Project – The assessment of the effect of the use of software for building project in the construction industry

Chapter one

Introduction

Background of the study            

Information and communication technology software, also known as information technology (it) has radically transformed the way we live, learn, work and play (capron 2000). Many companies in the construction industry do not generally appear to have appreciated the positive changes and advantages that the new technology was providing to companies in other sectors of the economy.  A major construction process demands heavy exchange of data and information between project participants on a daily basis (masqsood et al., 2004). This makes the construction industry one of the most information-intensive industries, and requires   close coordination among a large number of specialized but interdependent organizations and individuals to achieve the cost, time, quality and sustainability goals of construction project (ugwu et al., 2005). Software has been shown to be a vital tool in assisting the construction industry to cope with the increasing complexity of its product and services as well as the increasing demands of clients and regulators (betts,1999), and to enhance construction productivity (liston et al., 2000). To asses the impact of software on construction in this regard, surveys on the use of software in the construction industries of various countries in different parts of the world have been carried out in recent times.

They include surveys conducted in canada in 1999 (rivard, 2000), south africa in 2000 (arif & karam, 2001), sweden in 2000, denmark in 2001(samuelson, 2002), malaysia in 2001 (lim et al, 2002). Turkey in 2001 (sarshar & isikdag, 2004) and singapore in 2003, (goh, 2005).

While most of these surveys have been carried out in highly developed european countries and asian economics, only the south african survey by arif & karam (2001) represent an emerging economy in africa. Oladapo (2007) has also carried out a survey into the use of software in the nigeria construction industry. However, his survey apart from it being limited to south west nigeria, focused more on the level of computer literacy of construction industry professionals and mode of acquisition. Oyediran (2005) studied the awareness and adoption of information and communication technology software by architectural, engineering and construction industry educators in nigeria. Adejimi and iyagba (2007) compared e-construction technology for integrating building processes between nigeria, canada and the nordic countries.

Their study however revealed that the digital divide between nigeria and the developed world is closing up as more and more computer facilities are becoming accessible. However, they also indicated that modern and advanced information technology facilities such as internet, intra/extranet, virtual reality tools, tele/video conferencing, construction robots etc are grossly inadequate.

The intent of this research work is to ascertain the level of use of software in the nigeria construction industry and also to determine the prospects with respect to the benefits, cost, risks and research and development needs.

1.2       significance of the study

The construction sector contributes significantly to the gdp of a nation. In developed countries such as japan and korea, construction contributes up to 12 to 14 percent of gdp (gann, 2016). In the developing countries (according to dharwadker, 1979) investments in construction projects could be as high as 50 to 60 percent of national budgets. In nigeria, the construction industry was the dominant contributor to the nation‟s gdp in the 1980s, accounting for about 70 percent of the gdp (planning committee on the national construction policy, 2010). This made the industry very strategic to nigeria‟s development efforts. Unfortunately, however, the industry has been bedeviled by a combination of low demand and consistent low productivity and poor performance over the years (manshued et al 2012; olomolaiye, 2016; aniekwu, 2009; okuwoga, 2005; adeyemi et al, 2005). This has reduced its contribution to the national economy to a mere 1 percent of the gdp in 2002 (afdb/oecd, 2004).

The industry is made up of an organized formal sector and an unorganized informal sector. The formal sector comprises small, medium and large scale according to their level of capitalization and annual turnover. The few large firms (mostly foreign), which constitute just about 5 percent of the total number of contractors in the formal sector, control about 95% of the construction market, giving the small firms just about 5 percent share of the market. The results of this study will impact the nigerian construction industry in the following ways;

• Delineate the software application and the level of adoption.
• Highlight the benefits of software application in construction at the strategic, tactical and operational levels.
• Serve as a guide to construction organizations in the area of the cost of software adoption (both direct and indirect cost); and the risks involved.
  • Research questions                     

1. What are the impact of the software application in the construction industry in Nigeria?

• What are the challenges that are associated with the adoption of the software application in the construction industry,

1.4      Aim and  objectives

Oladapo (2001) had reported that the construction industry in nigeria has during the past few years increased its use of software. However, very little is known about the impacts of the technology on the industry and the prospects for its widespread penetration of the industry. This is because very few reports exist of research in software in developing countries, including nigeria (pamulu & bhuta, 2004). Against this background, the objectives of the study are to:

1. To assess the impact of the softwares application in the construction industry in Nigeria.
2. To determine the challenges associated with the adoption of the of the software application in the construction industry,

It also intends to bring to the fore the current direction of development of software and to determine the prospects for research and development needs in the nigerian construction industry.

1.5      Scope of the study

The research covers a review of software adoptions and applications by some construction companies in nigeria. The companies under study are companies based in ibadan, oyo state (buildon group merchandise, fajot construction concept, lincoln construction services, feiseys & company nigeria ltd, lafes building and properties) all are private companies operating in nigeria. Appropriate quantitative techniques were employed in analyzing the data gathered.

1.6     Statement of problem

Numerous problems are being encountered by the construction companies in nigeria. Most of these problems are software related. The problems range from low level of software adoption to incompetence in the use of the software as follows;

• Inefficiency
• Low profitability
• Low quality production
• Poor management of business process
• Poor supply chain management
• Inability to satisfy client needs
• Increased cost of business process
• Lack of standardization.

Project – The assessment of the effect of the use of software for building project in the construction industry