Low performance in housing provision is one of the problems facing the country. Poor cost performances in LcH project delivery in Nigeria is said to affect LcH supply adversely, in terms of unit output, high sale prices, undermined affordability of expected target beneficiaries and poor housing situations (Ogu, 1996; Mabogunje, 2007; Okoroafor, 2007; Akinde, 2012; Ogbu & Adindu, 2012). These effects have resulted in many of the Low and lower-middle income groups seeking shelter in slums and other sub-standard houses (Nubi, 2008; FMLHUD, 2012; Makinde, 2014). There is sufficient evidence showing that many states in the country lack adequate housing resulting in number of rising slums and other makeshift accommodations (UN-Habitat, 2011a). A typical example is the southeast zone characterized by makeshift accommodations (Ukiwo & Chukwuma, 2012; Duru & Anyanwu, 2014; Nkwede, 2014) as shown in Figure 1.2. Apparently, available statistics from the National Bureau of Statistics in Nigeria (NBS) (2015) and Ebie (2010), show that the southeast zone has a derivation estimation of up to 2 million housing deficits. One of the reasons for such deficits is the unsuccessful delivery of many LcH projects in the zone and in Nigeria (Ozurumba, 2011; Ogbu & Adindu, 2012; Ugonabo & Emoh, 2013).
9 The inherent challenges affecting the LcH sector have in no doubt given way to the appalling state of housing crisis both in the zone and across the country (Ugonabo & Emoh, 2013). One of the identified problems is the issue of poor project cost performances which is endemic in LcH project delivery in Nigeria. Studies by Okoye et al. (2014), Obi and Arif (2015) highlights poor cost management as one of the main facilitators of poor cost performances experienced on housing project delivery in Nigeria. In their view, improving strategies for project cost management is pivotal to improving project cost performances. Given the espoused relationship between project cost management and CMS, from previous studies (Kern & Formoso, 2006; Granja & Jacomit, 2011; Do et al., 2014) employing effective CMS can be one of the viable avenues to overcome the challenge of poor cost performances in LcH project delivery in Nigeria. However, in spite of the vast attention dedicated to the problem of poor cost performances, the Project Management Team (PMT), apparently still lack the appropriate strategies for effective project cost management on these projects (Ubani, et al., 2013). Furthermore, there has been limited evidence to support the claim that the PMT possess appropriate CMS given the occurrences of poor cost performances in LcH project delivery in Nigeria. It is for this reason that the following justifications for this study have come to the fore.
1.3.1 Justification for the Study
The peculiar characteristics of LcH project delivery in terms production cost and affordability (McNelis, 2014) indicate that resource constraints are more rigid in LcH projects than in another type of projects. The emphasis on LcH project is more on delivery and not just on costs, at such, cost considerations taking seriously on other project types are often taken for granted by all the stakeholders. Furthermore, the fixed budget allocated to the project often undermine practical considerations in cost management. Nevertheless, there are tremendous opportunities that can be used to drive down cost in LcH to make it affordable employing appropriate CMS that emphasises collaborative dynamics, particularly from the pre-design stage. This edge is what a well-developed CMS model can provide to PMT to facilitate further cost reduction in LcH project delivery and double output without compromising quality applying an effective systematic approach to cost management. Secondly, there is a good amount of research in the field of project cost management and public sector housing projects. However, the majority of these studies are not, particularly
10 in the Nigerian context. Findings from a search in project cost management related publications from three well-referenced databases using keywords on housing, low-cost, housing, project, cost performance, cost management, Nigeria, from Jan 2004- June 2015 in electronic databases, (Table 1.3), show extensive descriptive investigations. From the Table 1.3, a plethora of studies has attempted to identify factors affecting project cost management and poor cost performances such as ineffective CMS (Ogwueleka, 2011; Amade, et al., 2015) without exploring the reasons why such factors emanate.
Table 1. 3: Publications on Cost management in Low-cost Housing project delivery
Source: A= Emerald Management B= Science Direct and C= Google scholar databases. Similarly, some other studies have succeeded to highlight the common techniques employed in CMS (Sanni & Duruola, 2012) without further investigation on the relationship between the techniques and the effective performance of the CMS. Furthermore, none of these has attempted to proffer implementation models or frameworks that can improve the efficacy of CMS employed in LcH project delivery towards improved cost performances. Though the findings from the above studies are all relevant, they are considered inconclusive to improve CMS outcomes on LcH project delivery holistically. Furthermore, Findings from the studies examined also show another problem, which is the vast scope of analysis, which lumps together the influences of stakeholders, time, quality, management strategies, and technology. This research intends to focus on CMS to identify specific factors that can improve project cost management for LcH project delivery in Nigeria for effective implementation.
Similarly, a search across publications by the Nigerian Institute of Quantity Surveyors, a known body responsible for cost management practice in Nigeria did not reveal contemporary CMS models applicable to LcH project delivery. More often than not, the project PMT seems to rely on assumptions, experience, and intuitive judgment for project
Source Housing Nigeria Construction project Cost performance, Nigeria Construction project Cost management, Nigeria
Cost, project Housing, management, performance Nigeria A 14 14 4 1 B 6 11 3 0 C 24 16 4 2 Total 44 41 11 3
11 cost management that cannot be adequately described as a structural or implementation system model.
These findings indicate that in spite of the enormous attention on poor cost performances and project cost management, there is currently no clear evidence in the literature on frameworks or models for CMS implementation in the context of LcH project delivery in Nigeria. The paucity of such models to guide effective CMS implementation in LcH project delivery could be one of the many reasons challenging the effective cost performance outcomes. Therefore, considering the espoused relationship between CMS and project cost performances, it is the researcher’s view that rather than seeking “survival strategies” for project cost management (Ubani, et al., 2013), the avenues to improve the efficacy of current CMS should be explored.
Consequently, developing an appropriate CMS applicable and implementable by the PMT for improved cost management and performances in LcH project delivery will require contextual investigations. Since the issue of poor cost performances is endemic on LcH project delivery across the country, an examination of a typical case such as the Nigerian southeast zone will be most appropriate. The selection of the Southeast zone is hugely on the premise of the zone’s position as a flagship (pilot) for government intervention in the LCH provision. Policies, systems and technologies innovations employed for delivery of LcH projects in the zone has been generalised across the country. Hence, it is expected innovations for LcH project delivery in the zone are easily generalisable across the country. The individual and collective knowledge and experience of the PMT involved in LcH project delivery in the southeast zone will be gathered and structured to facilitate the development of a well-structured system model for LcH project delivery. Such investigation and output are what this research seeks to proffer. Such proffered solutions are a good stead for the successful realisation of the LcH schemes both in the southeast zone and Nigeria in the nearest and far future.
Finally, there is the need for appropriate management models for LcH project delivery. Proffering an appropriate CMS model will be beneficial to the PMT and the housing agency in project cost evaluation and standardisation procedure guide. The integration of this CMS model to existing models for project time and quality management can be used to develop a holistic framework to assist housing agencies in successful LcH project delivery in both the southeast zone and Nigeria at large.
12 Given the above justifications, there are specific questions that need to be answered in this research context.