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This research studied “evaluating the effectiveness of project delivery methods in South-East Nigeria”. There are alternatives delivery methods for executing a project, the choice of selection are mostly done on familiarity bases, which is purely subjective and may not offer a better approach to optimize the overall success of the project. An extensive review of literatures in relation to the study was made with respect to text and similar work done by other scholars. The choice of a delivery method of a project needs to be subjected to a proper evaluation, with respect to the key pertinent issues (client objectives). The types of project delivery methods was sieved first through an extensive literature review; and about Nine (9) methods were identified. An evaluation on the delivery method is further carried out using related literatures. Eleven (11) pertinent issues (client and project objectives) were used to assess how effective a delivery method responds to a pertinent issue. A field survey was futher carried out to generate reactions from experienced professionals in the industry, this was achieved by first conducting a pilot study to enable determine those factors or issues that actually affects a project in the course of its delivery. A total of ten (10) respondents were randomly selected from the parent population using an open-ended question. The first ten (10) issues or factors that had the highest percentages of occurrence or frequencies from their responses were futher used as the major issues to evaluate the delivery methods. However Time, Cost, and Quality were the issues with the highest frequencies. The field survey was conducted in four (4) South-Eastern states in Nigeria, a population of one hundred and fifty (150) respondents was used for the study, their responses were used in generating of the data needed for the evaluation. The data generated were analyzed using frequency tables, simple percentages, mean scores, and z-test. The result obtained was futher used in evaluating and ranking the delivery methods, using the Spearman Rank Correlation Analysis. The evaluation reveals that Time, Cost, and Quality are three close-ended interdependent issues, which borders on every project. Some delivery methods respond positively to any of these issue, but yet, negatively to any of them at the same time. Hypothetical testing among these three (3) key issues was conducted to see if there is any significant relationship among them in evaluating a delivery method using the z-test. The result revealed that time, and quality has a significant relationship, which could be either positive or negative; cost and quality equally have a relationship, but time and cost has no significant relationship in evaluating a delivery method. However the result of findings was used in the summary and recommendation. However no project delivery method can be said to possess all the advantages required in a project with respect to the pertinent issues. But a project should be subjected to a full and proper evaluation before selecting a particular method.
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY
The construction industry is one of the important Economic Sectors especially in a developing country like Nigeria, Infact, no sector of the economy can develop effectively without infrastructural facilities e.g. building, roads etc. Osofisan (2007), states that “in many developing countries like Nigeria, the construction sector to which the building industry belongs is one of the biggest contributors to the Gross National Product (GNP)”. She further concluded that “Similarly, it has been noted that in some developed countries, more than 16 percent of their GNP is devoted to the construction industries”. The construction sector is a sub-sector of the economy that creates basic infrastructure needed to accommodate inputs of all other sectors. That’s is why construction products are regarded as the essential of life and economic development.
However, inspite of the importance of the industry, construction projects are complicated, parallel, dynamic in nature, and are faced with a lot of problems especially in Nigeria. Construction projects, therefore, require adequate and effective project delivery methods. Consequently clients/owners of construction projects are often bothered with diverse needs in their projects. In order to accommodate these differing needs, various methods for contractual relations have evolved; these various methods are referred to as “project delivery methods”. A project delivery method could be defined as a system designed and packaged to effectively and collectively bring together the owners intentions and the project scope definition in relation to the design and construction issues, in order to be effectively managed by the construction industry participants However, in the early 1980s, owners of construction projects have been putting greater pressure on the construction industry to improve quality, reduced cost and more importantly, compress the period from project conception to project completion for all kinds of public and private projects. As a result, both owners and the industry have been experimenting with various forms of project delivery methods with varying degrees of success, as even new methods yet to be experimented are discovered. However, without effective project delivery methods, construction projects may be abandoned.
1.2 STATEMENT OF PROBLEM
Construction projects differ from each other, infact two projects with the same design still differ and this is one of the attributes of the industry. Construction projects are unique and thus, exhibit certain characteristics which is different from every other sector of the economy; Therefore, construction projects should be subjected to a proper evaluation of the available alternative methods of its delivery in relation to the owners interest and the scope of the project, considering also other pertinent issues because ineffective project delivery method could lend to
§ Abandonment of project
§ Cost-overrun of project
§ Delay in project completion time
§ Less quality product
§ Lack of technology input
§ Disallowance of flexibility and innovation
§ Multiple construction contracts
§ Increased adversarial relationship Reduction of possibility of competition Increase in life cycle cost etc.
The uniqueness of every project has reduced the chance of selecting like projects and executing them with the same method. Most selections of alternative methods are done based on a previously used method and this reduces the chance of achieving maximum success for many projects. And these have led to some of the above listed problems
1.3 AIM AND OBJECTIVES OF STUDY
The aim of this study is to evaluate how project delivery methods are used in the Nigerian construction industry, with the following objectives:
1. To find out various types of projects delivery methods used in the construction industry.
2. To evaluate the effectiveness of various project delivery methods.
3. To identify the factors influencing the choice of project delivery methods
4. To recommend suitable alternative project delivery methods.
5. To find out if the size of a project could affect the choice of its delivery.
6. To find out if evaluation is usually carried out on most project before selecting a particular method of delivery.
7. To investigate the degree of relationship between/among the three (3) key issues (i.e cost time and quality) and their behaviour in selecting a delivery method.
1.4 SCOPE AND LIMITATIONS OF STUDY
The scope of this study comprised of response from professionals in the construction industry and type of project for this study will be limited to projects in four (4) South-Eastern States in Nigeria i.e. (Anambra, Abia, Enugu and Imo).
1.5 SIGNIFICANCE OF STUDY
This study will guide project owners or construction proponents in selecting an appropriate delivery method for their construction projects in order to ensure the overall performance of the project.
It will also help professionals to advice and guide their clients, by helping them to point out issues which ought to be considered when evaluating and selecting a delivery method.
It will also assist government agencies in defining project requirements for a successful delivery of project, especially on capital projects.
Also, in the improvement of knowledge in differentiating a project delivery method, a project management method and a contract type or format.
1.6 RESEARCH QUESTIONS
The following research questions form the basis of this study:
1. What are the types of project delivery method used in the construction industry?
2. Which factor(s) influences the choice of a project delivery method?
3. How effectively does a project delivery method responds to client objectives and project requirements?
4. Which delivery method(s) could be recommended to construction proponent towards achieving their objectives?
5. Does the size (cost) of a project affects the choice of its delivery?
6. Are evaluations usually carried out on most projects before the selection of its method of delivery?
7. Is there any relationship between cost, time, and quality in evaluating a delivery method?
1.7 RESEARCH HYPOTHESIS
The following hypothesis shall be subjected to empirical evidence based on the data collected
1. Ho: Time and Quality has no significant relationship in the evaluation of a project delivery method.
H1: Time and Quality has a significant relationship in the evaluation of a project delivery method.
2. Ho: Time and Cost has no significant relationship in the evaluation of a
project delivery method.
H1: Time and Cost has a significant relationship in the evaluation of a
project delivery method.
3. Ho: Cost and Quality has no significant relationship in the evaluation of
a project delivery method.
H1: Cost and Quality has a significant relationship in the evaluation of
a project delivery method.