Challenges of construction industries in developing countries. Management of human resource in construction industry. Nigerias current infrastructure base according to nigeria national bureau of statistics, construction accounted for 1. This is practically due to the rise in prices of steel and oil, caused by the weakening of local currency against the dollar. There is a french dictum when the construction industry prospers everything prospers. Level of local sourcing % of raw materials in nigeria, 19871989. The level of mechanization of construction industry in developed countries is about 6070 per cent, compared to 1520 per cent in indian construction industry times journal of construction and design, dec. Specifically, the objectives which are the premise for achieving the aim are. In the past, the industry has been notoriously slow to adopt new technology, but that trend is starting to change. Delay is one of the major problems in nigeria construction industry. Housing is a major component of the building and construction sector. Nigerian construction industry is dominated by foreign contractors due to the incompetence of the indigenous contractors in handling complex projects. Jun 15, 2018 business 6 problems the construction industry should resolve. This paper examines the threats and opportunities of globalization on building practice in nigeria, by means of available literature, statistics secondary data and expert opinion survey.
A leading food, cement and infrastructure conglomerate, bua group, has announced the acquisition of majority stake in p. Nigeria limited one of the largest construction, engineering and mining companies in nigeria. Job security is not always guaranteed in construction industry. The problems of construction industry in nigeria are bane of her socioeconomic development. However, subcontractor related problems are still quoted as one of the main risk of construction project globally 9, 1723. Escalation of construction industry is of imperative for all regions of national and international economy, as well as everyone involved in the industry like contractors, workers, financiers, architects, engineers etc. May 12, 2017 the nigerian construction industry is ripe with opportunities as we have previously discussed here. Health and safety challenges on construction sites of bauchi. Department of quantity surveying, the federal polytechnic, ado ekiti. Some industries now obtain raw materials locally within nigeria. The aim of the paper is to investigate the causes of delay in nigeria construction industry. Comparative study of problems facing small building contractors.
Another cause of corruption in the construction industry is quackery. However, there are still some problems that it needs to work on for improvements. Problems of construction industry in nigeria from research and experience, the following have been identified as prime factors affecting the construction industry growth in nigeria, namely. The study identified challenges such as lack of synergy, material shortage, unethical practices, unstable price of materials, project delays, and. Pdf challenges of the nigerian construction industry. Data were sourced from 20 out of 31 reputable construction firms with operationalregional administrative offices in port harcourt, the rivers state capital. Jan 19, 2018 several industry surveys and reports forecast continued growth in the construction industry. Problems and prospects of construction industry in nigeria. See the problems and prospects of construction industry in nigeria. The size of the nigerian construction industry relatively small as compared to other sectors of the economy. For instance, the level of local sourcing of materials in selected industrial sectors between 1987 and 1989 is shown in table 2. Jul 09, 2015 africa is facing challenges in the construction industry despite it being the fastest developing continent and the construction industry is an area of focus and has been drawing positive attention and top heavy weight companies are now fully focusing in the african construction industry. Depending on the size of the firm, some companies either refuse to dedicate the money or simply dont have the funds to invest in certain technology.
The purpose of this study is to investigate and provide a general overview of the nigerian construction industry, its role in the national economy, the main participants in the industry, the problems that they face, and the opportunities that exist within the industry. With continued growth and positive outlook in the construction industry, what can possible. Nigeria gdp from construction 20102019 data 20202022. Obviously, it is among the few industrial sectors currently. It provides the sinews that the economy requires to create new jobs for. Construction is a development component as well as an agent of social change. The construction industry in nigeria provides the driving force necessary for. Delay lead to many negative effects such as disputes between clients and contractors, increased costs, loss of productivity and revenue, and termination of contract. Review of subcontracting practice in construction industry. Nigeria is blessed with abundance of natural gas, petroleum, tin, iron ore, coal, limestone, niobium, lead, zinc, arable land, etc.
Gdp from construction in nigeria increased to 671110. Nigeria cement production, consumption and capacity million tons 71 chart 4. Construction industry problems table 1 presents a list of the most frequently cited problems of the construction industry identified from the literature. As these problems become more at the forefront of the global agenda, they will have to make changes to avoid negative attitudes from the public. Regardless, there is still a general sense of optimism. Top 10 issues affecting nigeria real estate industry. There is lack of accurate data of construction industries in nigeria. The building and construction industry is a fast growing sector and one of the most important industries in the nigerian economy. Challenges of building information modelling implementation.
Pdf problems of construction industry in nigeria okpor. Findings revealed that the prominent causes of buildability problems were insufficient data and. Africa is facing challenges in the construction industry despite it being the fastest developing continent and the construction industry is an area of focus and has been drawing positive attention and top heavy weight companies are now fully focusing in the african construction industry. Dec 08, 2016 the construction industry continues to face issues combatting their adverse effect on the environment as they produce 2540% of the worlds carbon emissions. In fact, nigeria is the leading exporter of oil in africa today and one of the leading oil exporters in the world. Poor planning in the construction industry has led to a series of problems in the past and are still causing even more. Pdf assessing the characteristics of nigerian construction. The problem of delays in the construction industry is a global phenomenon. The construction industry plays an important role in the economic and social development of nations. Construction industry problems current level of severity. Greed on the part of the contractor who wants to make too much profit at the expense of quality. In fact, nigeria is the leading exporter of oil in africa today and one of the leading oil exporters in the world the 6th leading oil exporter in the world today. However, these opportunities are not without their own share of challenges, so in this post we will be looking at a couple of these challenges in nigerias construction industry. Another common challenge of nigeria s construction industry is poor quality control.
Of the 18 variables considered to constitute the most serious problems, which occur all the time, 17 variables were related to the business environment of the construction industry. Quacks thrive in the construction industry of nigeria, and their main. The construction industry is a very significant part of nigeria economy. The nigerian construction industry output in term of quality, time and cost has not been satisfactory.
The slow pace of mechanization of construction industry in developing countries can be attributed to the high investment and low. There are a number of challenges the construction industry faces as a whole. Market share of nigerian major cement manufacturers 72 chart 4. Construction delay in nigeria new scholarlink research. This study addressed issues bothering on incessant construction project stoppages or abandonment in nigeria, with a view to identifying the critical causal variables. The nigerian construction industry is ripe with opportunities as we have previously discussed here. The construction industry has been identified with the highest occurrence rate of accidents compared to any other industry olatunji et al. It has been researched, that delay is a major setback in the construction industry in nigeria. These are areas where the building and construction sector is indispensable. The building and construction sector has been relevant in the development of the nigerian economy. These problems are well known and for the purposes of brevity are grouped under nine generic headings in the following discussion. To identify the main factors affecting construction cost in nigeria. The construction industry is all who plan, develop, produce, design, build, alter or maintain the built environment and includes manufacturers and suppliers of construction materials, clients, contractors, consultants and end users of facilities. The time and cost overrun factors are directly and indirectly linked to construction delay.
M olayiwola, o adeleye department of urban regional planning obafemi awolowo university ileife nigeria c l ogunshakin department of architecture obafemi awolowo university ileife nigeria keywords. Comparison of production cost usd per tonne of cement 72 chart 4. Construction industry is one of the largest single industries that contribute greatly to the development of nation including akure. This contribution to gdp is meager in comparison with other developing countries, such as. Challenges, indigenous contractors, management, nigeria, participation.
Twentyseven 27 of the returned questionnaires were administered at a conference. The construction industry in nigeria is characterized with problems which impair the standard of construction and which, according to adenike 2006, grema 2006 and bamisile 2004, are often hinged on quality of materials and workmanship and can be controlled by proper use of the. Escalation of construction industry is of imperative for all regions of national and international economy, as well as everyone involved in the industry like contractors, workers, financiers, architects, engineers etc 22. The construction industry performance is affected by national economies navon, 2005. Nigerian construction industry, more than other industries, is closely linked.
Fiscal challenges in the construction sector in nigeria. This paper has mainly focused on human resources management in the construction industry. Construction industry and agrees with ayodele 2010 who opined that contractor for one reason or the other tend to maximize profit for selfish reasons. In the nigerian construction industry, small sized contractors have become a player perceived as the key to nigerias economic growth, poverty alleviation and. Top issues facing the construction industry in 2018. There are a number of reasons for prevailing challenge. Fiscal challenges in the construction sector in nigeria is any relief in sight. Introduction the construction industry is the sector of national economy engaged in the preparation of land and construction, alteration and repair of buildings, structures bridges, flyovers, etc and other real property. The high operating costs obtainable in the construction industry which result in low profit margins has also created tax challenges for the companies as they have been unable to fully utilize opportunities for relief available under the provisions of the tax laws.
Housing, development plan, housing quality, housing quantity and housing finance. General overview of the nigerian construction industry. Top 5 issues facing the construction industry in 2017. Some insights for the growth strategies of the construction industry in the. Construction managers, management challenges, skills, strategies 1. Construction industry in nigeria is faced with a lot of problems, among which is delay in project execution. Projects embarked on are often poorly executed in terms of quality assurance. Construction industry and its constraints in nigeria. The business environment of the construction industry in nigeria. Architects, builders, engineers and quantity surveyors who were managing construction projects at a senior cadre level in all categories of construction firms duly registered with the corporate affairs commission in nigeria.
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