Project Management Structure for Public Facilities in Nigeria

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2. Presentation Title SPEAKER: DR. EDORODION OYE ERIMONA HONOURABLE COMMISSIONER, MINISTRY OF PHYSICAL PLANNING AND URBAN DEVELOPMENT, EDO STATE TOPIC: PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA TIME: 12:00 – 12:45

3. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA INTRODUCTION The term project is not limited to only the physical activities involving men, materials and machinery but covers the entire array of activities from conception to its realization. While management is a social process by which a superior directs the action of subordinates towards accomplishing a common goal [Drucker, P. F.: The Practice of Management , Harper and Row Publishing, New York, 1999.]. Government and organizations usually embark on different projects with the aim of creating new service or improving the functional efficiency of the existing ones. All these projects require appropriate skills and techniques that go beyond technical expertise only but combines good and sound skills to manage resources and unpredicted outcomes whilst at the same time dealing with people and organizational issues. The factors that influence construction management practice differ from country to country, due to prevailing conditions. During the last few decades, the Nigerian construction sector has experienced some rapid changes and advancement in construction practices as well as the management of the construction works. The Federal Government of Nigeria (FGN) regulates the requirements for PM practice in Nigeria, requiring the project manager to be trained in one of the listed construction-related disciplines and to qualify with either a degree or diploma (or both) from a recognized institution of learning. The recognized construction-related disciplines include architecture, quantity surveying, building and civil engineering. The FGN approves the following professional bodies and any of their corporate members to render management services in the Nigerian construction industry: the Nigerian Institute of Architects (NIA); the Nigerian Institute of Quantity Surveyors (NIQS); the Nigerian Institute of Building (NIOB), and the Nigerian Institution of Civil Engineers (NICE).

4. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA INTRODUCTION There is need for effective management of projects in order to guarantee quality and timely delivery of projects. Generally public facilities which are essential for good governance require effective project management in their provision and maintenance. Information technology is now routinely used in the construction industry as a tool to reduce some of the problems generated by fragmentation. Its benefits include speedy progress of work, quality work, better financial control, communications, simpler and faster access to common data as well as decrease in documentation errors. A better understanding of public facilities, project management and government and contractor relationship is therefore necessary.

5. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PUBLIC FACILITIES Law and Legal Definition of Public Facility- Generally speaking public facility can be any facility, including, but not limited to, buildings, property, recreation areas, and roads, which are owned, leased, or otherwise operated, or funded by a governmental body or public entity. These facilities are important for maintaining law and order, cleanliness, quality of life, access and comfort to common man. The benefits of public facility can be shared by many people. Government schools enable many children to get educated. The supply of electricity is essential for all households and businesses. Farmers can run pump sets to irrigate their fields; people open small workshops that run on electricity. Public facilities are therefore essential for the social and economic development of individuals because, without these facilities, people cannot achieve their full potential. Role of Government in Providing Public Facilities- The main source of revenue for government is through taxes. These taxes are collected from the people and businesses, and government is empowered to collect taxes and use them for government initiatives and programmes or for providing various public facilities. Government has to ensure universal access to public facilities in economic, physical and social terms. Government has to provide a facility either without a charge or at a charge which is affordable to the masses.

6. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECT MANAGEMENT Project management is that it is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Examples of projects may include the construction of a new bridge or building or developing software for an improved business process. “Project management, then, is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements.” • 1. Project Initiation - This is the first phase of the project lifecycle. This is where the project’s value and feasibility are measured. Project managers typically use two evaluation tools to decide whether or not to pursue a project: • Business Case Document – This document justifies the need for the project, and it includes an estimate of potential financial benefits. • Feasibility Study – This is an evaluation of the project’s goals, timeline and costs to determine if the project should be executed. It balances the requirements of the project with available resources to see if pursuing the project is worth it. • Teams abandon proposed projects that are labeled unprofitable and/or unfeasible. However, projects that pass these two tests can be assigned to a project team or designated project office. 2. Project Planning- Once the project receives the green light, it needs a solid plan to guide the team, as well as keep them on time and on budget. A well-written project plan gives guidance for obtaining resources, acquiring financing and procuring required materials. The project plan gives the team direction for producing quality outputs, handling risk, creating acceptance, communicating benefits to stakeholders and managing suppliers. The project plan also prepares teams for the obstacles they might encounter over the course of the project, and helps them understand the cost, scope and timeframe of the project. The Project Life Cycle: A standard project typically has the following major phases (each with its own agenda of tasks and issues): initiation, planning, implementation, monitoring and control and closure.

7. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECT MANAGEMENT 3. Project Execution- This is the phase that is most commonly associated with project management. Execution is all about building deliverables that satisfy the customer. Team leaders make this happen by allocating resources and keeping team members focused on their assigned tasks. Execution relies heavily on the planning phase. The work and efforts of the team during the execution phase are derived from the project plan. 4. Project Monitoring and Control- Monitoring and control are sometimes combined with execution because they often occur at the same time. As teams execute their project plan, they must constantly monitor their own progress. To guarantee delivery of what was promised, teams must monitor tasks to prevent scope creep, calculate key performance indicators and track variations from allotted cost and time. This constant vigilance helps keep the project moving ahead smoothly. 5. Project Closure- Teams close a project when they deliver the finished project to the customer, communicating completion to stakeholders and releasing resources to other projects. This vital step in the project lifecycle allows the team to evaluate and document the project and move on the next one, using previous project mistakes and successes to build stronger processes and more successful teams.

8. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA THE PROJECT MANAGEMENT STRUCTURE IN EDO STATE Introducing the actors: The major actors in project management in Edo State as it relates to public facilities are: the Ministry, PPP, WDC, EPPRA, consultants, contractors and the Office of the Auditor General. The PPP office is very instrumental in attracting investors to the state and also facilitating public private partnerships in projects. Examples of PPP projects in the state are the Benin River Port, Gelegele, the Benin Enterprise Park, etc. • Ministry, Ward Development Committees (WDC), Public Private Partnership (PPP) Office and Consultants (project initiation and planning) • Edo State Public Procurement Agency (EPPRA) (Certificate of Compliance/ no Objection) • The State/Ministerial Tenders Board • The Governor/ State Executive Council (approval of contract for award) • Ministry, Consultants (Project execution, monitoring and control and project closure) • Office of the Auditor General (value for money audit on projects during project closure) Public facilities projects are often initiated from the grassroots/ people who are able to identify their own needs in terms of health care, education, transportation, etc. The WDC which comprises of residents of the wards, are constituted in each of the 192 wards of the state. They serve as a medium through which government gets to know the needs of the people. When a need is identified the relevant ministry steps in. EPPRA is mandated with the responsibility of ensuring that the state’s procurement laws are complied with during project management.

9. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA THE PROJECT MANAGEMENT STRUCTURE IN EDO STATE Consultants and contractors may be engaged by the Ministry depending on the nature of the project. Usually, contractors are involved in construction and actual implementation of the project while consultants help in project initiation, management, compliance and quality control. • The Ministry (in this presentation I shall be using the Ministry of Physical Planning and Urban Development (MPPUD) which I presently head) is mandated with the responsibility of construction and maintenance of public buildings. • Within MPPUD is the Department of Public Buildings and Building Standardization. The department has 2 major sub-divisions namely Public Buildings and Housing Construction and Building Standardization. Public Buildings and Housing Construction has four units which are; architectural services, engineering services, cost and quantity services, and public building maintenance. • While Building Standardization sub-division also has four units namely; building inspectorate and standard, building evaluation and removal, energy efficiency building and building automation and information modeling. The head of the department is an engineer while the heads of the two subdivisions are architects.

10. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA Honorable Commissioner THE PROJECT MANAGEMENT STRUCTURE IN EDO STATE - MPPUD Permanent Secretary Summary of New Framework 5 Departments 4 Divisions 29 Units 10 Area Planning Offices Department of Public Buildings & Building Standardization Department of Administration & Finance Department of Settlement Planning Department of Development Control & Compliance Department of City Growth, Strategy & Infrastructure Settlement Planning (5 Units) Urban & Regional Planning Public Spaces & Utilities New Town Development Geographic Information Urban Renewal, Community Engagement & Advocacy Public Building & Housing Construction (4 Units) Architectural Services Engineering Services Cost & Quantity Services Public Building Maintenance Building Standardization (4 Units) Building Inspectorate & Standard Building Evaluation and Removal Energy Efficiency Building Building Automation and Information Modeling Human Resources & Administration Division (4 Units) Recruitment & Promotion Staff Training & Development Staff Discipline Premises & Assets Management Finance & Accounts (5 Units) Budgets Financial Accounts Revenue Collection & Management Salaries & Wages Procurement & Contract City Growth, Strategy & Infrastructure (3 Units) Integrated Urban Development & Infrastructure Coordination Infrastructure Mapping & Planning E-Planning, Geospatial & Communication Area Planning Offices (10) Development Control (4 Units) Planning Permit Compliance & Enforcement Change of Use Building Inspectors Accreditation

11. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA The method of engaging a contractor varies depending on the nature of the project. This variation in procurement method may be due to the exigency of the project, specialized nature of the project, security/confidentiality of the project, etc. GOVERNMENT/ CONTRACTOR RELATIONSHIP In executing projects, government often engages private contractors/ construction companies. In some cases, the relationship between government and contractors begin at the initiation and planning stages of project management where invitations are sent out for expression of interests and request for proposals on a particular subject of concern or interest (e.g. the Benin City cemeteries). However, in most cases the beginning of the relationship between government and contractors is at the project execution stage which starts with the procurement of the contract (e.g. Secretariat Complex Renovation, Benin City). This is when interested contractors are invited to submit their financial and technical bids for proposed projects. This engagement is usually formal through procurement in line with the provisions of the state’s procurement laws. Generally during procurement, bidding is done by contractors and thereafter the award of a contract is giving to the most eligible contractor. At this point, the cost, scope and duration of the contract is known and agreed upon by both the procuring entity (government) and the contractor. It is important to note at this juncture that Edo State Government has domesticated the Public Procurement Act, 2007 and all procurement processes in the state are presently guided by the provisions of the Edo State Procurement Law, 2012.

12. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA GOVERNMENT/ CONTRACTOR RELATIONSHIP Thereafter, the project’s execution commences. At this stage, there is need for effective project monitoring and control by the relevant arm of government to ensure quality, timely and safe delivery of the project within the stipulated scope. This is where the most interaction between the contractor and government is done. It is essential that there is a smooth and cordial relationship between the supervisory ministry and the contractor at this stage. Since the inception of the present administration, the ministry has been involved in a variety of public building projects. Notable amongst these are the secretariat complex on Sapele Road, remodeling of Samuel Ogbemudia Stadium, construction of 20 mini stadia across all the 18 Local Government Areas of Edo State, etc. When the project construction is finished, the contractor hands over the finished project to the supervisory MDA who then hands over the project to the users. The project remains open until the retention period for the project elapses. At this point, the supervisory team closes the project, communicating its completion to stakeholders and redirecting its resources to other projects. At this point in the project lifecycle also, the team is able to evaluate and document the project and move on to the next one, using previous project mistakes and successes to build stronger processes and more successful teams. Some of our success stories in the Ministry of Physical Planning and Urban Development, Edo State include; remodeling of the Governor and Deputy Governor’s Lodges in Abuja, chief Judge Residential Quarters, Benin City, Block-C Building, etc.

13. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA GOVERNMENT/ CONTRACTOR RELATIONSHIP SUSTAINABILITY CHALLENGES • i. Corruption • On the Part of Government • i. Interference in procurement process and choice of contractors. • ii. Poor funding: This greatly affects quality and timely completion. It also results in project cost variation. The state has presently introduced irrevocable standing payment order as an alternative method of funding to ensure timely completion of its projects. • iii. Poor scoping of projects: This mostly affects renovation and remodeling projects. Due to poor maintenance culture of public facilities generally, there is need for the introduction of maintenance and sustainability schemes for public facilities. In this regard, MPPUD has put in place the Building Standardization sub-division within the department of Public Buildings and Building Standardization, which has four units namely; building inspectorate and standard, building evaluation and removal, energy efficiency building and building automation and information modeling. This department ensures that there is regular checks and maintenance of public buildings in the state. • On the Part of Contractors • i. Competence • ii. Keeping to timelines • iii. Keeping to specification

14. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECTS 3-D Rendering of the Secretariat Complex at Completion

15. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECTS Secretariat Block-C Building, Benin City, Edo State

16. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECTS Civic Square Building within the Secretariat Complex Treasury House Building Under Construction Some Few Months Ago

17. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECTS Secretariat Complex, Benin City, Edo State Treasury House Building Benin City, Edo State

18. PROJECT MANAGEMENT STRUCTURE FOR PUBLIC FACILITIES IN NIGERIA PROJECTS Samuel Ogbemudia Stadium, Benin City, Edo State

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