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UTILISATION OF CONSTRUCTION MANAGEMENT AS A PROCUREMENT METHOD IN NIGERIAN CONSTRUCTION INDUSTRY

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    ABSTRACT

    The aims of this thesis titled ‘UTILISATION OF CONSTRUCTION
    MANAGEMENT AS A PROCUREMENT METHOD IN THE NIGERIAN
    CONSTRUCTION INDUSTRY’ are to ascertain the various roles played by
    construction management in contract administration, to consider the
    history and evolution of construction management in order to
    ascertain the state-of-the art techniques, to analyse construction
    management as an indispensable tool for cost saving in construction
    and to analyse construction management as a vehicle to speedy,
    efficient and on-time project delivery, while

    the objectives are to ascertain the activities/functions that enable the
    smooth running and execution of project, and successful completion,
    to understand how the client’s briefs can be translated into physical
    reality whilst satisfying his design, technical, cost and time
    requirements, to find out the various avenues of minimising the
    amount of outgoings from a company, whilst maximising the amount
    of incomings in order to have significant cost savings on a project and
    to determine the height of departure of the current practice of
    construction management from the primitive method.

    The method employed in gathering information is through site visits
    during which oral interviews and oral questions were held with clients,
    contractors, engineers and other professionals including even the
    workmen which bothers on budgeting techniques, cost and time
    control, cashflow, construction execution, quality assurance, etc.

    Summarily, construction contractors and the owners of construction
    projects should effectively use Earned Value Management system as
    a means of ensuring viable project performance and as well serves as
    an Early Warning System so as to guard against cost and time overrun.

    TABLE OF CONTENTS

    TITLE OF THESIS i
    CERTIFICATION ii
    DEDICATION iii
    ABSTRACT iv
    TABLE OF CONTENTS v

    CHAPTER 1
    1.0 INTRODUCTION/ BACKGROUND OF STUDY 1
    2.0 AIMS AND OBJECTIVES 3 – 4
    3.0 PROBLEM STATEMENT 4
    4.0 RESEARCH QUESTIONS 4 – 5
    4.1 SCOPE AND LIMITATION OF STUDY 5

    CHAPTER 2
    2.0 REVIEW OF RELATED LITERATURE 6 – 94

    CHAPTER 3
    3.0 RESEARCH METHDOLOGY 95

    CHAPTER 4
    4.0 ANALYSES/INTERPRETATION/PRESENTATION 97

    CHAPTER 5
    5.0 CONCLUSION AND RECOMMENDATION 98 – 99

    CHAPTER ONE

    INTRODUCTION

    BACKGROUND OF STUDY
    Construction Management was fully developed in the 1970s out of the
    need to develop an alternative project delivery system that would
    incorporate the positive features of the traditional system which was
    based on long established professional and craft roles (Okolie, 2002).
    In the traditional system, clients employed architects to produce the
    overall design of their buildings, and design its appearance in detail,
    quantity surveyors to ensure that the designs can be afforded within
    the client’s budget, and engineers to design the structural elements
    and the internal engineered services that ensure the building is safe
    and comfortable. These professionals are employed by the client as
    consultants. A planning supervisor was also brought into the team who
    may architect or someone employed as an external consultant. In
    addition, specialist contractors might by employed as part of the
    design team because their expertise is needed for the design of key
    elements or systems of the building.

    The design information is used in selecting a main contractor to
    construct the building. Most of the direct construction work was
    undertaken by specialist contractor employed by the main contractor
    as sub-contractors. The construction work was supervised by the
    consultants to ensure the design was correctly interpreted and the
    building is of the required quality. The diagram below shows the main
    contractual relationships in the traditional system.

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    Fig. 1 (Sourced from: Modern Construction Management, 5th Edition)

    The increasing complexities of modern project in terms of time, cost,
    technology and quantity requirements have made the traditional
    system inadequate and obsolete since construction management
    satisfies the increasing demand for improved construction industry
    performance by clients. In order to strengthen this confidence, the
    construction manager provides such professional services as value
    engineering, value management, project feasibility study, project
    budgeting, bid packaging, parameter estimating, time and cost
    control system, e.t.c. which are aimed at optimising client’s value for
    money.

    1.1 AIMS AND OBJECTIVES OF THE STUDY
    This research project titled UTILISATION OF CONSTRUCTION
    MANAGEMENT AS A PROCUREMENT METHOD IN NIGERIAN
    CONSRUCTION INDUSTRY is aimed at:

    3

    1, Analysing the impact of construction management as a vehicle to
    speedy, efficient and on-time project delivery,

    2, Analysing construction management as an indispensable tool for
    cost saving in construction,

    3, Considering the history and evolution of construction management
    in order to ascertain the state-of-the-art techniques of construction
    management,

    4, Ascertaining the various roles played by construction management
    in contract administration (planning, managing, organizing, execution
    and delivery of contract).

    The objectives of this research project are to:

    1, Understand how the client’s brief can be translated into physical
    reality whilst satisfying his design, technical, cost and time
    requirements,

    2, Find out the various avenues of minimising the amount of outgoings
    from a company, whilst maximizing the amount of incomings in order
    to have significant cost savings on a project,

    3, Determine the height of deviation of the current practice of
    construction management from the primitive method, and
    4

    4, Ascertain the activities/function that enable the smooth running
    and execution of a project, and successful completion.

    1.2 PROBLEM STATEMENT
    The most significant and frequent problems that do face construction
    management during construction of projects are cost and time
    overrun. It is realised these days that as a result of cost and time
    overrun, projects are hardly delivered at the agreed price and
    agreed time frame of completion owing to some obvious reasons. This
    can be attributed to the fact construction managers do not always
    employ Variance Analysis method to guard against cost overrun. In
    order to analyse the variance in construction costs, Earned Value
    Management (EVM) becomes worthwhile. EVM is a project
    management technique that seeks to measure forward progress in an
    objective manner. EVM is trusted as having a unique ability to
    combine measurements of technical performance (i.e.
    accomplishment of planned work, schedule performance (i.e.
    under/over budget) within a single integrated methodology. With the
    resultant analyses of the set performances the EVM provides an Early
    Warning of performance problems. Additionally, EVM promises to
    improve the definition of project scope, prevent scope creep,
    communicate objective progress to stakeholders, and this keep the
    project team focused on achieving progress

    1.3 RESEARCH QUESTIONS
    What does construction management seek to achieve?
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    Has the use of tools (economic, technical and administrative tools)
    been constructive in the achievement of smooth and successful
    project delivery?

    At what specific stage of a project is construction management
    needed (Pre or Post contract)?
    What are the types of planning in construction management and who
    is (are) responsible for planning. Is planning left in the hands of a
    construction manager alone?

    1.4 SCOPE AND LIMITATION OF STUDY
    This research project is limited to Lagos metropolis as this is an
    environment where hitech and modern construction works are being
    carried out in large number coupled with the nature and
    geographical disposition of the environment (terrestial and aquatic)
    which is a combination of both on-shore and off –shore construction
    works. These combinations enable this choice as they are all
    encompassing.

    In addition, this research work covers and is limited to only building
    construction works which include but not limited to residential
    buildings, office complexes, academic complexes, shopping
    centres/malls.

    Lastly architects, engineers, quantity surveyors, project/construction
    managers, consultants, professionals, contractors and clients are
    involved on the effectiveness, efficacy and other wise of construction
    management.

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