Improving the Performance of Building Construction Firms through Addressing the Gap of Building Production Management: A New Production Model Approach

Abstract

Gap of building production management (BPM) is a serious issue that influences project success and building construction firms’ (BCFs) performance. Hence, the call for BCFs performance improvement using a new production model approach is a necessity. The aim of this study is to investigate the role of the new production model concept as a method for enhancing the performance of BCFs through addressing the gap of BPM in Nigeria. To attain this aim, a research procedure was designed to achieve two objectives which include: (i) exploring the nature of Nigerian construction industry, gap of BPM and new production model concept; (ii) investigating the awareness and application of the new production model concept as a method for enhancing the performance of BCFs in the study area. To accomplish the aforementioned aim, a research method comprised of a literature review and questionnaire surveys was designed to address the objectives. The study identified unproductive/ineffective BPM, lack of buildability and maintainability analysis, professionalism mismatch, and unauthorized practices as the gap of BPM. This study revealed that the gap of BPM is the main reason behind building failures/collapses, bad debts, low productivity, low level of clients satisfaction, high labour turnovers, and barriers to economic fortune. The study also revealed poor cash flow, lack of experience in the construction field, unprofessionalism and a high number of unskilled employees in a company, lack of co-operation from subcontractors and suppliers and poor labour relations, as the top five causes of BPM gap. BCFs in Nigeria have adopted several approaches to arrest these issues, but the challenges still occur. Thus, the new production model concept that has not been well adopted by construction firms in Nigeria, and which emphasizes on-site production, and aims at enhancing production management is a key to tackling these issues. Based on the survey findings, the study recommended that the issue of the gap of BPM must be correctly identified and clearly understood so as to enable BCFs to bridge the production management gap which will influence their performance positively.

Building production management practice in the construction industry in Nigeria

“…BPM has been defined as the management of building production information, equipment, materials, labour and other resources that are used in the physical realisation of a building project, at the same time adhering to building codes and contractual conditions (Osuizugbo, 2020). It follows that BPM is the overall management of building production on site.…”

“…Ineffective building production management (BPM) can negatively impact on the national economy. According to Osuizugbo (2020), ineffective BPM has negative implications on construction companies as well as the economy, and can only result in rework, budget overruns, project delays, premature project termination, poor workmanship and building failure/ collapse. Aliyu, Adamu, Abdu and Singhry (2015) pointed out that ineffective work was the leading cause of poor project performance in the construction sector.…”

“…According to Odediran et al (2012), ineffective project management affects the company's competitive position in the market. Osuizugbo (2020) defined ineffective BPM as used inefficient operating methods, competence deficiencies among management and construction workers; or poor design and specifications, which lead to extra work. Most Nigerian cases of BPM are executed by unqualified people, such as artisans, craftsmen and technicians, who have no knowledge of technological or construction processes including the construction phase (Anyanwu, 2013).…”

“…Most Nigerian cases of BPM are executed by unqualified people, such as artisans, craftsmen and technicians, who have no knowledge of technological or construction processes including the construction phase (Anyanwu, 2013). Ineffective BPM obstructs innovation, creativity, and the sector's growth (Osuizugbo, 2020). According to Anyanwu (2013), ineffective BPM wastes time, money, material and human resources, and generates an immense loss to the economy.…”

Financial Instruments Used in the Financing Construction Project in Nigeria

“…Most stakeholders in the construction industry are risk takers, and failure to identify and effectively manage the risk in construction project can cause financial catastrophe for the project participants. In the Nigerian construction industry, project teams and stakeholders often faced challenges, like delays in project delivery as a result of funding problems, profitability, quality control, contractor's insolvency and nonavailability of finance [5,6,7,8]. Resource allocation is also another problem faced by the industry.…”