CAUSES OF CONSTRUCTION PROJECT FAILURES AND ABANDONMENTS IN NIGERIA
1.1 BACKGROUND TO THE STUDY
Abandoned projects and construction failure including construction projects and other civil engineering infrastructure development project like houses, churches, schools, roads, bridges, dams, tunnels, air port, sea port etc. litter the whole Nigeria. Osemenan (1987) reported that Nigeria has become the “world’s junk-yard of abandoned and failed projects worth billions of naira and it is greatly unthinkable that Nigeria blessed with so great potentials in the construction projects and construction industry can experience such magnitude of project failure and abandonment. According to another report by Kotangora (1993) there are about 4000 uncompleted or abandoned project belonging to the Federal Government of Nigeria with an estimated cost of above N 300 billion which will take 30 years to complete at the present execution capacity of government, also according to him this issue of abandonment and construction project failure is been left without adequate attention for too long which is now having a multiplier effect on the construction industry in particular and the national economy as a whole.The construction projects and construction industry plays a very dominant role in the economy of any nation. A healthy economy usually experience an increase in construction projects and construction activities, but in a depressed economy, the incidence of project abandonment and construction failures tends to be more prevalent.Akindoyeni (1989) qualitatively reasoned that some of the causes of project abandonment and construction failure in Nigeria are deaths of client, inability of client to attract fund and lack of good planning.
The abandonment of development projects is the act of discontinuing any activities or maintenance works on such development project within a time frame of the contract agreement and with no intention of returning back to the development (Spelman, 1993). Similarly, O’Flaherty (1993) while reflecting on property development projects suggest thatit is when an owner or developer is ceasing to provide the required maintenance management to a developed property. There could also be construction failure due to improper planning.
However, real property development projects being a capital intensive undertaking should be critically analyzed toascertain its feasibility and viability before embarking on it. But, on several occasions and as it had been observed,governments, contractors and agencies have abandoned development projects mid-way into construction and completion.
The causes and effects of these development projects abandonments and construction failure are not just peculiar to a particular reasonrather cut across several reasons (Ayodele and Alabi, 2011), and as well as creating a total dwindling effects on the valuesof developed properties located close and within the vicinity. The expected prominence of any earmarked developmentprojects is to be completed, while at the same time, adding values to the built environment aesthetics. Although,development projects are temporary endeavors undertaken to create a unique product and services with a defined beginningand ending date (Gardner, 2005). The accomplishment of such purposes should be realized at all times otherwise needlessof such development (Gardner, 2005). The development projects specific in the study framework is infrastructural projects(such as; house, electricity, road, schools, and drainage). However, the study purpose is to investigate and assess the causes and effects of development projectsabandonment and construction failure in Nigeria.