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An appraisal and reactivation of abandoned building projects. A case study of construction industries in Lagos state
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This project is on An appraisal and re-activation of abandoned building projects. A case study of construction industries in Lagos state. The construction industry in Nigeria is littered with many billions of naira worth of uncompleted projects in reckless states of abandonment. Many claims and counter claims have been traded as to the cause of this unpleasant situation. Abandoned projects are projects once initiated but stopped due to one reason or the other, this study reveals that these abandoned projects are more in the rural areas than the urban centres of Lagos state. This study is concerned with the identification of the major causes of project abandonment with a view or process of reactivating these abandoned building projects and proffering solutions to obviate and reduce this ugly trend. Causes of abandonment of project include; death of the client, fraud, lack of cash flow forecast e.t.c. Implication of such projects are; social, economic and physical implications some of the proffered recommendation include regular assessment of work in progress, offending contractors should be blacklisted, the procedure of awarding contracts should be devoid of sentiments of favouritism amongst others. The consequence of abandonment of building projects were highlighted to include: tying down of funds and land spaces, extra cost involved in completion of such projects, continued scarcity of residential accommodation, defacing the landscape and harbouring people of deviant behaviour, reduction in the Gross Domestic Product G.D.P and the associated stigma. Suggestion were proffered as to how abandoned of projects could be minimised and how some of the abandoned projects could be revived and completed. Prominent among such suggestion include: adequate planning of projects, proper cost planning/financial appraisal of project, proper site investigations, selection of reputable contractors/manager to oversee project execution.
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An appraisal and re-activation of abandoned building projects. A case study of construction industries in Lagos state. The word abandonment connotes “to give up, especially without finishing” to give up, to leave; depart from or forsake” (Hornby 1974). Abandoned buildings project are therefore projects which have been started and thereafter left without completion to serve the purpose of its initial conception. This investigation or case study into abandoned and re-activation of building projects is limited to the individual and private housing development. Much have been written about abandoned public sector projects some of which have attracted several inquiries, probes and suits.
A number of factors spanning from change of government, privatisation, lack of planning, changes in government policies, effect of market trends, liquidity problems and insolvency to cash flow problems have been identify as causes of abandonment while some other causes are peculiar to private development.
These abandoned housing projects are at various stage of non-completion such as damp proof course level, window cill, lintel level, deck (slabs) or roof level, finishing level e.t.c. The building considered in this write up are those that have been abandoned for over five years. Six uncompleted building in Alimosho and Agege local government areas in Lagos state, Nigeria were investigated. The buildings have been grouped under three periods on relation to the time of abandonment. These periods are:
- those started before and during the creation of Alimosho local government.
- those started but abandoned between 1999-2002
- those started but abandoned between 2003-2005
Statistics of the abandoned project over the given period of time are given below:
Table 1.1: Percentage of private sectors housing projects started but abandoned for the giving periods to date (investigation was carried out between September 1998 to February 1999)
|Project started before 1970||Projects started between 1970 and 1980||Project started between 1981 and 1990|
1.1 Need for the Study
According to Builder Jonathan Iruobe (MNIOB) 2001, defines Abandoned project as project once initiated but stopped due to one reason or the other. The construction industry in Nigeria is littered with so many billion of naira worth of uncompleted projects in reckless states of abandonment ranging from roads, public and private buildings. Therefore the need for the study is concerned with the identification of the major cause of project abandonment with a view of proffering solution to re-activate an abandoned building project, in other to obviate or reduce this ugly trend. And also tends to re-build more confidence on people mind towards construction industry since some constructions are found of abandoned projects due to lack of funds.
1.2 Objectives of the Study
The aims of this study are to address the issue of abandoned housing projects with particular reference to Lagos state using application of the neoclassical and institutional analysis. This is because the housing provision system in Nigeria is governed by various institutions such as regulatory policies, planning system, market aspect, financial institution and so on.
Therefore, in other to address the issue of abandoned housing project in Nigeria, one should take into account the perspectives of the market mechanism as well as the institutional aspects. This is because the housing sector as a whole relates to market mechanism based on the demand and supply. While the existence of abandoned project may be caused by the market failure and or the institutional aspects such as formal and informal institutions. The interactions between markets and institution may have caused the existence of abandoned projects.
In achieving the aim of the study, the following objectives are set:
- understand the abandoned project in Nigeria
- identify the institutions affecting housing delivery in Nigeria.
- examine the interrelationship between market and project abandonment.
- to study the impact of abandoned project on the market mechanism
- policy recommendation to avoid the problems of abandoned project.
1.3 Scope and Limitation of Study
The research work shall focus primarily on the abandoned housing/building projects under the category of projects that have been identified as having potential to be revived and those which have been categorised as projects totally abandoned with no chance of revival. To this ends Lagos state has been chosen as a case study. The finding of the study will go a long way in helping most contractors or construction companies to reduce the ugly trend of abandoning some project and also will make clients to understand better reason for the abandonment.
1.4 Significance of the Study
Re-activation of abandoned building is important for better understanding of the construction industry in term of function, finance, improvement in their construction and a very much closer co-ordination of the work of consultant and contractors in construction industry.
The techniques of re-activating an abandoned projects must be well understood by the contractor for effective management and performance of the project. It is anticipated that result or outcome of this study will help the construction industry or contractors to know to handle building projects effectively in order to reduce the ugly trend of abandonment.
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