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TABLE OF CONTENTS
Index Title Page
Title page…………………………………………………………..i
Declaration…………………………………………………………ii
Certification…………………………………………………………iii
Approval page………………………………………………………..iv
Dedication……….………………………………………………..…v
Acknowledgement………………………………………….……......vi
Table of content ……………………..………………………………vii-xi
List of table……………….…………………………………………xii
List of figures………..………………………………………………xiii
Abstract……………..………………………………………………xiv
CHAPTER ONE: INTRODUCTION
1.1 Background of Study……………………………………………………1-2
1.2 Statement of Problem……………………………………………………3
1.3 Objectives of Study………………………………………………………4
1.4 Research Questions……………………………………………………….4
1.5 Hypothesis Formulation………………………………………………….4
1.6 Significance of the study…………………………………………………5
1.7 Scope of the Study……………………………………………………….6
1.8 Limitation of the Study………………………………………………….6
1.9 Definition of Terms …………………………………………………..6-7
CHAPTER TWO: LITERATURE REVIEW
2.1 Preamble…………………………………………………………………...…8
2.2 Project Defined…………………………………………………….............8-9
2.2.1 Characteristics of Project…………………………………………………….10
2.2.2 Characteristics of a Project……………………………..…………………….10
2.2.3 Classification of project within categories and sub-categories………….……10
2.3 Project Management……………………….………..…………………….11-13
2.4 Planning in Construction…………………………………………………..13-14
2.4.1 Project Planning…………………………………………………………...14-18
2.5 Project Life Cycle……………………………………………………….....18-19
2.6 project planning tools and techniques………………………………….……...19
2.6.1 The agreement Matrix…………………………………………………............19
2.6.2 Project Definition Rating Index (PDRI)………..……...……………...…....19-20
2.6.3 Work Breakdown Structure (WBS)………………………….……………20-21
2.7 Project Planning Techniques………………………………………………..21-26
2.8 Factors Affecting Project Planning Effectiveness…………………………..26-28
2.9 The Role of Project Planning In Increasing Contractors Profit……………..28-30
2.10 Project Performance…………………………………………………………30-31
2.11 Summary of Review………………………….……………………..……….31-32
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Preamble…………………………………………………………………………33
3.2 Research Design………………………………………………………...............33
3.3 Description of study area…………………………………………………………33
3.4 Population of the Study………………………………………………………….33
3.5 Sample Size and Sampling Technique…………………………………………..34
3.6 Data Collection………………………………………………………………….34
3.6.1 Sources of Data……………………………………………………………….…34
3.6.2 Instrument for Data Collection………………………………………………….35
3.8 Data Analyses Tools/Techniques……………………………………………35-37
CHAPTER FOUR: DATA PRESENTATION, ANALYSES AND DISCUSIONS
4.1 Preamble………………………………………………………………………………38
4.2 Data Presentation…………………………………………………………………..38-41
4.3 Data Analyses/Findings……………………………………………………………….41
4.3.1 Questionnaire Administration and Response Rate……….….……………………….41
4.3.2 Respondents Characteristics………………………………..……………………..42-44
4.3.3 Project Planning Techniques and Tools in Construction Project Delivery………..44-45
4.3.4 Factors Affecting Project Planning Practices of Contractors………………………46-47
4.3.5 Impact of Proper Project Planning On Contractors’ Profitability……………….….48-50
4.4 Discussion of Findings…………………………………………………………………50
4.4.1 Project Planning Techniques and Tools Used by Contractors in Construction Project
Delivery………………………………………………………………………………….50
4.4.2 Factors Affecting Project Planning Practices of Contractors…………………………...51
4.4.3 Evaluating the impact of proper project planning on Contractors’ profitability………..51
CHAPTER: FIVE SUMMARY, CONCLUSION AND RECOMMENDATION
5.1Preamble………………………………………………………………………………….52
5.2 Summary……………………………………………………………………………........52
5.3 Summaries of Findings…………………………………………………………………..52
5.3.1 Project Planning Techniques and Tools Used by Contractors in
Construction Project Delivery and its implications…………………………………..52-53
5.3.2 Factors Affecting Project Planning Practices and Its Implications………………………53
5.3.3 The Impact of Proper Project Planning On Contractors’ Profitability and Its Implication.53
5.4 Conclusions………………………………………………………………………….53-54
5.5 Recommendations………………………………………………………………………54
REFERENCES……………………………………………………………………………….55-57
APPENDIX A: QUESTIONNAIRE…………………………………………………………58-60
APPENDIX B: CHI SQUARE DISTRIBUTION TABLE…………………………………......61
LIST OF TABLES
Table 4.1 Level of Use of Project Planning Tools ……………………….…………………….39
Table 4.2 Factors that Affect the Effectiveness of ProjectPlanning…….……………………40
Table 4.3 showing project planning on contractors’ profitability……………………….…….…41
Table 4.4 Response Rates to the Study…………………………………..……………..………41
Table 4.5 Showing the background information of the respondents …..…………………........42
Table 4.6 Ranking the level of use of project planning tools…………………………………...44
Table 4.7 level of significance of the use of the project planning tools………………………..45
Table 4.8 Ranking of factors affecting project planning………..………………………….….46
Table 4.9 Testing if the factors identified are significant……………………………………..47
Table 4.10 Showing project planning impacts on contractors profitability………………….…..48
Table 4.11 Spearman correlation ranking of the relationship……………………...……….……49
LIST OF FIGURES
Figure 1.1 WBS and their description……………………………………………20
Figure 1.2 Gantt Charts………………………………………………………. ...21
Figure 1.3 CPM diagram………………………………………………………. .23
Figure 1.4 PERT chart …………………………………………………………. 25
ABSTRACT
The increased complexity of the society and high level of competition in the construction industry has made it imperative for contractors, project managers and construction companies to carry out serious planning in order to ensure project success and profits. This work examined project planning impact on a contractor’s profitability. The objectives were to identify project planning techniques and tools used by contractors in construction project delivery, determine factors affecting project planning practices of contractors, and to evaluate the impact of proper project planning on contractor’s profitability. The research approach involved survey design using structured questionnaire administered to 50 respondents in Owerri, Imo State, Nigeria. Spearman Ranked Correlation, Chi Square and other descriptive statistical methods were adopted for data analysis. The findings of the study revealed that Gantt chart with a mean score of 4.83 was the most commonly used tool used by contractors in project planning, and project funding not aligning with project plans with a mean score of 4.70 is the most common factor affecting project planning effectiveness. The hypothesis tests between level of use of project planning practices and contractors’ profitability using Spearman Ranked Correlation test indicated significant positive relationship between effective project planning and contractors’ profitability. The study concludes that project planning efforts influences contractor profitability in construction project delivery. The recommendations put forward were that project management teams should expose contractors to the relevance of project planning and its benefits. Clients should properly define their brief and contractor to avoid purchasing materials that won’t be used immediately in cases of installation of lifts that require heavy machinery and store houses.
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Projects are used in all economic and non-economic fields as mean of organizing the activity, aiming the achievement of desired objectives. There is a direct relationship between projects, projects portfolio, programs and the organizational strategy. Projects, as the main way of creating and dealing with change (Cleland, Gareis, 2006), are used to implement strategies. Meskendahl (2010) refers to projects as the central building block used in implementing strategies, therefore business success is determined by the success of the projects. A project is an individual or collaborative enterprise, possibly involving research or design that is carefully planned, usually by a project team, to achieve a particular aim New York Time (2009). A project is also temporary because it has a defined beginning, end time, and defined scope and resources (Cathy, 2009). A project is unique because it is not a routine operation, but a specific set of operations designed to accomplish a singular goal. Based on these characteristics, carefully it is imperative to plan to achieve targeted outcome. Thus; Project planning can be defined as a part or branch of project management, which relates to the use of schedules to plan and subsequently report progress within the project environment.
Dubois and Gadde (2002) described the construction industry as decoupled and McKinsey (2017) confirmed that it is still true. The lack of coupling is present both between the construction project and its subcontractors as well as between the project and the parent company and other projects. This hampers the possibility to have a successful coordination of resources on a portfolio level within the contractor, as resources are in many cases utilised from a common resource pool (Engwall and Jerbrant 2003).The construction industry therefore embraces a wide range of loosely integrated organizations that collectively construct, alter and repair a wide range of different building and civil engineering projects. Individuals, organizations and government need to carry out some form of project planning for building and civil engineering project before embarking on whatever activity they are engaged to do. According to Lock (2002), the principal identifying characteristics of a project is its novelty, it’s a step unknown fraught with risk and uncertainty. No two projects are ever exactly alike and even a repeated project will differ from its predecessor in one or more commercial, administrative and physical aspect.
Construction is also characterized by time and cost intensive production processes which make it prone to project risks and failure, mainly in terms of time and cost. In practice, this means, that the performance of construction projects is usually low. In particular, construction projects are very often delayed and over budget. This is not just due to problems faced during project scheduling, but also during related processe
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