Effects of Claims on Delivery of Building Projects in Nigeria

Abstract

Claim has been the major reason why contractors in Nigeria failed in meeting up with obligations made and implementing the contract successfully. In order to observe and evaluate the claim situation in construction project and give way of settling them comfortably. This paper devotes the research and literature review to key problem in claims administration in construction project in Nigeria. Qualitative research was used; secondary data from archives was collected from the physical planning unit. Primary data was collected through interview made to principal quantity surveyor in the physical planning unit in order to elicit information on effects of claims on building projects in Federal University of Technology Akure. Data collected were analyzed using content based analysis where the most occurred types and causes of claims in FUTA projects were examined and rank accordingly. The result shows that variation claims was ranked the highest types of claims due to change of specification, architect instruction for additional works e.t.c. The second ranked was delay claim due to delay in supply of materials, delay in payment by client. The most occurred causes of claim were change in specification, delay in supply of materials, architect instruction for additional work and the least occurred causes of claim is increase in material or labor cost. The most occurred effects of claims in FUTA projects were non-completion at the right time, cash flow reduction, low quality and cost overrun. The paper therefore recommends that there should be complete and detailed design, payment of contractor as at when due to prevent delay of supply of materials as well as a proper way to process claim and document to back up any claim arising from contractor or client.

Keywords: Claims, Delivery, Administration

DOI: 10.7176/IEL/9-2-01

Publication date:March 31^st 2019