ABSTRACT
Project evaluation is not limited to the after the fact analysis, projects as a whole is evaluated when it has been completed .Project evaluation should be conducted at a number of points during the life cycle of any given project. A major vehicle for evaluation (but by no means the only one) is the project audit, a more or less formal inquiry into any aspect of the project. We associate the word audit with a detailed examination of financial matter, but a project audit is highly flexible and may focus on whatever matter senior management desires.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND TO THE STUDY
The impression is often created that project evaluation starts and ends with cost Benefits analysis; such an impression is rather erroneous. The evaluation of a project necessitates determine the overall effect which its implementation or non-implementation would have on the wealth of the investor. Hence, the incremental costs and incremental revenue effects of the projects must be determined on the basis of which an ‘accept’ or a ‘reject’ decision can be taken.
Hence, there are various forms of capital project undertaken by Marlum (Nig.) Ltd and it includes: construction and rehabilitation of both urban and rural roads, building of housing estates, hospitals and other super structures like bridges. Each of these projects normally requires the commitment of a substantial outlay of funds over a fairly long period of time. Those projects whose final benefits are expected to accrue within one fiscal period are
presumed to be current outlays, while those benefits accrue beyond one fiscal period are termed capital outlays, it is these capital outlays that are amenable to project evaluation procedures.
1.1 STATEMENT OF THE PROBLEMS
The construction industry still remains inherently an uncertain industry which arises from the nature of the industry itself. Investors in construction industries are faced with project evaluation situation when;
-Establishment of new project.
-Expansion
-Modernization
-Replacement decision
-Capacity consideration
-Make or buy decision
The company turner over and site production rates are all variables that depends on proper designed initial project evaluation and final project evaluation after the extension of the project. The management techniques discussed in this research studies help to
reduce variability; for example with proper estimating tendering procedures, cost control systems, plant and equipment investment and general investment appraisal exercise, the duration of a residual variability in even the best-run construction company needs to controlled by;
A Planning and setting targets
B Choosing methods to achieve such targets
C Monitoring progress
D Taking corrective action when necessary
This continual monitoring and revision is ultimately the only way to cope with uncertainty and variability.
1.2 OBJECTIVE OF THE STUDY
Taking the above into cognizance, the objectives of the study will include;
A To examine the importance of pre and post project evaluation procedures
B To examine the extent of good contractual arrangement
C To show the importance of cost control system in project evaluation appraisal exercise.
D To proffer useful suggestions towards improving the management techniques in modern industry.
1.3 HYPOTHSIS OF STUDY
Hypothesis 1 Null Hypothesis (Ho)
(Ho) Project managers in Nigeria are not aware of the use and importance of pre and post projects evaluation procedures in the construction industry and hence do not use them in managing projects.
Alternative Hypothesis (H1)
(Hi) Projects managers in Nigeria are aware of the use and importance of pre and post project evaluation procedures in the construction industry, but do not use them in the management of projects.
Hypothesis 2 (Ho)
(Ho) Operational research techniques as a tool for evaluating projects in Nigeria construction industry is not relevant and should not be initialized.
(Hi) An operational research technique is relevant and should be initialized as tool for the evaluation of the project in Nigeria.
1.4 SCOPE OF THE RESEARCH
This study covers project evaluation activities of Marlum (Nig) Ltd. Professionals in service facilities includes: quantity/land surveyors, project engineers,architects,geologists,computer analyst, accountants and others involved in project planning, management, execution and evaluation.
1.5 SIGNIFICANCE OF THE STUDY
It is imperative for any project that wishes to survive and yield maximum profit in this fast changing competitive global constructing economic environment to keep abreast with modern day technology for evaluating its project and services.
In the modern project management, the project manager utilizes his knowledge of operational research in optimizing his
operations. The importance of pre and post project evaluation approach employed in managing projects in Nigeria identification of goal-directed purposes of a project is relatively easy: it requires only a careful reading of the project proposal and close examination of any documentation that indicates why the project was selected or undertaken.
This material content is developed to serve as a GUIDE for students to conduct academic research
PRE AND POST PROJECT EVALUATION PROCEDURES IN THE CONSTRUCTION INDUSTRY A CASE STUDY OF MARLUM (NIG) LTD ENUGU
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