Delay is one of the biggest problems construction project faces in Nigeria. Delay can lead to many negative effects such as project failure, disputes between stakeholders and also economic instability. Even though various studies have been considered in the causes and effects of delays in Nigeria, these studies seldom discuss how risk management could be integrated to lessen the delay in construction projects in Nigeria. Systematic risk management is expecting the unexpected; it is a tool which helps control risk in construction projects. The objective of study is to: (1) to determine the impact of delay in Nigeria (2) to understand the rate of delay in construction project in Nigeria (3) To find the root event that causes construction delay in Nigeria (4)Discover the level of effective systematic risk management that is involved in construction project in Nigeria. In all the 150 structured questionnaires that were sent to three constructions firm, there was a response rate of 80%. Typical result shows both hypotheses (1) Delay has a great impact on the massive project failure and hypothesis (2) Systematic risk management approach could help to mitigate delay in construction project in Nigeria, was tested and accepted. The study recommended that risk management can help lessen delay in construction project if applied in a systematic approach. To consult more Economic essay sample, please see at Bộ Luận Văn Thạc Sĩ Kinh tế
In partnership with LJMU (MBA) Project Management Dissertation Supervisor: Paul Taaffe “Incorporation of risk management as a framework for delay mitigation: A study from the Construction project in Nigeria” Written by: Arogundade Abayomi (1641288) Date: 12-08-2013 Word counts: 20086 Table of Contents List of tables/ illustrations………………………………………………………… Declaration……………………………………………………………………………8 Acknowledgement ……………………………………………………………………9 Abstract………………………………………………………………………… ….10 Introduction…………………………………………………………………… 11 1.1 Rationale for Topic……………………………………………………… 11 1.2 Risk Management in brief………………………………………… 13 1.3 Need for the present study…………………………………………… 15 1.4 Suitability of the researcher…………………………………………….… 16 1.5 Approach to the dissertation…………………………………………….….17 1.6 Recipient for this research………………………………………….…… 18 1.7 Scope Limitation………………………………………………………… 18 1.8 Organization of the dissertation……………………………………….……19 Literature Review………………………………………………………… .21 2.1 Project Management…………………………………………………… ….21 2.2 Risk Management……………………………………………………… ….23 2.3 Delay Mitigation………………………………………………………… 27 2.4 Construction/ Nigeria……………………………………………………… 33 Research Methodology…………………………………………………… 41 3.1 Introduction………………………………………………………………….41 3.2 Research Design……………………………………………………… 43 3.2.1 Research Question…………………………………………………….43 3.2.2 Research objectives……………………………………………… .44 3.2.3 Research hypothesis………………………………………………… 44 3.3 Structure of research method…………………………………………………… 45 3.4 Research philosophy…………………………………………………… ……………45 3.5 Research Approach…………………………………………………………………… 47 3.6 Research Strategy………………………………………………………………………48 3.7 Research Choice……………………………………………………………………… 49 3.8 Time Horizon……………………………………………………… ………….…… 50 3.9 Sampling……………………………………………… ……………………… 51 3.10 Data collection……………………………………… ………………………………54 3.11 Data Analysis………………………………………… …………………………… 55 3.12 Plan………………………………………………………… ……………………….56 3.13 Limitation…………………………………………………… ……………… 57 3.14 Personal bias……………………………………………………… ……………… 57 3.15 Ethical implication……………………………………………… ………………….58 3.16 Time Allocation……………………………………………… …………………… 59 3.17 Cost…………………………………………………………… ……………………59 3.18 Time period Allocate……………………………………………… ……………….59 Data Analysis……………………………………………………………… …………… 60 4.1 Introduction……………………………………………………… ……………… 60 4.2 Structure of data Analysis…………………………………………… …………….60 4.3 Age and Demographic section……………………………………….………….… 61 4.4 Findings…………………………………………………………………… .68 4.4.1 Objective 1………………………………………………………………… …68 4.4.2 Objective 2…………………………………………………………….… 72 4.4.3 Objective 3…………………………………………………………………… 77 4.4.4 4.5 Objective 4………………………………………………………… 85 Conclusion……………………………………………………………………………92 Conclusion and Recommendations…………………………… ……………….……… 93 5.1 Discussion……………………………………………… ………………………… 93 5.1.1 Hypothesis 1………………………………………… ……………… .94 5.1.2 Hypothesis 2…………………………………………… …………… .96 5.2 General Conclusion………………………………………… ……………………….99 5.3 Recommendations……………………………………………….………………… 100 Personal reflection on own learning and development……………….…………………102 6.1 Reflection on process……………………………………………….……………… 102 6.1.1 Information Gathering strategy……………………………….………….…….103 6.1.2 Specific Academic resources………………………………………………… 104 6.2 Reflection on sources…………………………………………………………….… 104 6.2.1 Assumption………………………………………………………….……… 106 6.2.2 Selection of resources………………………………………………….….… 106 6.2.3 Lesson learned in finding………………………………………………….….107 6.3 Reflection on dissertation Formulation……………………………………… …107 6.4 Reflection on your learning……………………………………………… 109 6.4.1 Learning Style…………………………………………………………… 109 6.5 Development skill………………………………………………………… .112 6.5.1 Information and communication skills…………………………………… ….112 6.5.2 Personal Management skill………………………………………….…… … 112 6.5.3 Cognitive skill…………………………………………………….……… …113 6.5.4 Interpersonal skill…………………………………………………… ……… 113 Bibliography………………………………………………………… ………………… 115 7.1 Books…………………………………………………………………… …….…….115 7.2 Journals………………………………………………………………….……….… 118 7.3 Websites…………………………………………………………………….……… 125 Apendix…………………………………………………………………… 126 8.1 Questionnaire……………………………………………………………….….… 126 List of Figures/ illustration Research Onion………………………………………………………………42 Time Period Allocate…………………………………………………… .59 Gender………………………………………………………….…………….62 Age……………………………………………………………….………… 63 Nationality………………………………………………………….……… 64 Job description……………………………………………………….…… 65 Years of experience…………………………………………….……………67 Construction Management……………………………………….………….68 Delay Frequency…………………………………………………….………70 10 Delay on Execution………………………………………………….………71 11 Delay on Closure………………………………………………… ……… 72 12 Project failure…………………………………………………… …………73 13 Dispute…………………………………………………………… ……… 75 14 Increase in cost……………………………………………… …………….76 15 Communication barrier………………………………………… …………78 16 Level of corruption…………………………………………… ………… 79 17 Contractor competency………………………………………….….……….81 18 Contractor experience to Project………………………………….……… 82 19 Stakeholders influence…………………………………………….……… 83 20 Scope creep influence…………………………………………….……… 85 21 Project awareness………………………………………………… ……….87 22 Knowledge competency………………………………………….…………88 23 Level of risk……………………………………………….………….…… 90 24 Systematic risk Management…………………………………….….……… 91 25 Research Category………………………………………………….………105 26 Kolb’s learning Styles……………………………………………….…… 110 Declaration I hereby declare that no portion of the work referred to in this dissertation has been submitted in support of an application for another degree or qualification or any other university or Institution of learning Furthermore, all the work in this dissertation is entirely my own, unless if referenced in the text as specific source and included in bibliography Signed: Arogundade Abayomi Anthony Date: 12-08-2013 Acknowledgements: As complicated as this thesis was, I was fortuned enough to have some support and guidance of some very special people, who I cannot but acknowledge First and foremost, I would like to appreciate the almighty God, the author and finisher of this work He has been with me constantly guarding and helping me to sail smoothly through this academic period I would also like to offer my heartfelt gratitude to my supervisor, Dr Paul Taaffe, who has been of great support throughout my thesis It is only because of his patience, knowledge, suggestions and directions that I was able to complete this work I would also like to thank my lecturers Dr Alan Graham and Dr Nicole Gross for their support and input to this research My deepest gratitude goes to my parent, Sir and Lady Arogundade, who supported my ambition to my Masters abroad and stood by me all through the program You didn’t only walk but left a longtime print in my life To you I dedicate this work To my siblings: Folashade Arogundade, Taiwo Arogundade and Kehinde Arogundade, thank you guys you kept me going I cannot but mention the support of my better half, Opeyemi Ikuseru for her love and patient, and how she finds me amazing despite my flaws and weakness To my friends: Mobolaji Obisesan, Damola Adekanmbi, Tolu Banjoko, Seun Taiwo, Mary Fiona What can I really without you? I cherish all your input And to my darling sis Christiana Popoola, thank you for time taken to prove read this work You are the best Abstract Delay is one of the biggest problems construction project faces in Nigeria Delay can lead to many negative effects such as project failure, disputes between stakeholders and also economic instability Even though various studies have been considered in the causes and effects of delays in Nigeria, these studies seldom discuss how risk management could be integrated to lessen the delay in construction projects in Nigeria Systematic risk management is expecting the unexpected; it is a tool which helps control risk in construction projects The objective of study is to: (1) to determine the impact of delay in Nigeria (2) to understand the rate of delay in construction project in Nigeria (3) To find the root event that causes construction delay in Nigeria (4)Discover the level of effective systematic risk management that is involved in construction project in Nigeria In all the 150 structured questionnaires that were sent to three constructions firm, there was a response rate of 80% Typical result shows both hypotheses (1) Delay has a great impact on the massive project failure and hypothesis (2) Systematic risk management approach could help to mitigate delay in construction project in Nigeria, was tested and accepted The study recommended that risk management can help lessen delay in construction project if applied in a systematic approach It is hoped that these findings will guide efforts to enhance the effectiveness of construction project in Nigeria 10 7.2 JOURNALS: Abdelgawad Mohamed, Fayek Robinson Anunah (2010) “Risk Management in the Construction Industry using combined Fuzzy FMEA and Fuzzy AHP” Journal of Construction Engineering and Management Vol.10, pp.1061 Business Sources Complete, EBSCOhost [Online] (Accessed: 12 June 2013) Abdul Rahman.H, Berawi M.A, Berawi A.R Mohamed O Othman, Yahya I.A (2006) “Delay Mitigation 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“Understanding and improving your risk management capability: Assessment model for construction” Journal of Construction Engineering & management Vol 136(8), pp.854-863 Business Sources Complete, EBSCOhost [Online] (Accessed: 24 March 2013) 124 7.3 WEB SITES: Abd Karim Nur Alkaf, Ismail Abd Rahman, Aftab Hameed Memmon, Nurhidayah Jamil, Ade Asmi Abd Azis (2012) “Significant Risk Factors in Construction Projects: Contractor’s Perception” Available at: http://eprints.uthm.edu.my/3475/1/p351-abd_karim.pdf (Accessed 26 March 2013) BMI (2011) “Nigeria Infrastructure Report Q3 2011” Business Monitor International P.7 Available at: http://www.researchandmarkets.com/research/11758b/nigeria_infrastruc (Accessed date 10/04/2013) Oluwakiyesi Tosin (2011): Vetiva Capital Management: Construction Industry Report, a haven of opportunity Available at: http://www.proshareng.com/admin/upload/reports/VetivResearchConstructioSectorRepor tMay2011.pdf (Accessed date: 04 June 2013) Why Contract Failed In Nigeria Available at: www.tellng.com/index.php?option=com_k2&view=item&id=900:whycontracts-fail-in-nigeria&Itemid=120 (Accessed: 03 June 2013) Yajun Wang (2013): “Construction Project Risk Assessment” School of Economic and Management Available at: http://link.springer.com/chapter/10.1007/978-1-4471-46001_72#page-1 (Accessed: 02 April 2013) 125 CHAPTER APPENDIX Dear Respondent, INCORPORATION OF RISK MANAGEMENT AS A FRAMEWORK FOR DELAY MITIGATION: A STUDY FROM THE CONSTRUCTION PROJECT IN NIGERIA Researcher: Arogundade Abayomi Anthony (Abayomi.Arogundade@gmail.com) Supervisor: Paul taaffe (paul.taaffe@mydbs.ie) I am an MBA student in Project Management As part of partial fulfillment requirement for MBA, I am conducting a small piece of research on Incorporation of risk management as a framework for delay mitigation: A study from the Construction Project in Nigeria I would like to invite you to take part in this research Taking part will involve completing the consent from below and the attached questionnaire, which will take no more than 15mintue of your time The answer you provide will be kept confidential; only aggregate data will be presented in the written report and therefore, your anonymity is guaranteed, individual questionnaires will be kept only until the research work has been moderated and seen by an external examiner and will then be destroyed If you have any questions not answered in this introduction to the research, please contact me using the details above If you have read this information and are willing to participate in this research, please indicate your informed consent using the form below PARTICIPANT CONSENT PLEASE TICK I confirm that I have read and understood the information about the above study I have had the opportunity to consider the Information, ask questions and had these answered satisfactorily I understand that my participation is voluntary and that am free to Withdraw at any time without legal right being affected I agree to take part in the study 126 QUESTIONNAIRE SECTION A Gender: A Male B Female C Prefer not to say Your age range A B C D E 18-24 25-34 35-34 45-54 55 + Nationality: Job Description A B C D E Project Manager Civil Engineer Architect Contractor Others Years of experience in construction industry? A B C D E 0-9 10-19 20-29 30-39 40 + Have you manage a construction project before? 127 A Yes B No Section B How to manage the causes of delay in Nigeria Construction Project, integrating Risk Management? Below is the list of questions Please circle the most suitable option as it applies to you What is the level of delay frequency in every 20 construction projects executed in Nigeria? A B C D E Never Rarely Sometimes Often Always What is the level of delay frequency on Project execution in Nigeria? A B C D E Never Rarely Sometimes Often Always What is the level of delay frequency on Project closing time in Nigeria? A B C D E Never Rarely Sometimes Often Always Do delay have a great impact in the massive project failure in Nigeria? A Yes B No 128 Delay is believed to lead to many negative effects such as disputes between client and contractors? A B C D E Strongly Agree Agree Neither Disagree Strongly disagree Delay is believed to cause increase in costs, loss of productivity and revenue A B C D E Strongly Agree Agree Neither Disagree Strongly disagree Communication barrier is one of the major factors in the cause of Nigeria construction delay? F G H I J Strongly Agree Agree Neither Disagree Strongly disagree High level of corruption within the Government and construction industry in Nigeria can be considered to have a great impact in Nigeria construction project delay? A B C D E Strongly Agree Agree Neither Disagree Strongly disagree How would you rate the competency of contractors in Nigeria? A Poor B Fair 129 C Good D Very good E Excellent 10 What is the level of Nigeria contractors experience compared to Construction Project assigned to them? A B C D E Poor Fair Good Very good Excellent 11 What level of influence does Stakeholders has on Nigeria Construction delay? A B C D E Not at all influential Slightly influential Somewhat Influential Very influential Extremely Influential 12 What level of influence does Project Scope creeps has on Nigeria construction delay? A B C D E Not at all influential Slightly influential Somewhat Influential Very influential Extremely Influential Section C Systematic risk management approach could help to mitigate delay in construction project in Nigeria 13 What is the level of Project Management awareness in Nigeria construction industry? A Not at all aware B Slightly aware 130 C Somewhat aware D Moderately aware E Extremely aware 14 What level of knowledge competency has the Nigeria traditional contractor’s on Project Management? A B C D E Poor Fair Good Very good Excellent 15 What level of risk management is practice in construction Project in Nigeria? A B C D E Poor Fair Good Very good Excellent 16 Risk management can lessen delay if it’s implemented in a systematic manner throughout construction project life cycle in Nigeria A B C D E Strongly Agree Agree Neither Disagree Strongly disagree 131 132 ... 2.2 Risk Management Risk Management is one of the nine Knowledge areas of Project Management propagated by the Project Management Institute Project Integrated Management Project Scope Management. .. three decades have remained the same A major disparagement facing the Nigeria Construction industry is the growing rate of delay in project delivery, with the increasing trend of delay in construction. .. 1.2 Risk Management in brief Risk management is one of the nine knowledge areas propagated by the project management institute: Project Integrated Management Project Scope Management Project