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IMPACT OF GLOBAL NAVIGATION SATELLITE SYSTEMS(GNSS) ON LAND SURVEYING
Abstract
Global Navigation Satellite Systems (GNSS) have revolutionized the field of land surveying, offering unprecedented accuracy, efficiency, and versatility in geospatial data collection. This study examines the impact of GNSS technology on land surveying practices, focusing on its applications, benefits, and challenges. GNSS, which includes systems such as GPS (USA), GLONASS (Russia), Galileo (EU), and BeiDou (China), enables real-time positioning with centimeter-level accuracy, transforming traditional surveying methods. By leveraging satellite signals, GNSS eliminates the need for line-of-sight measurements, reduces fieldwork time, and enhances data reliability.
The study explores the applications of GNSS in various land surveying tasks, including cadastral surveys, topographic mapping, construction layout, and deformation monitoring. It highlights the technology’s ability to improve productivity, reduce costs, and provide precise geospatial data for decision-making. However, the study also identifies challenges such as signal obstruction in urban canyons, reliance on satellite availability, and the need for skilled personnel to operate advanced GNSS equipment.
Through a review of case studies and empirical data, this research demonstrates that GNSS has significantly enhanced the accuracy and efficiency of land surveying, making it an indispensable tool for modern geospatial professionals. The findings underscore the importance of integrating GNSS with other technologies, such as Geographic Information Systems (GIS) and Remote Sensing, to address its limitations and maximize its potential. The study concludes with recommendations for adopting best practices, investing in training, and leveraging advancements in GNSS technology to further improve land surveying outcomes. By embracing GNSS, the surveying industry can achieve greater precision, efficiency, and sustainability in geospatial data collection and analysis.
Chapter One: Introduction
1.1 Background to the Study
Land surveying is a critical discipline in geospatial sciences, providing essential data for mapping, construction, urban planning, and environmental management. Traditionally, land surveying relied on techniques such as triangulation, trilateration, and theodolite measurements, which were time-consuming, labor-intensive, and often limited by environmental conditions (Smith et al., 2020). The advent of Global Navigation Satellite Systems (GNSS) has revolutionized the field, offering real-time, high-precision positioning capabilities that have transformed surveying practices (Johnson & Lee, 2019). GNSS, which includes systems like GPS (USA), GLONASS (Russia), Galileo (EU), and BeiDou (China), utilizes satellite signals to determine precise geographic coordinates, eliminating many of the limitations associated with traditional methods (Brown et al., 2021).
The integration of GNSS into land surveying has enabled surveyors to achieve centimeter-level accuracy, reduce fieldwork time, and improve data reliability (Harris et al., 2021). This technology has become indispensable in various applications, including cadastral surveys, topographic mapping, construction layout, and deformation monitoring (Williams et al., 2018). Despite its numerous advantages, the adoption of GNSS in land surveying is not without challenges, such as signal obstruction in urban environments, reliance on satellite availability, and the need for skilled personnel to operate advanced equipment (Taylor et al., 2019).
1.2 Statement of the Problem
Traditional land surveying methods, while effective, are often limited by their reliance on line-of-sight measurements, susceptibility to environmental conditions, and the need for extensive fieldwork (Anderson et al., 2020). These limitations can lead to increased costs, longer project timelines, and reduced accuracy in geospatial data collection. GNSS technology offers a solution to many of these challenges, but its adoption in land surveying has been uneven, particularly in regions with limited access to advanced equipment and training (Hsieh, 2018). Additionally, the impact of GNSS on surveying accuracy, efficiency, and cost-effectiveness has not been thoroughly studied in diverse contexts, leaving gaps in understanding its full potential and limitations (Johnson & Lee, 2019).
This study seeks to address these gaps by examining the impact of GNSS on land surveying practices, focusing on its applications, benefits, and challenges. By exploring the experiences of surveyors and analyzing empirical data, the study aims to provide insights into how GNSS can be effectively integrated into land surveying to enhance accuracy, efficiency, and sustainability.
1.3 Objectives of the Study
The primary objectives of this study are:
To examine the impact of GNSS technology on the accuracy and efficiency of land surveying.
To identify the applications of GNSS in various land surveying tasks, including cadastral surveys, topographic mapping, and construction layout.
To evaluate the benefits and challenges associated with the adoption of GNSS in land surveying.
To provide recommendations for optimizing the use of GNSS in land surveying practices.
1.4 Research Questions
This study is guided by the following research questions:
How does GNSS technology improve the accuracy and efficiency of land surveying?
What are the primary applications of GNSS in land surveying, and how do they compare to traditional methods?
What are the benefits and challenges of adopting GNSS in land surveying?
How can GNSS be effectively integrated into land surveying practices to enhance outcomes?
1.5 Hypotheses
The following hypotheses were formulated to guide the study:
The use of GNSS technology significantly improves the accuracy of land surveying compared to traditional methods.
GNSS technology reduces the time and cost associated with land surveying tasks.
The adoption of GNSS in land surveying presents challenges related to signal obstruction, equipment costs, and the need for skilled personnel.
1.6 Significance of the Study
This study is significant for several reasons. First, it provides empirical evidence on the impact of GNSS technology on land surveying, contributing to the growing body of knowledge in geospatial sciences. Second, the findings can guide surveyors, geospatial professionals, and policymakers in adopting GNSS to improve surveying accuracy, efficiency, and cost-effectiveness. Third, the study highlights the challenges associated with GNSS adoption, offering insights into how these challenges can be addressed through training, investment, and technological advancements. Finally, the study underscores the importance of integrating GNSS with other technologies, such as Geographic Information Systems (GIS) and Remote Sensing, to maximize its potential in land surveying.
1.7 Scope of the Study
This study focuses on the impact of GNSS technology on land surveying practices, with an emphasis on its applications, benefits, and challenges. The research includes a review of case studies and empirical data from diverse contexts, ensuring a comprehensive analysis of GNSS adoption in land surveying. The study is limited to the use of GNSS in land surveying and does not address its applications in other fields, such as navigation or timing.
1.8 Definition of Terms
Global Navigation Satellite Systems (GNSS): A constellation of satellites that provide geospatial positioning and timing data to users worldwide, including systems such as GPS, GLONASS, Galileo, and BeiDou.
Land Surveying: The process of measuring and mapping the Earth’s surface to determine boundaries, topography, and other geospatial features.
Cadastral Survey: A type of land survey used to establish property boundaries and ownership.
Topographic Mapping: The creation of detailed maps that represent the physical features of a landscape, including elevation, vegetation, and water bodies.
Construction Layout: The process of marking the positions of structures and infrastructure on a construction site based on design plans.
This chapter provides the foundation for the study, outlining the background, problem statement, objectives, research questions, hypotheses, significance, scope, and key definitions. The subsequent chapters will delve into the literature review, research methodology, data analysis, and discussion of findings.
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QUANTITY SURVEYING PROJECT TOPICS AND MATERIALS
Cost Management and Estimation
1. The impact of inflation on construction cost estimation.
2. The role of Building Information Modeling (BIM) in cost management.
3. The accuracy of preliminary cost estimates in construction projects.
4. The use of artificial intelligence in construction cost forecasting.
5. The impact of material price fluctuations on project budgets.
6. The role of value engineering in cost optimization.
7. The effectiveness of life cycle costing in construction projects.
8. The impact of labor costs on construction project budgets.
9. The role of quantity surveyors in managing cost overruns.
10. The use of historical data in improving cost estimation accuracy.
________________________________________
Construction Economics and Finance
11. The impact of economic recessions on construction project financing.
12. The role of quantity surveyors in public-private partnership (PPP) projects.
13. The effectiveness of cost-benefit analysis in construction projects.
14. The impact of exchange rate fluctuations on international construction projects.
15. The role of quantity surveyors in managing project cash flow.
16. The use of financial modeling in construction project feasibility studies.
17. The impact of interest rates on construction project financing.
18. The role of quantity surveyors in managing project risks.
19. The effectiveness of alternative financing models in construction.
20. The impact of taxation policies on construction project costs.
________________________________________
Contract Administration and Dispute Resolution
21. The role of quantity surveyors in contract administration.
22. The impact of contract types on project performance.
23. The effectiveness of dispute resolution mechanisms in construction.
24. The role of quantity surveyors in managing claims and variations.
25. The impact of contract clauses on project outcomes.
26. The use of mediation in resolving construction disputes.
27. The role of quantity surveyors in ensuring contract compliance.
28. The impact of delay claims on project timelines and costs.
29. The effectiveness of arbitration in construction dispute resolution.
30. The role of quantity surveyors in managing subcontractor relationships.
________________________________________
Sustainability and Green Building
31. The role of quantity surveyors in promoting sustainable construction.
32. The impact of green building certifications on project costs.
33. The effectiveness of sustainable materials in cost management.
34. The role of quantity surveyors in managing carbon footprints.
35. The impact of energy-efficient designs on construction costs.
36. The use of life cycle assessment in sustainable construction.
37. The role of quantity surveyors in waste management on construction sites.
38. The impact of renewable energy systems on project budgets.
39. The effectiveness of green procurement in construction projects.
40. The role of quantity surveyors in achieving net-zero carbon goals.
________________________________________
Technology and Innovation in Quantity Surveying
41. The impact of BIM on quantity surveying practices.
42. The use of drones in quantity surveying and cost estimation.
43. The role of artificial intelligence in automating quantity surveying tasks.
44. The impact of 3D printing on construction cost management.
45. The use of blockchain technology in contract administration.
46. The role of virtual reality in project visualization and cost estimation.
47. The impact of digital twins on construction project management.
48. The use of machine learning in predicting construction costs.
49. The role of quantity surveyors in adopting smart construction technologies.
50. The impact of mobile applications on quantity surveying workflows.
________________________________________
Risk Management and Mitigation
51. The role of quantity surveyors in identifying project risks.
52. The impact of risk management strategies on project outcomes.
53. The effectiveness of risk allocation in construction contracts.
54. The role of quantity surveyors in managing weather-related risks.
55. The impact of geopolitical risks on international construction projects.
56. The use of risk registers in construction project management.
57. The role of quantity surveyors in managing supply chain risks.
58. The impact of health and safety risks on project costs.
59. The effectiveness of insurance in mitigating construction risks.
60. The role of quantity surveyors in managing financial risks.
________________________________________
Procurement and Supply Chain Management
61. The role of quantity surveyors in procurement strategies.
62. The impact of procurement methods on project performance.
63. The effectiveness of just-in-time procurement in construction.
64. The role of quantity surveyors in managing supplier relationships.
65. The impact of global supply chain disruptions on construction projects.
66. The use of e-procurement in construction project management.
67. The role of quantity surveyors in ensuring ethical procurement practices.
68. The impact of procurement delays on project timelines.
69. The effectiveness of collaborative procurement in construction.
70. The role of quantity surveyors in managing material logistics.
________________________________________
Project Management and Delivery
71. The role of quantity surveyors in project planning and scheduling.
72. The impact of project delivery methods on cost management.
73. The effectiveness of agile project management in construction.
74. The role of quantity surveyors in managing project timelines.
75. The impact of change orders on project budgets.
76. The use of earned value management in construction projects.
77. The role of quantity surveyors in managing project quality.
78. The impact of stakeholder management on project outcomes.
79. The effectiveness of integrated project delivery (IPD) in construction.
80. The role of quantity surveyors in post-construction evaluations.
________________________________________
Legal and Regulatory Frameworks
81. The role of quantity surveyors in ensuring regulatory compliance.
82. The impact of building codes on construction costs.
83. The effectiveness of health and safety regulations in construction.
84. The role of quantity surveyors in managing legal disputes.
85. The impact of environmental regulations on project budgets.
86. The use of standard form contracts in construction projects.
87. The role of quantity surveyors in managing intellectual property issues.
88. The impact of labor laws on construction project costs.
89. The effectiveness of dispute adjudication boards in construction.
90. The role of quantity surveyors in managing insurance claims.
________________________________________
Education and Professional Development
91. The role of quantity surveying education in shaping industry practices.
92. The impact of professional certifications on quantity surveying careers.
93. The effectiveness of continuous professional development (CPD) programs.
94. The role of quantity surveyors in mentoring young professionals.
95. The impact of technology on quantity surveying education.
96. The use of case studies in quantity surveying training.
97. The role of quantity surveyors in promoting diversity in the construction industry.
98. The impact of globalization on quantity surveying practices.
99. The effectiveness of internships in quantity surveying education.
100. The role of quantity surveyors in shaping future construction trends.
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EFFECT OF TECHNOLOGY IN THE FIELD OF QUANTITY SURVEYING AND HOW IT AFFECT COST, LABOUR AND TIME
ABSTRACT
Quantity Surveying (QS) appears to be one of the few professions that have not been profoundly transformed by the application of the technological advancement offered by digital revolution especially in a developing economy like Nigeria. The paper examines the extent to which the Nigerian quantity surveyors (NQS) have been moving with the times of information technology. The aim is to discover the challenges faced by the professionals by examining the factors affecting the use and adoption of computer in a dynamic world of explosive growth of the information and communication technology (ICT). The study adopted a survey design methodology. It was observed that there was increasing yearly rate of adoption of computer in QS services, particularly among those QSs in their mid-career years. About 89% of the quantity surveyors have been using computer for project cost management services (PCMS). Almost all the respondents are performing word processing functions using computers while the proficiency level is indicated to be high in Microsoft Excel and Microsoft Word. About 44% of the respondents carried out spread functions using computer while about 45% wished to perform spreadsheet functions with computer. QSs’ attempt to computerize their services has been more of technology driven than process driven. Four elements of cost that were rated to be high with respect to income of the QSs are cost of original software, cost of branded hardware, cost of infrastructures to support computerization and cost of support
services by computer professionals.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The explosive growth of the information and communication technology (ICT) has had unquantifiable impact on business systems and processes .The global acceptance and widespread adoption of ICT has accelerated the dimensions of competition not only among organizations globally but among professions locally. The QSs ability to avail themselves with the emerging opportunities provided by the advent of ICT depends on the adoption of new technologies (Castle, 2002). Computer has promised to be a reliable tool in all spheres of human endeavour. Literature has documented the relevance of computer/computing to the industry (Shash and Al- Amir, 1997). Advances were made in various professions when such professions took advantage of technological tools available (Li, 1996 and Pollack-Johnson & Liberatore, 1998). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (CAD).
Information and Communication Technology (ICT), also known as information technology (IT) has radically transformed the way we live, learn, work and play (Capron 2000). Many companies in the construction industry do not generally appear to have appreciated the positive changes and advantages that the new technology was providing to companies in other sectors of the economy.
A major construction process demands heavy exchange of data and information between project participants on a daily basis (Masqsood et al., 2004). This makes the construction industry one of the most information-intensive industries, and requires close coordination among a large number of specialized but interdependent organizations and individuals to achieve the cost, time, quality and sustainability goals of construction project (Ugwu et al., 2005). ICT has been shown to be a vital tool in assisting the construction industry to cope with the increasing complexity of its product and services as well as the increasing demands of clients and regulators (Betts,1999), and to enhance construction productivity (Liston et al., 2000).
To asses the effect of ICT on construction in this regard, surveys on the use of ICT in the construction industries of various countries in different parts of the world have been carried out in recent times. They include surveys conducted in Canada in 1999 (Rivard, 2000), Nigeria in 2000 (Arif & Karam, 2001), Sweden in 2000, Denmark in 2001(Samuelson, 2002), Malaysia in 2001 (Lim et al, 2002). Turkey in 2001 (Sarshar & Isikdag, 2004) and Singapore in 2003, (Goh, 2005).
While most of these surveys have been carried out in highly developed European countries and Asian economics, only the Nigerian survey by Arif & Karam (2001) represent an emerging economy in Africa. Oladapo (2007) has also carried out a survey into the use of ICT in the Nigeria construction industry. However, his survey apart from it being limited to South West Nigeria, focused more on the level of computer literacy of construction industry professionals and mode of acquisition. Oyediran (2005) studied the awareness and adoption of information and communication technology (ICT) by Architectural, Engineering and Construction industry educators in Nigeria.
Adejimi and Iyagba (2007) compared E-construction technology for integrating surveying processes between Nigeria, Canada and the Nordic countries. Their study however revealed that the digital divide between Nigeria and the developed world is closing up as more and more computer facilities are becoming accessible. However, they also indicated that modern and advanced information technology facilities such as internet, intra/extranet, virtual reality tools, tele/video conferencing, construction robots etc are grossly inadequate. The intent of this research work is to ascertain the level of use of ICT in the Nigeria construction industry and also to determine the prospects with respect to the benefits, cost, risks and research and development needs.
Scholars have observed the implications of transferring quantities information from CAD systems directly to the quantity surveyor or contractor. Rivard, Froese, Waugh, El-Diraby, Mora, Torrres, Gill and O’Reily (2004) predicted that the evolution of IT will have a profound impact on how organizations in the architectural, engineering and construction (AEC) industry operate. This is already coming to pass. For example, there are pockets of reduction in paper-based operation in quantity surveying offices while electronic led- processes are leading to less dependence on taking- off sheets and other ancillary stationery. Honey (1998) reported that a large proportion of QSs in the United Kingdom have been using computers. In an earlier baseline study, Oyediran and Odusami (2004) examined the state of the art of computing by QSs in Nigeria at the turn of the last century.
The construction industry has recently witnessed a paradigm shift from traditional paper-based method of service delivery to electronic information exchange using Information Technology (IT), at least in the western world like UK. It is now evident that the adoption of Information Technology can enhance construction productivity and improve communications for effective decision-making and coordination among construction participants. The ability of the industry to avail itself of technology depends on the level of usage by construction participants including the Quantity Surveyor (QS) who plays a major role in the management of project success determinants, such as cost, time and quality.
It is apparent that we live in a dynamic world characterized by incessant technology change. The explosive growth of information and communication technology (ICT) otherwise shortened as information technology (IT) has had unquantifiable impact on business systems and processes (Rivard et al., 2004). Advancement in information technology has made possible fundamental changes in the method of practice in all businesses and industries although at different levels (Li, 2000). The global acceptance and widespread adoption has accelerated the dimensions of competition not only among organizations globally but among professions locally (Hampson and Tatum, 1994).
The construction industry with the aim of leveling their colleagues in other industries have embraced the use of information technology such as internet, computing, telephoning, satellite communication and electronic mailing to perform most, if not all of their activities (Ibidapo, 2000). The quantity surveyors’ ability to avail themselves of these emerging opportunities provided by the advent of information technology depends on the adoption of new technologies (Castle, 2002). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (Arif and Karam, 2001).
Rivard et al. (2004) opined that the evolution of information technology will have a profound impact on how organizations in the architectural, engineering and construction industry operate in the way other industries such as manufacturing and banking have adopted and benefited from long ago. He noted that this is already the case in many of the developed countries around the world. In lieu of this, Honey (1998) reported that the turn of the last century has seen a reduction in paper-based operation in quantity surveying (QS) offices in UK while electronic led-processes are leading to less dependence on taking-off sheets and other ancillary stationery. The quantity surveying profession in Nigeria has experienced significant changes over the past decade in terms of the scope and type of services provided within the construction industry (Oladapo, 2006). These changes have occurred primarily in response to changing industry/client demands, information technology developments, increased levels of competition for services and the vital role of the quantity surveying in achieving improved service delivery.
Moreover, given the increasingly global nature of construction industry obstinate by extremely high levels of domestic competition and resultant low profit margin levels, there is no doubt that the construction industry has to improve its information flow and project delivery mechanism (Wager, 1998). Thus, as information flow increasingly become electronic, quantity surveying computing facilities, software and databases will need to develop in a compatible manner. Nigerian quantity surveyors will need to adapt to changes in work patterns to improve their efficiency and develop new markets to maintain competitive advantage and enhance profitability through the adoption of IT. In summary, the Nigeria construction industry in general and the quantity surveying profession in particular are facing the challenges of effectively utilizing the rapid expanding technological environment in which it operates to its full advantage (Oyediran and Odusami, 2004).
Their study was limited to Lagos State of Nigeria and can at best be cautiously generalized. ITcon Vol. 10 (2005), Oyediran and Odusami, pg. Thus an update on the state of the art of computing by the professionals is necessary. The critical roles being played by the QSs in the procurement chain require that the professionals must not lag behind in the adoption of tools that promise to improve on their service delivery.
1.2 STATEMENT OF THE PROBLEM
It is a known fact that advancement in technology and evolution of information technology as dramatically change the way business is conducted by various professionals. It has reduced the cost of services, reduce costs, labour and saves time. The quantity surveying profession are not left behind, they have also embraced the use of this advanced form of technology in delivering their services. The researcher is therefore examining the effect of this technology in the field of quantity surveying and how it affect cost, labour and time.
Quantity surveying as a profession has been around since the 1820’s. Since the beginning the roles and duties of a Quantity Surveyor have changed a lot. There have been many challenges that the profession had to face and overcome in the past. The latest challenge that the profession of quantity surveying are facing is an acronym consisting of three letters: BIM. Building Information Modeling is most likely the biggest challenge that Quantity Surveyors had to face since the beginning of the profession. If BIM threatens to replace the Quantity Surveyor, how should Quantity Surveyors in Nigeria handle the embrace of BIM? Do you fight or join?
Other problems include incompetence in the use of the ICT as follows;
Inefficiency
Low profitability
Low quality production
Poor management of business process
Poor supply chain management
Inability to satisfy client needs
Increased cost of business process
Lack of standardization.
1.3 AIMS AND OBJECTIVES
1. To examine technology (BIM) and quantity surveying profession.
2. To examine the role of building information modeling (BIM) on quantity surveying practice.
3. To identify the effect of quantity surveying and cost management methods and tools in surveying.
4. To examine how technology affects cost, labour and time in the field of quantity surveying.
5. To examine the factors limiting the use of technology in the field of quantity surveying.
1. Does technology (BIM) improve quantity surveying profession?
2. What are effect of quantity surveying on cost management methods and tools in surveying.
4. How does technology affects cost, labour and time in the field of quantity surveying?
5. What are the factors limiting the use of technology in the field of quantity surveying?
1.6 SIGNIFICANCE OF THE STUDY
The construction sector contributes significantly to the GDP of a nation. In developing countries such as Nigeria, construction contributes up to 12 to 14 percent of GDP (Gann, 2000). In the developing countries (according to Dharwadker, 1979) investments in construction projects could be as high as 50 to 60 percent of national budgets.
In Nigeria, the construction industry was the dominant contributor to the nation‟s GDP in the 1980s, accounting for about 70 percent of the GDP (Planning committee on the National Construction Policy, 1989). This made the industry very strategic to Nigeria‟s development efforts. Unfortunately, however, the industry has been bedeviled by a combination of low demand and consistent low productivity and poor performance over the years (Manshued et al 1994; Olomolaiye, 1987; Aniekwu, 1995; Okuwoga, 1998; Adeyemi et al, 2005). This has reduced its contribution to the national economy to a mere 1 percent of the GDP in 2002 (AFDB/OECD, 2004). The industry is made up of an organized formal sector and an unorganized informal sector. The formal sector comprises small, medium and large scale according to their level of capitalization and annual turnover.
The few large firms (mostly foreign), which constitute just about 5 percent of the total number of contractors in the formal sector, control about 95% of the construction market, giving the small firms just about 5 percent share of the market. The results of this study will impact the Nigerian construction industry in the following ways;
Delineate the ICT application areas and the level of adoption.
Highlight the benefits of ICT application in construction at the strategic, tactical and operational levels.
Serve as a guide to construction organizations in the area of the cost of ICT adoption (both direct and indirect cost); and the risks involved.
Research and development.
1.7 SCOPE OF THE STUDY
This study will cover the effect of technology use in the field of quantity surveying and how it affect cost, labour and time of the project.
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 TERMS
Quantity Surveyor: The quantity surveyor is the person responsible for figuring out just what a construction project is going to cost. Quantity Surveyor is an expert that is concerned with financial probity in the conceptualization, planning and execution of building, civil and heavy engineering projects.
Building Information Modeling : Notwithstanding Schwegler (2001) definition of BIM (as the process of creating an information database for a project in which lifecycle information is expressed in an interoperable manner to create, engineer, estimate, illustrate and construct a construction project), BIM means different things to different people.
Cost Based Information Systems: In this work, cost based information systems are the information systems that store cost based information. While information systems process information in the same way (according to their classification), the information they process provides an insight into what they are called.
Times Overruns: Time overruns is defined as the extension of time beyond planned completion dates traceable to the contractors.
Cost overruns: Cost overrun is defined as excess of actual cost over budget. Cost overrun is also sometimes called “cost escalation,” “cost increase, or “budget overrun.” Cost overrun is defined as the change in contract amount divided by the original contract award amount.
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Account Number: 3139283609
Bank: FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953, 08137701720, 09070569307, 08154275408
]]>BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPICS BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
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AN INVESTIGATION INTO RISK MANAGEMENT PRACTICES AMONGST QUANTITY SURVEYORS IN THE CONSTRUCTION INDUSTRY OF NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Quantity surveying is concerned with controlling and managing construction projects. The Nigerian construction industry is faced with uncertainties. With construction targets not being met and high rate of abandoned construction projects, there is great need for proper risk assessment and implementation. Managing risks in construction projects have been recognized as a very important process in order to achieve project objectives in terms of time, cost, quality, safety and environmental sustainability (Mills, 2001). Project risk management is an iterative process: the process is beneficial when is implemented in a systematic manner throughout the lifecycle of a construction project, from the planning stage to completion.
Risk management has become an integral process in managing construction projects. Construction project activities are to be well calculated in-order for the deliverable to be of great use and benefit to its stakeholders. To complete most construction projects on time, minimizing cost and wastages proper risk management techniques must be employed (Tchankova, 2002). According to Mills (2001), systematic risk management is expecting the unexpected or in other words it is a tool which helps control risks in construction projects and its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way.
Normally, in risk management process, the first steps will involves risk identification process which includes the prioritization process in order to identify and rank the risk based on its impact and seriousness. Risk that will have a greater impact on a project normally will be handled first and low impact risk will be handled later.
Construction project team consist of professional such as the architect, engineer, and the quantity surveyor that will help to assist and advice the client in order to meet all the project objectives in term of time, quality and cost. Awareness and knowledge on risk management is very crucial so that they will deal with the risk properly which will directly leads to project success. Due to this scenario, this research aims to identify the level of awareness of construction professional specifically Nigerian quantity surveyors towards risk management. Apart from that, it will also aim to identify how risk management being implemented in the Nigerian construction industry and also the potential barrier and challengers in the implementation of risk management specifically from the quantity surveyor’s point of view.
1.2 STATEMENT OF THE PROBLEM
Embarking on a construction project involves taking risks, as the Nigerian construction industry is not risk-free. No matter how small or simple is the project it is still can go wrong as soon as the two parties, the employer and the contractor signed a contract they have taken onboard the risk (Sawczuk, 1996). The individual in the construction industries that undertake various activities are heterogeneous since client, consultant and contractors have different roles and objectives (flanagan, 1995). Risk management in Nigerian construction industry is actually not widely being practiced.
According to Burchett (2009), Risk in construction, however cannot be eliminated, but it can be minimized, transferred or retained. However, the industry has a very poor reputation for managing risk, with many projects failing to meet deadlines and cost argents (Mills, 2001). In practice, normally in order to deal with the unexpected event, there will be an allocation about 10 percent from the estimated cost of the proposed construction project as a contingency sum. Earlier observation shows that the risk management process is not widely being implemented in Nigerian construction industry. For this reason, this research seeks to identify the barriers and challenges for the implementation of risk management in the Nigerian construction industry.
1.3 OBJECTIVES OF THE STUDY
The aim of this research is to investigate the practice of risk management amongst the construction practitioners specifically the quantity surveyor in the Nigerian construction industry.
In order to achieve the aim of the study, specific objectives for the study are:
To evaluate the quantity surveyor’s level of awareness and acceptance on Risk Management practice.
To identify the current practice of risk management amongst Quantity Surveyors’.
To examine the barriers and challenges to the implementation of risk management in construction project from the quantity surveyor’s point of view.
1.4 RESEARCH QUESTIONS
What is the quantity surveyor’s level of awareness and acceptance on Risk Management practice?
What is the current practice of risk management amongst Quantity Surveyors’?
What barriers and challenges face the implementation of risk management in construction project from the quantity surveyor’s point of view?
1.5 RESEARCH HYPOTHESIS
Ho: Awareness and acceptance of risk management practices do not aid quantity surveyors in attaining contruction project objectives
Hi: Awareness and acceptance of risk management practices aid quantity surveyors in attaining construction project objectives
1.6 SIGNIFICANCE OF THE STUDY
Findings of this study will aid Nigerian quantity surveyors in appreciating the importance of adopting proper risk management techniques in their daily jobs. Since risk management is not widely being adopted in Nigerian construction industry, this research will help to promote the practice of risk management among the industry’s players.
In addition to this, being an inter-discipline type of research, both the consultants and contractors and also the industry as a whole may benefit from the outcome of the research and have better understanding on risk management.
1.7 SCOPE AND LIMITATION OF STUDY
This research study will focus on risk management practices adopted by quantity surveyors in Uyo Local Government area of Akwa Ibom State, Nigeria. All findings and recommendations from the study are limited to findings and recommendations based on the chosen sample size.
In carrying out this study, the researcher was faced with time and finance constraints, as lectures did not give room for more time to extend the research time frame. Finance on the other hand made printing, transportation to cover a wider area difficult.
1.8 DEFINITION OF TERMS
RISK- This is the potential of losing something of value, weighed against the potential to gain something of value.
RISK PERCEPTION- Risk perception is the subjective judgment people make about the severity of a risk, and may vary person to person
PRACTICE- is the act of rehearsing a behavior over and over, or engaging in an activity again and again, for the purpose of improving or mastering it, as in the phrase “practice makes perfect
QUANTITY SURVEYOR- a Quantity Surveyor (QS) is a professional working within the construction industryconcerned with construction costs and contracts.
CONSTRUCTION- In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking. Normally, the job is managed by a project manager, and supervised by a construction manager, design engineer, construction engineer or project architect.
RISK MANAGEMNENT- is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
HOW TO RECEIVE PROJECT MATERIAL (S)
After paying the appropriate amount (#5,000) into our bank Account below, send the following information to any of the numbers below
08068231953, 08137701720, 09070569307, 08154275408 (1) Your project topics
(2) Email Address
(3) Payment Name
OR you drop them on our WhatsApp, 08137701720
We will send your material(s) after we receive bank alert
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Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 3139283609
Bank: FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953, 08137701720, 09070569307, 08154275408
]]>BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420
WHATSAPP US ON 08137701720
EFFECT OF TECHNOLOGY IN THE FIELD OF QUANTITY SURVEYING AND HOW IT AFFECT COST, LABOUR AND TIME
ABSTRACT
Quantity Surveying (QS) appears to be one of the few professions that have not been profoundly transformed by the application of the technological advancement offered by digital revolution especially in a developing economy like Nigeria. The paper examines the extent to which the Nigerian quantity surveyors (NQS) have been moving with the times of information technology. The aim is to discover the challenges faced by the professionals by examining the factors affecting the use and adoption of computer in a dynamic world of explosive growth of the information and communication technology (ICT). The study adopted a survey design methodology. It was observed that there was increasing yearly rate of adoption of computer in QS services, particularly among those QSs in their mid-career years. About 89% of the quantity surveyors have been using computer for project cost management services (PCMS). Almost all the respondents are performing word processing functions using computers while the proficiency level is indicated to be high in Microsoft Excel and Microsoft Word. About 44% of the respondents carried out spread functions using computer while about 45% wished to perform spreadsheet functions with computer. QSs’ attempt to computerize their services has been more of technology driven than process driven. Four elements of cost that were rated to be high with respect to income of the QSs are cost of original software, cost of branded hardware, cost of infrastructures to support computerization and cost of support
services by computer professionals.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The explosive growth of the information and communication technology (ICT) has had unquantifiable impact on business systems and processes .The global acceptance and widespread adoption of ICT has accelerated the dimensions of competition not only among organizations globally but among professions locally. The QSs ability to avail themselves with the emerging opportunities provided by the advent of ICT depends on the adoption of new technologies (Castle, 2002). Computer has promised to be a reliable tool in all spheres of human endeavour. Literature has documented the relevance of computer/computing to the industry (Shash and Al- Amir, 1997). Advances were made in various professions when such professions took advantage of technological tools available (Li, 1996 and Pollack-Johnson & Liberatore, 1998). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (CAD).
Information and Communication Technology (ICT), also known as information technology (IT) has radically transformed the way we live, learn, work and play (Capron 2000). Many companies in the construction industry do not generally appear to have appreciated the positive changes and advantages that the new technology was providing to companies in other sectors of the economy.
A major construction process demands heavy exchange of data and information between project participants on a daily basis (Masqsood et al., 2004). This makes the construction industry one of the most information-intensive industries, and requires close coordination among a large number of specialized but interdependent organizations and individuals to achieve the cost, time, quality and sustainability goals of construction project (Ugwu et al., 2005). ICT has been shown to be a vital tool in assisting the construction industry to cope with the increasing complexity of its product and services as well as the increasing demands of clients and regulators (Betts,1999), and to enhance construction productivity (Liston et al., 2000).
To asses the effect of ICT on construction in this regard, surveys on the use of ICT in the construction industries of various countries in different parts of the world have been carried out in recent times. They include surveys conducted in Canada in 1999 (Rivard, 2000), Nigeria in 2000 (Arif & Karam, 2001), Sweden in 2000, Denmark in 2001(Samuelson, 2002), Malaysia in 2001 (Lim et al, 2002). Turkey in 2001 (Sarshar & Isikdag, 2004) and Singapore in 2003, (Goh, 2005).
While most of these surveys have been carried out in highly developed European countries and Asian economics, only the Nigerian survey by Arif & Karam (2001) represent an emerging economy in Africa. Oladapo (2007) has also carried out a survey into the use of ICT in the Nigeria construction industry. However, his survey apart from it being limited to South West Nigeria, focused more on the level of computer literacy of construction industry professionals and mode of acquisition. Oyediran (2005) studied the awareness and adoption of information and communication technology (ICT) by Architectural, Engineering and Construction industry educators in Nigeria.
Adejimi and Iyagba (2007) compared E-construction technology for integrating surveying processes between Nigeria, Canada and the Nordic countries. Their study however revealed that the digital divide between Nigeria and the developed world is closing up as more and more computer facilities are becoming accessible. However, they also indicated that modern and advanced information technology facilities such as internet, intra/extranet, virtual reality tools, tele/video conferencing, construction robots etc are grossly inadequate. The intent of this research work is to ascertain the level of use of ICT in the Nigeria construction industry and also to determine the prospects with respect to the benefits, cost, risks and research and development needs.
Scholars have observed the implications of transferring quantities information from CAD systems directly to the quantity surveyor or contractor. Rivard, Froese, Waugh, El-Diraby, Mora, Torrres, Gill and O’Reily (2004) predicted that the evolution of IT will have a profound impact on how organizations in the architectural, engineering and construction (AEC) industry operate. This is already coming to pass. For example, there are pockets of reduction in paper-based operation in quantity surveying offices while electronic led- processes are leading to less dependence on taking- off sheets and other ancillary stationery. Honey (1998) reported that a large proportion of QSs in the United Kingdom have been using computers. In an earlier baseline study, Oyediran and Odusami (2004) examined the state of the art of computing by QSs in Nigeria at the turn of the last century.
The construction industry has recently witnessed a paradigm shift from traditional paper-based method of service delivery to electronic information exchange using Information Technology (IT), at least in the western world like UK. It is now evident that the adoption of Information Technology can enhance construction productivity and improve communications for effective decision-making and coordination among construction participants. The ability of the industry to avail itself of technology depends on the level of usage by construction participants including the Quantity Surveyor (QS) who plays a major role in the management of project success determinants, such as cost, time and quality.
It is apparent that we live in a dynamic world characterized by incessant technology change. The explosive growth of information and communication technology (ICT) otherwise shortened as information technology (IT) has had unquantifiable impact on business systems and processes (Rivard et al., 2004). Advancement in information technology has made possible fundamental changes in the method of practice in all businesses and industries although at different levels (Li, 2000). The global acceptance and widespread adoption has accelerated the dimensions of competition not only among organizations globally but among professions locally (Hampson and Tatum, 1994).
The construction industry with the aim of leveling their colleagues in other industries have embraced the use of information technology such as internet, computing, telephoning, satellite communication and electronic mailing to perform most, if not all of their activities (Ibidapo, 2000). The quantity surveyors’ ability to avail themselves of these emerging opportunities provided by the advent of information technology depends on the adoption of new technologies (Castle, 2002). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (Arif and Karam, 2001).
Rivard et al. (2004) opined that the evolution of information technology will have a profound impact on how organizations in the architectural, engineering and construction industry operate in the way other industries such as manufacturing and banking have adopted and benefited from long ago. He noted that this is already the case in many of the developed countries around the world. In lieu of this, Honey (1998) reported that the turn of the last century has seen a reduction in paper-based operation in quantity surveying (QS) offices in UK while electronic led-processes are leading to less dependence on taking-off sheets and other ancillary stationery. The quantity surveying profession in Nigeria has experienced significant changes over the past decade in terms of the scope and type of services provided within the construction industry (Oladapo, 2006). These changes have occurred primarily in response to changing industry/client demands, information technology developments, increased levels of competition for services and the vital role of the quantity surveying in achieving improved service delivery.
Moreover, given the increasingly global nature of construction industry obstinate by extremely high levels of domestic competition and resultant low profit margin levels, there is no doubt that the construction industry has to improve its information flow and project delivery mechanism (Wager, 1998). Thus, as information flow increasingly become electronic, quantity surveying computing facilities, software and databases will need to develop in a compatible manner. Nigerian quantity surveyors will need to adapt to changes in work patterns to improve their efficiency and develop new markets to maintain competitive advantage and enhance profitability through the adoption of IT. In summary, the Nigeria construction industry in general and the quantity surveying profession in particular are facing the challenges of effectively utilizing the rapid expanding technological environment in which it operates to its full advantage (Oyediran and Odusami, 2004).
Their study was limited to Lagos State of Nigeria and can at best be cautiously generalized. ITcon Vol. 10 (2005), Oyediran and Odusami, pg. Thus an update on the state of the art of computing by the professionals is necessary. The critical roles being played by the QSs in the procurement chain require that the professionals must not lag behind in the adoption of tools that promise to improve on their service delivery.
1.2 STATEMENT OF THE PROBLEM
It is a known fact that advancement in technology and evolution of information technology as dramatically change the way business is conducted by various professionals. It has reduced the cost of services, reduce costs, labour and saves time. The quantity surveying profession are not left behind, they have also embraced the use of this advanced form of technology in delivering their services. The researcher is therefore examining the effect of this technology in the field of quantity surveying and how it affect cost, labour and time.
Quantity surveying as a profession has been around since the 1820’s. Since the beginning the roles and duties of a Quantity Surveyor have changed a lot. There have been many challenges that the profession had to face and overcome in the past. The latest challenge that the profession of quantity surveying are facing is an acronym consisting of three letters: BIM. Building Information Modeling is most likely the biggest challenge that Quantity Surveyors had to face since the beginning of the profession. If BIM threatens to replace the Quantity Surveyor, how should Quantity Surveyors in Nigeria handle the embrace of BIM? Do you fight or join?
Other problems include incompetence in the use of the ICT as follows;
Inefficiency
Low profitability
Low quality production
Poor management of business process
Poor supply chain management
Inability to satisfy client needs
Increased cost of business process
Lack of standardization.
1.3 AIMS AND OBJECTIVES
1. To examine technology (BIM) and quantity surveying profession.
2. To examine the role of building information modeling (BIM) on quantity surveying practice.
3. To identify the effect of quantity surveying and cost management methods and tools in surveying.
4. To examine how technology affects cost, labour and time in the field of quantity surveying.
5. To examine the factors limiting the use of technology in the field of quantity surveying.
1. Does technology (BIM) improve quantity surveying profession?
2. What are effect of quantity surveying on cost management methods and tools in surveying.
4. How does technology affects cost, labour and time in the field of quantity surveying?
5. What are the factors limiting the use of technology in the field of quantity surveying?
1.6 SIGNIFICANCE OF THE STUDY
The construction sector contributes significantly to the GDP of a nation. In developing countries such as Nigeria, construction contributes up to 12 to 14 percent of GDP (Gann, 2000). In the developing countries (according to Dharwadker, 1979) investments in construction projects could be as high as 50 to 60 percent of national budgets.
In Nigeria, the construction industry was the dominant contributor to the nation‟s GDP in the 1980s, accounting for about 70 percent of the GDP (Planning committee on the National Construction Policy, 1989). This made the industry very strategic to Nigeria‟s development efforts. Unfortunately, however, the industry has been bedeviled by a combination of low demand and consistent low productivity and poor performance over the years (Manshued et al 1994; Olomolaiye, 1987; Aniekwu, 1995; Okuwoga, 1998; Adeyemi et al, 2005). This has reduced its contribution to the national economy to a mere 1 percent of the GDP in 2002 (AFDB/OECD, 2004). The industry is made up of an organized formal sector and an unorganized informal sector. The formal sector comprises small, medium and large scale according to their level of capitalization and annual turnover.
The few large firms (mostly foreign), which constitute just about 5 percent of the total number of contractors in the formal sector, control about 95% of the construction market, giving the small firms just about 5 percent share of the market. The results of this study will impact the Nigerian construction industry in the following ways;
Delineate the ICT application areas and the level of adoption.
Highlight the benefits of ICT application in construction at the strategic, tactical and operational levels.
Serve as a guide to construction organizations in the area of the cost of ICT adoption (both direct and indirect cost); and the risks involved.
Research and development.
1.7 SCOPE OF THE STUDY
This study will cover the effect of technology use in the field of quantity surveying and how it affect cost, labour and time of the project.
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 TERMS
Quantity Surveyor: The quantity surveyor is the person responsible for figuring out just what a construction project is going to cost. Quantity Surveyor is an expert that is concerned with financial probity in the conceptualization, planning and execution of building, civil and heavy engineering projects.
Building Information Modeling : Notwithstanding Schwegler (2001) definition of BIM (as the process of creating an information database for a project in which lifecycle information is expressed in an interoperable manner to create, engineer, estimate, illustrate and construct a construction project), BIM means different things to different people.
Cost Based Information Systems: In this work, cost based information systems are the information systems that store cost based information. While information systems process information in the same way (according to their classification), the information they process provides an insight into what they are called.
Times Overruns: Time overruns is defined as the extension of time beyond planned completion dates traceable to the contractors.
Cost overruns: Cost overrun is defined as excess of actual cost over budget. Cost overrun is also sometimes called “cost escalation,” “cost increase, or “budget overrun.” Cost overrun is defined as the change in contract amount divided by the original contract award amount.
Direct Labour Project Evaluation: Direct labour system is a method whereby the client design and produces his project by himself with the aid of his in-house professionals‟ void of the usage of contractors (Ogunsanmi et. al., 2003; Kadiri and Odusami, 2003).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 3139283609
Bank: FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420
WHATSAPP US ON 08137701720
AN INVESTIGATION INTO RISK MANAGEMENT PRACTICES AMONGST QUANTITY SURVEYORS IN THE CONSTRUCTION INDUSTRY OF NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Quantity surveying is concerned with controlling and managing construction projects. The Nigerian construction industry is faced with uncertainties. With construction targets not being met and high rate of abandoned construction projects, there is great need for proper risk assessment and implementation. Managing risks in construction projects have been recognized as a very important process in order to achieve project objectives in terms of time, cost, quality, safety and environmental sustainability (Mills, 2001). Project risk management is an iterative process: the process is beneficial when is implemented in a systematic manner throughout the lifecycle of a construction project, from the planning stage to completion.
Risk management has become an integral process in managing construction projects. Construction project activities are to be well calculated in-order for the deliverable to be of great use and benefit to its stakeholders. To complete most construction projects on time, minimizing cost and wastages proper risk management techniques must be employed (Tchankova, 2002). According to Mills (2001), systematic risk management is expecting the unexpected or in other words it is a tool which helps control risks in construction projects and its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way.
Normally, in risk management process, the first steps will involves risk identification process which includes the prioritization process in order to identify and rank the risk based on its impact and seriousness. Risk that will have a greater impact on a project normally will be handled first and low impact risk will be handled later.
Construction project team consist of professional such as the architect, engineer, and the quantity surveyor that will help to assist and advice the client in order to meet all the project objectives in term of time, quality and cost. Awareness and knowledge on risk management is very crucial so that they will deal with the risk properly which will directly leads to project success. Due to this scenario, this research aims to identify the level of awareness of construction professional specifically Nigerian quantity surveyors towards risk management. Apart from that, it will also aim to identify how risk management being implemented in the Nigerian construction industry and also the potential barrier and challengers in the implementation of risk management specifically from the quantity surveyor’s point of view.
1.2 STATEMENT OF THE PROBLEM
Embarking on a construction project involves taking risks, as the Nigerian construction industry is not risk-free. No matter how small or simple is the project it is still can go wrong as soon as the two parties, the employer and the contractor signed a contract they have taken onboard the risk (Sawczuk, 1996). The individual in the construction industries that undertake various activities are heterogeneous since client, consultant and contractors have different roles and objectives (flanagan, 1995). Risk management in Nigerian construction industry is actually not widely being practiced.
According to Burchett (2009), Risk in construction, however cannot be eliminated, but it can be minimized, transferred or retained. However, the industry has a very poor reputation for managing risk, with many projects failing to meet deadlines and cost argents (Mills, 2001). In practice, normally in order to deal with the unexpected event, there will be an allocation about 10 percent from the estimated cost of the proposed construction project as a contingency sum. Earlier observation shows that the risk management process is not widely being implemented in Nigerian construction industry. For this reason, this research seeks to identify the barriers and challenges for the implementation of risk management in the Nigerian construction industry.
1.3 OBJECTIVES OF THE STUDY
The aim of this research is to investigate the practice of risk management amongst the construction practitioners specifically the quantity surveyor in the Nigerian construction industry.
In order to achieve the aim of the study, specific objectives for the study are:
To evaluate the quantity surveyor’s level of awareness and acceptance on Risk Management practice.
To identify the current practice of risk management amongst Quantity Surveyors’.
To examine the barriers and challenges to the implementation of risk management in construction project from the quantity surveyor’s point of view.
1.4 RESEARCH QUESTIONS
What is the quantity surveyor’s level of awareness and acceptance on Risk Management practice?
What is the current practice of risk management amongst Quantity Surveyors’?
What barriers and challenges face the implementation of risk management in construction project from the quantity surveyor’s point of view?
1.5 RESEARCH HYPOTHESIS
Ho: Awareness and acceptance of risk management practices do not aid quantity surveyors in attaining contruction project objectives
Hi: Awareness and acceptance of risk management practices aid quantity surveyors in attaining construction project objectives
1.6 SIGNIFICANCE OF THE STUDY
Findings of this study will aid Nigerian quantity surveyors in appreciating the importance of adopting proper risk management techniques in their daily jobs. Since risk management is not widely being adopted in Nigerian construction industry, this research will help to promote the practice of risk management among the industry’s players.
In addition to this, being an inter-discipline type of research, both the consultants and contractors and also the industry as a whole may benefit from the outcome of the research and have better understanding on risk management.
1.7 SCOPE AND LIMITATION OF STUDY
This research study will focus on risk management practices adopted by quantity surveyors in Uyo Local Government area of Akwa Ibom State, Nigeria. All findings and recommendations from the study are limited to findings and recommendations based on the chosen sample size.
In carrying out this study, the researcher was faced with time and finance constraints, as lectures did not give room for more time to extend the research time frame. Finance on the other hand made printing, transportation to cover a wider area difficult.
1.8 DEFINITION OF TERMS
RISK- This is the potential of losing something of value, weighed against the potential to gain something of value.
RISK PERCEPTION- Risk perception is the subjective judgment people make about the severity of a risk, and may vary person to person
PRACTICE- is the act of rehearsing a behavior over and over, or engaging in an activity again and again, for the purpose of improving or mastering it, as in the phrase “practice makes perfect
QUANTITY SURVEYOR- a Quantity Surveyor (QS) is a professional working within the construction industryconcerned with construction costs and contracts.
CONSTRUCTION- In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking. Normally, the job is managed by a project manager, and supervised by a construction manager, design engineer, construction engineer or project architect.
RISK MANAGEMNENT- is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 3139283609
Bank: FIRST BANK
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420
WHATSAPP US ON 08137701720
Negotiation as A Cost Reduction Technique In Material Procurement at Nigerian Bottling Company Plc Kaduna Plant
ABSTRACT
Negotiation as a reduction technique in material procurement is to ensure that high cost incurred in material procurement is manage hence the negotiation is one of the tool in spend cost management to optimise profit in every organization. Lack of knowledge to some guide when negotiating by procurement manages lead to high cost of finished product and it makes the product not to compete well with its competitors in the market. The impact expected at the end of negotiation is to minimize cost and maximise profit of the organisation. In both private and public sectors between 50% to 80% of the total expenditure is spend on acquiring either materials or services. The high percentage of charges by company’s agent could lead to additional cost of production over invoicing and overpayment. What else can be done, and what other mean can be used to acquire raw materials without incurring high cost. To reduce high cost, negotiation is one of the technique of spend cost management to arrive at a mutually acceptable bargain by planning. Objectives and strategy in order to arrive at an agreed pace term and condition of service between a procures and supplier. To ensure prudence and judicious utilization of the limited resources available in an organization. To expose ideas to procurement manager on how to achieve the objectives and enhance the profitability of organization as materials procured when adequately negotiated reduce cost incurred in acquisition of material for production process. To expose purchasing manager to possible tools of spend and cost management. The major research question of what re the techniques for negotiation the strategies for effective negotiation, the rate of material availability, how coordination and management of suppliers to ensure cost reduction and constant flow of materials to avoid interruption at the point of production. The research Design would be descriptive and analytical in nature. Interview would be conducted on selected staffs of Production, Stock Control section, Human Resources and Procurement Department. The Instrument for data collection are Questionnaire, Record, Interview, Observation. This work also comprise of summary of findings, conclusions and recommendation.
TABLE OF CONTENTS
Title i
Approval ii
Declaration iii
Dedication iv
Acknowledgement v
Abstract vi
Table of contents vii
List of table’s viii
CHAPTER ONE: Introduction
1.1 Background of the Study 1
1.2 Statement of the Problem 1
1.3 Objectives of the Study 2
1.4 Significance of the Study 3
1.5 Scope of the Study 4
1.6 Research Questions 5
1.7 Definition of Terms 6
CHAPTER TWO: Literature Review
2.1 Negotiation 8
2.2 Preparation for Negotiation 10
2.3 Negotiation Techniques 11
2.4 Objectives of Negotiation 13
2.5 When to Negotiate 15
2.6 Importance of Negotiation in Relation to Procurement 16
2.7 Cost Reduction 18
2.8 Negotiation Process. 19
2.9 Qualities of a Good Negotiation. 22
2.9.0 Material Procurement 23
CHAPTER THREE: Research Methodology
3.1 Area of Study 24
3.2 Research Design 25
3.3 Population of the Study 27
3.4 Sample, and Sampling Technique 27
3.5 Instruments for Data Collection 28
3.6 Administration of the Instrument 28
3.7 Techniques for Analysing Data 28
CHAPTER FOUR : Presentation and Analysis of Data
4.1 Presentations of Results 30
CHAPTER FIVE: Summary, Discussion, Conclusion and Recommendations
5.1 Summary of Procedure 39
5.2 Discussion of Findings 40
5.3 Implication of the Findings 43
5.4 Conclusion 43
5.5 Recommendations 44
5.6 Suggestions for further Studies 45
5.7 Delimitation of the study 46
Bibliography
Appendix
CHAPTER I: Introduction
Every human being needs water to survive, so also every organization needs materials to survive. In the private and public sector, their total expenditure is mainly spent on acquiring either materials or facilities or services. There is no way business operations can be effectively carried out without them. Negotiation is vital to organizations so as to reduce cost or minimize cost and to maximize profit.
1.1 Background of the study
Negotiation as a cost deduction technique in material procurement is for efficiency of any business, and also contingent upon obtaining the right materials and have it available in the right quantity from the right source, at the right price, delivered at the right place at the right time, whereby failure to any of these adds to costs and decreases the profit level of any organization.
There has been procurement fraud because of the idea of speed money in the mind of some of the procurement managers or officials who buy materials or items for the organization. Lack of transparency has lead to excess spending, increasing cost of production, losing a lot of money through the inflating of prices, over invoicing and overpayment of materials procured.
High cost incurred in material procurement is as a result of procurement manager not doing his home work well that is by planning his objectives and strategy before hand and he enters the session without a positive attitude of success.
Lack of knowledge and not been conversant to some guide when negotiating by the procurement manager in respect to issue such as, when to negotiate, the agenda, negotiation technique and behaviour, some attribute of a good negotiator, the team leader to negotiate term of payment not stipulated and followed add to the cost of production. These could also lead to high cost of finished products and make it not to compete well with its competitors in the market, and calls for extra expenses on promotions and advert, renovation and so forth, just to improve sales in order to make profit or keeps the organization living.
Hence procurement being a process whereby all classes of resources such as materials, facilities, people required to render services are obtained procurement covers a wider range of supply activities than buying alone. Negotiation as cost reduction technique in materials procurement is embarked on to solve some of the problem earlier mentioned. Negotiation is a very vital and essential technique in every organization in both private and public sector to reduce high cost incurred in material procurement, the role in negotiation and all that it takes to negotiate effectively. The impact expected at the end of these is to minimise cost and maximise profit of the organization, and also to ensure that the end products stand in the competitive market, to satisfy the taste of consumers and promote the standard of living economy and the society at large.
1.2 Statement of the Problem
In both the private and public sectors, between 50% and 80% of their total expenditure is spent on acquiring either materials or services, procurement is thus the biggest item of expenditure of an organization. Excessive costs are incurred when enquiring these materials in private sector about 60% to 75% of company’s procurement (purchases) of materials examples raw material is done by the company agent or foreign officials of the company based abroad , who usually charge certain percentages for their work which could lead to additional cost of production, over-invoicing and over payment. What else can be done, and what other means can be used to acquire raw materials.
Further more, when there is a need to render service that is the award of contract we know that every one is interested in buying, although they call it purchasing but it has lead to mismanagement and squandering of funds. What are the procedures, measures technique to ensure that such contract or procurement of materials, goods and services are carried out appropriately and so on.
To reduce cost, negotiation is one of the techniques to use, since negotiation is an art of arriving at a common understanding through bargaining on the essentials of a contract such as delivery, price, terms and condition of service, payment. These communication of inter-changing ideas and information as a result of which procurer and the supplier arrived at a mutually acceptable bargain enhance the procurement manager with a positive attitude of success, planned his objectives and strategy before hand.
The procurement manager would have to collect and study all relevant facts before meeting the supplier, and then develop an agenda for the meeting to negotiate with the supplier. Adequate arrangement or preparation would be made in respect to the negotiation team, the leader with the technique that would be used to negotiate and when to negotiate will be spelled out.
1.3 Objectives of the Study
The objectives of these study is to ensure negotiation technique of communication for bargaining are well understood so that the buying organization and the supplier will arrive at and agreed price, terms and condition of service, payment and so on.
To ensure prudence and judicious utilization of the limited resources available in an organization, all procurement undertaken must comply with the principle of openness between the procurer and the supplier, transparency, accountability, competition among suppliers, cost effectiveness and value for money are monitored to enhance profitability of organization. Between the procurer and supplier there should be an understanding which leads to reducing cost involved in competitive bidding.
To also make room for meetings in order to attain the desire goal of the organization, and to ensures that suppliers perform according to the terms of the negotiation.
This study is specifically designed to:
1.4 Significance of the Study
This research work would be useful or the beneficiaries of this research work is the management of the organization under study, Nigerian Bottling Company Coca Cola Plc to re-address the way and manner by which materials are procured with regard to cost consciousness
The research work would also be of benefit to private and public procurement entity when negotiating on either organization or government contract. Negotiation is a trick to win supplier’s heart to willingly enter into a business traction and not using authority or power.
The research work would add to the findings of the previous and future researchers who intend to study or have studied similar topic and will also help the other incoming researcher to build up on their findings.
As a procurement manager the knowledge acquired would be used at the field to practice the profession in acquisition of materials to enhance profitability of the organization. To also expose some development suppliers stand to benefit from the organization the supply materials.
1.5 Research Questions
i. What are the techniques for negotiation?
ii. What are the strategies for effective negotiation and how can negotiation enhance purchasing activity to function effectively as purchasing in the organization?
iii. What is the rate or extent of materials availability in the organization under study?
iv. How can coordination and management of supplier ensure or enhance cost reduction in material procurement, and how does negotiation team help the business in actualizing it cost reduction objectives.
1.6 Definition of Terms
Negotiation: this is the process of planning, receiving, and analysing used by the buyer and the seller, to reach an acceptable agreement or compromise is an aspect of business transactions of payment and so on.
Purchasing: This is used as a process of buying in the market, but in a broader sense, it is a professional term used when buying goods and services by organisations, companies, industries, commerce and corporation by a professional buyer.
Procurement: Is where large quantity of goods and services are exchanged for money with the aim of reselling them to industrial or ultimate consumer markets. Examples of these markets are distributors, wholesalers, retailers and associations.
Bargaining: Is an agreement to buy, sell or exchange made after discussions in order to arrived at compromise
Specification: a specification is a details description of item, its dimension, analysis, performance or other relevant characteristics in sufficient details to ensure that it will be suitable in all respect for the purpose it is intended or wanted.
Buyer: a buyer is a person who buys goods at a particular price without the technicalities involved being taken into consideration. He is not regarded as a purchaser in real sense.
Purchaser: is anyone from the professional to the top executive or any departmental member with the tag ‘Purchasing Manager’ that select suppliers and also have the responsibility for implementing the policies of the organization related to the acquisition of material, services, and production equipments or assets.
Competitive Bidding: is calling for bids and evaluating the bids to arrive at the best price.
Tactics: is expedient means of achieving an objective.
Service: it could be after sales services, delivery dates, sellers meeting, and providing information on materials availability.
Confrontation: is a situation where both sides refuse to bulge, which often result to surrender or no deal.
Persuasion: is a situation where one party knows best and will therefore subtly impulse his will on the other.
Dimension: this implies not only quoting the sizes of the various parts of articles, but also indicating the amount of tolerance which may be permitted in the sizes.
Material: Is an element of production that is used to produce a product.
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EFFECT OF TECHNOLOGY IN THE FIELD OF QUANTITY SURVEYING AND HOW IT AFFECT COST, LABOUR AND TIME
ABSTRACT
Quantity Surveying (QS) appears to be one of the few professions that have not been profoundly transformed by the application of the technological advancement offered by digital revolution especially in a developing economy like Nigeria. The paper examines the extent to which the Nigerian quantity surveyors (NQS) have been moving with the times of information technology. The aim is to discover the challenges faced by the professionals by examining the factors affecting the use and adoption of computer in a dynamic world of explosive growth of the information and communication technology (ICT). The study adopted a survey design methodology. It was observed that there was increasing yearly rate of adoption of computer in QS services, particularly among those QSs in their mid-career years. About 89% of the quantity surveyors have been using computer for project cost management services (PCMS). Almost all the respondents are performing word processing functions using computers while the proficiency level is indicated to be high in Microsoft Excel and Microsoft Word. About 44% of the respondents carried out spread functions using computer while about 45% wished to perform spreadsheet functions with computer. QSs’ attempt to computerize their services has been more of technology driven than process driven. Four elements of cost that were rated to be high with respect to income of the QSs are cost of original software, cost of branded hardware, cost of infrastructures to support computerization and cost of support
services by computer professionals.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The explosive growth of the information and communication technology (ICT) has had unquantifiable impact on business systems and processes .The global acceptance and widespread adoption of ICT has accelerated the dimensions of competition not only among organizations globally but among professions locally. The QSs ability to avail themselves with the emerging opportunities provided by the advent of ICT depends on the adoption of new technologies (Castle, 2002). Computer has promised to be a reliable tool in all spheres of human endeavour. Literature has documented the relevance of computer/computing to the industry (Shash and Al- Amir, 1997). Advances were made in various professions when such professions took advantage of technological tools available (Li, 1996 and Pollack-Johnson & Liberatore, 1998). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (CAD).
Information and Communication Technology (ICT), also known as information technology (IT) has radically transformed the way we live, learn, work and play (Capron 2000). Many companies in the construction industry do not generally appear to have appreciated the positive changes and advantages that the new technology was providing to companies in other sectors of the economy.
A major construction process demands heavy exchange of data and information between project participants on a daily basis (Masqsood et al., 2004). This makes the construction industry one of the most information-intensive industries, and requires close coordination among a large number of specialized but interdependent organizations and individuals to achieve the cost, time, quality and sustainability goals of construction project (Ugwu et al., 2005). ICT has been shown to be a vital tool in assisting the construction industry to cope with the increasing complexity of its product and services as well as the increasing demands of clients and regulators (Betts,1999), and to enhance construction productivity (Liston et al., 2000).
To asses the effect of ICT on construction in this regard, surveys on the use of ICT in the construction industries of various countries in different parts of the world have been carried out in recent times. They include surveys conducted in Canada in 1999 (Rivard, 2000), Nigeria in 2000 (Arif & Karam, 2001), Sweden in 2000, Denmark in 2001(Samuelson, 2002), Malaysia in 2001 (Lim et al, 2002). Turkey in 2001 (Sarshar & Isikdag, 2004) and Singapore in 2003, (Goh, 2005).
While most of these surveys have been carried out in highly developed European countries and Asian economics, only the Nigerian survey by Arif & Karam (2001) represent an emerging economy in Africa. Oladapo (2007) has also carried out a survey into the use of ICT in the Nigeria construction industry. However, his survey apart from it being limited to South West Nigeria, focused more on the level of computer literacy of construction industry professionals and mode of acquisition. Oyediran (2005) studied the awareness and adoption of information and communication technology (ICT) by Architectural, Engineering and Construction industry educators in Nigeria.
Adejimi and Iyagba (2007) compared E-construction technology for integrating surveying processes between Nigeria, Canada and the Nordic countries. Their study however revealed that the digital divide between Nigeria and the developed world is closing up as more and more computer facilities are becoming accessible. However, they also indicated that modern and advanced information technology facilities such as internet, intra/extranet, virtual reality tools, tele/video conferencing, construction robots etc are grossly inadequate. The intent of this research work is to ascertain the level of use of ICT in the Nigeria construction industry and also to determine the prospects with respect to the benefits, cost, risks and research and development needs.
Scholars have observed the implications of transferring quantities information from CAD systems directly to the quantity surveyor or contractor. Rivard, Froese, Waugh, El-Diraby, Mora, Torrres, Gill and O’Reily (2004) predicted that the evolution of IT will have a profound impact on how organizations in the architectural, engineering and construction (AEC) industry operate. This is already coming to pass. For example, there are pockets of reduction in paper-based operation in quantity surveying offices while electronic led- processes are leading to less dependence on taking- off sheets and other ancillary stationery. Honey (1998) reported that a large proportion of QSs in the United Kingdom have been using computers. In an earlier baseline study, Oyediran and Odusami (2004) examined the state of the art of computing by QSs in Nigeria at the turn of the last century.
The construction industry has recently witnessed a paradigm shift from traditional paper-based method of service delivery to electronic information exchange using Information Technology (IT), at least in the western world like UK. It is now evident that the adoption of Information Technology can enhance construction productivity and improve communications for effective decision-making and coordination among construction participants. The ability of the industry to avail itself of technology depends on the level of usage by construction participants including the Quantity Surveyor (QS) who plays a major role in the management of project success determinants, such as cost, time and quality.
It is apparent that we live in a dynamic world characterized by incessant technology change. The explosive growth of information and communication technology (ICT) otherwise shortened as information technology (IT) has had unquantifiable impact on business systems and processes (Rivard et al., 2004). Advancement in information technology has made possible fundamental changes in the method of practice in all businesses and industries although at different levels (Li, 2000). The global acceptance and widespread adoption has accelerated the dimensions of competition not only among organizations globally but among professions locally (Hampson and Tatum, 1994).
The construction industry with the aim of leveling their colleagues in other industries have embraced the use of information technology such as internet, computing, telephoning, satellite communication and electronic mailing to perform most, if not all of their activities (Ibidapo, 2000). The quantity surveyors’ ability to avail themselves of these emerging opportunities provided by the advent of information technology depends on the adoption of new technologies (Castle, 2002). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (Arif and Karam, 2001).
Rivard et al. (2004) opined that the evolution of information technology will have a profound impact on how organizations in the architectural, engineering and construction industry operate in the way other industries such as manufacturing and banking have adopted and benefited from long ago. He noted that this is already the case in many of the developed countries around the world. In lieu of this, Honey (1998) reported that the turn of the last century has seen a reduction in paper-based operation in quantity surveying (QS) offices in UK while electronic led-processes are leading to less dependence on taking-off sheets and other ancillary stationery. The quantity surveying profession in Nigeria has experienced significant changes over the past decade in terms of the scope and type of services provided within the construction industry (Oladapo, 2006). These changes have occurred primarily in response to changing industry/client demands, information technology developments, increased levels of competition for services and the vital role of the quantity surveying in achieving improved service delivery.
Moreover, given the increasingly global nature of construction industry obstinate by extremely high levels of domestic competition and resultant low profit margin levels, there is no doubt that the construction industry has to improve its information flow and project delivery mechanism (Wager, 1998). Thus, as information flow increasingly become electronic, quantity surveying computing facilities, software and databases will need to develop in a compatible manner. Nigerian quantity surveyors will need to adapt to changes in work patterns to improve their efficiency and develop new markets to maintain competitive advantage and enhance profitability through the adoption of IT. In summary, the Nigeria construction industry in general and the quantity surveying profession in particular are facing the challenges of effectively utilizing the rapid expanding technological environment in which it operates to its full advantage (Oyediran and Odusami, 2004).
Their study was limited to Lagos State of Nigeria and can at best be cautiously generalized. ITcon Vol. 10 (2005), Oyediran and Odusami, pg. Thus an update on the state of the art of computing by the professionals is necessary. The critical roles being played by the QSs in the procurement chain require that the professionals must not lag behind in the adoption of tools that promise to improve on their service delivery.
1.2 STATEMENT OF THE PROBLEM
It is a known fact that advancement in technology and evolution of information technology as dramatically change the way business is conducted by various professionals. It has reduced the cost of services, reduce costs, labour and saves time. The quantity surveying profession are not left behind, they have also embraced the use of this advanced form of technology in delivering their services. The researcher is therefore examining the effect of this technology in the field of quantity surveying and how it affect cost, labour and time.
Quantity surveying as a profession has been around since the 1820’s. Since the beginning the roles and duties of a Quantity Surveyor have changed a lot. There have been many challenges that the profession had to face and overcome in the past. The latest challenge that the profession of quantity surveying are facing is an acronym consisting of three letters: BIM. Building Information Modeling is most likely the biggest challenge that Quantity Surveyors had to face since the beginning of the profession. If BIM threatens to replace the Quantity Surveyor, how should Quantity Surveyors in Nigeria handle the embrace of BIM? Do you fight or join?
Other problems include incompetence in the use of the ICT as follows;
Inefficiency
Low profitability
Low quality production
Poor management of business process
Poor supply chain management
Inability to satisfy client needs
Increased cost of business process
Lack of standardization.
1.3 AIMS AND OBJECTIVES
1. To examine technology (BIM) and quantity surveying profession.
2. To examine the role of building information modeling (BIM) on quantity surveying practice.
3. To identify the effect of quantity surveying and cost management methods and tools in surveying.
4. To examine how technology affects cost, labour and time in the field of quantity surveying.
5. To examine the factors limiting the use of technology in the field of quantity surveying.
1. Does technology (BIM) improve quantity surveying profession?
2. What are effect of quantity surveying on cost management methods and tools in surveying.
4. How does technology affects cost, labour and time in the field of quantity surveying?
5. What are the factors limiting the use of technology in the field of quantity surveying?
1.6 SIGNIFICANCE OF THE STUDY
The construction sector contributes significantly to the GDP of a nation. In developing countries such as Nigeria, construction contributes up to 12 to 14 percent of GDP (Gann, 2000). In the developing countries (according to Dharwadker, 1979) investments in construction projects could be as high as 50 to 60 percent of national budgets.
In Nigeria, the construction industry was the dominant contributor to the nation‟s GDP in the 1980s, accounting for about 70 percent of the GDP (Planning committee on the National Construction Policy, 1989). This made the industry very strategic to Nigeria‟s development efforts. Unfortunately, however, the industry has been bedeviled by a combination of low demand and consistent low productivity and poor performance over the years (Manshued et al 1994; Olomolaiye, 1987; Aniekwu, 1995; Okuwoga, 1998; Adeyemi et al, 2005). This has reduced its contribution to the national economy to a mere 1 percent of the GDP in 2002 (AFDB/OECD, 2004). The industry is made up of an organized formal sector and an unorganized informal sector. The formal sector comprises small, medium and large scale according to their level of capitalization and annual turnover.
The few large firms (mostly foreign), which constitute just about 5 percent of the total number of contractors in the formal sector, control about 95% of the construction market, giving the small firms just about 5 percent share of the market. The results of this study will impact the Nigerian construction industry in the following ways;
Delineate the ICT application areas and the level of adoption.
Highlight the benefits of ICT application in construction at the strategic, tactical and operational levels.
Serve as a guide to construction organizations in the area of the cost of ICT adoption (both direct and indirect cost); and the risks involved.
Research and development.
1.7 SCOPE OF THE STUDY
This study will cover the effect of technology use in the field of quantity surveying and how it affect cost, labour and time of the project.
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 TERMS
Quantity Surveyor: The quantity surveyor is the person responsible for figuring out just what a construction project is going to cost. Quantity Surveyor is an expert that is concerned with financial probity in the conceptualization, planning and execution of building, civil and heavy engineering projects.
Building Information Modeling : Notwithstanding Schwegler (2001) definition of BIM (as the process of creating an information database for a project in which lifecycle information is expressed in an interoperable manner to create, engineer, estimate, illustrate and construct a construction project), BIM means different things to different people.
Cost Based Information Systems: In this work, cost based information systems are the information systems that store cost based information. While information systems process information in the same way (according to their classification), the information they process provides an insight into what they are called.
Times Overruns: Time overruns is defined as the extension of time beyond planned completion dates traceable to the contractors.
Cost overruns: Cost overrun is defined as excess of actual cost over budget. Cost overrun is also sometimes called “cost escalation,” “cost increase, or “budget overrun.” Cost overrun is defined as the change in contract amount divided by the original contract award amount.
Direct Labour Project Evaluation: Direct labour system is a method whereby the client design and produces his project by himself with the aid of his in-house professionals‟ void of the usage of contractors (Ogunsanmi et. al., 2003; Kadiri and Odusami, 2003).
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AN INVESTIGATION INTO RISK MANAGEMENT PRACTICES AMONGST QUANTITY SURVEYORS IN THE CONSTRUCTION INDUSTRY OF NIGERIA
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Quantity surveying is concerned with controlling and managing construction projects. The Nigerian construction industry is faced with uncertainties. With construction targets not being met and high rate of abandoned construction projects, there is great need for proper risk assessment and implementation. Managing risks in construction projects have been recognized as a very important process in order to achieve project objectives in terms of time, cost, quality, safety and environmental sustainability (Mills, 2001). Project risk management is an iterative process: the process is beneficial when is implemented in a systematic manner throughout the lifecycle of a construction project, from the planning stage to completion.
Risk management has become an integral process in managing construction projects. Construction project activities are to be well calculated in-order for the deliverable to be of great use and benefit to its stakeholders. To complete most construction projects on time, minimizing cost and wastages proper risk management techniques must be employed (Tchankova, 2002). According to Mills (2001), systematic risk management is expecting the unexpected or in other words it is a tool which helps control risks in construction projects and its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way.
Normally, in risk management process, the first steps will involves risk identification process which includes the prioritization process in order to identify and rank the risk based on its impact and seriousness. Risk that will have a greater impact on a project normally will be handled first and low impact risk will be handled later.
Construction project team consist of professional such as the architect, engineer, and the quantity surveyor that will help to assist and advice the client in order to meet all the project objectives in term of time, quality and cost. Awareness and knowledge on risk management is very crucial so that they will deal with the risk properly which will directly leads to project success. Due to this scenario, this research aims to identify the level of awareness of construction professional specifically Nigerian quantity surveyors towards risk management. Apart from that, it will also aim to identify how risk management being implemented in the Nigerian construction industry and also the potential barrier and challengers in the implementation of risk management specifically from the quantity surveyor’s point of view.
1.2 STATEMENT OF THE PROBLEM
Embarking on a construction project involves taking risks, as the Nigerian construction industry is not risk-free. No matter how small or simple is the project it is still can go wrong as soon as the two parties, the employer and the contractor signed a contract they have taken onboard the risk (Sawczuk, 1996). The individual in the construction industries that undertake various activities are heterogeneous since client, consultant and contractors have different roles and objectives (flanagan, 1995). Risk management in Nigerian construction industry is actually not widely being practiced.
According to Burchett (2009), Risk in construction, however cannot be eliminated, but it can be minimized, transferred or retained. However, the industry has a very poor reputation for managing risk, with many projects failing to meet deadlines and cost argents (Mills, 2001). In practice, normally in order to deal with the unexpected event, there will be an allocation about 10 percent from the estimated cost of the proposed construction project as a contingency sum. Earlier observation shows that the risk management process is not widely being implemented in Nigerian construction industry. For this reason, this research seeks to identify the barriers and challenges for the implementation of risk management in the Nigerian construction industry.
1.3 OBJECTIVES OF THE STUDY
The aim of this research is to investigate the practice of risk management amongst the construction practitioners specifically the quantity surveyor in the Nigerian construction industry.
In order to achieve the aim of the study, specific objectives for the study are:
To evaluate the quantity surveyor’s level of awareness and acceptance on Risk Management practice.
To identify the current practice of risk management amongst Quantity Surveyors’.
To examine the barriers and challenges to the implementation of risk management in construction project from the quantity surveyor’s point of view.
1.4 RESEARCH QUESTIONS
What is the quantity surveyor’s level of awareness and acceptance on Risk Management practice?
What is the current practice of risk management amongst Quantity Surveyors’?
What barriers and challenges face the implementation of risk management in construction project from the quantity surveyor’s point of view?
1.5 RESEARCH HYPOTHESIS
Ho: Awareness and acceptance of risk management practices do not aid quantity surveyors in attaining contruction project objectives
Hi: Awareness and acceptance of risk management practices aid quantity surveyors in attaining construction project objectives
1.6 SIGNIFICANCE OF THE STUDY
Findings of this study will aid Nigerian quantity surveyors in appreciating the importance of adopting proper risk management techniques in their daily jobs. Since risk management is not widely being adopted in Nigerian construction industry, this research will help to promote the practice of risk management among the industry’s players.
In addition to this, being an inter-discipline type of research, both the consultants and contractors and also the industry as a whole may benefit from the outcome of the research and have better understanding on risk management.
1.7 SCOPE AND LIMITATION OF STUDY
This research study will focus on risk management practices adopted by quantity surveyors in Uyo Local Government area of Akwa Ibom State, Nigeria. All findings and recommendations from the study are limited to findings and recommendations based on the chosen sample size.
In carrying out this study, the researcher was faced with time and finance constraints, as lectures did not give room for more time to extend the research time frame. Finance on the other hand made printing, transportation to cover a wider area difficult.
1.8 DEFINITION OF TERMS
RISK- This is the potential of losing something of value, weighed against the potential to gain something of value.
RISK PERCEPTION- Risk perception is the subjective judgment people make about the severity of a risk, and may vary person to person
PRACTICE- is the act of rehearsing a behavior over and over, or engaging in an activity again and again, for the purpose of improving or mastering it, as in the phrase “practice makes perfect
QUANTITY SURVEYOR- a Quantity Surveyor (QS) is a professional working within the construction industryconcerned with construction costs and contracts.
CONSTRUCTION- In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking. Normally, the job is managed by a project manager, and supervised by a construction manager, design engineer, construction engineer or project architect.
RISK MANAGEMNENT- is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
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Account Number: 0046579864
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