Building Construction Industry – Challenges facing Building Sector
BUILDING CONSTRUCTION INDUSTRY – CHALLENGES FACING BUILDING SECTOR
Building construction industry is essential to us all. We benefit from high quality housing, hospital or transport infrastructures that are constructed efficiently.
Oyefeko (1991) said that Construction in Nigeria is one of the pillars of the domestic economy.
According to national housing policy (2006), the industry has an output of roughly 11% of GDP and employs around 1/3% of employment nation wide.
This research work deals with the challenges facing building construction in a depressed economy, challenges of non availability of building construction Engineers, poor economy, depressed economy, non-compliance with building codes and regulating bodies and government policies and support. These topics are made in other to improve our construction industry.
Depressed economy is a period of time when these is a lot of unemployment and poverty because there is very little economic activity example the world depression of the 1930s Macmillan school dictionary (2004).Krugman (2010) Depressed economic is a rare and extreme form of recession, a depression is characterized by its length by abnormally large increases in unemployment, falls in the availability if credit for building developers and other Business man often due to some kind of banking or financial crisis, shrinking output as buyers dry up and supplier cut back on production, and investment, large number of bankruptcies, these including sovereign debt defaults, significantly reduced amounts of trade and commerce, especially international as well as highly volatile relative currency value fluctuations, most often due to devaluations. Price deflation, financial crisis and bank failures are also common elements of a depression that are not normally apart of a recession.
Ruhl et al (2005) an economic depression is a severe economic downturn that lasts several years. It is indicated by two consecutive quarters of a falling GDP of a country or collective world economy. An economic depression is more severe than a recession.
Broemmel (2012) an economic depression is an extreme type of recession. There is a good deal in economic depression. A commonly applied standard that is utilized to as certain if an economic depression exists is an actual decline in the Gross domestic Product (GDP) that exceeds 10 percent. The uour- Dictionary website defines an economic depression as a prolonged period of recession, or a significant and prolonged downturn in the economy. Characteristics of economic depressions include declining business activities, falling prices, rising unemployment, increasing inventories, public fear and panic. It also moves the country’s economy to enters a period of negative growth, real income declines, unemployment rises, and industrial production wavers. If a recession continues for a long time, the economy moves into an economic depression.
Egan (1998) it is not easy to sustain radical improvement in an industry as diverse as construction but we must do so to secure the future of the Nigeria construction industry, Nigeria institute of building (NIOB) Cooperate Register Builder of Nigeria (CORBON) and the construction professionals in the industry must also challenged itself to change, so that working together, we can create a modern industry ready to over come the economic melt down or depression and face the new millennium.
Rezgui (2007) Building Organizations are currently facing important and unprecedented challenges in an ever dynamic constantly changing, and complex environment several factors, including the pace of technological innovation and the globalization of the economy have forced business and industry to adopt to new challenges triggered by an ever sophisticated society characterized by an increasing demand for customized and high quality services and products in various segments of building industry.
Rezgui and Zarhi, (2006) the construction industry is renown for its complex project-based structure, reflected in its virtual enterprise like modus-operandi.
Rezgui and Miles (2009), it is currently facing some major challenges in terms of climate change and sustainability, including the need to reduce green house gas emission from existing and new builds.
Hopfe (2009) said “this is reflected in increasing complex regulations (environmental, energy, waste etc). That must be assessed and addressed by specialists to satisfy planning consents and public concerns. Also, the current financial downturn and the concerns for quality, timely and to budget delivery against the threat of financial penalties is causing the major building industry players to reduce their circle of specialists and sub-contactor represented by a large proportion. Moreover, the construction industry is dominated by small and medium entrepreneur (SMES) that exhibit a wide divergence in their capabilities.
The functions of a Building determine the (forms of construction) or what the building is to be use for such as shelter, commercial, domestic, industrial, institutional or public buildings. According to Agbataekwe (2004) said Building are now designed and constructed to meet the ever complicated needs of man than in the olden days.
Agbataekwe (2004) the efficiency, convenience, life span, economic viability, appearance and aesthetic value if any building depends solely on quality of materials and workmanship used. In a depressed economy clients want to use low standard materials and cheap labour to build.
Orenuga (1986) look at the building industry, since the time we had political independence show that a lot of many Nigerians have made attempts to establish companies engaged in building construction business but they have either failed or frustrated out.
According to Wikipedia, the free encyclopedia. The stock market crash of 1929 marked the start of the greatest depression in modern history with some effects felt through 1945. In Economics a depression is a sustained, long-term downturn in economic activity in one or more economics. It is a more severe downturn than a recession, which is seen by some economists as part of the modern business cycle. Mendel (2009) economic depression is a rare and extreme form of recession theme is also differences in duration of depression across all definition. Some economist refers only to the period when economic activity is declining. The more common use, however also encompasses the time until economic activity has returned close to normal levels. In the United States the national Bureau of economic research determines contractions and expansion in the business cycle, but does not declare depressions.
1. Generally, periods labeled depressions are marked by a substantial and sustained shortfall of the ability to purchase goods relative to the amount that could be produced using current resources and technology (potential output).
2. Another proposed definition of depression includes two general rules; (a decline in real GOP exceeding 10% or (2) a recession is briefly defined as a period of declining economic activity spread across the economy. In other words each depression is always a recession, sharing the same starting and ending date and having duration (According to National Bureau or Economy Research NBER (2010)
The question posed is what are the challenges facing building construction in a depression economy especially now that there greater emphasis on mass housing development.
1.2 STATEMENT OF THE PROBLEM
It is generally believed that the foundation of any good building that will stand the test of time lie in effective implementation of the architectural drawing, the use of building professionals such as Builders, Engineers, Architects, Quantity surveyor, structural Engineers, and mechanical Engineers, Electrical Engineers whose knowledge and skills are utilized on large building project.
Agbataekwu (2004) the efficiency, convenience, life span, economic viability appearance and aesthetic value of any building depend solely on quality of materials and workmanship used. Rezgui (2007) building industries are constantly facing several challenges; the factors are (1) pace of technological innovation (2) the globalization of the economy.
Depression of the economy have forced building industry to adapt to new changes triggered by an ever sophisticated society characterized by an increasing demand for customized modern buildings, high quality services and products in various segments of building industry
The major problems facing building construction in a depressed economy like Nigeria is poverty, unemployment, poor economy and corruption which led to non-compliance of building codes and building regulations. This is why the researcher determine to find out solution to these problems that has affected the use of building professionals and team of building construction specialist the use of specified materials and building construction specifications with technical poor building maintenance, non-compliance with building regulations and standards concernment and building regulation bodies efforts to maintained standard is not fording results.
It is with this in mind that the researcher seeks to find out the challenges facing building construction in a depressed economy.
1.3 PURPOSE OF THE STUDY
The main study was designed to critically identify, examine and investigate challenges facing building construction in a depressed economy the study specifically finds out whether
1. Why depressed economy affect the use of building professional or team of specialist in a depressed economy.
2. Identify why depressed economy affect the use of specified materials and construction according to specifications with construction techniques
3. Why depressed economy affect maintenance of building in a depressed economy.
4. Determine why depressed economy affects non-compliance with building regulations and standards.
5. Determine whether government and building regulation bodies effort is yarding result in maintenance standard in a depressed times.
1.4 SIGNIFICANCE OF THE STUDY
The findings from this research would benefit many people in the following ways:
The findings of this study will be beneficial to Abia state government, ministry of Housing and urban development, lecturers, teachers, students, Nigeria research council, Nigeria institute of building (NIOB) infrastructure concession regulatory commission (ICRC), construction consultants, contractors, real Estate surveyors/value. Building contractors, cooperate register Builders of Nigeria (CORBON), Building construction professionals in Nigeria and builders.
It will also help the building construction companies and high institutions on recruiting, training and retraining of staff in a depression times, as the information generated would serve as a database for them. The result of the findings would help building client, the governments, builders, professional bodies and building team of specialist to jointly improve working condition of building professional members in organizing seminars, workshops and conferences.
1.5 RESEARCH QUESTIONS
The following research questions were formulated to guide this study.
1. How would depressed economy affect the use of building professional and team of specialist in a depressed economy?
2. How does a depressed economy affect the use of specified materials, construction specifications and techniques
3. How does depressed economy affect building maintenance?
4. How would depressed economy affect the use of building code and building regulations
5. How would government and building regulations bodies effort yarding result in maintenaning standard in a depress economy
A null hypothesis was formulated to be tested at 0.05 level of significance
Ho: There is no significance difference in the mean rating of building construction in a depressed economy.
1.7 SCOPE OF THE STUDY
The study was delimited to Abia state in south east state of Nigeria. In terms of content, it focused on challenges facing building construction in a depressed economy.
REVIEW OF RELATED LITERATURE
This chapter reviews literature under the following headings
1. Conceptual framework
2. Building construction practice in Nigeria
3. Depressed economy
4. The effect of depressed economy on building construction work
6. Related empirical studies
7. Summary of the literature review
2.1 CONCEPTUAL FRAMEWORK
2.2.1 Concept of building construction in a depressed economy.
The building construction industry is essential to us. We benefited from high quality housing, hospital and transport infrastructures that are constructed efficiently. According to Elom (2003) unpublished master degree thesis, building bushes with leaves, trees, sticks and mud etc before the coming of the colonial masters Oyefeko (1999) said that construction in Nigeria is one of the pillars of ht domestic economy. According to National housing policy (2006) the building industry has on output of roughly 11% of employment nation wide. This research work deals with the challenges facing building construction in a depressed economy challenges of non availability of building construction Engineers, poor economy, non-compliance with building codes and regulating bodies and government policies and support. These topers are made in other to improve our construction industry.
Egan (1998) said that it is not easy to sustain radical improvement in an industry as divers as construction but we must do so to secure the future of the Nigeria construction industry. Nigeria institute of building (NIOB), Corporate register building of Nigeria (CORBON) and the construction professions. The industry must also challenged itself to change, so that working together, we can create a modern industry, ready to over come the economic meltdown or depression and face the new millennium Rezgui (2007) building organization and currently facing important and unprecedented challenges in an ever dynamic, constantly changing complex environment several factors, including the pace of technological innovation and the globalization of the economy have forced building industry to adapt to new changes triggered by an ever sophisticated society characterized by and increasing demand for customized and high quality services and products in various segment of building industry Rezgui and Zarh: (2006) said, the construct industry is renown for its complex project-based construction reflected in its virtual enterprise like modus-operandi Rezgui and miles (2009), it is currently facing some major challenges in terms of climate change and sustainability including the need to refuse green house gases emissions from exiting and new builds.
Hopfe (2009) said ‘this is reflected increasing complex regulations (environmental, energy, waste etc) that must be assessed and addressed by specialists to satisfy planning consents and public concerns. Also, the current financial downturn and the concerns for quality, timely and to budget delivery against the threat of financial penalties is causing the major building industry payers to reduce their circle of specialist and sub-contractor represented by a large proportion of small and medium entrepreneur more over, the construction industry is dominated by small and medium entrepreneur that exhibit a wide divergence in their capabilities.
2.2 BUILDING CONSTRUCTION PRACTICE IN NIGERIA
The function of a building determine, what such building are to be used, such as shelter, commercial domestic industrial institutional or public buildings Agbataekwe (2004) said building are now designed and constructed to meet the ever complicated needs of man than in the olden days. According to Agbatekwe (2004) the efficiency, convenience life span, economic viability, appearance and aesthetic value of any building depend solely on quality of materials and workmanship used. He re-emphasized that the durability or failure of material qualities and workmanship used. Occurrence of defect in different section of a building can result from unprofessional design decision poor construction techniques, lack of proper maintenance, non…. Compliance with building regulations and standards.
Almost all the difficulty is further increased by the inability of indigenous contractor to offer more attractive salaries and other services than their foreign counterparts. Onipede (2001) the domination of major contract / project by foreign companies in Nigeria does not augur well for the country. In 1977 Nigeria building society (NBS) took over the over view of building construction with view of restructuring it. The result was the inauguration of the federal mortgage bank of Nigeria (FMBN) the Nigerian industrial development Bank of Nigeria (NIDB) and other financial institutions were established all as ways of improving house financing in Nigeria Onamode (2008). According to wash (1979) stated that building is that aspect of building construction that corns the use of block, bricks, mud, marbles, tiles, mortar and concrete in erecting structures. This involves the basic techniques of architectural drawing which essentially is the same as those for other forms of drawing or drafting.
The scope of architectural drawing entails special application of some conventional symbols and contraction details which need the contribution of a team of specialist such as the builders, Engineers, Architects, Quantity surveyor, structural engineers and mechanical engineers, electrical engineers whose knowledge and skills are utilities on large building project.
According Thanni (1988) in a standard building project, one person may perform some functions in several capacities because of his extensive knowledge and experience in building materials and constructional methods the architect appears as the client of the building owner and gives professional advice at every stage of the drawing the mechanical engineer is responsible for planning and installation of plumbing works, Heating, ventilating system and other mechanical works. The electrical engineer plans the necessary circuit diagram and fixture of electric light, installation of conduit pipes/wiring and fixing of bracket fittings, fire alarm system if require and other electrical works. The builder is in changed of the building in the site at every stage and the total production of the building construction. Most building programs involve some stages such as;
The following is synopsis of the procedure and process usually adopted in the preliminary planning of a building project for example, if a piece of land has been acquired for the purpose of erecting a building the owner of such land may conceive an idea of the type and shape of building choice, or he may have perfectly an open mind or he many have seen one built to his likeness.
2.2.2 The Design Process.
According to Abubakar (2000), the quality of a project has two distinct, but interrelated features, namely, quality of design and quality of performance, when the design phase has equally witnessed some notable developments such as CAD, the take up of opportunities offered by these developments. According to Obiegbu (2004) the design of a building can no longer be the total responsibility of one person he warned that to ignore dwellers preference and builders contribution to project design especially in a democratic society harbor danger.
According to Mecaffer and Edum Fotore (1999) the design of every project is every important and crucial, but most often design are hurriedly done, sometimes too ambitions and tend to be unbuildable very expensive or difficult to maintain due to selection or poor material Ransom (1998), design are made without reference to the site investigations details, too sketchy, do not take cognizance agents of deterioration of the project and often left in the hands of draughtsman.
Ransom (1998) pointed out that in BRE Report, 50% of project failures are linked to design 41% to site operations and only 6% to other causes, Chudley and Greeno (1998), advocated for site visits by designers to collect systematically and record all the necessary data which will be needed or will help in the design and construction processes of the project, be conversant with effects of environmental elements and be able to match initial cost against running cost in the choice of materials and projects must be designed for ease of construction making maximum use of standard components and processes.
2.2.3 Construction Panning Process
According to Illingworth (1994) planning of construction work is the process of analyzing formulating and organizing the actions for carry out a project which involves the understanding of what has to be built, than establishing the right method of construction use of right building team of specialist such as Building Engineers, Architects, Quantity surveyors, structural Engineer, Electrical Engineers and Mechanical Engineers and to employ all safety measures in the cause of the work. Whatever stage of building construction may been planning takes place, prequalification, tender, pre-contract or contract, the first essential requirement is to have a thorough understanding of what has to be built
According to Apochi (1995) etal. The planning of construction work must therefore stand with a detailed assessment of the work to be carried out.
However, the Nigeria construction industry today is filled with mediocre, political contractors who have little or no knowledge of the construction process and management of the projects and personnel. These contractors often employ quacks and technician instead of professionals who’s technical and management capabilities are limited. According to Apochi (1995) pointed out the importance of proper planning and recruitment of qualified professionals to plan projects before moving to site and no site seems to have been lost on many Nigeria contractors in the industry famous for poorly executed work, project abandonment.
According or Lawal (2002) also opined that inefficient planning and foresight have been responsible for time and lost overruns in many projects.
In depressed economy proper planning that will increase performance achieve fewer delays and efficient handling of problems, improve site management and provide future feed back is being advocated infact the fundamental issues in depressed times is to increase the efficiency and quality of construction in Nigeria. The process and the production team should be integrated to deliver value to the client efficiently and eliminate wastes I all its forms it is a process that utilizes the full construction team, bringing the skills of all the participation to bear on delivering value to the client.
2.2.4 Construction Procurement
Procurement is the standard way or guidelines for the pre-qualification of bidding for building contracts this is done by a qualify building professional, the procuring entities must have been trained through institution of higher learning and have experiences in building construction industries, who must have all the equipments and tools for the job he is going for. Standard guidelines for procurement are; According to Mustapha(2005) where a procuring entity has made a decision with respect to the minimum qualifications of suppliers, contractors or submit applications to pre-qualify, it shall set out precise criteria upon which it seeks to give consideration to the applications and in reaching a decision as to which supplier, contractor, or service provider qualifies shall apply only the criteria set out in the prequalification or procurement documents and no more.
Procuring entities shall supply a set of prequalification documents to each supplier, contractor, or service provider that requests them; and the price that a procuring entity may charge for the prequalification document shall reflect only the cost of printing and provision to suppliers or contractors and service providers.
According to wahab (2005) the setting up of the budget monitoring and price intelligence unit popularly know as ‘Due process” in 2001 is as a result of open abuses to rules and standards in the award ad execution of public contracts in Nigeria.
The abuses were evident in over-invoicing, inflation of contract costs, proliferation of white elephant projects and diversion of public funds through all kinds of manipulation of the contract system and price intelligence unit (BMPIU) 2006, a diagnostic study conducted in 2001 into the state of federal government public procurements revealed hundreds and billions of naira over the last two decades.
These loses arose as a result of flagrant abuse of procedures for award of public contracts, inflation of contracts and lack of transparency, lack of competence based competitor and lack of merit as the fundamental criteria for award of public contracts.
In this depression time, Nigeria cannot afford to continue in this manner, hence there is need to reduce the large scale corruption and waste that have characterized contracts should be awarded to only competent contractors who have both the technical and managerial knowledge of the projects to be carried out, quantity, quality, safety, time and cost required. The industry should seek other forms of procurement such as partnering private project financing that have long term relationships based on clear measurement of performance and sustained improvements in quality and efficiency.
2.2.5 Construction Stage And Site Operations
According to Anaele (2000) the building construction skills are ability to mould blocks/bricks of different sizes, use various building construction tools prepare building using different methods, use instruments like theodolite and dumpy level to take levels in the site, mix, in correct proportions, building and foundation concrete, place blinding and foundation concrete, Erect foundation blocks, build blocks and brick walls build coursed and uncoursed rubble wall, construct hollow floor, construct timber floor, construct timber floor, build cavity walls, fix different types of the doors and window frames fix iron bunglery to door and windows, fix mortise and rim locks construct and erect form work for columns, Beams, Lintels, slabs, stairs and upper floors, fix reinforcement rods correctly in position, construct different types of arches, construct fire place and chimney, place capping on parapet, provide correct concrete cover to reinforcement rods, cure concrete using different methods, compact concrete using manual and mechanical vibrators, plaster and render walls and so fit of upper floors, construct, different types of stair in-situ, construct pre-cast concrete stairs, construct wooden stairs, lay different types of wall and floor ties, lay floor screed and other monolithic floor finishes, construction of ceiling using different types of materials, construct septic tank, inspection chamber and soak away pit with correct falls.
Install water closet, bath tube and other sanitary appliances, install wash hand basin and other appliance in the kitchen, construct window hoods, construct threshold to door, construct cantilever floor, understanding cantilever and interpreter structural lay precuts floor finishes, fix different types of cladding. According to Harris and Mecafer (1995) the followings are the quality actions required by a contractor in a traditional contract where design in undertaken by an independent designer on receipt of tender documents should carryout tender review, visit the project site and prepare and submit quality assurance policy.
1. On award of contract, carry out contract review to ensure that none of the document is contradictory and determine project requirements.
2. Set up site team made up of experienced and professionally qualified personnel
3. Prepare project quality plan (PQP) a document setting output the specific quality practices resources and sequences of activities relevant to the particular project and submit for approval and for use
4. Conduct suppliers and sub-contractors assessment and appraisal
5. Place sub-contractors including any quality assurance conditions where necessary for the work packages
6. Receive detailed quality plans from sub-contractors for approval prior to commencing their work.
3.1 DEPRESSED ECONOMY
The world is passing through one of it most difficult periods in what has been widely referred to as financial meltdown. The capitalist financial system which has been forced on the would by the western has virtually collapsed. According to Bala (2009) depressed economy obvious contradictions as follows; previously profitable failed companies and banks is been nationalized e.g. Northern Rock in uk and Bear sterns in us monopolies and antitrust (or anti-competition laws in been disregarded (e.g forced merger between lipoids and HBOS in the Uk). Hundreds of billions of tax payers money has been proved into the private banking system to lend money to commercial profit making financial institutions interest rates have been at despite relatively high public borrowing and dept (e.g. US) contradicting prudent fiscal rules 100% financial liabilities of private profit making companies (banks) have been guaranteed by governments (e.g Ireland, Nigeria) car manufacturing private corporations given credit guarantees to stimulate investment (e.g us) government has used tax payer money to buy shares in insolvent private corporations (e.g. UK) government has nationalized house mortgage lending (e.g. freddies mac and fannie move bail outs in us).
According to Dutse (2008) wrote that “the capitalist principle of freedom of ownership once sacrosanct has also proved in the west” He added that “the collapse of the western market system brought about manifestation of contradictions in their market policies and principles the global financial crises (or meltdown) started to show effects in the middle of 2007 ad into 2008” which was obviously a direct consequence of illegal and corrupt banker” these bankers present a scenario of an inflated, exaggerated view of the us economy which is reflected by the level of cash in corporate books larger than its real size (real Economy) which is based on the assumption that the real money will not be tapped into and therefore, it is possible to deal with an assumed larger (virtual) value for money. Examples of such scenarios include; Banks borrowed even more to securitization some banks didn’t need to rely on savers as much than as long as they could borrow from other banks and sell those loans in as securities, bad loans would be the problems of whoever bought the securities. Some investment bank(like Lehman Brothers) get into mortgages buying them in order to securitize them and then sell on.
According to Sampson (2008) depression is a negative economic growth. A recession is commonly explained as a state of negative economic growth for up to two consecutive quarters from corporate failures, the recession has started taking effect on national economics, for the millions of people that may not have witnessed the great depression of the late 1920s and early 1940s often described as the most devastating economic depression in modern history and other opportunity is looming for them to appreciate just how tough those times really were.
What started out in the united states as mere pessimistic conjectures in August 2007 (sub-prime mortgage crisis) has degenerated into chaotic panic as key corporate bodies (especially large financial institutions, the very pillars of the global economy come crumbling like pack of poorly arranged cards.
The socio-economic confusion that was the aftermath of the September 11, 2007 terrorists attack on the United States is nothing compared to the unfolding scenario except that the current scenario does not directly involve loss of human lives. According to Uzor (2010) this is like the great depression of the 1930s this looming once is again triggered of by events in the United States and which are rapidly engulfing the entire globe. Business titans are failing, force major economics are being consummated rapt: banks are failing to perform their traditional functions giant insurance firms are taking refuge in governments.
4.1 THE EFFECT OF DEPRESSED ECONOMY ON BUILDING CONSTRUCTION WORK
The nation’s quest to reduce its enormous housing deficit has continued to flounder due to the prevalence of obsolete laws that govern land acquisition process.
Another major impediment to effective housing delivery in a depressed economy country is lack of requisite technology for building construction.
According to Onugu (2004) technology is an indispensable component of effective housing delivery because the level of technology determines the nature of houses built and their durability. High cost of building materials especially clement has also been a bane to housing delivery in the country. A significant proportion of available cement in the country in imported with attendant high shipping cost and prohibitive tariff that are subsequently transferred to consumers.
According to Bala (2009) in depressed economy some bank loaned even more to have an excuse to securities those loan running out of who to loan to, banks turned to the poor the sub-prime, the riskier the loans rising house price led lenders to think it wasn’t too risky; bad loans meant repossessing high-valued property some banks even started by buying securities from others. Collaterised debt obligations, or CDOs (which are even more complex forms of securitization) finance problem involves. The financing of the project. The investment of the funds. The maximization of share holders wealth.
According to Enebeli-Uzor (2010) Nigeria housing challenges are multifarious and multidimensional in scope and complexities they include poor financing difficulties in land acquisition and poor technology.
Despite the avalanche of housing finance schemes in the country inadequate finance is unarguably still the single most important impediment to housing delivery in Nigeria owing largely to the enormous deficit and the structure of the nation’s financial services sector .Finance remains the most important pivot to housing delivery.
The availability of finance determines access to other key inputs of land, labour, building materials and infrastructure. Despite the numerous well articulated government programmes to meet the nation’s housing needs, funding remains a major challenge. According to Windapo (2009) Nigeria’s housing finance system is still rudimentary and under developed and this has been a bane to achieving set housing delivery targets.
The prevailing pervasive level of poverty also does not encourage savings and investment in the sector. The absence of a legal framework for efficient operation of hosing finance system has also contributed to the problem of funding in the section.
A major obstacle to this challenges is availability of land for housing development is the land use Act of `1978, which introduced a tenure system, based on rights of occupancy and brought all land in the country under government control (Nigeria institute of building 2009) land is a major input in housing delivery and lack of access to land impedes housing development by the private sector where land is readily available, even low income individuals have been able to build houses for themselves.
In a depressed economy building construction industries crashing stock markets are crashing house owners are faced with homelessness; parliament members technocrats treasury officers are working through the treasury officers are working through the nights struggling to fathom a way out. According to zenith economic quarterly (2009) at last the bubbles have burst; the seemingly sophisticated financial structure and credits maneuvering that have characterized most western economics for decades are fast crumbling. On Thursday September 25,2008, Ireland became the first country in the Euro zone to enter into recession as a result of the raging global economic crises Irelands were is an upshot of a rupture after decades of boom in its real estate sector the mainstay of the country’s economy which accounts for over 20% of its GDP.
House prices fell eighteen straight months in a row, contracting the economy by 0.5% in the second quarters of 2008 after an earlier decline of 0.3% in the first quarter its first growth slide in 25 years France was next as reports fattened in from its statistics agency on October 3, forecasting that the country’s GDP will drop by 0.1% the third and fourth quarters, after plunging 0.3% in the second quarter-France’s recession worry is exacerbated by growing unemployment (now 7.4%). High 0.1 price declining exports and the global credit crunch (Akinwale, 2008) Nigeria and the African continent will also see productivity slowing slightly, form 6.3% in 2007 to 5.9% in 2008 and 6.0% in 2009: According to Akinwale (2008) securing finance for projects can be a challenge at any time with these limitations imposed by the international credit crunch, this goal can seen unachievable.
Building developers are reporting excessive credit restrictions banks are cutting off credits and loans for viable new housing projects credits for loans have tightened significantly over the past year and banks are asking for additional equity based on low appraisals that underestimate the value of hosing projects in addition, there are increasing reports of tightening terms or conditions on outstanding loans are requiring partial upfront payments (Windap, 2009).
The global economic crisis would pose challenges to building construction in Nigeria in these ways; inadequate
5.1.1 Inadequate Or Non-Availability Of Building CONSTRUCTION ENGINEERS
According to thanni (1998) building construction details which the contribution of a team of specialist such as the Engineers, Architects, builders, quantity surveyors structural Engineers electrical engineer and mechanical engineers whose knowledge and skill are utilized on large building projects.
According to Obiegbu (2004) building construction can on longer be the total responsibility of one person. According to Nakashima (2010) building contractors, site workers also are handing their hard hats on public work. According to Prock (2010) other challenges was keeping key personnel gainfully employed. He says “while were got a large backlog, many of our projects are starting slow, until we got key people waiting to go to work.
According to Kobatake (2010) “A constant challenge is employing experienced project and field personnel”. According to good follow bros (2010) “were got the best employees right now but they have a lot of potential demands’ especially if members of our families have been laid off. According to Skelton (2010)” our challenge is helping them keep focused on safety we don’t want to lose sight of the overall goal, which is to work safe and be able to go back home to our families” skelton adds that in tough economic times, “people change industries just to survive and they don’t always come back. The industry loses quality people who could take it to the next level”.
According to Anaele (2000) the acquisition of building construction skill in technical colleges and other colleges depends more on the teachers. Building constructing teachers should be professionally qualified and occupationally competent as to impart the required skill to the students
5.1.2 Poor Economy
According to Uzor (2010) the positive growth potential for the Nigeria economy in 2010 needs to be matched by the development of effective transmission mechanisms to channel funds into productive activities.
The fact that money is significantly out of productive sectors in Nigeria isn’t a new development. However the situation has been further extended since the crisis in the financial markets began in 2008. Since then neither banks nor the stock exchange has been shaped spending in private. Like the government, the spending by both individual and business units has centered on maintaining exiting operating capacities.
A more to change this spending pattern came through the recapitalization process in the banking sector in 2007. However much of the gains made have been lost in the crisis that followed and the source to the capital. The capital market has been down for the past two years.
With the development, the dream of building banks to build a bigger economic capacity has faded. The globally recommended approach to dealing with the poor economic is stimulatory spending. The target is to apply government spending to prop up productive activities and in the process keep aggregate expenditure from falling.
The quality of government spending is of much more importance to Nigeria where money has for a long time remained out of productive activity in a poor economy the critical sector that lack in a country and power, works, education, agriculture and security have worst budget performances (zenith bank economic quarterly 2010). According to Samson (2008), the capital budget is planned to improve by about 30% to 1.3 trillion in 2010. The spending pattern is the reason why Nigeria is unable to use oil wealth to create economic prosperity for her people while most oil exporters ran budget surpluses during the 1999-2008 oil price build up, Nigeria consistently maintained fiscal deficits, and much of the old proceeds are lost to corruption. Thereby depriving the country of a great opportunity for economic development.
According to Leondar-wright (2001) as economy tumbles, the poor will suffer most many are ill prepared for this recession while the poverty rate fell to 11-3 percent during the 1990s economic expansion, the poor have become poorer, according to American recent census report.
According to Wright (2001) the stimulus plan proposed by the house progressive caucus would redirect tax cuts to lower-income Americans, expand unemployment benefit, increase federal spending on health care and invest in long neglected public works such as affordable housing and school repair.
In 2000, the average poor person’s income dropping further below the official poverty lines, setting an all-time record millions of non-poor families struggle to make ends meet at wages barely above the federal poverty line of $ 13,738 for a family of three. States will find their tax revenue dropping just as applications for benefits increase, and for the first time, federal matching funds will to automatically arrive to make up the shortfall. What will happen to jobless families turned down by cash-strapped states with new stricter eligibility rules for welfare?
5.1.3 Non-Compliance with Building Codes and Building Regulation
Rethinking on construction was initiated by the report of the construction task force chaired by sir john Egan in 1998 in Uk while in Nigeria the emergence could be traced to the national housing and construction policies in 1991, as well as the production of the national building code by the relevant professional bodies and government. The insurance act of 2003 has basic principles that are simple and that includes client leadership integrated teams throughout the delivery chain and respect for people.
Apochi and Abdulhameed (2009) building code tend to seeks to challenge the current waste and poor quality arising from existing structures and working practices. They continuous by saving each building tends to be a unique solution to a complex array of inter dependent site problems characteristics and conditions. Legal restriction intended junction, different resource selections different bye-laws codes/regulations, each building has different client, constituent, contractors and suppliers.
5.1.4 Abnormal Unemployment Rates.
Abnormal rates of unemployment contribute to challenges facing building construction in a depressed economy. Abnormal employment is best defined as a sustained level of unemployment that reaches the level of 10 percent or more for a period that extends beyond a period of six months (Broemmel 2012). According to national housing policy (2006) building industry has an output of 11% of cross domestic product (GDP) and employs around 3.00% employment nation wide
According to US national (Bureau of economic research (2010) a commonly applied standard that is utilized to ascertain if an economic depression exist is an actual decline in the cross a domestic products that exceeds 10 percent
Abnormal unemployment cause non professional to come in to building construction industry as labour force either as technician or as a labourer such as masons, carpenters, iron benders or iron fabricators. when there is high level of unemployment this group fine their way to building construction site to look for what to do as labourers.
Quakery has been a challenge to building construction (unskilled labourers).
5.1.5 Maintenance of Building
The useful life of any building is governed by a number of several factors. These include the sufficiency of the design, constructional detail and the methods use for its construction. It is also depend upon the way such building is used and the maintenance policies and practice undertaken during its life Adenugu (1999) the life span of the individual materials and components has a contributory effect upon the life span of the building. It is not a question of how long a component will last but of how long a component will be retained. The particular circumstances of each case will have a significant influence upon component longevity. These will include the original specification of the component, its appropriate installation within the building, interaction adjacent materials, use and abuse, frequency and standards of maintenance. Local conditions and the acceptable level of actual performance by the user. The management policies used by the owners or occupiers are perhaps the most crucial factors determining the length of the component lives Adenugu (1996).
According to Oyefeko (1999) the following are major objectives of building maintenance: To ensure that the functional requirement of the facility are attained at all times. To create a conducive and tenantable accommodation for owners and occupants/users. To enhance the quality of building structure to meet modern day requirement to prolong the life span of the building to preserve the physical characteristic the building and associate services so as to reflect fewer breakdown and thereby reduce the probability of early failure. To ensure that assets are kept at reasonable standard and at least cost. To maximize the economic and financial returns from the use of the building. To ensure the safety of the users/ occupants
Adenugu and Raheem (2009) the rapid deterioration of buildings and their components can be attributed to many different causes. An emphasis upon initial building costs without considering the consequences of cost in use. Inappropriate design and detailing of buildings and components use of materials and components that have sufficient data on the on their longevity. A lack of understanding of the various mechanisms of deterioration attention given to the maintenance of the building stock. Inappropriate use by owners and occupiers. According to Celestine (1989) the three main components of building and their average life spas can be identified thus
a. Building shells; which include major physical elements such as structural frames, floors, the building exterior envelops and vertical transportation/services core. These have a life spear of 40 to 50 years
b. Fitting-out elements; these include ceilings, partitions and floor finishes. They have an average life as short as 5 years
c. Building services; these include mechanical and electrical services, telecommunication and data lighting and interior transportation system. Their life span ranges form 5 to 25 years
Smith (2003) planning the transition for the implementation of best maintenance practices is essential, timelines, personnel assignments, documentation and all the other elements of a well planned change must be developed before changes actually being to take place. The proactive maintenance as parts of new approach should be addressed in the transition plan.
(i) maintenance skill and training
(ii) Work order system is the primary tool for managing labour resources and measuring department effectiveness planned preventive maintenance task/procedure maintenance engineering development section should be established predictive maintenance techniques and procedures should be performing and maintenance inventory system should be part of the plan.
5.1 CHALLENGIES OF DEPRESSED ECONOMY AFFECT THE USE OF BUILDING PROFESSIONALS AND TEAM OF SPECAILIST INA DEPRESSED ECONOMY¬
Summary of data in respect to the use of building professionals and team of specialist in the depressed economy had a grand mean of 3.3. Unqualified building professional and poor working team ratio had high scales. Absence of some building professional in construction of a building will pose a problem during depressed economy 3.3 inadequate number of building specialist had mean 2.8. poor payment of contract affect building construction had mean of 2.9 building professional do not go to site on daily basses had mean of 3.5. and building professional do no go to sites when technicians and artisans are still in the site had mean of 3.5. building professional lack dedication to duties had mean of 3.5. The findings were expected. Most clients in Abia state us unqualified building specialist tot build their house In most building constructions site, building professionals are absence even when technicians are still working. Poorly payment of contract sum and that made it possible for building professionals not be present in the project execution and involves in the buying of building materials, this would enhance building construction in a depressed economy The finding of this study were inline with Thanni (1998) and Obiegbu (2004) who observed the importance of the use of building professional and team of specialist in building construction. The viewed that apart from using qualified building professionals was the most important factor in the achievement of excellent building construction. Anaele (2000( viewed that unqualified builders who want to succeed must acquired building skill most go to technical colleges and building department of the universities as to avoid frustrating, discouraging in the discharge of duties in the building industry. Building professionals are pillar for a successful building construction. Building construction could not be freely functionally without building professionals.
5.2 DEPRESSED ECONOMY AFFECT THE USE OF SPECIFIED MATERIALS, CONSTRUCTION SPECIFICATION AND TECHNIQUE
Summary of data analysis in the table two (2) reviewed that depressed income affect the use of specified building materials. This constitutes challenges in building construction in a depressed income. Most client do buy inadequate and specified material, some builders do accept to use poor quality materials which do not suit the building specification in a depressed economy, Client do not provide office in a site for building professionals this affect building construction in a depressed economy, poor relationship between the building professionals and client affect building construction in a depressed economy. Poor relationship between banks, builders, and building professional affect the buying of quality building material in a depressed economy had high means of 3.6, 0.00, 3.1, 3..1, and 3.1 respectively on a 4.point scale.
These findings were expected that depressed economy affect the use of specified building materials, construction specification and techniques. This are as a result of unbalanced relationship between building professional and the client of building construction during a depressed time (economy) the findings of this study was consistence with Egan (1998) It is not easy to sustain radical improvement in an industry as diverse as construction but we most do so to secure the feature in the Nigeria construction industry.
He view that the NIOB, CORBON and construction professionals in the industry most also challenged itself to change, so that working together we can create a modern industry ready to overcome the economic depressions in the same view Omamode (2008) indicated that because of great imbalance in the ratio of building professionals and banks. The result was inaugurations of the (F.M.B.N), (N.I.D.B) and other financial institution were established all as ways of improving housing financing in Nigeria.
Today what obtained in the construction industry was reverse. This constituted great challenge facing building construction economy. This poor relationship definitely discourages building professionals.
5.3 DEPRESSED ECONOMY AFFECT BUILDING MAINTANANCE
In table 3, the summary of data analysis revealed that depressed economy affect maintenance of building which constituted great challenge in building industry.
Non-involvement of maintenance experts during design stage in depressed economy had mean of 3.5 on 4 point scale.
Maintenance are not into consideration in a depressed economy had mean of 3.5 on the same 4 point scale maintenance considerations are purely technical decision are taken by non building experts in a depressed economy had mean of appropriate maintenance cycles for building maintenance in a depressed economy had a mean of 2.6 on a 4-point scale. Lack of adequate funds unwilling or reluctant interest to support to support in the area or research and development of building construction in a depressed economy had a mean of 2.8 on a 4-point scale. Lack of data and poor information processing handicap effective building maintenance had mean of 3.1 on a 4-point scale. The findings from this work were not far form what was expected experience have shown that effective building maintenance make environment and building to look aesthetic long-lasting, with stand weather to have rest of mind.
The inability of the client to involve building maintenance experts during design stage and some times maintenance are not into consideration even when maintenance to be consider that decision are taken by non-building expert. Lack of adequate funds and interest to support research development in the area of building construction.
This was in line with Adenuga and Raheeme (2009), Hopfe (2009) maintenance in depressed economy should reflected increasing complex regulations in the environment energy and waste that must be assessed and addressed by specialists to satisfy planning consents and public concerns Rezgui and miles (2009) challenges of climate change are sustainability effective maintenance is very important. No adoption of maintenance cycle for building in a depressed economy all these would negatively affect the building construction in a depressed economy.
5.4 THE USE OF BUILDING CODE AND REGULATIONS
The 4 shoed that building industries experience non-compliance of building code, standard and regulation and that these were crucial to effective building construction in a depressed economy, indiscipline and ignorance on the part of building professional affects building construction in a depressed economy has mean of 3.4 on the 4-point scale
Clients pressure on the builders affect non-compliance to standards had mean of 3.7 on a 4-point. The quality of management of a given organization influence the scale of efforts and extent of compliance to standard in a depressed had mean of 3.0 on a 4-point scale absence of efficient monitory system of building professionals by the regulatory bodies affect non-compliances in a depressed economy had mean of 3.5 on a 4-point scale. Natural deterioration due to age and environment of Abia state Nigeria affect non-compliances to standard had mean of 3.6 on a 4-point scale poor economy of clients and management of materials influence non-compliance of standard in a depressed economy had mean of 3.7 on a 4-point scale.
The findings were in line with what was experienced in the building construction in Abia state of Nigeria. This corresponded with Abdulhameed and Apochi (2009) building code tend to seeks to challenge the current waste and poor quality arising from existing structures and working practices abdulhameed and Apochi (2009) each building tends to be a unique solution to complex array of interdependent site problems characteristics and conditions legal restriction intended junction, different resource selections different bye-laws codes/regulations, each building has different client, consultant, contractors and suppliers non-compliance with building code constituted challenges in building construction
5.5 GOVERNMENT AND BUILDING REGULATORY BODY EFFORT YARDING RESULTS IN MANINTENANING STANDARD.
Table 5 presented data analysis on government and building regulatory body effort in making standard government should make a framework or law for the establishment and operation of primary mortgage institution by private entrepreneurs in building industry as to provide low interest rates and long-term credits to builders had of 3.4 on 4-point scale. Government should make legal regulatory framework for land acquisition so as to help building development had mean of 3.1 on 4-point scale.
Building regulatory bodies do not organize seminar training and workshop for their members on regular basis, if they do they do not etherified it during depressed time had mean of 2.9 on 4-point scale government building departments and building professional bodies and regulatory bodies do not go for intensive correction and supervising exercises regularly had low mean of 2.4 on 4-point scale. The professional body do not go for intensive supervision this was in line with Obiegbu (2004) building design and construction can no longer be the total responsibility of one person Chudley and Greeno (1998), advocated for site visits by designers to collect systematically and record all the necessary data which will be needed or will help in the design and construction processes of the project.
This attitude of not going supervision constituted a major challenge in building construction in a depressed economy.
5.6 INFLUENCE OF LOCATION ON CHALLENGE FACING BUILDING CONSTRUCTION IN A DEPRESSED ECONOMY
Location had been considered based on the 30 items which consisted five factors and an independent variable. The 5 research questions revealed, yielded positive that they constituted great challenge to building construction in a depressed economy. Each item was further subjected to test of significant in rating of building professionals in rural and those in the urban building construction companies.
All the 30 items rejected the hypothesis. This showed that there was no significant difference in the mean rating of building professional who were in the rural building construction companies and those who were in urban building construction companies on challenges facing building construction. This shows that location influence building construction in a depressed economy. These findings wee expected, because most building construction companies located in the rural areas were poorly resourced compared to their urban counterparts most of those companies in the rural areas qualify builders, some had.
The finding corresponded with Onipede (2001) the domination of major contract/project by foreign companies in Nigeria does not augur well for the Country. Inadequate number of building specialist constituted a challenge to building construction in a depressed economy. The results of research findings in table 6 indicated that the t-calculated in the table were less than the t-critical table which was 1.98. The null hypothesis was rejected. This showed that depressed economy affected the location of building construction.
SUMMARY, CONCLUSION AND RECOMMENDATION
In this chapter, implications of the findings were discussed limitations of the studies were stated suggestions for further studies, recommendation, summary and conclusion of the study were presented.
6.1 IMPLICATION OF THE RESULT
The implications from the findings of this study were important to state government, government at all level, building constructors, building professionals, teachers, lecturers, Ministry of Housing and Urban Development and society at large.
The findings revealed that there was challenge facing building construction in a depressed economy the study revealed that inadequate or none-availability of building construction engineers was directly linked with the challenges facing building construction in a depressed economy poor economy constituted great challenges. The findings again showed that non-compliance with building codes, building regulation and standard constituted challenges facing building construction in a depressed economy. The study also revealed that depressed economy.
The study also revealed that depressed economy affect maintenance of building to great extent constituted challenges facing building construction in a depressed economy. It showed again that abnormal unemployment rate cause non professionals to come into building construction industries and poor labour force, these encourages the use unspecified building materials.
Based on the findings of this study, the following recommendation were made
1. There was the need for clients to use building professionals and building specialist to building their houses
2. There was the need for clients to involve maintenance experts at the design stage
3. There was the need for building professionals to adhere strictly to the use of building code and standard in the discharge of their duties.
4. Building professional should be resourceful and show more dedication to their work as well as encourage good relationship with the client and professional bodies in the building industries.
5. There was the need for the government as matters of urgency to make laws in favour of builders both those urban and rural for land acquisition, low interest rates and long-term credits from banks
6. There was the need of the building professional bodies and government to be going for effective monitory whether professional builders are been use on the site and whether specified materials are also been use during the construction of building
From the discussion of the major finding of the study it would be concluded that there was challenges facing building construction in a depressed economy. Building construction industries experienced great inadequate of building construction engineers. Building construction professionals became less dedicated to their work poor relationship existed among client builder/professional bodies and it constituted challenges to building construction in a depressed economy.
BUILDING CONSTRUCTION INDUSTRY – CHALLENGES FACING BUILDING SECTOR