CHAPTER ONE
INTRODUCTION
1.1       Background of the Study
Ashworth, Hogg, and Higgs (2013) described the construction industry as one of the most important sectors of the economy, which integrates a wide variety of skilled and unskilled professionals. These professionals engage in the provision of goods and services ranging from construction, alteration, refurbishment to repairs of building and civil engineering structures. All these professionals work together under various types of contractual agreements to actualize the client’s brief and deliver the project. Each construction project is unique and has its main objectives are outlined by the client based on project circumstances. Amongst the most common objectives of any successful project are deliveries at the right time, within authorized cost and meeting the envisaged quality standards (Love 1998). Construction projects, like all others, are not risks free and thereby can result to financial loss. Construction risks are events that generally influence any or all of the project objectives. Risk events could either be positive in terms of opportunities or negative in terms of threats to either or the entire project objectives (Hillson 2002).
 Significant proportions of factors impeding project performance in the construction industry are traceable to actions and inaction of principal stakeholders in the sectors. One aspect where stakeholders have failed in its responsibilities relates to contract planning. Contract planning According to Simmons (2007), refers to the process of systematically and efficiently managing contract creation, execution and analysis for maximizing operational and financial performance and minimizing risk. Contract planning processes are the activities/steps taken during contract planning, this is divided into two (2) phases PMT (2006) which are the pre-contract planning and post-contract planning on clients perspective and contractors perspective, but in the cause of this project we will be looking at the clients perspective, The research literatures in construction project management is replete with concerns about poor or ineffective contract planning (Idoro, 2009; Idoro, 2012; & Dalibi, 2016). Most countries in the Middle-East and some part of Africa do not utilize project planning and management techniques in the delivery of construction projects (Sayegh, 2008; Laryea & Hughes, 2009).   Ashworth (2007) reported that the use of formal contract planning and management techniques in the UK construction industry is low. The result culminates in project failures, incessant claims for variations, huge financial losses and sometimes results in bankruptcy of Clients and Contractors Ashworth (2007).
Several academic and professional literatures have developed in the field of effective contract planning and management within construction contexts. The degree of application of contract planning and management techniques by contractors especially, was found to differ in various construction industries across the globe (2008). Against this literature gap therefore, this study is conducted to evaluate the effect of construction contract planning on project performance in Imo State.