KUMASI TECHNICAL UNIVERSITY

FACULTY OF BUILT AND NATURAL

ENVIRONMENT
DEPARTMENT OF BUILING TECHNOLOGY

Topic: Evaluating the causes and effects of uncompleted

(Abandoned) construction projects in the Ghanaian construction
industry)
NAME: ANDREWS NAWORAGYERE
INDEX: 052041440032
INTRODUCTION
Generally, construction is referred to as the creation, repair, maintenance, alteration, and
demolition of buildings, highways, streets, bridges, roads, sewers, railways, and communication
systems according to Durdyev and Ismail (2012) and Owoo et al. (2018). Ahmed (2015) further
postulated Construction involves the act of erecting buildings, civil engineering projects or any
type of engineering construction work. This includes the creation of structures well, as
maintenance, repairs and refurbishments. The construction industry is deemed a giant sector of
the Ghanaian economy among the pillars of the economy. Ahmed (2015) believes that all other
sectors of the economy in every country is dependent on the construction industry. This has made
remarkable contribution to sustainable economic development by satisfying some of the basic
objectives of development including output generation, employment creation, and income
generation and re-distribution (Ofori, 2015; Kazadi, 2020).Ullah et al. (2017) and Lesovik et al.
(2018) indicated that the construction industry is complex in nature because it is comprised of a
large number of parties such as clients, contractors, consultants, stakeholders, shareholders and
regulators. All these parties have a role to perform in ensuring that projects started are completed.
The Ministry of Water Resources Works and Housing in Ghana affirmed that a project is
considered abandoned if it is not completed on or later than the delivery date or there's no
significant activity on the development site. Olapade and Anthony (2012) added that an
abandoned construction project is uncompleted within the time-frame of the contract, the causes
and consequences of these construction project abandonments do not seem to be due to a single
cause, but rather to a combination of factors (Ayodele and Alabi, 2011). According to Doraisamy
et al. (2015) a number of these reasons include; lack of adequate funds and budgetary allocations
before projects are embarked upon, mismanagement, inefficient egal systems, unskilled
personnel, inadequate planning, corruption and compromises etc. The abandonment of projects
also has adverse effects on parties like the developer, contractor, consultant and client in terms of
relationship, reliability and reputation. There is growing concern about the underperformance of
building projects, and it has grown so concerning that it is urgently necessary to find a strategy to
avoid the occurrence of such incidents in the future. Looking at the current situation of most
building projects in Ghana, it is abundantly clear that construction projects in Ghana have been
plagued by construction suspensions (Addo, 2016). Doraisamy, et al. (2015) indicated, for a
lengthy moment, the subject of abandoned projects has not been given plentiful consideration,
specifically Ghana, resulting in negative consequences not just for the building industry but also
for the national economy as a whole. Williams, (2017) further acknowledged that the prevalence
of uncompleted building projects in Ghana is so concerning that it has a wide range of negative
consequences for keeping values, as well as owners, tenants, the urban community, and thus the
economy as a whole. It has been conveyed that not all construction projects started in Ghana are
completed due to a number of reasons even though these reasons differ from region to region
(Doraisamy et al., 2014; Shah, 2016), this is because all construction projects are unique (Mir
and Pinnington, 2014). According to Amponsah (2013), at least one out of every three
infrastructure construction projects in Ghana struggles or is unable to achieve one of the goals of
scope, cost, or time. The Acheampong government began a well-thought-out housing project for
the Ghana Police Service in Cape Coast, (Twumasi-Ampofo et al., 2014 citing from Ghanaweb,
2008).
BACKGROUND TO THE STUDY

The need and provision of housing have been a part of history. In order to protect themselves
from weather conditions, wild animals and to ensure security and privacy humans have always
sought shelter, for themselves and their families. However in the past these homes may have
lacked the amenities we enjoy today due to resources and underdevelopment in society.
Construction methods were limited to materials, labor and technology.

As civilization progressed and technology advanced people gained access to a way of life with
modern amenities. This led to the creation of types of houses with designs by architects. These
houses not serve as shelters. Also incorporate modern amenities. There are now materials, plants
and equipment produced for contemporary construction projects. Professionals such as architects,
builders, quantity surveyors, engineers, among others are trained in their fields to ensure
execution of these projects.
Despite all these, abandoned building projects still litters our society, causing problems like
security threats, promotion of illegal activities, unemployment, waste of human resources, poor
landscaping, etc. Therefore, I will start by defining the abandonment of building project, as an
act of giving up or stopping a building project with no intention of returning to it. Nobody
initiates a building project for abandonment, because an uncompleted building project is always a
source of sorrow to its owner, an unfulfilled hope and aspiration - a failure to achieve a purpose
(Olateju, 1997).
In Ghana, even parliament (Citi FM 2014) and the president (Joy News 2014) complain about
unfinished projects. Why would projects not be finished, despite politicians and voters alike
wanting them to be completed?
But it is rather unfortunate that in Ghana, when projects are abandoned there are no conscious
efforts to ensure completion, instead, new projects are embarked upon, putting money, materials,
time and effort to waste, and also, causing problem to the nation as whole. The situation of
abandoned projects is further compounded by the continuous award of new contracts which
eventually suffers the same fate (Frisch, 1996).
Amponsah (2013, p.3) estimates "that at least one out of every three infrastructural development
projects in Ghana either fails or is challenged to achieve one of the objectives of Scope, Cost or
Tim In a few cases they do not achieve the intended purpose for which they were undertaken
Sometimes, donor agencies are reluctant to provide aid for infrastructure projects due to
disappointing results of project outcomes (Daily Graphic, 2007: Amponsah, 2013). This has
resulted donor apathy towards projects in Ghana (World Bank report. 2007).Ghanaian
government projects have a high failure rate; there are numerous reported cases of abandoned
projects and projects not finishing on time, not being within budget, and not meeting
requirements and/or stakeholders' needs (Central Press, 2011; Daily Guide, 2012; GNA, 2012).
Over the years, significant amounts of money have been solicited from the International
Monetary Fund (IMF), World Bank and other donor agencies by the Ghanaian government to
embark on projects that seek to improve socio-economic development. Notable among them in
recent years is the US$547
Million under the Millennium Challenge Account (MCA) solicited in 2006 (Republic of Ghana
ministry of finance report, 2007).

We must really lay emphasis on the issue of failure and abandonment of building projects,
because, it creates a lot of problems for everyone, both within and outside the construction
industry and even on the economy as a whole. Likewise, the resources required to execute the
projects, which include: labour, equipment, time, material and money, are wasted and the
accommodation problem remains
Unsolved. Therefore, this study attempts to examine the causes, effects and possible solutions to
failure an abandonment of building projects in Ghana.

PROBLEM STATEMENT

The construction industry in Ghana is faced with a lot of problems, such as delayed
payments for work done, inadequate finance and shoddy work which leads to incompletion
(abandoned) of projects. In most parts of Ghana, it is common to see building projects that
are being disrupted and left uncompleted.

The incompletion (abandoned) of construction projects pose several risks to the parties
involved in the project. To the clients, it being the government, corporate or individual
client the initial finance allocated for the project will go waste since the project was not
completed to be able to serve it intended purpose or there will be an increase prices of
materials and labour which will lead to the overall increment in the price of the project in
a situation where the project will be executed in the future. Project incompletion
(abandonment) also bring great effect on the construction industry which ultimately
contributes to the downfall of the economic growth of a country (Doraisamy et al., 2015).
Olalusi and Otunola (2012) in their study reported that project abandonment by the public
sector is continuously posing serious challenges to the stakeholders in the built
environment. Doraisamy et al., (2015) stated that issue of project abandonments is
plaguing the construction industry in many countries. According to Efenudu (2010), the
following are the general consequences of non-completion/abandonment of building
projects: wasting of resources; decrease in land value; and loss of community and
neighborhood aesthetic values. In the case of loss of community and neighbourhood
aesthetics values, Ihuah and Benebo (2014) reported that anticipated construction projects
are intended to improve the urban environment upon completion, but when these projects
are abandoned, there is a loss of community and neighbourhood aesthetics characteristics.
When urban developments are abandoned, they have an effect on the ecosystem in the
form of visual and vegetation changes, habitat losses, and waste (Carrero et al., 2009). In
terms of diminishing real estate and its valuation, project abandonment has an effect on
properties within a neighborhood by decreasing property prices (Efenudu, 2010).
Resource waste has been described as a direct result of project abandonment (Doraisamy
et al., 2015). When a proposal is cancelled, it leads to the waste of money and the lack of
tax revenue (Ayodele and Alabi, 2011).
Using the Komfo Anokye Teching Hospital maternity block as an example, the project
commenced in the year 1976 and was abandoned for over 42 years when works was to be
started again all assessments conducted shows that the building has lost all it structural
strength and the was a need for it to be demolished and start everything from scratch again,
this cost the state huge sums of money and will go down in history in history books as one
of the biggest lost that a state has ever incurred because it will require funding for
demolishing and reconstruction.

JUSTIFICATIONS

Conducting this study in Ghana will go a long way to benefit the Ghanaian construction industry
and the government of Ghana as a whole by throwing more light on the extent of uncompleted
(abandoned) projects, the main reasons why the fails and how the failure affects the key
stakeholders negatively. This will help clients e.g. government, corporate institutions and
individual clients to be more proactive in the awarding of contracts.
This study will also do well to the theories of future projects, project incompletion, causes of
project failure and abandonment and the effects of project failure and abandonment on in the
developing countries. This will also make contribution to both practical and academic fields. This
study will also be of benefit to other researchers who seeks to know more on the field of study
and can also be used by non-researchers.
RESEARCH QUESTIONS

This research seeks to answer the following questions

1. What are the causes of project incompletion (abandonments) in the Ghanaian

construction industry?
2. What are the effects of project incompletion (abandonments) on the Ghanaian
construction industry?
3. What are the mitigation measure that should be put in place to in other to avoid or
eliminate project incompletion (abandonments) in the Ghanaian construction industry?

AIM STUDY
The main aim of this study is to improve project delivery and also cut down the rate of
uncompleted projects and the rate at which projects are abandoned.

OBJECTIVES OF STUDY

This study is said to

1. Identify and evaluate the possible factors that causes the incompletion of and
abandonment of construction projects in Ghana.
2. Examine the effects of the uncompleted and abandoned construction projects in Ghana.
3. Propose possible solutions to the causes of project incompletion and abandonment.

RESEARCH METHODOLOGY

In line with achieving the objectives set for the study, the following research methods will
be adopted for the study. This study is fact-finding in nature, hence, data will be gathered
through surveys to obtain the needed information. Data will be gathered from both primary
and secondary sources. Questionnaires will distributed and one-on-one interactions with
some key players in the construction industry will be conducted. The quantitative method
of data analysis will be implored in this study. The data gathered will be analyzed
descriptively and presented using tables with the aid of Statistical Package for Social
Sciences (SPSS).

RESEARCH SCOPE OF THE STUDY

The scope of this study will be within the Oforikrom and the Ejisu municipal assemblies and also
the Sene East district. The study looked at uncompleted and abandoned in this areas.

The Ejisu Municipal Assembly, Oforikrom Municipal assembly and the Sene East District
Assembly, will all be consulted to obtain data for this research work.

SIGNIFICANCE OF RESEARCH
The significance of this research is to enhance the efficiency of delivering building construction
projects, by identifying the causes of uncompleted (abandoned) projects on building construction
projects, the effects it has on the Ghanaian construction industry and to determine mitigation
strategies that can be put in place to improve building construction project delivery.

RESEARCH PLAN

Basically, this study is to assess the Ghanaian construction industry and identified the causes and
effects of that the construction industry faces when projects are left uncompleted. It was an
observed fact that, construction projects were not completed and are mostly left unattended and
if possible suggest some mitigation measures that could be implemented to curb the increase in
abandoned project in the Ghanaian construction industry. The results of this research is to be
obtained by bringing the knowledge of the various stakeholders on board through questionnaires
and later this with be analyze in other to get the findings of this research which will help get the
best mitigation measures for this research work.
The study will not only contribute to knowledge, but will also be beneficial to the key
stakeholders in the industry since the findings will be used by them in their decision-making
process. The study will also be beneficial for future reference.

ORGANIZATION OF STUDY
The study was organized into five chapters. Chapter one covered the background of the study,
statement of the problem, the objectives of the study, research methodology adopted,
significance of the study and the organization of the study. Chapter two will continue with the
past studies on the causes of construction uncompleted projects and its adverse effects. The
Ghanaian construction industry will also reviewed. Chapter three presented the methodology of
the study, whiles results, analyses of data from the survey and discussions were presented in the
fourth chapter. Chapter five which is the last chapter presented the findings of the study and also
offered some mitigation measures that can be put in place to reduce construction incompletion
(abandonments).
REFERENCES (BOOKS AND ARTICLES)
Assessment of Causes, Effects and Solutions to Abandoned Building Projects in Ghana Prince
Elisha Nsiah-Asamoah scholarly journal of arts & humanities| published by dama academic
scholarly & scientific research society.

Durdyev and Ismail (2012), factors causing cost overruns in construction of residential projects;
case study of turkey.
https://www.researchgate.net/publication/327560967_FACTORS_CAUSING_COST_OVERRU
NS_IN_CONSTRUCTION_OF_RESIDENTIAL_PROJECTS_CASE_STUDY_OF_TURKEY

Nkechi Owoo & Monica P. Lambon-Quayefio, 2018. "The role of the construction sector in
Ghana," WIDER Working Paper Series wp-2018-119, World Institute for Development
Economic Research (UNU-WIDER).

Doraisamy, et al. An Overview on the Issue of Delay in the Construction Industry (2015)
https://www.researchgate.net/publication/300177825_An_Overview_on_the_Issue_of_Delay_in
_the_Construction_Industry.

Ayodele and Alabi Corruption in the construction industry of Nigeria, 2011

https://www.researchgate.net/publication/370211655_Corruption_in_the_Construction_Industry
_of_Nigeria_Causes_and_Solutions.

Mir and Pinnington, Exploring the value of project management, 2014

https://www.researchgate.net/publication/259512543_Exploring_the_value_of_project_manage
ment_Linking_Project_Management_Performance_and_Project_Success.

(Central Press, 2011; Daily Guide, 2012; GNA, 2012).

An investigation into the causes and effects of project failure in government projects in
developing countries: ghana as a case study, isaac sakyi damoah 2015
https://researchonline.ljmu.ac.uk/id/eprint/4513.

An assessment of the causes and effects of abandonment of development projects on real

property values in Nigeria, Paulinus Woka Ihuah
https://www.researchgate.net/publication/265793952_An_assessment_of_the_causes_and_effect
s_of_abandonment_of_development_projects_on_real_property_values_in_Nigeria.