Implication of Construction Contract Termination for Infrastructural Development in Ekiti State Local Government Areas, Nigeria

Local Government Areas are the third tier of government in Nigeria and the closest to the

people. The Local Government Areas are charged with the responsibility of delivering the

dividend of democracy to meet the fundamental needs of the local community through the

provision of infrastructural facilities. This study assessed the causes and effects of the

termination of construction contracts in the 16 Local Government Areas in Ekiti State, Nigeria.

The exploratory research design was employed with a purposive sampling of construction

project contracts awarded in the Local Government Areas of Ekiti State, Nigeria between 2006

and 2015. A structured questionnaire in Likert’s scale was used for data collection and with

a response rate of 90%. Data were analysed using Spearman’s rank correlation coefficient (r),

Percentages and Importance Index Rate (I.I.R.). Results show that Lack of continuity, design

error, lack of fund by the local government council, failure of prompt payment, change of

executive leadership were among identified factors responsible for contract termination in the

study area. The implication of contract termination from the data analysis include delayed

completion, abandonment of the project, variance in final cost and cost overrun, change in the

quality of the project when completed due climatic effect. It is concluded the rate of

construction contract termination in LGAs in Ekiti state is approximately 1 in 5, these

terminations are due to project related, political and administrative factors respectively. It

therefore recommended that there is need for concerted effort to reduce the rate of construction

contract termination in LGAs in the state. There is also need to formulate policies to mitigate

the effect of change in government on construction contracts and to ensure that contracts

terminated are promptly re-awarded to avoid delay and abandonment. This will afford the

people at the grassroots to effectively enjoy the benefits of these infrastructural facilities.

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