RISK MANAGEMENT IN MEDIUM SIZED COMMERCIAL BUILDINGS IN NIGERIA

ABSTRACT

In this recent times there has been inflationary trend in the Nigerian economy this has also effected different sectors of the economy including the financial affairs as long as one registers he becomes a risk management in medium sized of commercial building. The lack of trained professional to handled the commercial building constitutes the first major obstacle to management in the way it is understand the Quack Again. Being that they are not trained in the profession are not capable in carried out the management of commercial building more than licensed surveyor who has under gone so many training in the filed of Estate Management unlike Licensed Agent who are doubts trying to maximize profit.

CHAPTER ONE

GENERAL INTRODUCTION

1.1  BACKGROUND OF THE STUDY

Risk management is according to Project Management Institute (PMI) one of the nine knowledge areas and the integration of an effective risk management is considered a crucial element and essential for project success. Construction projects can be described as tremendously complex projects in which uncertainty might arise from various sources. Risk management is therefor increasingly becoming an extensive component of the project management of construction projects in a pursuit to efficiently deal with unexpected events and ambivalence. It is important due to the damaging consequences imposed by risk and uncertainty (Banaitene and A. Banaitis, 2012). However, for years the industry has had a poor reputation for managing the adverse effects of change resulting in delays and a failure to meet quality and cost targets (Smith et al., 2006). The objective of an efficient risk management procedure is to facilitate risk neutral decisionmaking, which in turn till result in superior performance. Systematic methods for obtaining more information about uncertainty on the project is needed to achieve that objective (Winch, 2010). The implementation of various techniques and methods for risk management- and assessment will however not remove all risks but the aim is to ensure that the risks are assessed and managed in a manner allowing the overall objectives of the project to be achieved (Potts, 2008). Risk management involves the establishment of risk consciousness, integration of basic principles of risk policy and organizational integration. This allows, through proactive action, the project to be prepared for unavoidable problems and an increased transparency (Schieg, 2006).

It is an ongoing process throughout the entire the project life cycle as risks will continually change. Risk management is the process of identifying, assessing and responding to risk and it is important to work as an integrated project team from the earliest possible phases, in order to identify and efficiently deal with risks when they arise (Potts, 2008). The benefits of the process are clearer understanding of the specific risks associated with a project, supported decisions by detailed analysis and a build up of historical data that can be used to assist future risk management procedures. Unfortunately, many project managers have still not realized the importance of implementing project risk as an integral part of the delivery of a project (Smith et al., 2006).

An inefficient implementation of risk management is often caused by the lack of formalized procedures, the lack of continuity in the different project phases and an inadequate integration of knowledge management and interaction between processes and parties. During the construction process the major responsibility to deal with risks is laid upon contractors by deciding if the risks should be reduced, avoided, transferred or retained (Liu et al., 2007). In order to manage risk effectively the contractor needs to understand risk responsibilities, risk management capabilities and event conditions (Banaitene and A. Banaitis, 2012).

The  dramatic reduction in number of commercial building in Nigeria is a reflection of the level of decline which the nation has one through. The demise of same commercial building in Nigeria did not discourage further investment in the development of commercial building in Nigerian. Obviously the “big” names served the need of the whole of Awka metropolis when few investors considered the development of commercial building (shopping complexes) as a worthwhile problem and the idea of a Central Business District was accorded a high respect.

Recently the management is not an easy idea to conceive for real estate especially with such development  are in use by  the  owners. The lack of trained professional in handle the management of commercial building constitutes the first major obstacle to management of commercial building with in general.

Basically maintenance is a vital aspects of property management this aspect guarantees the physical life span of a property in order that a property may last for ages ad does not  become economically obsolete, it must be maintained.

1.1       STATEMENT OF THE PROBLEMS

Lack of proper maintenance has gone way to effect the image of some commercial building many commercial building failed due to ineffective handing of the building which manifests in the physical deterioration.

When non-professional are entrusted with the task of property management, failure is easily result. In many instance policy or decision makers, have neglected the role of professional property manager. In the management of commercial building. What is the correct solution? Who can provide the answer?

1.2       AIM AND OBJECTIVES

This study aims at achieving or deriving a satisfactory way of management of commercial building and party contributes to the management of the economic resources in Nigerian. The objectives of the project are:

• To identify the factors influencing commercial property management in Nigeria.
• To develop strategies for improving the management of commercial building so as to ensure maximum utilization and long life at minimum cost.

 

1.3       RESEARCH QUESTIONS

To throw more light on the topic at state, the researcher took the pains to arrange so me questions based on the assumptions earlier on put forward about the problem this is hoped, will help the researcher to get the solution to the problems, which is the failure of the  existing method of  management.

The following research questions will accommodate that:

1. What are the factors influencing commercial property management in Nigeria?
2. What strategies can be adopted to ensure effective management of commercial building in Nigeria?

1.4       SIGNIFICANCE OF THE STUDY

This section of chapter one of a research project states those whom the study will have impacts on and those that will benefit from the study.

It will be significant to the researchers and those associated with the project such as the occupant of the area the customers the entire public etc.

Finally the research work will serve as on additional to the existing literature in the area to managing and maintaining commercial building, besides serving as reference for future researchers on the field.

1.5       DELIMITATION OF STUDY

The study is on the management of commercial building in Nigeria, with particular emphasis on selected commercial building in Owerri North, Imo State, this shows that the project will be restricted to the area, to enable the researcher has enough time for the project.

1.7              DEFINITION OF TERMS

1.7.1    MANAGEMENT

The science of organization and operation or at practical, level the art of directing and controlling affairs.

1.7.2    COMMERCIAL

These occurs mainly inform of market shop office building, supermarket bank building, hotel, trade centre and petrol, filling station in commercial cities.

1.7.3    PROPERTY

This defined as the highest right a man can have to any thing, property can be classified into two land and immovable good which a man owns a re know as corporeal property while incorporeal are those right which a man has over that property.

This is arranged in five(5) chapters the first chapter generally introduce the topic of the study while, the second chapter reviews into many other literature  in the area of study, which has been written in the past. These areas include definition of management maintenance and management strategy.

Third chapter introduces the data collection method instruments, analysis and procedure while fourth chapter is the data presentation and analysis.

Fifth chapter includes conclusion and recommendation of the problem of strategies for management of commercial building.

RISK MANAGEMENT IN MEDIUM SIZED COMMERCIAL BUILDINGS IN NIGERIA, GET MORE BUILDING TECHNOLOGY PROJECT TOPICS AND MATERIALS