1.1 Introduction
Construction project planning is an essential element in the management and execution of construction projects which involves the definition of work tasks and their interactions, as well as the assessment of required resources and expected activity durations. Monitoring the performance of the contractor regularly is a very important part of road construction. The monitoring system differs among the road authorities. However, a monitoring system is necessary to maintain the quality of work and also to record the data for future Research and Development in the road authorities. The construction industry is a crucial sector that plays a vital role in the economic growth and development of many countries. Construction projects are complex and often involve a range of stakeholders, including owners, designers, contractors, suppliers, and regulatory bodies.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of technical terms.
1.2 Background of Study
As the construction industry significantly expands, the role of the private sector has changed from the simple execution of works to the management and conservation of road assets. In order to be entitled to the monthly payment for maintenance services, the contractors must ensure that the roads under contract comply with the service quality levels which have been specified in the bidding document. It is possible that during some months, they will have to carry out a rather large amount of physical works in order to comply with the required service levels and very little work during other months. Yet their monthly payment remains the same as long as the required service levels are complied with (The World Bank, 2004).
Contract planning according to Simmons (2007) refers to the process of systematically and efficiently managing contract creation, execution and analysis for maximizing operational and financial performance and minimizing risk. Contract planning processes are the activities/steps taken during contract planning, this is divided into two (2) phases PMT (2006) which are the pre-contract planning and post-contract planning on clients perspective and contractors perspective, but in the cause of this project we will be looking at the clients perspective, The research literatures in construction project management is replete with concerns about poor or ineffective contract planning (Idoro, 2009; Idoro, 2012; & Dalibi, 2016). Most countries in the Middle-East and some part of Africa do not utilize project planning and management techniques in the delivery of construction projects (Sayegh, 2008; Laryea & Hughes, 2009).
Oyewobi and Ijimdiya (2020) pointed out that the regulatory framework in the Nigerian construction industry is weak and ineffective, which has led to non-compliance issues among construction firms. Moreover, scholars have also highlighted the challenges faced by regulatory agencies in enforcing compliance in the construction industry.
Ashworth, Hogg, and Higgs (2013) described the construction industry as one of the most important sectors of the economy, which integrates a wide variety of skilled and unskilled professionals. These professionals engage in the provision of goods and services ranging from construction, alteration, refurbishment to repairs of building and civil engineering structures. All these professionals work together under various types of contractual agreements to actualize the client's brief and deliver the project. Each construction project is unique and has its main objectives are outlined by the client based on project circumstances. Construction projects, like all others, are not risks free and thereby can result to financial loss. Construction risks are events that generally influence any or all of the project objectives. Risk events could either be positive in terms of opportunities or negative in terms of threats to either or the entire project objectives (Hillson 2002).
Furthermore, the industry faces challenges related to the regulatory framework. It is regulated by various government agencies, but the regulatory framework is often ineffective and lacks clarity, leading to a lack of enforcement and compliance issues (Olanrewaju et al., 2015; Oyewobi et al., 2020). Olanrewaju and Ogunsanmi (2015) noted that the regulatory framework in Nigeria's construction industry is fragmented and has led to overlapping regulatory roles. They argued that the lack of coordination between the various regulatory agencies has resulted in a duplication of efforts and increased the cost of compliance for construction firms.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Effectiveness Planning and Control in Construction Industry.
1.3 Statement of Problems
Investigation revealed that the rate at which construction project delays, failures, cost overruns and abandonment are experienced on many projects handled by indigenous building contractors and clients in Imo State Nigeria is quite alarming (Obi, 2014). Projects that do not deliver the required value they promise and of course do not realize their original objectives are all failed projects, in other words for a project to fail one or all of these component time, cost and quality have failed (Frank 2011).
1.4 Aim and Objectives of Study
The aim of the study is to evaluate the Effectiveness Planning and Control in Construction Industry in Nigeria using Julius Berger Construction Company Plc as a case study. In achieving this aim, the following specific objectives were laid out as follows:
- To determine contract planning and control practices applied in the construction industry;
- To assess awareness and usage of contract planning practices in the construction industry;
- To examine the factors affecting contract planning practices; and
- To evaluate the effect of contract planning practices to construction project performance.
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 are the contract planning and control practices applied in the construction industry?
- What is the level of awareness and usage of contract planning practices in the construction industry?
- What are the factors affecting contract planning practices on construction projects?
- What are the effects of contract planning practices to construction projects performance?
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 are no significant factors inhibiting contract planning and control practices to construction project performance
- H1: There are significant factors inhibiting contract planning and control practices to construction project performance
1.7 Significance of Study
This study gave insights to understanding the importance of contract planning in the construction industry. It may also have some contribution to the formulation of appropriate policies relating to the performance of road construction projects. These policies will help the concerned bodies dealing in road construction such as Nigeria National Roads Authority, Ministry of Works and Transport, Local Government road construction committees at the district, and private organizations such as CAIIP to focus on the root causes of incomplete road projects than giving attention to the observed problems. In addition to this, the policies may facilitate further studies on the problem since there is little relevant and comprehensive data on the study in Nigeria.
Finally, the information obtained during the study will ultimately build on the existing body of knowledge to pave way for further research in the field of contract planning and performance in academia.
1.8 Scope of Study
The scope of the research is focused on the Effectiveness Planning and Control in Construction Industry in Nigeria using Julius Berger Construction Company Plc as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- 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.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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).
1.10 Definition of Terms
Monitoring Intensity: This is measurable concentration of regular observation and recording of activities taking place in a project.
Project Performance: This is an ongoing review of the efficiency and importance of a given project. It is used as a means of understanding and improving company, department and personnel performance.
