CAUSES OF CONSTRUCTION PROJECT FAILURES AND ABANDONMENT IN NIGERIA

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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF STUDY

Abandoned projects and construction failure including building and other civil
engineering infrastructure development project like houses, churches, schools, roads,
bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria. Osemenan
(1987) reported that Nigeria has become the “world’s junk-yard of abandoned and
failed projects worth billions of naira and it is greatly unthinkable that Nigeria blessed
with so great potentials in the building and construction industry can experience such

magnitude of project failure and abandonment. According to another report by
Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging
to the Federal Government of Nigeria with an estimated cost of above N 300 billion
which will take 30 years to complete at the present execution capacity of government,
also according to him this issue of abandonment and construction project failure is
been left without adequate attention for too long which is now having a multiplier
effect on the construction industry in particular and the national economy as a whole.
The building and construction industry plays a very dominant role in the economy of
any nation. A healthy economy usually experience an increase in building and
construction activities, but in a depressed economy, the incidence of project
abandonment and construction failures tends to be more prevalent. Akindoyeni (1989)
qualitatively reasoned that some of the causes of project abandonment and
construction failure in Nigeria are deaths of client, inability of client to attract fund
and lack of good planning.

The abandonment of development projects is the act of discontinuing any activities or
maintenance works on such development project within a time frame of the contract
agreement and with no intention of returning back to the development (Spelman,
1993). Similarly, O’Flaherty (1993) while reflecting on property development
projects suggest that it is when an owner or developer is ceasing to provide the
required maintenance management to a developed property. There could also be
construction failure due to improper planning.

However, real property development projects being a capital intensive undertaking
should be critically analyzed to ascertain its feasibility and viability before embarking
on it. But, on several occasions and as it had been observed, governments, contractors

and agencies have abandoned development projects mid-way into construction and
completion.

The causes and effects of these development projects abandonments and construction
failure are not just peculiar to a particular reason rather cut across several reasons
(Ayodele and Alabi, 2011), and as well as creating a total dwindling effects on the
values of developed properties located close and within the vicinity. The expected
prominence of any earmarked development projects is to be completed, while at the
same time, adding values to the built environment aesthetics. Although, development
projects are temporary endeavors undertaken to create a unique product and services
with a defined beginning and ending date (Gardner, 2005). The accomplishment of
such purposes should be realized at all times otherwise needless of such development
(Gardner, 2005). The development projects specific in the study framework is
infrastructural projects (such as; house, electricity, road, schools, and drainage).
However, the study purpose is to investigate and assess the causes and effects of
development projects abandonment  and construction failure in Nigeria.

1.2   STATEMENT OF THE PROBLEM

The unceasing abandonment and failure of development projects is so shocking in the
developing countries such that Nigerian has remained one of the countries in such
difficulty (Ayodele and Alabi, 2011; Kotangora, 1993; Osemenan, 1987). Therefore,
the significance that the incessant abandonment of projects and construction failure
would bring several effects on the aesthetics of the environment, real properties and
its values and the economy cannot be overemphasized since some of the development
projects provide the basic services that should meet the needs of the people. However,

this study will examine the causes of construction project failure and abandonments in
Nigeria.

1.3   OBJECTIVES OF THE STUDY

The following are the objectives of this study:

1.  To examine the causes of construction project failure and abandonments in
Nigeria.

2.  To examine the effect of construction project failure and abandonments in Nigeria.

3.  To determine the solution to the problem of construction project failure and
abandonments in Nigeria.

1.4   RESEARCH QUESTIONS

1.  What are the causes of construction project failure and abandonments in Nigeria?

2.  What is the effect of construction project failure and abandonments in Nigeria?

3.  What is the solution to the problem of construction project failure and
abandonments in Nigeria?

1.6   SIGNIFICANCE OF THE STUDY

The following are the significance of this study:

1.  This study will educate the general public and the experts in the building industry
on the causes of construction project failure and abandonments in Nigeria with a view
of proffering solution to the problem.

2.  This research will also serve as a resource base to other scholars and researchers
interested in carrying out further research in this field subsequently, if applied will go
to an extent to provide new explanation to the topic.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This study on causes of construction project failure and abandonments in Nigeria will
cover the issues of abandoned projects, failed project and all other abandoned
infrastructural facilities.

1.8 LIMITATION OF STUDY

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).

Time constraint- The researcher will simultaneously engage in this study with other
academic work. This consequently will cut down on the time devoted for the research
work.

1.9 DEFINITION OF KEYWORDS
ABANDONMENT is the act of giving up on an idea or stopping an activity with no
intention of returning to it (Oxford, 2005).
PROJECT is a unique Endeavour to produce a set of deliverables within a clearly
specified time, cost and quality constraints (PMG, 2003). A project is a series of tasks,
which has a start, middle and an end. Therefore, the abandonment of building project
can be defined as an act of giving up on or stopping a building project with no
intention of returning to it.