ABSTRACT
The construction industry is the economic prime mover of nations and it influences and propels infrastructural provision and development. Labour Efficiency losses on construction works have denied the reaping of the full benefits of the industry; as it has led to cost and time overruns, poor quality, claims and disputes. The aim of this study is to assess the effect of efficiency losses on the performance of construction projects, with a view to suggest possible solutions at minimizing their occurrences. The study gathered data through the self-administration of questionnaires using simple random sampling techniques. With a response rate of 42.16% and an average reliability index of the gathered data is 0.846, the data were analyzed using Percentages, frequency, Mean Item Score (MIS), Relative Importance Index (RII) and factor analysis (FA). The study found that major methods of measuring efficiency losses in construction are; Total Cost Method, Baseline Productivity Analysis, Measured Mile Method, Expert Opinion, Published Inefficiency Factor and Earned Value Analysis Method. The causes of efficiency losses are Construction method and poor document, Communication and materials related causes, Poor supervision and planning, Equipment installation related causes, industrial action and weather related causes. The most important factors of time performance are; problems of funding, frequent equipment breakdowns, and incompetent project team. Efficiency losses impact on time, cost and quality. Efficiency losses can be minimized on construction projects through Project Leadership, Effective Communication, Adequate Supervision, Project Monitoring, and Workers Training and Education. Efficient communication, use of experienced supervision, training and retraining of workers, and proper scheduling and planning of activities of construction projects are recommended. This research therefore establish that labour efficiency losses affect time performance as a result of time loss in late delivery of materials, extra cost in redoing poor delivered work, poor communication, unavailability of materials in the market leading thereby leading to dissatisfaction of clients and loss of potential clients. Consequently, the study recommended that; Clients should ensure adequate provisions for funding are made prior to embarking on construction projects just as poor financial standing has a demotivating effects on capital projects performances. The period of construction should be properly timed and schedule to avoid the negative effects of inclement weather. Adequate provision of materials, equipment and tools is required to ensure timely delivery of construction projects and improved productivity of labour. Top management should provide the needed environment for the free flow of information and exchange of ideas. Experienced supervisory staff should be engaged to ensure that works are discharged as planned. Staff training and retraining on modern construction methods is important to ensure that construction experts are update with the trends in the construction industry. The construction industry is the economic prime mover of nations and it influences and propels infrastructural provision and development. Labour Efficiency losses on construction works have denied the reaping of the full benefits of the industry; as it has led to cost and time overruns, poor quality, claims and disputes. The aim of this study is to assess the effect of efficiency losses on the performance of construction projects, with a view to suggest possible solutions at minimizing their occurrences. The study gathered data through the self-administration of questionnaires using simple random sampling techniques. With a response rate of 42.16% and an average reliability index of the gathered data is 0.846, the data were analyzed using Percentages, frequency, Mean Item Score (MIS), Relative Importance Index (RII) and factor analysis (FA). The study found that major methods of measuring efficiency losses in construction are; Total Cost Method, Baseline Productivity Analysis, Measured Mile Method, Expert Opinion, Published Inefficiency Factor and Earned Value Analysis Method. The causes of efficiency losses are Construction method and poor document, Communication and materials related causes, Poor supervision and planning, Equipment installation related causes, industrial action and weather related causes. The most important factors of time performance are; problems of funding, frequent equipment breakdowns, and incompetent project team. Efficiency losses impact on time, cost and quality. Efficiency losses can be minimized on construction projects through Project Leadership, Effective Communication, Adequate Supervision, Project Monitoring, and Workers Training and Education. Efficient communication, use of experienced supervision, training and retraining of workers, and proper scheduling and planning of activities of construction projects are recommended. This research therefore establish that labour efficiency losses affect time performance as a result of time loss in late delivery of materials, extra cost in redoing poor delivered work, poor communication, unavailability of materials in the market leading thereby leading to dissatisfaction of clients and loss of potential clients. Consequently, the study recommended that; Clients should ensure adequate provisions for funding are made prior to embarking on construction projects just as poor financial standing has a demotivating effects on capital projects performances. The period of construction should be properly timed and schedule to avoid the negative effects of inclement weather. Adequate provision of materials, equipment and tools is required to ensure timely delivery of construction projects and improved productivity of labour. Top management should provide the needed environment for the free flow of information and exchange of ideas. Experienced supervisory staff should be engaged to ensure that works are discharged as planned. Staff training and retraining on modern construction methods is important to ensure that construction experts are update with the trends in the construction industry.
CHAPTER ONE
1.0 INTRODUCTION
1.1 Background of the Study
The execution of construction of projects is capital intensive and as such consume much money. The aim of every construction work is to give the client the best value for his money that is; a building that meets the user requirements at the cheapest cost according to terms of the contract. The goal of a contract or the end of a contract is that the procurement of any good or service should be successful upon completion of project.
In the construction industry, skilled workers such as masons, carpenters, iron benders, among others form a larger part of site labor workforce whose input determine the quality of the industry’s products. These skilled workers however, are most endangered in Nigeria as they lack adequate training, technical education and experience to recommend them for work. Thereby, affecting their performance and productivity on construction projects which could consequently result in cost and time overruns of projects. Productivity loss occur and when the contractor is not achieving his planned production rate, consequently, leading to efficiency losses (Gibson, 2015).
It is therefore quite daunting to quantify productivity loss caused by factors outside the contractor’s control. Calculation of efficiency losses is arguably one of the most disputable area in construction claim. “Efficiency losses unlike direct costs are usually difficult to track and cannot be discerned separately, and as a result of this, both causation and entitlement regarding efficiency loss recovery become difficult to establish” (Gibson, 2015).
Dieterle and Gaines (2010) opined that almost all projects with claims for delay and damages associated with loss of labour efficiency contributed to such delay. Therefore, it is important to carry out this study as it will investigate and describe the concept of efficiency losses as well as its effect on the time performance of construction project.
1.2 Statement of the Research Problem
Dieterle and Gaines (2010) opined that efficiency losses claims are prevalent in many construction disputes. They are of the opinion that efficiency losses are not well understood and often difficult to quantify. This was further buttressed by Egwunatum and Ovie (2015) who were of the opinion that efficiency loss calculation or estimation is one of the most contentious areas in construction industry. According to, Eze et al. (2020), the decline in labour productivity and efficiency of operations of the contracting organisation is a problem that has negatively influenced the industry’s contribution to national economy. The declining labour productivity is due to the fact that the industry is labour-intensive, and labour productivity issue is among the critical issues facing the construction project managers and other professionals and supervisors on a regular basis, as they strive to deliver project on target (Attar et al., 2012). According to Gledson et al (2018), construction project is adjudged a success if cost, quality, time and scope are attained with any shortcoming registered in one or more of these representing a failure of sort. They further buttressed that it is observed that more recent research effort has been focused on poor time predictability but minimal attention is given to research on planning labour efficiency to facilitate timely delivery of construction projects.
1.3 Research Questions
This study attempted to answer the following questions:
i. What are the various methods of measuring efficiency losses in construction?
ii. What are the factors responsible for efficiency losses in construction projects?
iii. Is there any relationship between efficiency and time performance?
iv. Are there measures of minimizing the occurrences of efficiency losses on construction projects?
1.4 Aim and Objectives of the Study
This study aimed to assess the effect of labour efficiency losses on the performance of construction firms with the view to suggest possible solutions to minimize the occurrence of such losses.
The objectives are as follows;
i. To determine and rank methods of measuring efficiency losses by construction firms.
ii. Examine factors responsible for efficiency losses in construction projects.
iii. To examine the effect of efficiency losses on time performance of construction firms.
iv. To determine measures of minimizing the occurrence of efficiency losses on construction projects.
1.5 Justification of the Study
Ismail et al (2019) observed that timely delivery of construction projects lies largely on the performance of labour. Unfortunately, labour performance growths in Nigerian construction industry have been unsatisfactory. The abysmal performance of labour has remained a key problem in the construction industry as it constitutes a major claim head in the construction industry of Nigeria (Egwunatum and Ovie, 2015), especially as it has to do with the relationship between clients, consultant, and contractors. Decline in labour productivity has been claimed as responsible for the poor construction project delivery, and it has been the leading cause of claims, conflicts, quality issues and cost overrun especially in major construction projects globally (Eze et al., 2020). Construction productivity is dependent on labour productivity; even though labour productivity is a sub-domain of overall construction productivity (Rao et al, 2015). An effective management of labour in construction can lead to labour cost reduction; as labour cost constitute about 30% to 50% of total construction projects cost (Gopal and Murithi, 2017; Shashank et al. 2014).
It can be deduced from above that in spite of the efforts of researchers on possible ways of eliminating or minimizing cost and time overruns in construction and their devastating impacts on the parties to a construction projects, the issue has remained unchanged. Thus, the need to assess the impact of labour efficiency loss on time performance of construction projects.
1.6 Scope and Delimitations of the Study
This study covers the assessment of the impact of labour efficiency losses on the performance of building construction projects, with a particular focus on Abuja, Nigeria. The main interest is to sample the opinion of construction professionals, including (contractors, subcontractors, and consultants) on the subject under consideration.
The researcher studied projects that are 50% to 100% completed. Projects that are 100% completed would have had all disputes and claims settled. Projects that are 50% completed are at its peak and this stage has a lot of claims and disputes. Some of these claims and dispute would have been settled.
The rationale behind the choice of Abuja is considering the fact that a lot of construction and consultancy firms are in the city. Thus, there is a very high possibility of getting samples which will aid in achieving the objectives.
1.7 Hypothesis of the Study
The following are the hypotheses put forward to guide the achievement of the study objectives:
H01: There is no statistically significant effect of efficiency loss on time performance of construction projects.
HA1: There is statistically significant effect of efficiency loss on time performance of construction projects.
This material content is developed to serve as a GUIDE for students to conduct academic research
EFFECT OF LABOUR EFFICIENCY LOSSES ON THE TIME PERFORMANCE OF CONSTRUCTION PROJECTS
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