AKOGUN, Scientific Research and Impact, 3(4): 65-74, January 2013

Available online at http://scienceparkjournals.com/sri

(ISSN 2315-5396) 2014 Science Park Journals

Full Length Research Paper

CAUSES AND EFFECTS OF CONSTRUCTION PROJECTS

ABANDONMENT IN ILORIN METROPOLIS, NIGERIA
IBRAHIM, T. AKOGUN
DEPARTMENT OF ESTATE MANAGEMENT, SCHOOL OF ENVIRONMENTAL STUDIES,
MOSHOOD ABIOLA POLYTECHNIC, ABEOKUTA

Accepted 22 October 2014

ABSTRACT:

Despite the dearth of financial resources for project execution in Nigeria, a lot of
money has been wasted on construction projects which prior to completion were abandoned by various
property developers. Abandoned worksites are countless nationwide as they are found almost
everywhere. No one however has attempted to track down precisely, how many construction projects,
the causes and effects of such project abandonment. The theme of this project is to X-ray its causes
and effects in the study area, with a view to examining the resultant problems on occupiers of
properties within the vicinity. The sample for the study was taken from Kulende Housing Estate, Ilorin
by simple random sampling. Primary data were gathered by physical observation of the concerned
properties, and questionnaires administered on occupiers of neighbouring houses within the estate.
The data collected were analysed by frequency distribution tables and percentages. It was discovered
that most of the sites were abandoned because of high cost of constructions, lax attitude of contractors
and developers. The main effects of project abandonment identified by the study are social problems,
dangerous animals and fear of sudden collapse of the structure. Abandonment of construction project is
not good for the economy as it results in waste of resources among other effects which are hydraheaded in nature.
Keywords: Construction Project; Abandoned Project; Project Abandonment, Abandoned construction site.

______________________________________________
* Correspondence: email: akogun2000@yahoo.com

INTRODUCTION
An abandoned project is an uncompleted project in a time frame of a contract (Sani, 2008). It occurs at
the construction stage which is a very critical phase to determine the success or failure of the project.
Abandonment of construction project have much negative impacts on the owners, contractors,
consultants, blue collar workers and residents near the project. The economy of any nation cannot be
said to be in good shape without a meaningful development in many sectors especially the real estate
sector. Government at the three tiers have embarked on one type of project or the other to make life
more meaningful for their people but whether these projects were well conceived and completed or not
is another issue entirely. Property development abandonment has been the bane of infrastructural
development. The government and private sectors have failed to complete many projects as scheduled
and put into proper use. Therefore, it is imperative to identify the reasons behind this, and find a lasting
solution to the problem of project abandonment. It is hoped that findings and recommendations arising
from the research will be useful to the policy makers, corporate bodies and private individuals. It will
also serve as a guide towards preventing waste of human and financial resources through prudent
resources management. The objective of this study is to investigate the causes and effects of
construction projects being abandoned. The investigation bothers on the causes of the abandonment and
impacts it has on the immediate environment.

LITERATURE REVIEW
Abandoned construction project is a natural problem in construction industry. This means that issues of
abandoned construction project are not unexpected but can be preventable. In fact there are risks of
delay in every project and it may be difficult to avoid, unless there is proper planning with all parties
involved in the project delivery. Bramble and Callahan (1987) stressed that an abandoned construction
project is an uncompleted project in a time frame of a contract. The delay in a construction project
always happens when construction and progress work at a project site is stopped for 6 months or more
and continuously either in a time frame of a contract or out of a time frame like in a sale and purchase
agreement. The delay in a construction project also occurs if the developers agree that they are not
capable of executing the project. The development and growth in a country depend on the performance
and progress of construction projects. So, the management of construction project is important in
ensuring that the project is completed within the shortest timeframe. There are five phases in a
construction project viz: pre-design phase, design phase, tender phase, construction phase and
occupied phase. Delay problem starts from the construction phase (Abdrahman et al., 2006). Arditi et
al. (1985) observed that construction industry is linked to and depends on other sectors which are at
input and output levels. The input for the construction industry is bought from other sectors while the
output is used by those sectors. So, the effect of delay or abandonment of a construction project have
impacts not only on the construction industry but also on other sectors within the countrys economy
(Dlakwa and Culpin, 1990).

TYPES OF DELAY
Abandoned construction projects are always connected with a time frame. When the time becomes too
long, the project becomes an abandoned one. However, work may resume on site anytime the
problems that led to the abandonment are resolved. Four types of delay have been identified in
construction industry. They are discussed as follows.
Excusable Delays: Excusable delays are delays beyond the control of the developer or contractor.
This type of delay is not caused by people involved in a construction project but results from acts of
God (Evans, 2004). This situation makes those involved in a construction project fail to follow the
requirements of a contract. So, the contractor can apply to extend the time of the project. Syed et al.

(2002) identified the situations in excusable delays to include natural disasters such as floods, storms
and earthquakes, extraordinary rain, riots, refusal to work as a protest and insufficient construction
materials. This type of delay is justifiable (Bramble and Callahan, 1987) on the ground that it is beyond
the control of the developer and contractor.
Compensable Delays: Compensable delays fall within the excusable delays category. The delay is
caused by controlled factors which are direct responsibilities of the developer (Evans, 2004). It happens
when the developer fails to carry out his responsibility within the time frame. Nevertheless, the
contractor is qualified to get compensation from the developer if the action of the developer or
consultant lead to their failure to complete the project within the time frame (Abd. Rahman et al., 2006).
The developers action in this regard include delay in decisions taking, delay in giving instructions to
start work, changes in the scope of work or design, delay in giving construction drawing and delay in
progress payments. The contractor can get two types of compensation such as cost compensation and
time compensation.
Non-Excusable Delays: Non-excusable delays occur as a result of the failure of the contractor to
observe the contract obligations (Bramble and Callahan, 1987). They cannot claim any cost
compensation or time compensation. The situation that causes non-excusable delays are late arrival of
construction materials, tools, machines and workers to the project site. Others include limited work
offers, lax coordination, planning and management, insufficient construction materials and workers,
work spoilage and delays by sub-contractors (Syed et al., 2002).
Concurrent Delays: Concurrent delays happen when two or more types of delay are occurring at the
same time and affecting the critical path of project. Evans (2004) stated three types of concurrent
delays: excusable delays, non-excusable delays and compensable delays. This type of delay involves
both the developer and contractor. Concurrent delays are difficult to trace because the developer
cannot claim compensation from the contractor which is known as Liquidated Ascertain Damages
(LAD) and the contractor also cannot claim compensation from the developer.

CAUSES OF ABANDONMENT OF CONSTRUCTION PROJECT

Delay factors of construction project differ between one project situation and another. There are internal
and external delay factors in construction projects (Woudhnysen and Abley, 2004). The internal factors
are communication effectiveness problem and lack cooperation with a project management staff.
External factors are related to socio-cultural aspects, value and belief. Delay factors of construction
project are time, materials and weather. Odeh and Battaineh (2002) identified project or contract,
developers, consultants, contractors and construction materials as the factors that cause abandonment
of construction projects.
Time: Time is a conspicuous delay-causing factor in construction projects. The time can be expressed
in terms of hours, days, weeks, months or years. Abd. Rahman et al. (2006) stressed that delays in
projects are caused by time factor when the project is not completed in time. So, the project risks
abandonment when the time becomes too long. This matter was agreed by Chan and Kumaraswamy
(2001) in their research about construction time at Hong Kong. They identified four factors that is,
project scope, complexion of the project, surrounding of the project and management factors that affect
construction time. This is shown in Figure 2.
Cost: High cost of material, labour, etc acts as delay factors in construction project. The cost problems
may surface at any of the stages in construction project.
Weather: Unpredictable weather factor may delay construction project. Manavazhi and Adhikari (2002)
mentioned that construction materials may not be supplied to project site when it is raining. This is to
ensure that the construction materials are always dry and suitable to use on site. This situation may
cause construction works to be postponed until the weather is good.
Construction Materials: Construction materials insufficiency will also cause a delay in construction
project because it will affect the totality of the work progress on site. The problem of construction
materials management include unskilful blue collar worker, insufficient blue collar worker and
construction materials deficiency (Ogunlana and Promkuntong, 1996); increase in price of construction
materials, no construction materials in the market, difficulty in get construction machinery, high rental
price of machinery, the condition of project site and bureaucracy (Okpala and Aniekwu, 1988).

Developer: The developer may delay in giving project site to a selected contractor. This situation
affects the construction time of a project. Beside this, the developers decision on the right construction
materials and design to use, variation order and delay in progress payment. Sani (2008) mentioned that
the desired variety of developer and changes in developers desire may cause delay in construction
project. Odeh and Battaineh (2002) mentioned that participation of the developer in construction
processes caused delay in project execution.
Contractor: Ogunlana and Promkuntong (1996) emphasized that contractors have three main
problems in a construction project. Problems related to surroundings of construction industry is a
problem of practice deficiency (Bramble and Callahan, 1987), construction machinery, facilities,
construction materials deficiency (Okpala and Aniekwu, 1988) and communication problem. For
contract, developer or consultant, the problem is related inaccurate information about a project and
varying order by developer. Beside that, the developer and consultant may also fail in their
responsibility. The third problem is the contractors problem. This is agreed by Al-Khalil and Al-Ghafly
(1999) when they said that cash flow and monetary was a delay factors in construction project at Saudi
Arabia especially for medium and big projects. This situation is caused by contractor not proficient in
handling monetary issues (Barrie, 1992) and their lateness in receiving progress payment from the
developer. Other problems caused by contractor are lateness to construction site, project management
weakness (plan, control and manage) (Bramble and Callahan, 1987; Mansfield et al., 1994; Ogunlana
and Promkuntong, 1996), failure to start the work as scheduled, problem with sub-contractor,
professional deficiency or construction technology and deficient working experience. This scenario
makes a situation very difficult and can lead to eventual abandonment of projects.
Consultant: The delay factors caused by consultant are delay in making decisions about construction
issues, delay in confirmation of works, design problem and weakness in giving instructions.
Worker: The delay factors caused by blue collar worker i.e. proletarian, are usually arise because they
lack discipline and skilled in construction works, do not follow leaders instruction and lax attitude of the
worker. Other factors which may force a project to stop include insufficient resources, dispute and
natural disaster. Projects could also be abandoned due to lack of adequate resources. For instance, a
nation with monolitic economy like Nigeria could abandon a project if the price of oil falls at the internal
market. The pace of any gigantic project development in the country largely depends on the revenue
generated by the oil sector. Because the nations economy is tied to oil, whatever happens to oil in the
international market will have an impact on the completion of a project embarked upon by the
government. Property could also be abandoned by government, corporate body or individuals due to
dispute. At times, there may be litigation on an ongoing project or a completed one. Such a project
could be abandoned unless and until the dispute is finally settled. Land dispute is a major cause of
property abandonment. When land speculators sell land illegally, buyers of such may be told to vacate
the land while the project on the land is abandoned. Natural disaster could also lead to property
abandonment. There are instances where residents in an area which is prone to disaster that
endangers human life and properties were advised to vacate the area. If the majority of the reasons
discussed above are checked, the problem of project abandonment will reduce tremendously. From the
foregoing, many factors can cause abandonment in construction projects. The prominent ones are time,
cost, weather, construction material, developers, contractors, consultants and blue collar workers.
Other factors also include insufficient resources, dispute, and natural disaster.

EFFECTS OF ABANDONED CONSTRUCTION PROJECT

Abandoned construction project have negative effects on the developer, contractor, blue collar workers,
the government and surrounding of the housing area (Sani, 2008).
Developer: The effect of an abandoned construction project on the developer is the objectives of the
project is not realized, they cant sell or occupy the project in time. The developer loses money and
wasted his time and other resources. The developer may become bankrupt if the borrowed money is
not repaid. His reputation is also at stake if he terminates the contract.
Contractor: Bramble and Callahan (1987) mentioned that delay in project execution may lead to
eventual termination of the contract. So, contractor will lose the project and this situation gives a bad
reputation to the contractor because he may fail in his obligation and responsibilities. So, the contractor
will endure increase in tools/equipment rent, increase in maintenance cost, transportation,

administration, clerical and others rental. Contractor must endure the claim from monetary institution,
increasing prices of construction materials, workers salary and wages, manage expenditure on site
office, overtime claims and other costs.
Workers: The abandoned construction projects also have negative effects on labourers and artisans
like bricklayers, carpenters, welders etc in that they lose income and work. So, they must find another
work to earn income.
The Government: The local and state government has expended some money to provide services
such as access roads, electricity, water and security on the sites with the area. It is expected that such
monies are to be recovered through various forms of taxes levied on owners/occupiers of the properties
when completed. If the project is not completed such taxes cannot be imposed and thus resulting in
loss of expected revenue which might have been included in the state budget.
Surrounding of Housing Area: The effects of abandoned construction project to the surrounding
houses include defectiveness of aesthetic view to a housing area, breeding and spread diseases and
become criminal den. This situation exposes the occupiers of the houses nearby to unsafe and
comfortable living condition. This situation makes such nearby properties difficult to let or sell because
people will prefer other areas the guarantee safety and comfortable living. This is causes the market
price of properties in that area to be lower than similar properties elsewhere.
THE STUDY AREA
The creation of states in 1967 and 1976 brought about sudden rural-urban migration leading to
accommodation problems in the newly created state capitals throughout the federation (Ilorin inclusive).
The pace of residential property development could not keep pace with accommodation demand and
this resulted in sky-rocketed rents on the available houses. The government introduced various policies
and programmes in attempt to bring down the rent and to increase housing supply to meet demand
especially for the middle and low income class. The Rent Control Edict was introduced but this did not
achieve the desired result. Then the Low Income Housing Programme was introduced whereby the
federal government acquired plots of land throughout the federation in 1979 to build low cost housing
estates for the low income groups in local government headquarters and state capitals throughout
Nigeria. By this policy, the federal government acquired 162.92 hectares of land at Kulende, Ilorin to
build low income housing units of mixed types out of which 250 units were initially completed (phase 1)
for low income group. Phase II was later surveyed, serviced with roads and electricity, and allocated to
private developers while phase III at various levels of construction were retained and later sold to the
public. Till today, most of the houses at various levels of construction are not sold yet probably due to
the cost of demolition, reconstruction, etc which may repel buyers. In addition, some of the sold plots
were developed by various private allottees and abandoned at various stages. These buildings now
constitute nuisance to the neighbouring houses and facilities. The abandoned projects scattered
throughout the estate are countless in phase III, and today pose danger as they stand. Majority
standing at roof level, some at window level and some at DPC level for not less than 25 years. Their
condition is very weak and at risk of collapse at any time as they carry extensive (vertical and lateral)
cracks. They also harbour dangerous animals while most of them are overgrown with trees and
grasses.

RESEARCH METHODOLOGY
The population for the study is the occupiers (landlords or tenants) of completed properties in Kulende
estate and the managers in charge of the estate. A sample of 60 occupied properties was selected by
simple random sampling method for questionnaire administration. The officers of Kwara State
Investment and Property Development Company in charge of allocation and management of houses in
the estate were also interviewed. Secondary data were sourced from relevant textbooks, conference
and journal articles and internet sources. The data collected were analysed by frequency tables and
percentages for simplicity and clear understanding.

Effects of Abandoned Construction Projects on the Surroundings

APPENDIX
Table 1: Effects of Abandoned Construction Project
Research Aspect
Effects
Surroundings/project site

Smell at project area

Social problems

Spread of diseases

Dangerous animals

Fear of sudden collapse

Difficult to

Frequency

Percentage

Defect the beauty

60

100.00

Bushy

56

93.33

No smell

47

78.33

Bad smell

13

21.67

Stealing cases

60

100.00

Adolescent hang out place

51

85.00

Dating place

44

73.33

Robbery problem

60

100.00

Drug addict place

58

96.67

Mosquito breed problem

47

78.33

Diarrhoea problem

13.33

Other diseases

No diseases

33

55

Reptiles like snakes, etc

52

86.67

Mammals like Lion, etc

Insects: flies, mosquitoes

53

88.33

Others

44

73.33

None

16

26.67

Yes

49

81.67

No

11

18.33

Purchase

23

38.33

Sell

33

55.00

Let

18

30.00

SOURCE: Field Survey, 2011.

The identified effects of abandoned construction project on the houses nearby which were examined
and analysed, are presented in this section. The factors are grouped under seven research aspects viz:
effect on outlook of the housing area; odour (smell) at a project area; social problem; spread of
diseases; sale, purchase and rental difficulty of houses; presence of dangerous animals and risk of
sudden collapse. Table 1 (in the appendix) shows that all (100%) respondents observed that
abandoned construction projects impair the beauty of the housing area while another 56 (93%)

complained of bushy abandoned sites. The surroundings of the project become refuse disposal point
for 13 (22%) respondents. This situation creates unattractive view to a nearest housing environment.
However, 47 (78%) respondents had no bad smell problem in the housing area.Abandoned sites
constitute major social problems to the occupiers of the housing estate. All 60 respondents (100%)
experienced stolen and robbery cases directly or indirectly, 51 (85%) reported that abandoned project
sites become hang out place for adolescents, 44 (73%) reported a problem of dating place, while 58
(97%) stated drug addict place. 47 (78%) respondents observed there is problem of mosquito breeding,
33 (55%) respondents said there are no problem of diseases spreading in their housing area while only
8 (13%) respondents stated that there are diseases like diarrhoea problem. Problems of dangerous
animals present in the abandoned project sites were also reported. 52 (87%) reported the presence of
reptiles like snakes; 53 (88%) reported insects like flies, mosquitoes; and 44 (73%) reported that there
are some other dangerous animals. However, nobody reported the presence dangerous mammals like
lion.The fear of sudden collapse of abandoned structures is another problem reported by 49 (82%)
while only 11 (18%) expressed no fear of the risk of sudden collapse. Another problem discovered is
with marketability of the projects. 33 (55%) reported that it is difficult to sell, 18 (30%) reported that it is
difficult to let while 23 (38%) stated that it is difficult to purchase such abandoned properties. These
views were also corroborated by the officers of Kwara State Investment and Property Development
Company.

Analysis of the Factors that Caused Abandonment

Table 2: Causes of Project Abandonment

Research Factors
Options

Frequency

Percentage

Cost

Yes

54

90.00

No

10.00

Yes

58

96.67

No

3.33

Yes

8.33

No

55

91.67

Yes

49

81.67

No

11

18.33

Yes

36

60.00

No

24

40.00

Yes

36.67

No

53

63.33

Yes

8.33

No

55

91.67

Yes

19

31.67

No

41

68.33

Construction materials

Whether

Contractor

Developer

Consultant

Labourers

Time

SOURCE: Field Survey, 2011.

Eight non-mutually exclusive factors were examined under the causes of abandoned construction
projects. The factors are time, cost, construction material, weather, developer, contractor, consultant
and blue collar worker. The respondents were required to select a factor which they perceived to be
responsible for the abandonment of the projects near their sites. Analysis of the result is presented in
Table 2 (in the appendix).
Eight factors were investigated under the causes of abandonment of projects. The analysis shows that
54 (90%) respondents agreed that cost is responsible for the abandonment of construction projects
while only 6 (10%) respondents did not agree. 58 (97%) respondents agreed that construction materials
deficiency was the cause for terminating projects while only 2 (3%) respondents did not agree with this.
Only 5 (8%) respondents indicated that whether was the cause of abandonment while a substantial 55
(92%) respondents did not agree. 49 (82%) respondents stated that project abandonment was caused
by contractors while only 11 (18%) respondents did not agree. 36 (60%) respondents stated that
developers caused the abandonment while 24 (40%) respondents did not agree with this. 22 (37%)
respondents said consultants caused the abandonment while 38 (63%) respondents did not agree with
this statement. Only 5 (8%) stated that blue collar workers caused the abandonment while the majority
55 (92%) respondents did not agree. Only 19 (32%) respondents observed that time factors caused the
abandonment while the majority 41 (68%) respondents said no to this statement.

CONCLUDING REMARKS
From the discussions above, the main causes of project abandonment are revealed. They are costs
associated with construction, building materials, contractors and developers while whether, blue collar
workers, time and consultants are of little relevance to project abandonment. The study also revealed
that the main effects of project abandonment on the immediate environment are unattractive view,
bushy surrounding, stealing and robbery cases, adolescent hang out and dating places, mosquito
breeding problems, difficult marketability, hiding places for dangerous animals like snakes and insects
and risk of sudden collapse of dilapidated walls.
Abandonment of construction project is not good for the economy as it results in waste of resources.
The negative effects on the occupants of the nearby buildings are hydra-headed. So, urgent steps must
be taken to reduce or stop the practice of project abandonment. One of the greatest problems militating
against property development which also aid project abandonment is high cost of building materials and
labour. It is therefore suggested that the federal and state governments should encourage local
industries to produce building materials at reduced cost. If building materials and other components are
produced locally, the cost will reduce and the problem of property abandonment will also reduce. There
are numerous instances where people start some projects and abandon them halfway because of cost
of building materials. Therefore if government can take bold step in ensuring that prices of materials
come down, it will assist the property sector in no small measure.
The developers should ensure that their projects are both feasible and viable before embarking on
construction. Where the project could not be financed from equity savings, credit sources must be
arranged perfectly prior to construction. By this finance problems will be solved. The contractors and
consultants should act more carefully and honest with their clients. They should endeavour to complete
projects within time frame of the contracts to avoid cost and time overrun. It is also suggested here that
the government should encourage the developer by granting tax concessions on developments,
provision of credit facilities, security and infrastructures on site.

REFERENCES
1. Abd. Rahman, H. et al., (2006). Delay mitigation in the Malaysian construction industry. Journal of Construction
Engineering and Management. 125 - 132.
2. Al-Khalil, M. I. & Al-Ghafly, M. A. (1999). Delay in public utility projects in Saudi Arabia. International Journal of
Project Management. 101 - 106.

3. Arditi, D., Akan, G. T. & Gurdamar, S. (1985). Reasons of delays in public projects in Turkey. Journal of
Construction. ASCE, 45 - 50.
4. Barrie, D. S. (1992). Professional construction management. McGraw-Hill, Singapore.
5. Bramble, B. B. & Callahan, M.T. (1987). Construction delay claims. John Wiley and Sons, Inc., USA.
6. Chan, D. W. M. & Kumaraswamy, M. M. (2002). Compressing construction durations: lessons learned from Hong
Kong building projects. International Journal of Project Management. 23-25.
7. Dlakwa, M.M. & Culpin, F. M. (1990). Reasons for overrun in public sector construction projects in Nigeria.
International Journal of Project Management. 237 - 241.
8. Evans, M. E. (2004). Time Related Claims: The Basics. http://www.ohioconstructionlaw.com
Ibrahim, T. A. (2009): Causes and Effects of Construction Projects Abandonment in Ilorin
Metropolis; the second national conference on inter-disciplinary sciences and technology; IBAS;
Kwara State Polytechnic, Ilorin; Wednesday 29th to Friday 31st July.
9. Manavazhi, M. R. & Adhikari, D.K. (2002). Material and equipment procurement delays in highway projects in
Nepal. International Journal of Project Management.627 - 632.
10. Mansfield, N. R., Ugwu, O. O. & Doran, T. (1994). Causes of delays and cost overrun in Nigerian construction
projects. International Journal of Project Management. 254 - 260.
Odeh, A. M. & Battaineh, H. T. (2002). Causes of construction delay: traditional contracts.
International Journal of Project Management. 67 - 72.
11. Ogunlana, S. O. & Promkuntong, K. (1996). Construction delay in a fast-growing economy: comparing Thailand
with other economies. International Journal of Project Management. 37-43.
12. Okpala, D. C. & Aniekwu, A. A. (1988). Causes of high costs of construction in Nigeria. Journal Construction
Engineering and Management. ASCE. 233 - 244.
13. Sani A. (2008). Abandoned construction project at Kulim, Kedah. The International Conference on Social
Sciences and Humanities. Universiti Sains Malaysia, 18-20 June.
14. Syed, M. A., Salman, A., Castillo, M. & Kappagantula, P. (2002). Construction Delays In Florida: An Empirical
Study. http://www.eng.fiu.edu/cm/pdf/Publications/Delays%20Project.pdf
15. Woudhuysen, J. & Abley, I. (2004). Why is construction so backward?. West Sussex, UK: Wiley-Academy.