ASSESSMENT OF PROJECT PLANNING PRACTICES AND ITS IMPACT ON CONTRACTORS PROFITABILITY

ABSTRACT

The growing intricacy of society and intense rivalry in the construction sector necessitate contractors, project managers, and construction organisations to engage in meticulous planning to guarantee project success and profitability. This study investigated the influence of project planning on a contractor's financial gain. The aims of the study were to ascertain the project planning techniques and tools employed by contractors in construction project execution, analyse the factors influencing contractors' project planning practices, and assess the effect of effective project planning on contractors' profitability. The research methodology included a survey design, with a standardised questionnaire that was presented to a sample of 50 respondents in Owerri, Imo, Nigeria. The data analysis involved the utilisation of Spearman Ranked Correlation, Chi Square, and other descriptive statistical approaches. The study's findings indicate that the Gantt chart, with an average score of 4.83, is the most frequently utilised tool by contractors for project planning. Additionally, the most prevalent aspect that hampers the efficacy of project planning is the lack of alignment between project funds and project plans, with an average score of 4.70. The Spearman Ranked Correlation test revealed a substantial positive link between the level of application of project planning procedures and contractors' profitability, suggesting that better project planning is associated with higher profitability for contractors. The study determines that the planning efforts of a project have an impact on the profitability of contractors in the delivery of construction projects. The recommendations proposed were that project management teams should familiarise contractors with the importance of project planning and its advantages. In order to prevent the unnecessary purchase of materials that will not be immediately used during the construction of lifts that require heavy gear and storage facilities, clients should clearly describe their project requirements and select a contractor accordingly.