COST IMPLICATION OF DEFECTS IN RESIDENTIAL BUILDINGS WITH A VIEW TO INCREASING THE QUALITY OF HOUSING DELIVERY IN NIGERIA
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CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Quality is a fundamental term in the construction industry. The non achievement of such a crucial aspect of construction can result in the failure of a construction project and in the dissatisfaction of clients or building occupants. Furthermore, the non achievement of quality can result in delays in building projects and the need for rework which can result in a significant financial loss (Zunguzane, Smallwood and Emuze, 2012).
The construction industry plays an essential role in the economic development of any developing nation (Kheni, Dainty and Gibb, 2008) and especially in an expanding economy like Nigeria (Ibironke, 2003).Okeola (2009) stated that at least 50% of the investment in various development plans is primarily in construction and the industry is the next employer of labour after agriculture in underdeveloped countries. The construction industry in Nigeria generates about 70% of the Nations fixed capital formation. In spite of this, its performance within the economy is very poor (Arazi and Mahmond, 2010).
With the knowledge of the relevance of the construction industry to a developing economy, its very important that its products are of the best quality. Due to the unsatisfactory quality of residential buildings in Nigeria, particularly the low income housing schemes sponsored by various government agencies, owners of new buildings are made to incur extra cost on repairs and maintenance which could have been avoided if due diligence had be taken thereby preventing them from unnecessary pains. Apart from the cost involved in rectifying defects, inconvenience and sometimes lack of trust in the contractors by the house owners had continuedto be on the increase, thereby leading to loss of patronage in future works. It is very important that owner’s satisfaction is given uttermost attention and unnecessary cost of repair is avoided.
The building contractor incur additional cost on rework as defects detected during the construction stage and within the defects liability period is taken care of by the contractor. The implication of this is that the contractor will have to spend part of his profit if not all, depending on the magnitude of the defects in repair of defective work.
According to Abdul-Rahman, Wang, Wood and Khoo (2014), one of the most common problems faced by house purchasers in Malaysia is the substandard construction of houses. Despite the Malaysian government commitment in providing adequate, affordable and quality houses for all income level groups, with emphasis on the development of low cost housing, there continues to be challenges in developing the housing sector (Arriffian, Abu and Jumadi, 2010).
With this understanding, it has become necessary to address the issue of defect so as to safeguard the construction industry from the danger it portends. This study will seek to establish the types and causes of defects. It will also attempt to find the cost implication of such defect and also investigate methods of reducing defects in residential buildings.
1.2 Statement of the Research Problem
The condition of residential buildings constructed by public agencies leave much to be desired. Complaints had been made regarding defects in buildings delivered through government housing schemes in Nigeria, particularly the affordable income housing schemes. Complaints range from poor finishing, misfunctional services, structural defects, poor quality material etc. Arazi and Mahmond (2010) stated that the last decade had exposed the declining level of clients’ satisfaction from the built facilities as a result of poor performance in addition to the perennial problem of time and cost overrun in Nigerian construction industry. Consequently building owners spend extra cost in an attempt to get these defects corrected.
Buys and Roax (2013) stated that defective construction contributes to both the final cost of a project and the cost of maintenance which can be substantial. In the entire lifecycle of any building, defective construction can be both a bane and a burden to that building, its users and its neighbourhood (Ojo and Ijatuyi, 2014). Most defects can be traced to design errors, poor or inferior materials, supervision lapses and incompetence of artisans.
At the construction stage, shortcomings affect the cost and time of construction because such works have to be revisited. During use, such buildings defects are left to the clients to grapple with and also maintain. (Ojo and Ijatuyi, 2014). The general implicationof defects in residential buildings are: owners are dissatisfied; extra cost is spent by owner to effect repairs; there is a disruption in the programme of the occupier when repairs are effected; contractors spend extra cost on rework and there is a lack of trust in the contractor by building owners. It is important that prospective house owners have confidence in the quality of the house they are buying. The general belief is that government built houses are substandard and hence many prospective buyers are weary of patronising them.
Defective construction is not limited to developing economies. Pole (1997) stressed that there had been claims of defective construction in the California housing market which focused on the development of condominium subdivision. This has resulted to rapid increase of construction defects litigation. Hopkin, Rogers and Sexton (2014) highlighted that the pressure the UK house building industry is currently under may be having a negative impact on building quality, causing an increase in defect. The residential construction industry is an important contributor to the Australian economy; the industry employs a large component of the national workforce and yet the industry is plagued by defective work and poor quality (Mills, Love and Williams, 2009).
This research will seek to identify what are the various types of defects in residential buildings and their causes. It will also investigate what are the cost consequences of defects with a view to highlight its effect on total construction cost and also investigate methods of reducing defects on residential buildings.
1.3 Research Questions
The following research questions will be asked so as to fulfil the aim and objectives of this research.
- What are the types of defects in residential buildings?
- What are the causes of defects?
- What are the cost implications of defects in residential buildings?
- What methods can be used to reduce defects in residential buildings?
1.4 Aim and Objectives of the Study
The aim of the study is to investigate cost implication of defects in residential buildings with a view to increasing the quality of housing delivery in Nigeria.
The objectives are:
- to investigate different types of defects in residential buildings in Lagos
- to ascertain causes of defects in residential buildings
- to determine cost effect of defects in residential buildings
- to investigate methods for reducing defects in residential buildings
1.5 Significance of the Study
At least 50% of the investment in various development plans is primarily in construction and the industry is the next employer of labour after agriculture in underdeveloped countries (Okeola, 2009). Considering the relevance of the construction industry to the development of any nation, since it provides most of the infrastructural requirements, its very important that due attention is given to the products that come from the industry. Building projects that are defective will not give a good image to the industry.
The satisfaction derived from buildings in fulfilling the function and aesthetics properties is somehow missing in most public residential buildings in Ghana. (Allotey, 2014). There had been complaints raised by several occupants of the low income housing units built by the government. Complaints range from low quality materials, poor workmanship, unsuitable structure etc. These occupants deserve good quality for what they paid for and hence the need to reveal the causes of these problems and suggest ways of reducing or eliminating them.
It is important that owners of buildings purchased from the government have confidence in the government regarding the quality of housing delivery so that there expectation of a quality building is fulfilled.
From the review of previous literatures, it was discovered that several researches had been conducted on defects in buildings. However, very limited numbers of these researches have been carried out on cost effect of defect on buildings. Most researches were on types and causes of defect. This research will certainly be an addition to the body of knowledge.
While numerous research studies have attempted to determine the underlying causes of defects in residential construction (llozor, et al, 2004), limited research has been undertaken that addresses the specific defect costs that have been incurred (Josephson and Hammarlurd, 1999).
The various contractors or builders who are engaged in the construction of these buildings need to understand where they are loosing money particularly during the defects liability period when they are responsible for making all good defects detected.
Defects have caused Malaysian government an enormous sum of money. The government has continuously provided allocations for maintenance works for completed buildings and a significant proportion are for defects rectification work (Kian, 2001) Mills, Love and Williams (2009) identified that defects on average, account for about 4% of the contract price in Australia. This is a cost that could be avoided if necessary steps are taken to minimise the occurrence of defects in building construction.
Josephson, (1998) concluded that defect cost for seven building projects of different types in Sweden was 4½% of the production cost. This was found to be twice as much as the average profit margin.For a building project with large incident of defects, the chances are rare that the building contractor will record an appreciable profit. Having a better knowledge of the effect and cost implication of defect on residential building, the industry is in a better position to moderate its operations so as to achieve better products.
1.6 Scope of the Study
This research will focus on buildings that had been completed not less than 6 months and with occupation period not exceeding 5 years. The research will be carried out on residential buildings constructed by Government with special interest in one of the residential housing estates of the Lagos State Ministry of Housing.
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