The Yaba Journal Of Environmental Research School of Environmental Studies Yaba College of Technology Vol. 2 No. 1 February 2013 ISSN: 2006 - 6651 The Yaba Journal Of Environmental Research

Editorial Board: Bldr. Balogun M. Oludare (Dean) Chairman Okoh Victor P. O. Editor-in-chief Dr. Olaseni A. M. Bldr. (Dr.) Awe E. M. Dr. Sule O. T. Arc. Ariyo L. O. (Secretary)

Dean, School of Environmental Bldr. Balogun M. Oludare Studies

Assessors Dr. (Mrs) M. M. Omirin Dept. of Estate Management, University of Lagos, Lagos, Nigeria.

Dr. M. O. Solanke Centre for Transport Studies, Olabisi Onabanjo University, Ago-Iwoye, Ogun - State, Nigeria.

Dr. A. I. Ademiluyi Dept of Geography and Planning, Olabisi Onabanjo University, Ago-Iwoye, Ogun - State, Nigeria.

Prof. K. T. Odusami Dept. Of Building Technology, University of Lagos, Lagos, Nigeria.

2 A Publication of the School of Environmental Studies, Yaba College of Technology Mrs. Titilayo A. Ukabam Dept. of Estate Management, Yaba College of Technology, Yaba, Lagos, Nigeria.

Dr. A. M. Olaseni Dept. of Urban & Regional Planning, Yaba College of Technology, Yaba, Lagos, Nigeria.

Mr. L. A. Agbetunde Dept. of Accounting, Yaba College of Technology, Yaba, Lagos, Nigeria.

Mr. A. O. Omolabi Dept. of Urban & Regional Planning, Yaba College of Technology, Yaba, Lagos, Nigeria.

Dr. J. O. Adeniji-soji Dept. of Town and Regional Planning, The Polytechnic, Ibadan.

Mr. O. O. Ayannuga Dept. of Computer Science, Yaba College of Technology, Yaba, Lagos.

Mr. R. Adigun Dept. Of Computer Science, Yaba College of Technology, Yaba, Lagos

Research Development & Mr. V. P. O. Okoh - Chairman Publication Committee Arc. L. O. Ariyo - Secretary Tpl.. J. O. Oke Bldr. Akinsola O. E Mr. Nwanadi L. M

3 A Publication of the School of Environmental Studies, Yaba College of Technology TABLE OF CONTENT

1. Spatial management of space for the dead: a comparative study of Ayobo and Victoria Court Cemeteries. Okesoto, J. O. and Aledare, K. D. 5

2. Evaluation of procurement systems performance for Mechanical and Electrical services towards effective delivery of Building products. Fatokun A. O., Fapohunda J. A., Alli, O. R., and Ibironke, O. T. 16

3. A comparative study of the performance of traditional and design & build procurement methods in Lagos State.B. A. Mafimidiwo 31

4. Finance: Its influence on the housing investment and delivery decisions by private sector in Lagos. Ngozi V. Udoetuk 44

5. The use of balanced score card by facility managers: A means to effective Performance. Oyenuga, Sinmisola O. 61

6. Advocating effective public project planning, financing and implementation as the bedrock for sustainable national development. Ojo-fajuru, J. O. 77

7. Evaluation of project management practice in Nigerian building` industry consultants perspective. Olamilekan M. Ogunbayo 96

8. Power system automation: An assessment of benefits to developmental growth. Mafimidiwo, O. A. 109

9. Intelligent traffic control system. Elusoji A. A. & Akanji A. W. 119

4 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare SPATIAL MANAGEMENT OF SPACE FOR THE DEAD: A COMPARATIVE STUDY OF AYOBO AND VICTORIA COURT CEMETERIES

OKESOTO, J. O. AND ALEDARE, K. D. DEPARTMENT OF URBAN AND REGIONAL PLANNING, YABA COLLEGE OF TECHNOLOGY, YABA, LAGOS.

ABSTRACT The paper compares space design and management of cemeteries between the Victoria Garden Court (Privately owned cemetery) and Ayobo( publicly owned cemetery). Research was applied in nature and primarily field based. The study showed that large disparity exist between the two cemeteries based on parameters like service provision, space design and layout, environmental impacts, physical attributes and security . The Victoria Court cemetery owned by HFP Engineering exhibits better attributes over the Ayobo public cemetery. The paper opined that minimum requirements should be set for cemeteries and both private and public sectors should strive to meet these requirements. Provision of cemeteries should also be done on district basis as against its regional provision. Re-use of grave sites should also be discouraged while private investment and corporate support for building of cemeteries should be encouraged.

Keywords: Cemetery Private, Public, space the dead, the living . 1.0 Introduction space, the greater part of this activity is Increasing profile of human population devoted to active uses, and little or and its activities have all subjected land nothing in some cases are done resources into high pressure. Man, like the concerning spatial allocation for the dead. nature declares, keep on multiplying and Land value in the urban centre, the increasing dominating his environment. heterogeneous nature of our population, Space all over the world is increasingly modern housing design and the globalised becoming restricted in the midst of all nature of our system have made it these. Consciously man provides for all increasingly difficult for land to be activities; recreation, communication, properly allocated for the dead. industry, commerce, residential and In most cases, lands allocated are either farming but little did he realize that he has marginal, loop lands or lands that limited time on earth and thereafter he will command no value and in most cases such die. His place of rest after cessation is space/site are either ill managed or not never given proper attention in the midst managed at all. Place for the dead by all of all his adventures. Physical planning is standard is receiving little or no attention. one of the major occupation of man It is obvious that death is inevitable and it primarily concerned with management of is compulsory for all being irrespective of

5 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare social status and size. Where the dead are 1.1 Related Researches not properly disposed and traditionally A place for the dead in every literature taken care of, it is capable of creating refers as cemetery, (Dent, 1998, Badejo, physical, environmental, health and 1999). They all define cemetery as a place spiritual problems. set apart for the burial or embalmment of The evidence of this neglect is more the dead. Spatial restriction, cultural pronounced in a country like Nigeria variation and religion beliefs in the where unlike the other sector of the opinion of several authors (Ajala, 1993, society investments come from both Oladejo, 2002, Dent, 1998) are the basic public and private sectors. Cemeteries factors shaping burial practices across the being the site for the dead has remained a globe. The cessation state of the dead ones public provision several years ago. But buried in cemeteries make their sites lately in the cities of Lagos and Port- vulnerable to ill management and Harcourt cemeteries, because of the maintenance (Saidi, 2009). importance attached is gradually Contrary to worldwide standards, major capturing the attention of private investor, burial sites in the less developed countries hence private cemeteries such as that of like Nigeria are ill maintained and poorly Victoria garden court in Lagos have managed. Researches over the years have sprang up. More so, the number is highly paid little or no attention on the need to insignificant compared to the need and to plan for the dead in term of their spatial that of the public cemeteries. requirement. The general assumption is that the states of these public cemeteries are nothing to 1.2 Study Area write home about. The sites are poorly The study area of this paper includes kept, ill arranged and unsafe even for the Ayobo and Victoria Court cemeteries. dead. Human remains in most of our Ayobo cemetery is one of the newest cemeteries are haphazardly done; plots in public cemeteries in Lagos Metropolis. them are unplanned. Some constitute The cemetery was established in year source of atmospheric and underground 2004 on 10 hectares of land existing water pollution, also burial in most cases along Ipaja - Ayobo road adjoining lacks records. It is for this reason that the landscape include the PHCN 33kv sub management of space in Ayobo cemetery station. The cemetery is presently (public) is compared against the Victoria managed by Alimosho L.G.A, one of the court cemetery (private). 20 LGAs in Lagos State. The paper is aimed at improving the spatial Victoria Court cemetery on the other hand provision for both public and private is the first private cemetery in Nigeria. It is cemeteries in order to secure a better a novel idea in the country. The cemetery environment not for the reason of the dead was built in 1997 on 4,128 hectares of land but for the good health of the living ones. on plot AB Lekki Peninsula sub region The paper therefore advocates the need for along km 36 Lagos- Epe Expressway, Epe proper management of burial sites. in Ibeju- Lekki LGA. The cemetery unlike

6 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare the Ayobo cementary is divided into administered on them, touching on different segments along religious lines. subjects like: operation and maintenance The cemetery is managed by HFP costs, design consideration, development Engineering. The site since inception have cost, management, location consideration provided for a total of 12,876 dead. among others. Users of the cemeteries also had 1.3 Research Methodology questionnaires administered on them on The research relies largely on field survey. issues relating to satisfaction, service The two cemeteries were compared using delivery, security, confidence, cost and the following variables; location, relating issues. A particular Friday was set accessibility, planning regulation aside for this purpose, a total of 24 compliance, environmental impacts, site questionnaires were administered on the suitability and many others. Each of these relations of those that come to bury their variables was measured comparatively dead ones at an average of one and scores obtained were weighted questionnaire per buried person. This was against each other. Results obtained were done on a Thursday and Friday of the compared for purpose of decision making week. on the two compared cemeteries. Perception of the residence around the two 2.0 Results cemeteries was also obtained via the use 2.0.1 The People Living Around the of questionnaire. Houses at about 200 Cemeteries meters radius away from the two The survey reveals that 52 (89%) of the cemeteries had questionnaires adminis- respondents are married while 8(11%) of tered on their occupants. The Victoria them are not, a total of 41 (68%) of them Court cemetery has a total of 30 houses are females and 19 (32%) are males. All of within the desired radius while Ayobo the respondents have their age above 24 cemetery has a total of 120 buildings. The years, out of the number a total of 24 entire 30 buildings around Victoria Court (40%) had secondary education though cemetery had one questionnaire this figure is slightly higher around Ayobo administered per building and twenty five cemetery, 18 (30%) all found around percent of the building at Ayobo cemetery Ayobo had primary education and a total representing 30 buildings equally had one 18 (30%) of them have post secondary questionnaire randomly administered on education, greater proportion this is found them. In all a total of 60 questionnaires around Victoria court cemetery, Eputu. were administered on the residents around the cemeteries. Data solicited from them The survey equally showed that 48 (80%) include; residential characteristics of the of the respondents are employed, while respondents, locational impacts of the 6(10%) are unemployed and 6 (10%) are cemeteries on them and their general view retirees. Out of the total number of the about the cemeteries. Managers of the two respondents that are employed 16 (33%) cemeteries equally had questionnaire of them are civil servant, 22 (50%) are into

7 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare self employment and 8 (17%) of them are into private employment (see fig. 1.0).

Figure 1.0 Employment Structure of the Respondents

Greater proportions of these people are of reduced land value as most people opted Yoruba tribe, other tribes are insignificant. to sell away their land because of the A total of 46 (77%) of them have a long location of the cemetery within their history of residence of 5-10 years while 14 proximity. (23%) of them have residence history of A total of 46 (77%) of the respondents less than 5 years. who cut across the two communities of All of these indicate that the residents are Ayobo and Ewutu agreed that the location in good position to assess the two of cemetery around their areas have cemeteries around them and their brought about scanty development in and comments on any issues can be taken around the cemetery as most developers seriously. are of the view that the location have traumatic and spiritual effects on the 2.0.2 Locational Impact of the people. The entire respondents were of the Cemeteries view that the location of the cemeteries are Respondents were asked to identify of no positive effects on their environment various impacts of the cemeteries on their and may be responsible for dearth of environment. A total of 12 (20%) of the physical development around. Unusual respondents primarily found in Ayobo and traffic movement most especially on who are landlords opined that the location weekends Thursdays, Fridays, and of the cemetery around their area has Saturday was equally identified by about

8 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare (88%) of the respondents as another pointed at by over 48% of the respondents impact of location of cemeteries around see table 1.0 them. Noise generation is another factor Table 1.0 Locational Impact of the Cemeteries Impacts % of Respondents Unusual Traffic 88 Noise 72 Reduction in Land Value 38 Scanty Development 82

2.0.3 The Users of the Cemeteries the services provided by the site, while 2.0.3.1 Where are they from? those that patronize the Ayobo public Survey revealed that a total of 10 (83%) of cemetery are of the view that the charges the dead buried in Ayobo cemetery are on the high side since the cost exclude originate within Alimoso LGA where the that of excavation and services provided cemetery is situated. While the other 2 according to them are poor. (17%) come from outside the local A close observation of the relations government area of the cemetery but outfits, casket design and furnishings within Lagos metropolis. On the other between the two sites show a wide hand, 9 (30%) of those that come to bury disparity in their socio-economic status. their dead ones in Victoria garden court Those of the Victoria garden court potray come from within the LGA where the a high income status while that of Ayobo cemetery is located ,while the rest 21 reflect low income status. (70%) come from outside the LGA but from other LGA adjoining the location 2.0.5 The Managers within the metropolis. The managers of the two cemeteries also had questionnaires administered to them, 2.0.4 Cost of Acquisition of Burial Sites relating to the cemeteries. The survey Survey revealed that great disparity in reveals that the Victoria court cemetery is term of burial site acquisition exists managed by HFP Engineering, the between the two sites. In Ayobo the cost of cemetery by this arrangement is directly acquiring burial site as at the time of overseen by the general manager assisted investigation stood at N27,000 and by cemetery site manager and retinue of N10,000 for permanent and temporary supervisors. The entire site is guided by sites respectively while that of Victoria some security personnel directly Court stood at N300,000 with no option employed HFP Engineering and cleaners for temporary site. This represents over equally appointed by the company on 100% difference. The users at the Victoria contractual basis. garden court cemetery are of the view that Ayobo cemetery on the other hand is under the charges are reasonable compared to the Alimosho LGA administration

9 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare directly overseen by a park and cemetery into a particular and uniform direction. superintendent designate, assisted by the Grave sites are inaccessible, lack defined duo of chief cemetery and senior cemetery pattern of arrangement, and the entire site officer. The senior cemetery officer is is overgrown with weeds and muddy field based and assisted by cemetery during rainy season and dusty during dry keepers and other attendants. season. Burial sites are indiscriminately None of these officers was forthcoming on dug and human remains are not buried the cost of putting up the cemetery and along any line of religious beliefs. The cost per unit. The managers of Victoria average volume per vault varies court cemetery were able to show that the depending on whether it is permanent or land within which the cemetery is situated temporary. Temporary burial sites is granted for that purpose via the statutory measures slightly above 2.9m3 while certificate of occupancy issued to the permanent site measures about 3.0m3. general manager of HFP Engineering This represents a significant disparity dated 22nd of January 1997. from that of Victoria court garden The same cannot be said for the Ayobo cemetery. The site lacks regular and public cemetery, the land which house the organised security arrangements though cemetery can be described as marginal security fees are often charged. land as it directly exist under the 33KV PHCN electric cable. 2.0.7 Victoria Court and Ayobo Cemeteries: A Comparison 2.0.6 The State of the Cemeteries The two cemeteries were compared using Physical observation of the two the following variables: cemeteries revealed as follows: (a) Services such as That the Victoria garden court cemetery is i. Provision of portable water supply well laid out, fenced, with good, appealing ii. Water for gardening and aesthetic view. Existence of ample iii. Religious activities such as space for vehicular parking, existence of ablution landscape elements, segmentation of the iv. Parking Facilities burial plots along religious beliefs, v. Access and road condition provision of water, all of the burial vaults vi. Storm Water Drainage linked by well paved walkways, all of the vii. Access control, gate house and vaults are legible. Each vault measures 2.3 cemetery superintendent x 1.2 x 1.8 translating into a volume of viii. Worship Place 4.968m3 per vault. Regular organised security arrangement is available. There is (b) Land Requirement and Space also a large reception hall. Design/Layout Ayobo cemetery on the other hand is i. Vault specification characterised with haphazard arrange- ii. Provision for children ment of grave site (vault) even contrary to iii. Segmentation of vaults spiritual belief of arranging human heads

10 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare (c) Environmental Impact (e) Security i. Noise Each of these variables was comparat- ii. Traffic ively assessed between the two cemeteries iii. Air Pollution based on earlier results obtained and iv. Reduction in land value physical observation. Each of the v. Isolation of settlements around variables was attached weight index for empirical comparison and the rating was (d) Physical Characteristics of the soil done in line with some examined around cemeteries standard for some selected i. Soil excavability African countries. The rating index for ii. Stability of soil each of the variable is given in table 1.1 iii. Water table depth And results obtained are summarized in iv. Subsoil permeate tables 1.2 to 1.7. v. Backfill permeate

Table 1.1 Comparison Rating Index Variables % of Weight Services 15 Layout/Space Design 25 Environmental Impact 25 Physical Characteristics 25 Security 10 Total 100

Table 1.1 outlines the various variables provision, road provision and condition, used in comparing the two cemeteries, traffic management and reception hall. A these include; total 15 percent was attached to this 1. Services: These include utilities and variable for purpose of assessment, see infrastructure which include; water table 1.1 supply for various uses, vehicular parking

11 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare Table 1.2: Service Victoria court Ayobo Maximum Services cemetery Cemetery Obtainable Potable water supply 2 0 2 Water for gardening 1½ 0 1½ Water for Religious activities e.g 1 0 1 ablution Parking Facilities 2 0 2½ Access and road condition 2 0 2½ Storm Water Drainage 1 0 2 Access Control 2 0 2 Worship Place/Hall 1 0 1 Total 12 0 15

2. Lay- out/ space design: This variable compared include vault specificication, comparatively assessed the two segmentation and provision. A total of 25 cemeteries based on space arrangement percent weight was attached, see table 1.3. and specification. Sub- variables

Table 1.3 Land Requirements and Space Design Victoria court Maximum Variables Ayobo Cemetery cemetery Obtainable Vault Specification 7 5 10 Provision for 0 0 5 Children Vault Segmentation 10 0 10 Total 17 5 25

3. Environmental impacts: This variable settlement isolation, and rental value. compares the two cemeteries on the basis Impacts are measured on negative and of the impacts they exert on their positive terms. Negative impacts attract i m m e d i a t e e n v i r o n m e n t . M a i n lower marks while positive impacts attract environmental impacts considered higher marks. Weight index of 25 percent include; noise, traffic, air quality, was attached to this variable, see table 1.4.

12 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare Table 1.4 Environmental Impacts Victoria court Maximum Variables Ayobo Cemetery cemetery Obtainable Noise 4 4 5 Traffic 2 1 5 Air Pollution 5 3 5 Reduction in Land 3 1 5 Value Isolation of 3 1 5 Settlements Total 17 10 25

4. Physical Characteristics of soil assessed include; soil excavability, around: This variable comparatively stability, water table depth and assessed the physical condition of soils in permeability. Weight index of 25 percent and around the two cemeteries. Features was attached, see table 1.5.

Table 1.5 Physical Characteristics of the Soil around Victoria court Maximum Variables Ayobo Cemetery cemetery Obtainable Soil excavability 5 5 5 Stability of soil 3 5 5 Water table depth 3 3 5 Subsoil permeate 2 4 5 Backfill permeability 2 4 5 Total 15 21 25

5. Security: This variable compared state weight index of 10 percent, see table 1.6. of safety in the two cemeteries with a

Table 1.6 Security Victoria court Ayobo Maximum Variables Cemetery Cemetery Obtainable Security 8 2 10 Total 8 2 10

13 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare Table 1.7 Summary of Results Victoria court Ayobo Variables Maximum Obtainable (%) cemetery Cemetery Services 12 0 15 Land Requirements/Space 17 5 25 Segmentation Environmental 17 10 25 Impacts Physical Characteristics of 15 21 25 Soli Security 8 2 10 G. Total 69 38 100

Table 1.7 shows that Victoria Court 3.0 Conclusion and Recommendations cemetery has a total score 69 percent The paper concludes that using the while Ayobo cemetery has a total weight parameters above, private cemeteries in score of 38 percent. The assessment Lagos metropolis in term of spatial shows that significant difference exist arrangement and management exhibit between the two cemeteries. The Victoria better performance above that of public court (privately owned cemetery) shows a cemeteries. high degree of compliance to standards for Since the provision of cemeteries in a space for the dead cemetery while Ayobo secular state like Lagos is a sensitive cemetery (publicly owned cemetery) matter and is influenced by a wide range significantly varies away from required of issues ranging from environmental, standard for space for the dead. Costs political, religious, tradition, socio- however was not a factor considered by economic, personal preference of this paper notwhistanding, those that individuals to affordability. It is the patronize Victoria garden court cemetery opinion of this paper that public claimed that the site is affordable to them. cemeteries should be encouraged because It must however be noted that the of affordability question. Corporate performance of the private cemetery may organisation support should be sought for not be far from the cost attached to it while a public-private partnership approach that of public cemeteries is left for the towards provision of space for the dead. It municipal to handle, this may be is therefore recommended that design responsible for its poor state lower cost requirement for cemeteries should be ,yet its users still opined that cost of spelt out and all cemeteries public or acquisition in relative term is high. private should comply with this minimum requirement. Cemeteries needs not to be

14 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 5 - 15 Okesoto & Aledare provided for on a regional basis, it could IAH Sustainable Solution be provided for as a district good ( Conference, Melbourne 24-26 combination of 4-8 neighborhoods) November. where appropriate cemetery requirement Lateef, L.O. (1998) Planning and of each of these districts should be management of public cemeteries projected and appropriate land space be in Lagos State. designated for such purpose. An unpublished Higher National The re-use of graves, in the opinion of this Diploma in Urban and Regional paper is not accepted and should be Planning submitted to the discouraged. Government, planners, Department of Urban and investors, corporate organisations, Regional Planning, Yaba College religious organisations need to pay of Technology, Nigeria. adequate attention to provision of Oladejo, A. O. (2002) Management of cemeteries as there exist monumental public cemetery. An unpublished danger for human remains that are not Higher National Diploma in properly and rightly disposed. Urban and Regional Planning submitted to the Department of REFERENCES Urban and Regional Planning, Ajala , O. (1993) Land for the dead in the Yaba College of Technology, city. Journal on Planned Nigeria. Environment Vol. XIV No. Saidi, O. A. (2009) Planning for the dead: 2 pp. 23-46. a comparative analysis of Badejo, H. O. (1999) Planning for the management practice of public dead: land use implications and and private cemeteries. Case the environmental conseque- study of Atan and Victoria Court nces in Lagos metropolitan area. cemeteries. An unpublished An unpublished dissertation of Higher National Diploma in Master of Urban and Regional Urban and Regional Planning Planning, submitted to the Centre submitted to the Department of of Urban and Regional Planning, Urban and Regional Planning, University of Ibadan, Nigeria. Yaba College of Technology, Dent, B. B. (1998) “Cemeteries a special Nigeria. kind of landfill'' Proceedings of

15 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke EVALUATION OF PROCUREMENT SYSTEMS PERFORMANCE FOR MECHANICAL AND ELECTRICAL SERVICES TOWARDS EFFECTIVE DELIVERY OF BUILDING PRODUCTS

FATOKUN A. O. 1,

FAPOHUNDA, J. A. 2 1 & 2 DEPARTMENT OF BUILDING TECHNOLOGY, SCHOOL OF ENVIRONMENTAL STUDIES, YABA COLLEGE OF TECHNOLOGY, YABA, LAGOS.

ALLI, O. R., AND IBIRONKE, O. T. DEPARTMENT OF QUANTITY SURVEYING, SCHOOL OF ENVIRONMENTAL TECHNOLOGY, FEDERAL UNIVERSITY OF TECHNOLOGY, AKURE, ONDO STATE

ABSTRACT This study critically evaluates different procurement mechanisms and approaches practised in the Nigeria construction industry, and ascertained the appropriateness of each method towards building services installation and project delivery in the industry. Views of scholars and authors on procurement system were reviewed and discussed summarizing the procurement methods. Questionnaires were administered to stakeholders in the industry within sixteen (16) local government areas in Lagos state involved in the procurements of mechanical and electrical services for building projects. The data collected from the questionnaires were analyzed using the statistical package for social sciences (SPSS) software, and frequency and percentiles as statistical tools. From the analysis, it was deduced that labour only procurement method enhance the achievement of clients objectives of cost effectiveness, project management mostly ensures the achievement of clients objective of specified quality standard while design and install mostly enhance the clients objective of quick completion of mechanical and electrical services within required time among other things. The paper recommends, among others, that a clear understanding of project objectives, identifying the project constraints and clear understanding of the roles of the contracting parties are essential for procurement of building services. If the issues identified in this research study are managed properly, a project will significantly achieve its time, cost and quality objectives, in addition to client satisfaction.

Key Words: Building services installation, client satisfaction, construction industry, procurement, project delivery, project management..

16 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke 1.0 INTRODUCTION and disadvantages. The complex nature of Building services are an important aspect these specialist area in building of building; hence the design and production: the design of the services, installation require a critical examination. technical know-how required, foreign However, these services, (mechanical and materials content, high capital outlay, electrical services) cannot be designed level of risk involve, contract documen- and installed independently, but have to be tation complexities and seasoned integrated with other building elements. administration skill and expertise In addition, the procurement requires required, make it a requisite to adopt a adequate coordination towards effective suitable procurement system that will building products delivery. Lam et-al., facilitate cost effectiveness, ensure value (1996) states the significance of intimate for money and timely building products working relationship between all delivery, in addition to efficient and designers and contractors. To these effective project production. In respect, authors, it is essential to produce a this study critically evaluates different building product in which all the services procurement mechanisms and approaches and structural elements are fully practiced in the construction industry, and integrated, planned, and organised. These ascertain the appro-priateness of each indicate that adequate integration of method towards building services mechanical and electrical services are installation and project delivery in Nigeria paramount towards successful building building industry. project delivery. Consequently, inappropriate selection of 2.0 LITERATURE REVIEW procurement system often cause delay in This section presents the views of scholars building services installation, cost and authors on procurement systems. overrun and claims, and a significant Among the issues discussed in this section maintenance difficulty in aftermath. Thus, are selections of an appropriate to ensure adequate design and installation procurement method of building services of building services, it is essential that the in building projects, and procurement design and installation team, work types used for building projects. This mutually and in alignment to the section summaries the application, procurement approach chosen. advantages and disadvantages of each method, and presents the relevancies of Ogunsanmi (2000), state different each method towards achieving client's procurement methods usually adopted in objectives and satisfaction. the Nigerian construction industry; these include the traditional method, design and 2.1 PROCUREMENT TYPES USED build, management procurement, direct FOR BUILDING PROJECTS labour and labour only procurement Previous research by McMillan (1996) methods. Noteworthy, a typical Gunning and McDermott (1997) procurement system has both advantages identifies the following methods of

17 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke procurement as those which are variants-pure design and build, Design commonly used (in descending order of and manage, Turnkey, Package deal or preference): All-in service contracts, contractors 2.1.1 Traditional procurement method; design portion supplement, Develop and 2.1.2 Design and build procurement construct guaranteed, maximum price are method; use. However, the limit of discussion in 2.1.3 Management contracting this study is the Nigerian construction procurement method; industry. 2.1.4 Construction management According to El-Rufai (1997) Ogunsanmi procurement method; (1998) procurement methods that can be 2.1.5 Design and manage procurement identified in the Nigerian construction method. industry include the following; a) The traditional method Lam (2009) also indicates that the main b) The design and build method. types of procurements strategy used for c) Management procurement most hospital project in Hong Kong are: system. a) traditional procurement method; d) Direct labour procurement b) construction management; system. c) Design and build. e) Labour only procurement system

Thus, Akinpelu (2009) finding is based on All these procurement systems identified evidences around the world, and states the in the Nigerian construction industry are various procurement mechanisms with therefore reviewed to ascertain their diverse range of approaches to project relevance to mechanical and electrical delivery. The modern international services in building projects. Procurement procurement strategies for international according to Ogunsanmi (1998) starts projects are; Build-Operate-Transfer, from the moment a client perceives the (BOT) or Concession Constructs; need for a construction project up to Variants-Builds-Own-Operate, (BOO); completion whereas tendering and Build-Operate-Transfer, (BOT); Build- contract award are components of the Own-Operate-Transfer, (BOOT); Design- procurements functions. Build-Finance-Operate-Transfer, (DBFOT); Build-Operate-Lease, (BOL); 2.3.1 Traditional procurement method Design-Build-Operate-Maintain, of building services (DBOM); Build-Own-Deliver, (BOD); In this method, the client enters into Build-Own-Operate-Subsidize-transfer, separate contracts with each member of (BOOST); Build-Rent-Transfer, (BRT); the design team (Architect, Quantity Build-Transfer-Operate, (BTO); Surveyor, and other consultants) and the Maintain-Transfer-Operate, (MTO); and contractor. In other words, the design and Build-Claim-Deliver-and-Depart installation functions are spilt. The design (BCDD). Also, Design and Build with team is paid fees for service rendered

18 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke while the contractor is paid for the installations. installation aspect on the basis of the type of contract existing between him and 2.3.2 Design and install method of client. Lam (2009) asserts that in this type building services procurement of procurement system, design by Lam et al (1996) affirms that those factors consultants is complete before contractors contributing to the decline in the tender for, then carry out installation. traditional forms of contracts are creating constant demand on the construction Based on research findings of many process to improve the standard and professionals, Lam (2009) observed that quality of service provided for the the traditional approach does not easily industry's clients, not only in terms of foster a co-operative and coordinated time, cost and performance, but also in the project organization, and it is therefore administration and procurement. All these difficult to manage the building services needs have created the desire to bring the design and installation with the building whole construction process under a single and structural elements. He further asserts point of control, directly responsible to the that the increasing complexity of building client. The construction industry have services design and installation in reacted not only with improved building, the need to reduce design and installation techniques and materials for installation periods, the transfer of risks building services but also with new and management problems to the dimensions to building services contractors and the need to achieve better procurement in that it is structured, project performance have all brought primarily in the interests of the client, pressure to find better ways and towards giving him/her an improved deal alternative procurement paths to achieve and with far greater emphasis upon the building services project. client obtaining better value for money. Ogunsanmi (1998) states that the Design and install in the context of traditional (or conventional) procurement procurement of mechanical and electrical system has been used for many years in services in building project is not a single Nigeria. The system is fully understood by system but a generic term for any method all parties of the building team though of procurement whereby the contractor very popular and well established it has its has overriding design responsibility, merits and demerits. which may be total or in part.

The design team leader and other 2.1.3 Design and Construct consultants according to Ayeni (1998) are In this method, the contractor is given the clients' professional team responsible performance specifications and drawings for design and supervision of construc- which although fully prescribes and tion. The contractor is responsible for predetermine the design. It requires construction while the mechanical and further working drawings to illustrate electrical engineers oversees the services construction details. Examples are large

19 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke industrial complexes, some civil contractor also provides additional engineering projects, power plants, etc. services and on-site facilities, like the contractor takes the responsibility of equipment, plants and accommodation. producing these drawings, obtaining all Management contracting system operates necessary approvals and to carry out the like the traditional system except for the construction. It should be noted that the conceptual design stage where only the architect or design team leader will still outline design and cost plans are prepared have to cross check and approve the for selection of the management contractor's working drawings which will contractor. The contract documents normally be produced ahead of between the client and the management construction work by the contractor. The contractors is made up of the production quantity surveyors role as the cost drawings, total contract value, the controller will subsist like in the management responsibilities and the traditional method. facilities to be provided by the contractor Ogunsanmi and Bamisile (1997) further 2.4.3 Management procurement asserted that the underlying philosophy of methods this approach is to allow the contractor to These methods of project procurement is become part of the client's team and for the developed in response to demands for management function to be carried out, better management on exceptionally large therefore, in partnership with the and complex construction project, (Frank members of the design team to the overall and Ronald 1997). The two main types in benefit of the client. The major difference practice are: between the management contracting i. Management contracting system and the design and install is that a ii. Project management contractor does not directly carry out the roles of the designers or the contractor; the 2.4.3.1 Management contracting contractor is concerned solely with the procurement method overall management of the project and Management contracting method provision of site facilities. involves a management contractor who is employed by the client to organize, 2.4.3.2 Project Management manage and supervise the execution of a procurement method project on his behalf. Both Ogunsanmi This is a system whereby a project and Bamisile (1997) and Ayeni (1998) manager is appointed by the client at acknowledged that the management inception. The project manager would contractor does not undertake any manage the design and installation physical installation on site, but arranges function of the project to completion. the entire project into work packages. According to Ogunsanmi and Bamisile Such work packages are sublet to (1997), the method is fast gaining subcontractors whom he manages, co- acceptance in Nigerian construction ordinates and supervise. The management industry. Two major type of project

20 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke management methods are in use in agent in managing the contractors Nigeria, the executive and non executive. and subcontractors. In the executive project management system according to Ogunsanmi and 2.4.4 Direct labour method of Bamisile (1997), the project management building services procurement practice manages and co-ordinates all the This is a system where the client uses own activities of the design, cost control and in house; resources for the production of appointment of other team members. The the design and the actual installation of project manager acts exclusively on building services. The client may be an behalf of the client on all matters relating individual who is in the building to the project. In the case of the non profession or a private or public executive type, the project manager co- organization which has a well established ordinates the design and installation projects execution outfits e.g. (Institutions matters alongside other professionals of higher learning, Federal Ministry of while the clients' takes greater control of Works and Housing, Central Bank of the management of the project. In this Nigeria. Federal Housing Authority, method, the architect need not be the Local Government e.t.c) in some cases, design team leader as in the case of the in house resources are used to produce traditional system since team leadership the designs while a contractor is engaged depends on the nature of the project and for the installation of building services. who among the consultants is nearer the Some other client may choose to have the source of the job. design and installation information prepared by practicing consultants while 2.4.3.3 Distinction between the installation is handled in house. management contracting and project The direct labour system is widely used management. these days in the Nigerian construction The essential difference between project industry for projects that are straight management practices and management forward and with short duration. contractors are; a. Management contractors are 2.4.5 Labour only procurement usually traditional building method contractors while project Labour only contract, as a procurement management practices are method, is one of the several terms which consultants, managed and are widely used to describe work structured like other professional arrangement, which do not fall within the practices. traditional or definition of employment. b. Management contractors enter in Labour Only contract means work direct subcontract agreement with performed for a natural or legal person subcontractors. Project managers referred to as a user enterprise” by a submit proposals to their clients person (referred to as a “contract and subsequently act as the client's worker”), pursuant to a contractual

21 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke arrangement other than a contract of 3.0 RESEARCH employment with the user enterprise, METHODOLOGY, DATA ANALYSIS under actual conditions of dependency on AND DISCUSSION OF FINDINGS or subordination to the user enterprise, METHODOLOGY, DATA ANALYSIS where these conditions are similar to those A N D D I S C U S S I O N O F that characterize, an employment FINDINGS relationship under national law and practice. 3.1 Preamble The client in labour only procurement This section presents the research method takes upon himself or herself the methodology, data analyses and preparation and provision of all materials discussion of findings. The under listed required for installation of building information are considered necessary and services in a building project and then call included in the methodology of the upon the electrical or mechanical research; engineering contractor/specialists to execute the installation on the project. The 3.1 Research design electrical and mechanical contractor is 3.2 Population of the study sometimes allowed to purchase 3.3 Data collection instrument consumables. At time, the client provides 3.4 Sample technique and procedure the plants and tools required for the work for data collection or may leave it for the contractor. Adenuga, and Akinsola (2007), asserts 3.2 Research Design that clients in Nigeria readily, embrace Questionnaires were administered to the labour only mode of procurement because stakeholders in the industry which it affords them the opportunity to control comprise of construction professionals quality of materials used. Moreover, and other active players in the clients deemed it fit to achieve savings on procurements of mechanical and installation cost of building services electrical services for building projects. through trade discounts obtained from bulk purchasing. Taking the materials 3.3 Population of the Study components out also demystifies unit rate The population of the study consist of pricing as the client is able to appreciate sixteen local governments in Lagos state. what he is paying the contractor better. This was on the premise that clients and Summarily, this method of procurement is organisations involved in the procurement prominent among private individuals who of M&E services in building projects initiate building services project in abound in the state and it was understood Nigeria construction industry. Since in that the result of the data collected could most circumstances, the private be generalised for construction industry individual develops and often adopts the application. approach of do-it-yourself strategy.

22 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke 3.4 Data Collection Instrument e l e c t r i c a l s e r v i c e s e n g i n e e r s ' , Data was collected using choice professionals, as well as, public and structured questionnaire consisting of one private clients/individuals known as section which deals with the assessment of initiators of electrical and mechanical the performance of each of the services in building projects in Lagos procurement system for mechanical and state. electrical services procured by clients in A total of 70 questionnaires were building projects. administered and 53 were received. This The surveyed respondents were asked to results in a response rate of 75.71%. choose an appropriate rating on the scale against each identified method that 4.0 DATA ANALYSIS AND reflected their opinions on the significant DISCUSSION OF FINDINGS level. The questionnaire was carefully examined for the purpose of extracting 3.5 Sample Technique and relevant information required to achieve Procedure for Data Collection the research objectives. The data and A preliminary field survey was conducted results were presented using frequency covering Federal and State parastatals, table to establish the percentage construction companies, private occurrence of each of the variables. consultancy firm of mechanical and

4.1 Data Analysis on the Performance of Procurement Systems for M&E Services The data collected from the questionnaire are analysed as follows: Table 4.1: Cost effectiveness objective Frequency Percent Traditional method 7 13.2 Design and install method 11 20.8 Management contracting method 8 15.1 Project management method 10 18.9 Direct labour method 4 7.5 Labour only method 12 22.6 Modern method 1 1.9 Total 53 100.0

Table 4.1 above shows the procurement say traditional method most ensure the methods which mostly ensure the full cost effectiveness objectives of clients achievement of clients objectives of cost while 20.8% agree that design and install effectiveness for M&E services in method ensures the cost effectiveness building project 13.2% of the respondents objective 15.1% and 18.9% says

23 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke management contracting and project labour, labour only and modern method of management respectively mostly ensure procurement respectively mostly ensure clients objectives of cost effectiveness the full achievement of clients cost while 7.5%, 22.6% and 1.9% says direct effectiveness objectives.

Table 4.2: Specified quality standard objective

Procurement Method Frequency Percent Traditional method 10 18.9 Design and install method 15 28.3 Management contracting method 9 17.0

Project management method 16 30.2 Labour only method 2 3.8 Modern method 1 1.9 Total 53 100.0

Table 4.2 above shows the procurement achievement objectives, 17% and 30.2% methods and their relative degree of agree that management contracting achievement of specified quality standard method and project management of clients, 18.9% and 28.3% respondents respectively mostly ensure it while 3.8% says traditional method and design and and 1.9% respondents agree with labour install methods mostly ensure the quality only. Table 4.3: Required time or duration objective

Frequency Percent Traditional method 7 13.2 Design and install method 15 28.3 Management contracting method 6 11.3 Project management method 13 24.5 Direct labour method 6 11.3 Labour only method 6 11.3 Total 53 100.0

24 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke Table 4.3 indicate that 13.2% and 28.3% contracting and project management most of respondents say traditional and design ensure on time objectives while 11.3% and install method respectively mostly and 11.3% of labour only and modern ensure the full achievement of clients method mostly ensure time objectives of objectives of specified quality standard, clients. 11.3% and 24.5% agree that management

Table 4.4: Appropriateness of situation Frequency Percent Yes 51 96.2 No 2 3.8 Total 53 100.0

Table 4.4 shows that 96.2% of the while non disagree with the statement as respondents agree that the performance of shown in table 4.4 and figure 4.4 above the procurement methods is dependent on respectively. the appropriateness of situation it is used

Table 4.5: Proper involvements of required professional Professional Involvement Frequency Percent Yes 51 96.2 No 2 3.8 Total 53 100.0

Table 4.5 shows that 51% of respondents performance of procurement method agree that proper involvement of required while 2% do not agree. professional has its impacts on the

Table 4.6: Traditional procurement method performance

Performance Frequency Percent Low 21 39.6 Medium 19 35.8 High 13 24.5 Total 53 100.0

25 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke Table 4.6 shows that 39.6% and 35.8% and medium while 24.5% agree that its respectively says that traditional method individual performance is high with a individual performance when adopted for percentage agreement of 24.5%. M and E services in building project is low

Table 4.7: Design & Install procurement method performance

Performance Frequency Percent Low 5 9.4 Medium 25 47.2 High 22 41.5 Total 52 98.1 Missing 1 1.9 Total 53 100.0

Table 4.7 show that 9.4% respondents performance is medium while 41.5% agree that the individual performance of respond by saying the performance of design and install is low, 47.2% agree its design and build is high.

Table 4.8: Management contracting procurement method performance

Frequency Percent Low 9 17.0 Medium 30 56.6 High 13 24.5 Total 52 98.1 Missing 1 1.9 Total 53 100.0

Table 4.8 shows that 17%, 56.6% and in building is low, medium and high 24.5% respondents respectively agree that respectively on the percentages management contracting methods previously mentioned. individual performance for M&E services

26 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke Table 4.9: Project management procurement method performance

Frequency Percent Low 5 9.4 Medium 23 43.4 High 23 43.4 Total 51 96.2 Missing 2 3.8 Total 53 100.0

Table 4.9 shows that 9.4% respondents 43.4% agree that its performance for agree that projects management M&E services is medium and high Individual performance is low while respectively.

Table 4.10: Direct labour method performance

Frequency Percent Low 13 24.5 Medium 25 47.2 High 14 26.4 Total 52 98.1 Missing 1 1.9 Total 53 100.0

Table 4.10 shows above agree that 24.5% 26.4% respondents indicate that its and 47.2% of respondents indicate that individual performance is high when used direct labour individual performance is for M&E services in building projects low and medium respectively while Table 4.11: Labour only procurement method performance

Frequency Percent Low 16 30.2 Medium 27 50.9 High 6 11.3 Total 49 92.5 Missing 4 7.5 Total 53 100.0

27 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke From table 4.11, it could be deduced that management strategy will strongly 30.2% represents are in support that influence the choice of a procurement labour only method is low in terms of method. degree of individual performance while As indicated in Office of Building and 50.9% and 11.3% of respondents agree Development, (1997), Construction that its individual performance is medium participants need to be aware that a variety and high respectively when used for M&E of procurement methods are available for services in building projects. acquiring a building facility. From the analysis, it can be deduced that labour 4.2 SUMMARY OF FINDINGS only, project management and design and From the analysis, it can be deduced that install procurement method ensure the labour only, project management and achievement of clients objectives of cost design and install procurement method effectiveness, specified quality standard mostly ensure the full achievement of and completion of M&E services within clients objectives of cost effectiveness, required time and duration respectively. specified quality standard and completion Although, Construction Management of M&E services within required time and method is a fast track procurement method duration respectively. However, it can that enables work to commence on the also be rightly said that the performance of early stages of construction, while the each of the procurement method is design and documentation of later trade dependent on the appropriateness of the packages are being finalised; a client situation it is used and the involvement of engages a construction manager to the required professional at each stage of organise, and supervise trade packages. the procurement process has its impacts Construction management is useful in on the performance of the procurement volatile economic and industrial climates method. Finally ,the analysis revealed that by helping to reduce the time and cost of project management procurement method project delivery. Clients can modify was rated as the most performing specifications of later trade packages procurement method as far as M&E according to changing project services in building project is concerned. requirements. However, the early Design &install method and management involvement of the contractor in a Design contracting followed in the rating and Construct project should help to respectively while traditional procure- improve the constructability of the ment method was the least performing facility. Hence, in all methods of building procurement method in use for M&E procurement, it is the client's responsi- service in building projects. bility to define their requirements. The project clients should be aware that 5.0 TOPICAL ISSUES problems often arise as a result of poor Choosing the right procurement method is briefing, poor documentation, poor co- vital to the success of a building project. ordination, client changes and difficult Noteworthy, the construction parties risk site conditions.

28 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke The purchase of everyday items is method which have impact on the success relatively simple and usually involves of a building project. Among these factors some form of evaluation, selection and are a clear understanding of project payment as stated in the Office of objectives, identifying the project Building and Development, (1997). constraints and clear understanding of the However, with the acquisition of a roles of the contracting parties. building or construction facility there are significant factors associated with the REFERENCES choice of procurement method which will Adenuga, O. and Akinsola, E. (2007) impact on the success of a building Management of labour only project. That is: contracts in the N igerian a) having a clear understanding of construction industry: basis of project objectives and constraints award and execution. The b) defining the roles of the various Professional Builder vol pp. 53-66. contracting parties Akinpelu, A. (2009) A step by step approach c) considering the fair allocation of to the delivery of international risks and obligations between the projects: conditions of contract/ contracting parties to the contract legal framework, procurement Poor management of these factors will tendering and evaluation. Proceedings of a two days seminar significantly give rise to: claims and on Procurement of International disputes; additional costs; delays in Projects Organized by NIQS Lagos completion and a failure to achieve project State Chapter. 20th -21st October. objectives. However, if these issues are Alabi, F. O (2000) Contract procurement managed properly, a project will method in the construction of significantly achieve its time, cost and building. The Construction quality objectives, in addition, client Economist 18(3), pp. 6-10 . satisfaction. Albert P. C Chan, and Ann Yu, T. W. (1999) Enhanced design build-an 6.0 CONCLUSION AND innovative system to procure a RECOMMENDATIONS hospital project. Profitable As Building services is an important Partnering in Construction aspect of building, then choosing the right Procurement pp. 410-411. procurement method is vital to the success Chan, A. P. C (1997) Measuring success for of a building project; thus, require a a construction project. The critical examination. Noteworthy, the Australian Institute of Quantity construction parties risk management Surveyors- Referred Journal, strategy will strongly influence the choice Volume I Issue 2, 1997, pp. 55-59. of a procurement method. However, in El-Rufai, N.A. (1997) Cost control models acquisition of a building or construction for roads and infrastructural facility there are significant factors d e v e l o p m e n t . A S e m i n a r associated with the choice of procurement Presentation at the NIQS Seminars

29 A Publication of the School of Environmental Studies, Yaba College of Technology Fatokun,Alli The Yaba Journal of Environmental Research (June 2013) (2), (1) 16 - 30 Faphunda &Ibironke on Procurement Financing and &Tuottavuus-sarja nro47. M a n a g e m e n t o f R o a d s & Ogunsanmi, O. E. and Bamisile, A. (1997) Infrastructure, May 1997, pp. 7. Factors affecting the selection of Gunning, J. G and McDermott, M. A (1997) projects in procurements methods. Developments in design and build Builder Magazine vol. 7 No.2 contractor practice in Northern pp.11. Ireland. Proceedings of the CIB Ogunsanmi, O. E. (2000) Construction W92 Symposium, CIB Publication procurement performance in No 203, Montreal, pp. 213-222. Nigeria: challenges and constraints. Kwakye, A.A.(1990) Fast track construc- A Conference Paper Presented at tion, CIOB occasional paper No 46 the first International Conference Ascot UK. on Globalization and capacity Lam, K. (2009) Management of building building in the Construction services procurement for highly Industry of developing Economies, serviced health care facilities Department of Building University http//.www.goggle.com.Assessed of Lagos, 1st -5th Dec. December 12th, 2009. Ogunsanmi, O. E. (1998) Factors affecting Lam, K.C. Gibb, A.G.F. and Sher, W.D. the selection of projects procure- (1996) Impact of building ment method. Builders Magazine, procurement methods on co- Jan/Feb.1998. ordination of building services, Office of Building and Development, ARCON96, U.K. pp.150-159. (1997) Building procurement: McMullan, J. (1996) The procurement of choosing the best option for your building services industry in next Project, Department of Northern Ireland. Infrastructure Building Services Unpublished B.Eng (Hons) Agency, Melbourne, Austrialia Dissertation, University of Uster. Pernu, P. (1998) Talonrakennuksen honk- Nykanen, V (1997) Toteutusmuodot emuotojen kuvaus, TKK. rakenushankkeissa. RTK/Kehitys

30 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo

A COMPARATIVE STUDY OF THE PERFORMANCE OF TRADITIONAL AND DESIGN & BUILD PROCUREMENT METHODS IN LAGOS STATE.

MAFIMIDIWO B. A. DEPARTMENT OF QUANTITY SURVEYING, SCHOOL OF ENVIRONMENTAL STUDIES, YABA COLLEGE OF TECHNOLOGY, YABA, LAGOS, NIGERIA

ABSTRACT In recent years, there has been a remarkable increase in the use of design and build procurement method in Nigeria. This trend is based on the presumption that it offers better prospect for higher performance on projects relative to the traditional procurement method. This research investigates the performance of these two procurement methods in order to determine if effort at embracing design and build procurement method has translated into any significant improvement in project performance. Data were collected, through the administration of questionnaire, from 57 randomly selected respondents on the performances of these methods. Statistical analyses were carried out using descriptive analysis and mean response analysis. A general consensus exists among clients, consultants, contractors and other stakeholders of the building industry on the criteria considered as appropriate measures of performance for a project for the procurement method adopted for the project. The results reveal no significant difference in the performance of the two procurement methods in respect of all variables relating to quality. This study discussed the relative performance of the two procurement methods evaluated. More research effort is recommended to raise the general level of awareness on project performance among all stakeholders in the building and construction industry.

Key Words: Design and Build, Construction Projects, Lagos State and Traditional Procurement.

INTRODUCTION challenge to produce client driven timely, The overall goal of project management is cost effective and high quality outcomes. to meet client's requirements and ensure These various procurement methods in completion on time, within cost limit and use in the construction industry are to the required standard of quality. The differentiated by their management procurement method adopted for a project structure, design management, liability is increasingly being seen as a key element and risk sharing, tendering procedures and in achieving this vital goal. Clients are determination of the contract price. raising their expectations and Though the traditional form of construction industry practitioners have procurement is still the most widely used,

31 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo other forms are growing in popularity and Research Studies and Documentation acceptance. The design and build method (CIBW 1992) as the framework within is the most prominent of such alternative which construction is brought about, systems. According to Dickerson (2002), acquired and obtained. the growing interest in design-build But Omotosho (1999) sees it more or less projects has taken shape over the last few as a concept rather than an absolute way of years. Banik (2001) asserted that design- realizing projects. It is one of the several build is the fastest growing construction functions of the project delivery chain project delivery system in the United which should not be confused with States. tendering procedures or types of contract. Wi t h a l l t h e s e f o u r - r e a c h i n g The distinguishing features of any developments, there has however been no procurement system would therefore significant interest shown in procurement. include: Ogunsanmi and Iyagba (2001) stated that ? The design and construction phase whether the projects that were ? Parties to execute the project commissioned by government and other ? Contractual arrangement for the various clients had performed or not, execution of the project. nobody bothers provided the building has been completed and delivered to the PROCUREMENT AS A CENTRAL owner. ISSUE IN THE CONSTRUCTION INDUSTRY CONCEPT OF PROCUREMENT The contribution of the construction Procurement has been defined by various industry to the socio-economic researchers in ways that clearly development of any nation has been distinguishes it from contract system. In recognized by industry watchers. the context of the Code of Practice for Windapo and Iyagba (2001), regard the project management, procurement is construction industry as an important defined as the process by which the sector of every economy, playing an necessary contributions of the various essential role in socio-economic participants in the design and construction development. Odusanmi (2000) contends phases of the project are secured (CIB, that construction output form a significant 1996). In the same vein, Bamisile (2004) share of capital formation in developing stated that the procurement method countries. chosen for a project will determine the The contribution of the construction relationship, obligation and the line of industry to national economic growth communication between the client, necessitates improved efficiency in the consultants and the contractors. industry by means of cost effectiveness On the other hand, Ogunsanmi (2003) and timeliness and would certainly adopts the working definition of contribute to cost saving for the industry p r o c u r e m e n t a s d e v e l o p e d b y as a whole (Aibinu and Jagboro, 2002). International Council of Building Table 1 is an adaptation of the comparison.

32 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo

Egan report (1998) recognises that the more exposed and demanding and are industry as a whole is underachieving. It beginning to query hitherto held views has low profitability and invests too little and concepts and opting for ways that can in research, development and training. give them maximum satisfaction. Nubi Also, too many clients are dissatisfied (2000) contends that the solution to the with its overall performance. retardation in the industry is embracing But clients of the industry as opined by modern procurement methods. Harris and McCaffer (2002) are becoming

Table 1 Modern Motor Modern Building Wants Car Domestic Commercial Industrial Value for money ***** ***** ***** ***** Pleasing to look at ***** ***** ***** ***** Largely free from faults ***** ***** ***** ***** Timely delivery ***** ***** ***** ***** Fit for purpose ***** ***** ***** ***** Guarantee ***** ***** ***** ***** Reasonable running cost ***** ***** ***** ***** Durability ***** ***** ***** ***** Customer delight ***** ***** ***** ***** S ource: Ashworth (2001)

From the foregoing therefore, it would commonly recognized tasks are 'design' appear that procurement is now seen as and 'construction' (Bamisile 2004). Some b e i n g e x t r e m e l y i m p o r t a n t i n of the essential differences as highlighted transforming the construction industry. It by Bamisile (2004) include: is no wonder then, as observed by i. Tradition tends to separate the Ashworth (2001), that changes in the design and production processes methods of construction procurement while manufacturing adopts have been one of the most fundamental integrated process. driving forces within the construction ii. Almost all building projects are industry during the past decades. unique with the production Ogunsanmi (2003) sees construction process representing a single procurement process as the totality of all production run. processes involved right from conception iii. Inspection and supervision of to use of the facility. When procuring a building construction work is less new building, the two most easily and systematic than in manufacturing

33 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo

where inspection procedures can Nubi (2002) highlighted different be clearly controlled. procurement approaches from Austen and iv. Considerable mobility of design Neal which in ascending order of the and production teams precludes degree of integration between design and development of long-term construction are as follows: production teams and each a) Traditional approach construction site is clearly b) Accelerated traditional approach controlled. c) Management contracting d) Construction management v. Feedback from the building in use to the designers is remote from the e) Project management actual time of design and f) Design and build/Turnkey production and often precludes the g) Build-Operate-Transfer u s e f u l a n a l y s i s o f t h e Mojekwu (1998); Ogunsanmi and defectiveness of design and Bamisile (1997) and Omotosho (1999) construction. identified five broad classes of procurement methods that is in use in PROCUREMENT METHOD IN USE Nigeria. They are: There are a number of procurement ? Traditional method methods in use in the construction ? Design and build industry. Franks (1990) identified the following methods: ? Management contracting a) Traditional system ? Labour only b) Management contacting/ ? Direct labour system. Construction management The differences in characteristics of the c) Package deal/Design and build various procurement systems are noted by d) Project manager/Client's Rowlinson (1999) are principally in the representative areas of how liability for design and e) The British property federation procurement is assigned, how the system. tenderers of each method is selected, the contract pricing system used and who Ogunsanmi (1997) declares that a client assumes responsibility for project design. can use any of the seven procurement systems suitable to its organisation to TRADITIONAL PROCUREMENT procure building works. These include the METHOD traditional procurement system, three Under this method, the responsibilities for types of design and build- design and the design and construction aspects of the construct, design and package deal or project are that of separate organisations turnkey. Also listed are the management (Koleoso, 2001). Accordingly, the client procurement systems of management enters into separate contracts with each contracting and project management. member of the design team (i.e. the

34 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo architect, quantity surveyor and other highlighted by Turner (1997) are as consultants for design and cost control follow: functions and later selects a contractor to Direct: in which no competition is execute the project (Ogunsanmi, 2003). obtained in tenders. Only one tender is Ogunsanmi (1997) summarizes the make- obtained even though some appraisal of up of the traditional procurement process possible competitors may be made before as a process whereby the architect tendering. develops the client's brief and in Develop and Construct: Consultants conjunction with the other consultants, the design the building requirement and stage design and other tender documents are often called a 'scope design' and then produced. Based on the available obtains competitive contractors who production information and tender develop and complete the design and then documents, tenders are invited from main construct the building. contractors. Pre-selection of the Package Deal, which is often, used where contractors is done and hence final the contractors competing will use a selection is also achieved by competition significant part of their own or another's or negotiation at the construction stage, proprietary building system or they will be the architect often acts as the leader of the constructing variations of repetitive client's representative to administer the theme.. contract and coordinate the project. Also, Turnkey: the 'key' referred to its perhaps the quantity surveyor provides the to symbolise that the client's only apparent financial control system for the project. required action, in addition to paying money by means of a lease or outright DESIGN AND BUILD purchase, is to “turn the key” and take up PROCUREMENT METHOD occupation. (Ashworth, 2001; Songer and Molenaar, Private Finance Initiative (PFI): 1997) define design and build is a arguably seen as an example of turnkey on procurement arrangement where one a grand scale. single entity or consortium is contracting Build-Own-Transfer (BOOT): the responsible to the client for both the BOOT organisation is given a license to design and construction of a project. This operate the facility for a given period according to Ogunsanmi (1997), allows during which period they can make one point accountability to the client and charges by way of a toll, or a rent or a fee for the contractor to have full control over for the use of the facility. When their term major parts of the work. With a design and of operation comes to an end, ownership build arrangement, instead of the client of the facility is then transferred to the approaching an architect for separate commissioning organisation. design services, he chooses to go directly to a contractor for an all-in design and construction commission (Igwe, 2002). The main variants of the system as

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CHOICE AND USAGE OF THE completion to time, cost and quality seems SYSTEM to be elusive to clients, consultants and contractors. P R O C U R E M E N T M E T H O D Dada (2003) in seeking to determine the SELECTION awareness of the various procurement Public awareness of procurement strategies avers that the Nigerian performance generally and in Nigeria construction industry participants have particularly is seen as not commensurate knowledge of some methods that integrate with the considerable research effort that organisationally the design and have been devoted to finding the construction processes. Hence, relationships between procurement and Ogunsanmi (2003) recommends that the project performance. Ogunsanmi (2001) culture of imbibing procurement opined that, it is surprising though that performance in projects should be quite a lot of projects had been procured in practiced by all professionals, consultants this country but none of the key players in and shareholders in the construction housing procurement has shown industry as to improve on all coming significant interest in procurement project and also manage better future performance, according to him, projects in the country.

TABLE 2: APPRAISAL OF THE TWO PROCUREMENT METHODS TRADITIONAL METHODS ADVANTAGES DISADVANTAGES 1. It is commonly used and most Clients are It consumes time both at commencement familiar with it. and completion stage of projects. 2. It is highly favoured in terms of its It cannot be used effectively for large and quality consideration for effective complex projects management. 3. There is inherent capacity to monitor and It makes coordination of information and control cost during the design and resources difficult. construction stage. DESIGN AND BUILD METHOD 1. It enables the contractor to offer the There is inability to provide effective benefits of specialised construction monitoring, control of cost and quality knowledge and methods. standard. 2. It reduces the time spent in traditional tendering procedure. 3. There is no claims by contractor for due to lack of information since he has the full responsibility of design and build 4. It protects the Client against the risk of cost overruns.

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PERFORMANCE MEASUREMENT the Holy Bible “For which of you MEASUREMENT CRITERIA AND intending to build a tower sitteth not down PERFORMANCE VARIABLE first and counteth the cost, whether he Performance measurement in the have sufficient fund to finish it?” (Luke construction procurement process is as 14:28). Masterman's survey reveals more important as in the manufacturing process subtle and important secondary criteria where companies in a broad range of for project satisfaction in terms of cost industries have committed substantial (Koleoso, 2001). resources to develop performance measures for their products, services and QUALITY operations. In reality the design of Quality is interpreted differently in the performance measures has often been literature. Quality is the totality of influenced and sometimes solely characteristic of an entity that bears on its determined by the availability of data or ability to satisfy stated or implied needs ease of measurement rather than the true (PMI, 2000). A quality process is one that value of information captured (Chang and continually improves (Stevens, 1996). Ibbs, 1998). According to the ISO 9000 standard, It has been established that individual quality is the degree to which a set of categories of clients adopt different inherent characteristic fulfils the criteria in determining the success of requisites (Serpell and Labra, 2002). The projects (Koleoso, 2001). Differing client design expressed in the form of drawings characteristics will generate different and specifications plays the role of expectations and criteria for achieving yardstick for assessing conformance”. satisfaction with respect to cost, time, quality and use of building and hence will RESEARCH METHODOLOGY influence the client's selection of a This study is a survey research that utilizes procurement method and subsequently cross- sectional design to obtain the the performance of the project primary data. Population of the study (Ogunsanmi, 2001). consisted of Architects, Builders, Engineers, and Quantity Surveyors. TIME Random sampling technique was Delivery on time is one of the universal employed in selecting the desired sample goals in project development. (Aibinu and from the population of the study. The Jagboro 2002). A major criticism facing sample size consisted of 93 questionnaires the Nigerian construction industry is the that were sent to different respondents. growing rate of delays in project delivery. Out of which only Fifty-Seven (57) were retrieved and fitted for analysis and COST representing a response rate of 61.3 The importance of cost as a major Percent. The survey questionnaire consideration in project development is solicited information on the bio-data of well reflected in the scriptural verse from the respondents (such as their academic

37 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 31 - 43 Mafinmidiwo qualification, working experience etc), 16 and 15 which represent a combined procurement method adopted for the proportion of about 57 percent. Civil project, criteria for judging the engineers constitute about 17 percent of performance of project, data related to the respondents, builders 15 percent while project quality. Descriptive statistics in the rest are either project managers or form of tables, mean-item scores and mechanical/electrical engineers. These frequency ranking were used for respondents are affiliated to two or more analyzing the primary data. professional bodies are about 27 percent, while the rest have affiliation to one DATA ANALYSIS PRESENTATION professional body. AND SUMMARY OF FINDING All the projects had at least a supervising Analysis of Demographic Data consultant as can be seen from Table 4. In The analysis shows that architects and most of the projects 4 or 5 supervising quantity surveyors top the list of consultants were involved. respondent with respective frequencies of

TABLE 3: PROJECTS ACCORDING TO NUMBER OF SUPERVISING CONSULTANTS INVOLVED No of supervising Frequency Percentage (%) Consultants 1 12 21.8 2 9 16.4 3 4 7.3 4 20 36.4 5 8 14.5 No response 2 3.6 Total 55 100

P R O C U R E M E N T M E T H O D and build procurement method. The ADOPTED AND RATIONALE FOR respondents were also asked to indicate THE CHIOCE ADOPTED the rationale for the choice of the For each project which data is filled into procurement method adopted for the the questionnaire, respondents were asked project. 47.3% indicated that the choice of to indicate the procurement method procurement method was made on the adopted. Of the 55 projects analysis, 31 of basis of clear knowledge of its apparent them representing 56.4% were delivered advantages over other methods. 29.1 % using the traditional procurement method said the choice was made based on while 23 numbers (41.8%) used design recommendation. A negligible proportion

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(7.3%) of respondents cited lack of method adopted for their projects. See awareness of other methods as the Table 4 rationale for sticking to the procurement TABLE 4: RATIONALE FOR CHOICE OF PROCUREMENT METHOD Rationale for choice of method Frequency Percentage (%)

Clear knowledge of advantages 26 47.3 Lack of awareness of others 4 7.3 On recommendation 16 29.1 Other reasons 8 14.5 No response 1 1.8 Total 55 100

The results of the responses received on judging the performance of project and of the respective ratings for the various procurement method are summarized in criteria in respect of their importance in Table 5

TABLE 5: PROCUREMNT METHOD PERFORMANCE CRITERIA S/N Criteria for Judging Performance Proportion Rank of Respondents (%) A Shorter delivery time or speed of total process 77.7 1 B Degree of duration certainty or minimum time overrun 62.9 6 C Lowest possible cost or cost economy 62.9 6 D Degree of cost certainty or minimum cost overrun 67.3 5 E Low maintenance/Life cycle cost 61.8 8 F Aesthetic quality of design and workmanship 70.9 4 G Conformance to design & specification 74.5 3 H Functionality & fitness for purpose 75.6 2

It can however be observed from the MIS minimum time overrun. Moreover, of the table that the most important criterion for three criteria relating to project cost judging performance is shorter delivery lowest possible cost or cost economy is time or speed of total process and the least the most important, while conformance to is low maintenance/life cycle cost. Also, design and specification is the most of the two criteria relating to project time, important of the three criteria relating to shorter delivery time is more important project quality. than degree of duration certainty or

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TABLE 6: RANKING OF THE CRITERIA FOR JUDGING PERFORMANCE ACCORDING TO MIS Criteria for Judging level of Importance Mean Rank Performance Item Score (MIS) Not slightly Fairly Very Extremely (1) (2) (3) (4) (5) Shorter delivery time or 2 2 8 22 20 81 1 speed of total process Conformance to design & 2 6 6 6 23 0.8 2 specification Lowest possible cost or cost 1 3 16 18 16 0.77 3 economy Degree of cost certainty or 1 6 11 22 15 0.76 4 minimum cost overrun

Aesthetic quality of design 5 5 6 21 18 0.75 5 and workmanship

Degree of duration certainty 1 8 11 20 14 0.74 6 or minimum time overrun Functionality &fitness for 2 1 7 16 15 0.72 7 purpose Low maintenance/Life cycle 4 7 10 23 11 0.71 8 cost

COMPARATIVE RESULT OF ideal completion time is more for design PROCUREMENT METHOD IN and builds method. This is understandable RESPECT OF PROJECT TIME in view of the fact that there is rarely any VARIABLE competitive proposal in respect of time at The variance from the design time is more tendering stage. or less the same for traditional The result reveals that there is higher cost procurement method as it is for design and of certainty in the design and build build method. For the construction period, projects but the difference is marginal. the variance is much less for the Cost variance and cost of variation are traditional method but the overall more or less the same for both methods. It schedule variances is more or less the would appear though that design and build same for both methods though slightly method has better cost economy as seen less for design and build method. Worthy from its almost zero variance from its of note is the fact that the variance from ideal completion cost.

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TABLE 7: COMPARATIVE RESULT OF THE PROCUREMENT METHODS IN RESPECT OF THE REASONS OF COST OVERRUN

Traditional Responses (reason for Design & Build method S/N method cost overrun) Frequency Percentage Frequency Percentage Variations, etc 13 41.9 12 52.2 A Fluctuations, etc 6 19.4 5 21.7 B Delayed completion 3 9.7 0 0 C Re measurement 3 9.7 0 0 D E initial underestimation 0 0 2 8.7 F Others 0 0 0 0

TABLE 8 SUMMARY OF QUALITY RATING FOR THE PROCUREMENT METHOD BASED ON THEIR MIS Quality Criteria Procurement Rating Score Mean Item Method Score (MIS) Very High Aver Poor (1) High(4) (3) age (2) Traditional 9 17 3 0 0.802 Design Aesthetic Design & build 9 10 4 0 0.804 Extent of detail & Traditional 6 12 11 0 0.707 specification Design & build 6 13 4 0 0.772 Conformance to design & Traditional 7 18 4 0 0.776 specification Design & build 10 12 1 0 0.848 Traditional 5 19 5 0 0.75 Quality of construction Design & build 7 11 5 0 0.772 Traditional 9 16 4 0 0.793 Meeting functional expectations Design & build 10 10 3 0 0.826 Adequacy in term of Traditional 5 18 6 0 0.741 safety standard Design & build 5 13 5 0 0.75 Traditional 6 10 13 0 0.69 Minimal maintenance requirement Design & build 4 14 5 0 0.739 Traditional 10 19 0 0 0.836 Level of satisfaction to the client Design & build 8 12 3 0 0.804

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CONCLUSION AND thrive and grow or fade off depending on RECOMMENDATION what they have to offer over the prevailing Conclusion methods. The appropriate circumstances Based on the result of the analysis the in which each of these methods should be following can be concluded: adopted be better defined in order to There is no significant difference in the lessen the dilemma of the industry performance of traditional and design and stakeholders in the choice of an build methods in terms of design time, appropriate procurement method for any tendering time, construction time, total project. completion time and ideal completion time. REFERENCES Also, there is no significant difference in Aibinu, A. A. and Jagboro, G. O. (2002) the performance of the two procurement The effects of construction methods in term of cost certainty, delays on project delivery in construction cost, variation cost, ideal Nigerian construction industry, completion cost and maintenance/running International Journal of Project cost. management, 20 (80, 593-599. Thus, this research work has helped to Ashworth, A. (2001) Contractual confirm that there is no significant procedure in the Construction difference between the performances of Industry, 4 t h ed. Harlow: design and build procurement method and Longman traditional method in general. Banik, G. (2001) Risk allocation in design-build contracts. In ASC Recommendation th Proceedings of the 37 annual In light of the above, the following conference, University of recommendations are been made: Denver, pp 125-136. On the subject of procurement, more Chang, S. C. and Ibbs, C. W. (1998) research work should be done in order to Development of consultant produce more empirical basis for the performance measure for design acceptance or rejection of the various projects, project management claims by protagonist of each of the Journals, 29 (20, 39-54 different procurement methods. Chartered Institute of Building (1996) Those procurement methods which valid Code of practice for project research findings consistently prove to management, 2nd ed, Harlow: have engendered better performance and Longman. efficiency to the building and construction Dickerson, J. (2000) Why design-build is industry should be embrace encourage a solution for today's time and fine-tuned for better performance. crunch. Development Web An enabling environment should be Article viewed 1st Jan. 2000. created for other alternative methods to http://org/developmentmag/feat

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ures/indexn.cfm Ogunsanmi, O. E. (2003) Construction Frank, J. (1990) Building procurement procurement performance in system. Berk: Chartered Institute N i g e r i a : c h a l l e n g e s a n d of Building constraints. Paper presented at Koleoso, H. (2001) Relevance of First International conference on procurement method criteria Globalization and Capacity rating matrix (Franks method) to building in the construction procurement method selection in industry of developing. Nigeria, The Lagos Journal of Omotosho, S. T. (1999) Management of Environmental Studies, 3 (1), 68- labour only contract for building 84 construction projects in Lagos Ngowi, A. (2002) Challenges facing metropolis, M. Sc. Construction construction industries in management project report, developing countries, Building University of Lagos. Research and Information, 30 Patterson, N. (1999) A summary series of (3), 149-151. recent research commissioned by Nubi, T. O. (2002) Construction Scottish Homes, viewed 15th Feb procurement: need for paradigm 2 0 0 4 . h p p : / / w w w. s c o t - shift, Building Quarterly, 1 (10) homes.gov.uk/pdfs/69.pdf 17-18, 26-27. PMI, (2000) A guide to the project Ogunsanmi, O. E. (1997) Selection of management body of knowledge. main contractor in Nigeria. The 2000 ed, Pennsylvania: Project Journal of the federation of Management Institute Building and Civil Engineering Turner, A. (1995) Building procurement, Contractors in Nigeria, 12 (1), 2- 2nd ed. Hong Kong: Macmillan 11 Press Ltd. Ogunsanmi, O. E. and Iyagba, R. O. Windapo, A. O. and Iyagba, R. O (2001) (2001) Modelling procurement Comparative analysis of performance in housing projects construction scenario in the in Nigeria. The Lagos Journal of United States of America and Environmental Studies, 3 (1), 16- Nigeria, The Lagos Journal of 20 Environmental Studies 3 (1), 85- 106.

43 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk

FINANCE: ITS INFLUENCE ON THE HOUSING INVESTMENT AND DELIVERY DECISIONS BY PRIVATE SECTOR IN LAGOS.

NGOZI V. UDOETUK DEPT OF ESTATE MANAGEMENT YABA COLLEGE OF TECHNOLOGY, YABA.

ABSTRACT The private sector investor in housing is often profit driven, and depends on his equity contribution and loan which make up capital to fund housing development and delivery. Raising capital is at a cost, to be able to meet the cost and make profit in the short and long run, the private sector has to be prudent in the housing investment decision made. Therefore this work sought to establish if the availability of capital influences urban housing decisions made by the private sector, to public liability and limited liability companies, partnerships and sole proprietorships. Questionnaires were administered to and the responses were analyzed using SPSS (statistical package for social sciences). The hypotheses were tested using chi square test since the natures of the responses were categorized and in frequencies. The results were found to be mostly significant and in such cases the Null hypothesis accepted. The findings showed that the activities of the private sector have been impaired by the unavailability of adequate capital. Thus is due to low capital base of the organizations, the high cost of borrowed fund and stringent lending terms. These have hindered the private sector from adequately contributing to housing the different income groups in Lagos. Based on these findings the following recommendations among others were made. The private sector should widen their capital base and fund mobilization base by embracing the concept of unitization or the pulling together of resources to enable large scale development and delivery. Key words: Capital, housing delivery, investment, private sector.

Introduction provision of accommodation for different The National Housing policy of 1991 income groups in the country. acknowledges that over 90 percent of the Despite the promulgation of the policy available stocks of urban housing are almost two decades ago, there is still produced by the private sector. The policy shortage of dwellings in Nigeria and the also accords recognition to the importance situation is still at crises level. In Nigeria, of the private sector participation and 85 percent of the urban dwellers live in delivery. rented single room apartments mainly in Chapter 8 of the policy is mainly devoted informal settlements with occupancy rate to the mobilization of the private sector, ranging between 8 to 12 persons per room identification of the problems (Ajanlekoko 2001, and Omirin 2007). encountered by the private sector and the The above situation, perhaps is most

44 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk obvious in Lagos, being the most a balance between resource input and urbanized state in Nigeria (Odumosu and profit or returns. Adedokun 1987). Recently the Brinkoff, Given this scenario, is it possible that the in principal agglomeration of the world, private sector would be discriminating in ranked Lagos 25th, with a population the housing investment decisions it 11,800,000 and annual growth rate of 3% makes? This work seeks to provide to 20%. It also predicted that by the year pertinent answer to this question. 2015 Lagos will be the third largest mega To this end the aim of this work is to city after Tokyo and Bombay in India determine what influences the urban (Castle 2010). housing investment decisions made by the The housing situation in Lagos therefore private sector. Based on this, the following will be further complicated by this objectives are pursued. predicted population growth rate. There 1. Investigating if the capital needed are housing difficulties particularly of the for the development and delivery low-income group, inflated real estate of housing is available to the values and speculative activities. Also low private sector. cost homes provided by the public sector 2. Establishing if the availability of are bought or 'hijacked' by car owing, low capital determines the availability income individuals (Akintola 1998, and of other inputs in housing Agbola and Adegoke 2007). Rents have development and influences the escalated by between 800 percent to 1000 private sector decision to target percent of their 1990 levels (Omirin c e r t a i n s e g m e n t s o f t h e 2007). The low income and incomeless population. are forced into informally produced sub- 3. Finding out if the private sector standard units in slums and peri-urban housing investment is targeted areas. towards specific segments of the Ideally housing should be provided for the population. teaming population that falls into different households of varying socio-economic Housing Investment status, diverse cultural background and Housing may mean different things to age brackets. The private sector as an different people depending on the acknowledged actor in housing delivery is circumstances and perspectives from expected to do this. which the concept is viewed. Early writers Ironically, the private is viewed as like Adams (1964) asserts that housing is institutions, firms and individuals active not just shelter, but part of the fabric of in different aspects of shelter process but neighborhood life and the whole social always organized to generate profit on the milieu, it touches upon the facets of investment of their resources (UNCHS industrialization, economic activity and 1993). Therefore the private sector being development. aware of its resources and the capital Miles (1974) summarizes the concept of intensiveness of housing, aims at striking housing into three as follows; economic,

45 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk social and environment. Housing is also Therefore, in recent times the role of the conceived as an economic food or public sector or national governments in commodity, a consumer durable good, the provision of housing has changed. which is traded or exchanged in a market According to Forest (2008) there has been and as an investment good which returns a retreat from direct state provision of equity to its owner (Bourne 1981). housing which has been paralleled by the The economic significance and growth of individual home ownership and investment potentials of housing have more market oriented housing systems. been affirmed by several writers, (Omirin Forest (2008) further argues that the 1992, Agbola 1998, Nubi 2000, Ogueffi reduction in direct housing provision by and Adesanmi 2004 and Agbola and the state or public sector has diminished Adegoke 2007). Their assertions are state capacities to respond as effectively confirmed by IFC (2003), stating that as in the past to the shifting housing needs investment in housing accounts for and demands of the population. Thus, between 15% and 35% of aggregate there is now greater reliance on the private investment worldwide. Also, personal sector for housing provision. The private residences account for between 75% and sector has been more efficient in both 90% of household wealth in emerging production and delivery of housing to all market economies, and that housing categories of the population (Agbola and represents between 15% and 40% of the Adegoke 2007). However Omirin (2007) monthly expenditure of households contradicts this view, asserting that low- worldwide. income housing is unattractive to the Investment in housing is carried out by the private sector investors, and further public sector, private sector, including argues that low income housing is risky, private persons or individuals. However, perceived to be relatively unviable it has been severally argued that the public because it is mostly rental tenure with sector alone is not a good investor and poor capital recovery potential; involves cannot solve the housing problems problematic management practices, (Mabogunje 1978, Agbola 1998). As early carries welfare connotations which make a s 1 9 6 9 , F r e e d m a n g i v e s t h e it prone to government interventions responsibility for housing production and which affect profitability. delivery to the private sector when he asserts that housing delivery should be left The Private Sector to the private sector; hinging his argument The private sector is categorized into on the strength of capitalism (Agbola and organized and unorganized private sector. Adegoke 2007). The arguments in the The organized private sector, consists of favour of private sector are based on the formal organizations mostly set up by law efficiency and effectiveness of the private and have organized and identifiable sector as well as the corruption and offices, employ a number of staff and keep inefficiency of the public sector (Agbola proper books of accounts. In this category and Adegoke 2007). are financial institutions, trading and

46 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk manufacturing companies, oil companies, financial cost associated with housing property development companies e.t.c. development are land cost (acquisition The unorganized private sector is on the and supersession cost) statutory cost, other hand characterized by informal construction cost, consultancy/ organizations and private individuals. professional cost and cost of funds or In whatever context this is looked at, both capital. categories participate in housing The final cost of housing is obviously development, as discussed elaborately by influenced by the cost of land, (Parson 1989, Ajayi 1995, Agbola 2000 construction and finance for construction. and Udoetuk 2000); the investor, dealer, According to Okpala (1994) next to land house owner and business or the owner- and building materials, housing finance is occupier for business purposes. perhaps the most important factor in Also in some instances an owner may hold housing production and considering that property for more than one objective e.g. adequate finance can help the purchaser of an owner-occupier may sublet part of his land and materials. premises; in which case he expects rental Due to the large outlay of resources income which is an investment. involved most real estate transactions involve debt financing, and borrowing is The Cost Components usually the major source of funds (Greer Since the primary motive of the private and Kolbe 2003). sector is usually financial return, cost in Therefore, the investor mixes borrowed relation to return plays a vital role. funds with equity (his personal resources) Oyiboka (1996) opines that housing and creates a financial leverage. Greer and development process means adding Kolbe (2003) further explain that the capital to land resources to alter its natural higher the ratio of borrowing to equity, the state or form, changing the use of and greater the degree of leverage. Higher demolishing old structures and erecting leverage magnifies the yield on the new ones. This process involves cost investor's equity funds, multiplies the tax implications. Cost guides the private deduction for depreciation expense, and developer on the type, size, timing of the amplifies the benefit from favourable tax development and the resources to use out rates applicable to capital gains. Greer and of the available ones and the prospect Kolbe (2003) further explain that a highly returns. Thus Barlowe(1978) and Nwuba leveraged investment even a small (1991) see costs as those associated with favourable spread significantly magnifies the out lay of cash and human effort, time, return on equity. supersession and social costs; although On the other hand a small negative spread stressing the social costs are less (i.e. unfavourable leverage) on a high important to private developers. Lichfield leverage deal will negatively affect the (1974), Ratcliff (1981) and Serbeh- yield to equity investor. This can make Yiadom (1993) are of the opinion that the what would otherwise have been a good main costs in terms of outlay of cash or investment venture bad.

47 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk

Housing development finance open to a sampling method. The sampling frame is private sector developer, can be classified based on data from property development with reference to the duration of credit as companies as advertised in major follows; short i.e. bridging or front newspaper publications in the last one finance; medium, and long terms. These year. A representative population of 40 finance types can be sourced from made up of public liability companies, commercial banks, development banks, partnerships and sole proprietorships insurance companies and pension funds. were chosen. HFP, UAC properties and Sale and lease back, mortgage, contractor Stallion properties major players in finance, syndication are some methods of housing delivery were specifically providing credit to the private sector. included. The research hypotheses were The cost of finance i.e. interest rate is high tested using the chi-square test since the and has fluctuated between 18% p.a. to nature of responses were categorized; also 22% p.a. in the last 5 years (CBN 2009). Relative Index was employed for ranking Most often the interest burden surpasses of the factors / variables. the income from the investment leading to reverse yield back, which is the bane of the Data Presentation, Analysis and private sector developer. Also the extent Discussion of Findings or form taken by capital will depend on the Data has been analyzed using percentages interest rate. The interest rate encourages and the chi-square since the nature of or discourages investment in housing responses were categorized. The Likert since the developers hope for a growth scale was also used. potential in future having foregone an immediate benefit or reward. Characteristics of Respondents' Organizational Structure Research Method As a first step towards understanding the Source of Data nature of a particular problem in a study The primary source of data was from such as this, its component characteristics questionnaire administration, and have to be known. In this case therefore, secondary source from scholarly journals, the organizational structure, capital base, books and professional publications e.t.c. and number of housing units delivered to The questionnaire was administered using date were considered and further convenience sampling a non probability summarized in tables 1, 2 and 3.

48 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk Table 1 Respondents’ organizational chart Organizational structure Frequency Percentage Limited Liability 16 57.1 Public Liability 1 3.6 Partnership 5 17.9 Sole Proprietorship 6 21.4 Total 28 100

As shown in table 1, limited liability 17.9% while sole proprietorship 21.4%. companies constitute 57.1%, public This infers that most of the respondents liability companies 3.6%, partnership are limited liability companies. Table 2 Respondents’ capital base Capital base Frequency Percentage Below N300m 15 53.6 N501m – N1b 9 32.1 N1.01b – N1.5b 1 3.6 N1.51b – N2.0b 1 3.6 Above 2.0b 2 7.1 Total 28 100

Considering the capital base of the private capital base. Reasons for this could be that sector, it was indicated from the table 2 their sources of finance are mainly from that 53.6% have capital base below N500 banks and financial institutions (shown in million, while 32.1% have between N501 table 3) which is not used to acquire fixed million and N1 billion, while 3.6% have assets but is used for raw materials, between N1.01 billion to N1.5 billion, and equipment and working capital. However, 3.6% have between N1.51 billion to N2 the more capital base of a company, the billion, while 7.1% have above N2 billion. more eligible the company may be for It is clear from the above table that most credit facilities. organizations have below N500 million

Table 3 Respondents’ Sources of Finance Source of finance Frequency Percentage Bank and other financial institutions 17 60.7 Savings 4 14.3 Funds from other Investments 7 25.0 Total 28 100

49 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk

Table 3 shows that 60.7% of the funds. respondents source funds/capital from This interferes that the private sector banks and other financial institutions. depends mainly on the banks and other 14.3% use their savings while 25% use the financial institutions for funds. This funds from other investments within their means they have no direct control over portfolio or in other words consociate their source of funds.

Table 4 Estimated number of housing units delivered by respondents to date. Housing Units Frequency Percentage 0 – 250 units 12 42.9 251 – 500 units 8 28.6 501 - 750 units 6 21.4 751 – 1000 units 1 3.5 Above 1000 1 3.5 Total 28 100

In table 4, we sought to know the actual between 501 and 750 units, and the number of housing units that respondents remaining 3.5% and 3.5% delivered 751 have been able to deliver to date. Analysis to 1000 units and above 1000 units of the result shows that 42.9% of the respectively. When this result is weighted respondents have been able to deliver against the annual estimated housing need below 250 units, while 28.6% delivered of 107,000 units, the above range is low 251 500 units. The next 21.4% delivered and short of expectations.

Table 5 Respondents’ views on the investment capital for development and delivery of housing SD D SA A Und Availability of enough capital/fund for the V2 organization to undertake the housing 60.7 32.1 0 0 7.1 delivery Willingness of financial institutions and V3 15 39.5 28.6 7.1 0 banks to give loan/credit Loan interest rates and loan repayment terms V4 are good incentives to private 35.7 35.7 17.9 10.7 0 developers/creditors. V5 Availability of capital determines the ability 0 17.9 35.9 35.9 10.7 to procure land for housing delivery V6 Availability of capital makes the procurement 0 0 60.7 39.3 0 of building materials easier

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V7 Workers and professionals in the building industry are easily engaged when capital is 0 0 39.3 57.1 3.6 available Availability of capital is a major factor V8 7.1 14.3 28.6 35.7 14.3 determining the rate of housing delivery Availability of capital/funds at lower interest V9 rates and better repayment terms will increase 3.6 10.7 28.6 50 7.1 the rate of housing delivery The private sector concentrates on the delivery V10 7.1 14.3 28.6 42.9 7.1 of flats, semi detached and detached houses. The private sector provides housing mainly in V11 low and medium density residential 3.6 10.7 35.7 42.9 7.1 neighborhoods. The private sector concentrates on housing V12 delivery for the high and medium income 7.1 14.3 28.6 35.7 14.3 earners than low income earners. Capital / fund invested is recouped faster when 0 7.1 50 28.6 14.3 V13 housing is for the high income earners. High cost of capital / fund is a major reason V14 for providing mainly flats, semi-detached and 0 7.1 50 35.7 7.1 detached houses

Key -: V = Variable, Und = Undecided = agree and strongly agree that these 0, SD = Strongly Disagreed = 1, D = institutions are always willing to give Disagreed = 2, SA = Strongly Agreed = credits/loans. 3, A = Agreed = 4. This result shows that a greater percentage One sought to know the response of disagree that these institutions are willing respondents on whether there is enough to provide loans. However, a reasonable capital/fund at their disposal to undertake percentage of the respondents are of the housing delivery V2, V3 and V4. opinion that the financial institutions do V2 shows 60.7% of the respondents give loans. strongly disagree and 32.1% disagree that V4 shows 35.7% and 35.7% of the there is enough capital, while 7.1% respondents strongly disagree and undecided. disagree respectively that loan interest This means that the greatest percentage of rate and loan repayment terms are good the respondents strongly disagree that incentives to private sector housing there is enough capital/fund at their developers, while 17.9% and 10.7% disposal. strongly agree and agree respectively. V3 shows that 28.6% and 39.3% strongly Respondents' view on the availability of disagree and disagree respectively that capital in determining the availability of banks and financial institutions are always the other inputs in housing delivery i.e. willing to give credit/loans, while 35.7% land, labour and building materials is

51 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk shown with V5, V6, V7. of the respondents are not sure. V5 shows 35.9% and 35.9% of the This infers that although a greater respondents strongly agree and agree percentage of the respondents agree that respectively that the availability of capital the availability of capital is a major determines the ability to procure land determining factor in housing delivery, while 17.9% disagree and 10.7% are not the other respondents believe that there sure that availability of capital determines are other factors apart from capital which the ability to procure land for housing determines the rate of housing delivery by delivery. the private sector. This infers that, although a greater In V9, 28.6% and 50% of the respondents percentage agree that availability of strongly agree and agree respectively that capital ensures the procurement of land, capital is made available to the private the others believe that capital is not the sector at lower lending rates and better only determining factor in the repayment terms there will be an increase procurement of land for the housing in the rate of housing delivery. While delivery. 3.6% and 10.7% of the respondents In V6 one sought to know if the strongly disagree and disagree availability of capital /funds makes the respectively, and 7.1% of the respondents procurement of building materials easier. are not sure. 60.7% and 39.3% of the respondents This results indicates that although a strongly agree and agree respectively that greater percentage of the respondents are availability of capital makes for easier of the view that lower lending rates and procurement of building materials. better repayment terms will increase their V7 shows 39.3% and 57.1 of the rate of housing delivery, the other respondents strongly agree and agree respondents are of the opinion that is not respectively that the availability of capital only lower lending rates and better makes it easier to engage workers and repayment terms that will increase the rate professionals in the building industry. of housing delivery. This infers that other However, 3.6% of the respondents are not variables apart from the above will sure that availability of capital makes increase the rate of housing delivery. engaging labour in the building industry Respondents' view on whether the private easier. sector caters for particular income Respondents' view on the availability of earners, housing development type and capital determining the rate of housing residential density type. Shown by V10, delivery, shown by V8 and V9. V11 and V12. V8 28.5% and 35.7 of the respondents V10 shows that the result of the strongly agree and agree respectively that respondents' opinion on whether the availability of capital is a major factor private sector concentrates on the delivery determining the rate of housing delivery. of flats, semi-detached houses, and While 7.1% and 14.3% of the respondents detached houses in Lagos. 28.6% and strongly disagree respectively and 14.3% 42.9% of the respondents strongly agree

52 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk and agree respectively, while 7.1% and private sector concentrates on provision 14.3% strongly disagree and disagree of housing for the medium and high respectively; and 7.1 are not sure. income earners, the other respondents are This result infers that although a greater of the opinion that the private sector also percentage are of the opinion that the delivers housing for low income earners. private sector concentrates on these Respondents' view on the availability of development/housing types, the other capital determining the private sectors' respondents believe the private sector decision to concentrate on housing does not concentrate only on the delivery for specific income earners, mentioned housing types. Thus, it can be shown by V13 and V14. inferred that the private sector also V13 shows that 50% and 28.6% of the delivers other housing types e.g. rooming respondents strongly agree and agree apartment i.e. tenement building. respectively that capital investment in In V11, 35.7% and 42.9% of the housing delivery is recouped faster when respondents strongly agree and agree housing is provided for the high income respectively that private sector provides earners than low income earners while housing mainly in low and medium 7.1% of the respondents disagree and density residential neighborhoods of 14.3% of the respondents were not sure. Lagos e.g. Victoria Island, Ikoyi, Lekki, This infers that a greater percentage of the Magodo, Ikeja GRA, etc. While 3.6% and respondents are of the opinion that 10.7% strongly disagree and disagree housing for the high income will enable respectively, 7.1% are undecided. the investor amortize profits faster. V12 is to determine the respondents' In V14, the result shows that 50% and opinion on whether the private sector 35.7% of the respondents strongly agree concentrates on housing delivery mainly and agree respectively that high cost of for the medium and high income earners, fund is a major reason for the private than the low income earners. 28.6% and sector delivering mainly flats, semi- 35.7% of the respondents strongly agree detached and detached houses. While and agree respectively that private sector 7.1% of the respondents disagree, 7.1% concentrates on housing delivery for were undecided. medium and high income earners. While V13 and V14 infer that a greater 7.1% and 14% strongly disagree and percentage of the respondents are of the disagree respectively; and 14.3% are not opinion that the private sector delivers this sure. housing type to be able to dispose of the These results V10, V11 and V12 infer that same faster and thus service the loans and although a greater percentage of the eventually repay the loans. respondents are of the opinion that the

53 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk

TESTING THE HYPOTHESES Due to the nature of the responses on the majority of the 28 cases, the most appropriate statistical test is the chi-square (X2) test, which is a test of significance when responses are categorized and when data are expressed in frequencies. Analytically, the X2 is computed as:- (O -E) 2 X2 = Ó ; Where O = Observed frequency, E = Expected frequency E The observed frequencies are the actual respondents. Corresponding to each observed frequency is an associated expected frequency and is given as; RT *CT E = ; Where RT = Row Total, CT = Column Total, N = Grand total of both row N and columns.

The computed chi-square (X2) value i.e. X2 (cal) is then compared with the tabulated chi- square i.e. X2 tab. Anytime X2 cal is less then X2 tab (i.e. X2 cal < X2 tab) we accept the Null Hypothesis and reject the Alternative Hypothesis while anytime X2 cal is greater than X2 tab (i.e. X2 cal > X2 tab) we reject the Null Hypothesis and accept the Alternative Hypothesis.

(I) Null Hypothesis Ho1: The needed capital for housing development and delivery is not readily available to the private sector. Significant level = 0.05

(II) Null Hypothesis Ho2: The inputs of housing development and delivery, land, man power or labour, building materials cannot be procured without adequate capital/fund. Significant level = 0.05

(III) Null Hypothesis Ho3: The rate of housing delivery cannot be increased without the availability of capital/fund. Significant level = 0.05

(IV) Null Hypothesis Ho4: The private sector housing delivery does not cater for specific segment of the population. Significant level = 0.05

(V) Null Hypothesis Ho5: The availability of capital does not determine the private sectors decisions to concentrate on housing delivery for specific segment of the population. Significant level = 0.05

Results of the chi-square tests performed to prove each hypothesis is presented in table 6.

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Table 6: Results of the chi-square tests performed to prove each hypothesis X2 Hypothesis Variable X2 Cal D.F Significant Decision Tab Accept H V estimated capital base of 1 1 27.714 4 11.143 S and reject the organization H0 V2 enough capital at Accept H1 disposal to undertake 12.071 2 7.378 S and reject Hypothesis housing delivery H0 I V3 Banks and other financial Accept H0 institutions willingness to 6.00 3 9.438 N.S and reject give loans / credit H1 Accept H V Loan interest rate 0 4 5.429 3 9.318 N.S and reject repayment terms H1 V5 availability of capital Accept H0 determines ability to procure 4.286 3 9.436 N.S and reject land H Hypothesis 1 V6 availability of capital II Accept H determines ability to procure 0 1.286 1 5.024 N.S and reject building materials and land. H 1

V8 availability of capital Accept H0 determining the rate of 7.714 4 11.143 N.S and reject Hypothesis housing delivery H1 III V15 availability of capital Accept H0 would deliver more housing 4.857 4 11.143 N.S and reject

units annually. H1 V10 private sector Accept H concentrates on delivery of 1 13.429 4 11.143 S and reject flats, semi-detached and H detached houses. 0 V11 private sector Accept H Hypothesis concentrates on housing in 1 18.071 4 11.143 S and reject IV low and medium density H residential areas 0 V12 private sector Accept H concentrates on housing for 0 7.814 4 11.13 N.S and reject medium and high income H earners 1 V13 Capital Invested in Accept H housing delivery is recouped 1 12.00 4 9.348 S and reject faster from housing for high H Hypothesis and medium income earners. 0 V V14 High cost of capital as Accept H the reason for developing 1 15.429 3 9.348 S and reject flats, semi-detached and H detached houses. 0

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Chi-square results of testing the available accepted, that is the components of needed capital for housing delivery to the housing delivery cannot be procured private sector are shown by V1, V2, V3 without adequate fund. and V4. This infers that availability of adequate The calculated X2 value of variables V1 capital/fund is a major determinant in the and V2 are higher than the tabulated X2 ability to procure the components of value, while the calculated X2 value of the housing delivery, land, building materials variables V3 and V4 are lower than the and labour. tabulated X2 value. Since some of these Chi-square results for testing whether the results were significant, hence the rate of housing delivery can be increased alternative hypothesis was accepted. by the availability of capital; shown by V8 From the above it infers that the needed and V15. 2 capital for housing development and The calculated X value of V8 and V15 are delivery is readily available to the private less than the tabulated X2 value. Thus, the sector. hypothesis is accepted while the alternate However, is should be noted that the hypothesis is rejected. capital base V1 of the organization in this This infers that the rate of housing study also refers to their fixed assets in the development and delivery by the private form of land and buildings, plant and sector cannot be increased without the machinery and not only liquid asset of availability of capital/fund. cash, which should be used to finance Chi-square results for determining housing delivery. whether the private sector caters for While V2 refers to finance available to specific income earners, housing respondents who source finance from, development type and resisdential type; private savings, consociate funds i.e. their shown by V10, V11 and V12. other investments and financial V10 and V11 have calculated X2 value institutions. greater than the tabulated X2 value. While However, V3 and V4 which test the V12 has calculated X2 value lower than the response of respondents who source tabulated X2 value. However, since V10 finance from mainly financial and V11 show significance, we accept the organizations infers that the needed alternate hypothesis and reject null capital/funds from financial organizations hypothesis. for housing delivery is not readily This infers that the private sector housing available to the private sector. delivery does cater for specific segment of Chi-squared results for testing ability of the population, i.e. specific income capital to procure the components of earners, specific housing residential housing delivery; shown by V5 and V6. density type. This also means that this The calculated X2 values of V5 and V6 are specific segment is high and medium lower than the tabulated X2 value. This income earners, within low and medium means that results for these variables are density residential neighborhoods; and not significant, the null hypothesis is the housing development type are mainly

56 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 44 - 60 Udoetuk flats, semi-detached and detached houses. shows that the results are significant. Chi-square results for determining Thus, the null hypothesis is rejected and whether the availability of capital the alternate hypothesis is accepted. This determines the private sector's decision to infers that the availability of capital concentrate on housing for particular determines the private sector's decision to income earners; shown by V13 and V14. concentrate on housing delivery for The calculated X2 value for V13 and V14 specific income earners i.e. the high and is greater than the tabulated X2 value. This medium income earners.

Table 7: Analysis of availability of investment capital being determinant of some elements of housing delivery using Relative Index. Elements of housing delivery No Sum Ranking The procurement of building materials 28 101 1 The procurement of labour (skilled and unskilled) 26 86 2 The acquisition of land 25 80 3 Determining the rate of housing delivery 24 72 4 Determining the type of housing and for particular 24 62 5 income group

Table 7 shows that the procurement of towards housing delivery by the building materials is the most affected by private sector. However, the bulk the availability of investment capital. of the capital/funds which is within the banking and financial FINDINGS sector is not readily available to 1. Based on the analysis, research the private sector property questions and the hypotheses it developer. Where these are made would be seen that the private available to the private sector, the sector involved in housing high interest rates on loans and the delivery is made up of mainly unfavourable repayments terms limited liability companies who are deterrent to the developer. depend on banking and other 3. The other components of housing financial organizations for the delivery whose cost of acquisition capital/funds needed for housing or procurement is quantifiable in delivery. monetary terms i.e. land, labour 2. The ability of the private sector to and building materials have to be deliver housing depends on the available to the private sector for availability of capital. There is adequate housing delivery. The adequate capital/funds within the availability of capital to the system from private savings, other private sector developer is a major investments, financial organiza- factor determining the ability to tion; that can be channeled produce these other components

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of housing delivery. However, maturity with low interest rates. This is capital is not the only determinant only feasible in the present economy, if the of the ability to procure these private sector pulls together financial components. It is most important resources from within the sector in a for the procurement of building concept called UNITIZATION, as smaller materials. organizations within the sector will merge 4. The contribution of the private to form large organization with larger sector to housing delivery in terms capital base. Thus such large organization of yearly addition to the housing will have access to move funds. stock has not been impressive. However, the availability of CONCLUSION capital at lower interest rates, Capital is the fulcrum or base on which the reasonable repayment terms will private sector can adequately deliver increase the rate of housing quantitative and qualitative housing to the delivery and provide more teaming population of Lagos State. The housing units annually. researcher believes that housing delivery 5. The private sector housing is not the sole responsibility of the private delivery provides mainly flats, sector, the public sector and the non- semi-detached and detached governmental organizations are also houses, within the low and veritable tools in the quest for housing for medium density residential areas all. for the medium and high income It is believed that the private sector would earners. Thus, the private sector succeed in housing delivery if the provides housing for a particular government and the other sectors of the segment of the society. economy appreciate their role in housing 6. The availability of capital delivery and courageously work towards determines the private sectors achieving that. decision to deliver flats, semi- Finally, this research has made some detached and detached houses in recommendations, which if adopted and low and medium density implemented, would enable the private residential areas for the medium sector housing developers play their roles and high income earners. The successfully. capital procured at high cost is recouped faster when the private REFERENCES sector delivers housing for this Adams, C. (1964) Housing in the Modern population. World, Faber London. Agbola, T. (1998) The housing of RECOMMENDATION Nigerians: a review of policy Unitization d e v e l o p m e n t a n d The private sector developer should seek a implementation. Research Report source of funding which combines long 14 Development Policy Centre,

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Ibadan. Greer, G. E and Kolbe, P. T. (2003) Agbola, T. (2000) Achieving and Investment analysis for real estate sustaining the potentials of decisions, Chicago: Dearbon housing in the National Poverty Estate Education Alleviation Programme. IFC (International Finance Corporation) Agbola, T. and Adegoke S. A. (2007) (2003) The new frontier in Economics of housing in housing emerging economies, development and Management, Washington: IFC Book of Readings Agbola T, Lichfield, N (1974) Economics of planned Egunjobi L and Olatibara L.O. development, London: The Estate (Ed) Ibadan, Dept of Urban and Gazzette Ltd. Regional Planning, University of Miles, S. P. (1970) Metropolitan problems Ibadan. international perspective - A Ajanlekoko, J. S. (2001) Sustainable Search for Comprehensive housing development in Nigeria: Solution, Toronto: Marthen the financial and infrastructural National Housing Policy (1991) implications, Paper presented at Publication of the Federal International Conference on Government of Nigeria, Press S p a t i a l I n f o r m a t i o n f o r Lagos. Sustainable Development, Kenya Nwuba C. (1991) Private urban property 2 5 Oct 2001. development in a depressed Ajayi, M. O. (1995) Private sector economy, NIEVS Seminar. involvement in housing with Nubi, O. T. (2000) Financing urban Lagos as case study, Paper housing, paper delivered in a presented at the National workshop organized by NIBRR. workshop on 2nd UNCHS Abuja Nubi, O. T. (2007) Secondary mortgage July 1995. market in Nigeria: the old is dead; Akintola, V. L. (1998) Shelter for all: the is the new ready to be born? in problem of housing in Nigeria, private sector housing delivery: Modus International Magazine. issues, challenges and prospects, Barlowe, R. (1978) Land resources edited by Nubi O. T, Omorin M. M economics: the economics of real and Afolayan A. S. estate. New Jersey: Prentice Hall Ogbuefi, J. U. and Adesanmi, M. A (2004) Inc. The effect of macro-economic CBN (2009) Central Bank of Nigeria factors on housing investment. briefs of publication of CBN. The Estate Surveyor Vol 24 No.1 Castle Magazine August 2010 March 2004 Forrest, R. (2008) Risk, governance and Okpala, D. C. (1994) Financing housing the housing market. Housing in developing countries, a review Finance International Vol VXIII of the pitfalls and potentials in the No 1, September 2008. development of formal housing

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finance systems, Urban Studies sources of capital, Paper delivered Vol 31, No. 9, 1994 (1571 86) at a Workshop on Value Oyiboka, O. (1994) Property development E n g i n e e r i n g a n d P r o j e c t and management in contemporary Management, May 1993 Lagos. Nigeria, lecture aid series. Apapa: Udoetuk, N. V. (2008) Comparative Real Estate Consultant. evaluation of the performance of Omirin, M. M. (2007) An evaluation of the residential properties in selected effectiveness of tax incentives for areas of Lagos State, The Yaba private sector investment in low Journal of Environmental income housing in Lagos. In Research Vol. 1 No. 1 June 2008. private sector driven housing Udoetuk, N. V. (2000) Housing delivery in delivery; issues, challenges and Lagos, the private sector prospects, Nubi T. O, Omirin M. initiative, being unpublished M and Afolayan S. A. (eds) M.U.R.P thesis of the centre for Ratcliff, J. (1981) Urban land planning studies, Lagos State administration London: The University. Estate Gazzette. UNCHS (1993), Public and private Serbeh Yiadom K. C. (1993) Introduction partnership enabling shelter to real estate finance methods and strategies, Nairobi. Habitat.

60 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 61 - 76 Oyenuga

THE USE OF BALANCED SCORE CARD BY FACILITY MANAGERS: A MEANS TO EFFECTIVE PERFORMANCE

OYENUGA, SINMISOLA O DEPARTMENT OF ESTATE MANAGEMENT, YABA COLLEGE OF TECHNOLOGY, YABA LAGOS.

ABSTRACT The balanced score card is a strategic performance management tool supported by proven design method and automation tool that can be used by managers to keep track of the execution of activities in an organization for the actualization of the organization's vision. It was invented in the late 1980's and became popular in the mid- late 1990's. It is seen as a tool which enables executives to truly execute their strategies. However, the use of this dynamic tool is still foreign in Nigeria due to the low level of awareness. This paper seek to examine amongst others the characteristics, designs, variants, criticisms and perspectives of the balanced score card. Yaba College of Technology was used as a study area. The study found out through the use of questionnaire that Yaba College of Technology has an aggregate performance of 47.01% showing a fair performance in how activities are being carried out within the college. It was however recommended that operating goals of the several units and departments should align directly with the strategic vision of the organization as specified by the Balanced Score Card.

Keywords: Balanced score card, facility and performance . 1.0 INTRODUCTION a specific goal. In the opinion of Sink The ultimate aim of implementing a (1991) performance measurement is a performance measurement system is to “mystery… complex, frustrating, improve the performance of an difficult, challenging, important, abused organization such as a bank, an institution and misused function”. The level of of higher learning etc so that it may better performance a business attains is a serve its customers, employees, owner function of the effectiveness of the actions etc. it undertakes, and thus performance A performance measurement can be measurement can be defined as the defined as a metric used to quantify the process of quantifying the effectiveness of efficiency and effectiveness of an action. an action. Performance measurement Homec (1993) defined performance as system developed as a means of that vital sign of the organization which m o n i t o r i n g a n d m a i n t a i n i n g quantify how well the activities within a organizational control which is the process or the output of a process achieve process of ensuring that an organization

61 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 61 - 76 Oyenuga pursues strategies that lead to the at the best combination of efficiency and achievement of overall goals and cost. objectives. Nani, Dixon, Vollman (1990). Facilities management on the other hand Facilities management encompasses a exists to support core business, Simpson vast spectrum of perspectives about (1996). Empirical research (Barrett 1992, people, organizations and changing Douglas 1996, Simpson 1996) indicates processes to realize the value of any that facilities management appears to organization. These practices are utilize a wide range of measures, not only generally consistent with the ideas and traditional financial accounting measures techniques originally articulated by Nutt but also indicators of managerial (1992), Akhalaghi (1992). Mole and behaviour as well as various other Taylor (1992) classified all these into Four measures of effectiveness. categories: Facilities Planning, Building This paper considers both the basis for operations and Maintenance, Real Estate measurement of performance by facilities and Building construction and general managers with reference to the Balance services. Score Card, and the possibility of applying such a management system in Facilities management advocates appear facilities management. to give an equal weight to the importance of customer involvement and satisfaction 2.0 FACILITIES MANAGEMENT is needed to support continuous Facilities management can be defined by improvement within the organization; reference to its nature, scope and role. Becker (1990). They also appear to Becker (1990) suggested. Facilities assume a strong correlation between management is responsible for satisfaction and performance, Eccel coordinating all efforts related to (1992), Kaplan and Norton (1992) Letza planning, designing and managing (1996). buildings and their system equipment and furniture to enhance the organization's The link between the human resources ability to compete successfully in a management and facilities management rapidly changing world. Speeding, can also be seen in the models of facilities Holmes (1994) identified that the function management proposed by Barret (1994) of facilities management should be that of and in the work of Hoxley and Bareet managing the property in the best interest (1992). of the core business. Therefore, the aim of facilities management should not just be 2.1 FACILITY PERFORMANCE to optimize running costs of buildings, but EVALUATION also to raise efficiency of the management Alexander (1998), Amaratunga and of space and related assets for people and Baldry and Sharsar (2000) focused their processes in order that the mission and the extensive studies on evaluation of goals of the organization may be achieved performance management. In the study of

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Amaratunga and Baldry (2000) they ? F i n a n c i a l : W h a t i s t h e expoused that various techniques of perspective of the shareholders / performance measurement has been used clients on our operations? extensively since 1980. Amongst these are ? Innovation: How can the Benchmarking and Post Occupancy organization learn and improve? Evaluation, Kincaid (1994). ? Customer Perspectives: How Organizations have measured facilities must the organization look to the performance using financial indicators customers? and some efforts have also been directed Source: Adapted from Kaplan and at determining unit cost of facilities Norton, (1992) components part. Tramfield and Akhalagi (1995). These methods they opined may Setting Up a Balanced Scorecard have been appropriate in the past but due Amaratunga, Baldry and Sharsar (2000) to competitiveness of facilities were of the opinion that the first step is to management organizations, they are no translate the organizations strategy into longer adequate. A new performance objectives and measures for each of the evaluation method is proposed and used in four perspectives and that the design their research work to take care of users' structure for a balanced scorecard satisfaction, finance, internal process, applications will include the following: growth and learning of the organization. ? Measures: This is a performance This technique is called the Balance Score metric that will reflect progress Card. against set objectives. This measue must be quantifiable. It 2.2 BALANCE SCORE CARD must state the specific way to Sanger (1998), Kaplan and Norton, achieve the objectives and become (1992) all agreed that Balance Score Card the action statement of how the BSC is a management system that focuses strategic objectives will be the efforts of people, through-out the accomplished. organization, towards achieving strategic ? Targets: This is a quantifiable goal objectives and converts the organization's for each measure. These sets of vision and strategy into a comprehensive targets found in balanced score set of performance and action measures cards becomes the overall goals of that provides the basis for a strategic the organization. measurement and management system. BSC translates the organization's vision ? Cause and Effect Linkages: The into a set of performance indicators objectives are related to one distributed among the following four another through cause and effect perspectives: relationships. ? Internal Processes: What ? Strategy Initiatives: These are internal processes of satisfying the action programmes which drives customers must we excel at? the strategic performance. These

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are the activities that will be results. focused on to achieved the desired

Cause and Effect Relationship

Financial Operating expenses

Customer Customer Satisfaction

Internal Business processes Process Quality

Learning and G r o w t h Employee Skills / Suggestions

Figure 15: Cause and Effect Relationship Source: Amaratunga et al., (2000)

Amaratunga (2000) in his study in perspectives of Facility Management Building performance evaluation in balanced scorecard. This measurement higher education properties. A facilities enable the Management organization the management approach came up with basis to evaluate how well its performing sixteen strategic objectives which are sub- towards its predetermined objectives and sector of the four perspectives of balanced assists in identifying its areas of strength score card that could be used as and weaknesses. measurements for objectives and

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Table 1: Perspectives of Balanced Score Card Perspectives Strategic Objectives Strategic Measurement Financial F1 – Financial Growth Cash Flow F2 – Cost reduction/Productivity Cost reduction rates Improvement Unit costs (per unit of output) F3 – Assets Utilization Reduce indirect costs F4 – Management of working capital Services sharing with other units Reducing the working capital Customer C1 – Timeliness of service Customers satisfaction survey C2 – Service quality C3 – Range of service offered C4 – Effectiveness of partnership, Communication and co-ordination Internal 11 – Service excellence technology Process Management Capability Service quality survey 12 – Understand the customers Superior project management 13 – Employee Competence Employee satisfaction index 14 – Process efficiency Customer contacts, surveys 15 – Team work and co-ordination Output/cot ratio Number of multi-skilled staff. Learning and L1 – Technology leadership Time to develop new processes Growth L2 – Continuous service Staff attitude and survey Improvement/ service Number of employees /customer Innovations suggestions L3 – Upgrade staff competencies Degree of new facilities/services /staff Development introduced. Employee satisfaction Staff development programme Courses completed Internal promotions made New business development Expanded services. Training hours per employee Independent training courses Table: Balance Score Card Perspectives. Source: Amaratunga (2000) The four perspective of the scorecard measures on a balanced scorecard seems permit a balance short-term and long term confusing to some, properly constructed objectives, between desired outcome and scorecards contain a unity of purpose outcome and performance drivers of those since all the measure are directed towards outcomes, and between the objectives achieving an integrating strategy. Kaplan measures and softer, more subjective and Norton (1992) expanded the measure. While the multiplicity of definition of the balanced scorecard as

65 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 61 - 76 Oyenuga follows: critical internal business processes that will have the greatest impact on customers Customer Perspective: How do satisfaction and achieving the customers see us? organization's financial objectives. The customer perspective looks at the The internal business processes organization through the eyes of its perspectives reveals two fundamental customers. Many organizations today differences between the traditional and have a corporate mission that focuses on balanced scorecard approach to the customer's perspective has become a performance measurement (Kaplan and priority for top management. The Norton, 1992). Traditional approaches balanced scorecard demands that mangers attempt to monitor and improved existing translate their general mission statement business processes. The balanced on customer (Kaplan and Norton, 1992). scorecard approach, however, will usually Customer's concerns tend to fall into four entail new processes at which the categories: time, quality, performance and organization must excel to meet customer services and cost. Customer satisfaction and financial objectives. The internal measurement, for example, is one of the business process objectives highlight the generic outcome measures. Customer processes most critical for the satisfaction measures provide feedback organization's strategy to succeed. on how well the organization is doing, depending on customer's evaluation to Innovation and Learning Perspectives: define some of the organizations. Can we continue to improve and create value? Performance measures forces the ?The learning and growth organization to view its performance perspective deals with research and through customer's eyes. development. The customer and internal perspectives will have focused on the Internal Processes Perspectives: What organization's current competitive must we excel at? position. The innovation and learning The internal processes perspective reports perspectives is required in order to on the efficiency of internal processes and recognize that what is constantly procedures. The premise behind his changing. Intense global competition perspective is that customers-based requires that companies make continual measures are important, but they must be improvement to their existing processes translated into measures of what the and have ability to introduce entirely new organization must do internally to meet its processes with expanded capabilities customer's expectation (Kaplan and (Kaplan and Norton, 1992). The Norton, 1992). This perspective must organization, its management and all of its reflect the organization's core skills and employees, must continually seek to critical technology involved in adding learn, to innovate and to improve every value to the customer's business. The aspect of the organization and its business

66 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 61 - 76 Oyenuga just to maintain their competitive mance indicators on behaviour situation, let alone to improve it in future. ? Not all measure can be quantified.

Financial Perspective: How do we look 3.0 HISTORICAL to shareholders? BACKGROUND OF YABA The financial performance measure COLLEGE OF TECHNOLOGY defines the long run objectives of the Yaba College of Technology started as the business unit (Kaplan and Norton, 1992). Yaba Higher College, in 1932, at the kings Financial performance measure indicates college premises in Lagos Island and later whether the organization's strategy, moved to its present site in 1934. Yaba implementation, and execution are Higher College was established with the contribution to bottom-line improvement. aim of providing basic vocational A well designed financial control system education for secondary school leavers can actually enhance an organization's from every part of Nigeria, in recognition management system. Currently, the of the acute shortage of manpower in balanced scorecard is a powerful and Nigeria. widely accepted framework for defining performance measure and communicating However the colonial administration in objectives and vision to the organization. 1947established the Yaba Technical Roest (1997) based on practical Institute, the institute, a precursor of the experience in pivoting the balanced to present Yaba College of Technology took work, determines the following ten golden over the facilities being used by the Yaba rules for its implementation. Higher College. The students were moved ? There is no standard solution: all to form the nucleus of the college by 1948. business differ The name of to the institution was ? Top management support is formally changed to Yaba College of essential Technology on the 23rd September 1963 ? Strategy is the starting point by his Excellency, Dr Nnamdi Azikiwe, ? Determine a limited and balanced the then Governor General of Nigeria number of objectives and during the official opening of the measures. Engineering Block built from a donation ? No in-depth analyses up-front, but by Shell BP towards the development of refine and learn by doing. the institution. The institution consist of eight schools or faculties namely: School ? Take a bottom-up and top-down of Arts and Printing, School of Science, approach School of Technology, School of Liberal ? It is not system issue, but system Studies, School of Management and are issues Business Studies, School of Engineering, ? Consider delivery system at the School of Environmental and School of start Part Time Studies and technical ? Consider the effect of perfor- Education.

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Other principal units are: Library, faculties of the college and members of Students Affairs Units, the School staff in the bursary unit and lecturer as Medical Centre, the Registry, the Rectory, well. the College Library, Works and Services The respondents were chosen based on the Section, other sub-units are also as four perspectives of the balance scorecard follows: Centre for Entrepreneurship and the research questions were structured Development (CED), Servicom Dept, accordingly. CITM, Applied Research and Technology A total of 150 questionnaires were Unit, the College Consult. Currently, the administered to the various respondents. college is being upgraded to a university. 80 of this were administered to students, while 20 were administered to the bursary 4.0 RESEARCH staff. 40 were administered to the lecturers METHODOLOGY while the remaining 10 were administered The primary form of data was considered to management staff (policy makers). suitable for the study and it was adopted The use of descriptive analysis is accordingly. Students from the eight employed and the data analysed are schools lecturers and some management presented in tables and percentages. (The staff were given questionnaires by the question are prepared to cover the 4 adoption of the random sampling perspectives of the balanced score card technique to students from the various and the 16 sub-sectors attached to it).

4.1 DATA PRESENTATION AND ANALYSIS Bursary staff Table 1: Prompt release of annual budget Option Number % Yes 14 70 No 06 30 Total 20 100 Source: Field Survey, 2010.

Table 1 showing prompt release of budget 30% affirm that the budgets are not shows that 70% of the respondents agree released on time. that the budgets are released on time while Table 2: Correlation of spending to budget Option Number % Yes 16 80 No 04 20 Total 20 100 Source: Field Survey, 2010.

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Table 2 showing spending match budget the year while 20% agrees that spending shows that 80% of the respondents agree does not match budget at the end of the that spending matched budget at the end of year. Table 3: Response level of management to request from heads of units Excellent Very Good Good Fair Poor Total 1 1 12 6 - 20 5 5 60 30 - 100 Source: Field Survey, 2010. Table 3 showing level of management to 20% out of 100% of the respondent request from heads of units shows that responds.

Table 4: Contract Allocation Option Number % Yes 04 20 No 16 80 Total 20 100 Source: Field Survey, 2010. Table 4 showing whether contract while 80% of the respondent answered allocation follows due process shows that that contract allocation did not follow due 20% of the respondent answered that process. contract allocation follows due process Table 5: Payment of contractors Option Number % Yes 08 40 No 12 60 Total 20 100 Source: Field Survey, 2010.

Table 5 showing whether contractors are respondents say No. therefore it shows paid as at when due shows that 40% of the that they are not paid when due. respondents says Yes while 60% of the Table 6: Lecturer punctuality to class Option Number % Yes 62 77.5 No 18 22.5 Total 80 100 Source: Field Survey, 2010.

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Table 6 showing whether lecturers attend says No, therefore it shows that lecturers their classes regularly shows that 77.5% attend classes regularly. of the respondents says Yes while 22.5% Table 7: Victimization of Students by lecturers Option Number % Yes 77 96.25 No 03 3.75 Total 80 100 Source: Field Survey, 2010. Table 7 showing whether students are 3.75% says No. Therefore students are not being victimized by lecturers shows that victimized by lecturers. 96.25% of the respondents says Yes while Table 8: Adequacy of school library Option Number % Yes 35 43.75 No 45 56.75 Total 80 100 Source: Field Survey, 2010. Table 8 showing the adequacy of school the school library is not adequate for the library shows that 43.75% says Yes while student. 56.75% say No. Therefore, it implies that Table 9: Management-Student-Forum Option Number % Yes 08 10 No 72 90 Total 80 100 Source: Field Survey, 2010. Table 9 showing the student / management management forum are effective while forum effectiveness shows that 10% of the 90% says that the student/ management respondents agrees that the student/ forum are not effective.

Table 10: Provision of hostel facilities Option Number % Yes 11 13.75 No 69 86.25 Total 80 100 Source: Field Survey, 2010.

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Table 10 showing the provision of hotel says Yes while 86.75% says No. facilities and other facilities adequate Therefore, this implies that these facilities shows that 13.75% of the respondents are not adequate enough.

Management Staff (Policy Makers)

Table 11: College staff competence Option Number % Yes 9 90 No 1 10 Total 10 100 Source: Field Survey, 2010.

Table 11 showing the competent of the respondents says No. This implies that the college academic staff shows that 90% of academic staffs are competent in their the respondents says Yes while 10% of the duties. Table 12: Relationship between management and college staff Excellent Very Good Good Fair Poor Total 2 5 3 10 20 50 30 100 Source: Field Survey, 2010. Table 12 showing the relationship relationship between management and between management and college of staff college staff. Therefore, it shows that the shows that only 10% out of 100% of the level of relationship between the respondents strictly respond that there is a management and college staff is quite low. Table 13: Remuneration of college staff Option Number % Yes 4 40 No 6 60 Total 10 100 Source: Field Survey, 2010.

Table 13 showing the adequacy of the 60% of the respondents claim No. college staff remuneration shows that Therefore, this shows that the college staff 40% of the respondents says Yes while remuneration were not adequate.

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Table 14: Students performance Option Number % Yes 4 40 No 6 60 Total 10 100 Source: Field Survey, 2010. Table 14 showing that the student while 60% of the respondents did not performances commensurate with agree that the students performance lecturers' inputs shows that 40% of the commensurate with the lecturers' inputs. respondents agrees that it commensurate

SECTION D Table 15: College facilities and teaching aids Option Number % Yes 31 77.5 No 09 22.5 Total 40 100 Source: Field Survey, 2010. Table 15 showing that college have Yes while 22.5% says No. This implies adequate facilities to aid teaching practice that the there are adequate facilities to aid shows that 77.5% of the respondents says teaching practice. Table 16: Students’ attitude to learning Excellent Very Good Good Fair Poor Total Number 11 21 3 5 - 40 % 27.5 52.5 7.5 12.5 100 Source: Field Survey, 2010. Table 16 showing how to access students' 7.5% agree good while 12.5% agree a fair attitude towards learning, it shows that result. Therefore it is observed that very 27.5% of the respondents agrees excellent good can be used to access students performance, 52.5% agree very good, towards learning.

Table 17: Internet facilities Option Number % Yes 02 5 No 38 95 Total 10 100 Source: Field Survey, 2010.

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Table 17 showing whether the availability while 95% says No. This implies that of internet facility are adequate to cater for availability of internet facility is not students needs, shows that 5% says Yes adequate to cater for students needs. Table 18: Sponsorship of research and further studies Option Number % Yes 35 87.5 No 5 12.5 Total 40 100 Source: Field Survey, 2010. Table 18 showing the management implies that the management sponsor sponsor research and studies for further research and studies for further degrees by degrees by staff shows that 87.5% says staff. Yes while 12.5% says No. Therefore, it

5.0 SUMMARY OF FINDINGS Bursary Staff

70 + 80 + 5 + 40 + 20 = 175 5 5 = 43%

Student 77.5 + 96.25 + 43.75 + 10 + 13.75 = 241.25 5 5 = 48.25%

Policy Makers 90 + 20 + 40 + 40 = 190 4 4 = 47.5%

77.5 + 27.5 + 5 + 87.5 = 197.5 4 4 = 49.3% The total aggregate of performance for Yaba College of Technology will be: 43 + 48.25 + 47.5 + 49.3 = 188.05 4 4 = 47.01%

KEY: Performance Appraisal Key 1 – 39% - Poor 40 – 49% - Fair 50 – 59% - Good 60 – 69% - Very Good 70 – 100% - Excellent 73 A Publication of the School of Environmental Studies, Yaba College of Technology The Yaba Journal of Environmental Research (June 2013) (2), (1) 61 - 76 Oyenuga

The total aggregate performance for Yaba 7.0 RECOMMENDATION College of Technology after analysis of This study has made necessary the questionnaires was 47.01. This result investigations into the use of the balanced shows a fair performance in how Yaba scorecard and based on this the following College of Technology carries out its recommendations are hereby suggested: activities. 1. It is recommended that all day-to- day decision by facilities 6.0 CONCLUSION managers should be based on the The ability of facilities management to strategic plan of the firm/ plan, anticipate and initiate change is organization as specified by the enhanced if it utilizes management tool organization using the balanced such a the balanced scorecard. However, scorecard. the scorecard must be balanced in order to 2. The operating goals of depart- facilitate the achievement of short, ments and individual should align medium and long term goals and directly with the strategic vision of objectives of the organization. the organization. 3. The role of communication in an This paper addresses the applicability of organization needs to be the balanced scorecard in to facilities emphasized as the vision/plan of management as a performance assessment the organization must be tool. The adoption of this process would communicated to full understan- be major change initiatives in most ding by individuals in that organizations. Kaplan and Norton (1992) organisation through the use of provided a very useful generic model in balanced scorecard. the form of their balanced scorecard. As 4. It is of utmost importance that seen in the study detailed in this paper, the organizations do not fail to collect quadripartite model they present is suited the right information to monitor to different types of business situations. progress towards achieving the The original idea of the scorecard strategic goals. technique, as they pointed was “not whether you had created value, but if you REFERENCES are going to create value in the future”. Alexander, K. (ed) (1996) Facilities The impact of this management and management: theory and practice. measurement process is the basis for the London, E & FN Spon. research currently being conducted by the Amaratunga, D. & Baldry, D. (1990) authors. Issues such as completeness of Building performance evaluation of the balanced scorecard measures, higher education properties: effectiveness of enhancing facilities towards a process model, Procee- management performance and barriers to dings of COBRA 99 RICS (Constru- implementation should be the focus of ction and Building Research future investigations. Conference, Vol. 2 pp. 45-56.

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