DEVELOPMENT OF STRUCTURAL EQUATION MODEL (SEM) FOR LABOUR PRODUCTIVITY AND PROJECT PERFORMANCE IN THE NIGERIA CONSTRUCTION INDUSTRY

Abstract

The high rate of construction project abandonment in Nigeria had led to researches into developing methods and means of enhancing project performance. This research developed a structural equation model of labour productivity for good project performance in Nigeria building industry. To develop this model, questionnaire survey was carried out amongst five hundred (500) respondents which are various stakeholders in the building construction industry to gather information about the labour productivity influencing factors and how each of them affects project performance. Four hundred and forty (440) valid responses were gathered and analysed. The labour productivity factors were divided into six (6) major categories which are the Management and control (MC), Workforce (W), Material & Equipment (ME), Finance (F), Project (P), and External (E). A structural equation model, SEM was then developed to show how each of the labour productivity factors influence construction project performance in terms of cost, time and quality. The result showed that Management and Control have the highest influence on project performance with high coefficients of 0.88 (88%). Further, the SEM model was validated using a 8-bedroom duplex construction in Ifako residential estate in Magbodo area of Lagos. This showed MC, W and ME to be highly significant as their worse construction scenario produced a high prediction of overruns in project cost, time and quality. Thus, this work has shown that a solid management, workforce and material logistics structure is key to consistent productivity that enhances good project performance in the Nigeria construction industry. More attention should thus be given to management and supervision to achieve a favorable project performance. This would aid the mid and small sized companies for efficient project delivery without running the risk of abandonment.