THE EFFECTS OF DELAYS AND DISRUPTION ON THE COST OF BUILDING CONSTRUCTION PROJECTS IN NIGERIA

1.1 Introduction

Delay as referred in construction is prolonged construction period and disruptions are events that disturb the construction programme. Delays and disruptions are among the challenges faced in the course of executing construction projects. Delays as well as disruptions are sources of potential risks that current studies are looking into ways to manage. Delays and disruptions have had effects to construction projects. The Construction industry can be described as a collection of loosely integrated firms involved in the provision of the materials for the construction of structures, designing facilities to be constructed, constructing the facilities, installation of specialized services in the constructed structures, and supervision of the constructions in the areas of building and civil engineering works.

As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.

1.2 Background of Study

Construction projects refer to the projects undertaken by the construction industry to provide the much needed infrastructures for national development. Cost overrun is a term used to express situations when actual cost of a project exceeds the budgeted cost. Time overrun is a situation when the actual completion date outpaced the scheduled completion date. The budgeted cost and scheduled completion date most often are not positively achieved by the contractor. More time and money are usually required to complete the construction of a project. Cost-and time-overruns in construction projects negatively impacts on the important role the construction industry plays in any given economy, especially developing economies such as Nigeria’s.

Delays and disruptive in construction has some effects on its cost and very retrogressive in a developing economy like Nigeria and needs to be properly addressed and tackled with all the courage and effort that we can muster.

Most town and cities in Nigeria are dotted with projects that are being delayed, disrupted, and uncompleted. Explanations giving for the stages of each buildings project is varied and sometimes attributed to lack of financial, human and material resources with which to execute the projects. It is common in Nigeria especially now that the country is suffering from depression in the economy. It is often bad to see huge capital investments being disrupted and abandoned. Any attempt to delay and disrupt a construction project; will have terrible consequences on every aspect of the nation's activities which will be severe and unwelcome.

Therefore, in Enugu State where the research was carried out, the activities that was conducted is to know the Effects of Delays and Disruption on the Cost of Building Construction Projects in Nigeria.

1.3 Statement of Problems

Investigation revealed that one of the biggest problems associated with most of the construction projects in Nigeria today is problem of delays and disruptions at both the pre-contract and post-contract stages of construction in building and civil engineering works. The cost of building increases at the cause of delays and disruption in construction because of variation. Many construction project in Enugu needed huge capital outlay and time to execute them and any attempt to delaying and disrupting the construction proper will result to terrible consequences that will affect the economical control and building cost.

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.

1.4 Aim and Objectives of Study

The aim of the study is to investigate the Effects of Delays and Disruption on the Cost of Building Construction Projects in Nigeria using Enugu State as a case study. In achieving this aim, the following specific objectives were laid out as follows:

1. To ascertain the effects of delays and disruptions on cost of building construction.
2. To investigate into most delayed and disrupted construction projects.
3. To examine the effect of fluctuation in prices on construction projects costs.
4. To examine the effects of variation in design on construction project costs.
5. To examine the costs of delayed and disrupted construction project to clients, contractors, the professionals that are engaged and the nation, in particular Enugu state.

1.5 Research Questions

The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:

• Do fluctuations in prices bring about changes in construction project cost?
• In what ways can variations in design affect construction cost?
• What are the causes of delays and disruptions in construction projects?
• What are the effects of delays and disruptions on building construction project cost?
• What the costs are of delayed and disrupted construction projects to the clients, contractors, the professionals that are engaged in the field?

1.6 Research Hypothesis

In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.

Hypothesis One

• H0: Delays and disruptions have no significant effect on building construction projects.
• H0: Delays and disruptions have significant effect on building construction projects.

Hypothesis Two

• H0: There is no significant factor instigating the delays and disruptions on cost of building construction in Nigeria.
• H1: There is a significant factor instigating the delays and disruptions on cost of building construction in Nigeria.

1.7 Significance of Study

This study will be beneficial to the most construction industry in Nigeria because once a project is initiated and manage properly it will eliminate high cost of procurement and a lot profit are involved.

Also this will help in planning and execution of future construction project executions, especially the quantity surveyor in the feasibility and planning stages of a proposed scheme and preparation of work method and schedules by the building manager.

The study also intend to bring together, the causes of construction delays and disruptions and also tries to ascertain the costs, which will help the construction firms, Engineers, Surveyors and construction managers to initialize and control their project without lost or poor management.

1.8 Scope of Study

The scope of the research is focused on the Effects of Delays and Disruption on the Cost of Building Construction Projects in Nigeria using Enugu State as a case study.

1.9 Limitations of the Study

During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Research material: availability of research material is a major setback to the scope of the study.
3. Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
4. Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

1.10 Definition of Terms

Delay: Delay in construction can be defined as an act whereby projects execution is slow or interrupted one time or the other, thereby leading to unnecessary extension in the programme of work from what was initially scheduled.

Disruption: Disruption in construction projects can be defined as an act or sites partially or completely deserted at one time or the other for the reasons of certain exigencies which have resulted in prolonged delays which are not in accordance with the programme of work in use extension of time or postponement as initially scheduled.

Cost: The estimated amount of money that will be needed for something or the price that should be charged for something. Also, it implies the effort, loss or damage that is involved in order to do or achieve something.

Construction: The process or method of building or making something, especially road, building, bridges etc.