Consequences And Evaluation Of The Involvement Of Foreign Companies In Road Constriction
[A CASE STUDY OF KWARA STATE.]

CHAPTER TWO
2.0     LITERATURE REVIEW
Various projects on contracts have been executed in the country aiming at the development in technological and living standards of the people in the country. In Nigeria the most widely executed projects, comes under Civil Engineering construction in which it is the industry that has since independence played a dominant role in the economical activity of the country. It accounts for 60% of the nation’s capital investment and 30% of the gross domestic product (GDP)
A recent Central Bank of Nigeria (CBN) reported on road network shows that the road network is currently estimated at about 194,000 meters, with the Federal Government being responsible for about 17%, state government 16% and local governments 67%. However, these roads have been plagued by a number of problems, with the major ones being faulty designs inadequate drainage systems and poor maintenance culture, and adherence to specification which have significantly reduced the utility of the roads. There are potholes, washing away of pavements, fallen bridges etc along most Nigerian roads.. These problems have made it difficult, expensive and more arduous more to move products and services from producers to  consumers, farm produce from rural to urban centers, which often lead to loss of man-hours and high cost of goods and services.
 Between June 1999 to September 2003, the Federal Government awarded contracts for road rehabilitation and construction valued at N361. 666 billion. These projects cover about 7, 500 kilometers (23%) 66 number project have been completed, while 94 others are at various stages of completion.
The government has so far spent about N150.257 billion on these projects. On the average the disposition of these projects per state is 4 to 5. Currently, over N 44.576 billion is being owned contractors for works already done and certified for payment. With these huge amounts being spent it shows that the construction industry generates employment  of labour.
The annual loss due to bad roads is valued at N 80 billion, while additional vehicle operating cost resulting from bad roads is valued at N55. 8 billion, bringing the total loss per annum to 133.8 billion. This figure does   not take into account the man hour losses in traffic due to bad roads and consumers, farm produce from rural to urban centers which often leads to loss of man hour and high cost of goods and services.
2.1    IMPORTANCE OF ROAD TRANSPORTATION
The development of motor transportation has brought tremendous changes to our cities, until some 40 years ago urban population was concentrated in limited tightly knit area. This is largely because of the restriction in movement exposed by rail mounted or horse driver vehicular. The combined effects of the freedom of movement offered by motor transportation and population shift from rural to urban area have brought a veritable’’ explosion’’ of our cities. Today our urban areas are assuming an entirely new form, geared increasingly to motor vehicle transportation. One can see that road transpiration has brought great changes to rural areas.
Practically all farm products are moved by motor vehicle. Many such as milk. Perishable food and livestock for which quick delivery is important, travel all the way to market in that manner. There are increased opportunities for reconciliation, social contracts and education. In fact, the rural mode of living has become much, like that of town and city. Road transportation also differs from rail and some other forms of transportation because it is not united in control or management that is motor vehicles are privately owned and operated.  
The individual drivers, has free selection of time, route and speed of travel subjected only to regulation imposed for the safety and welfare of others.