Management of material waste and cost overrun in the Nigerian construction industry
- Authors: Saidu, Ibrahim
- Date: 2016
- Subjects: Construction industry -- Materials management -- Nigeria , Construction industry -- Nigeria -- Management
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/3792 , vital:20463
- Description: While wastage of materials has become a serious problem requiring urgent attention in the Nigerian Construction Industry, cost overrun is a problem, which affects 90 percent of the completed projects in the world; the argument on how to reduce/eliminate cost overrun has been on-going for the past 70 years; as the on-site wastage of materials leads to increases in the final project cost. Studies from different parts of the world have shown that construction-material waste represents a relatively large percentage of the production costs. Consequently, as a result of low levels of awareness, the Nigerian construction industry pays little attention to the effects of generated material waste on cost overruns. Thus, this research aimed to investigate the relationship between material waste and cost overrun in the Nigerian construction industry. A comprehensive review of the related literature revealed that all material waste causes are related to cost overrun causes at both pre-contract and post-contract stages of a project; but not vice versa. The mixed method (quantitative and qualitative) approach that is rooted in the positivist paradigm was adopted for this study. Abuja, the federal capital territory of Nigeria was the selected geographical scope of this research, out of which thirty-one (31) construction projects were purposeful selected (projects to the value of 100 million Rand/1.6 billion Naira and above).The research instrument was an interview guide used in conjunction with a tick box. Other sources of data included field investigation (measurement of onsite material waste) and the collection of archival records from bills of quantities, project records, and specifications. Analyses of the findings lead to the conclusion that a relationship exists between material waste and cost overrun; at the pre-contract and at the post-contract stages of a project. The implication is that an increase in material wastage on-site leads to a corresponding increase in the amount of cost overrun, regardless of the percentage allowance for material waste in the process of bill preparation. The study also concluded that the average percentage contribution of material waste to project-cost overruns is four (4) percent. Material-waste sources, causes, and control measures were found to have significant effects (very high, high, medium, low, and very low), in causing or minimising cost overruns at both pre-contract and post-contract stages of projects. The research has developed a conceptual model for the management of material waste and cost overruns in the construction industry based on the results and informed by the theoretical framework. The research has also developed a mathematical model for quantifying the amount of material waste to be generated by a project; as well as a mathematical equation for the effective management of material waste and cost overrun for projects. The study has achieved its aim of establishing an understanding of the issues leading to the relationship between material waste and cost overruns, as well as their management in the Nigerian construction industry. The study recommends that the management of material waste and cost overrun should be revised, based on the findings of this research and included as part of the procurement process. The mathematical models for quantification of onsite material waste, and the mathematical equation for managing material waste and cost overruns developed in the study, could be usefully adopted to improve management of material waste and cost overrun in the Nigerian construction industry.
- Full Text:
- Date Issued: 2016
Management of material waste and cost overrun in the Nigerian construction industry
- Authors: Saidu, Ibrahim
- Date: 2016
- Subjects: Construction industry -- Materials management -- Nigeria , Construction industry -- Nigeria -- Management
- Language: English
- Type: Thesis , Doctoral , DPhil
- Identifier: http://hdl.handle.net/10948/48937 , vital:41507
- Description: While wastage of materials has become a serious problem requiring urgent attention in the Nigerian Construction Industry, cost overrun is a problem, which affects 90 percent of the completed projects in the world; the argument on how to reduce/eliminate cost overrun has been on-going for the past 70 years; as the on-site wastage of materials leads to increases in the final project cost. Studies from different parts of the world have shown that construction-material waste represents a relatively large percentage of the production costs. Consequently, as a result of low levels of awareness, the Nigerian construction industry pays little attention to the effects of generated material waste on cost overruns. Thus, this research aimed to investigate the relationship between material waste and cost overrun in the Nigerian construction industry. A comprehensive review of the related literature revealed that all material waste causes are related to cost overrun causes at both pre-contract and post-contract stages of a project; but not vice versa. The mixed method (quantitative and qualitative) approach that is rooted in the positivist paradigm was adopted for this study. Abuja, the federal capital territory of Nigeria was the selected geographical scope of this research, out of which thirty-one (31) construction projects were purposeful selected (projects to the value of 100 million Rand/1.6 billion Naira and above).The research instrument was an interview guide used in conjunction with a tick box. Other sources of data included field investigation (measurement of onsite material waste) and the collection of archival records from bills of quantities, project records, and specifications. Analyses of the findings lead to the conclusion that a relationship exists between material waste and cost overrun; at the pre-contract and at the post-contract stages of a project. The implication is that an increase in material wastage on-site leads to a corresponding increase in the amount of cost overrun, regardless of the percentage allowance for material waste in the process of bill preparation. The study also concluded that the average percentage contribution of material waste to project-cost overruns is four (4) percent. Material-waste sources, causes, and control measures were found to have significant effects (very high, high, medium, low, and very low), in causing or minimising cost overruns at both pre-contract and post-contract stages of projects. The research has developed a conceptual model for the management of material waste and cost overruns in the construction industry based on the results and informed by the theoretical framework. The research has also developed a mathematical model for quantifying the amount of material waste to be generated by a project; as well as a mathematical equation for the effective management of material waste and cost overrun for projects. The study has achieved its aim of establishing an understanding of the issues leading to the relationship between material waste and cost overruns, as well as their management in the Nigerian construction industry. The study recommends that the management of material waste and cost overrun should be revised, based on the findings of this research and included as part of the procurement process. The mathematical models for quantification of onsite material waste, and the mathematical equation for managing material waste and cost overruns developed in the study, could be usefully adopted to improve management of material waste and cost overrun in the Nigerian construction industry.
- Full Text:
- Date Issued: 2016
Perceptions on risk management at Walter Sisulu University
- Authors: Qanga, Enathi Jongikhaya
- Date: 2016
- Subjects: Risk management , Walter Sisulu University for Technology & Science
- Language: English
- Type: Thesis , Masters , MTech
- Identifier: http://hdl.handle.net/10948/3802 , vital:20464
- Description: With the rise in the complexity of business transactions and emerging prominence of worldwide corporate governance, companies are required to adhere to certain minimal standards of governance and risk management. Organisations take various kinds of risks depending on their operating environments and the gravity of their organisational needs (risk to a return trade-off). Taking risks can either provide benefits to an organisation or cause problems for it. Given the importance of risk management, studies conducted by universities throughout the world reveal serious concerns. The primary objective of this study was to establish perceptions on risk management at Walter Sisulu University (WSU). The literature review of the study provided a discussion concerning best practice as far as the COSO internal control framework, COSO enterprise risk management framework and key aspects of the Kings III report on risk assessment and risks faced by modern business. The study adopted the quantitative research approach using a case study design. A survey was conducted by distributing questionnaires to a selected sample of, Campus management (Deans), Internal auditing III students, Lecturers in commerce, Head of departments and support service personnel of WSU. A random sampling procedure identified thirty three participants and all the participants completed questionnaires across all campuses at WSU. Graphic presentation from Microsoft excel, inferential and basic descriptive statistics from SPSS were used to analyze and interpret data to generate findings. The study revealed that, all principles for the COSO components on internal control, COSO- ERM and the King III report are regarded to be present at WSU. Respondent perceptions falls within the positive zone being “neutral”, “effective” and “highly effective”. The population score is probably also in the neutral zone indicating a not sure respondent’s perception on whether the component or principle is effective or not effective. The Cronbach’s Alpha was conducted to test the internal reliability and consistency of the data. A Cronbach’s Alpha of summated score of 0.974 was achieved on 84 principles that could contribute to the effectiveness of risk management. The researcher recommends creating a risk-awareness culture throughout WSU rather than a silo approach to risk management. Monitoring on the effectiveness of the system of internal control need greater attention at WSU. In addition, the alignment of risk management to institutional strategy needs to be improved, and the University needs to establish and develop an enterprise-risk management policy (ERMP) and create a platform for further studies on risk management.
- Full Text:
- Date Issued: 2016