Project Materials

CHAPTER ONE

INTRODUCTION

1.1. BACKGROUND OF THE STUDY

The construction industry is vital since rapid economic development has increased the demand for construction of infrastructure and facilities around the globe. The construction industry also provides the basic living conditions for the sustainability and development of human life on the earth.

To cope with an ever-increasing population, pressure on land, and growing economic activity, construction projects are in increasing demand and activities are booming in many countries (Zhang, Wu, Shen & Skitmore, 2014). More also, projects and initiatives are implemented to ensure sustainable growth of nation economy and to create extensive linkages within the economy.

To implement these projects Success and to meet the functional aim of the projects within their service time, an efficient Project Management practice needs to be adopted from the planning stage to end. Frequently, those that are involved in the project handling, fail to take a proactive approach to overcoming the uncertainties [PMI, 2012, 2008].

As a result of this, project delays and budget overruns are usually encountered due to an overlook of potential risk. Inadequate information and ineffective management of project not only caused project cost overrun, completion delays but also termination before completion and negatively impact the project team’s reputation.

To improve the chance of Performance and reduce the potential failures, the Performance criteria, and uncertain factors should be carefully identified, assessed and monitored (Kuo & Lu, 2013). In spite of the fact that project management systems help an organization to reduce the time it takes to develop and market products, to utilize resources and increase their global presence;

it is imperative that organizations also utilize tools that enable them to surmount challenges such as: poor time management, overspent budgets, unpredictable teams, lack of a clear flow of project resources, poor project prioritization, delayed decision making and lack of teamwork among project members.

During the duration of a project, project manager’s grapple with these challenges while having to control risks, minimize uncertainties and ensure that all the decisions are made to improve the project. To achieve this, organizations should consider utilizing project management systems to assist their project managers in the selection, planning, organization and control of their various investment portfolios and projects (Lt. Col (Retd) Chitkara et al., 2007).

While implementing these projects, project managers encounter unexpected problems such as sub-par documentation, project planning, misguided decision making and the failure or stalling of projects as a result of poor time management.

Project management information systems assist managers in the various life cycles of the project to generate ideas, manage risks, manage stakeholders and manage knowledge and information generated by the project long after the project is done.

Therefore, using PMS has become important in the effective and efficient management of projects and in providing support to the project manager so as to enable them to deal with the attendant challenges that come with project management (Lt. Col (Retd) Chitkara et al., 2007).

It is important to plan, monitor, control, evaluate and staff projects while making sure that the quality of the project is sustained and that the attendant risks are managed accordingly. All projects need to be managed using project management information systems; this ensures that the projects achieve their objectives while dealing with any challenges that may arise throughout the implementation of the project.

Proper project management is important for organizations if they are to achieve the goals of their projects; the practice of project management is a very challenging as evidenced by the fact that most projects are completed late and overshoot their initial budgets (Raymond et al., 2008). Good examples of this phenomenon are the Athens Olympic stadium which overshoot its budget by 9 billion Euros and the Canadian Arms Registry whose construction was completed 10 years after the prescribed time.

The El-Alan construction industry plays a vital role in the country’s economy, yet it has been plagued with bad publicity of cost overruns, uncontrolled and unrealistic schedules, accidents, poor workmanship, conflict among project team members, abandoned and unfinished private and public construction projects (Ting, Khoo, & Wong, 2009).

It is now common to see structures collapsing, roads cracking, bridges toppling and what could be next, show some down pit situations for the construction industry in Nigeria as has left a bad impression on the minds of the public. There is a need and urgency to prevent the failure of projects especially due to poor project management practice in the industry.

Nowadays, projects are by far more complicated than ever before due to large capital investments, embrace several disciplines, widely dispersed project participants, tighter schedules, stringent quality standards, escalating cost, environment shocks, increasing stakeholders’ power and advancement in ICT (Adeyemi, 2013).

Project performance may be judged on the basis of how well the resultant product or service supports organizational governance. To ensure the Performance or performance of the project, the project manager must have the requisite knowledge of project management. Developing a more comprehensive framework is essential to improve the Performance rate of projects since more organizations are expected to manage multiple projects in order to achieve competitive advantages (Too & Weaver, 2014).

A very comprehensive project management framework should consider other elements to include cultural, structural, practical, and personnel (Akewushola et al., 2012). Due to the myriad challenges faced by this construction industry. Hence, the study is to identify and assess the critical success factors (CSFs) and the current practice of project management that affects project performance at the implementation stage.

1.2 STATEMENT OF THE PROBLEM

Project performance measurement is crucial in managing projects as it enables the project manager to establish challenges in budget and scope in time and devise proper mechanisms that address these challenges (Dissanayaka & Kumaraswamy, 2013).

However, Turner and Muller (2015) observe that those that are involved in the project handling fail to take a proactive approach to overcoming the uncertainties. As a result of this, project delays and budget overruns are usually encountered due to an overlook of potential risk. Inadequate information and ineffective management of project not only caused project cost overrun, completion delays but also termination before completion.

Projects continue to be common in every entity of existence additionally to the policy makers in regards to both locally and internationally developments, however, the deprived performance of projects and the disappointments of project appeared to be a common scenario (Gregg & Ana, 2016).

Nearly all the projects were not accomplished in the estimated timeline, quality and budget (Rotich, 2014). Just as mirrored by Ika, Diallo and Thuillier (2012) “project failures have become a routine with majority of the projects working under complexity of risks and uncertainties, external pressures, unforeseen actions, changing needs, unreliable restrictions and contradictory resources flow, all these are harmful to projects’ Performance in Nigeria.

Project firms amongst El- Alan Construction Company, Nigeria are faced daily with complicated tasks associated to project implementation (Achieng, 2016). These challenges are allied amidst excessive workload, hectic activities, fragmentation and superficiality. Several studies have been undertaken on monitoring and evaluation on project performance.

For instance, Rogito (2010) carried out a research on the influence of monitoring and evaluation on YEDF projects and found out that projects are poorly implemented because few implementers have trainings in Monitoring & Evaluation, poorly done baseline survey study leading to the failure of the project. Gathoni and Ngugi (2016)

study investigated drivers of effective project performance in Nigeria and observed that the stakeholders are barely updated on various CDF project progress. Nevertheless, the study used a case study which involves a small sample. This study therefore, sought to investigate the influence of project management practices on the performance of projects in Nigeria.

1.3. AIMS AND OBJECTIVES OF THE STUDY

The major aim of the study is to examine management on project performance.  Other specific objectives of the study include;

1. To examine the project management practices carried out by the organizations for management of the projects.
2. To examine the factors affecting effective project management and project performance.
3. To examine the impact of project management on project performance in construction industries.
4. To examine the tools and techniques of project management in construction industries.
5. To examine the relationship between project management and project performance in construction industries.
6. To suggest ways to improve the quality performance of construction projects.

1.4. RESEARCH QUESTIONS

1. What are the project management practices carried out by the organizations for management of the projects?
2. What are the factors affecting effective project management and project performance?
3. What is the impact of project management on project performance in construction industries?
4.  What are the tools and techniques of project management in construction industries?
5. What is the relationship between project management and project performance in construction industries?
6. What are the ways to improve the quality performance of construction projects?

1.5. RESEARCH HYPOTHESES

Hypothesis 1     

1. : There is no significant impact of project management on project performance in construction industries.
2. : There is a significant impact of project management on project performance in construction industries.

Hypothesis 2

H0: There is no significant relationship between project management and project performance in construction industries.

H1: There is a significant relationship between project management and project performance in construction industries.

1.6. SIGNIFICANCE OF THE STUDY

The study sought to determine the effect of project management body of knowledge in construction industries. The results from the study could benefit project management practitioners by providing specific constructs that can be applied towards improving the current approaches to project management.

To the academicians, the study will form the basis for research into other areas of performance and project management. Project management is indispensable for business results, and thus the research will be able to create strategic dialogue on issues of project performances that reflect the realities of capital project management by the government. It will further aid project managers in construction industries on how to apply body of knowledge in project management.

1.7. SCOPE AND LIMITATION OF THE STUDY

The study is restricted to management on project performance of El-Alan Construction Company Nigeria limited.

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

Project: Temporary organization that is needed to produce a unique and predefined outcome or result at a pre-specified time using predetermined resources.

Project Cost Management: A series of activities for estimating, allocating, and controlling costs within the project.

Project Management: Application of knowledge, skills, tools and techniques to project activities to meet project requirements.

Project Management Practices: Management and administrative activities and decisions from the “cradle” to the “grave” of a project

Project Performance: The totality of time, cost and quality performance of a given project.

Project Risk Management: Structured approach for the identification, assessment, and prioritization of undesirable events; followed by planning of resources to minimize, monitor, and control the probability and impact of these events.

Project Scope Management: The sum of processes needed to ensure a project containing all the work required, and only the work required, to complete the project Success and is concerned with defining and controlling what is and what is not included in the project.