journals, publications, thesis and notes which were well referenced. It was obtained that majority of the stakeholders were aware of sustainable design and construction as shown in table 4.4 with a higher frequency of 43 (53.8%) while a frequency of 1 (1.2%) of the respondents were obtained in table 4.4 not to be aware of the processes involved in the design and construction aspect of sustainability.  It was also obtained from table 4.12 with a frequency of 46 (57.5%) that Leadership in Energy and Environmental Design (LEED) is more recognized rating system for sustainable design by the stakeholders while the other four rating systems (CASBEE, GBTool, BREEAM, and HK BEAM) are not well recognized by the stakeholders and that sustainable design and construction can provide healthier, conducive and friendly environmental as obtained from table 4.29 with a percentage of 52.5% than the conventional method of construction as analyzed in table 4.25 to 4.29. It was recommended that stakeholders in Nigeria construction industry should develop a complete set of sustainable design and construction performance indicators with suitable metrics that will help in delivering a good sustainable design.

CHAPTER ONE
1.0 Introduction
1.1 Background of Study
Green building can be described as the utilization of environmentally responsible methods of optimizing the efficient use of resources such as energy and water, to maintain a healthy land, water and air quality throughout the building life cycle. According to Bourdeau (1999), the first definition of “Green Building” was proposed by Charles Kebert in 1994, during the first international conference on sustainable construction in Tampa, Florida. Kebert stated that “sustainable construction is the creation and responsible management of a healthy environment based on resource efficiency and ecological principles”. Green building is also a structure designed to meet certain life cycle based objectives so that the building can be designed, built, renovated, operated, or reused in an ecological and resource efficient manner. Dietz (2001) also suggested that sustainability (green building) could be thought of as increasing much of human welfare while reducing environmental impact.

According to Freed (2008), the first truly green buildings dated from 1st A.D. These were the stone dwellings of the Anasazi Indians (Meinhold, 2009: online). The best examples of these buildings appeared around the 700 A.D. and consisted of apartment-house-style villages which had beautiful stone masonry. Freed (2008) mentioned that the reason for considering those buildings as green buildings was that the Anasazi understood the sun and heating, natural ventilation, and how to capture water, while the only materials used were stone, mud and wood. It is important to note that the ‘Anasazi buildings’ were completely free of toxins and were healthy. Over the last decade, green buildings have come to be known as buildings that are designed and constructed with emphasis given to environmental, social and economic priorities. Most importantly, building green emphasizes long-term as well as short-term performance (Horman, Riley, Lapinski, Korkmaz, Pulaski, et.al. 2008).

Practicing green measures and embracing the concept of Green Building is one of the ways that can enlighten an individual on how the earth can survive longer in a sustainable way. In the workplace, for example, employees are seeing the advantages of working in improved environments which equates to working in a sustainable building. Employers also recognize the effects of working conditions as it will have a trickle-down effect within the workplace, especially, in the productivity of staff. Leaders can play an influential or even decisive role in how people act. Over the last two decades, as a global concern, the literature talked about the missing link between architectural education and professional practice (Elnachar, 2010).

Sustainable construction is derived from a broad concept of sustainable development, and terms such as, “ecological building”, “appropriate building” and “sustainable architecture” are used to describe “green building”. In the report of the World Commission on the Environment and Development, Brundtland (1987) defined the term as “meeting the needs of the present without compromising the ability of the future generations to meet their own needs”.  Mbamali (2005) conceptualized sustainable construction in the context of extending sustainability concept to building and construction activities and this defines the responsibility of the construction industry in attaining the state of sustainability.

Population growth and housing development have many impacts on the environment and on quality of life of the people. However, sustainability is concerned with the social economic and environmental impact of creating a usable environment. Adebayo (2002) describes construction sustainability as “building practices that can be utilized in the long term without causing damage to the environment”. It is a process of maintaining the balance between the demands of people for quality life and what is ecologically possible and which all could reasonably aspire.  The green building approach applies a project life cycle cost analysis for determining the appropriate up-front expenditure and saves operating costs over the life of the building.

Construction has significant impacts on the natural environment (Hendrickson and Horvath, 2000). Currently, buildings consume approximately 50 percent of the world’s resources. To reduce this demand, the role of sustainable education needs to be examined (Adegbile, 2011). The current effort is focused on reducing the energy intensity of buildings through the use of insulating materials, low energy lighting and natural ventilation, and not potentially hazardous toxic materials. Biomass resources available in Nigeria include fuel wood, agricultural waste and crop residue, sawdust and wood shavings, animal dung/poultry droppings, industrial “effluents/municipal solid waste (Sambo, 2009).  Many professionals have accepted Devan Sidjic’s challenge to address the issue of green urbanism Guy and Moore (2005).

Sustainability is becoming an important focal point from global construction perspective. In the western countries, such as the United States of America, the construction industry is growing sustainability ethic based on the principles of resources efficiency, health and productivity as stated by Gottfried (1996). In Nigeria, sustainable construction and sustainability issues have not received sufficient attention and awareness (Adebayo, 2002; Dahiru, 2005; and Dania, 2007). This raises the question as to the role that tertiary institutions can play in creating a more sustainable future.
To date, stakeholders often do not reach a consensus about potential benefits; environmental and social priorities do not have the same weight as financial priorities and they have misconception about the green premium being much higher than it really is (Turner, 2008). This project proposes to assess the level of stakeholders’ awareness towards green building construction in Nigeria construction industry. Awareness can be raised amongst stakeholders in the workplace who are taught about the need to conserve water and instilling the next generation with an environmental consciousness at a very early age.

 1.2. Statement of Problem   
Nigeria as a country depends mostly on crude oil and electricity for its energy fulfillment. Even though, the consumption of electricity actually declined by 13.4% between 2002 and 2006, the overall or total electricity consumption showed a marginal increase of 1.8% from 5.63GWh in 2002 to 7.47GWh in 2006 (Sambo, 2009). Professional bodies in Nigeria have been conducting series of seminars and conference, to boost the awareness and the adoption of the principles of green construction and sustainable design by the stake-holders in Nigeria. Despite the fact that professional bodies are creating awareness, the awareness level is still low and ineffective. For instance, professional bodies like the NIQS (Nigeria institute of the quantity survey) is not pierce to be as engaged as it could, with just 14% of quantity surveyors agreeing that it was sufficiently active and visible in green building (Wanipo, 2012).”

The methods by which green building can be put in place have seriously been overlooked by stakeholders in Nigeria. The proposed study will check the level at which these stakeholders in the construction industry are actually aware of green building design and construction that would lead to building sustainability in Nigeria.

 1.3. Justification of the Study
The knowledge of green building design and construction is the beginning of a new era for the country. The fast increment in the number of population within the city of Abuja and the demand for completed buildings/structures within little time, which brought about the research on the “Level of Stakeholders Awareness on Sustainable Design and Construction” to check whether Green construction is feasible to Nigeria in order to carter for the populace and their demand for a completed healthy buildings/structures within little time as compare to the conventional means of building construction.

It is feasible to apply Green construction principles in Nigeria, and it will also add a considerable solution to Nigeria’s energy challenges such as the challenge of connecting most rural areas to national grid for its energy use. Green construction is also considered essential in the practice of green architecture and environmental sustainability both in urban and rural societies in Nigeria. The need has arisen for a sustainable world and Nigeria cannot be left behind. Developing an awareness of green building construction is a necessity for stakeholder. Education of leaders and stakeholders can assist in facilitating the development and adaptation of sustainable buildings in Nigeria.

The creation of awareness about the importance of green construction as a sustainability process for structures would probably increase the demand of sustainability. Professional bodies are into the implementation of green construction and the stakeholders need to train and apply its mode of execution on site.

Therefore, this study seeks to add to other bodies of knowledge which makes this study to be carried out and so as to embark on a program that would build up their knowledge of its construction in order to adopt it within the Nigeria Construction industry.

1.4. Aim and Objectives 
1.4.1 Aim
This research is aimed at assessing stake-holders level of awareness of green building in the construction industry of Nigeria, to enlighten the participants in the construction industry on green building construction. The stake-holders include owners, investors, developers, architects, engineers and facility managers.
  
1.4.2 Objectives
 The specified objectives of the research are:
  1. To identify the stakeholders in the Nigerian construction industry.
  2. To identify determinants of awareness of green building construction
  3. To assess the level of stakeholders’ awareness of green building in Nigeria.
  4. To examine the feasibility of green construction in Nigeria.
  5. To determine whether National Building Codes cover areas on design and construction of green building in Nigeria.
1.5. Research Questions 
From the above research objectives, the following research questions will be sourced out.
  1. What is the level of stakeholder awareness in Nigeria regarding sustainable design and construction?
  2. What are the available standards and organizations that are responsible for green building construction in Nigeria?
  3. Will it help the ongoing building performance evaluation at a macro level in Nigeria to support Leadership in Energy and Environmental Design (LEED) program evaluation to inform policymakers and other LEED stakeholders?
  4. What is the need for green construction in Nigeria and how feasible is it to Nigeria economy?
 1.6 Need for the Study
The decision to build a green building that will be compatible with the environment is made early in the design process. Making a commitment to build green and establishing firm environmental objectives for the project is one of the problems and must be dealt with as early as possible because opportunities for incorporating green technologies and design solutions become less and less available and increasingly costly to implement as the project design and construction process progresses. This early decision helps to maximize the overall success by incorporating the green potential, minimize redesign, and ensuring the economic viability of the green elements of the building project. Ideally, the decision to build green should be made before the site is selected, as many of the green criteria are affected by site characteristics and some sites are inappropriate for certain eco-friendly and energy sustainability projects.

 1.7 Methodology
An assessment of the stakeholder level of awareness about the design and materials used for the construction of green building will be based on the following:
  1. Personal observation and/or administration of questionnaires to relevant people concerned
  2. Data gathered from relevant authorities concerned.
  3. Review Information from related journals and textbooks.
  4. Review the Leadership in Energy and Environmental Design for Existing Building (LEED-EB) criteria on green building design and construction.
1.8 Scope and De-limitation of the Study
1.8.1 Scope
The scope of this research work proposes to assess adequately the level of stakeholder awareness towards green building construction in Abuja, Nigeria based on green building criteria. Low development in the construction of green buildings in the country when carrying out this research work has hinder the collection of data thereby relying on data/information from  relevant professionals in the field, journals, related textbooks, internet and related reports.”

1.8.2 De-limitation
As a result of time factor and other considered factors, this research work will be limited to the level of stakeholder awareness on green building construction in Abuja, Nigeria.

1.9 Definition of Terms
This part of this chapter consists of definition of some terms that are relevant to green buildings as they used in this study.

1.9.1 Orientation of the Building: The orientation of the building has to be considered according to the sun position as the picture shows, the house has to be designed in such a way that the sun heats the house in cold season, but during the hot time the windows should be in the shade in order to keep it cool. The size of the windows has to be wide enough to let cool breeze come in. The sun-impact on the windows and facades

1.9.2 Integrated Design Process: Building a green building is not just a matter of assembling a collection of the latest green technologies or materials. Rather, it is a process in which every element of the design is first optimized and then the impact and interrelationship of various different elements and systems within the building and site are re-evaluated, integrated, and optimized as part of a whole building solution.”

1.9.3 Building Envelope: This consists of structural materials and finishes that enclose space, separating inside from outside. This includes walls, windows, doors, roofs, and floor surfaces. The envelope must balance requirements for ventilation and daylight while providing thermal and moisture protection appropriate to the climatic conditions of the site. Building Envelope design is a major factor in determining the amount of energy a building will use in its operation.

1.9.4 Sustainable Development: This is the challenge of meeting growing human needs for natural resources, industrial products, energy, food, transportation, shelter, and effective waste management while conserving and protecting environmental quality and the natural resource base essential for future life and development. This concept recognizes that meeting long-term human needs will be impossible unless we also conserve the earth’s natural physical, chemical, and biological systems.

1.9.5 Life-Cycle Cost Analysis: This is an increasingly accepted analytical method that calculates costs over the “useful” or anticipated life of an asset—reveals that low up-front expenditures, though easier to finance at building inception, can result in much higher costs over the life of a building or system.

1.9.6 Sustainable Site Design: Environmentally sound site selection and design are evolving processes that integrate local needs with the existing natural environment and pre-existing infrastructure. Designers of local government projects should be especially aware of such issues as access to the site by public transportation, impact of development on the surrounding community, and inclusion of public amenities, such as recreational green space.

1.9.7 Passive Solar Design: this is a broad term used to encompass a wide range of strategies and options resulting in energy-efficient building design and increased occupant comfort.

1.9.8 Day Lighting: This is the practice of bringing light into a building interior and distributing it in a way that provides more desirable and better-quality illumination than artificial light sources. This reduces the need for electrical light sources, thus cutting down on electricity use and its associated costs and pollution.

1.9.9 Photovoltaic (PV) Technology: This is the direct conversion of sunlight to electricity using semi-conductor devices called solar cells.”


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Sunday, 29 November 2015

EVALUATION OF MANAGEMENT APPROACH TO CONSTRUCTION OF MASS HOUSING.

 

EVALUATION OF MANAGEMENT APPROACH TO CONSTRUCTION OF MASS HOUSING.



CHAPTER ONE
1.0   INTRODUCTION
Adequate provision of  housing is an important index for measuring housing standard  among nations. It is difficult to talk about the success of a nation, or a society within a nation without analyzing its housing situation.
Housing provides a link between the physical development of a city, and its social and economics outcomes. The availability of decent housing for each family defines the level of development which the country has reached. This is because the social and economic wealth of a country can only co-exist with good housing .
Housing is not concerned with the design of a specific housing unit, It is concerned with the design of a whole housing environment which includes accommodations, jobs ,educations ,health service, etc., in a context which is accessible , safe, hygienic, aesthetically pleasing and also sustainable.

Mass Housing is a term most people use to describe a cluster of high rise ,low cost residential buildings. This is usually not always the case . Mass housing is the construction of springing up of a relatively high number of residential buildings in an area in a relatively high number of residential buildings in an area in a relatively short period of time due to high demand.

One of the notable periods which brought about the idea of mass housing and also came along with numerous housing problems was the industrial revaluation.
It was called a revolution because it changed the society in a rapid and significant way. It brought about capitalism and also created a shift from the agricultural society to modern industrial societies. Due to this introduction of capitalism and the movement of goods productions from houses to factories, people migrated from these rural areas of agricultural to cities in search of new jobs, so as to earn a wage or salary . With time urbanization increased rapidly, and led to a significant rapid increase in population in the industrial cities. Because of this rapid increase in population, more and more housing had to be provided for the labor force. This scarcity of housing led to the construction of mass housing , which had poor living conditions and were characterized as unhygienic, overcrowded and also lacked infrastructure and social amenities.
The world War is another event in history  which affected the provision and construction of housing. After the war, there was a critical high demand of housing, because of the numbers of houses damaged or destroyed by enemy attacks, and also in cities which still stood but had a high number of immigrants in search of shelters. Large numbers of houses where to be built quickly and economically. The ideas was to design houses that could be mass produced and prefabricated.
Another event that has brought about a change in the housing and is present to date is globalization ,post communism which increased  immigration to developed countries from other countries and privatization.

Mass housing would come to be an important and essential development in most developing countries because of the amount of people moving from rural parts of the country to the urbanized and developing part.
The lack and deterioration of housing environments pose some of the greatest practical and ethical problems which were faced by some developed countries and developing countries.
Another contemporary issue regarding housing is  sustainability and sustainable housing. This is because sustainability refers to the ability of the natural environment to accommodate human activities, most especially those involving long term economic development; and because housing provides a link between the physical development of a city, Which has to do with the environment ,and also its social and economics outcomes, it is in a position of showing the way a more sustainable development.
Nigeria as a developing country, with 36 states, is undergoing a fast process  of urbanization. it is a country blessed with agriculture and crude oil. its major source of income and revenue was from agriculture produce but after the oil boom in the 1970s, Nigeria started shifting its concentration from agriculture to crude oil and of  2007 was the 15th largest producer of petroleum in the world.
Also it has one of the fastest growing telecommunication markets in the world ,

And is also developing vastly in information technology. Due to these diversion from agriculture ,and a vast development in the urban areas, high populations of people migrate from rural to urban areas in search of jobs to earn a higher salary and a means of living. This migration means an increase in the demand of housing in these urban areas.
Mass Housing is a solution which Nigeria and most developing countries take up as a solution to their housing problems, but in most of these mass housing environments, neither the demand of the households and need of space, or the cultural factors are usually considered during the design process. This coupled with other factors which not only affect the mass housing environments, but also it affect the housing of the country in a whole, in one way or the other.
Some  thirty years ago, the government moved the Federal Capital Territory of Nigeria from Lagos to the inner part of the country towards the center, and the city of Abuja was founded. As the new Federal capita Territory of Nigeria ,Abuja is a city where urbanization and development in terms of commercial, residential, industrial, social and political growth has been in progress and is still taking place.
Today it is a city of grand avenues and huge complex ,which house government offices.
The  population of Abuja has increased tremendously and still on the production of housing and its demand. It is a lovely city, but it is also a city which is too costly for most of the people  who work in the government  and service industries to afford, and as such like so many other cities in the developing world , it is surrounded by vast neighborhoods of poverty, satellite towns, slums, informal settlements and different mass housing schemes.
The provision of this mass housing in Abuja by the government is an answer to providing shelter for people, but in most cases, these developments comes with negative  physical socio-cultural and economical effects on the overall city.
Also, the part  of Nigeria which was selected and demarcated to be made the Federal Capital Territory of the country was already inhabited by the Gbagy people, who are the original settlers. Because of this, the settlers had to displaced from their place of origin. The Federal government after this, constructed different mass housing developments in various parts of Abuja for this original settlers to be relocated and re-settled.
This was another development , in which neither the socio-cultural factor nor the need of space were considered.
From the present situation of mass housing environments in Abuja ,it seems the mass housing development are showing unsustainable characteristics.
Thus this research is based on Evaluation of Management approach to construction of mass housing Nigeria, by revealing some selected management system to construction of mass housing and also review the concept behind Mass Housing Development.

1.1   AIM
The Aim of this Research is to assess the methods by which mass housing development  can be achieved.

1.2   OBJECTIVES
I.       To Review some selected management system for mass housing development.
II.     T o Review  some concept of mass housing development.
III.   To analyze some challenges, and possibly solutions to  mass housing delivery.

1.3   scope
This study is scoped by Mass housing delivery and the concept of housing development and their approach of management.

1.4    METHODOLOGY
Information and Data’s used for this work was obtain from various forms and source, were textbook ,sites visits, magazine, articles, and administration of questionnaires and interviews with practicing professionals in the Mass housing and Real estate development firms was observed.
   
CHAPTER TWO
2.O  LITERATURE REVIEW
­­­­­­­­­­­­­­­There is no doubt that management inefficiencies have consistently been a major problems confronting developers in the Nigeria mass housing project delivery. In Nigeria cities are growing at an unprecedented rate and there is rising pressure on government  to house the people and provide infrastructure facilities, but in large part government are unable to match demand and with simultaneous provision of adequate housing and infrastructure ( Ajanlekoko 2001). The factors responsible are complex , interrelated and inter connected and range from inadequate financial resource to low capacity in the public sector to implement project ( Aribigbola, 2008). To deal with these challenges , new approaches that involves collaboration among an increasing number of stakeholders  are resorted to (Bennett, 1998) Public-Private partnership describe a spectrum of possible relationships between the public and private actors for the cooperative provision of infrastructure service. Largely championed by the word Bank.

Today ppp is widely accepted as the frame work for resolving the needs /demand gap in the shelter provision.
It is pertinent to observe that in the past years the importance of the ppp has been harped in by researches.  For instance, Akintoye et al,(2006) observed that ppp is more efficient to deliver adequate housing through a properly functioning housing market than through the public agencies or the non-profit non-governmental agencies. 


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