Assessment Of The Survival Practices Of Quantity Surveying Firms In A Recessed Economy

Assessment Of The Survival Practices Of Quantity Surveying Firms In A Recessed Economy

Chapter One

Preface

Background to the study

The construction assiduity plays an important part in a nation’s frugality and its conditioning are also vital to the achievement of public socio- profitable development pretensions of furnishing sanctum, structure and employment. According to Aibinu and Jagboro( 2002) the construction assiduity continues to enthrall an important position in the nation’s frugality indeed though it contributes lower than the manufacturing or other service diligence. Ayodele and Alabi( 2011) editorialized that a healthy frugality generally experiences an increase in construction conditioning. Saka and Lowe( 2010) stated that the significance of construction to profitable growth and development can noway be overstressed as construction makes significant donation to the GDP, capital conformation and employment etc. The construction assiduity as a total has a significant relationship to the frugality, in that a change in profitable affair of an frugality can affect in a commensurate change in demand and, as a result, a change in the affair of the construction assiduity( Richardson, Nwankwo, and Richardson( 2003). The follow- on effect of this change is that enterprises within the assiduity have to dramatically acclimatize to the changing profitable climate( Green, Larsen, and Kao, 2008).

exploration have shown that workers in the construction assiduity form a veritably large pool constituting one- half of the gross capital, and three to eight percent of the gross domestic product( GDP) in utmost countries( Arditi and Mokhtar, 2000; Mee- Edowe and Andawei, 2000). The construction assiduity is responsible for employing roughly 20 of the Nigeria’s pool, making it maybe the largest employer of construction labor in Africa( National Bureau of Statistics, 2006). The assiduity accounts for about 69 of the nations fixed capital conformation which implies that 70 of the net capital investment in the country goes into the construction assiduity( Business Monitor International( BMI), 2007). The National Bureau of Statistics( NBS)( 2014) donation of primary results of the rebased nominal gross domestic product( GDP) estimates for Nigeria 2010 to 2013 reported that the NCI records an normal of3.4 donation to the GDP within the considered times. This donation though small yet exerts both direct and circular impact on the public frugality as it stimulates the growth of other sectors through a complex system of liaison( Alabi, 2010).

Nigeria is one of the largest African countries but sorely have been facing decline in profitable affair. This profitable recession has led to so numerous construction companies espousing several survival practices in order to remain in business. According Musso and Schiavo( 2007) to survival practice of any construction company is defined as their capability to run or manage a small business with little coffers to keep track of nation and indigenous, profitable pointers that might affect the construction assiduity and the companies ’ operations. This is in line to the findings of Geroski, Mata, and Portugal( 2003) which states that for a conation establishment to survive in a depressed frugality, they must be aggressive and imaginative in operations. this means that the company should introduce ideas to gain request share by taking it down from challengers unfit to acclimate to shifting request conditions, maintain a strong cash sluice throughout the downturn, in discrepancy to other construction companies that may have liquidity problems, come a slender, more effective and more effective operation, more deposited to do well when the request improves. With this constrain, Madhoushi and Ghaedi( 2013) was of the opinion that construction enterprises who survive and indeed prosper during hard times most be suitable to look beyond the present to overcome the constraint of tradition to see the establishment from a new perspective and to do business else.

Through the construction assiduity, the Government is suitable to give acceptable public architectures for its citizens. According to Oluba( 2008) public structure touches on a wide range of introductory amenities, which enhance the capacity of profitable agents to accessibly engage in productive conditioning with reduced stress situations. still, in the delivery of these public architectures, several actors are brought together. According to Alintal- Abel and Nnadi( 2015) there are different interests in the construction assiduity with the top actors being the customer, the adviser and contractors. In the consummation of a construction design, advisers and contractor are brought together to satisfy the desire of the customer. According to Munns( 1996) construction design involves three groups of people who are brought together for a temporary period in which they’re anticipated to work together towards a collective thing. This group includes the customer, the advisers and construction contractors. The part of the customer is to instigate the design set pretensions, determine the constraint to work within, and give the needed fiscal resources to insure the systems pretensions. The Contractor is responsible for converting the plan into final reality while the Adviser is anticipated to convert the customer demand into a offer that can be achieved within any constraint set by the customer( Salami and Mustapha, 2015).

One of similar advisers whose part in the delivery of construction systems can not be over emphasized is the volume Surveyor. Ashworth and Hogg( 2000) described a volume Surveyor as a person that bring designs and produce procurement and construction documents. Ojo( 2011a) further stated that a volume Surveyor estimate and manage the cost of construction systems. A rehearsing volume Surveyor is substantially set up in volume Surveying enterprises( QSFs) which are service grounded enterprises furnishing consultancy, fiscal and confederated operation services to their guests( Abidin, Yusof, Hassan and Adros, 2011). Oyediran( 2011) views QSFs as knowledge grounded establishment because volume surveyors vend knowledge and not physical product when in operation. It’s noteworthy that this knowledge is converted into service that gets delivered to guests ultimately.

therefore, with the present downturn in the Nigeria frugality which is as a result of the decline in the price of crude oil painting and other associated factors( Sanusi, 2010; Eboh, 2015; National Bureau of Statistics 2015), which is bound to have a negative effect on the construction assiduity( Ogbu, 2017) it’s necessary to assess the survival practices of volume Surveying enterprises whose part in the construction assiduity is pivotal. This shall be done with a view to relating possible ways to help Quantity Surveying enterprises survive in times of recession

Statement of the Problem

Eboh( 2015) observed that the Nigerian frugality presently faces difficulties due to the decline in crude oil painting prices in the transnational request. Added to this is the huge burden of payment of subventions to petroleum products importers mounting to billions of Naira and to make effects worse, there have been a constant political drift down from the due process were construction contact allocation is awarded only to political and government agent thereby back beating professionals similar as the Quantity Surveyors and as similar driving these professionals construction enterprises into espousing other measures of survival in order to remain in business. In 2014 alone, N971.1 billion($4.88 billion) was calculated for subvention payments. The impacts of these have been the sharp decline in earnings accruing to the confederation. Up to8.97 of Nigeria’s GDP is reckoned for by proceeds from oil painting and gas assiduity conditioning, and crude oil painting earns further than 90 of Nigeria’s foreign exchange( Sanusi 2010; National Bureau of Statistics 2015). As a result, oscillations in earnings from this source have grave counteraccusations for the survival of construction interpreters in Nigeria as the government remains the biggest customer of the construction assiduity in Nigeria( Aniekwu, Anthony, Kehinde, 2014). Not only that, private sector guests of the construction assiduity are inversely linked to government expenditure; therefore, a decline in Nigeria’s public income has both direct and circular goods on the survival of construction interpreters( volume surveyors inclusive) and this could impact their mortality rate( Ogbu, 2017).

Olatunji, Oke, Aghimien and Ogunwoye( 2016) editorialized that with the grueling frugality in Nigeria, it isn’t uncommon to see construction professionals acting in mores that go against the ethics of their profession during the course of carrying out their professional duties just to make ends meet. Murdoch and Hughes( 2008) stated that Quantity Surveyors as construction cost directors are the cynosure of all eyes both within the construction assiduity and the country at large. Bearing in mind that construction professionals operate in a largely fractured assiduity which includes different chops and professions, and where connections and boundaries aren’t always clear, Quantity Surveyors are anticipated to display a high position of professional capability innovated on genuine ethical conduct.

It has been observed that the primary end of every profession is to serve the public. This commitment means that true professional places the public good before bare fiscal price. Acting in such a manner may on occasion conflict with an individual or customer’s interest. This conception is embodied in numerous of the profession’s canons of conduct( Murdoch and Hughes, 2008; Olatunji etal., 2016). Seeley( 1997) assert that upholding professional ethics underpins the primary objects of professional canons of practice. furnishing a professional service may thus be viewed as delivering specialized chops adeptly and in a way society expects of professionals.

Bearing the profitable recession facing the country in mind and the need for Quantity Surveyors to demonstrate high ethical norms, this exploration thus set out to assess the survival practices employed by Quantity surveying enterprises in Nigeria.

Aim and objects of the Study

The end of this exploration is to assess the survival practice of Quantity Surveying enterprises in a depressed frugality with a view to relating possible ways to help Quantity Surveying enterprises survive in times of recession. The objects stated out for achieving this end are to

• identify the factors affecting the survival practices of volume Surveying enterprises in a depressed frugality in Imo State;

• assess the position of these survival strategies by Quantity Surveying enterprises in Imo State;

• estimate the impact of these survival practices on the survival of Quantity Surveying enterprises in Imo State

Exploration Questions

The following exploration Questions were formulated to guide the study

• What are the survival strategies available for volume Surveying enterprises in a depressed frugality in Imo State?

• What’s the position of relinquishment of these survival strategies by Quantity Surveying enterprises in Imo State?

• What’s the impact of these survival practices on the survival of Quantity Surveying enterprises in Imo State?

Exploration Hypotheses

The suppositions set for this exploration are as follows

1) Ho There’s no significant difference in the view of the colorful orders of Quantity Surveyors as to the survival strategies available for volume Surveying enterprises in Imo State.

HA There’s a significant difference in the view of the colorful orders of Quantity Surveyors as to the survival strategies available for volume Surveying enterprises in Imo State.

2) Ho There’s no significant difference in the view of the colorful orders of Quantity Surveyors as to the position of relinquishment of colorful survival strategies by Quantity Surveying enterprises in Imo State.

HA There’s a significant difference in the view of the colorful orders of Quantity Surveyors as to the position of relinquishment of colorful survival strategies by Quantity Surveying enterprises in Imo State.

3) Ho There’s no significant difference in the view of the colorful orders of Quantity Surveyors as to the impact of the colorful survival strategies on the survival of Quantity Surveying enterprises in Imo State.

HA There’s a significant difference in the view of the colorful orders of Quantity Surveyors as to the impact of the colorful survival strategies on the survival of Quantity Surveying enterprises in Imo State

Significance of the Study

Several inquiries have been conducted on survival practices within and outside the construction assiduity( Ajayi, Pearce and Mafimidiwo, 2012; Madhoushi and Ghaedi 2013; Ogbu, 2017;etc.). Ayopo( 2011) revealed that firm position is related to establishment survival, for enterprises in different sectors of the Nigerian husbandry, independently. Ajayi etal.,( 2012) sought the opinion of construction professionals on the survival practices of construction enterprises in Lagos, Nigeria. likewise, Ogbu( 2017) concentrated on the opinion of indigenous construction enterprises. This was done out of the supposition that as business realities, indigenous construction enterprises are affected by the dynamics of the profitable terrain; thus, they emplace survival practices in order to survive.

While several studies on survival in the construction assiduity are available, not much has surfaced on the survival practices of Quantity surveying enterprises in Nigeria. This gap is what this exploration sets out to fill. With this profitable downturn, Quantity surveying enterprises will need to develop new survival strategies to help the stay round and survive this recession period. therefore, assessing these survival practices of Quantity surveying enterprises will go a long way in aiding the operation of these enterprises in making critical opinions that will help in the survival of the present recession within the country. This study will enable Quantity Surveyors within the country as it hopes to bring to light other possible areas of diversification that will help them survive in terms of recession.

Compass of Study

This exploration sets out to assess the survival practices of volume Surveying enterprises in a depressed frugality. The exploration shall be confined to Quantity Surveying enterprises in Imo State Nigeria. Although this exploration sets out to assess the survival practices of volume Surveying enterprises in a depressed frugality, as a result of limited available finance for the prosecution of this design, coupled with the associated time constraints, using every single volume Surveying establishment within the country will prove insolvable.