EVALUATION OF THE COST IMPLICATION OF CLIENT- INDUCED DELAYS ON BUILDING PROJECTS IN SOUTHEAST, NIGERIA

Abstract

Delay is the most common problem encountered in construction projects. Client- induced delay occurs when a project is completed at a time beyond the stipulated contract duration and the reasons being that of the client, it is in common place with government projects and in some private developments. The financial effect of client-induced delay is enormous but often goes unnoticed over the years. This study aimed to assess delay in terms of client contributions and its consequent cost implications to provide scientific solution to delay problems in building project delivery. The research employed both primary and secondary sources of data, the population of 496 comprising the clients, contractors and consultants derived from the list of built professionals in the south east through the ministry of works register and the chapter membership records as at 2014. The sampling frame and sample size were obtained respectively from the number of these professionals giving a sample size of 235. A total of 160 questionnaires were returned out of 250 distributed representing 64%. 222 buildings projects were surveyed the data were analysed using Statistical Package for Social Science. (SPSS, Version 17). Mean scores, factor analysis, ranking, were used to assess the delay factors and their significance to client-induced delay. Average scores, relative index, anova and percentile were employed to determine the cost implication of client-induced delay in relationship to time. The study revealed that 10 factors were paramount with Clients’ induced delay out of which three (3) were of very high significance on building projects; such as delayed payment, insolvency and decision during development stage. However, Delay payment is the most significant, ranking first with a mean score of 4.51 while incomplete/disparity in document ranked 9th among the top 10 high ranked delay factors. The study concluded that, delay has cost implications of 23% additional cost per building project surveyed in 2014 and the Client-induced delay contributed 90.37% of this cost. 222 building projects surveyed had a cost overrun of N5,095m. The research based on its findings, recommended the need for: Cash backing to projects, Prompt payments to contractors, Early involvement of consultants /professionals, Evidence of availability of fund in accordance with the Bills of Quantities to be shown at the point of project approval, Policy protecting the contractor from the effects of client-induced delays; and Establishment of physical planning units at all levels of Government office to avoid delays and forestall improved project delivery system within the south east and Nigeria in general.