WHOLE LIFE COSTING PRACTICES EMPLOYED BY DESIGN TEAMS OF BUILDING CONSTRUCTION PROJECTS IN ABUJA, NIGERIA

ABSTRACT

The Bureau for Public Procurement (BPP), which was established by the Public Procurement Act of 2006 to oversee the procurement of public projects through inter-alia the application of Value for money (VfM) practices, has admitted that “…lowest initial price may not equate to lowest cost over the operating life of the item procured”. The application of Whole Life Costing (WLC) in building projects is still limited and there is a need to explore the application of WLC among members of the design team. This study aimed to evaluate WLC practice by design team members of housing projects with a view to enhancing value for money spent on housing. The objectives of the study include determining the extent to which WLC has been practiced, and examining the drivers and barriers of the use of WLC by design teams. The study adopted a quantitative research design that was based the use of questionnaires. A convenience sample of relevant professionals in construction firms who could be accessed electronically was built up through a snowballing approach, which eventually yielded a total of 63 professionals. The data thus gathered was analyzed using descriptive statistical method (Mean Item Score and Standard Deviation) and the results were presented using tables and charts. The study found that construction professionals tend to consider only construction cost as representative of overall project costs, often to the exclusion of other important types of costs. Availability of data and clients specifically requesting the use of WLC are two key factors that drive WLC use. Use of WLC is however hindered by absence of WLC standards, use of WLC is non-mandatory for public projects, and insufficient end-user training. This study has recommended urgent up-skilling of construction professionals for WLC use through Continuing Professional Development (CPD) seminars, redesign of tertiary education construction curricula, and amendment of existing laws that currently ignore WLC. These can only be achieved through joint effort of the Bureau of Public Procurement (BPP), trade associations such as the NIQS and statutory bodies such as the QSRBN, COREN and CORBON. Further research in this area could be carried out on the effect of type of project on the practice of WLC in building construction projects.

CHAPTER ONE

1.0       INTRODUCTION

1.1       Background to the study

Globally, the construction industry plays a vital role in the economy of both developing and developed nations. According to Abdulwahab (2015), the construction industry represents about 60% of the Nation’s Capital Investment and 30 % of the Gross Domestic Product (G.D.P). Furthermore, the construction industry is said to have contributed about half of the Total Stock of Fixed Capital Investment (T.S.F.C.I) in Nigeria economy. The construction sector likewise gives the framework that upholds different areas of the economy.

The Nigerian construction industry (NCI) had been portrayed as a ‘sleeping giant’ as far as administration conveyance and ability to fulfil the necessities of its clients (Kolo & Ibrahim, 2010). The Nigeria industry additionally produces work openings which place it second to the public authority in employment of labour (Abdulwahab, 2015). At the point when the construction industry was blasting in the mid 1970’s the country’s economy experienced comparable impacts during that period. Notwithstanding, from early to mid-1980, the industry experienced a jolt and its effect was felt in all spheres of national life (Abdulwahab, 2015).

In endeavouring to upgrade good government in public procurement, the Nigerian government charged the World Bank as a team for certain Nigerian Private Sector Specialists to attempt investigations of its monetary frameworks and general acquirement related exercises. The investigation created the Country Procurement Assessment Report (CPAR) 2000 which prompted the birth to the Public Procurement Act (PPA). The Act set up the Bureau for Public Procurement (BPP) to regulate and set guidelines for the acquirement of public procurement projects through inter alia the use of Value for money (VfM) standard and principles.

The BPP, in its public procurement manual, clarified that “value may suggest something other than price, quality issues additionally should be tended to and lowest initial price may not equate to lowest cost over the operating life of the item procured”. Although the document did not make reference to whole life cost (WLC) as an idea for accomplishing VfM, it recognized that the initial price probably would not mean VfM. According to Aliyu (2017), VfM is characterized as “the the optimum combination of whole life cost (WLC) and quality to meet the client’s  requirement”. Consequently for VfM to be accomplished the whole life cost of the facility should be considered.

WLC theory has been grounded but has not gotten wide practical application. This is because of the issues of information shortage, uncertainty and the need for evaluating non-money related components Kishk et al. (2013). Application of WLC among team members is limited; in spite of the fact of increasing research patterns are expanding here (Dallas, 2006). It is with respect to this that models were created by different establishments and professional bodies to overcome the previously mentioned issues (Bryman & Bell, 2008).

Research conducted in Nigeria in the area of WLC incorporate that of Ibrahim et al. (2010) which recognized the qualities of WLC information in the Nigerian construction industry to incorporate non-formal documentation of sources, accessibility, dependability and consistency of WLC information just as a standard methodology for the assortment, examination, approval and introduction of WLC information. Bala et al. (2018) built up a model to conquer the issue of information shortage and vulnerability in the Nigerian development industry. Bala et al. (2018) further tried the proficiency of the model created and discovered that it was a solid instrument. Others include those of Ityobee (2016) and that of Bimba (2018). Ebunoluwa (2016) researched the use of WLC in building projects in Nigeria, while Bimba (2008) investigated the use of WLC in the design of hotel reception.

The Nigerian based examination in WLC made fantastic disclosures on the attributes of the information just as giving the answer for the issue of information vulnerability and shortage, however they exist a hole as WLC rehearsed utilized by configuration group of building constructions.

1.2       Statement of the Problem

Globally the practices of WLC towards the achievement of VfM have been streamlined through the provision of definitive guides and standards. An example is the Office of Government Commerce guide 7 of the UK, the green Book-HM treasury (UK) launched by HM Treasury (2013) and BS ISO 15686 1 to 5.

The BPP produced two documents to serve as a guide in the procurement of public projects which are the public procurement manual and the Standard Bidding Document (SBD). These two documents addressed issues regarding transparency and the selection of the lowest evaluated tender but no mention was made of WLC concept therein. The non inclusion of WLC concept in the BPP guides assumed that there are established practices for  WLC in Nigeria. The absence of standard procedures to set out how VfM can be achieved through WLC of the project would lead to varied understanding of the concept as well as varied methods in the practices. These two factors are barriers to  a streamlined WLC practice as identified by Ebunoluwa (2016), Rum & Akasah, (2011), (Chirigwi et a1., 2010).

Ityobee (2016) found out that the few firms that carried out WLC in Nigeria do it based on the client request; even though the type of client was not indicated. Furthermore, the research was conducted prior to the enactment of the PPA. Consequently, the non-inclusion of guide for WLC implementation towards the attainment of VfM in public procurement in Nigeria since the enactment of PPA makes the study of the state of the art of WLC application in the procurement of public buildings a necessity in support of this, A1iyu (2017) found out that there is a need to explore the understanding and practice of WLC among the design team.

1.3       Research Questions

The following questions were answered in order to address the problem of the study

i.      To what extent Whole Life Costing been practiced by design teams of building construction projects in Abuja, Nigeria?

ii.      What are the factors responsible for driving the practice of Whole Life Costing by design teams of building construction projects?

iii.      What are the barriers hindering the use of Whole Life Costing by design teams of building construction projects?

1.4       Aim and Objectives

The aim of this study is to evaluate the practice of WLC by members of design teams of building construction projects in Abuja, Nigeria with a view to enhancing value for money spent on housing.

The objectives of the study are to:

i.      Determine the extent to which WLC has been practiced by design teams of building construction projects in Abuja, Nigeria.

ii.      Examine the factors responsible for driving the practice of WLC of building construction projects.

iii.      Examine the barriers hindering the use of WLC by design teams of building construction projects.

1.5       The Need for the Study

Part of the objectives of the BPP is “ensuring the application of fair, competitive, transparent, value-for-money standards and practices for the procurement and disposal of public assets and services” (PPA, 2019). This statement implies that it is required for every public building project to be procured in a manner that will ensure that VfM (which has  been  well-1inked  with  WLC  practices  among  design  team).  Previous  study by Olubodun et al. (2010) has identified client demand for WLC practices as the key motivation for undertaking WLC. Olubodun et al. (2010) further revealed that the lack of understanding and the absence of a standardized methodology for the practice are barriers to the implementation of WLC in the UK (Olubodun et al., 2010).

In Nigeria, the current knowledge base and skills of design team members in implementing WLC remains unknown and non-provision of guides by the BPP could lead to varied understanding and application of WLC technique. Thus, this study seeks to investigate the state of the art with respect to WLC practice among the design team members in public building projects towards the achievement of VfM.

1.6       Scope of the Study This research considered issues on implementation of WLC by members of design teams of building construction projects with a view to enhancing value for money spent on building projects in Abuja. The scope is limited to design teams in Abuja because of the concentration of ongoing projects in the location, as well as the fact that the researcher is familiar with this location. Data for the study was collected within 2020, from construction professionals only

₦8,000.00 – DOWNLOAD FULL PROJECT DOWNLOAD FULL PROJECT Added to cart

---

---

---

---

Related Project Topics :