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Influence of Project Planning Processes on Construction Project Success in

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European Journal of Business and Management www.iiste.org
ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)
Vol.12, No.9, 2020

Influence of Project Planning Processes on Construction Project

Success in Nigeria
Khadija Kubra Ibrahim Dr. Cross Ogohi Daniel
Department of Business Administration, Nile University of Nigeria, Abuja FCT

Abstract
The success or failure of any construction project begins from the planning stage. Thus, the aim of this study
investigates the influence of 19 project planning processes on construction project success measured by project
efficiency and project effectiveness and also identify the most critical planning processes which have the highest
influence on construction project success in Nigeria. In this study, a structured questionnaire was developed by
using Likert scale and applied on 60 respondents. A total of three organizations in the Federal Capital Territory
were surveyed. Construction project success acts as independent variable while project planning processes as
dependent one. The method used for the research is quantitative and applied survey instrument for data collection.
For data analysis purpose, SPSS is used for descriptive statistics. The results have shown that Creation of Work
Breakdown Structure (WBS), Program Evaluation Review Technique (PERT) or Gantt Chart, Project Schedule
Network, Determine Budget and Quality Management Plan have the highest awareness and usage by the selected
firms and WBS has been found to be the most significant planning process. Additionally, the correlation between
total level of planning and project success rho (60) = -.493 with p=.032, and between total level of planning and
the efficiency component of project success rho(60) =- .618 with p=.005, were statistically significant , given ɑ
= .05 (two tailed) while the correlation between total level of planning and the effectiveness component of project
success was not statistically significant. Overall, an increasing awareness of project planning processes was
observed and that has also led to the success of construction projects. The findings of this research therefore signify
the necessity of frequent use of some other project planning processes like risk management plan, activity resource
requirements in other to see better performance of construction projects. Continuous development seminars and
trainings in project management should also be organized for all professionals in the sector both in private and
government organizations.
Keywords: project planning processes, project success, construction projects.
DOI: 10.7176/EJBM/12-9-05
Publication date:March 31st 2020

1. Introduction
Construction Projects have a major role in the economy of many countries and especially in developing countries.
According to Olawale & Sun (2010), the construction industry contributes to the GDP and employment rate of
many nations and for this reason, it is considered vital for the economic development of any nation. According to
the Nigerian National Bureau of Statistics (NBS), economic growth in 2018 was driven by the non-oil sector,
principally the construction and real estate sectors, which include cement and wood manufacturing. In this regard,
the Nigerian federal government has earmarked about 30% of its 2018 budget on infrastructure projects. The
capital expenditure has provided a stimulus for the construction industry and gear toward housing development
(Nigeria Construction Equipment, 2018).
Ameh and Odusami (2010) stated that construction industry in Nigeria comprises a group of heterogeneous
and fragmented firms and, within firms, there is often a great diversity of activities. In addition, they added that a
large construction company may be engaged in activities ranging from general building and civil engineering to
material manufacturing, property development, and trade specialization. According to Menches, Hanna, Nordheim
& Russel (2008), performance of any construction project involves numerous processes, with various permutations
of stakeholders, typically including procurement, design, planning, execution and management of diverse tasks,
control, site management and project closeout. Thus, the success of any project is measured by its end time, within
the budget cost and meets the planned performance based on the initial plan. Hence, planning has an important
role on the project success.

1.1 Statement of the Research Problem

Despite the efforts by all players in the construction industry, many construction projects in Nigeria and generally
in the region run a high-risk poor performance by being well over budget and significantly late. The construction
industry generally has poor planning and poor schedule performance. While some degree of poor planning and
time schedule performance is inevitable in construction projects, it is possible to improve the project planning
processes and techniques to minimize their negative impact thus improve the project performance.
There are several activities to be executed to achieve the planning stage entirely and each of these activities
has different contributions to make for the project’s success. These activities require significant time and effort of

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Vol.12, No.9, 2020

the project manager. However, it is clear that the project manager has limited time scheduled for numerous
responsibilities and tasks. Hence, this study aims at determining the effects of project planning processes on the
project success especially in the construction sector.

1.2 Statement of Research Questions and Hypotheses

This study will address the following research questions: What is the level of importance attached to project
planning processes in construction projects in Nigeria? And what are the most critical planning processes, which
have the highest influence on construction project success?
Hypothesis one (ho1): There is no statistically significant correlation between construction project success and
the overall level of planning of a project.
Hypothesis two (ho2): There is no statistically significant correlation between construction project success and
the level of usage of each planning processes.
The findings from this study will be useful in determining the level of importance attached to project planning
processes in construction projects in Nigeria and to identify the most critical planning processes which have the
highest influence on construction project success. Thus, this study will investigate the correlations between project
planning processes and construction project success. This research aims to describe, explain, and predict the
choices made at construction project planning phase of a project. The research addresses how these choices are
framed and evaluated in the decision making process.
The rest of the study would be divided into the following sections: Literature review of the relevant concepts
such as project planning processes, construction project success and Nigerian construction industry. Also in this
section, findings from recent related studies will be reviewed. The third section discusses the methodology adopted
for the purpose of the study. The fourth section presents the results and analysis while the fifth section contains
the summary of findings made recommendations for the management of construction companies as well as for
further studies.

2. Literature Review
2.1 Conceptual and Theoretical Framework
Planning is the second phase of a project, following initiation and prior to execution and closure (PMI, 2013).
Project planning stipulates a set of decisions concerning the ways that things should be done in the future, in order
to execute the plan for a desired product or service. PMI (2013) specified that the Planning Process Group consist
of those processes performed to establish the total scope of the effort, define and refine the objectives, and develop
the course of action required to attain those objectives. In addition, those Planning processes develop the project
management plan and the project documents that will be used to carry out the project.
The goal of the planning phase of a project is to prepare the structure for project execution and control.
According to Idoro (2012a), project planning and project performance are two complementary activities in project
management and the basis of project success or failure is defined in project planning. The conceptual framework
for this study is derived from the literature review that has identified the processes at the planning stage and
suggested measures of project success of construction projects. PMBOK (PMI, 2013) identifies the standards
processes that should be performed by a project manager. Of the 47 processes identified in the guide, 24 (51%)
are planning processes. 19 out of 24 project planning processes identified by the PMBOK® are measured in this
study. According to PMI (2013), those processes consist of “Project Management Plan, Project Scope Document,
Requirements Document, Design Specification, Work Breakdown Structure, Project Schedule/ Activities list,
Project Schedule/ PERT or GANTT Chart, Project Schedule/ Activity Duration Estimates, Develop Project
Schedule, Project Staff Assignments, Role and Responsibility Assignments, Activity Resource Requirements,
Activity Cost Estimates, Determine Budget, Quality Management Plan, Communication Management Plan, Risk
Management Plan/ Risk Register, Procurement Management Plan and Stakeholder Management Plan”. Therefore,
in order to find out the critical planning processes from the whole on project success measured by efficiency
(project schedule and cost) and effectiveness (project performance and customer satisfaction) of the project, this
study followed the conceptual framework shown in Figure 1.
Project success is measured by project efficiency and project effectiveness. Youcef and Nils (2017) defines
project efficiency as the production of an output in a qualified and competent way in terms of the agreed scope,
cost, time and quality, where quality is not a constraint per se but is often a by-product of the other three factors
(scope, time and cost). Efficiency is more about comparing the outputs of the project to its inputs. In this study,
project efficiency is measured in the development of construction projects by project cost and project schedule.
According to Olsson (2008), effectiveness can be related to doing the right things and it is an external type of
measurement. He added that the effectiveness of a construction process can be seen as the ability of the process to
satisfy the requirements, objectives and priorities related to customers in the construction industry, primarily the
project owners. Effectiveness is focused on how the construction process contributes to increased value for the
owners and users. In this study, project effectiveness is measured in the development of construction projects by

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customer satisfaction and the overall project performance.

Figure 1: Conceptual Framework

However, the structure of Nigerian construction industry is very complex in that it has a wide range of
different types of clients and contractors (Adamu & Kolawole, 2011). The professionals in the industry are group
of individuals often assembled into temporary and functional teams which include; architects, engineers, estate
surveyors, project managers, quantity surveyors (Mudi et al., 2015). They added that this group of professionals
is expected to possess the relevant skills, knowledge, tools and techniques to achieve the project goals. According
to Idiake & Bala (2012), in Nigeria the construction companies are categorized on the scope of operation,
ownership and management control. Trading Economics (2019) showed that GDP from Construction in Nigeria
averaged 574132.56 NGN Million from 2010 until 2019, reaching an all time high of 747860.30 NGN Million in
the second quarter of 2018 and a record low of 369190.91 NGN Million in the third quarter of 2010.
However, in construction projects we make a lot of decisions in the planning phase. Most are critical and can
cause the project to be successful or to fail. According to Parth (2013), decision-making is critical to being
successful as a project manager and it is something we do on a daily basis as we juggle schedule, resources, risks,
quality, and other factors. He also added that the academic world has taught for many years that decision-making
should be rational, looking at all possible facts and logically arriving at the best solution. Therefore, decision
rationality, as expressed in decision theory, economics and finance, has contaminated the conceptual
underpinnings of many practical tools for project selection, organization, contact design, and activity planning
(Garvin and Ford, 2012). From this perspective, project planning is a series of decision moments, in which planners
choose between alternative projects or output parameters; designing a contract is allocating responsibilities and
risks between parties given the uncertainties and means of control that characterize its object (von Branconi and
Loch, 2004). And operational planning, guided by tools such as work breakdown structure, is a consistent
programming of activities, given their anticipated length, dependencies and uncertainties.

2.2 Empirical Review

While planning typically is a fraction of overall project effort, it has a disproportionate impact on project success.
Zwickau (2009) studied the contribution of the PMBOK® Guide’s nine knowledge areas to project success. He
reported that the knowledge areas related to the planning phase had the highest impact on project success “the
more frequently planning processes which are related to these Knowledge Areas are performed, the better project
success is”. Conversely, “Cost and Procurement are the Knowledge Areas that contribute least to project success,
maybe because they are practiced mainly during project execution”. According to Singh et al. (2017), The

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Vol.12, No.9, 2020

relationship between process group planning and project success was investigated on real estate companies using
Pearson product - moment correlation coefficient (r). There was a moderate, positive correlation between the two
variables, r = 0.475, n = 641, p < .01 (statistically significant). Hence, as the practice of project planning process
group increases, there is a high likelihood that project success will also increase. Additionally, Zwikael (2009)
conducted a study on 555 projects managers across four industries spanning three countries. He found that relative
to other industrial sectors, organizations belonging to the construction sector obtained high quality of project
planning and the highest success rate. He also identified that the processes that have the greatest impact on project
success are “Activity Definition” and “Project Plan Development”.
Similarly, Choma and Bhat (2010, p.5) analyzed 73 projects from 49 different organizations. They reported
“As would be expected, the projects with the worst results were those that were missing important planning
components at authorization”. However, they did not find a correlation between time spent in the planning phase
front end loading (FEL) and project success. Through a survey of 1,386 projects, Serrador and Turner (2015) also
demonstrated that project efficiency correlates moderately strongly to overall project success. They asserted that
project efficiency, which is mainly dependent on time and cost performance, is an important contributor to project
success.

3. Methodology
In alignment with the research objectives, the research model, which is shown in Figure 1, aims at investigating
the influence of 19 project planning processes on four project success measurements in the construction sector, in
order to find the planning processes which have the most significant impact on project success. This research is
quantitative. The research used two data collection approaches, physical (questionnaire), online surveys and
literature review. A total of 70 questionnaires were administered to professionals from the selected construction
companies namely Julius Berger Nigeria PLC, Bilaad Realty Nigeria and Zavati Construction. The population of
the study comprised of registered project managers, consultants, engineers and contractors in three construction
companies. Random sampling and purposive sampling techniques were used in this study. The research validity
has been evaluated by comparing the overall planning index (PPI) with the project success. The PPI index has
been calculated from the questionnaires as the average of all nineteen planning items and to test the reliability of
the instrument, the Cronbach Alpha test is used. Also the statistical analyses of the two hypotheses are provided
below using spearman correlation at 95% confidence level. Statistical Package for Social Sciences (SPSS) is used
for the statistical analysis for the questionnaire.

4. Results
4.1 Descriptive Statistics
Name of Organizations

Project Planning Processes Zavati Ebuild Bilaad Realty Julius Berger Online
Level of utilization (mean) Level of utilization (mean) Level of utilization (mean) Level of utilization (mean)
Effectiveness Efficiency Effectiveness Efficiency Effectiveness Efficiency Effectiveness Efficiency Total
Project Management Plan 3.4 3.4 3.4 3.3 3.9 4 4 4 29.4
Project Scope Document 3.1 3.1 2.8 3 4 4 3.8 4 27.8
Requirements Document 2.6 2.8 2.7 2.7 4 3.9 3.7 3.9 26.3
Design Specification 3.6 3.6 2.5 2.5 4 4 3.6 3.8 27.6
Work Breakdown Structure (WBS) 3.2 3 2.7 3 3.4 3.5 3.5 3 25.3
Project Schedule/ Acitivities list 3.2 3.2 2.8 2.5 3.5 3.5 3.8 4 26.5
Project Schedule/ PERT or Gantt
Chart 2.6 2.6 2.6 2.3 3.4 3.8 3.5 3.8 24.6
Project Schedule/ Activity Duration
Estimates 2.8 3 2.8 3 3.5 3.5 3.6 3.7 25.9
Project Schedule/ Activity Start and
End Dates 3 3.2 2.6 2.7 3.5 3.5 3.5 3.4 25.4
Project Staff Assignments 3.3 3.3 2.9 3 3.6 3.2 2.8 3.2 25.3
Project Schedule/ Role and
Responsibility Assignments 3.4 3.4 3 3 3.3 3.7 3.3 3.5 26.6
Project Schedule/ Activity
Resource Requirements 3.3 3 3.1 2.7 3.6 3.6 3.4 3.6 26.3
Acitvity Cost Estimates 3.8 3.8 3.3 3.5 3.6 4 3.8 3.8 29.6
Time-phased Budget 3.1 3 3.2 3 3.5 3.3 3.3 3 25.4
Quality Management Plan 3.5 3.5 3.1 3 3.6 3.6 3.5 3.4 27.2

Communications Management Plan

3.4 2.8 2.9 2.9 3.5 3.5 3.2 3 25.2
Risk Management Plan/ Risk
Register 3.3 3.3 2.6 2.6 3.7 3.6 3.3 3.7 26.1
Procurement Management Plan 3.5 3.4 2.9 2.9 3.3 3.7 3.4 3.5 26.6
Stakeholder Management Plan 3.2 3 2.8 2.6 3.6 3.8 3.6 3.8 26.4

Average PPI 3.2 3.18 3 2.9 3.6 3.7 3.5 3.6

Overall PPI 3.2 3 3.7 3.6

Total 61.3 60.4 54.7 54.2 68.5 69.7 66.6 68.1

Var 0.094 0.086 0.060 0.08 0.047 0.055 0.069 0.110 0.600

k 8
Sum Var 0.60
Var 1.72
Alpha 0.744

Table 1: Validity and Cronbach Alpha Test of Reliability for the Instrument

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Statistics
position
N Valid 60
Missing 6
position
Cumulative
Frequency Percent Valid Percent Percent
Valid Owner/Client 4 6.1 6.7 6.7
Contractor 6 9.1 10.0 16.7
Consultant 13 19.7 21.7 38.3
Project manager 27 40.9 45.0 83.3
Engineer 10 15.2 16.7 100.0
Total 60 90.9 100.0
Missing System 6 9.1
Total 66 100.0
Table 2: Position held by Respondents

4.2 Correlation Results

Hypothesis one: There is no statistically significant correlation between construction project success and the
overall level of planning of a project.

Correlations
PROJET
EFFECTIVENESS EFFICIENCY SUCCESS
Spearman's rho TOTAL LEVEL OF Correlation -.259 -.618 -.493
PLANNING Coefficient
Sig. (2-tailed) .283 .005 .032
N 60 60 60
Table 3: Correlation between Level of Planning and Project Success

Hypothesis Two: There is no statistically significant correlation between construction project success and the
level of usage of each planning processes.
Correlations
PROJET
EFFECTIVENESS EFFICIENCY SUCCESS
Spearman's rho Project Correlation Coefficient .306 .014 .194
Management Plan Sig. (2-tailed) .017 .914 .137
N 60 60 60
Project ScopeCorrelation Coefficient .234 .108 .172
Document Sig. (2-tailed) .072 .410 .190
N 60 60 60
Requirements Correlation Coefficient .427 .015 .242
Document Sig. (2-tailed) .001 .912 .062
N 60 60 60
Design Correlation Coefficient .433 .028 .287
Specification Sig. (2-tailed) .001 .833 .026
N 60 60 60
Work BreakdownCorrelation Coefficient .523 .319 .513
Structure Sig. (2-tailed) .000 .013 .000
N 60 60 60
Activities List Correlation Coefficient .286 .044 .205
Sig. (2-tailed) .027 .738 .116
N 60 60 60
PERT or GanttCorrelation Coefficient .474 .314 .496
Chart Sig. (2-tailed) .000 .014 .000
N 60 60 60

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Activity DurationCorrelation Coefficient .293 .062 .198

Estimate Sig. (2-tailed) .023 .638 .129
N 60 60 60
Project ScheduleCorrelation Coefficient .323 .322 .408
Network Sig. (2-tailed) .012 .012 .001
N 60 60 60
Project StaffCorrelation Coefficient .289 -.161 .077
Assignments Sig. (2-tailed) .025 .219 .560
N 60 60 60
Role andCorrelation Coefficient .032 -.185 -.096
Responsibility Sig. (2-tailed) .806 .156 .466
Assignments N 60 60 60
Activity ResourceCorrelation Coefficient -.107 .085 .004
Requirements Sig. (2-tailed) .414 .520 .978
N 60 60 60
Activity CostCorrelation Coefficient .204 .031 .094
Estimates Sig. (2-tailed) .119 .814 .474
N 60 60 60
Determine Budget Correlation Coefficient .290 .277 .335
Sig. (2-tailed) .025 .032 .009
N 60 60 60
Quality Correlation Coefficient .248 .304 .376
Management Plan Sig. (2-tailed) .056 .018 .003
N 60 60 60
Communication Correlation Coefficient .436 -.174 .142
Management Plan Sig. (2-tailed) .000 .184 .279
N 60 60 60
Risk ManagementCorrelation Coefficient .078 .068 .072
Plan Sig. (2-tailed) .552 .606 .582
N 60 60 60
Procurement Correlation Coefficient .231 .098 .161
Management Plan Sig. (2-tailed) .075 .455 .220
N 60 60 60
Stakeholder Correlation Coefficient .272 -.040 .156
Management Plan Sig. (2-tailed) .035 .761 .234
N 60 60 60
Table 4: Correlation between construction project success and the level of usage of each project planning
process

4.3 Discussion of Findings

Analysis of hypothesis one explored the relationship between the level of planning observed on construction
projects and the success of these projects. We found a statistically significant correlation between the overall level
of planning applied to construction projects and both the efficiency component of project success and total project
success. The correlation between level of planning and project effectiveness was not statistically significant. Thus,
this implies that construction projects were completed as scheduled and according to budget or plan. However,
even though those construction projects were considered a success and the projects objectives were completed, the
quality of the result was not always perceived as expected.
The overall level of planning as measured in this study is a function of the level of usage of nineteen individual
project planning processes. Analysis of hypothesis two found that use of five individual planning processes out of
nineteen had a statistically significant correlation with total project success measured by project efficiency and
project effectiveness. This means that project managers, in the construction sector do not consider some planning
processes while planning their projects. In addition, this study also found that use of several individual planning
processes had a significant correlation with project effectiveness only. Use of project management plan,
requirements document, activities list, Activity duration estimate, project staff assignments, communication
management plan and stakeholder management plan were most effective in supporting project success. Use of
requirements document was the planning process that had a significant correlation with project effectiveness

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among the rest. It can be speculated that clear definition of product requirements early in the project will allow
clear assignment and execution of tasks to complete the project on schedule. Creation of the Work Breakdown
Structure has been found the most critical planning process for the construction sector, significantly influencing
project success. However, some planning processes receive less attention than is expected. Use of Project Scope
Document, Activity Resource Requirements, Role and Responsibility Assignments, Risk Management Plan,
Project Staff Assignments and Procurement Management Plan processes displayed a relatively low usage.

5. Conclusion
5.1 Summary of Findings
The results of study reported in this research work indicate a significant effect of the use of processes related to
project planning on project success, especially in carrying out construction projects. Additionally, the results
obtained from the assessment of both variables demonstrate a significant level of project management processes.
However, not all of the 19 project planning processes analyzed in this study and included in the PMBOK have an
equal impact on project success. The six processes with the highest impact include Work breakdown Structure,
utilization of PERT or Gantt Chart in the project, Development of a Project Schedule Network, Quality
Management Plan, Determination of the Project Budget and Design Specification of the Project.
By far, the Creation of the Work Breakdown Structure (WBS) is the most significantly critical planning
process. This process is part of the project scope document knowledge area and is detailed described in the project
management literature. In order to correctly execute this planning process, a project manager has to define
activities. Then, decomposition is required, subdividing the project work packages into smaller, more manageable
components, called activities. The two low impact processes include: Risk Management Plan and Activity
Resource Requirements. Obviously, it is impossible to execute a project without performing these processes. One
may also assumes that each project manager may perform the above processes in different ways, without his
awareness concerning their actual execution.

5.2. Recommendations
Based upon the above conclusion and findings of the study, this research work is focused on the following
recommendations to enhance the use of project planning processes by project managers in the creation of
construction projects in Nigeria.
i. This research work recommends the use of a formal and structured project planning processes and with
the involvement of project mangers in the construction sector in Nigeria.
ii. Professionals in the industry such as project managers, engineers, contractors should explore more
frequent use of some other project planning processes like risk management plan, activity resource
requirements in other to see better realization of construction projects.
iii. This study also proposes continuous development seminars and trainings in project management for all
organizations in Nigeria and especially those in construction projects planning and procurement
departments of both private and government organizations.
iv. Project managers should always and in a continuous manner, plan, do, check and act, throughout the
creation process of construction projects, in other to see continuous improvements.

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