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A SYSTEMS APPROACH IN ANALYSING MATERIAL CONSTRAINING FACTORS TO CONSTRUCTION PROJECT MANAGEMENT SUCCESS IN NIGERIAN

December 24th, 2010 Construction

A SYSTEMS APPROACH IN ANALYSING MATERIAL CONSTRAINING FACTORS TO CONSTRUCTION PROJECT MANAGEMENT SUCCESS IN NIGERIAN.

By; Dr. C.C Nwachukwu ANIVS, FCRMI, Lecturer, Project Management Technology Department, Federal University of Technology Owerri, Imo State, Nigeria, West Africa. GSM; 08033289740, E-Mail; nedumchisma@yahoo.com

ABSTRACT

The study analyzed materials as an integral part of the direct and indirect factors that constrain project management success of public and private sector construction in Nigeria using systems approach. This study is very relevant as any constrain to the success in the construction sector has a significant effect on the overall economic growth of the nation. Data analyses were computed based on the subjective data on the factors Relative Relevance Indices of Attributes. Factor analysis was used to collapse the factors to fewer but interrelated variables. The result of the analysis of material factors will lead to the development of a computer model and advanced project management software that will include materials as an efficient instrument in tracking projects alongside with Time and Cost variables.

KEYWORDS

Material Constraining Factors, Systems Relative Relevance Attributes, Public and Private Sector Construction.

INTRODUCTION

Construction industry could been ranked among the top four out of about twenty economic sectors in terms of inter-sector linkages. The importance of this sector as an agent of development is enhanced by its ability to provide gainful employment for the teeming population of the nation. To this end therefore, the strategic importance of the construction industry in a growing economy like Nigeria cannot be over-emphasized as we have seen that the industry account for a significant percentage of the nation’s Gross Domestic Product and employs a substantial fraction of the labor force. Construction industry is a major index as a factor in the social and political integration of the society and ranks as one of the major budgetary areas of developing economies. The construction industry is proven to be the corner stone and bedrock of rapid economic growth of any nation (Bhavesh, 2006). This is underscored by the fact that capital projects in Nigerian budget mostly represent over 40% of the total projected expenditure in both Federal and state governments annual budgets and also in the nations various development and rolling plans. The product of construction industry is desired not for the services they create as commerce and industry have a structural base. According to Eric, 2003, “the industry is likely to remain a major area of development activity as the need for the provision and replacement of infrastructure become more relevant in the years ahead”.

This study is limited to material factors constraining construction project management success in Nigeria. Project success constrains as a system are inter-related and have significant effect individually and collectively on both public and private sectors of the economy.

OBJECTIVE OF THE STUDY

The study is aimed at identifying and analyzing material constraining factors to project management success of both private and public sector construction in Nigeria. The analysis will reflect the strength of each factor and the rate at which it influences failure, abandonment and collapse of construction projects in Nigeria. The result of the findings if implemented is expected to reduce the rate at which projects fail in Nigeria if not eliminating them.

METHODOLOGY

Data for the analysis was through direct and indirect sources. A five point-Likert scale format was used in the questionnaire design. Factor analysis was used to collapse the variables to fewer but interrelated variables. The ANOVA was used to confirm the differences in the level of relevance of these factors constraining project success. The analysis focused on cost related constrains in the construction of Ten building structures housing Imo State secretariat Owerri by Ten different construction firms, the construction of Owerri Onitsha road that is still ongoing and the construction of Oceanic bank building along Douglas road Owerri, all in Eastern Nigeria, West African Sub-Region. The analytical formula is RRId = ?ci/CI x 100.

HISTORICAL BACKGROUND OF THE STUDY

The modern concept in the history of construction industry increased the responsibilities of human resource management especially in materials procurement which is evidenced in increased contractor’s managerial role. The Latham Report in 1994, the Egan Report in 1998, and the result of the Rethinking Construction helped in galvanizing the pace of change in materials substitution in the construction industry. The report called for a ‘radical change to the processes of specifying material requirements in construction project design, procurement process, storage and instalation. The four ‘key elements’ of product development, project implementation, partnering the supply chain and the production of components should be subject, it said, to innovations resulting in integrated project processes. Most importantly, the report urged the development of a culture of performance measurement in material handling so that the efficacy of such innovations could be evaluated and continuous improvement promoted. Seven targets were set relating to improvements in cost, time, predictability, defects, accidents, productivity in material management.

The evolution of sophisticated construction materials and the effect of communication in enhancing marketing strategies is a possitive index in its avialability. However, the available construction materials to choose from are many; some of the materials are new and have not been tested. Stringent rules are now being required, for example to meet environmental protection law prescriptions. Methods of construction have changed over the years from mere lying of bricks and blocks to sophisticated complex concrete and steel constructions both in-situ and fabricated. These methods require different management systems approach than the conventional methods could cope with.

THE IDENTIFIED MATERIAL RELATED FACTORS CONSTRAINING PROJECT MANAGEMENT SUCCESS IN PUBLIC AND PRIVATE SECTOR CONSTRUCTION IN NIGERIA ARE:

*Incomplete detailed information on material installations and functional life of the materials.

* Delays in material procurement caused by the client, project team, and or contractors and its implications on construction cost and time.

*Lack of detailed information on weather effects of some construction materials and their implication as regards installation, duration, maintenance capabilities especially foreign procured materials.

* Effective and efficient management of procured materials on site, Inadequate or incomplete specification on design and documentation.

* Initial cost estimating errors on materials type, quantity and quality.

*Attitude of project team and client towards material control and monitoring on site during construction.

* Forecasting the inflation effect on materials at the conception and planning stages.

* High cost of basic building materials and their effect in causing construction projects delays and abandonment.

* Bribery and corruption as they affect cost of materials procurement.

*Inadequate established and systematic materials Cost control procedure for the project design and construction.

* Computers rarely employed for measuring the weight and quality of materials. *Critical and crucial issues like personnel motivation that will affect materials design, procurement and storage are not usually considered and clearly specified. *Lack of adequate information on health implications of some materials on end users and handling process during installations.

* Minimising specialist work, promoting Prime cost on provisional sums for some materials.

* Specialist work on some material installation are not well defined early in the project.

* Clarity of design brief and minimum design gap on materials.

THE RESEARCH MODEL

The model in figure 1 consists of direct and indirect variables developed as a holistic approach to solving the problem of project management success constrains in the construction industry in Nigeria. This study is based on the analysis of only material factors as a subsystem of the general presented system. The arrows in the model show how the variables interrelated and are intra-dependent. To this end, it shows that any factor that affects a subsystem variable will invariably affect every other factor from that system and also from other subsystems.

TIME SUBSYSTEM

SUBSYSTEM

CLIENT SUBSYSTEM

SSSSUBSUBSYSTEM

PROJECT MANAGEMENT SUBSYSTEM

SUBSYSTEM

ENVIRONMENTAL SUBSYSTEM

CONSTRUCTION

SUBSYSTEM

DESIGN SUBSYSTEM

SUBSYSTEM

QUALITY SUBSYSTEM

SUBSYSTEM

Figure 1 THE CONSTRUCTION PROJECT MANAGEMENT SUCCESS INTERACTIVE MODEL composed by the researcher

Principal Factor Loadings of Public and Private Sector in the Materials Subsystem Variables and there RRIA.

Table 1 Factor loadings

Common variables

Public

Private

Factor 1

Fluctuation in the cost of materials

Inadequate storage facilities, ambiguous material specification during design.

Initial material cost estimating errors

Attitude of project team towards material wastage.

Forecasting the cost effect of a decision before implementation on material substitution

Inadequate established and systematic material cost control procedure

Critical and crucial issues affecting materials not considered

Inadequate planning on alternative materials

Minimizing specialist work prompting provisional and prime cost sums on materials

Clarity of design brief and minimum design gap

0.51628

0.66515

0.54089

0.61521

0.60849

0.66303

0.64086

0.65712

0.61150

0.49967

0.50220

0.69005

0.55518

0.5782

0.64619

0.66445

0.63301

0.67830

0.54593

0.48571

Unforeseen circumstances

High interest rates on loan facilities for material procurement

Bribery and corruption

Minimizing claims through thorough understanding of contract conditions

Ability of design to achieve economy on materials

Frequent change orders/variations with financial implications

Construction delays

Cost control during design stage

0.58869(4)

0.47275(3)

0.37300(5)

0.50749(3)

0.54449(2)

0.54988(2)

0.52056(2)

0.46890(2)

0.56538(2)

0.54608(1)

0.61019(1)

0.50174(1)

0.69529(1)

0.585509(1)

0.595144(1)

0.54362(2)

0.55482(2)

0.51020(2)

Source: Computer Analysis of the study

ANALYSIS OF THE VARIABLES

In the material subsystem, three principal factors having eigenvalues greater than 1.0 were obtained in both public and private sector projects For the purpose of extraction of relevant factors for computation, only those factors greater than 0.400 were considered. In addition, the various factors were given descriptive names on the basis of their most basic variables that is, variables with the highest loadings. It will also be noticed that a number of variables load higher than one. For the purposes of loading extracted factors, variables were grouped with factors where they have the highest wieght.

Table 2 Eigenvalues greater than 1.0, percentage variance and cumulative percentage

A – PUBLIC

B – PRIVATE

Factors

Eigenvalues

Percentage variance

Cumulative percentage variance

Eigenvalues

Percentage variance

Cumulative percentage variance

4.21470

3.42151

2.36102

17.7

10.1

8.3

17.7

29.4

51.1

3.61363

3.16195

1.45613

23.1

14.1

5.8

23.1

54.4

61.3

Source: Computer Analysis of the study

Table 3 (A,B) Variable groupings into dimensions using principal factors

A – Public sector construction

Factors Extracted variables and their loadings No of variable L/D Factor Name

Per factor

1 M2 M5 M6 M7 M8 M11 M13 M14 10 Thorough detailed scope definition,

0.51628 0.66515 0.54089 0.61521 0.60849 0.66303 0.64085 0.65712 adequate planning & attitude

M15 M16 towards material management

0.61150 0.49967

2 M1 M3 M17 M1 M198 5 Effects of material procurement and

0.52056 0.46898 -0.54449 0.54988 -0.56538 storage, delays & uneconomic use.

3 M9 M12 2 Fluctuations on the cost of materials

0.47275 0.50749 and variance in quality.

4 M4 1 unforeseen circumstances

0.58869

M10 1 Bribery and corruption in procurement processes

0.37380

Sources Computer analysis of the study

B – Private sector construction

M2 M4 M5 M6 M7 M8 M9 M10 16 Detailed scope definition & planning 0.50228 0.54608 0.69005 0.55518 0.65782 0.4619 0.61019 0.50174 material procurement and storage

M11 M12 M13 M14 M15 M16 M17 M18

0.66445 0.69529 0.63301 0.67830 0.54593 0.48571 0.58509 0.59594 M1 M3 M19 3 Cost implications of variation in material variations -0.54362 -0.55482 0.51020

3 - - - - - - - - -

Source: Computer Analysis of the study

RESULTS OF FACTOR ANALYSIS OF PUBLIC MATERIAL VARIABLES

It is interesting to see that 4 of the 6 attributes defining this dimension are related exclusively to the early definition stage of the project, while only two relate to the other stages. These are “Fluctuations in materials cost” and “Attitude of project team towards material management”. The second attribute is also very important in the definition stage since the attitude of the client and the project team towards material management at the early stage has marked effect on the achievement of the project goal. Attitudes of the client and project team towards material management are very important. Fluctuation in materials cost is another variable that load in the first sector. Materials could be bulk purchased, payment and procedure for fluctuation payment or non-payment incorporated early in planning at conceptual stage. The second factor identified as “cost effects of materials variation, delays and uneconomic material specification in design” is defined by 5 variables, 2 of which load positive while 3 load negative on the factor, 4 variables have factor loadings exceeding 0.5000 while 1 variable loaded less than 0.5000. These variables include; frequent change orders, delays, claims minimisation, design economy and design stage cost control. This factor accounts for 12.1% variance explanation with Eigen value of 2.24. Frequent change orders and variations in materials procurement loaded fourth.Factor 2 variation have direct and indirect effect on material wastage. Direct, in that quality of materials, labour and plant are affected or altered indirectly, it has also a disruptive effects on the schedule which further affect cost. This variable, endemic in the Nigeria public sector construction, has its root in the inadequate scope definition during the conceptual stage and therefore, relate to the factors as described above.

Extracted Variables and their loadings

No of variables L/D per factor

Factor Name

M15 0.64065

MC16

0.58676

M17

0.76118

M18

0.73077

M 19

0.68088

Detailed specification of material requirement & early supply planning.

0.62969

0.76537

0.59939

0.59243

M13

0.51608

M14

0.68307

variations on quality specifications of materials

0.76067

0.53492

0.60394

0.67423

Interest rates on loan for material supply & efficient control on use.

M11

0.57173

M12

0.76432

Initial material cost estimating errors

0.61636

M10

0.57842

Unforeseen circumstances & bribery & corruption

Table 4 A – Public Sector factor Analysis

Source: Computer Analysis of the study

Results of Private Sector material subsystem factor analysis

In the private sector materials subsystem, 5 factors accounted for 62% of the variance explanations in the total data input extracted. For details of their factor loadings, Eigenvalue of proportion of variance explanation per factor, greater proportion of variance is therefore accounted for by the factors in the private sector than that in the public sector construct5ion.

The Dominant factor, one, explains 33% of the variance as against 27.7% in the public sector. But unlike the public sector, which has 10 variables, this factor has 16 variables loaded on it out of the 19 variables. The public and private sectors have 10 common variables loaded on the dominant factors. Material planning during design stage loading higher in the private sector shows the importance of this variable in this sector. Effective material planning at an early stage is a pre requisite to staying within budget once all the factors affecting cost during execution stage will be taken into account and provisions made for them. There is however, tendency of project team members to deliberately underestimate the material content of a project in order to get a go ahead approval from the authorities as a quotation strategy. From the private sector factor analysis, the second factor has three variables loading on it, 2 negatively and one positively. The negatively loading variables are “frequent change orders/variations of materials with its financial implications” and “construction delays” based on unavailability of ordered materials. The positively loading variable is “material planning and control during design stage”.

Table 4B– Private Sector Factor Analysis

Factors

Extracted variables and their loadings

No of variables L/D per factor

Factor Name

0.79724

0.57957

0.56280

M10

0.62932

M11

0.53132

M12

0.56207

Systematic materials procurement and control procedure

M15

0.69186

M17

0.71451

M18

0.57367

M19

0.77705

Detailed scope definition of material requirements & early design cost planning for material shortage

0.68853

0.83431

0.80075

MC9

0.52054

Cost effects of fluctuations, delays and variations in the use of materials

0.55708

MC13

0.75255

M14

0.53159

Poor material inventory control

0.57955

M16

0.66652

Weather effect on materials

Source: Computer Analysis of the study

The first part of table shows the comparison between the public construction sectors in the terms of the principal loadings of various variables. The 10 variables common to both sectors are loadings on factor 1, which show that the loadings are generally similar in 14 out of 19 variables. The second factor is defined by 6 variables, one loading very high and the other 5 moderately high. The variables that load highest are fluctuations in materials labour and plant costs (inflation). The variable is a very significant factor causing materials constrains in the public sector construction. The next highly loading variable is inadequate planning followed by frequent change orders and variations with their financial implications. Construction delays and inadequate or incomplete design have approximately equal loading 0.59939 and 0.59243 respectively. The variable that is least loaded on this factor is the critical and crucial issues that will affect materials supply and use. Factor 2 is therefore termed “inflation, variations and poor planning”. Comparing this with corresponding factor 2 (principal factors), 5 variables are common to both factors. Factor 3 has four variables loading on it against 2 variables loading on factor 3 using principal factors. The four variables include initial material cost estimating errors, attitude towards material wastage by project personnel, ambiguous materials specifications during design and interest rates on loan for materials procurement. The variable common to the two factors is high interest rates. This factor is therefore termed “interest rates, attitude, and efficient cost control “The fourth factor is defined by only 2 variables, inadequate established cost control procedure on material procurement. The corresponding factor 4 using principal factors has only one variable loading on it (unforeseen circumstances) thus; there is no common variable between the two factors. The fifth factor is also defined by 2 variables, unforeseen circumstances-likelihood of unexpected events in the employers risk area and bribery and corruption. It is interesting to note that the corresponding factor 5 using principal factors, has bribery and corruption as the only variable loading on it.

CONCLUSION

Material s, I suggest should not be regarded as having been taking care of by cost. The four direct factors of Time, Cost, Quality and Materials management are interwoven, interrelated and should be checked as critical factors that constrain success in any construction project management irrespective of the magnitude of the construction work. We know as project stakeholders that delay in material procurement, inventory practices etc could prevent the commencement of a critical activity and invariably affect cost in all its ramifications. In a long run, health implications of a construction material may affect the value of a constructed property like the use of asbestos material in roofing and ceiling. Also, the inability of analyzing weather implications of some local and imported materials will definitely affect the maintenance of the constructed structure. Some materials expire during the implementation process of the construction project and the replacement will definitely affect construction time, cost and quality of work.

RECOMENDATIONS

Materials specification and analysis should be seen as a significant index in appraising project proposals. There should be no ambiguity in material specification in project design especially for complex prosals. Project stakeholders should see material factors as part of direct factors that must be watched carefully for project implementation to succed. The result of this analysis of materials factors will lead to the development of a computer model and an advanced construction project management soft ware that will include material handling and substitution as an efficient instrument in tracking projects alongside with time and cost

Computer based project management techniques should be used in analysing cost schedules, tracking and smoothing of activities during project executions.

A project manager should be appointed early enough in the project life cycle to handle the management from inception to completion. This project manager, in conjunction with the design team members should define the scope of the works in detail in terms of material alternatives.

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