ABSTRACT
The current economic crisis has widened the gap between resources
requirements to meet planned goals and the projected availability of
funds for construction projects. Ineffective materials management has
become a source of problem to successful construction project
management, because materials take about 65 percent of the total cost of
a construction project.
In this study, fifty construction professionals provided the data on
materials management in construction industry using Port Harcourt as
the sampling site. Questionnaires were used to collect data from three
main groups of project participants. (clients, consultants and
contractors). The critical factors of materials management were
summarized into five basic variables namely materials planning, material
procurement, material handling, material storage and material usage. Six
basic questions were asked on each and the numerical summation of the
ratings of a respondent formed the observed value for the variable for
that particular respondent. The same was done for the assessment of the
state materials management as applicable to construction industry in
Nigeria, which formed the dependent variable Y. The summary of the
field data was subjected to statistical analysis. The result of the analysis
showed that of the five factors, only three (planning, procurement and
usage) were statistically established as being critical to materials
management efforts for construction project to the level of 77.8%.
The study therefore, concludes that materials handling and storage
efforts though important to materials management in construction
projects should be de-emphasized since good planning, procurement and
usage procedure will incorporate them.
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TABLE OF CONTENT
Page
Title page == = = = = = = = = = i
Certification = = = = = = = = = ii
Dedication = = = = = = = = = = iii
Acknowledgement = = = = = = = = iv
Abstract = = = = = = = = = = v
Table of content = = = = = = = = = vi
CHAPTER ONE
Introduction = = = = = = = = = 1
1.1 Overview of the study: = = = = = = = 1
1.2 Statement of problem: = = = = = = 4
1.3 Objectives of study: = = = = = = = 5
1.4 Hypotheses: = = = = = = = = 5
1.5 Significance of study: = = = = = = 6
1.6 The need of the study: = = = = = = 7
1.7 Scope of study: = = = = = = = = 7
CHAPTER TWO
Literature Review = = = = = = = = 8
2.1 Introduction: = = = = = = = = 8
2.2 Characteristics of the construction = = = =
industry in Nigeria: = = = = = = = 9
2.3 Composition pf project construction cost == = = 12
2.4 Materials management defined/Materials = = = 14
planning in construction projects = = = =
2.5 Material Planning in Construction = = = = 16
2.4.2 Construction material planning using the critical
vi
path method (CPM) = = = = = = = 22
2.3.4 Material planning using network analysis:= = = 23
2.4.4 Construction material planning using bill of quantities 25
2.5 Material procurement = = = = = = = 26
2.6 Material Handling in the Construction Industry = = 29
2.6.1 Material Storage in the Construction Industry = = 31
2.7 Monitoring Material usage on construction site
(Stock Control) = = = = = = = = 32
2.7.1 Stock Holding on Construction Sites = = = = 33
2.8 Source of Material Waste on Construction Sites = = 35
CHAPTER THREE
RESEARCH METHODOLOGY = = = = = = 36
3.0 Introduction = = = = = = = = 36
3.1 Study Approach = = = = = = = 36
3.2 Sources of data = = = = = = = 36
3.3 Sample size/sampling technique = = = = 38
3.4 Tools and methods of data analysis: = = = = 40
3.5 Analysis mode formulation = = = = = 40
CHAPTER FOUR
DATE PRESENTATION AND ANALYSIS = = = = 46
4.0 Introduction = = = = = = = = 46
4.1.1 Spread of respondents: = = = = = = 46
4.1.2 Responses on the state of cost for completing projects = 47
4.2 Summary of the weighted scores = = = = 47
4.3 Data analysis = = = = = = = = 50
4.4 Testing of hypotheses = = = = = = 57
4.5 Discussion of findings = = = = = = 60
vii
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION = = 62
5.1 Summary= = = = = = = = = = 62
5.1.2 Summary of Findings = = = = = = 63
5.2 Conclusion = = = = == = = = = 64
5.3 Recommendations: = = = = = = = 65
Bibliography = = = = = = = = = 66
Appendix = = = = = = = = = 66-68
viii
CHAPTER ONE
INTRODUCTION
1.1 OVERVIEW OF THE STUDY
The construction industry occupies an important position in
the structure of Nigeria’s economy. This assertion becomes
necessary when one considers the role played by the sub sector
to the growth of other sectors as well as the economy in general.
Olaloku (1986) reported that this industry employs about four
percent (4%) of the country’s labour force and contributed about
twelve percent (12%) of the country’s Gross Domestic Product
(GDP).
Despite the noted contributions the industry has maintained
unimpressive track of performance evidenced by numerous failed
and abandoned construction projects scattering every nook and
cranny of the country. The socio-cultural, economic, and political
environment in which the industry operates has directly or
indirectly affected growth.
On of the areas of construction operation, which has
attracted little attention, is the management of construction
materials. The construction project evaluation with focus on the
material management processes and procedures has become
necessary since it will equally subsume other areas of
construction cost management. Modern material’s management
tools and techniques as applied to construction projects, analysis
ix
the elemental cost of projects based on material inputs and
possible cost variations based on price fluctuations but not at the
expense of quality/value maximization. According to Sloan (1990)
of a total utility of 100% associated with a construction project,
the client places the following importance upon the three critical
functional aspects:
i Quality – 45%
ii Cost – 35%
iii Time – 20%
On the other hand Onyeador (1997) posits that the success
or failure of construction projects could be measured in terms of
cost of completion vs budget, time take to complete the project
vs planned duration and the extent to which the completed
project conforms with the design specifications (quality).
However, Onyeador (1992) is of the view that construction
project undertakings are difficult to mange. This according to him
may be due to the complex nature of activities involved: always
having design systems separated from actual construction, and
the multi-disciplinary nature of the team. Also the competitive
tendering often adopted in practice introduces some socioeconomic
and political dimensions to the management system.
Apart from the client/sponsor, other project participants include
the contractors, consultants, (Architects, Quantity surveyors,
Engineers) and other stakeholders (material suppliers,
government regulatory agencies and host community).
x
These project participants agree to implement the project
according to the time, cost and quality specifications, which the
client has directly or indirectly caused to be made in respect of
the design for the project.
Where these initial project specifications otherwise referred
to as success. Criteria or parameters are met, the project is
deemed to have been a success, otherwise a verdict of failure is
returned on the project Kerzner (1995).
However what may be the single most critical factor to the
client is quality PMBOK (2001). In this era of economic
depression and rapid rising material cost, concerns for optimum
utilization of available resources tend to dominate all decisions
relating to construction project undertakings. It is only with
highly skilled project management team that uncertainties in the
planning and execution processes can be kept to a minimum on
order attain significantly the quality objectives of the construction
project within optimal time and cost. Infact Mezue (1992) placed
cost material input at an average of 655 of the total construction
project delivery sum.
Consequently, construction materials, has become one of
the most important elements of cost management in the
construction industry toady. There is therefore particular need for
increased attention in the area of material management to ensure
cost effectiveness in construction project management. Thomas
and Kramer (1987).
xi
This research work therefore, attempts to evaluate the
materials management strategies in the Nigeria construction
industry as a way of improving the state of project management
practices as applied in the construction industry in Nigeria.
1.2 STATEMENT OF PROBLEM
In recent time, the Nigerian society has faced the challenge
of increasing need for construction projects. Despite that
concerted efforts have been made in response to this by the
system; the scenario has been that of more disappointment
(widespread project failure and abandonment). More often than
not these projects are characterized by cost overruns, shoe pace
of project execution and time lags, substandard level of
workmanship and quality. In extreme cases total abandonment
are experienced. Equally, the planning and management of
construction materials usage are often based on the contractors;
experience and intuition than on rational analysis of the works to
be performed based on application of known scientific tolls and
technique. The failure of any construction project through poor
materials management carried two repercussions to the
economy. These are the waste of resource used in its execution
and the denial of the opportunity for other projects that depend
on the former from coming on stream. All these put together
have made most construction project efforts to seem like
promotion of economic waste and social misdeeds.
xii
1.3 OBJECTIVES OF STUDY
The objective of this study are as follows:
1. To assess the nature and magnitude of relationship existing
between the level of materials requirement planning as applied in
the Nigeria construction industry and the extent of success
recorded in project implementation.
2. To analyze the impact of materials procurement systems on
successful materials management in construction projects.
3. To analyze the contributions of poor materials handling
technique on successful materials management in constructions
sites.
4. To establish the contribution of poor materials storage methods
on unsuccessful materials management in construction sites.
5. To evaluate the extent to which material waste has led to
unsuccessful project delivery in the Nigerian construction
industry.
1.4 HYPOTHESES
The following hypotheses were tested in the course of this study
and formed the basis for the conclusions and recommendations
made in the study
H01: There is no significant relationship between material requirement
planning and successful project implementation.
H02: There is no significant relationship between procurement and
effective materials management in construction projects.
xiii
H03: There is no significant relationship between poor material
handling technique and successful materials management in
construction project delivery in Nigeria.
H04: There is no significant relationship between inappropriate
materials storage and successful materials management in
construction projects.
H05: Increased material waste has no significant relationship with
unsuccessful construction project delivery in Nigeria
1.5 SIGNIFICANCE OF STUDY
This work will be of immense importance to all
operators in the construction industry. The performance of the
industry will improve, as efforts will be redirected to effective
application of scientific techniques for
construction materials management.
In addition, it will enable efficient allocation of resources by
encouraging the integration of network scheduling techniques into
the conventional material planning and scheduling processes.
This, therefore, will improve the planning skill of the participants
in the industry. Also it will expand the reserve of materials for
future researchers in the areas of project management,
construction management as well as other allied fields.
xiv
1.6 THE NEED FOR THE STUDY
The would over, economic resources have not only remained
limited but also rather scarce. In the face of this objective, the
Nigerian construction industry needs to be efficient in resource
utilization in its project management processes in order to meet
up the international competitive standard of high quality at
optimum cost. This study has the following as its significance:
i. Creating awareness of the problems affecting material
management in the Nigerian construction industry.
ii. Minimizing the deviation of project value from the initial estimate
through optimal utilization of available resource.
iii Reducing/eliminating failures and/or abandonment of construction
project by avoiding cost escalations, time slippages and
substandard quality. Achievement of optimal total utility will
therefore be enhanced.
1.7 SCOPE OF STUDY
The study is limited to the construction projects (building and civil
engineering works). It concentrates on the contractors,
consultants (Architects, Builders, Quantity Surveyors, Engineers,
Project Managers) and clients operations in the industry in Port
Harcourt. Attention is particularly paid to only materials
management strategies in the construction industry during
project execution phase since construction project management is
of a broader perspective.
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