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

ABSTRACT
The aims of this thesis titled ‘UTILISATION OF CONSTRUCTION MANAGEMENT AS A PROCUREMENT METHOD IN THE NIGERIAN
CONSTRUCTION INDUSTRY’ are to ascertain the various roles played by construction management in contract administration, to consider the history and evolution of construction management in order to ascertain the state-of-the art techniques, to analyse construction management as an indispensable tool for cost saving in construction and to analyse construction management as a vehicle to speedy, efficient and on-time project delivery, while the objectives are to ascertain the activities/functions that enable the smooth running and execution of project, and successful completion, to understand how the client’s briefs can be translated into physical reality whilst satisfying his design, technical, cost and time requirements, to find out the various avenues of minimising the amount of outgoings from a company, whilst maximising the amount of incomings in order to have significant cost savings on a project and to determine the height of departure of the current practice of construction management from the primitive method. The method employed in gathering information is through site visits during which oral interviews and oral questions were held with clients, contractors, engineers and other professionals including even the workmen which bothers on budgeting techniques, cost and time control, cashflow, construction execution, quality assurance, etc. Summarily, construction contractors and the owners of construction projects should effectively use Earned Value Management system as a means of ensuring viable project performance and as well serves as an Early Warning System so as to guard against cost and time overrun.

TABLE OF CONTENTS
TITLE OF THESIS i
CERTIFICATION ii
DEDICATION iii
ABSTRACT iv
TABLE OF CONTENTS v
CHAPTER 1
1.0 INTRODUCTION/ BACKGROUND OF STUDY 1
2.0 AIMS AND OBJECTIVES 3 – 4
3.0 PROBLEM STATEMENT 4
4.0 RESEARCH QUESTIONS 4 – 5
4.1 SCOPE AND LIMITATION OF STUDY 5
CHAPTER 2
2.0 REVIEW OF RELATED LITERATURE 6 – 94
CHAPTER 3
3.0 RESEARCH METHDOLOGY 95
CHAPTER 4
4.0 ANALYSES/INTERPRETATION/PRESENTATION 97
CHAPTER 5
5.0 CONCLUSION AND RECOMMENDATION 98 – 99
vi
1
CHAPTER 1

INTRODUCTION

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

Fig. 1 (Sourced from: Modern Construction Management, 5th Edition) The increasing complexities of modern project in terms of time, cost,
technology and quantity requirements have made the traditional system inadequate and obsolete since construction management satisfies the increasing demand for improved construction industry performance by clients. In order to strengthen this confidence, the
construction manager provides such professional services as value engineering, value management, project feasibility study, project budgeting, bid packaging, parameter estimating, time and cost control system, e.t.c. which are aimed at optimising client’s value for
money.

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

1, Analysing the impact of construction management as a vehicle to speedy, efficient and on-time project delivery,
2, Analysing construction management as an indispensable tool for cost saving in construction,
3, Considering the history and evolution of construction management in order to ascertain the state-of-the-art techniques of construction
management,
4, Ascertaining the various roles played by construction management in contract administration (planning, managing, organizing, execution
and delivery of contract).

The objectives of this research project are to:
1, Understand how the client’s brief can be translated into physical reality whilst satisfying his design, technical, cost and time
requirements,
2, Find out the various avenues of minimising the amount of outgoings from a company, whilst maximizing the amount of incomings in order
to have significant cost savings on a project,
3, Determine the height of deviation of the current practice of construction management from the primitive method, and
4, Ascertain the activities/function that enable the smooth running and execution of a project, and successful completion.

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

1. 1.3 RESEARCH QUESTIONS
   1. What does construction management seek to achieve?
2. Has the use of tools (economic, technical and administrative tools) been constructive in the achievement of smooth and successful
   project delivery?
3. At what specific stage of a project is construction management needed (Pre or Post contract)?
4. What are the types of planning in construction management and who is (are) responsible for planning. Is planning left in the hands of a
   construction manager alone?

1.4 SCOPE AND LIMITATION OF STUDY
This research project is limited to Lagos metropolis as this is an environment where hitech and modern construction works are being
carried out in large number coupled with the nature and geographical disposition of the environment (terrestial and aquatic)
which is a combination of both on-shore and off –shore construction works. These combinations enable this choice as they are all
encompassing. In addition, this research work covers and is limited to only building construction works which include but not limited to residential buildings, office complexes, academic complexes, shopping centres/malls. Lastly architects, engineers, quantity surveyors, project/construction managers.