1.1 Introduction
Construction is the world's largest and most challenging industry. The industry is highly a dynamic sector and plays a very important role in the development of a country. However, construction industry, faces chronic problems such as poor productivity, poor performance of time and cost etc, as reported only 37.2% of projects were completed within their predetermined cost. This was as a result of lack of investigation on construction labour productivity and cost performance. The construction industry is one of the backbone of the economy of countries (Cheung, Lam, Leun & wan, 2002). According to Oladapo (2003), describes the construction industry in Nigeria as a regulator of the economy of the nation. In this respect, the importance of a healthy construction industry in such countries is beyond doubt.
This chapter will address the background information that motivated this study, the challenges that prompted it, its aim, and its objectives as a preface to subsequent sections of the study. Additional factors include the study's significance, scope, limitations, research questions and hypotheses, and the definition of technical terms.
1.2 Background of Study
Diverse construction process disciplines cannot agree upon a common definition when asked to define "design error." Based on different definitions of "design" and "error," we conclude that a design error is a deviation from a drawing or specification, including omissions and ambiguities. Depending on which discipline you address, the owner, the designer, or the contractor, there will be a common understanding surrounded by varied conclusions, "a mistake." Managing the all too common cost and schedule overruns that affect the construction industry is one of the most significant challenges facing management today (Diekmann and Thrush, 1986). The gravity of this error must be taken into account to determine its impact on the project's overall outcome.
The owner, designer and contractor all have different interests in, or uses for the design of a facility. But what they do share is the commitment to complete the project safely and within a given budget and completion time. There are many initiatives being conducted to control the growth of cost and schedule within the construction industry.
The major issue is “accuracy of the drawings,” or the number of design errors, omissions and ambiguities within the plans and specifications that affect the quality of the facility. Inadequacies in the plans and specifications are the major causes of changes to the contract So much emphasis is placed on the issue of time and cost that quality takes a back seat.
The quality of the project depends on the conformance of the objectives and requirements from the owner. An informative quality management technique will provide an agreement to procedures and definitions among the principle parties for the project. Since design errors have an impact on the outcome of the effectiveness of the contractor’s effort on the project it is essential that all parties determine what the definition of a design error should be. When asked to define design error, not all disciplines in the construction process agree on a common definition. From the basic definition of design and error it can be determined that a design error is a deviation from a drawing or specification. It is the seriousness of this error that must be considered to determine its consequences on the overall outcome of the project.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to investigate how design errors can affect the initial cost of a project.
1.3 Statement of Problems
Investigation revealed that design errors indicate the total design in-effectiveness of a project. Major design quality problems occur during construction when errors, omissions and ambiguities in plans and specifications become evident (Davis and Ledbetter, 1987). This statement directs that the inadequacies in the plans and specifications are the major causes of changes to the contract. There have been extreme examples of design errors such as numerous building collapse in Nigeria projects that have wrought disaster after the construction are completed.
These are examples of design errors that escaped the close scrutiny of all parties. One or two major errors that can be corrected with only cost considerations and little effect on the schedule can impact projects. The projects that really suffer are those with many small errors (design, rework or change of scope) which when finally added up cause major impacts on the cost and schedule growth. Through Davis and Ledbetters research it was determined that “accuracy of the design documents” was the most critical of the criteria used in the initial evaluation of design effectiveness.
This accuracy was further described as the concern for the frequency and impact of errors in the specifications and drawings. This is due to the fact that the drawings and specifications are the most “readily identifiable outputs of the design process.” It is ever more important that the quality control of designs be addressed during the planning phase and closely monitored during the construction phase.
1.4 Aim and Objectives of Study
The aim of the study is to investigate how design errors can affect the initial cost of a project. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the contributing factors to design errors in Nigeria;
- To determine what constitutes a design error; and
- To examine how these factors can affect initial cost and growth of a project.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What makes or contributes to a design error?
- What are the factors that lead to design errors?
- What effect can design errors have on initial cost and growth of a project?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant relationship between design error and initial project cost
- H1: There is significant relationship between design error and initial project cost
1.7 Significance of Study
This study gives a clear insight into the various ways in which contractors in the construction companies in Nigeria can maximize profits and reduce initial cost through effective and efficient contract planning and management.
The study also gives a clear insight into the various effects of design errors on the cost of a project. The findings and recommendations of the researcher will help in building a strong and better project management guideline for contractors in Nigeria.
1.8 Scope of Study
This research focuses mainly on the investigation of design errors on initial cost of a project. Results and recommendations may not be used to generalize other construction companies in Nigeria, as the researcher could not cover a wider scope due to financial and time constraints.
Based on the findings of this study other possible researchable areas may include studies on the various effects of other aspects of contracts such as contract laws in Nigeria and contract management and control.
1.9 Limitations of the Study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- 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).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Design Error:
from the evaluation above a simple definition of design error is “a deviation from the plans and specifications.” It is not the intention of this definition to include any cost or schedule growth or insinuate its root causes or legal responsibility.
It is the responsibility of the owner, designer and contractor to establish the criteria in order to make a reasonable determination for responsibility. The survey shows a common theme, that of a mistake or error in the design. The survey also indicates several reasons why design errors exist and who cause them. This provides evidence that there is not a concise definition within the construction industry.
Contract:
Erikson (2002) defined Contract as an agreement that creates an obligation binding upon the parties thereto.
Contract Planning:
According to Simmons (2007), Contract planning is the process of systematically and efficiently managing contract creation, execution and analysis for maximizing operational and financial performance and minimizing risk.
Contractor:
It is a general contractor, organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or other facility.
Profit:
Tucy (2008) defined profit as the difference between the purchase price and the costs of bringing to market
Initial Cost:
Initial costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. Put simply, it is the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on many factors such as accounting, tax laws, and materiality.
