Construction dispute and contract incompleteness in Nigeria construction industry

Titus, Olalekan Olaolu; Ariffin, Hamizah Liyana Binti Tajul; Ali, Kherun Nita

doi:10.1016/j.asej.2023.102153

Cited by 5 publications

(3 citation statements)

References 21 publications

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“…In Nigeria, the process of obtaining project permits and approvals from government agencies, such as EIA, QSREN, CORBON, MLHUD, and ISPON, was found to be inconsistent due to frequent policy changes with each new administration [22]. This instability was discovered to be a result of corrupt practices and political influences that compromise existing regulations and enforcement for personal gains, which have negative effects on construction projects [59]. This contributes to uncertainties, including delays in project timelines, cost overruns, renegotiation due to regulatory shifts, and lack of safety measures, environmental violations, and contractual disputes.…”

Section: Instability Of Government Policy and Regulationmentioning

confidence: 99%

Flawed Institutional Structures: Project Managers Underutilized in Nigeria’s Construction Industry

Iroha,

Watanabe,

Satoshi

2024

Buildings

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Many studies have been conducted on the poor performance of the construction industry. Nigeria’s construction industry has been linked to project delays and cost overruns, leading to many abandoned construction projects throughout the country. These issues are largely attributed to inadequate project management practices and the underutilization of project managers. To address these challenges, an institutional analysis was conducted to examine the factors, within the institutional framework of the Nigerian construction industry, that hinder the effective utilization of project managers and the implementation of project management practices. Data were collected from the previous literature and were supported by data collected through semi-structured interviews in Nigeria. The collected data were coded into a four-level framework for institutional analysis. This method was employed to analyze the interrelationships between the identified embedded factors, institutional laws and regulations, and construction organizations, and to understand how their influence results in the underutilization of project managers. Deviation analysis was conducted as an additional method to categorize the impacts of the embedded factors at each institutional level and to determine how these impacts contribute to the underutilization of project managers in the Nigerian construction industry (NCI). It was found that the system of the underutilization of project managers consists of two subsystems: underutilization and lowering commitment. For the former subsystem, corruption, political influence, religious and tribal discrimination, and organizational culture were found to adversely influence the institutional structure of the construction industry in Nigeria. These factors weaken the governance mechanisms within the industry, leading project managers to prioritize corrupt practices over project needs. The ineffectiveness of existing laws and regulations exacerbates the situation, supporting unfair working conditions and contributing to the underperformance of project managers. This result leads to development at the top of the latter subsystem, with minimal incentives and limited opportunities for career growth within construction organizations. The findings hold significant potential for addressing systemic issues in the Nigerian construction industry, particularly the underutilization of project managers and organizational support measures to improve project management practices and mitigate the adverse effects of corruption.

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Section: Instability Of Government Policy and Regulationmentioning

confidence: 99%

Flawed Institutional Structures: Project Managers Underutilized in Nigeria’s Construction Industry

Iroha,

Watanabe,

Satoshi

2024

Buildings

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“…• Circunstancias sobrevenidas no contemplables durante el diseño del proyecto Otros autores han ampliado recientemente la búsqueda de causas a otros campos relacionados con los proyectos de construcción de promoción pública, las licitaciones. Un ejemplo reciente es el trabajo de Olaolu Titus et al (2023) en Etiopia, que se centra en estudiar que tipología de licitaciones dan lugar a menor número de modificaciones, y por tanto a menores desviaciones.…”

Section: Los Modificados De Proyectos En Ingeniería Civilunclassified

Los modificados de proyectos públicos y sus sobrecostes: caso de la ingeniería civil en España

2023

Proceedings From the International Congress on Project Management and Engineering

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The construction sector has historically been linked to public projects. One of the most common problems that concerns society in this type of projects are the cost overruns, usually linked to change-orders of the original projects. The cost that these change-orders have an impact on the public treasury is unacceptable for a society that seeks efficient and sustainable development. Therefore, it is necessary to examine in depth the circumstances and nature of the causes of these change-orders. This paper focuses on the specific case of public civil engineering projects in Spain. By generating a database of projects that have been subject to modifications, their relationship with the Spanish legislative change in 2018 is analysed, to observe the possible performances of the projects according to the legally stipulated limits.

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“…Commonly identified causes of modifications include: Recent studies have extended the search for causes to other aspects of public construction projects, such as bidding processes. For example, Olaolu Titus et al [44] studied bid types influencing modifications in Ethiopia. Other studies link changes in construction productivity, often tied to project modifications, to shifts in the business environment, and to country-specific institutional regulations [45,46].…”

Section: Description Observations Referencementioning

confidence: 99%

The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework

Alonso-Iglesias,

Ortega-Fernández,

Rodríguez-Montequín

et al. 2023

Buildings

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Cost overruns are a common problem for public works projects, often due to modifications to the original design. While the causes of these modifications have been studied, the legal framework’s impact and limitations on these modifications have received extensive treatment, with no specific case studies from different countries. This paper explores the relationship between modifications in Spanish public works projects and their compliance with legal limits, investigating the alignment between base bidding prices and eventual costs after adjustments. The study also delves into the strategic behaviour of construction companies in Spain, which frequently involves manipulating project costs to match the initially proposed bidding price. Statistical methods, such as the Spearman correlation test and graphical analysis, confirm a nearly exact relationship between base bid price and final price. Also, a modification costs comparison for two different legal periods highlights the legal framework’s influence, as a less restrictive framework leads into higher average cost overruns. It provides valuable information to avoid malpractice for tendering institutions, practitioners, and legal developers, as well as those interested in the Spanish public works sector, and opens the door for future research on solving this problem.

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Construction dispute and contract incompleteness in Nigeria construction industry

Cited by 5 publications

References 21 publications

Flawed Institutional Structures: Project Managers Underutilized in Nigeria’s Construction Industry

Flawed Institutional Structures: Project Managers Underutilized in Nigeria’s Construction Industry

Los modificados de proyectos públicos y sus sobrecostes: caso de la ingeniería civil en España

The Relationship between Cost Overruns and Modifications for Construction Projects: Spanish Public Works and Their Legal Framework

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