FACTORS AFFECTING INDIGENOUS CONTRACTORS PERFORMANCE IN BUILDING PRODUCTION IN NIGERIA

FACTORS AFFECTING INDIGENOUS CONTRACTORS PERFORMANCE IN BUILDING PRODUCTION IN NIGERIA

Abstract

The study was designed to find and solve the factors affecting the indigenous contractor in building production in Nigeria. 282 factors were developed in questionnaire and were divided into three part(A,B and C sections) which comprises of those factors affecting them and way out and 73 questionnaire were administered while 42 were given back. The data was analyzed using mean, standard deviation and t-test. Based on the findings, it was recommended that Indigenous Contractors should have proper project organization structure, adequate insurance cover, mode of financial bonds and payments and experienced personnel.

CHAPTER ONE

 INTRODUCTION

1.1       BACKGROUND OF THE STUDY

The construction industry is almost as old as nature itself and unlike many manufacturing industries, is concerned mostly with one-off project. The construction is a sector that is sensitive to change in both fiscal and monetary disturbance. The construction industry is very important in the economic development of any nation especially in an expanding economy like Nigeria (Ibironke, 2003).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).

An efficient construction sector is a pre-requisite to effective national development since building, civil and industrial engineering works are usually a major contribution to Gross Fixed Capital Formation, Gross Domestic Product and National Employment. The growth of construction industry in Nigeria in the past two decades indicates its success in greatly contributing to the country’s Gross National Product, which was 1.72 in Year 2007 (Federal bureau of statistics).

This industry sector is the second most important for absorbing human resources after the food. The industry also generates employment opportunities which place it second to the Government in the employment of labour (Husseini, 1991).

The rate of construction activity has significant effect upon the economic growth and it is inextricably interrelated to the economy (Seeley, 1997). The Nigerian Construction Sector accounts for between 40% and 50% of the capital formation in Nigeria (Umo, 1984, Ayandele, 1996). Indeed the significance of the Nigeria Construction Sector for economic growth and development cannot be overemphasized (Okpala&Aniekwu ,1988). Unfortunately, the Nigeria Construction Sector is underdeveloped in terms of mechanization, productivity and the benefits derivable from industrial progress (Olatunjiet al. 2000).

The Nigeria Construction Sector is also characterized by poor time and cost performance, sometimes leading to outright abandonment of the projects (Ajanlekoko, 1987; Okpala&Aniekwu, 1988; Odeyinka&Yusif, 1997; Mbachu, 1998; Elinwa&Uba, 2001; Aibinu&Jagboro, 2002). Elinwa&Buba (1993) showed that projects in the Nigeria Construction Sector overrun their initial duration by between 50 and 420%. One of the factors responsible for overruns is poor productivity in the sector among others (Mansfield et al., 1994).

To remain relevant in the ailing economy the Nigeria Construction Sector must improve its performance (Okpala&Aniekwu, 1988). The Nigeria Construction Sector can be broadly divided into the formal and informal sub sectors. One of the most important challenges facing the Nigeria Construction Sector is low level of productivity especially in projects handled by the Indigenous Construction Contractors (Aniekwu&Okpala, 1987; Fagbenle 2000).

Olomolaiye, et al. (1987) find that the actual working time to be 51% of the working day for bricklayers, 44% for joiners and 56% for steel fixers. Some plausible reasons for the low productivity in the Nigeria Construction Sector include, short supply of both manpower and materials; complexity involved in the construction process, inclement weather; ineffective supervision and Absenteeism. Other factors include lack of necessary tools and equipment and re-work due to changes in instruction (Wahab,.1977, Olomolaiyeet al.,1987).

The Nigerian Indigenous Construction Contractors are faced with the problem of workers not ready to work, folding up of organization, abandoned work, incomplete job or contract at the scheduled time. Construction workers are subjected to a work environment which has not encouraged high levels of efficiency. The non-payment of wages, the interruption of work due to lack of materials or tools, and the consequent loss of morale has led to an exodus of traditional craftsmen from the Nigeria Construction Sector (Olomolaiyeet al.,1987).

The rate of apprenticeship for trades in the Nigeria Construction Sector is on the decline; this may be due to the lack of motivation in the Indigenous Construction Contractors (Uwakweh, 2002).

The vast majority of project managers do not know how to identify and link operatives’ goals with organization rewards in order to motivate the operatives (Nwachukwu,1998). Thus if management can identify and improve motivating elements there is a strong likelihood that productivity can be improved (Olomolaiye&Ogunlana, 1988).

1.2       STATEMENT OF PROBLEM

The Nigeria Construction Sector is by poor time and cost performance, sometimes leading to outright abandonment of the projects (Ajanlekoko, 1987; Okpala & Aniekwu, 1988; Odeyinka & Yusif, 1997; Mbachu,1998, Elinwa&Uba, 2001; Aibinu&Jagboro, 2002). One of the factors responsible for overruns is poor productivity in the sector among others (Mansfield et al., 1994).

Some plausible reasons for the low productivity in the Nigeria Construction Sector include, short supply of both manpower and materials; complexity involved in the construction process, inclement weather; ineffective supervision and Absenteeism. Other factors include lack of necessary tools and equipment and re-work due to changes in instruction (Wahab,1977, Olomolaiyeet al.,1987).

The Nigerian Indigenous Construction Contractors are faced with the problem of workers not ready to work, folding up of organization, abandoned work, incomplete job or contract at the scheduled time. Construction workers are subjected to a work environment which has not encouraged high levels of efficiency.

The non-payment of wages, the interruption of work due to lack of materials or tools, and the consequent loss of morale has led to an exodus of traditional craftsmen from the Nigeria Construction Sector (Olomolaiyeet al.,1987).

The rate of apprenticeship for trades in the Nigeria Construction Sector is on the decline; this may be due to the lack of motivation in the Indigenous Construction Contractors (Uwakweh ,2002). This factors motivate the study to evaluate the factors affecting indigenous construction contractors in Nigeria to produce strategies to improve the performance of the contractor in Nigeria.

1.3       AIM & OBJECTIVES

1.3.1    Aim

The aim of the study is to make sure that indigenous contractors in Nigeria are capable of any construction work given to them and be able to compete with foreign construction contractors.

1.3.2    Objectives

The specific objectives of the study are:

1. To identify the factors affecting indigenous contractors in Nigeria.
2. To investigate time and cost overrun of indigenous contractors projects.
3. To provide the strategies to improve indigenous contractors participation in Nigeria.

1.4       JUSTIFICATION

The study will provide scope of monitoring and control to indigenous construction contractors at where there will be no major project failures that could be traced to inadequate and inaccurate planning or blind adherence to the originally formulated plans regardless of how the environment changed in the interim.

It will also provide technique on how to stop the problem of rework at both design and construction stage which is regarded as construction waste and was classified into three main categories by Ekanayake & Ofori, (2000) as materials, labour and machinery waste.

It will address the matter of constraints to viability of indigenous contractors in Nigeria that have been identified to include uncertainties in supplies and prices of materials, difficulty in obtaining interim payment, access to capital, access to and maintenance of plant and equipment, poor accounting or financial management.

The study will explain how they can increase their capacity and capability in the process of the technology transfer in construction at where it is expected that at the end of the contract period, a substantial degree of technology has been imparted by foreign international contractors to indigenous contractors of host countries who will then be able to play a major role in undertaking similar projects in the future, both domestic and international.

1.5       SCOPE & LIMITATION

The scope of the study is to evaluate some factors affecting indigenous construction contractor performance in building production in Nigeria using Abuja as area of study.

 1.6       METHODOLOGY

The study is base on factors affecting indigenous construction contractors in building production in Nigeria, at where some of Indigenous Construction Companies in Abuja [federal capital territory] of Nigeria will be visited to evaluate those factors affecting them. The place is selected because of frequent construction activities going on there.

One-to-one interview with some of these indigenous construction contractors who are involve in building production will be conducted to know some factors affecting their performance in Nigeria.

Data will be collected through a survey questionnaire administer to participant on building construction in Abuja and those participant will comprises of clients/developers, contractors, consultants who are engaged in building production in Nigeria and this questionnaire will also be given to labourers on site to share their experience they have since when they have been working with these indigenous construction contractors.

In addition data will be gather together from NIOB, CORBON on how to tackle these factors affecting these contractors and all these will be analysed using Relative Importance Index [RII]

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