ANALYSIS OF THE IMPACT OF FEASIBILITY/VIABILITY STUDY ON CAPITAL PROJECT DEVELOPMENT IN NIGERIA


ANALYSIS OF THE IMPACT OF FEASIBILITY/VIABILITY STUDY ON CAPITAL PROJECT DEVELOPMENT IN NIGERIA   

TABLE OF CONTENTS

Content                                            Page

Title page    -    -    -    -    -    -    -    -    -    -    i

Approval    -    -    -    -    -    -    -    -    -    -    ii

Dedication    -    -    -    -    -    -    -    -    -    -    iii

Acknowledgement    -    -    -    -    -    -    -    -    -    iv

Abstract    -    -    -    -    -    -    -    -    -    -    v

CHAPTER ONE

Introduction

1.1 background of the study

1.2 problem statement

1.3 research objectives

1.4 research qustions

1.5 research hypothesis

1.6 significance of the study

1.6 scope of study

1.7 limitation of the study

1.8 definition of terms

References

CHAPTER TWO

Literature review

2.1 introduction

2.2 theoretical framework

2.2.1cost-benefit of construction projects

2.3 the Nigerian construction industry

2.4 concept of construction project

Types of project

2.4.1 construction project

2.4.2 building construction project

2.5 clients in building construction project

2.6 parties in a construction project

Developers responsibility on a construction project

2.7 feasibility studies in construction projects

2.7.1 construction capital budgeting

2.7.2 the construction capital budgeting process

2.7.1.1 strategic planning

2.7.2.2 identification of investment opportunities

2.7.3 preliminary screening of projects

2.7.4 financial appraisal of projects

2.7.5 qualitative factors in project evaluation

2.7.6 the accept/reject decision

2.8.7 project implementation and monitoring

2.9.8 post-implementation audit

2.8 construction capital budgeting techniques

2.8.1 the payback period

2.8.1.2 discounted payback period method (payback dcf)

2.9 meaning and significance of feasibility and Viability appraisals

2.9.1    Historical perspective Basis distinction between feasibility and

2.9.2    Viability appraisals

The importance of feasibility and viability

2.10    Appraisals

2.11    Components of feasibility and viability studies

2.11.1    Technological/technical aspects

2.11.2    The physical aspect

2.11.3    The commercial aspect

2.11.4    Legal aspect

2.11.5    The economic aspect:

2.11.6    Social-politial aspect:

2.11.7    Management and personnel aspect:

References

Journals

CHAPTER THREE

Research methodology

3.0 introduction

3.1 research design

3.2 population of the study

3.3 sample and sampling technique

3.4 research instrument

3.5 validation of an instrument

3.6 method of data analysis

CHAPTER FOUR

Data analysis and interpretation of results

4.1    introduction

Analysis of research questions

Analysis of research hypothesis

CHAPTER FIVE

Summary of findings, recommendation and conclusion

5.1     summary of findings

5.2    recommendations

5.3    conclusion

Appendix

Questionnaire

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY:

Until relatively recently, the discipline of development appraisal has remained the provenance of surveyors and developers. It largely been ignored by other participants in the development process, particularly planners, architects and construction specialists. This is now changing. Close attention is now paid to the feasibility and viability (and profitability) of development proposals as government and other stakeholders seek to extract developer and/or landowner contributions to affordable housing, public services and infrastructure. Consequently the theory, application and outputs from development appraisal are under intense scrutiny from a wide range of users. Since Circular 05/05 proposed the submission of financial information‟ to provide a basis for negotiations between developers and local planning authorities about viable levels of affordable housing, tests of the financial viability of development projects have become an integral part of the planning process, both at the forward planning and development control stages. At the large-scale, macro-level Strategic Housing Land Availability Assessments require proposed plans to be achievable. However, the timeframe for development can be decades rather than years and, as a result, generating detailed and reliable cost and revenue projections can be impractical. At the other end of the scale, viability appraisals are carried out to inform negotiations about affordable housing levels for a scheme about which there may be a high level of information on permitted development and expected costs over a relatively short timeframe.

In terms of critical evaluation from the real estate academic community, development appraisal has remained something of a backwater. In contrast, often linked to market traumas, over the last four decades methods of appraising standing investment properties have been the subject of widespread academic and professional debate. Whilst the RICS monitors variance and accuracy of investment valuations, there is no comparative institutional evaluation of the performance of development appraisals. Nevertheless, conventional development viability models have been subject to some criticism, particularly their simplified composition, failure to mirror reality and theoretical weaknesses.

1.2 PROBLEM STATEMENT

The general low usage of formal feasibility and viability appraisal techniques by contractors and developers globally often culminates into project failures, incessant claims for variations, huge financial losses and sometimes brings discomfort for people who came to enjoy themselves at these recreational centres. (Allan et al, 2007). This situation is more prevalent in redevelopment projects due to the inevitable problems of unexpected additional work, excessive requirements and scope management issues, project funding not aligned with project plans, delay, structural failure, cost overrun, etc (Naaranoja and Uden, 2007). These problems or uncertainties, among others, increase the project risk and make their management crucial if success is desired.

Some construction projects in Owerri Urban have been abandoned due to poor or no feasibility and viability appraisal on them, while some recreational developments Owerri Golf Club, Silver Bird Cinema etc have stood the test of time, due to proper planning and forecasting. This huge expenditure and apparent failure in the primary objectives of the project led to complaints, probe panels and subsequent abandonment of the project.

Research has shown that financial, political and physical risks are the most significant to Nigerian Contractors (Dada, 2010). However, of the different levels of risk (country, market or project), there is shortage of research as to how Contractors approach project planning at organisational level.

1.3 RESEARCH OBJECTIVES

To explore feasibility and viability appraisal techniques used by Contractors of capital projects in Owerri Urban. To assess awareness and usage of formal feasibility and viability appraisal techniques by Contractors in Owerri Urban. To examine the success or failure of the feasibility and viability appraisal methods by Contractors in Owerri urban. To evaluate the impact of feasibility and viability appraisals on the development of capital projects in Owerri Urban.

1.4 RESEARCH QUSTIONS

What feasibility and viability appraisal techniques are used by capital project contractors in Owerri Urban? How do you gather information about newer feasibility and viability appraisal techniques and strategies to be applied in your on-going projects? What are the impacts of feasibility and viability appraisal on the development of capital projects?

1.5 RESEARCH HYPOTHESIS

Ho: There is no significant relationship between feasibility study and the performance of contractors.

Hi: There is a significant relationship between feasibility study and the performance of contractors.

Ho: Feasibility study does not enhance quality deliverable in capital projects.

Hi: Feasibility study enhances quality deliverable in capital projects.

1.6 SIGNIFICANCE OF THE STUDY:

This study gives a clear insight into the various ways in which Capital Project developers and owners in Owerri can maximise efficiency and profits through effective and efficient application of feasibility and viability appraisal methods and techniques. The study also gives a clear insight into the various impacts of feasibility and viability appraisal methods on the development of recreation properties in Owerri. The findings and recommendations of the researcher will help in building a strong and better appraisal technique and strategies for Capital Project developers in Owerri state. The impact of feasibility and viability on Capital Project development in Owerri Urban are outlined in order for drastic measures to be taken to tackle any challenge property owners and developers may face when developing recreational centres in Owerri state.

1.6 SCOPE OF STUDY:

This research focuses mainly on the impact of feasibility and viability appraisal on the development of capital projects in Owerri urban. Results and recommendations may not be used to generalise other Cities in Nigeria, as the researcher could not cover a wider scope due to financial and time constraints.

Based on the findings of this study other possible researchable areas may include studies on the various effects of other aspects of recreational development such as property laws in Nigeria and property management and control.

1.7 LIMITATION OF THE STUDY:

The only limitation faced by the researcher in the course of carrying out this study was the delay in getting data from the various respondents. Most respondents were reluctant in filling questionnaires administered to them due to their busy schedules and the nature of their work. The researcher found it difficult to collect responses from the various respondents, and this almost hampered the success of this study.

1.8 DEFINITION OF TERMS

Definitions of terms serve as the dictionary of this research.  The terms are defined to enable the reader to understand the research more clearly.

Feasibility:  Erikson (2002) defined feasibility as an evaluation and analysis of the potential of the proposed project which is based on extensive investigation and research to give full comfort to the decisions makers.

Viability: According to Simmons (2007), Viable or viability is the ability of a thing (a living organism, an artificial system, an idea, etc.) to maintain itself or recover its potentialities.

Capital Project: this refers to long term investment requiring relatively large sums to acquire, develop, improve, and maintain.

REFERENCES

1.    Allan et al, 2007 Techniques for Effective property management  (A John Wiley & Sons, Inc., Publication Hoboken, New Jersey. Published simultaneously in Canada.)

2.    Erikson O. U., (2002) Urban Planning and development in a Depressed Economy. Unpublished M.Ed. Dissertation Submitted to the University of Ibadan. Ibadan

3.    Naaranoja J.K and Uden P.I., (2007).  Principle and practice of Feasibility Studies In Nigeria (Owerri: Springfield publishers, 2006) p.31

4.    Simmons P.K. (2007) Understanding Feasibility and Viability Analysis New York: Westside Publishers

.

ANALYSIS OF THE IMPACT OF FEASIBILITY/VIABILITY STUDY ON CAPITAL PROJECT DEVELOPMENT IN NIGERIA



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.ORG

Researchwap.org is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.org guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.org is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.org" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.