CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Project management are inevitable on construction projects, primarily
because of the uniqueness of each project and the limited resources of time and
money that can be spent on planning, executing and delivering the project.
Project management services are inherent in all of project construction’s
undertakings. Construction projects have long been recognized as particularly
cost, time and risk-laden some of the time and cost factors associated with the
construction process are fairly predictable or identifiable; others may be totally
unforeseen. The constructed project may not perform as anticipated because the
owner may have unrealistic expectations regarding the delivery time of
construction forcing contractors into unrealistic gambles, corner-cutting or
commitments that may not be realistic (Frimpong 2015).
A successful project means that the project has accomplished its
technical performance, maintained its schedule, and remained within budgetary
costs. Project management tools and techniques play an important role in the
effective management of a project. Therefore, a good project management lies
in the management tools and techniques used to manage the project. Project
management involves managing the resources-workers, machines, money,
materiasl and methods used. Some projects are effectively and efficiently
managed while others are mismanaged, incurring much delay and cost overruns
and negatively affecting the economy (Frimpong 2015).

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 Assessing construction projects’ delivery time is critical in today’s
market-driven economy. To improve the economy and maximize long-term
return on this public investment, government agencies have recently started
utilizing new types of contracting methods that are designed to achieve multiple
project objectives, including minimizing construction cost and duration, while
maximizing its quality.
In recent years, many departments of transportation, in various states
have started to apply new highway contracting methods, including: Bidding on
time i.e., to encourage competition among contractors to minimize project
duration (Holt et al 2016). Incentive/disincentive contract clauses that provide
financial incentives to reduce construction duration. Night time construction
that seeks to cut service disruption and project time by requiring contractors to
work during off-peak nighttime hours, Warranty contracting that attempts to
improve construction quality by making contractors liable for the performance
of the facility after project completion. These new and emerging contracts place
an increasing pressure on decision makers in the contruction industry to search
for an optimal/near optimal resources utilization plan that minimizes
construction time while maximizing its quality. This creates new and pressing
needs for advanced resource utilization models that are capable of optimizing
the multiple and conflicting objectives of construction time, cost and quality.
Significant research advancements have been made in the area of
optimizing contruction resource utilization. This led to a number of

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optimization models. These models can be classified according to their
optimization objectives into models that attempted to:
While the above research study seeks to provide significant contributions
to the area of optimizing construction time, cost, and quality.
1.2 PROBLEM STATEMENT
Misallocation and misperception of time factor in construction projects have
resulted in the government of Nigeria paying more than necessary for many
projects. Improper time assessment can also cause additional costs in the form
of delays which result in poor utilization, increasing social and economic costs.
Are contractors using the most appropriate resources to execute allotted to their
contracts? What effects do short time period and/ or extended time periods have
on their project costs? Are there remedies to these situation?
These are some of the situations that have prompted the researcher to go deep
into the assessment of the cost and time impacts of public sector construction
project in Nigeria.
1.3 AIM
The main aim is to assessing the impact of project management services on
building construction project in Ilorin Metropolis.
1.4 OBJECTIVES OF THE STUDY
1. To establish the extent to which project management services on
building construction project.
2. To find out the change in the perception of contractors on the impact of
project management services.

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3. To find out the relationship between impact of project management
services and building construction project.
1.5 RESEARCH QUESTIONS
In order to achieve the objectives of the study, the following research questions
were used by the researcher:
1. What effects do project management services have on construction of
projects in Nigeria?
2. Has the perception of contractors on project management services in
projects construction changed in recent years?
3. What relationship exists between project management services on
building construction project?
1.5 RESEARCH HYPOTHESIS
Ho: There is no significant relationship between project management
services on building construction projects in Nigeria.
Hi: There is a significant relationship between project management services
of construction projects and economic development of Nigeria.
1.6 SIGNIFICANCE OF THE STUDY
All construction contracts allocate time between owners and contractors.
Hence the significance of this study would better inform improved project
relationships and communications and enhance administration practices
between owners and contractors.

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The findings would also enhance and broaden time of wide range of risks that
could materialize during the design, and construction phases of a project which
would subsequently result in better and more prudent design specifications.
1.7 SCOPE OF THE STUDY
The researcher will limit the study to the impact of project management
services on building construction project, using responses form some selected
project supervisors from Ilorin metropolis as a case study. Findings and
recommendations by the researcher may not be used for general analysis as the
researcher could not assess numerous construction projects due to time and
financial constraints.
1.8 LIMITATIONS OF THE STUDY
Construction of projects in the public sector has assumed significant functions,
hence the need for assessment on the impact of project management on building
construction project in order to achieve overall project objectives. Historical
project schedule and duration data is treated as confidential by Ilorin Metropolis
hence getting data for this study was very difficult. Data collection and analysis
was therefore limited to the data received from project supervisors in the field
of project construction.
1.9 DEFINITION OF TERMS
1. Economy: An economy consists of the economic system in certain
region, comprising the production, distribution or trade, and consumption of
good and services in that region or country. And economy is the total aggregate
sum of all transactions of value between two agents, such as one individual to

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one other individual, or between groups of individual activity, such as in
organizations to other organizations, and between one nation and another
nation.
2. Construction: In the fields of architecture and civil engineering,
construction is a process that consists of the building or assembling of
infrastructure. Far from being a single activity, large scale construction is a feat
of human multitasking. Normally, the job is managed by a project manager, and
supervised by a construction manager, design engineer, construction engineer
or project architect.
3. Deliverable: Deliverable is a term used in project management to
describe a tangible or intangible object produced as a result of the project that is
intended to be delivered to a customer (either internal or external). A
deliverable could be a report, a document, a server upgrade or any other
building block of an overall project.
4. Project management: This is the discipline of planning, organizing,
motivating, an controlling resources to achieve specific goals. A project is a
temporary endeavour with a defined beginning and end (usually time-
constrained, and often constrained by funding or deliverables), undertaken to
meet unique goals and objectives, typically to bring about beneficial change or
added value.
5. Conceptualization: This is an important aspect of the property
development process wrong decision take place at the planning stage would

6
have enormous negative effects on property during and after development
(Fraiser 2014).
6. Selecting an appropriate location: Just as improper timing will result to
unsuccessful development, improperly location lead to almost inevitable
development that failed to become described to orderly expansion. The
successful development of a new area requires careful study of past city growth
and structure and location of completing area (Enever N, 2014).
7. Analysing government regulation: Not only zoning and building
regulation important to environment control cost of complying with sewer and
road traffic and related requirements and other must be considered before
proceeding, the developer should consider if such laws, rule and regulations can
be reasonably compiled with costs of meting and making necessary reports will
not be excessive (Rees, 2013).
8. Construction period: The construction period probably present the most
important part of development programmes, the physical complexity of the
ground, the amounts often site preparation, the availability of material the
occurrence of unpredictable eventually all combine to produce wide margin of
possible performance (Stayplanton 2012).
9. Tenders and contract: This state involves preparation of contract
document, approval of working drawings and final details, quantity surveyor
draws bill of quantities, selection of preferred appointment of a contractor
(Staylaton 2012).

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 CHAPTER TWO
2.0 LITERATURE REVIEW AND CONCEPTUAL FRAMEWORK
The real property market is simply an omnibus term covering all
transaction in real property i.e. transactions involving interest and in
heterogeneous unit in many sub-market (Okoh, 2001).
It could be defined as “an economic mechanism rationing land and
buildings between completing and occasionally conflating users.
The general economy of Nigeria and its economic policies should be
carefully considered to show how it affects the performance and operation of
the real peoprey markets, one set back in the market operation results from the
price system which does not put into consideration, the social status of land to
both the buyer and seller (Ebenezer, 2012).
Some of the main features of the depressed economy which are seen
from the Nigerian case include a high cost of production, high interest rates,
over stock of good as a result of little or no demand rising cost of living rate of
unemployment among other (Tim 1973, pp 242).
The effect of those factors or the economy led to government to
introduced different policies which had the objectives of stimulation increase in
agricultural production especially stage food items and basic raw materials,
increased industrial production, reduce the rate of price inflation to a tolerate
level, achieve a healthy balance of payment posion and mobilize increased
domestic external financial resources to ensure increase in capital formulation.

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 Furthermore, the introduction of (SAP) in 2015 made all economic
activities of the country to change shape including the real estate market. It also
reduced the money in circulation in the economy. The high cost of capital in the
banks made borrowing difficult for the investor exchange market (SFEM)
which was introduced in September 1987 as one of the packages of SAP also
contributed and added its own share to the liquidity squeeze of bank deposits.
Thus, a policy made without effective implementation machinery is a good as
not having been made. The government deregulation of interest rate policy also
has brought about.
2.1 PROPERTY DEVELOPMENT PROCESS
The development of a piece of land is a process involve much more than
the carrying of construction works it starts perhaps many years before actual
construction commences and last well beyond the time when the new works are
completed. (Enever, 2014).
Until the new communication is fully occupied and used. While it is not
easy to pinpoint like exact time of commencement and completion, the
following stages have identified as reasonable describing process.
2.1.1 Conceptualization: This is an important aspect of the property
development process wrong decision take place at the planning stage would
have enormous negative effects on property during and after development
(Fraiser 2014).
2.1.2 Selecting an appropriate location: Just as improper timing will result t
unsuccessful development, improperly location lead to almost inevitable

9
development that failed to become described to orderly expansion. The
successful development of a new area requires careful study of past city growth
and structure and location of completing area (Enever N, 2014).
2.1.3 Analyzing government regulation: Not only zoning and building
regulation important to environmental control costs of complying with sewer
and road traffic and related requiremtns and others must be considered before
proceeding, the developer should consider if such laws, rule and regulations can
be reasonably complied with costs of meting and making necessary reports will
not be excessive (Rees, 2013).
2.1.4 Construction period: The construction period probably present the
most important part of development programmes, the physical complexity of
the ground, the amounts of the site preparation, the availability of material the
occurrence of unpredictable eventually all combine to produce wide margin of
possible performance (Stayplaton 2012).
2.1.5 Tenders and contract: This state involves preparation of contract
document, approval of working drawings and final detail, quality surveyor
draws bill of quantity surveyor draws bill of quantities, selection of preferred
appointment of a contractor (Staylaton 2006).
2.2 THOSE INVOLVED IN REAL PROPERTY DEVELOPMENT
1. The architect: He does the preliminary and final designing of the
project, sometimes: he plays the role of a project coordinator.

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2. The engineer: The structural electrical, civil and sanitary engineers have
their specific roles on their respective areas of specialization they normally
work closely with the architect at the final design stage.
3. The project manager and development controllers: He does the co-
ordination of the function of development teams he act as the professional
client representative. The project manager devotes his energies to planning,
scheduling and controlling of the field work and heart the responsibility for
getting the project completed within the time and cost requirement.
4. The builders: He handle the construction of the building he organize the
artisans mobilize materials construction he co-ordinates all the work force on
site and organize the judicious use of building materials on site.
5. The land surveyor: He demarcates and delineates the site to be
developed.
6. The quantity surveyor: They prepare the cost of the proposed
development; he makes sure that the project is executed in line with the cost
plan.
7. The lawyer: He handles all legal matter connected with land acquisition,
agreement foe letting, management and other relevant legal documents.
8. The estate surveyor and valuer: He assembles the suitable site for
development prepare the initial feasibility and viability report, project manager,
handles letting and scale of finished project. The estate surveyor and valuers is
involved at all the stage of development process and he is the person who help
the developer concrete his vague ideas he represent the developer at the

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construction stage and on completion, he is on left behind the site to let or
dispose of the property or take responsibility for is effective management until
the property is once again due for redevelopment (Thorn craft 1965).
2.3 CONCEPT OF REAL PROPERTY MARKET
The price of any commodity is generally determined by the university
accepted forces of supply and demand.
Property enjoys certain unique features that can make its infringe,
present value of the investors is therefore anxious to know how far actual
market conditions measure up to those the hypothetical idea market where
buyers and sellers meet in perfect completion.
And all equal informed as to the quality and quantity of the supply and
demand which constitute the choice before them so that only the price has to be
determined.
It is obvious that the property market does not conform to standard of the
heterogeneous nature of property. Property that is very nature in fixed in terms
of localized market between the seller and the buyers. The situation by way of
supply or demand and consequently price (Stayplaton 1).
The cost of construction of new houses not have corresponding failed to
the prices of the market in generally dictated by the prices of the existing stock
of properties. Until the amount of new building increase sufficiently to bring
supply and demand into equilibrium at a lower price level. However, the
increase in cost of the new uses result in a quick reduction in the supply as
prices cannot increase to due to the pricing level of the existing stock of houses.

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 Also any fall in demand cannot result in an automatic decrease in supply
as property cannot be stacked away like some other communities to be called
back into the market at a later date. A dramatic fall in demand usually lead to
slump in the property market. A good manager or investor would read the
market and watch out for sings that could led to a slump in a particular property
type or the general property market.
2.4 SOURCE OF PROPERTY FINANCE
The source of property finance can be classified into traditional and
modern sources:
1. Traditional sources: These sources are distinguishes because they are
products of our indigenous system. They are by far more restricted, less defined
and less developed that the modern financial system. The features of traditional
financial institution is that they are lack of any rationally standardized form and
specific statutory regulation as far their organizational structure and method of
operation (Ebenezer, 1983).
2. Modern sources: It can be of internal fund, banking and non banking
institutional as outline by Darlow 2010.
A. Internal fund are estate own resources either saved from income or
accused from capital transactions, such as sales or form capital transaction of
taking of premium, many estates owner make it of policy to allow for
depreciation on washing and provide sinking fund.
B. The bank that offers real estate credit for both bridging medium and long
tern are commercial banks, merchants bank and development bank which

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includes Nigeria, industrial development bank, Nigeria banks for commercial
and industry etc (Darlow 1982).
C. Non banking institution in under insurance companies while banking
institution provides safe custody and organized exchange which of course
involves risk, insurance company on the other hand provide against this risk by
spreading and loss that might occurs.
2.5 CONCEPT OF PROPERTY INVESTMENT
Investment is the act of laying out money now in return for a future
financial reward. Greer and Farrel (2018) defined for the prospect of later
benefits.
Investment involves committing resources some economic activities in
anticipation of or returns or benefit (Clendenis 2012), it requires foregoing
present consumption with the exception of greater benefit at a larger time. In a
strict economic sense, investment takes place only converted into real assets
such as building, equipment and plants.
2.5.1 QUALITIES OF GOOD INVESTMENT
Investment in land, along with holding of stock and bonds savings and
insurance are often cited as basic components of a rational investment
programme (Enever 2013).
The potential investors final choice should in all ramifications are that
investment with features which make it nearest to his ideal investment.
Among the requisite of a good investment are:

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i. Security of capital: The degree of certainly of return of capital is a
significant consideration for any potential investor.
ii. Risk: Investor have differing attitude to risk most investor tend to be
risk averse and require increased return for higher risks.
iii. Cost of transfer: It is easier for an investment to change hand before
commitment of capital into any venture.
iv. Divisibility: An investment that can be purchased is generally more
alternative because of possibility of pulling resources from diverse source
together top from a whole (Enever 2014).
2.5.2 TYPES OF PROPERTY INVESTMENT
A. Commercial properties investment
- Office
- Shops and stores
- Petrol station
- Service garage
- Conference centre
- Hotel and tourism
- Restaurant and snacks
- Market and market skills
B. Residential properties investment
- Flats
- Bungalow
- Twin houses

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- Condominium
- Duplex and semi detached
- Housing estate
- Marionette
- Mansion
C. Industrial property investment
- Factories
- Cottage industries
- Warehouses
- Large industrial plants
2.6 FACTOR AFFECTING HIGH COST OF BUILDING
MATERIALS
High demand for building materials arising from post civil were
reconstruction, creation of state and also the oil boom (Sa’ad 2007).
Building material and components constitute between fifty and sixty
percent (50-60%) of the total cost of construction input (Oyefeso 2005).
Consequently this sub-sector can be left to develop haphazardly. To stem to
current indiscriminate important of building materials local capabilities and
resources must be developed.
More so, the major factor affecting high cost of building materials can be
identified as follow (Oyefeso 2012).
1. Inefficient distribution system aggravated by middlemen and high
transportation cost

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2. The adoption of high space standards, costly specifications and over
design
3. Massive importation of building materials
4. Use of incompetent and in experienced contractors and consultant.
5. Absence of programming of award of building projects and inadequate
pre-planning by developer leading to excessive variation and attendant prices
increase.
6. Massive intervention of government in direct housing construction.

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 CHAPTER THREE
3.0 RESEARCH METHODOLOGY
3.1 THE RESEARCH DESIGN
Methodology is the systematic study of principle guiding scientific and
philosophical investigation. It is anything having to so with procedures of
techniques of investigation, that is, the set of research techniques used in one
piece of research.
There is no gain saying the fact that, in any empirical study, the method
of study is a very crucial aspect because there are several methods that are open
for the use of researcher and the choice of method will assist in evaluating the
adequacy and efficiency of the research findings and conclusions.
Methodological procedure also helps in examining the validity and
reliability of our research instrument. The over all aim of methodology is to
help in understood the broadest possible terms, the process involved in
scientific inquiry.
As part of the methodology, a good research design should therefore
address sampling, choice of research, method of data collection and
methodological problems.
3.2 DATA TYPES AND SOURCES
For a successful completion of any credible research, work some acceptable
types of data collection must be employed.
These types of data include primary and secondary sources:

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Therefore, primary data is the process of collecting data or gathering of
information that can be useful for the research work through the experimental
work performing by the researcher. In this type, information can be attained
through self observation, personal interview or visitation to the size of study
and issuing of questionnaires administered.
All the above method was performed during the course of data collection to
obtain vital information that useful for the research work.
Secondary method of data collection was also adopted by consulting so many
relevant textbooks, both published and unpublished, newspaper, and intent and
government publication book to obtain some vital information.
3.3 INSTRUMENTATION FOR DATA COLLECTION
The instrument adopted for collecting data were as follows:
3.3.1 SELF OBSERVATION AND PERSONAL
Personal interviews are used when respondent cannot read or write. In an
interview, since interviewer and the person interviewed are both present as the
questions are administered there is the opportunity of greater flexibility in
eliciting information. In addition, the interviewer has the opportunity to observe
both the subject and the total situation to which the respondent is responding.
This interview is conducted to back up the questionnaire; it involves the
research coming into physical contact with respondent.
The questionnaire will prepared for such interview in some cases, questions are
freely asked by the investigator.
ADVANTAGES OF PERSONAL INTERVIEW

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1. It is always detailed
2. No miss-interpretation of question
3. In case of ambiguities clarification are made on the spot.
DISADVANTAGES OF PERSONAL INTERVIEW
1. Coding of response may be difficult
2. Possible influence of personality.
3.3.2 USE OF QUESTIONNARIE ADMINISTERED
This is a form of questionnaire whereby the researcher or his agents send or
post to the respondent to be administered by themselves. In this case, the
respondent personally read the questions contained in the instrument
(questionnaire). The responses thereafter are entered there in by themselves.
Here the respondent has enough time, to pounder over responses, he is to give
to enough question contained in the questionnaire.
ADVANTAGES OF QUESTIONNARIE ADMINISTERED
1. Details and direct information could be get easily
2. High returns rate could also be obtained
3. No mis-interpretation of question
DISADVANTAGES OF QUESTIONNAIRE ADMINISTERED
1. It is to cost to apply
2. It gives low income rate of information
3. Difficult to obtained information from illiterate respondent.
3.3.3 THE USE OF SECONDARY DATA

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 The secondary data can be classified as data coming from internet
sources, some one written text, both published an unpublished one, magazine,
news paper government publication.
ADVANTAGES OF SECONDARY DATA
1. Adequate and details information could be easily obtained from some
one write-up.
2. It save time of the researcher
3. It also reduces the stress of the investigator.
DISADVANTAGES OF SECONDARY DATA
1. It does not give room for recent information
2. It make the researcher not to carry out the personal investigation.
3.4 SAMPLE FRAME, SAMPLE SIZE AND SAMPLING
PROCEDURE
From many planning policy or programme, to achieve it’s the population
for which it must be given consideration. Also in order to prevent under-
utilization of facilities and amenities, the future population protection can be
made.
For the purpose of this study, the head count of 2005 give the population
of Lagos Metropolis to be projected to 247 542 as at year 2007 (NPC). This
will be used to study the present population of Ile-Ife by using percentage
method.
Therefore, the largest population with the study area is about 84,758 by
using 10% of the total population of Lagos Metropolis, however this when

21
observed has the following breakdown commercial is 20,237 residential is
33,903, cultural social and recreational is 8,476. The systematic sampling was
adopted in this thesis.
3.5 METHOD OF DATA COLLECTION
As the plan for the evaluation of my project, many valuable methods
were used for collecting useful information for the project work. Hence,
personal interview and self observation were made by asking question directly
from the respondent through physical contact.
Therefore, self observations were also made by observing the study area
through the physical nature, present, past and future appearance.
More so, field surveying were also carryout for collecting data for the
research project and questionnaire was administered for those who can read and
write for collecting detail and accruable information for the project work.
3.6 METHOD OF DATA ANALYSIS
Data collected were analysed by using statistical method that involves
table, bar chat e.t.c. percentages and frequencies were also adopted so as to be
able to present my data with precise finding inferences.

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 CHAPTER FOUR
4.1 DATA PRESENTATION AND ANALYSIS
This chapter look into the result collected through the questionnaire for
the presentation of data and also summaries the result of research work in order
to achieve the aim of the study. The data collected were respondents on the
impact of project management services on building construction project. The
presentation of data utilizes the tabular form of presentation.
4.2 DATA PRESENTATION
The survey form of questionnaire were administered to a randomly
selected project stakeholders (i.e. clients, users of construction products, public
authorities and agencies in Ibadan metropolis). A total number of forty-six (46)
questionnaire were distributed and thirty-three (33) complete questionnaire
(representing about 72% responses) were retrieved, hence, the sample size for
the study is 33 respondents.

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