Project – Causes of abandoned construction projects

CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF STUDY

The demand for provision of housing is as old as the history of man. Due to the harsh weather condition, wild animals, need for security and privacy, it became necessary for man to provide shelter for himself and members of his family. Though, the type of houses built in those historical times, served its primary purpose of shelter but lacked the modern amenities, as a result of underdevelopment in the society (i.e. society with no industry). Construction processes were limited to the locally available materials, labour and technology. However, with civilization and technological advancement, man was exposed to a new life (i.e. access to modern amenities) (Akuta, 2009).

Therefore, in recent times, there are various types of houses as a result of the numerous types of designs by the architects and the houses not only serve the primary purpose of shelter alone, but also have the modern amenities. There are different types of materials, plants and equipment produced to suit the modern constructions. There are also professionals like Architects, Builders, Quantity Surveyors, Engineers, among others, trained in their respective field for proper execution of projects. Also, we have the skilled and unskilled labours, who contribute grossly towards the execution of a project. All these are as a result of civilization and technological advancement which have impacted the construction industry. Hence, the construction industry is regarded as one of the largest industries in the world, as it contains the highest number of people, ranging from the clients, professionals, skilled labours, unskilled labours and suppliers of different building materials etc.

Despite all these, abandoned building projects still litters our society, causing problems like security threats, promotion of illegal activities, unemployment, waste of human resources, poor landscaping, etc. Therefore, I will start by defining the abandonment of building project, as an act of giving up or stopping a building project with no intention of returning to it. Nobody initiates a building project for abandonment, because an uncompleted building project is always a source of sorrow to its owner, an unfulfilled hope and aspiration – a failure to achieve a purpose (Olateju, 1997).

Unfortunately in Nigeria, when projects are abandoned there are no conscious efforts to ensure completion, instead, new projects are embarked upon, putting money, materials, time and effort to waste, and also, causing problem to the nation as whole. In Nigeria, the situation of abandoned projects is further compounded by the continuous award of new contracts which eventually suffers the same fate (Frisch, 1996).

We must really lay emphasis on the issue of abandonment of building projects, because, it creates a lot of problems for everyone, both within and outside the construction industry and even on the economy as a whole. Likewise, the resources required to execute the projects, which include: labour, equipment, time, material and money, are wasted and the accommodation problem remains unsolved.

When a progress of a certain work faces too many problems and seems to be impossible to continue further on resulting it to stop completely, it is therefore defined as abandoned project. According to Olapade (2012), when a project has been started at an earlier date, but for some reasons has been stopped, it is described to be an abandoned project. Such abandonment are just not limited to buildings alone, but there are also roads, industrial structures, bridges, factories, dams, electricity, communication projects and so on, that gets abandoned as well. Akindoyeni (1989), stated that if projects are to be executed completely, planning is the most important agenda to be carried out, which Ogunsemi (1991) further added that the successful completion of a project depends on adequate planning where financial planning is also included. Olusegun et al., (2011) discussed that the mission in developing infrastructural projects are mainly to bestow new and beneficial product and services to the community and also to stimulate the aesthetic part of the built environment. This intention is somehow compromised and not accomplished due to the continual issue of project abandonment.

It was reported by Osemenan (1987), that the Nigerian construction industry has become the world’s place of dumping junks of abandoned projects, where these projects are estimated to be worth of billions. He further stated that Nigeria is a country which has many potential in the construction industry but to his surprise the country is experiencing such an immensity of project abandonment. According to another report by Kotangora (1993), the issue of abandoned project was not given an adequate attention for a long time which has resulted a negative effect not only towards the construction industry but to the national economy as a whole. For instance, there are about 4000 uncompleted or abandoned projects belonging to the Federal Government of Nigeria with an estimated cost of above 300   will take 30 years to complete. The table below shows the number of abandoned projects in Nigeria.

Therefore, this dissertation project attempts to examine the causes, effects and possible solutions to abandonment of building projects in the State of Katsina.

1.2       STATEMENT OF RESEARCH PROBLEM

In Nigeria today, the landscape is littered with abandoned building projects. Therefore, the research work focuses critically into the causes and effects of abandoned building projects which have littered the Nigerian landscape. Every nation aspiring to attain development must utilize its resources effectively; develop its industrial base, energy sectors among other things (United Nation, 2006). Unfortunately, Nigeria has suffered a set-back in following these principles to development.

Every year, government announces a huge amount of money to be spent on capital projects, only for all to be put to waste as a result of corruption (e.g. embezzlement), leaving the projects abandoned. Also, both the public and the private sectors experience the abandonment of building projects which makes it pronounced, in the harsh economic climate, in developing countries like Nigeria. As a result of the involvement of the private sector, this has threatened job opportunities, rendering our economic development effort to suffer continuous set-back. Solving this problem, might really be of help and having a gross contribution to the economic development.

1.3       OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1. To examine the causes of abandoned building projects
2. To examine the effect of the abandoned building project on clients, the professional, the contractor in the construction industry.
3. To propose possible solutions to the problems.

1.4       SCOPE AND LIMITATION OF STUDY

The State of Katsina is considered for the study. Hence, this dissertation will be limited to Katsina metropolis.

1.5       DEFINITION OF KEYWORDS

1. ABANDONMENT: Is the act of giving up on an idea or stopping an activity with no intention of returning to it (Oxford, 2005).
2. BUILDING: Is just like a shelter, which is an enclosure of space for the use and protection of mankind.
3. PROJECT: Is a unique Endeavour to produce a set of deliverables within a clearly specified time, cost and quality constraints (PMG, 2003). A project is a series of tasks, which has a start, middle and an end. Therefore, the abandonment of building project can be defined as an act of giving up on or stopping a building project with no intention of returning to it.

Project – Causes of abandoned construction projects