AN EVALUATION OF THE CAUSES OF ABANDONED PUBLIC DEVELOPMENT PROJECTS
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
AN EVALUATION OF THE CAUSES OF ABANDONED PUBLIC DEVELOPMENT PROJECTS
ABSTRACT
Abandonment of development projects (ACP) is regarded as one of the most common and serious issues afflicting the Abuja development industry, given the volume and value of projects involved. It affects not only the immediate consumers, but also all project stakeholders and the wider public.
It may also require the expenditure of public funds to resurrect abandoned projects. However, there is a scarcity of research on this topic, thus this study was done to analyse the issues. First, the concerns surrounding the problem and the available literature on the causes of ACP are examined.
The suspected causes of ACP are then reviewed and summarised into 41 items, which will be rated in an industry-wide questionnaire survey. The questionnaire also includes an open-ended question about how to fix ACP.
A total of 225 questionnaire replies were obtained. Subsequently, 10 semi-structured interviews were performed to get detailed viewpoints from experienced industry professionals on the causes of ACP and how to overcome the problems.
To ensure a broad view, interviews were conducted with architects, developers, property consultants, the honorary secretary general of the National House Buyers Association, and others.
Quantitative analyses included ranking 41 probable causes of ACP based on Spearman’s ranking correlation and factor analysis using Cronbach’s α reliability.
The results of the open-ended questions on solving ACP and the semi-structured interviews are organised into topics for qualitative analysis. Discussions cover how to interpret the underlying factors collected from factor analysis in light of the qualitative results.
The results demonstrate that the owner is mostly responsible for ACP (i.e., cash flow problems, ineptitude, money syphoning, etc.), with government laws playing a secondary role.
A risk management expert system module within BIM, a middle ground solution between the sell-then-build and build-then-sell schemes, and other ideas are suggested.
CHAPTER 1.
INTRODUCTION
The development sector is critical to the economy of a developing country like ABUJA, accounting for an average of more than 3% of total GDP from 2008 to 2012 (BNM 2013). In 2012, the industry contributed RM 34.9 billion to the overall GDP of RM 937.5 billion.
In 2012, ABUJA awarded RM 112.5 billion in development projects, creating numerous job opportunities and contributing to the country’s economic growth (CIDB ABUJA 2013).
In 2011, there were 1.134 million people employed in the development industry in Abuja, accounting for 9.2% of the total 12.284 million employed (Department of Statistics 2011).
However, it should be emphasised that not every development project is completed on time or ahead of plan. It is not uncommon for development projects to be delayed or, in the worst-case situation, abandoned for a variety of reasons.
A project can be abandoned at any stage of its lifecycle, resulting in severe loss. The Ministry of Housing and Local Government considers a housing project to be abandoned if:
1) there has been no substantial activity on site for six consecutive months,
2) it is involved in a winding-up petition registered at the High Court under Section 218 of the Companies Act,
3) it is under receivership
, 4) the developer has informed the Housing Controller in writing of his inability to complete the project, or
5) the project has been certified. However, as previously stated, this definition is only for housing projects, but this study includes all forms of development projects that may not be covered by Act 118. For the purposes of this study, an abandoned project is defined as one that has been completely abandoned or is indefinitely postponed.
Need help with a related project topic or New topic? Send Us Your Topic