EFFECTS OF SERVICE CHARGE ADMINISTRATION AND MANAGEMENT IN SELECTED MULTI-TENANTED COMMERCIAL BUILDINGS IN PHASE ONE, ABUJA.

Abstract

ABSTRACT

This study assessed the effect of service charge administration and management on selected multi tenanted commercial buildings in phase one Abuja were specific objectives were set. The study was guided by these objective which are knowing the process and procedure for service charge apportionment, the strategies put in place for the management, investigate the issues and challenges involved in the management as well assessing the occupant level of satisfaction in the selected areas. Data was collected by use of self-administered questionnaire and interview from sample of 8 respondents from managers perspective and 254 from tenants perspective. Data was analyzed and presented using percentages, frequencies, relative satisfaction index and tables. Findings from the research shows 37.5% charged or apportioned their service charge on per sqm bases while 25 % of service apportionment is based on percentage of total cost of projection while 25% of some selected buildings within phase one charge 10% of their rent. However, 75% of the buildings within phase one use the amount to carry out maintenance work, payment of security salary and payment of service bills while others repair the building by outsourcing it to the facility manager or give out to an entirely different company to carry out the job. Also 50% of the manager’s use it for procurement of diesel and 100% of the building use the service for alternatives best suitable for them. The challenges and issues encountered are lack of transparency, lack of efficiency, improper accounting and poor facilities. Nonetheless the relative satisfaction index was computed to show the satisfaction level of the occupants where Plumbing has relative satisfaction index of 0.7772 and ranked first among the services and facilities provided in phase one. Cleaning of common services ranked 2nd with relative satisfaction index of 0.718. However refuse disposal has a relative satisfaction index of 0.653 and ranks 3rd. Furthermore, transformer maintenance has relative satisfaction index of 0 and it ranks 13th while borehole machine and generator maintenance ranks 12th and 11th with RSI of 0.031 and 0.161 respectively. A number of guidelines should be taken in order to address the problems identified above which include Improved communication between manager and occupiers, clear disclosure of the basis for apportioning service charge costs between tenants.