Assessment of the Cost Implication of Reviving Abandoned Public Projects in Abuja, Nigeria.

Abstract

The issue of abandoned projects have remained a teething and perennial problem in most developing countries and Nigeria has not been spared the agony associated with this development. In addition to abandoned project suffering from time and cost overruns, the people are denied the benefits of access to basic services. Thus, this study assessed the cost implication of reviving abandoned public projects with a view to proffering possible solutions towards reducing the issue of project abandonment. The study adopted observation, interview and questionnaire survey approach, in which quantitative data were gathered from in-house construction participants from FCDA and contractors to FCDA within the study area, through the use of structured questionnaire. Percentile, Relative Important Index (RII), Pearson Product-Moment Correlation Coefficient, T-Test and Mann-Whitney U Test were used in the analysis of data gathered. The study reveals that there is a significant statistical relationship between the initial contract sum and the revised contract sum with a mean value of 169,608,856.96, t-value of 2.813, 24, at 95% confidence level. Also, with an effect size of 0.24, it was concluded that there is a larger portion of variance between the initial contract sum and the revised contract sum of abandoned public projects. A significant relationship was observed between the period of project abandonment and the additional cost incurred in reviving them, and average of 50% original contract sum is required depending on the period of abandonment to revive abandoned project. Also, to reduce the incidence of project abandonment; initiating only projects which can be completed with the available resources, ensuring accountability, transparency, honesty and integrity in selecting project participants, creating policies that will ensure continuity of construction works after the exist of one government, and accurate estimation of quantities and cost for projects were considered the most important measures. The study recommended that Government should create policies that will ensure continuity of projects after exit of initiating government; and such policies should be enforceable.