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Challenges in Nigeria's Construction Industry

This document is a research project by Abachi Joshua Terese investigating the problems faced by the construction industry in Nigeria, particularly in Makurdi, Benue State. It highlights issues such as lack of funding, poor government policies, and corruption, which contribute to project failures and building collapses. The study aims to propose solutions, including the establishment of a credit bank for construction firms and improved regulations to enhance the industry's performance.

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0% found this document useful (0 votes)
17 views27 pages

Challenges in Nigeria's Construction Industry

This document is a research project by Abachi Joshua Terese investigating the problems faced by the construction industry in Nigeria, particularly in Makurdi, Benue State. It highlights issues such as lack of funding, poor government policies, and corruption, which contribute to project failures and building collapses. The study aims to propose solutions, including the establishment of a credit bank for construction firms and improved regulations to enhance the industry's performance.

Uploaded by

blaquiix
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

I ACKNOWLEDGEMEN Tii For the final completion of this research project, am highly

indebted to my project supervisor [Link] whose relentless efforts and constructive criticism

enabled me to Carry out the work to this level. In gently indebted to my lecturers, Friends ,course

mates, uncle’s, aunties, brothers and sisters and those who will in school for engagement and

support in all forms allowed for the production of this project work. My gently indebted to my

beloved parents,Mr & Mrs. Abachi Isaac for their great and wonderful cooperation and assistants

for my academic endeavors,and indebted to my beloved wife Mrs Mimidoo and beloved

kids,Master Vi1ctor, Master Aondona and Master Aondover for the support towards me. Greatly

appreciation to my Elder sister [Link] Kwaghdoo D.& Abachi Erdoo E. Aunty Abachi Rita

Yakuma ,Doom ioryue, regards to beloved brothers, Mr. Abachi Aondofa Caleb,Engr Abachi

Alexander K, Iorlam James Sughnen, Abachi Tavershima Collins(Orta),Agindi Kenneth,Abena

Johnson,Atsor Sunday(A-j Spark) my beloved uncle’s,[Link] Philip T, Abachi

Terkimbir,Abachi Joseph,[Link]&Mrs 1Ukusu Theophilus T. Mentor Mr. Ukusu Donatus

Iorza,Kwaghkule Tarhemba and Mr &Mrs Unum Terhile N. Never forgetting my Mentor Mr &

Mrs Amos Teryima Aguji (Registrar Federal polytechnic Wannune,Benue State) [Link]

Emmanuel Adejoh(Director of works ,NACEST) Capt Gani Manmar (NASME Barracks) and

Mr & Mrs Omale Austin. Never forgetting my best friend [Link] Saaondo, [Link]

Sonter( My Oga @ networking system),Master Iortim Tarnande,(Steady flex)for their wonderful

support towards me,and indebted gently gratitude to my beloved Treasure Miss Ugbe Monica

and her great family for the wonderful and great support for the success of my academic

endeavors. Finally, I give all the glory to God Almighty for making it possible for me to

undertake this piece of project work successfully, may the lord God rewards all of you in

[Link] This is to certify that this project was carried out by ABACHI
JOSHUA TERESE (NACEST/BLD/HND22/554) of the department of building technology has

been prepared in accordance with the regulation governing the preparation and presentation of

project in NACEST. ……………………………. ………………………….. Bldr Kalu. Date

(Project supervisor) …………………………. Bldr Kalu. Date (HOD Building department

…………………………………. ……………………………. External Supervisor Date

DEDICATION To God Almighty, the foundation of all knowledge and wisdom for his infinite

love. Mercy and protection. To my beloved parents Mr/Mrs Abachi Isaac. To the less privilege in

the society DECLARATION This project work is authentic, it’s a project of my own effort under

the supervision of Bldr Kalu of the department of building technology and it has never been

submitted for any type of award. All literature and contribution cited are fully acknowledge

……………........................ …………………………. ABACHI JOSHUA TERESE. DATE

(STUDENT)ABSTRACT This research work is on the Investigation into problem of

construction industry in Nigeria and the way forward. Because I. The recent time, it’s has been

observed that the construction industry has been having a lot of problems in execution of their

projection. Therefore in order to carryout research study effectively, the researcher has to

investigate some of the collapse of building, lack of good Government policies and regulation in

the construction industry lack of Qualified Technical Expert non-availability of fund or Finance

etc. In literature Review the research went down the further to analyze that problem of

construction industry in human readable form. Finally, in the process of this study, it’s

discovered that some of the problem in construction industry today was mainly caused by lack of

fund or Finance. In order to finish the project properly, it was discovered that corruption in the

construction industry also contributed to the problem of construction industry. Based on the

finding the researcher recommended that The Government should create or establish a credit
bank that will be giving Loanto some of the registered contribution firms in the country. They

should equally make a policy or regulations that will be guiding the activities of the construction

industries or [Link] INTO PROBLEMS OF BUILDING CONSTRUCTION

INDUSTRY IN NIGERIA AND THE WAY FORWARD ( STUDY OF MAKURDI BENUE

STATE) BY ABACHI JOSHUA TERESE (NACEST/BLD/HND22/554) A RESEARCH

WORK SUBMITTED TO THE DEPARTMENT OF BUILDING TECHNOLOGY, NIGERIAN

ARMY COLLEGE OF ENVIRONMENTAL SCIENCE AND TECHNOLOGY (NACEST)

NIGERIA ARMY SCHOOL OF MILITARY ENGINEERING ( NASME) MAKURDI BENUE

STATE. SEPTEMBER 202

CHAPTER

ONE INTRODUCTION

1.1Background to the study

Background to the Study For any construction work to be carried out, it require proper

investigation of the important thing that are involved, provision of adequate fund, availability of

the construction resources i.e. provision of material, plant, labour that are putting together to

make a production. It seen that a man cannot escape from this phenomenon for changes mail

because of difficulties of predicting the future accurately. In a good business arrangement such

as construction, contract, changes with predictable scope are often easily taken care off. Nigerian

construction industries is presently based by a lot of demining problem arising from poor

material quality, lack of right material favoritism/nepotism in the award of government contracts,

corruption in high places, poor communication in the area of specialization etc in other words

health because, the government treasures cannot sustain vigorous constructional activities due to
poor revenue. It’s therefore a necessity to find a solution to the survival of Nigeria infrastructure

and re-shaping of construction industries. As the way out of this solution, the government has to

promulgate natural construction policy as one of the ways to redress and encourage the

development of indigenous capacity indigenous participation and ultimately the indigenous

control of great facts of the construction industries in Nigeria. ANIEKWU,(1988) the Nigerian

construction industries is beset with many problem, such as uncompleted project and poor

quality works also the level of productivity is low, especially in project handled by indigenous

contractors, investigation into the causes of identified two set of variable termed structural and

systematic, as being responsible and practices within a given environment were found to be

controllable, if special provision can be made within the condition of the contract the proper

therefore examine these structural variable and relates them to provision in the condition of

contract which undermine the performance of local contractors. It’s also suggest way of

improving the provisions to make more effective.2 Adams, (1997) foreign construction firms

dominate the major project in most developing countries as a result of deficiencies in indigenous

construction capacity, A excess of measures have been formulated and Implemented to promote

development to domestic construction in this countries. But most attempts have achieved whole

successes. This paper, arising from a large study of management training needs to contractors in

Nigeria, describes finding on constraints on indigenous contractors, performance in the Nigerian

industry, Contractor development programs perceives as relevant and appropriate to improve

their performances in the industry are also reported the view of indigenous contractors and

professionals were compared these was a strong agreement between both groups on the major

constraints in the industry and on the measure received as most important constraints identified,

obtaining in term payment uncertainties in supplies and prices of materials, inadequate access to
capital, plant and equipment, contractor development is inevitably an integral part of

construction nature of constraints and development needs emphasized by both groups. The focus

therefore should be on establishing a comprehensive program for the development of trained

construction industry. More attention should be place on contractor training to promote

management development of trained construction professional, now emerging as the new corp of

construction entrepreneurs. Windapo, (1999) succinctly put it that Nigerian government lacked

information on the nature and characteristics of the construction industry, which is necessary to

support and facilitate the formulation and successful implementation of policies for the industry

in Nigeria with that of developing countries like United Kingdom. 1.2 Statement of Problems

The problem of this study is: Improper location or site: this is the major problem that is affecting

most construction industries in Nigeria, for any construction work to work to take place they

have to be proper location for easy access to the site. For the smooth running of the project form

the inception to complete of the work that have to be Carried out on the site.3 Mismanagement of

fund by the contractor : this lead to a great problem that some of the construction industries are

facing in Nigeria due to improper arrangements of work on site, for example when a work that is

required of two(2) labour and one(1) Mason have been given to three (3) mason to carry out the

job, it lead to mismanagement of fund in construction industries some times it lead to abandoned

project in some of the construction industry. Lack of ineffective communication on site: in any

construction industry they have to be an effective communication that will improve the smooth

running of the work on site. Effective communication is one of the factors that help some

construction industry lack to know is this when you’re not friendly with your works and staff it

may effect the industry sometime lead to disorganization of the firm or industry. 1.3 Aim and

Objectives The primary aim of this research is to investigate into problems of building
construction industry in Nigeria and way forward, a study of Makurdi, 1. To examine the social

economic challenges faced by the industry as a result of problems in the Industries. 2. To suggest

possible ways of solving the problem computing the industry. 1.4 Research questions In the case

of carrying out this research to enable the researcher to collect some information to enable the

construction work to move. 1. What’s the possible investigation t be carried out in construction

industry? 2. What’s the major problem in construction industry in Nigeria? 3. What are the

possible factors that are necessary to move the industry forward. 1.5 Significant of the study An

investigation of the Study would enable Clients, Contractors and Consultant give an economic

approach to construction industries such that they would be able to Identify the Problems in the

construction industries. The study will also serves as reference material for other 4 students and

researches who will want to carry out similar studies. Also, the study will enlightened or throw

more light on the Investigation into Problems of Building Construction Industry and show how

the problems will be solved. 1.6 Scope and Delimitation of study This scope of this limited to the

study of the problem of the construction industry in Nigeria remedies and suggestions may be

given. I limited by myself in Makurdi in carrying out this research, due to some of the basic

problems which am encountered by the research, which t some extend influence to depth of

research. Some of this problem is: >> Insufficient time to reach all the construction firms within

Makurdi, Benue State for some information. >> Insufficient fund to aid travelling to all the

construction firms owing to increase transport fare. 1.7 Research Hypothesis. This research work

is to find out problems of building industry in Nigeria and the way forward. Specifically, the

research work has the following: 1. To identify the causes of the problems of building

construction industry in Nigeria 2. To investigate how the problems occurred on the construction

industry. 3. To find out the remedy to the problem and the way forward. 1.8 Definition of Terms.
Investigation as, an official examination of the fact about a solution Problems : Problem as things

that is difficult to deal with or to understand. Construction: Construction as the process or

method of building or making especially road, building bridges etc.5 CHAPTER TWO Literature

Review Many construction jobs have been discharging by completing performance while most

have been discharge by breach owning the lack of technical know-how industrialization hence

been by most government as a means on increasing national output minimizing unevenness as a

development, generally fund for government and maintain their dependence in the developed

countries and equally maintain their fluctuation of foreign exchange earnings. Lack of

entrepreneurship, poor management under developed technology inadequate provision of plant

and equipment shortage of technical manpower foreign competition domination, unfounctional

of government policies and shortage of money are major problems encounter by the industry

experts in the country despite that many authors agreed that shortage of fund a is a critical

limitation factors in industrial growth scats, (1964) believes that capital shortage is the effective

or operation impediment to indigenous private investment is mistake, and illusion created by

large false demand for capital he proceed maintains that what really exist is not the immediate

shortage of money at all but a shortage of liable project 2.2 Problem Encountered In the

Construction Industry 2.2.1 Excess of Quacks in Construction Industry Complain against

indigenous contractors despite the laudable objectives of the national construction policy, a lot of

complain has been lead to lack of patronage, by this follow Nigerians. These accusations among

other are incompetence in capability, lack of designed responsibility to complete favorably with

their expatiate counterpart. 2.2.2 Patronage of Unregistered Contractors (Quacks) While this

accusation of non-performance of indigenous contractors may be true it’s important to appreciate

and differentiate between a contractor 6 may be business man and a federal government of
Nigeria established the builder (Registration) decree No. 45 of 1989. As a result, anybody who is

not a registered builder and who practices, it holds himself out to practice, or takes or uses name,

title, addition or description implying that he’s authorized by law to practice as a registered

builder without reasonable excuses commits on offence punishable under the decree. In addition,

where such illegal practice has been to any neglected on the part of the body corporate, he as

well as the corporate body shall be liable and subject to some punishable measured that will be

started. Alternatively, he may be liable on conviction in any court of jurisdiction. Unfortunately,

the Federal State and local government still patronize these quacks builder or emergency

contractors who have nothing at stake in performing badly during the execution of their projects.

Such action by government’s neglect the fundamental objectives of the national construction

policy. If the indigenous contractor employ registered builder they will perform, favorable like

their foreign counterparts. If they however, fail to live up to expectation, there are series of

statutory measures that could be taken against them. 2.2.3 Incessant Collapse of Building In

Nigeria. Building is a permeant fixed structure forming an enclosed area and providing

protection from external force or attack, example are houses, schools, hospitals or factories.

Collapse of building is usually disastrous occurrences, frowned at and viewed by the society with

great concern. When building collapse like is lost, effort wasted and investment go down the

drain this paper examines the causes of collapsed of building in Nigeria and posits that

government should enforce strict adherence to standard of building material production usage

and strongly disallow the use of unqualified builders in the building industry there by

challenging the professional builder at their responsibilities. >> During the deliberation experts

from various professions exhaustively investigated the various factor of this phenomenon and

observed thus, 7 control mechanism built into various planning authorities in the past are no
more. >> There’s widespread indiscipline and lack of national commitment on the part of various

agencies of government that are charged with the responsibility of measuring of ensuring

minimum standard of qualification of the various building materials and component imported

into or manufactured in the county. >> Nigerian generally have not imbibed the culture of

seeking expert advice on sensitive and dedicate matter like production of building requiring the

service and expertise of suitably qualified professional and practices. >> In all building that

collapse so far in this country, no professional builder have been involved in the planning and

management of the construction work. Thus, the non- involvement of professional builder has

been a major factor resulting in the failure of building in Nigeria 2.2.4 Variation in Construction

Contract Variation in Construction Contract can mean changes to the terms of the contract of it

can mean changes to the scope of character of work. In this article Lim Chilen Ren loot at

variation in construction contract in the latter sense variation to the scope of construction

workers are the necessary because no project is impeccable and change are required to meet

unforeseen circumstance of change requirements. Thus variation can be in the form in addition

omission or substitutions. >> Function of Variation Clauses: are common features in

construction contract s, it’s useful to note at the outset that the proprietor is not entitled as of

right to direct variation ( Ashwell Nesbit Allan & Hudson’s building contract ( 4th ed) Vol2 at

page 462) Hence the need for a variation clause. Secondly, they ensure that Contractor can

recover payment for variation properly directed ( Knight Gilbert Partner V knight. (1968) Allier

234). 1. Scope (Was it variation or was the contractor bound to do it anyway) 2. Non compliance

with procedural requirements are. 3. Valuing the variation.8 Whether the variation work is within

the scope of contract will depend, firstly, on the term of the contract, which sometimes beg the

question what is the contract? In many cases the documents forming the contract are defined, am
example is clause of pc-1 (PC-1, 1988 project contract by property council of Australia) which

providers. Contract: the contractual relationship between the parties is constituted by: •> The

formal agreement to which these conditions of contract one attached •> The condition of contract

•> The work description •> The other document(if any) referred to in contact particulars, even

without such explicit provision, it’s probably to say that the court will not confine itself to the

written agreement alone in the determining the slope of the contract. Specification, drawing

correspondent, etc all form part and parcel of the contract having determined the contract

documents, there is the further issues of inconsistencies in or between parts of the contract

different contract deal with the issue differently. The several document forming the contract are

to be taken as mutually explanatory of one another but in the case ambiguities or discrepancies

the same shall be explained and adjusted by all Engineer who shall there upon issue to all

contract instruction there on and in such evident unless otherwise provided in the contract, the

priority of the document forming the contract shall be as follows: •> The contract agreement (if

completed) •> The later of acceptance •> The lender part2 of these conditions •> Apart 1 of these

conditions •> Any other document forming part of the contract.9 The Jcc-D 1994 contract

(section 2 Jcc-1994 Building work contract without quantities issue by the joint contract

committee Australia) provide for a similar precedence of contract documents but goes step

further by requiring the contractor or architect if they discover any discrepancy to inform the

other architect will then give to the Contractor an instruction explaining, determining or

correcting the discrepancy. 2.2.5 lack of concentration in Area of Specialization Lack of division

of labour /Professional Negligence in the area construction industries (Building construction)to

be precise a prospective builder owner or client. Usually invites an architect to take a brief on the

type of building needed, therefore, the architect produces a sketch design for the client to prove
and also for the quantity surveyor. The second step leads to the production of detailed drawing

by the architect and other consultant’s condition by the quantities and contract condition by the

quantity surveyor. The third stage is the tendering process to select a suitable builder and the

placing of the award. The fourth step that’s the post contract of the stage commence after the

award of the stage to successful Contractor is a engrossed which the responsibilities of putting

into real Life, all the designers which hitherto has been paper work. In construction industry

building construction has the worst to the impact of this “Jet-age” every suddenly, and

everybody is in hurry everybody want to be rich suddenly, and everybody wants to be contractor

because is sure sources of making the mark. It’s necessary to get our mind back to realized

what’s makes a professional there should be a maintenance of standard and conduct should be a

disciplined and pride for professional, member should have similar and basic technical and

educational background on order to appreciate laid down in the same degree to competence and

performance. Should we apply this simplified guideline in building industries. We shall find that

we haven’t yet started practicing a profession. This building profession is suffering the greatest

set back because there’s an influx of 10 members who have not credited to their basic technical

and educational competence, the boom in Nigeria, especially building construction have

contributed to such huge migration of contracting members. Should one ask’ why is this influx of

members who are not basically skilled in the profession most fall in building? The answer is not

difficult to find other profession this may not yield as much money or are basically carried out on

the consulting services in needed. In building experience has a great impact a known work can in

few years turn a very good contract or a very figure in a contracting firm. This is where or the

place the problem lies in Nigeria we assure that only experience for building profession and our

government dully registered contracting firms on basis that are not so checked in order to put out
operations many opportunity many directions and managers accountants, doctors business men

etc best and at low ebbs, rich investors with no basis qualifications one begging to ask why do

people who are even professionals are turn to contractors, or why do people think that only more

fund can make you a good builder, it’s a fact that building industries has a great need of trained

manpower get qualified staff as these would guarantee good quality control and they are forced

to use artisans and workers which only experience as their contention. Nigeria in such stage to

develop that companies are just for the names ,many are just planning work welfare are not taken

into account the companies are only making money for the owner in order to join politics or

make a name. In this regard it’s common to see a constructive company begin to sack workers on

sooner there’s shrimp despite huge amount these workers has accumulated for the employer. The

consequences of these is in security of workers. Avoiding costly error or decision the ability of

the consultant to issue variation order in contact work serve one useful purpose of being able to

minimize or eliminate errors on earlier decision that would be otherwise be very costly to

remedy in future. This situation occurs often especially with regard to structural element in

building. Engineers may have the necessary soil fast and other report on which they based their

design however the true 11 situation on the ground when the builder get to a site and process

excavation many necessitated a change in the foundation types some firms, a whole foundation

concept maybe altered such as fern raft slob to short bored piles, Not withstanding that time

maybe lost and extra lost structure. Builder resources contractor normally place the location of

their (Scare) resources namely, finance plant and labour to each project with some allowance for

extra time and other contingency situation. However variation have the effect or crowing such

plants out and whereby creating some serious disturbance in the development of resources on

existing a new project and even the tendering process. For example builders plans and
machineries are usually very expensive capital investment by contractors hence, they usually

have an extensive programmed by machineries use on project site with appropriate date for their

release or commitment on the next job. Variation that compel the retention at the heavy plants on

site beyond the project released date dispute the builder over all plants resources deployment

programmed. Take for instance where builder on 12 story office project is issue with Variation

order ( VO) to do two extra floors when work has already progress to the 11th floor before the

order, such an order means extra time for all machinery such as the town entrance scaffolding

concrete mixer hoist etc. 2.2.6 Tribalism/Favoritism/Nepotism One concept over emphasize

about the need for harmonious co-existence co-ordination and framework among the works on

the construction project to be successful executed in all aspects all members of the teams have to

work together in harmony, As the Nigerian army will have it “spirit De corps (teamwork in

essential) on the other hand it’s very unfortunate tribal and entire favoritism posses a problem for

the management and the Nigeria construction industries expedite in the northern part where craft

men from several different tribes have work together in a particular firm. The problem is one of

the historical attributes and relationship of the group concern and is influenced by their degree of

evaluation. This can be major 12 disability factor which maybe aggravated by political

consideration especially as part affiliation as at now is mainly along tribal line. 2.2.7 Poor

Communication System. Good relations and clearly defined communication system would be

second only to motivate as a concern of the productivity is directly affected by the relationship.

Communication between management and costly, as the breakdown of machines, the loses of

sales, poor design for materials shortage. Only by communication this expectation can be a

supervisor has a positive influence on attitude, self confidence, and self development. The

average construction supervisor will be concerned mainly with information communication


because it’s face to face oral communication that get job been done. Its also ways to overcome

formal organization “trapping” which to be show for construction processes. Communication can

be verbal or non-verbal. Unfortunately, this is not always the cast through wherever possible it

may be important to live only those with oral communication would be possible however the

bulk does not stop there non verbal means which such an eye contract tone of voice body

posture, facial expressions and even silence can convince real message subordinates. These non-

verbal message can be frustrating as they can be useful “silence treatment “ form a cold and

communication boss as a sign of displeasure can recently be more effective that the verbal or

written reprimand. One appropriate gesture can convert more than a thousand words. 2.3. Causes

of Problem in Construction/Industries 2.3.1 Lack of Effective Management For any construction

industries to progress they must carry out effective activities. These are need to employ a

qualified manager in other to achieve the aims. If there’s no qualified or professional manager

there’s know how the construction industries will move forward or progress in the process of that

they will be lack of managerial skills in that industry.13 [Link] Corruption Corruption is one of

the major factor that cause problem in most construction industry in the situation when the chief

contractor employed a stubborn or bad labourer the can influence the supervisor on the working

site or their fellow labourer by causing seat back or delay and also selling some of the working

tool and materials on site. Corruption is one of basic factors that affect the construction industries

in Nigeria. 2.4 The Effect of These Problems Encountered in Construction Industry 2.4.1 Lack of

Fund: Nigeria today some of the job that was executed by some of the construction industries

have abandoned due to lack of fund or Money because it’s when the construction industries have

money that they can purchase the material that’s required for the execution of the project are the

maintenance of the plant and equipment for proper execution of the contract. 2.4.2 Non
Availability Of Equipment Lack of equipment some of the construction Industries find difficult

to execute their contract at the particular time in the sense that the project that’s awarded for

six(6) months will executed two(2) and half years due to lack of equipment to start the work in

Time. 2.4.3 Non Availability Of Materials Due to non-availability of materials there’s also a

done moment in the executing of a particular job because it’s only where there’s materials that

workers or labourers in the site will be encouraged in order to work fast for the proper execution

of the job. But if there’s no materials to execute the job there’s no how the labourers will be

encouraged to work in the site without materials [Link] Poor Communication System Poor

Communication System is one of the major effect most construction industries face, because it’s

only when there’s a good or better communication system that the chief contractors will be able

to 14 communicate with his clients or labourers about the execution of the project or work.

[Link] Lack of Qualified Technical Expert This is the process whereby a construction industries

setback due to unqualified Contractor been employed in the construction industry to carried out

the job, that have an effective work been done in the construction industry you have to employed

a professional expert to execution of a good work in the construction industry. [Link] Shortage

of Manpower Vaiter rule affect in execution of a contract this is because of the industry doesn’t

recruits must work into the Industries the execution of the work will not be effect due to the

shortage for example when ten men are required to carryout a particular job for two weeks, and

the work has been given out to the five men to carry in the the same five weeks due, those five

men can’t meet up to finish the job for five week due to shortage of Manpower because the work

will not be executed to meet up with the time because the is for Ten men due to that, the

construction industry will not be able to meet up with the specification of time of the project

period. 2.5 Remedies to The Problem of Construction 1. These are the need for proper provision
of fund for the execution of contract in construction industry. 2. These are need for Availability

of equipment in the construction industries this is to enable them to finish up with their client

contract at stipulated time. 3. In construction industry there’s the need to employ qualified

contractors for proper execution of the contract. 4. The contract in construction industries must

make sure that the number of labourers that requires for a particular job or work is employed for

such job. 2.6 The Construction Industry in Nigeria 15 The Nigeria construction industries is

made up of local and indigenous construction firms and the foreign construction firms individual

on local or indigenous firms their activities are limited to their environment owing to factors the

indigenous construction firms their activities are limited to their environment owning factors to

the indigenous construction firms have been stinted in growth in quality of wuna because of their

client pay greater attention to he foreign counterparts. For Contractors to sizable value while

contract of labour lower value of given to them for execution. The foreign construction firms in

Nigeria has made a mark in the field of construction. Their activities have been growing from

growth to strength and the quality of their work remains unbeatable the foreign construction

firms enjoyed wider publicity patronage and attract greater attention than their local counterparts

within their immediate environment. Therefore in construction firms have fractional skilled staff

within their organization who are trained on how to handled problem that are prevent in the field

construction is better than their local counterpart for example for foreign construction firms are

written construction company are. 2.7 Insurance Greece, (1977) stated insurance is an economic

institution of project on situation that the aggregate accidental loses to which the group is subject

because, it’s become predictable within narrow limited certain legal contract under which the

insurer ,for consideration promises to reimburse the insured or the render service in case of

certain described agreements (Frono, 1996) client should include insurance requirements in their
contract to make sure that the engineer have at least minimum Protection that’s if a inability does

occur, their engineers could sustain a certain loss without going bankrupt, ending the engineering

business and jeopardizing the completion of the client project. An engineering insurance adds

protection to the client assets because the client is named as an additional insured on risk

connected without the project and the engineering 16 companies insured given up the right to

recover a loss paid put for an insurance claim, even if the client were not at fault . Finally (Frano-

1996)with high deductible the insurance is there to cover a major loss and protect against a

business failure not the smaller but substantial losses that must be prude with managed. 2.8

Construction Safety a Need In The Construction Industry An engineering company may avoid

taking risk management and can no longer operate as function separate from the overall business

process. As a means of the end, more aggressive approach to risk management must be taken by

project manager (Young 1996, 33). Project management and safety will be achieve by

mobilization supervisors, foremen and worker to the increase control over safety performance by

defining ambition objectives and the effective communication to stakeholders, success, failure

and progress. 2.9 The Training and Workshops Seminars. In construction industries training and

Workshops Seminars is very important to the operations. Operations in construction industries

should be given the opportunity to be attending Seminars and Workshops to enable them upgrade

their knowledge and skill in the construction industries and to be abrades which modern

construction techniques and building materials. The operatives should be given opportunity to

training and retaining in modern construction 2.10 Summary of Literature Review This brief

summary of this research project review conference proceeding in depth analysis of a particular

subject or discipline and is often the used to help the reader quickly ascertain the papers purpose.

Knight Gilbert Partner V knight (1968) ALL ER 248) variation in construction contract can be
change to the terms of the contract or it can mean change to the scope or character of the

works.17 Joint contract committee (1994) contract (2 JCC-D 1994 building work contract

without quantities issues by the joint contract committee Australia) provided for a similar

procedure of contract documents but goes on one step further by the contractor or architect if

they discover discrepancy to inform the other. Greece, (1997) Stated insurance is an economical

institution that reduce risk by combining under one management, a group of object on situation

that the aggregate accidental looses to which the group is subject because it become predictable

within narrow limits certain legal contract under which the insurer, for consideration promises to

reimburse the insured or the render service in case of certain described agreement. Frono,(1996)

client should include insurance requirements in their contract to make sure that engineer have at

least minimum protection. That if a inability does occur, their engineers could sustain a certain

loss without going bankrupt ending the engineers business and jeopardizing the completion of

the client project. Young (1996) an engineer company many with to avoid taking risk

management and can no longer operate as function separate from the overall business process.

PC-1 (PC-1 1988) Project contract by property council of Australia which providers contract the

contractual relationship between the parties is constituted by the formal agreement to which

these conditions of contract are attached. This condition of contracts, the contract particulars, the

works descriptions, the other document (if any) referred to in contract particular. Finally,

(Frano,1996) with high deductible the insurance is theirs to cover a major losses and project

against a business failure, not the smaller but sustained losses that must be prude with

managed.18 CHAPTER THREE 1.8 Research Methodology This research deal with the method

use in collection of data for the project work. The work is done for appropriate research design to

investigate the causes of problem in construction industry and the method of desired objective of
the project. This are different type of methodologies where employed, the procedure use in the

collection of data and information for this project. Start with the population, data analysis

presentation. Sample and Sampling techniques and course the Limitation methodology 3.1

Research Design This method is use in carrying out the research. The design of this study on

investigation into problem of construction industry in Nigeria and the way forward, as well in

Makurdi Benue State,IL is the survey design research in the process in which questions are use

to receive respondent opinion in which regard to the project topic. This method is use in such a

way that it will give the respondent the freedom to talk freely on the topic. 3.2 Population of the

study In the causes of this research, it has been observed that Makurdi the state capital of Benue

State has been considered as the universal form which adequate sample were drawn, this

embraces seven (7) construction workers namely, architect, structural engineer, carpenters ,the

builder, client, survey this team are all from the construction industry. 3.3 Sample and Sampling

Technique The study of construction industry in Makurdi Benue State consist of seven (7)

construction team, the total population of the construction team in 2001 cencus is about 107,622

people not withstanding for the purpose of this study (11) people will be sampled from each

making a total of eighty (80) respondents. The people were selected using random sampling.19

3.4 Method of Data Collection. The questionnaires were distributed to the respondent at the

various sections of work. It was personally distributed and later collection for analysis. A total

(16) sixteen Questionnaires were submitted to the respondent and collected with no copy missing

five (5) people were oral interview with good manner of approach. For the people investigation

into problem of construction industry in Nigeria and the way forward in Nigeria study Benue

State. 3.5 Instrument for Data Collection The instrument used for data Collection for this

research was questionnaire oral interviews and also throws empirical method. Questionnaire was
used because it’s one of the best method used to get the required information done during many

visits to the construction industry, the oral interview was done during many visits to the

construction industry, got some or the information about the problem that bringing problem to

the construction industry, during my visit, I first greet and introduce myself to them and my main

purpose of being there, before I started asking them the major problem that is affecting the

construction industry and the way forward. The response was effective and correct for the

research. to be reliable. 3.6 Validation of Instrument The validation of this instrument of this

research show and sensible or logical, the instrument used for this study are content validity

which is concerned with content item and was carried out on instrument also face validity which

is concerned whether the test was valid to the respondent who would respond to the instrument.

Finally, an experiment was carried out to determine how the respondent will react to the

instrument, whether there’s a need to add more item on the instrument, (5) five respected people

were oral interviewed with a good manner of approach.20 3.7 Reliability of Instrument The

instrument was tested for reliability to determine how good one qualitative the information

collected was the instrument to use twice it was first administered for construction works and

some indigenous contractors the private organization and the instrument was them re-

administered in the same place for the third time and tests were found to be the same which were

confirm to be reliable. 3.8 Method of Data Analysis This method use for data analysis in this

research work is the percentage in which item are calculates to find out all respondent opinion in

the research area. 3.9 Expected Outcome In recent times, it’s has been observed that the

construction industry has been having a lot of problems in the execution of their projection,

therefore to carryout research study effectively, the problem of the construction industries, such

as Incessant Collapse of building, lack of good government policies and regulations in the
construction industries21 CHAPTER FOUR Data presentation Analysis This research work was

on three main process contributing factors that roles were subsequently exam med are scored

within identified or knowing the source of problem of construction industry and each source was

subsequently in serial number to show their influence in investigation into problem of

construction industry in Nigeria and the way forward. RESEARCH QUESTION 1: What’s the

response on attitude? Table 1: Response on attitudes S/N Items (Factors YES No % of YES % of

NO 1 Corrupt 45 45 50 50 2 Procurement Method 55 35 61.1 38.9 3 Delayed Payment 70 20

77.8 22.2 4 Politics 50 40 66.7 33.3 5 Qualify procedure 60 30 66.7 33.3 Average

percentage=66.24 37.76 Source: Field work, 2024 Table above of the respondent is quite clearly

that the item shows are part of the feature of investigation of construction industry mostly in

Nigeria this 62.24% is YES and 37.79% is NO. Research question 2: The major problem of

construction industry in Nigeria.22 Table 2: Major problem of construction industry in Nigeria.

Source: Field work, 2024 From the Table 2 above of the respondent, it’s shown that the items list

are part of the problem in construction industry in Nigeria 83.34% of the respondent answers

YES and 16.66% is NO. Research questions 3: The possible factors that are necessary to move

the industry forward. S/N Item(Factor YES No % of YES % of NO 6 Poor Communication 70

20 77.8 22.2 7 Duration of project research 70 20 77.8 22.2 8 Poor planning 75 18 83.3 16.7 9

Inadequate equipment 80 10 88.9 11.1 10 Inadequate Manpower 80 10 88.9 11.1 Average

percentage 83.34 16.6623 Table 3: The possible factors that are necessary to move the industry

forward. S/N Item( Factors YES NO % of YES % of NO 11 Fast development & Administration

60 80 66.7 33.3 12 Good system of promotion 55 35 61.7 33.9 13 Minimization of material

waste 70 20 77.8 22.2 14 Environmental condition/Hazard 65 25 72.2 27.8 15 Criminal avoided

out 45 45 50 50 Average Percentage = = 65.56 34.44 Source: Field work, 2024 The respondent
on the tables above is shown that the items listed are part of the problem of construction industry

in Nigeria and the way forward 65.56% with YES and 34.44% where NO on the finding listed

from the data analysis above include. 1.9 Some project or construction involved large amount of

money to prove or to being forced to remain in the shield for long as there is simply on finance in

the slight of people to purchase 1.10 Proper preparation and planning liability and feasibility

monitoring of finance for construction work should be put in such a way which the various

agencies with will be able to control the various problem in the construction industry.24 1.11

The most construction are complex and it require professional assistant to handle effectively to

enable the construction industry to move forward in under to have a problem along the

construction line to being a good result & delivery for the construction industry. 4.1 Major

finding of the study The purpose of this research is base on the following Objectives of this

project (1) The possible investigation to be carried out in construction industry it’s Listed in the

Table 1 corrupt official procurement Method delayed payment politics unqualified procedure. (2)

The major problem of construction industry in Nigeria are listed in table 2. >> poor

Communication >> Diverting of project material. >> Poor planning. >> Inadequate plane &

equipment for the project. >> Inadequate Manpower in the construction industry (3) The possible

factor that is necessary to move the construction industry forward are listed in table (3) fast

development & administration good system of promotion minimization of material waste

environmental condition or hazard & proper staff planning to the staff and worker on the

construction industry criminal act to be avoided in the construction industry or out entirely from

the firm totally. 4.2 Discussion of Finding Inadequate planning has been pointed out as the one

factor that cause problem, in the construction industry in Nigeria many project do not end

successfully while many others are outright disaster however usually project end up in the gray
area on the project success seal or over your budget or to have a dissatisfied client or a miserable

team to keep your project from ending up in this gray area or in further range you must avoid

making the single biggest project management mistake.25 Inadequate planning. The top file

project management mistake in today’s article I am examine the biggest project management

mistake poor planning to Avoid the four of the five most common project problem in the

construction industry are: (1) Inadequate project planning (2) Weak scope change management

(3) Not managing the work plan (4) Poor project communication (5) Lack of quality

management.26 CHAPTER FIVE Summary, Conclusion and Recommendation 5.1 Summary

This research work is on investigation into problem of construction industry in Nigeria and the

way forward. Because in the recent time, it has been observed that the construction industry has

been having a lot of problems in the execution of their projection. Therefore in order to carryout

research study effectively, the researcher has to investigate some of the problems of the

construction industries as follows: Incessant Collapse of Building, lack of good Government

policies and regulations in the construction industry, Lack of Qualified Technical Expert non-

availability of fund or Finance etc. In Literature Review the researcher went down the further to

analyze that problem of construction industry in human readable form. Finally, in the process of

this study, it has discovered that some of the problem in construction industry today was mainly

caused by lack of fund or Finance. In order to finish the project properly, it was discovered that

corruption in the construction also contributed to the problem of the construction industry. Based

on the finding the researcher recommended that, The Government should create or establish a

credit bank that will be giving loan to some of the registered contribution firms in the country.

They should equally make a policy or regulations that will be guiding the activities of the

construction industries or firms.27 5.2 Conclusion This is generally clear that the government
recognizes the roles of construction Industries in Nigeria in the development of the country in

economy, by making the Industries as means of increasing the national output, generating funds

for government and minimizing fluctuation of foreign exchange earnings in the country. But

inadequate provision of plant and equipment. Lack of good building policies, regulations,

instability government policies, under development technology foreign domination and lack of

fund from the Industries is the major problem facing the construction industries in Nigeria today

and if the whole situation is not well addressed then rule function of construction Industries in

these countries will not be bright. Therefore it’s necessary for the government to find out at least

the solution to this problem mentioned above, for effective growth of the construction industries

in our country. Construction Industries in our country and government should bring out good

building policies and regulations to give the construction industries in the country. 5.3

Recommendation 1. It has been observed that over 30-60% of abandoned project by construction

industries in Nigeria today, are caused due to lack of fund and mismanagement of fund by the

construction industries and due to instability of government policies in the country. Therefore,

the government should endeavor to provide and establish credit guarantee bank, for the purpose

of granting loans to contract in construction industries that dully registered and recognized by the

federal government.28 2. There should equally recognized enlightenment programmes to

coordinate the standards and show professional negligence. 3. Promulgate a national construction

polices in order to address and encourage the development of indigenous participation and

control of the greater growth of the construction industry in Nigeria. 4. The major investors and

operators in construction industries lead the way total quality management practices through the

adoption of appropriate contractual and procurement Methods. 5. All the building professional

bodies should endeavor to work together in order to achieve or meet the require demands of the
construction industry and bearing the client interest and satisfaction in their hearts. 6. The

council of registered builder of Nigeria( CORBON) was employed to initiate actions to make

government enact loss against property developers who deliberately patronize quacks and

qualified Contractors for the building. 7. There’s also the need for effective communication

among the professional builder in order to prevent the ware of huge waste resulting from lack of

good communication. 8. Increase revenue when the basic necessity of the practice in term of

plant and equipment and construction materials can be easily procured. 9. Finally, the removal of

the construction industry from the priority sector in terms of granting loan for the financial

institution should be reversed.29 REFERENCE Ademoroti. G(1993) daily times of Nigeria. The

need to encourage local builders For security Akande. S. O(1998)”the journal of the federation of

building are civil engineering contractors in Nigeria”. Contract system in Nigeria, which may

forward A return to Sanity Adams. A.O(1997)” Contactor Registration in Nigeria needs for a

critical review “ Construction in Nigeria. Windapo, A.O(1999)” Construction scenario in the

united state of America Unpunished paper submitted in fulfillment of BLD 963-construction

scenario, University of Lagos Nigeria. Frano(1996)” Insurance management “ A strategic

planning approach MC Gram Hill Book Company Greece (1997) principle of insurance pretence

Hell New York30 Okeke. (Vol.3.11983)” the building journal “ revolution building industry in

Nigeria, A yearly published journal by the association of building/quantity surveyor department

I.M.T Enugu. Owor. N.F” problem and prospect of the indigenous [Link] Nigeria

construction industry “ unpublished MSC thesis department of building Ahmadu Bello

university, Zaria Nigeria. OLATEJU AND BAYO (VOL.26 NO.31991)”the journal of the

Nigerian society of engineers and education of the level of participation of indigenous

contractors in the construction industry in Nigeria.31 APPENDIX 1 Department of Building


Technology NACEST NASME BARRACKS P.M.B North Bank Makurdi Benue State Dear

Respondent, REQUEST FOR COMPLETION OF QUESTIONNAIRE I am a HND final year

student in the above name Institution carrying out a research on a topic “Investigation into

problems construction industry in Nigeria and the way forward”. This questionnaire is to solicit

information from you in order to achieve the aim and Objectives of the research. Please ensure

that the information provided is correct and I assure you that the information given will be

treated confidentially and only for the purpose of academics. Thank you for your anticipated

consideration. Yours Faithfully ABACHI JOSHUA TERESE NACEST/BLD/HND22/554

(RESEARCHER)32 Section A: Personal Data Please tick in ( ) the appropriate column that gives

true information about you. 1. Age: 18-25 years( ) 26-45( ) 46-65( ) 66 above( ) 2. Sex: Male( )

Female ( ) 3. Marital status: Married ( ) Single ( ) Divorced ( ) Widowed ( ) 4. Occupation:

Traders/Farmers ( ) Company workers/Civil servants( ) Student ( ) Others ( ) 5. Academic Level:

Non Formal ( ) Primary/Secondary ( ) Diploma Degree ( ) post graduate ( ) 6. Religion:

Christianity ( ) Islamic ( ) Tradition( ) Others …………………. 7. Duration live in Makurdi: 1-5

years ( ) 6-10years ( ) 11-15 ( ) 16 and above ( ) 8. Ethnicity: Tiv ( ) Idoma ( ) Etilo ( ) Others

specify………………………………33 Appendix 2 Investigation into problem of construction

industry in Nigeria and the way forward study of Makurdi Benue State QUESTIONNAIRES

1……Questionnaire of the respondent 2…...Employer 3….. position in the employment

4…..What are the possible investigation to be carried out in construction industry in Nigeria.

(a)Corrupt official (b) Procurement Method (c) Delay payment (d) Politics (e) Unqualified

procedure (8) What is the major problem of construction industry? (a) Lack of Qualified

professional (b) Diversion of project resources (c) Inadequate plants an equipment (d) Inadequate

Manpower (e) Poor planning Tick as appropriate34 (9) What are the possible factors that is
necessary to move the industry forward (a) Fast development and good administration (b) Good

system of promotion (c) Minimization of material waste (d) Environmental condition/hazard (e)

Criminal act avoid out

Common questions

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Better planning and preparation can significantly address many of the issues plaguing the Nigerian construction industry by providing a structured approach to project execution and resource allocation. Meticulous project planning can forecast potential risks and develop contingency plans, thereby minimizing unnecessary delays and ensuring timely completion . Additionally, comprehensive preparation allows for the efficient matching of resources—such as materials and manpower—with project demands, reducing wastage and cost overruns . By incorporating best practices in project management and stakeholder engagement from the onset, the industry can enhance its overall operational effectiveness and build resilience against emerging challenges .

Corruption has a profound impact on the Nigerian construction industry, affecting both project execution and completion. It often results in the misallocation of resources and funds intended for construction projects, leading to project delays or abandonment due to a lack of necessary materials or equipment . The presence of corrupt practices can also compromise the quality of construction by allowing the use of substandard materials and shortcuts in project execution . Furthermore, corrupt influences often prioritize projects based on political rather than practical considerations, which can sideline crucial infrastructure projects and hinder overall industry progress .

Key factors necessary for progressing the Nigerian construction industry include fast-tracking development and administration processes, implementing a good promotion system, minimizing material waste, and accounting for environmental conditions and hazards . Emphasizing the training and recruitment of qualified manpower is pivotal to address the skills gap . Addressing these factors holistically would enable the industry to operate more efficiently and respond effectively to market demands, thereby fostering sustainable growth and development .

Poor communication systems significantly hinder productivity in the Nigerian construction industry by creating barriers to effective coordination and project execution. Miscommunications can lead to misalignment of objectives between management and workers, resulting in delays, misunderstandings, and the underperformance of tasks . Without clear and direct communication, errors in planning and execution go unaddressed, leading to operational inefficiencies . Moreover, non-verbal communication breakdowns can negatively impact worker morale, diminishing motivation and productivity in the workforce .

Delayed payments have a direct and disruptive effect on the completion of construction projects in Nigeria. Financial strain from such delays impedes the ability of contractors to purchase necessary materials and pay workers on time, stalling project activities and causing significant schedule setbacks . These disruptions often lead to project abandonment as firms are unable to sustain operations without consistent cash flow . Furthermore, delayed payments increase project costs due to penalties and interest on overdue charges, exacerbating financial pressures on construction firms .

Inadequate equipment and lack of funds significantly delay construction projects in Nigeria. The absence of necessary equipment often prolongs project timelines, as construction firms struggle to overcome operational inefficiencies . Similarly, the lack of financial resources impedes the procurement of essential materials and the maintenance of existing infrastructures, leading to stalled project activities and extensive delays . These factors collectively hinder the industry's ability to meet specified project deadlines, resulting in cost overruns and reputational damage .

To address the shortage of qualified technical experts in the Nigerian construction industry, comprehensive strategies including educational reforms, specialized training programs, and incentives for skill development are essential. These measures should focus on enhancing the competence and capacity of the workforce through practical and ongoing professional training . Partnerships between industry stakeholders and educational institutions to offer apprenticeship programs could also help in increasing the number of qualified professionals . Encouraging international collaborations may provide access to global best practices and advanced technical knowledge, thus improving overall industry capacity .

The government plays a critical role in addressing building collapse by enforcing strict regulations on construction standards and ensuring only qualified professionals manage building projects . This involves implementing policies that disallow the employment of unqualified builders and enforcing the use of standard materials . Additionally, there should be a regulatory framework supporting the national construction policy to prevent patronage of quack contractors . Government agencies must commit to stringent oversight and discipline, ensuring compliance with these regulations to uphold construction safety and quality standards across all projects .

The involvement of non-professional builders in Nigerian construction projects is a major factor contributing to building collapses. These individuals often lack the necessary technical expertise and adherence to standards, resulting in subpar construction quality . The exclusion of skilled builders from planning and management roles leads to inadequate structural integrity and project management, increasing the risk of disaster . Furthermore, oversight by unqualified personnel often results in the use of inappropriate construction materials, further compromising building safety .

Ethnic favoritism and tribal politics fundamentally undermine the performance and efficiency of construction firms in Nigeria by fostering divisive work environments. Tribal loyalties can create deep-seated biases in hiring, promotions, and team assignments, often undermining meritocracy and the optimal allocation of human resources . Such dynamics lead to inequitable workplace practices, where decisions are swayed by ethnic affiliation rather than competencies, which, in turn, demoralizes qualified personnel and hampers collaborative efforts . These issues exacerbate inefficiencies and reduce the ability of firms to harness diverse skills for maximum productivity, ultimately stalling industry progress .

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