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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 capital 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.
2.1.0 SETTING OF THE PUBLIC PRIVATE PARTNERSHIP IN THE MASS HOUSING PROGRAM OF ABUJA NIGERIA.
Abuja became the administrative capital of Nigeria in December, 1991 following the relocation of the capital city from Lagos with the aid of a master plan, Abuja has a designed capacity of 3.2million even though less than 50% of the planned development has been attained ( imam,et.al 2008).
Housing is a major challenge for the city government but the series of policy, the realization of housing development were inconsistent, slow and procedurally difficult ( Abdullahi & Aziz 2010).
These have led to serious overcrowding and Massive development of squatters settlements and slums all over Abuja.
private sector participation in housing delivery dates back to the early 1990s when the 1991 National housing policy(NHP) was introduce (FRN, 1991). Government pursed a two-pronged strategy of encouraging direct public housing provision and simultaneous of the private sector housing to improve housing delivery.
In other words while government accepted the need to encourage the private sector to play a more effective role in housing, if did not give up its role as intervened through direct public housing provision.
However in the year 2000 government adopted a more market oriented approach to housing provision.
Based on the policy, The federal capital territory administration (FCTA) launched its guideline for mass housing development (MHD) which provide the background for mass housing under the PPP Approach ( FRN 2009), The guidelines allows for legal parcels of land to be granted to private sector real estate developers at low prices. These developers were to then construct estate of affordable housing and tertiary infrastructure , linking these communities to the government provided primary infrastructure. They however not issued with a formal Right Of Occupancy (R-OF-O), but a letter of intent (LI).
This allows them to source for founds from any financial institution to enable them carry out their development . It also defers the payment of land charges till after development lease agreement (DLA) and an undertaken to mobilize to site within six months and complete development within three years from the date of signing of agreement. It also require the developers to comply with the city regulations, standards and specifications in the course of mass housing delivery, (Gidman, et al, 1995; UN-HABITAT, 2006).
There are other concept of mass housing project delivery that compel the ppp approach of mass housing project development which determines its success or failure, and they are;
I. BOT ( build-operate-transfer)
II. BOOT (build-own-operate-transfer)
III. BLT (build-lease-transfer)
IV. DBFO (design-built-finance-operate) etc
1. BOT (Build-operate-transfer)
BOT finds extensive application in mass housing development and in public private partnership. In the BOT framework a third party, for example the public administration, delegates to a private sector entity to design and build infrastructure and to operate and maintain these facilities for a certain period. During this period the private party has responsibility to raise the finance for the project and is the owner of the regarded facility. The facility will be then transferred to the public administration at the end of the concession agreement, without any remuneration of the private entity involved. Some of the parties involved in BOT.
§ THE GOVERNMENT: Normally the government is the initiator of the infrastructure project and decides if the BOT model is appropriate to meets its needs. In addition the political and economic circumstances are main factor for this decision. The government provides normally support for the project in some forms.(provision of land/changed laws)
§ THE CONCESSIONAIRE: The project sponsor who act as concessionaire create a special purpose entity which is capitalized through their financial contribution.
2. BOOT (build-own-operate-transfer)
A BOOT structure differs from BOT, in that the private entity owns the works. During the concession period the private company owns and operates the facility with the prime goal to recover the costs of investment and maintenance while trying to achieve higher margin on project delivery. The specific characteristics of BOOT make it suitable for mass housing project delivery. some advantages of BOOT in mass housing development are,
§ Encourage private investment in mass housing development
§ completing project within time frame and planned budget
§ providing additional financial source for other priority projects
§ introduction of technology in housing delivery
3. BLT ( build-lease-transfer) under BLT a private entity build a complete project and lease it to the government. On this way the control over the project is transferred from the project owner to a lessee. In other word the ownership remains by shareholders but operational responsibility are transferred to the government at a previously agreed price. BLT provides good conditions because the project company maintains the property rights while avoiding operational risk.
4. DBFO ( design-build-finance-operate)
Design built finance operate is a project delivery method very similar to BOOT except that there is no actual ownership transfer. Mover, the contractor assumes the risk of financing till the end of the contract period. The responsibility for maintenance and operation. some disadvantages of DBFO are the difficulty with long terms relationships and the threat of future political changes which may not agree with prior commitments.
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