TIME AND COST PERFORMANCE LIABILITY ALLOCATION IN THE BUILDING PROCESS
TIME AND COST PERFORMANCE LIABILITY ALLOCATION IN THE BUILDING PROCESS
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Date
1988-09
Authors
ADETUNJI, OLALEKAN ADELEYE
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Abstract
The subject of this thesis is construction risks and
the allocation of any loss incurred as a result of their
occurrence amongst parties to a contract. This is with the
broad aim of improving on the achievement of cost and time
t a r g e t s for a project, hence, reducing cases of abandoned
projects in Nigeria. To this end, the following objectives
were pursued. The identification of those factors that cons
t i t u t e risk, examination of the roles of the conditions and
types of contract in the allocation of these r i s k s , and the
determination of a reasonable proportion of allocation among
the parties to a contract.
In pursuance of the objectives of this thesis, a pretested
questionnaire was administered in conjunction with
personal interviews of consultants in the construction i n d u s t r y.
The survey covered Lagos, Oyo, Kacluna, Bauchi and
Borno States.
Seventy-six percent (76%) of respondents argued that
poor achievement of cost and time targets in building projects
can be attributed to non-compliance with the conditions of
contract which is the main vehicle for allocating construction
r i s k s . The major reason advanced for this situation is that
the conditions of contract as presently constituted does not
reflect the Nigerian construction environment. The need to
review the conditions of contract to take into proper consideration,
those risks oi particular relevance to the Nigerian
construction environment was emphasised.
This thesis has identified risks that often adversely
affect construction projects when they occur. Proportions
of allocation amongst the parties to a contract that are anticipated
to effectively provide for any loss incurred as a result
of the occurrence of these risks were subsequently proposed.
The likely benefits when the proportions of allocation
are implemented include the minimization of litigations and
conflicts among the parties to a contract and the achievement
of more competitive and realistic tenders from contractors.
The responsibility for a percentage of the loss caused by the
occurrence of an externally arising risk factor by each of the
parties to a contract, ensures the utilization of their
incentive to mitigate losses. Their commitment to the successful
completion of the project is thus assured.
Description
A thesis submitted to the Postgraduate School,
Ahmadu Bello University, Zaria in partial fulfillment
of the requirements for the award of the degree of
Master of Science in Construction Management
Department of Building
Faculty of Environmental Design,
Ahmadu Bello University, Zaria
Nigeria
SEPTEMBER, 1988
Keywords
PERFORMANCE,, LIABILITY,, ALLOCATION,, BUILDING PROCESS