ASSESSMENT OF CAUSES AND EFFECT OF ABANDONED PROJECT IN LAGOS
1.1 BACKGROUND OF STUDY
The causes and effects of projects abandonments are not just peculiar to a particular reason rather cut across several reasons (Ayodele and Alabi, 2011), and as well as creating a total dwindling effects on the values of developed properties located close and within the vicinity.
The Abandoned projects including building, Civil Engineering and heavy engineering development project like: houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria (Okon, 2012).
According to Osemenan (1987) stated that Nigeria has become the “world’s junk-yard of abandoned projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the construction industry can experience such magnitude of project abandonment.
According to another report by Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated cost of above N 300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole.
The construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experience an increase in construction activities, but in a depressed economy, the incidence of project abandonment tends to be more prevalent. According to Akinolu (1980) delays and cost overruns have “knock on” the effect on the construction industry and indeed in the whole economy.
This applies to Nigeria where construction investments account for over 50% of the gross fixed capital formation. Akindoyeni (1989) qualitatively reasoned that some of the causes of project abandonment in Nigeria are: deaths of client, inability of client to attract fund and lack of good planning. This study is set up to quantitatively determine other causes of project abandonment and their effects on the construction industry economy. This will help to proffer solutions that will drastically reduce abandonment of projects in Nigeria
1.2 STATEMENT OF RESEARCH PROBLEM
What really instigated the research was due to rate at which projects are abandoned in most of the states in Nigeria especially Lagos state. The Abandoned projects including building, Civil Engineering and heavy engineering development project like: houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria (Okon, 2012). There are no spaces for other activities as a result of the abandoned project.
The cogent of this study is on the premise that the expected real properties and its values in Nigeria are suspected to be dwindling as a result of incessant abandonment of projects
1.3 AIMS AND OBJECTIVS OF STUDY
The main aim of the research work is to carry out an assessment of causes and effect of abandoned project in Lagos. Other specific objectives of the study include:
- To determine the effect poor cost estimation on abandoned project in Lagos
- To examine the effects of abandonment of residential properties in Lagos
- To determine the relationship between abandoned project and project value in Lagos state
- To proffer solution to the causes of abandoned project in Lagos
1.4 RESEARCH QUESTION
The study came up with research questions so as to be able to ascertain the above stated objectives of the study. The research questions for the study are stated below as follows:
- What is the effect poor cost estimation on abandoned project in Lagos?
- What is the effect of abandonment of residential properties in Lagos?
- What is the relationship between abandoned projects and project value in Lagos state?
1.5 STATEMENT OF RESEARCH HYPOTHESIS
H0: There is no significant relationship between abandoned project and project value in Lagos state
H1: There is significant relationship between abandoned project and project value in Lagos state
1.6 SIGNIFICANCE OF STUDY
The following are the significance of this study:
- The results of this study will educate the general public on the causes and effect of abandonment of projects in Nigeria with a view of reducing the issues of building abandonment in Nigeria.
- The outcome of this study will guide the government and policy makers on ways to make and implement policies that will reduce the rate of building abandonment in Nigeria.
- This research will also serve as a resource base to other scholars and researchers interested in carrying out further research in this field subsequently, if applied will go to an extent to provide new explanation to the topic.
1.7 SCOPE OF STUDY
This study on the assessment of causes and effect of abandoned project in Lagos state will cover all the cases on abandoned projectin Lagos carefully examining the causes. It will also cover the consequences of the abandoned buildings in the affected area
1.8 LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
COST ESTIMATION: is the approximation of the cost of a program, project, or operation