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EFFECT OF COVID-19 ON CONSTRUCTION SECTOR

CHAPTER ONE

INTRODUCTION

1.0 BACKGROUND OF THE STUDY

The COVID-19 pandemic has devastated the world of works. Its impact, which varies across sectors, has been significant in the construction sector.The construction sector has an important role to play within the overall economy of any given country. How that role manifests itself will vary greatly from one nation to another, in developing countries it is likely that the extraction of raw materials and the on-site construction activity is of most importance, as the country seeks to set up a significant infrastructure, in the form of roads, railways and buildings.Construction sector activities include the construction, renovation, maintenance and demolition of buildings (residential and non-residential), as well as work conducted in civil engineering projects such as roads and utility systems(ILO 2015).A variety of market segments are involved, including architecture and design, equipment and material manufacture, transportation, and energy and waste management. Value is added by transforming source materials into capital assets essential both for economic activity and the delivery of infrastructure services. The construction sector has its significant impact on income generation and poverty reduction. Its significant job creation potential also comes from its labour-intensive nature and strong links with other economic sectors.In the first three months after COVID-19 emerged Wuhan City, Hubei Province, China, a devastating number of new cases were reported across China and several countries around the world. And it was finally declared as a global pandemic by the World Health Organization (WHO) on March 2020 (WHO 2020). Evidence indicates that COVID-19 transmitted through respiratory droplets via contact routes such as the mouth, nose, and conjunctiva or eyes (UNICEF 2020).However it was necessary for countries to effect total Lock downs of virtually every type of gathering place, stay-at-home measures instituted to combat the spread of the virus and at extreme pushing construction workers to leave their work site and abandoning important projects.

1.2 STATEMENT OF THE PROBLEM

At the outbreak of covid-19 pandemic, the entire world came to a standstill. This pandemic affected not only human health but also the operational health of businesses and organization, the construction industry inclusive. Professional bodies such as CIOB, RICS and the likes in an attempt to preserve “construction businesses” are rolling out strategies to enable smooth sailing and transition into the new dispensation. The “Roadmap to Recovery” prepared by Construction Leadership Council (CLC) requires the construction industry to ‘reinvent’ by safeguarding ‘construction businesses’ and work .In Nigeria the effects of the COVID-19 pandemic in relation to projects raised as a result of: (i) regulatory pronouncements by federal and state governments restricting movements, shutting business operations (including construction activities as in the case of Lagos State) and imposing health and safety measures to contain the spread of the virus such as requirements for social distancing and constraints on public gatherings; (ii) circulars by industry regulators such as the Department of Petroleum Resources (“DPR”) directing the demobilization of all non-essential staff at the offshore site and imposing health and safety measures to contain the spread of the virus at project and construction sites; (iii) disruptions to supply chain and stalled importation of construction equipment and material; (iv) escalation in the costs of construction due to inflation and currency fluctuation collaboratively as it restores (CIOB, 2020a). The Nigerian economy was negatively impacted especially in the country’s capital (Abuja) and financial centre (Lagos). However it is against this backdrop that this study seeks to examine the effect of covid-19 lock down on construction sector.

1.3 Objective of the study

The purpose of this study is to examine the effect of covid-19 lockdown on construction sector in Nigeria. Specifically this study seeks to find out if the covid-19 lock led to obstruction of work of construction sectors. The study also examine if construction sectors had access to raw materials for construction. The study also examine if there was reduction in revenue generation of construction sectors due to the covid-19 lock down.

1.4 Significance of the study

The study in its entirety would be helpful to the general body of knowledge.it would be helpful for the construction sector as this study would enable them to develop meaningful strategies that would enable combat challenges facing the sector during post-covid-19 era. Moreso it will enable professional bodies of leaders of construction sector on the need to organize training for their members in other to brace up to meet up with covid-19 safety guidelines. This study finally would give opportunity for furthers studies related to this the variables on discourse

1.5 Research Question

1. Did the covid-19 lock lead to obstruction of work of construction sectors?

2. Did construction sectors had access to raw materials for construction during the covid-19 lockdown?

3. Was there a reduction in revenue generation of construction sectors due to the covid-19 lock down?

1.6 Scope of the study

This study focus on examining the effect of covid-19 lockdown on construction sectors in Nigeria. The study is delimited to Geneks Nigeria Limited, Lagos State.

1.7 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

However in the midst above mentioned limitation the researcher devotedly ensured that the purpose of the study was actualized.

1.8 Definition of Terms

COVID-19:Corona virus disease 2019 (COVID-19) is defined as illness caused by a novel corona virus called severe acute respiratory syndrome corona virus 2 (SARS-CoV-2.

Lockdown:A lockdown is a restriction policy for people or community to stay where they are, usually due to specific risks to themselves or to others if they can move and interact freely.

Construction: Construction is a general term meaning the art and science to form object and systems.construction covers the processes involved in delivering buildings, infrastructure and industrial facilities, and associated activities through to the end of their life

Construction Sector:construction sector as companies that are engaged in the construction of buildings or engineering projects, such as bridges and roads. Construction industry comprises of professional architect, builders,engineers and others

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