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ASSESSMENT
OF INFORMATION TECHNOLOGY (IT) USES AT PRE-CONTRACT STAGE OF BUILDING PROJECTS
CHAPTER ONE
INTRODUCTION
1.1 Background to the study
Every
construction process requires heavy exchange of data and information between project
participants on a daily basis. This makes the construction industry on of the
most information-intensive industries. Information Technology (IT) has been
widely applied across many sectors in order to increase competitiveness and
reduce consists and is today seen as a medium to gain a competitive advantage
(Earl, 1993). Construction industries usually use Information Technology (IT)
in order to overcome problems and achieve improvements in construction process.
The average annual growth rate of IT investment in the construction industry is
increasing every year and this now constitutes a significant part of the total
project cost. (Issa et al. 2007). Information Technology (IT) is seen as a
mechanism that enables fundamental change to be effected in the construction
industry. However, firms in the construction industry are slowly responding and
adapting to developments in information and communication technologies (Alshawi
and Ingirige 2003). O’Connor and Yang (2003) opined that the success of a project
is related to the level of IT use. The duo approached the issues of IT by means
of statistical methods and discovered that there is a statistically significant
correlation between the use of IT and projects being successful. In Nigeria,
Oladapo (2007) argued that the level of use of IT in the construction industry
is low and one of the reasons is attributed to the project leaders’ attitudes
toward the use of IT in their organization.
The
integration of construction processes using IT offers considerable potential
for construction firms while poor flow and integration of information have led
to low productivity and competitiveness in the industry (Hampson, 1993).
Technological developments such as the internet and internet are re-defining
the way construction firms should carry out many of their strategic, tactical
and operational business processes. It is observed that the construction
industry is currently experiencing a change from traditional paper-based to
digitally based information exchange, which other industries such as aircraft
manufacturing and banking have adopted and benefited from, long ago. The use of
IT can impact on the traditional processes of organization in construction and
result in change in organizational processes, working methods and culture
(Alshawi and Ingirige 2002).
This study
attempts to evaluate the level of use of IT on construction project. The study
will examine the relative effects of selected factors on the use of IT in
project delivery, the level of use of IT at the pre-contact stage of
construction projects in Akwa Ibom State and its influence on project
performance. IT has been an effective tool adopted in other industries to
enhance work processes and achieve digital-based documentation and
communication, resulting in a real-time connection among work stakeholders and
suppliers (Fischer and Kunz, 2004). The use of IT reduces task fragmentation
and improves coordination and collaboration, resulting in better communication
practices among term members of the construction project. IT use and
implementation is not a straightforward process because many issues need to be
considered at the earlier stages when IT is to be adopted. However,
implementing IT in construction companies does not usually provide all the
benefits initially envisaged at the expected time. Other benefits require more
time for maturity, therefore, there is a time gap between the initial
investment and revenues (Peppard et al., 2007).
1.2 Statement of the Problem
In this era
of rapidly advancing technologies, many organizations and governments around
the globe are spending a great amount of money on technologies in order to
increase their productivity, efficiency and the quality of the work they do.
Effective use of information technology will require those who are involved in
information management to accept if first. According to Willcocks (2002), it is
widely accepted that unless decision makers develop positive attitudes toward
IT, they will not use them in their work practice. Therefore, there is need to
understand whether project leaders in construction organizations accept
technological advances, what the primary elements of successful adoption and
utilization of information technology are and what the primary factors
affecting the use of IT are. Thus, Nigerian government need to provide the
necessary tools in order to overcome such issues and identify the benefits and
gains that this technology would contribute to construction benefits and gains
that this technology would contribute to construction industries and project
performance. By providing the necessary tools and policies, it will most likely
create conditions that will guarantee the adoption, acceptance and use of
information technology. Cooper (2001) asserted that knowing the factors that
influence project leaders, adoption of information technology will help to
identify and predict how information technology will contribute to project
success and organizational performance in terms of effectiveness and efficiency
gain. In Nigeria, Oladapo (2007) argued that the level of use of IT in Nigeria
is low and one of the reasons is attributed to the project leaders’ attitudes
toward the use of technology in their organizations. As a result, it is
important to determine if project leaders are willing to adopt the use of this
technology in their daily work and why some may avoid using it.
The problem
addressed in this study is to determine the level of use of IT at pre-contract
stage, the factors that factors that affect the use of IT in construction
projects in Akwa Ibom State and the influence of the of use of IT on the
project performance.
1.3 Aim and Objectives of the Study
The aim of
this study is to evaluate the use of IT in project delivery and its impact on
project performance with a view to promoting IT based project delivery process
in Akwa Ibom State. The research objectives are to:
1) Determine the factors that affect the
use of IT at pre-contract stage
2) Determine the extent of use of IT as
pre-contract stage in building projects
3) Determine the influence of IT
utilization at pre-contract on project
performance
1.4 Significance of the study
The
importance of this study comes from the role that project leaders play in the
management and execution of construction projects in Akwa Ibom State, Nigeria.
In order for the Project leaders to carry out this role successfully, they need
an awareness of the benefits that information technology brings to
construction. The study provides very helpful and important information
regarding the organizational, project, technological and managerial
characteristics and explains the factors influencing the adoption and use of
IT. This study further provides a strong understanding of this observable fact
and makes a clear understanding of the factors affecting the project leaders’
attitude toward the successful adoption and utilization of information
technology for project delivery. This study assesses the level of use of IT at
pre-contract stage; this assessment determines which pre-contract process utilizes
IT more. This will enable the project leader and construction organization to
be fully aware of the IT applications that should be invested in. this study
also explores the relationship between the level of use of IT at pre-contract
and the performance of projects.
The
significance of this study comes from the fact that IT has an important role to
play in the speed, cost and quality of project documentation which should
translate to improved project performance. In order for this to be achieved,
there is the need for greater understanding of the benefits that IT brings to
construction. The results will assist oil and gas companies, construction
organizations and project leaders to promote the use of IT in the delivery of
construction projects in Akwa Ibom State Nigeria. This understanding prompts
this study.
1.5 Statement of Research Questions
This study
will provide answers to the following questions:
i. What are the factors that influence
IT utilization at pre-contract stage of
building project?
ii. What is the extent of use of IT at the
pre-contract stage of project delivery?
iii. Does the level of Use of IT at
pre-contract have signification influence on
project performance?
1.6 Research Hypothesis
Based upon
the research questions, one research hypothesis is postulated and tested in
this study. The hypothesis states as follows:
Ho: There is no significant positive
relationship between the level of IT use at
pre- contract stage and
project performance.
H1: There is a significant positive
relationship between the level of IT use at
pre- contract stage and
project performance
1.7 Scope and Delimitation of the Study
This study
is concerned with determining the factors affecting the use of IT at
pre-contract stage of construction project in Akwa Ibom State, assessment of
the level of use of IT and its influence on project performance. The focus of
the study is restricted to the pre-contract stage because it is the stage when
major documentation on a project is done.
Project
location used for the study is also restricted public and private sector
building projects. Project category used for the study is grouped into two
category namely residential and institutional projects.
The study is
limited to building projects construction projects completed between 2011 and
2014 within the state capital and other local government areas.
1.8 Definition of Operational Terms
Computer-based
information technology
Computer-based
Information Technology is any computer-based information processing system
using an extensive technology designed to allow decision makers within
organizational units to process data from their external environment into
information to reduce uncertainty (Harrington, 1996).
Computer-based
Systems:
Computer-based
system is a collection of computer hardware and software brought together to
facilitate the processing of information for an organization. They are used for
a variety of functions within organizations, including component design and
manufacturing customer recordkeeping, presentation development, decision
making, training, budgeting, planning and controlling (Harrington, 1996).
Pre-contract
stage:
Pre-contract
stage in construction project includes the conceptual stage, feasibility
studies, front-end engineering design stage, detailed design stage, tender and
bid analysis (Soh, 1992).
Project
leader:
Project
leaders in this study are professionals employed in clients’ organizations and
they represent the project clients. The project leaders are those at the
management level of the hierarchy such as project manager, construction
manages, discipline engineers, project engineers, and project coordinator. They
are the decision maker in the project.
Information
According to
Love (2004), information is an important or useful facts obtained as output
from a compute by means of processing input data with a program.
Information
and communication Technology (ICT)
The term is
broadly defined to include the direct operations of any compute-based o communication
technologies, networked or standalone, hardware and software. In general, it is
any product that uses of computer or communication hardware or software for the
technological base (Cooper, 2001).
Information
Technology (IT):
Andersen
(2002) define information technology (IT) as all components that together
provide necessary information, such as hardware, software, communication
technology essential equipment and attendant techniques, the people and the
procedures with which they work, and the data that are processed by the system.
Technology:
Defined
simply as a collection of processes for transforming inputs into outputs and
the knowledge and skills necessary for their application IT is also defined
technology as a set of systems for getting the organization’s work done (cited
in Harrington, 1996).
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