TIME AND COST PERFORMANCE OF BUILDING CONSTRUCTION PROJECT IN ETI OSA L.G.A, LAGOS STATE

ABSTRACT

The construction sector is critical to national development, as well as the timely delivery of construction projects and the supply of shelter and dwelling units for the public.The study examined examine the time and cost performance of building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria. The survey research was used in this study to sample the opinion of respondents. This method involved random selection of respondents who were administered with questionnaires. Relevant conceptual, theoretical and empirical literature was reviewed. The target population of the study comprised selected residents from Eti Osa L.G.A, Lagos State. Three hundred (300) respondents constitute the sample size for this study. The descriptive and analytical approach was adopted using Chi-square to test and analyze the hypotheses earlier stated. Findings revealed that there is a significant effect of time and cost performance on building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria. Findings of the study also reveals that there are factors influencing the cost-and-time performance of public building projects in Eti Osa L.G.A, Lagos State, Nigeria. Findings of the study also reveals that there are the factors influencing the cost-and-time performance of public building projects in Eti Osa L.G.A, Lagos State, Nigeria. Finally, findings of the study further reveals that there is significant relationship between time and cost performance and building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria. It was therefore concluded that time and cost performance significantly affect the building construction in Eti Osa L.G.A, Lagos State, Nigeria. It was suggested that projects be given full consideration from inception to completion, that suitable and effective consultancy services be provided to clients, and that every contractor for a construction project strictly adhere to the program of works.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

          The importance of the construction sector cannot be overstated; it is recognized as one of the economic control organs. Annually, multimillion-dollar capital projects are completed, serving as a primary channel via which billions of dollars are disseminated into the economy (Amusan et al., 2017). Construction is a global phenomena that touches every aspect of human endeavor. The worldwide inclusivity stems from the fact that construction operations take place on a daily basis across the continent(Amusan et al., 2017). However, in the United Nations Development Programme's (UNDP) millennium development goal (MCDG), housing supply for all by 2020 takes center stage on the global agenda.

          A lot of capital expenditure goes into housing provision, with little return. The global housing scarcity, despite massive investment in housing, can speak to this. There was a worldwide outbreak of white elephant enterprises. However, it is not uncommon for a project to become a white elephant and eventually be abandoned, maybe due to the interaction of micro and macroeconomic elements during the development process (Amusan et al., 2017). The project will inevitably be abandoned due to this and other considerations. Similar to this, a project's outcome may depend on a number of factors, one of which is how time and cost variables interact. Time and money are two connected factors that frequently influence a project's success.Additionally, it is a growing trend in developing economies to predict that the twin variables of cost and time will have the greatest impact on their economy. Malaysia, Singapore, Ghana, Saudi Arabia, Cameroon, India, South Africa, and of course Nigeria are just a few of these developing nations (Tarun& Lokeshwaran, 2017).

          Furthermore, capital-intensive projects are dispersed throughout Nigeria, notably Lagos State, which has been designated as a developing economy. Many of these projects have been abandoned, perhaps as a result of the current economic downturn the nation is going through or for other reasons.Similar project abandonment occurs in Ghana, Cameroun, Togo, Singapore, and Malaysia, with ensuing cost and time overruns. However, there is a significant difference between construction time and expense as compared to comparable projects in developing economies when comparing the rate of overrun on projects from established economies like the United States of America, the United Kingdom, Germany, and Japan among others. Because of this, the study made an effort to identify the disparity-causing elements, areas of resemblance, and areas of divergence, leveraging the success-promoting factors to limit the impact of the failure-promoting factors (Ghaleb, 2013).

          Final cost, also known as real construction cost or as-built cost, is the sum of money actually owed to the contractor, confirmed by the primary consultant, and accepted by the client as the price of the completed job. The ultimate cost of construction is established at project completion stage in all contract systems, with the exception of fixed or firm price contracts for which the tender sum is non-negotiable (Hammad et al., 2008). Clients, contractors, and other parties involved in construction projects are aware that the total cost can differ from the amount originally agreed upon (Hammad et al., 2008; Hendrickson, 2008; Ugulu and Ikwuogu, 2011). The variance between anticipated and actual construction timeframes is also accurate. Construction contractors use phrases like Budgeted Cost of Work Scheduled (BCWS) and Actual Cost of Work Performed (ACWP) in their operations monitoring books to demonstrate their understanding of the significance of completing projects within budgets of cost and time. BCWS is the total cost of all work that is budgeted to be completed within a specified period of time.It also takes into account the price of already finished work and refers to a certain performance window or time period. The total Actual Cost of Work Performed (ACWP) for all completed workdays is reported by the contractor. The budgeted cost of work scheduled (BCWS) and the actual cost of work performed (ACWP) are separated by the term "cost variance (PMBOK, 2017). It also takes into account the price of already finished work and refers to a certain performance window or time period. The total Actual Cost of Work Performed (ACWP) for all completed workdays is reported by the contractor. The budgeted cost of work scheduled (BCWS) and the actual cost of work performed (ACWP) are separated by the term "cost variance."The amount of money specified in the contract agreement between the client and contractor during tender talks is known variously as the initial contract sum, estimated cost, tender sum, or final bid of a building project. This refers to the amount of money in the bid (Cantarelli et al., 2010; Ugulu & Ikwuogu, 2011). Depending on how effectively the contract was managed, the difference between the contract total and final account offers a measure of construction cost performance.

          Value creation and profit-making are typically two of the key goals when starting a firm. The laudable goal of creating value in the form of value for money is typically what makes project financial and time control necessary. The loopholes that let cash leakage on a project could be avoided or blocked if sufficient control is exerted over it.As a result, Frimpong, Oluwoye, and Crawford (2003) defined cost and time control as the art of maintaining project costs and timelines within predetermined parameters. One of the issues facing the construction industry in developing nations is cost and time overruns. Since the progress of the project is typically professionals' and construction parties' top priority during construction, clients are constantly concerned with efficient construction process monitoring.However, cost and time overruns on projects typically occur from the interaction of numerous factors and vary from location to location. Depending on the nature of the project, some of the components have varying effects. It is always vital to pinpoint the origin of the factor's manifestation in order to assess its severity because some variables have more severe effects than others while others may not be affected by it.For instance, taking into account the severity of their effects, Frimpong et al. (2003) evaluated twenty-six (26) elements that contribute to cost and time overrun in Ghana. According to the study, out of the 26 criteria put out, the primary factors identified include, among others, difficulty with monthly payments from agencies, inadequate contract management, material procurement, and an increase in material prices. According to Azhar, Farouqui, and Ahmad (2008), several variables such as rising material and labor costs, a lack of construction materials, construction delays, and inadequate cost forecasts have a significant negative impact on some other construction projects.It is based on this background that this study addressed the issue of time and cost performance of building contruction projects in Eti Osa L.G.A, Lagos State.

1.2 Statement of the Problem

          A universal phenomena is the variation between the initial contract sum, the total cost, and the anticipated and actual construction period. In addition to project completion delays, the repercussions can include project failure and abandonment when adequate additional funds were neither set aside nor accessible to offset the overruns. In general, investigations into the use of machine learning systems, like artificial neural networks, for sophisticated cost and time impact projections and performance assessments are scarce in the field of construction management (Flyvbjerg et al., 2003a). Only 7% of research studies using artificial neural networks to analyze the cost and timeliness of construction projects are based in African regions. The analysis of data on initial contract amounts, estimated construction duration, final cost, actual cost, and influence of cost and time driving factors on public building projects in the study area may lead to the development of such prediction and performance measurement tools for construction project cost and time.The user initially extracts the values associated with the key driving elements as inputs before using the suggested models to evaluate cost and time impacts (overruns) for a project that is currently under construction. The models get the values as input, and the network output is then recorded. For management decisions, the model automatically forecasts the variation in either the project's starting cost or schedule.There is a paucity of literature regarding big cities like Lagos State, which is the economic engine producers in Nigeria, despite research looking at how time and cost performance might affect building constructions in Nigeria and other African countries. It is therefore based on this background that the present study seek to  examine the  time and cost performance of building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria.

1.3 Objectives of the Study

          The  main objective of this study is to examine the time and cost performance of building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria. Other specific objectives of the study include;

1. To examine the effect of time and cost performance oo building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria

2. To ascertain  the factors influencing the cost-and-time performance of public building projects inEti Osa L.G.A, Lagos State, Nigeria.

3. To determine the environmental factors perceived to disrupt cost-and-time performance of selected public building projects in the study area

4. To examine if there is a relationship between time and cost performance and building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria.

1.4 Research Questions

          The following questions questions guided the present study;

1. What are the effect of time and cost performance oo building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria?

2. What are the factors influencing the cost-and-time performance of public building projects inEti Osa L.G.A, Lagos State, Nigeria?

3. What are the environmental factors perceived to disruptcost-and-time performance of selected public building projects in the study area?

4. Is there a relationship between time and cost performance and building construction projects in Eti Osa L.G.A, Lagos State, Nigeria?

1.5 Research Assumptions

          The following were hypothesized in this study;

H01: There is no significant effect oftime and cost performance oo building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria

H02: There are no factors influencing the cost-and-time performance of public building projects inEti Osa L.G.A, Lagos State, Nigeria

H03: There are no  factors influencing the cost-and-time performance of public building projects inEti Osa L.G.A, Lagos State, Nigeria

H04: There is no significnat relationship between time and cost performance and building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria

1.6 Significance of the Study

          There is a paucity of literature regarding big cities like Lagos State, which is the economic engine producers in Nigeria, despite research looking at how time and cost performance might affect building constructions in Nigeria and other African countries.

      First off, the research findings might supplement already conducted studies that aim to apply the advantages of artificial neural networks (ANNs) over other statistical and programmed analytical tools to the Nigerian construction industry in general and the northeastern region in particular.

          As a result of the update on the significant cost-and-time drivers for construction contracts in the study area, construction managers may have better knowledge of these drivers going forward. This is because awareness and consideration of these drivers may help to offset the current level of subpar project management performance and lead to future successful projects.

Thirdly, the study's findings may be used by Nigerian architects, construction managers, and cost accountants for construction projects to further current understanding of the variations in initial and end cost and time targets brought on by the degree of construction project complexity.

1.7  Scope and Delimitation of Study

          This study is limited to the time and cost performance of building contruction projects in Eti Osa L.G.A, Lagos State, Nigeria. Respondents for this study are residents in Eti Osa L.G.A, Lagos State who have caaried out a building project before.