Impact of Construction Project Failure on Key Project Stakeholders: Assessing the Perspectives of Professionals in Lagos Metropolis
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Construction project delivery fosters progress and development in society, whereas failures can lead to diverse and sometimes severe consequences, particularly for the most affected stakeholders. The purpose of this paper is to investigate the multifaceted effects of construction project failure, with an emphasis on understanding their impact on key stakeholders, including clients, the general public, contractors, and consultants, in the context of developing countries such as Nigeria. Data were collected through a purposively administered questionnaire survey of stakeholders consisting of clients, contractors, and consultants in Lagos, Nigeria. Analysis was done using thematic analysis, the relative importance index, and Spearman's correlation coefficient. The findings reveal that the financial and economic impact, characterized by loss of revenue, bankruptcy, and cost escalation, stands as the most significant consequence of project failure. Among the stakeholders, clients were perceived as being most severely affected by the failure of construction projects, followed by the general public, contractors, and consultants. This study using qualitative analysis provided broad categories that encompass the identified effects of construction project failure, offering a foundational template for future research. The research findings on the disproportionate impact of project failures on clients, positioning them as the primary affected stakeholder group, are pivotal. This information shifts the focus toward understanding the unique challenges faced by clients in construction project failures. Lastly, delving into the effects of construction project failure underscores the need for robust management strategies to mitigate these impacts, particularly for the most vulnerable stakeholders.
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