Structural Equation Modelling of Labor Productivity in the Nigeria Construction Industry

Abstract

The high rate of construction project abandonment in Nigeria had led researches into developing means of enhancing project performance. This research developed a structural equation model of labour productivity in Nigeria building industry. To develop this model, questionnaire survey was carried out among five hundred (500) stakeholders in the building construction industry. The labour productivity factors were divided into six (6) major categories which are the Management and control (MC), Workforce(W), Material & Equipment (ME), Finance(F), Project(P), External(E). A structural equation model was developed to show how each of the labour productivity factors influence construction project performance in terms of cost, time and quality. The result showed the Management and Control to have the highest influence on project performance with high coefficients of 0.88(88%). Further validation of the model showed MC, W and ME to be highly significant as their worse construction scenario produced a high prediction of overruns in project cost, time and quality. This research showed that a solid management, workforce and material logistics structure is key to consistent productivity that enhances good project performance in the Nigeria construction industry.