Risk and financial management practice in the construction sector in Nigeria, system thinking perspective

Risk and financial management of construction projects have been widely studied using different approaches and systems. Three basic frontiers underpin project management research in this area: normative; descriptive; and instrumental. The descriptive approach deals with how project managers perceive and represent risks that is, risk analysis. Instrumental approach study’s the impact of risk management on projects and the organisation. This perspective informs the premise in which studies that seek to justify the need for risk management are based. The normative approach identifies the moral and ethical linkages between the individual, organisations and supra system and risk management practice. While a vast of number of studies have been descriptive and instrumental, very few however address systemic issues impacting risk and financial management practice. This paper sets out to reflect on the risk and financial management practice in Nigeria using system approaches. It is a critical appraisal involving SLEEPT, Multiple goal and the GESTALT theories. In reprising the problem, the report assessed the national economy of Nigeria using SLEEPT, with a view to establishing whether it is situated in extremistan or mediocristan. The organisation, a sub-system of the supra system is evaluated to establish its links with the supra system using GESTALT. A refinement is carried out based on these analyses in order to achieve congruence and to establish a baseline upon which risk and financial can be improved. The analysis reveals social, political, environmental and economic context of the supra system are in extremistan while the legal and technology are in mediocristan. The linkage in the different systems is anchored on decision making by the individual. Optimal decision making is therefore formulated using interactive framework.</jats:p

Learning models for effective propagation of sustainable construction practices in the built environment / Samuel Ekung & Isaac Odesola

The drive to achieve sustainable built environment has made learning new skills relating to Sustainable Construction Practices (SCP) imperative. This study investigated whether learning method can improve uptake of SCP through knowledge enhancement. Using survey research strategy, data from 206 construction professionals in Nigeria were collected and analysed. The results revealed that Andragogy and Experiential learning models strongly correlated SCP transfer requirements, and are therefore, appropriate models to embed SCP within existing ethos in the built environment. The study espoused the critical roles of experience and hands-on-project as prerequisite reinforcements for effective learning of SCP

The effect of government policy on housing delivery in Nigeria: a case study of port harcourt low Income housing programme

Housing is one of the most important needs of individuals next to food and clothing. Housing needs for low income earners has reached an alarming stage in Nigeria. On the supply side, numerous government policies have earlier aimed at disabling the massive shortage through numerous housing reform programmes. Despite these preceding efforts, housing remains an illusion to an average Nigerian. This research assessed the effect of government policy on housing delivery in Nigeria. The objectives were to determine housing needs of the low income group in Nigeria and to determine the impact of government policies on affordable housing provision to the low income group. Survey method was used to collect data from 44 respondents through the administration of questionnaires which was analyzed with statistical tools. The findings from the study shows that insufficient fund is closely related to other finance related factors identified as barriers to the accessibility of public housing by the low income group who are non-public servants. Such factors as high interest rate, low per capita income, lack of security of income, lack of collateral and high cost of public houses. The study suggest the creation of a viable secondary mortgage market, improvement of land registration and allocation, compassionate urban renewal programmes, cost saving house designs amongst others

Key Causes of Variation Orders in Public Construction Projects in South-South Zone of Nigeria: An Explanatory Factor Analysis

This study investigates the key causes of variation order in public construction projects in the South-South Zone of Nigeria. Primary data obtained from 338 validated questionnaires, administered to stakeholders in the built environment are analysed using mean score and Factor Analysis. The findings reveal that change of plans or scope of work, client`s financial difficulties, inadequate working drawings, inadequate project objectives, errors and omissions in design are the key dominant causes of variation orders in public construction projects. Seven components, which include: client-related, contractor/construction-related, consultant-related, organisational-related, resource-related, environmental-related, and innovation-related, were extracted through factor analysis indicating principal actors and origin of variation orders. It is recommended that stakeholders should give adequate priority not only to the dominant causes of variation orders at planning and implementation stages but also to the principal actors and sources  of the causes in order to strategically address the situation and minimize impact of its occurrence. Keywords: Classification, Construction project, Principal actors, South-South zone, Variation order. DOI: 10.7176/CER/12-1-06 Publication date: January 31st 202

System pathogens inhibiting construction project risk management performance: deliberate ignorance perspective

Risks have emerged as one of the most significant project management concerns due to their effects on construction project performance. Several literature attributes the increasing consequences of risks to low awareness and ineffective management practices. This paper draws attention to the existence of latent pathogens affecting the efficiency of risk management performance (RMP). The objective was to determine whether construction stakeholders’ ‘deliberate ignorance’ of inherent risk management pathogens classified as complexity, complicatedness, mindlessness, and project pathologies affects RMP. A survey questionnaire administered to 135 certified construction project managers in Nigeria provided the data used for the study. Data analysis engaged descriptive statistics and Fuzzy Set Theory. The result revealed that ineffective RMP arise mainly from factors related to project complexity and mindlessness. Complexity increases project uncertainty without appropriate tools to address them; while the criticality of the relationships between risks elements continuously vary in practice. Mindlessness depicts stakeholders’ ‘wilful ignorance’, biased perception, and mind-set towards risk management. The results suggest that reducing project complexity, biased perceptions and improving stakeholders’ capacity would benefit RMP. Therefore, improving the capacity of stakeholders and developing appropriate tools to address the changing nature of risks are areas to improve RMP

Mitigating Climate Change Impacts in Buildings using Passive Design Strategies: Putting Costs to Contexts

Across the global construction industry, climate change mitigation is achieved using design and construction practices that optimise energy efficiency. The scope of these practices varies with regional contexts. In Nigeria and other regions, their adoption is slow due to the absence of cost benchmarks to drive their implementation decisions. In this study, we appraised the first cost premium (FCP) and the payback periods of selected passive designs strategies (PDS) in retrofitted residential buildings. Using cost data from two categories of 150 retrofitted residential building designs, analytical estimating processes showed that integrating five PDS would attract FCP totaling ₦ 3,612.17/m2 and ₦ 9,250.00/m2 for bungalow and maisonette buildings. Procuring these FCPs also has varying levels of reduction in energy consumption that are necessary to mitigate the impacts of climate change. The financial benefits in energy savings from two PDS (roof insulation and overhang) could only pay-off the FCP for bungalows with cost-savings of 81%, while reducing the FCP for maisonettes by 70% in one year. The discounted FCP after one year becomes zero for the bungalow and ₦ 2,650.00/m2 for the maisonette. The short-term payback periods provide a significant incentive for developers to adopt energy-efficient designs in building development

Utilisation of green urban space for food sufficiency and the realisation of the sustainable development goals – UK stakeholders perspective

The exponential growth of food demand due to the increasing global population has the potential to seriously threaten the quality and quantity of food supplies due to climate change. This study explores the utilisation of green urban spaces for achieving food self-sufficiency by investigating the extent to which sustainable urban farms could be used to reduce the consumption of imported produce in the UK. It also examines urban farming stakeholders’ perspective on how food self-sufficiency can help realise the SDGs especially SDG 2 (Zero hunger) and SDG 13 (Climate action). The study adopts a mixed method approach through a survey with 115 respondents and semi-structured interviews conducted with 12 respondents from 4 different urban farming stakeholder groups. The findings of this study presented a strong correlation between stakeholders who had concerns about where their food came from and the carbon footprint of imported produce. The research shows that, urban farms will no doubt play a vital role in the future of food security in our cities/communities and that the SDGs could be realised through sustainable urban farms implemented within the relevant planning regulations/policies