Scholarly Journal of Arts & Humanities | Published by: Dama Academic Scholarly & Scientific Research Society

SJAH Vol. 1, Issue 7, Page: 111-123,

June 2019, ISSN: 2676-2803
Assessment of Causes, Effects and Solutions to
Impact Factor (SJIF): 9.305
Journal DOI: 10.15373/22501991
Abandoned Building Projects in Ghana
International Peer Reviewed & Prince Elisha Nsiah-Asamoah
Refereed Journal with Indexed Journal Abstract
Platforms In Ghana today, the landscape is littered with abandoned building projects.
Therefore, the research work focuses critically into the causes and effects of
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abandoned building projects which have littered the Ghanan landscape. Every
email: editor@[Link]
Download from Journal site nation aspiring to attain development must utilize its resources effectively; develop
[Link] its industrial base, energy sectors among other things (United Nation, 2006).
Unfortunately, Ghana has suffered a set-back in following these principles to
Author(s) development. Every year, government announces a huge amount of money to be
Prince Elisha Nsiah-Asamoah spent on capital projects, only for all to be put to waste as a result of corruption
School of finance & Financial Mgt. (e.g. embezzlement), leaving the projects abandoned. Also, both the public and the
Business University of Costa Rica private sectors experience the abandonment of building projects which makes it
Email: princeelishansiah@[Link] pronounced, in the harsh economic climate, in developing countries like Ghana.
As a result of the involvement of the private sector, this has threatened job
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opportunities, rendering our economic development effort to suffer continuous set-
Prince Elisha Nsiah-Asamoah
back. Solving this problem, might really be of help and having a gross contribution
School of finance & Financial Mgt.
Business University of Costa Rica to the economic development.
Email: princeelishansiah@[Link] Keywords: Abandoned Building Projects, Project Failure, Project Completion

1.0 INTRODUCTION
The demand for and provision of housing is as old as the history of man. Due to the harsh weather condition,
wild animals, need for security and privacy, it became necessary for man to provide shelter for himself and members
of his family. Though, the type of houses built in those historical times, served its primary purpose of shelter but
lacked the modern amenities, as a result of underdevelopment in the society (i.e. society with no industry).
Construction processes were limited to the locally available materials, labour and technology. However, with
civilization and technological advancement, man was exposed to a new life (i.e. access to modern amenities).
Therefore, in recent times, there are various types of houses as a result of the numerous types of designs by the
architects and the houses not only serve the primary purpose of shelter alone, but also have the modern amenities.
There are different types of materials, plants and equipments produced to suit the modern constructions. There are
also professionals like Architects, Builders, Quantity surveyors, Engineers, among others, trained in their respective
field for proper execution of projects.
Also, we have the skilled and unskilled labours, who contribute grossly towards the execution of a project.
All these are as a result of civilization and technological advancement which have impacted the construction industry.
Hence, the construction industry is regarded as one of the largest industries in the world, as it contains the highest
number of people, ranging from the clients, professionals, skilled labours, unskilled labours and suppliers of different
building materials etc. Also, we have the skilled and unskilled labours, who contribute grossly towards the execution
of a project. All these are as a result of civilization and technological advancement which have impacted the
construction industry. Hence, the construction industry is regarded as one of the largest industries in the world, as it
contains the highest number of people, ranging from the clients, professionals, skilled labours, unskilled labours and
suppliers of different building materials etc.
Despite all these, abandoned building projects still litters our society, causing problems like security threats,
promotion of illegal activities, unemployment, waste of human resources, poor landscaping, etc. Therefore, I will start
by defining the abandonment of building project, as an act of giving up or stopping a building project with no intention
of returning to it. Nobody initiates a building project for abandonment, because an uncompleted building project is
always a source of sorrow to its owner, an unfulfilled hope and aspiration - a failure to achieve a purpose (Olateju,
1997). Unfortunately, in Ghana, when projects are abandoned there are no conscious efforts to ensure completion,
instead, new projects are embarked upon, putting money, materials, time and effort to waste, and also, causing problem
to the nation as whole. In Ghana, the situation of abandoned projects is further compounded by the continuous award
of new contracts which eventually suffers the same fate (Frisch, 1996). We must really lay emphasis on the issue of

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abandonment of building projects, because, it creates a lot of problems for everyone, both within and outside the
construction industry and even on the economy as a whole. Likewise, the resources required to execute the projects,
which include: labour, equipment, time, material and money, are wasted and the accommodation problem remains
unsolved. Therefore, this dissertation attempts to examine the causes, effects and possible solutions to abandonment
of building projects in the Ghana.

2.0 LITERATURE REVIEW

According to Olapade & Anthony (2012), in Ghana today, the landscape is littered with abandoned buildings
projects. They further stated that, abandoned building projects can be described as the project that has started at an
earlier date, but the construction work stopped for one reason or the other. This phenomenon is not limited to building
projects, also observable in; roads, industrial structures, bridges, factories, dams, electricity, and communication
projects. According to Akindoyeni (1988), it is difficult to believe that projects conceived to meet some important
needs could be abandoned without remorse in spite of the huge amount voted into it, depicting a worrisome practice
over the last decades of Ghana’s history. Akindoyeni (1988), continued by stating that, under normal conditions,
neither the client nor the contractor would ever admit to the intentional suspension of construction project. He went
further to state the aim and objective of construction development which is to satisfy definitive needs, either for
accommodation, some physical facilities (water, energy etc.), transportation, communication or any other purpose
essential to life and comfort of man. Studies by Kolawole (2006) have shown that a good number of building project
initiated with good intentions are abandoned at different stages of the design and construction process. These form the
antithesis of the development concept.

2.1 Parties Involved in Project Execution

In execution of any project, there are parties involved in one activity or the other, playing their roles from the
inception stage to the completion stage and the parties involved include; clients, architects, builders, quantity
surveyors, land surveyors, engineers, etc. According to Onwusonye (2002), who classified the parties into two groups,
namely; Clients and the professional team.

2.1.1 Clients
A client is a person who uses the services or advice of a professional person or an organization (Oxford,
2005). Client; whether public or private, as the one who owns and finances the projects from own resources or from
other sources of external financing (Onwusonye, 2002). Also, we should not forget that private clients can be an
individual or partnership and most of their projects are for their own use. Likewise, for the public clients, this ranges
from ministries, agencies of the federal government, down through states and local government entities, to a
multiplicity of boards, commissions and authorities (Clough, 1982).

2.1.2 The Professional Team

A professional is a person with an approved standard of professional practice, high level of education and
orientation. According to Wikipedia (2014), a professional is a member of a profession. The team also describes the
standards of education and training that prepare members of the profession with the particular knowledge and skills
necessary to perform the role of that profession. In addition, most professionals are subject to strict codes of conduct
enshrining rigorous ethical and moral obligations. Professional standards of practice and ethics for a particular field
are typically agreed upon and maintained through widely recognized professional associations. The architects,
builders, engineers, quantity surveyors, land surveyors, etc. make up the professional team and due to the nature of
the work, everyone has a major role to play in the construction industry, any omission in the efficient execution of
project may lead to delay or abandonment of building projects.

2.2 Types of Contract in Construction Projects

In construction, there is also a legal backing guiding both the client and the professional team, which brought
about the contract types in construction projects. Contract is an official written agreement. Contract can also be defined
as a legally binding agreement made between two or more parties, by which rights are acquired by one or more acts
or forbearances on the part of the other(s). It can also be defined as an agreement between two or more parties which
is intended to have legal consequences. The agreement been referred to in the definitions means a meeting of minds,
that is, the parties agreed together about the same thing. The definition also emphasized that, the parties to the contract
must intend that their agreement must be enforceable and binding the parties. Although, not every agreement is a
contract but every contract is an agreement. There are various types of contracts commonly in use, which include;

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Schedule of Rates Contracts: This is one under which the amount that is payable to the contractor is calculated
by applying an agreed schedule of rates to the quantity of work that is actually performed.
Lump Sum Contracts: This is where a specific sum of money is stated in the contract as payment for building
works. It is also called A FIXED FEE.
Cost Reimbursement: This can also be called PRIME COST CONTRACT. This is a type of contracts which
provide for payment of allowable incurred costs, to the extent prescribed in the contract. According to Nwosu (2003),
this is where the contractor is reimbursed, the total cost incurred plus allowance or fees for his services to cover
overheads and profits. In choosing a suitable type of contract, the nature and size of the project must be considered.

2.3 Causes of Abandoned Building Projects

There is a large number of studies which discussed the causes and effects of abandoned building projects.
The causes of abandoned construction projects identified from existing literatures can be broadly grouped into five
categories, that is .1) mismanagement, 2.) unfavourable government policies, 3.) Inefficient public delivery system,
4.) unfavourable economic conditions and 5.) Financial problems. According to Ewa (2005), who identified that many
projects are conceived without a well-defined objective in mind, poor costing, no specific start and end points, poor
documentation of contract, lack of performance criteria and properly developed monitoring and evaluation template
by supervising organizations, fluctuation in government policies, lack of planning, project mismatch, over-ambitious
projects, political influence in establishing projects, disbursement constraints, failure for successive regimes to issue
appropriate white papers on failed contracts and granting of injunctions under exparte motions by Ghanan courts.
Akuta (2011) stated that, policy continuation is something lacking and contributing to project abandonment
in Ghana. Once a new government takes over power, they usually abandon previous government policies or
programmes. In The Abandonment of Building Projects in Ghana- A Review of Causes and Solutions by Olapade
Olalusi and Anthony Otunola (2012), making reference to Oyelola (2010) and Makalah (2008), they gave reasons for
failed construction projects, which are: incorrect estimation; lack of available skilled personnel; inadequate planning;
poor risk management; misunderstanding of work requirement; corruption and communication gap among the
personnel. According to Ugofunle (2007), the factors leading to abandoned projects are: Economic factors, Human
factors and Natural factors. I will also include the Social factors, which makes it four (4) factors leading to the causes
of abandoned projects.

2.3.1 Economic Factors

The economic factors can be said to be one of the factors causing the abandonment of building project,
considering Ghana as a developing country, whereby the economic factors have contributed grossly to the subject
matter. In recent times, a large number of studies have shown that inflation has been one of the major economic factors
affecting the abandonment of building project. Also, there are other factors like: Lack of policy continuation,
Corruption and Inadequate or lack of budgetary allocations. Inflation is an increase in price of goods and services.
Therefore, increase in goods and services can cause abandonment of building project, since, it will affect the overall
estimated cost of the project, threatening the client’s finances. Besides, inflation in Ghana is an unforeseen occurrence
and there are factors that contribute to the inflation, factors include: Massive importation of goods and services,
Imbalance in demand and supply, and Foreign exchange fluctuation.
Lack of policy continuation; this simply means the inability of a government to continue a legacy been laid by
the previous government. It is observed that, for every change in government, there is bound to be changes in one
form or the other. Though, it is said that there is continuity in government but probably Ghana is an exception. Looking
at the changes over the years by different governments, as said earlier, according to Akuta (2011), we will see that the
lack of policy continuation has really contributed to the abandoned projects.
Likewise, corruption and the inadequate or lack of budgetary allocations are also major factors contributing to
the subject matter, because money to be used for projects have been embezzled or been misused as a result of the level
of corruption in the country and lack of true leaders. This has also led to the inadequate or lack of budgetary allocations,
forgetting the fact that growth in the construction industry indicates the economic condition of a country because
construction industry is one of the largest industries in the world.

2.3.2 Human Factors

It was observed that in the abandonment of building projects, humans also have hand in it, probably due to
mistakes. Though, there is no perfection where there are humans, therefore, mistake is inevitable and the construction
industry is not an exception. The human factors will be looked at on the basis of the act of the participants in the
industry, which are broadly classified under three (3) groups, namely:

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 Clients.
 Contractors.
 Consultants.

2.4 Causes of Abandoned Building Project by the Client

The role of the client must be analyzed to know how the abandonment of a project can be caused by the
client. Knowing full well that, all participants in the construction industry have a role to play. Fund is an important
factor that provides both the private and public sectors the required provision to embark on project; therefore, adequate
financial provision must be made before any project could be embarked upon. Any lapse in this regard might lead to
total abandonment of the project. Therefore, it is the role of the client to provide sufficient fund for the project.
According to Barwell (1987), clients do not consider the availability of funds before the award of contract which in
turn lead to project abandonment knowingly or unknowingly.
Furthermore, design improvement and modification by the client can cause project suspension or
abandonment, that is, after which the project has been embarked upon, the client decided to make some vital changes
or modifications, which can cause delay or abandonment of the project. Ugofunle (2007) stated that, cases where there
is a direct contract between the contractor or the sub-contractor and the client, the Architects’ authority is weakened
and his instruction might not be treated the way it should be and this may affect the successful completion of the
project. Also, the death of the client is also a major cause of the project abandonment. Akindoyeni (1988) stated that,
cases of death, whereby the client (i.e. an individual) dies intestate, and the project may be suspended or completely
abandoned.

2.5 Causes of Abandoned Building Project by the Contractor

A contractor is a person or firm who undertakes to complete a building project in accordance with the contract
document on behalf of the employer or the client (Nwosu, 2003). Despite the contractor’s professional skills, he is
also a party to project abandonment. Ugofunle (2007), any failure by the contractor to observe his full professional
responsibility may lead to suspension or delay of projects. There are factors that can cause abandonment of projects
by the contractor. According to Fugar and Agyakwah-Baah (2010), the availability of materials on site at the right
time and in the right quantities is directly related to the ability of the client to honour certificates as when due. Liquidity
problems make it difficult for contractors to procure materials. Again, materials suppliers are reluctant to supply
materials on credit, because contractors will normally pay suppliers only when they themselves are paid. These can
cause delay of the projects.
Fugar and Agyakwah-Baah (2010), also continued by saying, the extensive use of major equipment is rare
on many projects, where equipment is required; the contractors have the option to hire. In the rare cases where some
plants and equipments are owned by a contractor, breakdown is a major delay factor, perhaps, owing to old age or
lack of planned maintenance. I observed that plant and equipment procurement is an important factor, because in an
extreme case, where a project requires a special plant and it seems impossible or there is a delay in procurement, this
will lead to the delay and at times, abandonment of the project. Therefore, it is advised that the contractor should make
or prepare a good detailed plant and material schedule.
According to Seeley (1984), contractors become insolvent as a result of the following: Under or overvaluation
of work, Bad estimating and planning, Accumulation of undecided claims, and Delay in payment to contractors arising
from non-settlement of final accounts. Incentive giving to employees, such as good holiday pay, long service
allowance, extra pay for shift work, uncomfortable, dirty and unhealthy conditions, good sick pay, free lunch, free
education for managers’ children, low interest loan, advice on personal affairs, death benefits to dependants etc. are
basically categorized into financial and non-financial incentives and any contractor that fails to provide reasonable
level of motivation is automatically exposing the workers to exhibit nonchalant attitude to work, which may drag
down the progress of work and ultimately lead to abandonment of the projects (Nwume, 1989). Ugofunle (2007), other
factors that can cause abandonment of projects by a contractor is in a situation where such contractor absconds and
lack of man or machine capacity to perform.

2.6 Causes of Abandoned Building Project by the Consultants

This is classified into two (2) categories, namely; The Architects and the Engineers. The above professionals
can cause the abandonment of building projects. Each of these professionals will be examined.

2.6.1 Abandonment of Projects Caused by Architects

In construction industry, the architect is regarded as the leader of a building team and he is usually the first
to be contacted. He has some obligations, in which failure to do them can threaten a project. Part of the architect’s

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obligations is to design according to the briefing of the client and also know the financial capacity of the client in
order to guide his design, so that it may not be too expensive or unaffordable for the client. Failure in this regard might
lead to project suspension or ultimately lead to abandonment.
Also, complexity of the drawing and availability of building materials must be into consideration by the
architect, because if the drawing is too complex, build-ability becomes a major problem and there are possibilities
where special plants and equipments will be required, delay in procurement of the plants and equipments can also
affect the successful completion of the projects. In the specification of the architects, availability of building materials
must be considered, because unavailable or scarce building materials can cause delay of the projects and affect the
progress of work. In the submission of Onwusonye (2002), the architect must avoid ambiguity as much as possible.
Such architectural drawings must take into consideration factors like build-ability, maintainability, for these factors,
if ignored during the drawing stage by the architect, may adversely affect the successful completion of projects.

2.6.2 Abandonment of Projects Caused by Engineers

In building projects, the structural engineer is one of the most important people among the consultants and
failure in their duty may lead to suspension of the projects. A structural engineer provides the structural drawings and
details for the project and lateness in the submission of the drawing can affect the successful completion of the projects.
Likewise, proper supervision of the structural work must be adequately carried out, because this can also form the
basis of project delay or suspension as a result of error committed by the contractor, when there is lack of supervision.
Therefore, late submission of structural drawings and lack of supervision of structural work must be checked to avoid
project delay or suspension and which can eventually lead to abandonment of the projects.

2.7 Natural Factors

This is also a factor we cannot neglect irrespective of the economic factors or human factors; they can render a
site abandoned. Again, this is a factor we do not plan for; they come unexpectedly and disrupt the purpose of work.
Considering Ghana, whereby the rate of natural disaster is low, unlike other countries where they witness tsunami,
volcano, earthquake, typhoon, etc. In Ghana, flood is a major disaster, which cannot be easily predicted or detected
by any site investigation or feasibility studies; it is disastrous and also destroys activities on site, which may lead to
suspension and at times total abandonment of the projects. Also considering the soil condition and topography which
are the geographical factors of abandoned building projects, the fact that they are unpredictable forms the basis of
their gross contribution to the abandonment of building projects. Popoola(1981), cited in Ugofunle (2007) point out
that “accident in the course of work are major area of concern. Factors considered under these are loss or damage, due
to fire, lighten, explosion, busting or overflowing of water banks, sudden collapse of parts of structures may lead to
eventual delay or suspension of construction work.

2.7.1 Social Factors

Social factors include; project enforcement and improper need analysis. Project enforcement; this is basically
on the part of the government, whereby the community interest is not their concern and for a project to be successfully
executed, the community or community members must have initiated it. Imagine, constructing a recreational centre in
a rural environment or community, whereby good health care services and learning centre would have been the best.
You will agree with me that, such a project is likely to be abandoned. Hanactor (2010) quoted in Hanachor (2012)
stated that “development project undertaken in the spirit of imposing our will on others and getting them see the folly
of their way and the wisdom of our counsel invariably meet with resistance”. This account for the failure or
abandonment of most federal and state projects in Ghana.
Improper need analysis; every project is meant to meet a particular need, either for residential purpose or
business purpose, but in a situation where there is no proper need analysis, the project is likely to be abandoned.
According to Hanachor (2012), any choice of project that did not represent the need of the majority of the members
of the community is already heading for abandonment. In the submission of Hanachor (2012), lack of social analysis
of a project; development projects which ignores the traditional values, and social organization of the intended
beneficiaries, has a low success prospect and could be abandoned. No matter how important and most desired a project
may be, to the members of a community, if the project goes against the cultural practices of the community, the project
could be abandoned. This shows that social analysis of a project must be considered to avoid abandonment.

2.8 Effects of Abandoned Building Projects

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When a project is abandoned, the effect is being felt in one way or the other; effect on the clients, contractors,
consultants and the economy.

2.8.1 Effects of Abandoned Building Projects on Clients

Timely completion of projects is one goal of the client. Furthermore, abandonment of building projects has
a lot of effects on the client, not forgetting the fact that “the longer the project duration, the more the cost incurred”.
Therefore, time is of essence, if the project is abandoned or not completed on time, the client is bound to incur more
cost on high maintenance cost due to dilapidation, increase in interest rate on the money borrowed, increase in total
cost of the project due to inflation and also loss of return on investment.

2.8.2 Effects of Abandoned Building Projects on Contractors

Failure in the timely completion of projects may lead to abandonment and also have an effect on the
contractor. There will be loss of money, that is, paying a certain amount of money to the client which may likely be
equivalent to the amount ought to be gained by the client, and it may be in form of liquidated damage. Also, loss of
materials, as a result of wastage; loss of money, if plants and equipment’s were hired and if owned by the contractor,
there will be loss of maintenance cost on plants and equipment’s. The abandonment of projects may also ruin or tarnish
the contractor’s reputation and his company.

2.8.3 Effects of Abandoned Building Projects on Consultants

The consultants are professionals and one of their objectives is to make profits from the services rendered.
The abandonment of projects affects their profits, mostly in post-contract fee. Again, they suffer loss of time and
energy in preparing necessary documents and drawings. Also, their reputations and those of their companies can be
tarnished.

2.8.4 Effects of Abandoned Building Projects on the Economy and Society

It is a fact that any choice of project must be able to meet human need. Therefore, the abandonment of a
project, does not only have effect on clients, contractors and consultants, it also has a great effect on the economy and
society. These effects include: Threatening of the society or community security, that is, an abandoned project is
bound to habour hoodlums, which can be a menace to the society; Poor landscaping, that is, an abandoned project
makes the landscaping of the environment look unorganized and seems to be a sign of underdevelopment and
Unemployment; the abandonment of projects can lead to unemployment, considering the fact that the construction
industry is one of the largest industries with highest number of employment or work force and when a project is
abandoned, unemployment becomes a threat. In the submission of Osemena (1987), listed the effects of abandoned
projects on the national economy are: Waste and under-utilization of human resources; Reduction in employment;
Increase in bankruptcy of firms, companies and incidence of bad debt; Effects on community and neighborhood
aesthetics; Impact on public health and safety; Promotion of illegal activities; Liability as a result of uncompleted
project; Problems arising from high accommodation rate and housing problems; Low turn-up of foreign investors due
to total loss of trust in professional competence of local contractor and Declining property values.

3.0 METHODOLOGY
This chapter describes the methods that will be adopted to gather data relevant to the study. It examines the
sources of data, population of the study, sample size, sampling techniques and the method of data analysis.

3.1 Sample Selection

The population consists of professionals within the construction industry, which includes; the clients,
architects, builders, engineers etc.

3.2 Sample Size

Sample size is the total number of the population that has been selected, having the attributes of the study to
be carried out (Ugofunle, 2007).

3.3 Adopted Sampling Technique

In this project, a total number of thirty (30) questionnaires were administered to relevant professionals in
construction industry and clients within the State, in which twenty-seven (27) were retrieved. A convenient sampling
technique was adopted for the construction firms and clients based in Osun State. This is due to the short distance

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between the researcher and the concentration of the firms and considering the time frame and the state, knowing full
well that there are quite a number of towns in the state. Therefore, three towns were chosen, as said earlier in the
introductory chapter.

3.4 Research Instrument

The major source of data will be primary which will be from questionnaire administration to gather the
required information from the clients and the professionals in the construction industry, so as to fulfill the aim and
objectives. The questionnaire consists of 5% open ended questions and 95% close ended questions. There are three
(3) parts in the questionnaire; part A gives a general particulars of the respondents, part B deals with the assessment
of the factors responsible for the abandoned building projects and part C deals with the effects of abandoned building
projects and likely solutions.

3.5 Data Collection and Analysis

Data as widely defined are raw facts. The raw fact was collected though questionnaire as earlier discussed. The
type of administration adopted was self-administration. There two ways of administrating questionnaire which are
direct contact and mailing. The administration method used was direct contact because it is the most reliable and to
make the research to be realistic. The data will be collated on a scale 1-4 (but scale 1-5 can be used if need be, where
5= Null) and analyzed with Statistical Package for Social Science (SPSS) version 17. Descriptive statistics and
inferential statistical procedures will be adopted, as well as Relative Important Index (RII).

4.0 DATA ANALYSIS

This chapter deals with the data analysis and the result collected from the questionnaire, through the survey
that was carried out in the Ghana

4.1 General Particulars of Respondents

Table 4.1: Years of experience of the respondents
Frequency %
1-5 7 26
6-10 9 33.3
11-15 4 14.8
16-20 4 14.8
21-25 3 11.1
Total 27 100%
SOURCE: Personal field survey (2014)

The data above gave response on the years of experience of the professionals in the construction industry,
showing that 33.3% of the respondents have spent 6-10 years, 26% of the respondents have spent 1-5 years, 14.8% of
the respondents have spent 11-15 years and 16-20 years and 11.1% of the respondents have spent 21-25 years. Hence,
the professionals have gained quite an experience based on the number of years of working.

Table 4.2: Types of company where the professional works

Frequency %
Private Company 14 51.9

Public Company 6 22.2

Partnership 2 7.4
Others (Specify) 5 18.5
Total 27 100%

SOURCE: Personal field survey (2014)

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The analysis above shows that 51.9% of the respondents work in private company, 22.2% work in public
company, 18.5% work as others (civil servants) and 7.4% are into partnership
.
Table 4.3: Number of projects handled
This section is to know the number of projects handled by the respondents, both public and private projects.
The respondents are to tick among 0-20, 20-40, 40-60 and 60-80. Therefore, in the analysis scale 1-5 will be use,
where 5= Null, 4= 60-80, 3= 40-60, 2= 20-40 and 1= 0-20.

5 4 3 2 1 TOTAL

Public Projects - - 3 5 19 27

Private Projects 6 - 6 7 8 27
SOURCE: Personal field survey (2014)

From the table, it is shown that majority of the respondents have handled both public and private projects
which indicates that experience have been gained over the years.

4.2 Characteristics of Projects Sampled

Clients Involvement in the Abandonment of Building Projects: As discussed in previous chapters that clients are
involved in the abandonment of building projects in one way or the other, but one is more involved than the other. As
shown in the table below (table 4.5);
Table 4.4: Clients involve mostly in abandoned building projects

Frequency %
Public Clients 18 66.7

Private Clients 9 33.3

Total 27 100%

SOURCE: Personal field survey (2014)

The table above gave response on client’s involvement in abandoned building projects and 66.7% of the
respondents admitted that the public clients are more involved and 33.3% points to the private clients.

Table 4.5: Types of building projects abandoned

Frequency %
Residential 11 40.7

Commercial 9 33.3
Industrial 7 25.9
Institutional - -
Total 27 100%

SOURCE: Personal field survey (2014)

The response on the types of building projects abandoned is describe thus; out of the 27 respondents, 40.7% are
of the opinion that residential buildings are most abandoned, 33.3% points to commercial buildings and 25.9% points
to industrial buildings.

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 Scholarly Journal of Arts & Humanities | Published by: Dama Academic Scholarly & Scientific Research Society

4.3 Response on the Causes of Abandoned Building Projects

This section is to examine the causes of abandoned building projects. The respondents were asked to rate the
causes based on their level of frequency and impact using the scale; 4: strongly agree, 3: agree, 2: disagree, 1: not sure
for the analysis. The completed and returned questionnaires were analyzed using Percentage and Relative Importance
Index (RII).
R.I.I = (4n4+3n3+2n2+n1)/4N
Where n4 = strongly agree, n3 = agree, n2 = disagree, n1 = not sure and N = number of respondents.
Table 4.6: Causes of Project Abandonment (Using Percentage & R.I.I)
CAUSES 4 % 3 % 2 % 1 % TOTAL RII RK
Inflation 16 59.3 10 37.0 11 40.7 - - 27 1.1 1
Lack of fund 20 74.1 7 25.9 - - - 27 0.94 2
Ambiguity in drawings 7 26.0 17 62.9 3 11.1 - - 27 0.80 3
Bankruptcy/insolvency 11 40.7 11 40.7 4 14.8 1 4.0 27 0.80 3
Indiscriminate award of
8 29.6 13 48.1 5 18.5 1 3.7 27 0.76 5
contract
Clients’ death 10 37.0 8 29.6 6 22.2 3 11.1 27 0.73 6
Design modification 4 14.8 16 59.3 6 22.2 1 3.7 27 0.71 7
Unstable government policies 12 44.4 2 7.4 9 33.3 4 14.8 27 0.70 8
Unavailability of specified
4 14.8 14 51.9 9 33.3 - - 27 0.70 8
materials
Breach of contract 6 22.2 14 51.6 3 11.1 3 11.1 27 0.69 10
Market fluctuation 6 22.2 12 44.4 5 18.5 4 15.0 27 0.69 10
Improper supervision of
7 26.0 8 29.6 9 33.3 3 11.1 27 0.68 12
structural works
Inadequate manpower 2 7.4 11 40.7 14 51.9 - - 27 0.64 13
Architect failure to assess
6 22.2 8 29.6 7 26.0 6 22.2 27 0.63 14
clients’ financial capacity

Technical deficiency 4 14.8 9 33.3 8 29.6 6 22.2 27 0.60 15

Lack of good incentive scheme 3 11.1 8 29.6 9 33.3 7 26.0 27 0.56 16

SOURCE: Personal field survey (2014)

The table above shows the various causes of abandoned building projects, ranging from the most critical to
the least as perceived by the respondents which reveals that all these factors (causes) can adversely terminate the
execution of a project. Inflation is ranked 1st (RII=1.1), which shows that it has a gross effect on projects, followed by
lack of fund (RII=0.94), which is also a clear indication that it is a major contribution to project abandonment. The 3 rd
are ambiguity in drawings and bankruptcy/insolvency (RII=0.80), follow by indiscriminate award of contract is ranked
5th (RII=0.76) while clients’ death is ranked 6th (RII=0.73).
Design modification is flagged 7th (RII=0.71) follow by unstable government policies and unavailability of
specified materials (RII=0.70). Breach of contract and market fluctuation are flagged as 10 th (RII=0.69) follow by
improper supervision of structural works (RII=0.68) while inadequate manpower is ranked 13 th (RII=0.64). The 14th
causes are architect failure to assess clients’ financial capacity (RII=0.63), follow by technical deficiency (RII=0.60)
while lack of good incentive scheme is ranked 16 th (RII=0.56).

Table 4.7: Withdrawal or late honoring of certificates of payment causes project abandonment

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 Scholarly Journal of Arts & Humanities | Published by: Dama Academic Scholarly & Scientific Research Society

Frequency %
Yes 17 63

No 10 37
Total 27 100%

SOURCE: Personal field survey (2014)

The response of the data shows that 63% of the respondents experienced total withdrawal/late honouring of
certificate of payment and 37% did not experience such. This indicates that building projects suffer abandonment due
to late honouring of payment certificates.

Table 4.8: Causes of abandoned projects due to natural factors

Frequency %
Yes 17 63.0

No 5 18.5
Null 5 18.5
Total 27 100%

SOURCE: Personal field survey (2014)

From the analysis above, 63.0% of the respondents admit that natural factors can lead to abandoned projects and
18.5% choose not to admit the fact. Hence, natural factors have a great influence on abandoned projects.

Table 4.9: Restiveness as a cause of project abandonment

Frequency %
Yes 12 44.4

No 10 37.0
Null 5 18.5
Total 27 100%

SOURCE: Personal field survey (2014)

44.4% admit and 37.0% choose not to admit the fact that restiveness can cause project abandonment.

4.4 Response on the Effects of Abandoned Building Projects

This section is to examine the effects of abandoned building projects. The respondents rated the effects based on
their level of frequency and impact using the scale; 4: very high, 3: high, 2: low, 1: very low for the analysis. The
completed and returned questionnaires were analyzed using Percentage and Relative Importance Index (RII).
R.I.I = (4n4+3n3+2n2+n1)/4N
Where n4 = very high, n3 = high, n2 = low, n1 = very low and N = number of respondents.
Table 4.10: Effects of Project Abandonment (Using Percentage & R.I.I)
EFFECTS 4 % 3 % 2 % 1 % TOTAL RII RK
Employment opportunities 20 74.1 5 18.5 2 7.4 - - 27 0.92 1
Project total cost 12 44.4 15 55.6 - - - - 27 0.86 2
Accumulation of interest
11 40.7 11 40.7 5 18.5 - - 27 0.81 3
charges

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 Scholarly Journal of Arts & Humanities | Published by: Dama Academic Scholarly & Scientific Research Society

Increased final cost due to

12 44.4 9 33.3 6 22.2 - - 27 0.81 3
payment of idle time
Illegal activities 9 33.3 9 33.3 7 26.0 2 7.4 27 0.73 5
Dilapidation 4 14.8 14 51.9 9 33.3 - - 27 0.70 6
Attraction of foreign investors 4 14.8 14 51.9 9 33.3 - - 27 0.70 6
Getting of new jobs by
7 26.0 10 37.0 8 29.6 2 7.4 27 0.70 6
contractors
Tying down of useful capital 7 26.0 8 29.6 9 33.3 3 11.1 27 0.68 9
Waste of materials 7 26.0 6 22.2 12 44.4 2 7.4 27 0.67 10
Community aesthetics 4 14.8 14 51.9 4 14.8 5 18.5 27 0.66 11
Return on investment 4 14.8 12 44.4 7 26.0 4 14.8 27 0.65 12

Government revenue 3 11.1 8 29.6 14 51.9 2 7.4 27 0.61 13

Public health safety 5 18.5 6 22.2 9 33.3 7 26.0 17 0.58 14

Firms’ reputation 5 18.5 6 22.2 6 22.2 10 37.0 27 0.56 15

SOURCE: Personal field survey (2014)

Table 4.10 shows the effects of abandonment of building projects as perceived by the respondents. Employment
opportunities is rated the most significant in building projects abandonment (RII=0.92), follow by project total cost
(RII=0.86). The 3rd significant effects are accumulation of interest charges and increased final cost due to payment of
idle time (RII=0.81), follow by illegal activities (RII=0.73) while dilapidation, attraction of foreign investors and
getting of new jobs by contractors are ranked 6 th (RII=0.70). Tying down of useful capital is ranked 9 th (RII=0.68)
follow by waste of materials (RII=0.67) while community aesthetics is ranked 11 th (RII=0.66). Return on investment
is flagged 12th (RII=0.65) follow by government revenue (RII=0.61) while public health safety is ranked 14 th
(RII=0.58). Firms’ reputation is the least significant (RII=0.56).

4.5 SUMMARY OF FINDINGS

This research work was set out to investigate the causes and effects of abandonment of building projects in the
State of Osun and also to seek opinions on possible solutions to reverse the trend using questionnaires. Therefore,
there is need to breakdown and summarize these findings; Most of the respondents have handled quite a number of
projects both public and private and they must have also understood and experienced abandoned building projects
over the years. As shown in table 4.1 and 4.3. Majority of the respondents work within the private owned company,
while few works in other sectors like public and partnership, shown in table 4.2.
It was seen that the respondents have had encounter with both public and private clients, but with more emphasis
laid on public clients, which indicates that they indulge more in abandonment of building projects than the private
clients and this create problem for the society (table 4.4). From table 4.6 and 4.10, it was found that the most occurred
cause of abandonment of building projects are inflation, lack of fund, ambiguity in drawings, bankruptcy/insolvency,
indiscriminate award of contract, clients’ death, design modification, unstable government policies, unavailability of
specified materials, breach of contract, market fluctuation, improper supervision of structural works, inadequate
manpower, architect failure to assess clients’ financial capacity, technical deficiency and lack of good incentive
scheme. It was also discovered that the factors (causes) can have a significant effect on employment opportunities,
project total cost, accumulation of interest charges, increased final cost due to idle time, illegal activities, dilapidation,
attraction of foreign investors, getting of new jobs by contractors, tying down of useful capital, waste of materials,
community aesthetics, return on investment, government revenue, public health safety and firms’ reputation as it leads
to abandonment of building projects.
Total withdrawal/late honouring of payment of certificates is found to hinder the successful completion of work.
Once cash flow is disrupted, work flow will also be affected (table 4.7). Apart from the listed findings, there are other
factors like natural factors, restiveness economic factors, social factors and government policies which can also lead

ISSN: 2676-2803 (Online) | Impact Factor (IF): 9. 305| Journal DOI: 10.15373/22501991 121
 Scholarly Journal of Arts & Humanities | Published by: Dama Academic Scholarly & Scientific Research Society

to project abandonment. Therefore, the survey conducted reveal that the causes and effects of abandonment of building
projects varies, but the renowned factors amongst these causes are lack of fund, design modification, indiscriminate
award of contracts to unqualified persons, breach of contracts, bankruptcy & insolvency, ambiguity in drawings and
unavailability of specified materials. This study attest that abandoned building projects can only be minimized
drastically, if the right measures are put in place.

5.0 CONCLUSION
This study has shown factors which contribute to the causes of abandoned building projects, especially the
various activities of the parties within the construction industry which include withdrawal/late honouring of
certificates of payment, breach of contracts, indiscrimination award of contracts and corruption on the part of the
public clients and also, the failure of the client to make fund available.
Furthermore, the study also reveals the role of consultants in abandoned projects, which include; producing
drawings, assessing client’s financial capacity, specifications and modification. These tends to pose a great task if
relevant safety measures are not put in place and creating problems for the contractors to cope with, which may
eventually lead to project abandonment.
Also, the role of contractors in project abandonment is also reveal, which are lack of proper coordination of
subcontractors and other specialist firms, lack of schedule of plants, equipments and materials, poor management
skills, improper supervision of structural works, technical deficiency and lack of good incentive scheme. All these
must be checked to reduce project abandonment.
In the course of the study, it was discovered that the abandonment of building projects also has effects on
clients, consultants, contractors, the economy and the society at large. Therefore, to reverse the effects proper measures
must be taken by the clients, professionals and the government, in order to improve the society.
In conclusion, the majority of the respondents are of the opinion that there is need to know the client’s
financial capacity before embarking on any project. There is also need for the architects to be on site to monitor the
progress of work and making sure it conforms to plan. Some of the respondents also stated that the parties involved
in the construction industry (i.e. the clients, consultants and contractors) should try and fulfill their agreement to the
last letter, government should ensure accessibility to fund by both public and private developers in all our financial
institutions and cost of building materials should be reduced by government policy.

5.1 Recommendations
The research suggested the various means by which all the causes and effects of abandoned building projects in
the construction industry can come to an end. This includes;
1. Client’s financial capacity should be known before embarking on any project.
2. Architects should ensure proper monitoring of progress of work and making sure it conforms to plan.
3. The parties involved in the construction industry (i.e. the clients, consultants and contractors) should
try and fulfill their agreement to the last letter.
4. Government should ensure accessibility to fund by both public and private developers in all our
financial institutions.
5. Cost of building materials should be reduced by government policy.

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