CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
When asked to define “design error,” not all disciplines in the construction process agree on a common definition. Depending on which discipline you address, the owner, the designer or the contractor there will be a common understanding surrounded by varied conclusions, “a mistake.” From the basic definitions of “design” and “error” we conclude that a design error is a deviation from a drawing or specification, also including omissions and ambiguities. It is the seriousness of this error that must be considered to determine its consequences on the overall outcome of the project One of the most important challenges facing management today is controlling the all too frequent cost and schedule overruns that effect the construction industry (Diekmann and Thrush, 1986). One of the major issues to control growth in project costs and time is the reduction of design errors.
The owner, designer and contractor all have different interests in, or uses for the design of a facility. But what they do share is the commitment to complete the project safely and within a given budget and completion time. There are many initiatives being conducted to control the growth of cost and schedule within the construction industry.
The major issue is “accuracy of the drawings,” or the number of design errors, omissions and ambiguities within the plans and specifications that affect the quality of the facility. Inadequacies in the plans and specifications are the major causes of changes to the contract So much emphasis is placed on the issue of time and cost that quality takes a back seat The quality of the project depends on the conformance of the objectives and requirements from the owner. An informative quality management technique will provide an agreement to procedures and definitions among the principle parties for the project. Since design errors have an impact on the outcome of the effectiveness of the contractor’s effort on the project it is essential that all parties determine what the definition of a design error should be. When asked to define design error, not all disciplines in the construction process agree on a common definition. From the basic definition of design and error it can be determined that a design error is a deviation from a drawing or specification. It is the seriousness of this error that must be considered to determine its consequences on the overall outcome of the project
1.2 STATEMENT OF THE PROBLEM
Design errors indicate the total design in-effectiveness of a project. Major design quality problems occur during construction when errors, omissions and ambiguities in plans and specifications become evident (Davis and Ledbetter, 1987). This statement directs that the inadequacies in the plans and specifications are the major causes of changes to the contract. There have been extreme examples of design errors such as numerous building collapse in Nigeria – projects that have wrought disaster after the construction are completed. These are examples of design errors that escaped the close scrutiny of all parties. One or two major errors that can be corrected with only cost considerations and little effect on the schedule can impact projects. The projects that really suffer are those with many small errors (design, rework or change of scope) which when finally added up cause major impacts on the cost and schedule growth. Through Davis and Ledbetters research it was determined that “accuracy of the design documents” was the most critical of the criteria used in the initial evaluation of design effectiveness. This accuracy was further described as the concern for the frequency and impact of errors in the specifications and drawings. This is due to the fact that the drawings and specifications are the most “readily identifiable outputs of the design process.” It is evermore important that the quality control of designs be addressed during the planning phase and closely monitored during the construction phase.
1.3 OBJECTIVES OF THE STUDY
The main aim of the study is to investigate how design errors can affect the initial cost of a project. The specific objectives are:
• To determine what constitutes a design error.
• To examine the contributing factors to design errors in Nigeria.
• To examine how these factors can affect initial cost and growth of a project.
RESEARCH QUESTIONS
• What makes or contributes to a design error?
• What are the factors that lead to design errors?
• What effect can design errors have on initial cost and growth of a project?
1.5 HYPOTHESIS FORMULATION
Hi: There is no significant relationship between design error and initial project cost.
Ho: There is significant relationship between design error and initial project cost.
1.6 SIGNIFICANCE OF THE STUDY
This study gives a clear insight into the various ways in which contractors in the construction companies in Nigeria can maximise profits and reduce initial cost through effective and efficient contract planning and management. The study also gives a clear insight into the various effects of design errors on the cost of a project. The findings and recommendations of the researcher will help in building a strong and better project management guideline for contractors in Nigeria.
1.7 SCOPE OF STUDY
This research focuses mainly on the investigation of design errors on initial cost of a project. Results and recommendations may not be used to generalise other construction companies in Nigeria, as the researcher could not cover a wider scope due to financial and time constraints.
Based on the findings of this study other possible researchable areas may include studies on the various effects of other aspects of contracts such as contract laws in Nigeria and contract management and control.
1.8 LIMITATION OF THE STUDY
The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.
1.9 DEFINITION OF TERMS
• Design: The basic definition of design, according to Webster, is “the making of drawings or plans to plan and fashion the form and structure of an object to have intentions or purposes.” The quality of planning and design is one of the primary factors of success in any project endeavor (Chalabi, Beaudin and Salazar, 1987). The design includes every aspect of the facility construction including operation and maintenance. The design incorporates a set of specifications to guide the contractor in developing his means and methods of construction. Figure 2-1 shows the traditional flow diagram of a design/construction method.
• Error: An error is defined, according to Webster, as “a deviation from accuracy or correctness; a mistake, as in action or procedure; an inaccuracy, as in speaking or writing.” There are basically three types of errors: imperfections, non-conformance and omissions. Imperfections are deviations in details that have no affect on the assembly or facility (Davis and Ledbetter, 1987).
• Design Error: From the evaluation above a simple definition of design error is “a deviation from the plans and specifications.” It is not the intention of this definition to include any cost or schedule growth or insinuate its root causes or legal responsibility. It is the responsibility of the owner, designer and contractor to establish the criteria in order to make a reasonable determination for responsibility. The survey shows a common theme, that of a mistake or error in the design. The survey also indicates several reasons why design errors exist and who cause them. This provides evidence that there is not a concise definition within the construction industry.
• Contract: Erikson (2002) defined Contract as an agreement that creates an obligation binding upon the parties thereto. The essentials of a contract are as follows: (1) mutual assent; (2) a legal consideration, which in most instances need not be pecuniary; (3) parties who have legal capacity to make a contract; (4) absence of fraud or duress; and (5) a subject matter that is not illegal or against public policy.
• Contract Planning: According to Simmons (2007), Contract planning is the process of systematically and efficiently managing contract creation, execution and analysis for maximising operational and financial performance and minimising risk.
• Contractor: General contractor, organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or other facility.
• Profit: Tucy (2008) defined profit as the difference between the purchase price and the costs of bringing to market
• Initial Cost: Initial costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. Put simply, it is the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on many factors such as accounting, tax laws, and materiality.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#10000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: AN INVESTIGATION INTO DESIGN ERRORS AND IT IMPACT ON INITIAL COST OF A CONSTRUCTION PROJECT
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
When asked to define “design error,” not all disciplines in the construction process agree on a common definition. Depending on which discipline you address, the owner, the designer or the contractor there will be a common understanding surrounded by varied conclusions, “a mistake.” From the basic definitions of “design” and “error” we conclude that a design error is a deviation from a drawing or specification, also including omissions and ambiguities. It is the seriousness of this error that must be considered to determine its consequences on the overall outcome of the project One of the most important challenges facing management today is controlling the all too frequent cost and schedule overruns that effect the construction industry (Diekmann and Thrush, 1986). One of the major issues to control growth in project costs and time is the reduction of design errors.
The owner, designer and contractor all have different interests in, or uses for the design of a facility. But what they do share is the commitment to complete the project safely and within a given budget and completion time. There are many initiatives being conducted to control the growth of cost and schedule within the construction industry.
The major issue is “accuracy of the drawings,” or the number of design errors, omissions and ambiguities within the plans and specifications that affect the quality of the facility. Inadequacies in the plans and specifications are the major causes of changes to the contract So much emphasis is placed on the issue of time and cost that quality takes a back seat The quality of the project depends on the conformance of the objectives and requirements from the owner. An informative quality management technique will provide an agreement to procedures and definitions among the principle parties for the project. Since design errors have an impact on the outcome of the effectiveness of the contractor’s effort on the project it is essential that all parties determine what the definition of a design error should be. When asked to define design error, not all disciplines in the construction process agree on a common definition. From the basic definition of design and error it can be determined that a design error is a deviation from a drawing or specification. It is the seriousness of this error that must be considered to determine its consequences on the overall outcome of the project
1.2 STATEMENT OF THE PROBLEM
Design errors indicate the total design in-effectiveness of a project. Major design quality problems occur during construction when errors, omissions and ambiguities in plans and specifications become evident (Davis and Ledbetter, 1987). This statement directs that the inadequacies in the plans and specifications are the major causes of changes to the contract. There have been extreme examples of design errors such as numerous building collapse in Nigeria – projects that have wrought disaster after the construction are completed. These are examples of design errors that escaped the close scrutiny of all parties. One or two major errors that can be corrected with only cost considerations and little effect on the schedule can impact projects. The projects that really suffer are those with many small errors (design, rework or change of scope) which when finally added up cause major impacts on the cost and schedule growth. Through Davis and Ledbetters research it was determined that “accuracy of the design documents” was the most critical of the criteria used in the initial evaluation of design effectiveness. This accuracy was further described as the concern for the frequency and impact of errors in the specifications and drawings. This is due to the fact that the drawings and specifications are the most “readily identifiable outputs of the design process.” It is evermore important that the quality control of designs be addressed during the planning phase and closely monitored during the construction phase.
1.3 OBJECTIVES OF THE STUDY
The main aim of the study is to investigate how design errors can affect the initial cost of a project. The specific objectives are:
• To determine what constitutes a design error.
• To examine the contributing factors to design errors in Nigeria.
• To examine how these factors can affect initial cost and growth of a project.
RESEARCH QUESTIONS
• What makes or contributes to a design error?
• What are the factors that lead to design errors?
• What effect can design errors have on initial cost and growth of a project?
1.5 HYPOTHESIS FORMULATION
Hi: There is no significant relationship between design error and initial project cost.
Ho: There is significant relationship between design error and initial project cost.
1.6 SIGNIFICANCE OF THE STUDY
This study gives a clear insight into the various ways in which contractors in the construction companies in Nigeria can maximise profits and reduce initial cost through effective and efficient contract planning and management. The study also gives a clear insight into the various effects of design errors on the cost of a project. The findings and recommendations of the researcher will help in building a strong and better project management guideline for contractors in Nigeria.
1.7 SCOPE OF STUDY
This research focuses mainly on the investigation of design errors on initial cost of a project. Results and recommendations may not be used to generalise other construction companies in Nigeria, as the researcher could not cover a wider scope due to financial and time constraints.
Based on the findings of this study other possible researchable areas may include studies on the various effects of other aspects of contracts such as contract laws in Nigeria and contract management and control.
1.8 LIMITATION OF THE STUDY
The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.
1.9 DEFINITION OF TERMS
• Design: The basic definition of design, according to Webster, is “the making of drawings or plans to plan and fashion the form and structure of an object to have intentions or purposes.” The quality of planning and design is one of the primary factors of success in any project endeavor (Chalabi, Beaudin and Salazar, 1987). The design includes every aspect of the facility construction including operation and maintenance. The design incorporates a set of specifications to guide the contractor in developing his means and methods of construction. Figure 2-1 shows the traditional flow diagram of a design/construction method.
• Error: An error is defined, according to Webster, as “a deviation from accuracy or correctness; a mistake, as in action or procedure; an inaccuracy, as in speaking or writing.” There are basically three types of errors: imperfections, non-conformance and omissions. Imperfections are deviations in details that have no affect on the assembly or facility (Davis and Ledbetter, 1987).
• Design Error: From the evaluation above a simple definition of design error is “a deviation from the plans and specifications.” It is not the intention of this definition to include any cost or schedule growth or insinuate its root causes or legal responsibility. It is the responsibility of the owner, designer and contractor to establish the criteria in order to make a reasonable determination for responsibility. The survey shows a common theme, that of a mistake or error in the design. The survey also indicates several reasons why design errors exist and who cause them. This provides evidence that there is not a concise definition within the construction industry.
• Contract: Erikson (2002) defined Contract as an agreement that creates an obligation binding upon the parties thereto. The essentials of a contract are as follows: (1) mutual assent; (2) a legal consideration, which in most instances need not be pecuniary; (3) parties who have legal capacity to make a contract; (4) absence of fraud or duress; and (5) a subject matter that is not illegal or against public policy.
• Contract Planning: According to Simmons (2007), Contract planning is the process of systematically and efficiently managing contract creation, execution and analysis for maximising operational and financial performance and minimising risk.
• Contractor: General contractor, organization or individual that contracts with another organization or individual (the owner) for the construction of a building, road or other facility.
• Profit: Tucy (2008) defined profit as the difference between the purchase price and the costs of bringing to market
• Initial Cost: Initial costs are fixed, one-time expenses incurred on the purchase of land, buildings, construction, and equipment used in the production of goods or in the rendering of services. Put simply, it is the total cost needed to bring a project to a commercially operable status. Whether a particular cost is capital or not depend on many factors such as accounting, tax laws, and materiality.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: AN INVESTIGATION INTO DESIGN ERRORS AND IT IMPACT ON INITIAL COST OF A CONSTRUCTION PROJECT
ABSTRACT
The business of embarking investment involves risk and as such, it requires systematic planning. The whole idea of feasibility studies revolve around conscious efforts at business planning, hence a feasibility study is a comprehensive and rigorous business planning process . Many investors especially in developing countries embark on industrial projects without pre-investment studies to across the viability of the venture. Even where investment decisions were preceded by pre-investment studies, the standard and depth of such studies are often not adequate The problem of improper identification of business opportunity resulting in wrong choice of project implied with wrong timing has led to many project failures The objective of the study is to highlight the importance of feasibility studies in the realization of project objectives. The survey research method using questionnaires and hypothesis was adopted in eliciting data from the respondents for this study. The major findings are: Financial commitment to a project has something to do with the success or otherwise of the project. Feasibility study do assist in determining the viability of a project feasibility study is an excellent told in achieving project objectives. A project will not achieve optimal financial success unless it is properly, efficiently and effectively planned and operated with respect to its technical, social, commercial and financial requirement. In meeting the above requirement, it is expected of an entrepreneur to endavour to carryout a feasibility of any project to be embarked upon so as to determine its viability.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Many definitions had been given to project by different authors, due to the fact that project is a multidisciplinary word that has different meaning from different perspective and orientations. Engineers, Architects, Managers and so on, have their definitions coined out from their experiences as far as their professions are concerned. Project according to Project Management Institute, PMI, (2000) cited in Pinto (2007) “is a temporary activity or endeavour undertaken purposely to create a unique output (product or service) within budget, time and standards. Turner and Muller (2003) in their own words defined project as “an organization of human materials and financial resources in a novel way, to undertake a unique scope of work, of given specification, within constraints of cost and time, defined by quantitative and qualitative objectives so as to achieve a beneficial change”.
The uniqueness of project is pointing to its genuine nature in the sense that there may not be a pre-existing blue print for the project’s execution and there may not be a need to repeat the project once completed. Standards is seen by Ajayi (2009) as institution of best practice in quality and consistency. And the keywords of any standards should therefore include; transparency, consistency, rationality, comparability and uniform performance measures. At global level, the International Valuation Standards Council (IVSC) is the established international standard setter for valuation. Through the International Valuation Standards Board, the IVSC develops and maintains standards on how to undertake and report valuations, especially those that will be relied upon by investors and other third party stakeholders.
Globally, the drive for standards and harmonization which are commonly acceptable and applicable in professional practices has been the watchword for transparency, consistency, rationality, comparability and uniform performance measures Onuorah (2009). The word standard in its technical connotation entail quality control principles put forward by professional regulatory bodies on how best to undertake professional work to a global acceptable level. According to Ajayi (2009), such control principles include; mandatory rules, best practice guidance and related commentary.
Many governments and businesses, especially in developing countries, embark on industrial projects without necessary pre-investment studies to assess the viability of the venture. Even where investment decisions were preceded by pre-investment studies the standard and depth of such studies are often adequate. As a result of this deficiency, many industrial ventures had run into critical problems or even folded up within a short spatx of time after the start – up of operation.
The first positive step in project planning is feasibility study. To minimize the
rate of industrial mortality, it is absolutely important for prospective investors to seek the services of professionally qualified and experienced consultants to carry out a feasibility study on the proposed project to determine if it is a worthwhile venture. Feasibility study has been variously defined by authors, analyst and consultants.
In a nutshell, however, a feasibility study is a scientific investigation and analysis of a proposed project in order to determine its economic desirability, or value, technical feasibility, organisation and manpower requirement, financial logistics, commercial viability and profitability. Thus, a feasibility report is a comprehensive business plan.
Feasibility reports are highly valued world wide. Apart from their common use as project planning documents, these reports are put into various other related uses. For instance, owing to a very high poverty level, most prospective investors reply on feasibility reports as the basic document for finance sourcing. For project execution, monitoring and supervision, feasibility reports constitute authoritative referee materials. In fact, a project is ‘usually implemented in accordance with the provisions of its feasibility reports. It therefore serve as a guide for project monitors and supervisors.
The IVSC also supports the need to develop a framework of guidance on best practice for valuations of the various classes of assets and liabilities and for the consistent delivery of the standards by properly trained professionals around the globe. In Nigeria, Nigerian Institution of Estate Surveyors and Valuers (NIESV) the professional body saddled with responsibility of estate surveying and valuation practice has its own standards and guidance notes published in 2006, though majorly a duplication of IVSC on valuation, there was not any noted standard structure set for members for preparation of the feasibility and viability study.
In addition to the 2006 standards and guidance notes, recently, precisely in June 2013, NIESV also came up with the pilot property data bank on Lagos property market with the aim of extending it to Abuja and subsequently the whole of Nigeria. Again, this is a mere emphasis towards having a valuation standards, it is not extended to feasibility and viability studies. Feasibility and viability studies is next to valuation because it also have element of appraisal like the valuation, and they both have some features in common, in fact feasibility and viability study is the foundation of real estate valuation and decision making Chegut et al (2013).
Standards adherence therefore distinguishes professional from non-professional in field of practice. Furthermore, the courts now prefers to rely on the published standards of professional bodies for guide in their judgments especially in a liability cases such as negligence, fraud, professional incompetence and breach of contract Sampton et al (1998). It is generally accepted that the preparation of a feasibility and viability study is an important element early in the life cycle of an investment development project Laird, (2001); Amos, (2001). Typically, initial assessments of the development potential of a resource project are aimed at assessing the project’s key technical and economic characteristics, with subsequent assessments designed to confirm assumptions and reduce the uncertainty associated with the development to an acceptable level.
References to feasibility studies are often prefaced with ‘order of magnitude’, ‘preliminary’, ‘indicative’, ‘pre’, ‘final’, ‘bankable’, ‘definitive’, ‘detailed’ or other terms to indicate the level of detail investigated in a study. Resolution of technical issues is often seen as the primary focus of a feasibility and viability study, whereas in reality, these technical issues are the basis upon which a business plan is built. However, different people, different organisations and different situations inevitably give rise to different interpretations of what is to be investigated, what level of detail needs to be investigated, and even what is meant by technically feasible and economically viable in the context of a resource project development.
Although valuations as well as feasibility studies may be inaccurate because they are inexact science NIESV editorial (2009) and because of dissimilar bases and methods of valuation for the same valuation assignment (Ajayi, 2009). The range or gap or variation should however not be too wide especially if there is a standard set for the exercise. The professionals and their professional bodies are confronted with a new reality of changing value perceptions and systems among market participants, and offers practical recommendations on how to cope with this situation. Since an effort has been made towards ensuring standards in valuation task, this needs to be extended to feasibility and viability studies as well because both bothers on appraisal.
The feasibility study process must therefore demonstrate that not only have the technical issues been satisfactorily addressed, but also that the broader commercial, economic and social issues have been considered in the development of a comprehensive business plan, which includes an assessment of the risk-reward profile of the proposed development in a standard format. It is a characteristic feature of the resource industry that no two development projects – are the same. So these technical issues have to be addressed to a greater or lesser extent in evaluating any resource project’s development potential.
Not surprisingly then, technical issues tend to predominate when assessing the development potential of a project in the process typically referred to as ‘doing a feasibility study’. But the principal purpose of a ‘feasibility study’ is to determine whether a development opportunity makes good business sense, not just whether it is technically possible. The questions agitating this research effort are; how often is feasibility and viability study done by Nigerian Estate Surveyors? What formats were the report of feasibility study take at different firm’s perspective? Does one firm have access to feasibility report prepared by another firms, if yes how are they compared? Is there any need for standardization of feasibility and viability study amongst Nigerian Estate Surveying firms? Who should be involved in the setting of feasibility standards and what benefits could be derived from such standardization?
This research work is therefore set to establish the impact of feasibility/viability study on project development’ to pave way for best practice that will allow consistency in evaluation approach across a wide range of projects. This is hope to complement the initial efforts on standardizing valuation because both valuation and feasibility studies are breeds of appraisal. To achieve the aim of this research work, the work has been structured into 5 sections; section one is an introductory aspect followed by review of literature in second section. Third section is on study area and research methodology, followed by section four which is on the research findings and discussions from the findings. The fifth section was on summary of research findings and conclusion.
1.2 STATEMENT OF PROBLEM
Inspite of the unassailable and nature value of feasibility studies is to the realization of project objectives following problem are identified as a set back:
Improper identification of a business opportunity or wrong choice of project to be executed.
Timing of the proposed project. Some project are conceived at a wrong time with improper feasibility study carried out based on the project will not work. Inflation is another problem of using feasibility study for project realization. The use of quack or dubious consultant for the preparation of feasibility study can erase the importance of its use in the realization of project objective. (e) Political Interest supersede feasibility study in public sector.
1.3 OBJECTIVE OF THE STUDY
1. To identify the steps in project feasibility.
2. To examine stages that lead to the development of a feasibility study.
3. To determine factors to be considered when conducting a feasibility study.
4. To examine the need for feasibility/viability study before embarking on capital project development.
5. To find out the causes of development projects abandonment in Nigeria.
1.4 RESEARCH QUESTION
1. Are there steps in project feasibility?
2. What are the stages that lead to the development of a feasibility study?
3. Are there factors to be considered when conducting a feasibility study?
4. Is there any need for feasibility/viability study before embarking on capital project development?
5. What are the causes of development projects abandonment in Nigeria?
1.5 RESEARCH HYPOTHESIS:
H0: There are no steps in project feasibility.
H1: There are steps in project feasibility.
H0: There is no need for feasibility/viability study before embarking on capital project development.
H1: There is a need for feasibility/viability study before embarking on capital project development.
1.6 THE SIGNIFICANCE OF THE STUDY:
Thus study is carried out with the hope that the following parties will benefit from it.
Government agencies will find this study useful as it shows the extent to which feasibility study is useful before embarking on any project. Researcher will find the information in this study useful as additional data for their research. Student of management will benefit from this study. Reading it will enable them to know the practical side of the topic. Consultants can use the information in this study as additional input to their consultant jobs. Business men/Entrepreneur will benefit greatly from this study as it serves as eye opener to other essential aspect of management tool. Investors can make use of this study as a guide to any investment, to invest in any venture there is need for further plan. This can best be found in the feasibility studies. Financial Institutions who lend money for business venture will find the information in this study useful. It will show the fact that not every feasibility studies can be relied upon for giving loans.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
LIMITATIONS: The study centers on feasibility study and clothing business formation/ investment Drive. Mainly the importance of feasibility report, motives for forming or joining a clothing business society/ investment Drive and feasibility studies.
Sampled members of clothing business societies, management, and officials responsible for government departments charged with clothing business affairs were administered with questions.
The researcher in the course of this work seriously encountered financial and time constraints. Exorbitant, unreasonable, high and great transportation cost, apathy, limited clothing business books, journals, and other publications. Higher level of risk of traveling by road and the geographical spread of the data base constituted limitations in themselves.
The availability of correct and up to date information is not easy even the available ones still encounter wholly unnecessary bottlenecks due to our socio cultural milieu, bureaucracy and subterranean motive.
The researcher also encountered financial and time constraints, exorbitant, unreasonable, too high or great transportation cost, high level of risk of the data base constituted limitation themselves. This contributed to the researcher small sample size.
1.8 DEFINITION OF TERMS:
Importance: When we say something is important we mean it is of great influence, something that need to be treated seriously and having a great effect.
Feasible: When sometime can be done or can be managed and that is convenient, is described as feasible. The noun form of this is feasibility.
Study: This mean devotion of time and thought to getting knowledge of something. It also mean close examination of a subject.
Realization: This is the act of converting (a hope, plan etc.) into a fact.
Project: A project can be defined as a scientifically evolved work plan devised to achieve a specific objective within a specified period of time.
Obiective: Objective constitute the basic purpose of a firm. The aim, target or pursuit of an organisation is its objective. Objective are the ENDS toward which all activity is directed.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#20000) into our bank Account below, send the following information to
08139462710 or 08137701720
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) immediately we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.
But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.
Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.
No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner
CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project. Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.
That you ordered this material shows you have agreed not to copy word-to-word.
FOR MORE INFORMATION, CALL:
08139462710 or 08137701720
YOU CAN ALSO CALL:
08068231953, 08168759420
Visit any of our project websites below:
www.easyprojectmaterials.com
www.easyprojectmaterials.com.ng
www.easyprojectmaterial.net
www.easyprojectmaterial.net.ng
www.easyprojectsolutions.com
www.worldofnolimit.com
www.worldofnolimit.com
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.net
www.nairaprojects.net
www.uniproject.com.ng
www.uniprojects.com.ng
Tags: ANALYSIS OF IMPACT FEASIBILITY/VIABILITY STUDY ON CAPITAL PROJECT DEVELOPMENT IN NIGERIA
