Contributions of Contracting Parties to Non-Settlement of Final Accounts in Building Projects in Abuja, Nigeria

Abstract

The defect liability period/final account stage of a project is sometimes rarely settled or even being delayed by some of the contracting parties, and thereby posing serious challenges on contractors. The research examined the contributions of contracting parties to non-settlement of final accounts in building projects in Nigeria. Quantitative technique was adopted in this study. The targeted population constituted the major construction participants, including government clients, registered consultants (Architects and Quantity Surveyors, due to their involvement in valuation and payment certificates) and contractors within Abuja. The stratified random sampling method was adopted. A total 146 structured questionnaires were administered to 23 clients, 21 contractors and 102 consultants, from which a total of 119 was retrieved, representing 86% response rate. The collected data were analysed using the descriptive statistical and inferential methods. It was found that changes in specifications during construction, inadequate experience of consultant, and discrepancies in contract documentation, were the major consultants-related factors that contribute to non-settlement of final accounts. Also, rework due to errors during construction, unavailability of materials and equipment, and delay in material delivery, were the major contractors-related factors that contribute to non-settlement of final accounts in building projects. The results also revealed a non-significant difference in the views of respondents on these factors by the parties. It can be concluded that proper management of the identified factors would translate into effective settlement of final accounts in building projects. The contracting parties could constantly revise and implement the findings of this research as a reference document, in order to ensure effective settlement of final accounts in building projects.