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Cost overruns are major problems that face the Nigeria construction industry. Cost overruns can lead to numerous negative effects such as project delay, abandonment and poor quality delivery. It's of high concern to those who are involved in the construction industry. This study was carried out to identify the major causes of cost overruns in Nigeria building construction industry, by means of a literature review and a questionnaire survey. A total of twenty (20) cost overrun causative factors were obtained from literature. The questionnaire survey was distributed to randomly selected respondents from a combination of clients, consultants, contractors, site-engineers, project-managers and subcontractors. In all, one hundred and forty one (141) questionnaires were distributed to randomly selected respondents (clients, consultants, contractors, site-engineers, project-managers and subcontractors), one hundred and thirty two (132) questionnaires were returned out of which three (3) questionnaires were found incomplete and invalid. Only one hundred and twenty nine (129) questionnaires were found consistent and valid for use in this research. Relative importance index (RII) and severity index were used to carry out ranking and severity analysis. Based on the data received, six (6) most severe factors of construction cost overrun were identified as: risk and uncertainty related factors (89.5%); lack of financial power by clients (88.5%); weak regulation and control (88.2%); project fraud and corruption (82.6%); variation of prices (81.3%) and indiscriminate change in design/works (80.1%).
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Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2500
Most Critical Factors Responsible For Cost
Overruns In Nigeria Building Construction
Industry
Oluyemi-Ayibiowu, B. D*., Aiyewalehinmi, O. E., and Omolayo, O. J.
Department of Civil and Environmental Engineering,
The Federal University of Technology, Akure, Nigeria
AbstractCost overruns are major problems that
face the Nigeria construction industry. Cost
overruns can lead to numerous negative effects
such as project delay, abandonment and poor
quality delivery. It’s of high concern to those who
are involved in the construction industry. This
study was carried out to identify the major causes
of cost overruns in Nigeria building construction
industry, by means of a literature review and a
questionnaire survey. A total of twenty (20) cost
overrun causative factors were obtained from
literature. The questionnaire survey was
distributed to randomly selected respondents from
a combination of clients, consultants, contractors,
site-engineers, project-managers and sub-
contractors. In all, one hundred and forty one
(141) questionnaires were distributed to randomly
selected respondents (clients, consultants,
contractors, site-engineers, project-managers and
sub-contractors), one hundred and thirty two (132)
questionnaires were returned out of which three
(3) questionnaires were found incomplete and
invalid. Only one hundred and twenty nine (129)
questionnaires were found consistent and valid for
use in this research. Relative importance index
(RII) and severity index were used to carry out
ranking and severity analysis. Based on the data
received, six (6) most severe factors of construction
cost overrun were identified as: risk and
uncertainty related factors (89.5%); lack of
financial power by clients (88.5%); weak
regulation and control (88.2%); project fraud and
corruption (82.6%); variation of prices (81.3%)
and indiscriminate change in design/works
(80.1%).
KeywordsConstruction industry; Cost overruns
factors; Relative Importance Index (RII).
1. INTRODUCTION
1.1 Background
The construction industry is very important in the socio-
economic growth of a nation, as it improves the overall
Gross Domestic product (GDP) of a nation. The successful
completion of construction projects within the time frame,
budget allocation and of expected quality and durability is
therefore fundamentally crucial (Aftab, 2013) [2].
Construction industries in Nigeria are facing a lot of
challenges in managing construction projects in areas of
budget. Completion of projects in time within the budget,
and with desired quality is basic requirements which are
seldom achieved in the construction industry. This has
become a worldwide problem, leading to project
abandonment and huge economic loss. Jackson (2002)
[16] studied the problem of cost overrun by investigating
15 projects in llorin and found that 73.7% of the projects
faced cost overrun at an average of 34.7% of the initial
project cost. Investigation of 137 construction projects by
Olatunji (2009) [23] showed that 55% of the projects had
cost overrun problems, ranging from 5% to 80.8% of
project cost. There is need to identify and evaluate the
most severe factors influencing project cost.
In Nigeria, we experienced frequent failures and project
abandonment due to ineffective management techniques.
Cost is one of the major considerations throughout the
lifecycle of a project. Unfortunately, most of the projects
failed to achieve project completion with the estimated
cost. Besides time overrun, cost overrun is also a serious
problem in the construction industry. In Nigeria, the trend
is more severe, where these overruns sometimes exceeds
100% of the anticipated cost of the project (Assaf et al.,
2008) [7]. There is need to evaluate the most severe factors
influencing project budgeted overall cost.
Construction industries in Nigeria are facing a lot of
challenges in managing construction projects in areas of
budget management. The functions of management in
construction are: planning, organizing, staffing, directing,
controlling and co-coordinating (Gahlot, 2002) [13].
Construction management need well trained engineers and
project managers. In any work involving a common goal,
management is essential to coordinate the efforts
(Oluyemi, 2016) [25]. Serious concerns has been
expressed about construction projects which have not been
delivered in various parts of the country after huge
financial mobilizations has been made. In order to reduce
cost and maximize profit, some contractors risk using
inferior construction materials and incapable human
resources which ultimately results in poor quality and thus
compromise safety standards (Wenfa and Xinhua, 2014)
[28]. Failure in achieving required quality also has
significant negative impact on project costs. Completion of
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2501
projects in time within the budget, and with desired quality
is basic requirements which are seldom achieved in the
construction industry. This has become a worldwide
problem, leading to project abandonment and huge
economic loss.
This study is aimed at identifying those factors influencing
project cost and determining the most severe factors, for an
efficient and effective project cost management in Nigeria
construction industry. The specific objectives are to:
identify the factors influencing project cost and rank the
most severe factors. Relationship that exists between cost
and other parameters such as: roles of project team
(respondents); academic qualification; level of experience
(in years); type of project; project funding; and past project
challenges will be determined. The scope of this research
is limited to identification of the factors influencing
project cost, and ranking of the most severe identified
factors within Nigeria, using Lagos, Abuja and
Portharcourt metropolis of Nigeria as case study areas.
Target respondents for this study are the principal actors in
the construction industry namely: owner/client, consultant,
contractor, site-engineers, project-managers, and sub-
contractors. The study involved: collection of site reports
on cost on some large construction sites; data collection
from selected project sites with the aid of well structured
and unstructured questionnaires; personal interviews; and
analysis of data.
1.2 Cost Overrun
Cost is one of the major considerations throughout the
lifecycle of a project. Unfortunately, most of the projects
failed to achieve project completion with the estimated
cost. Besides time overrun, cost overrun is also a serious
problem in the construction industry. In Nigeria, the trend
is more severe, where these overruns sometimes exceeds
100% of the anticipated cost of the project (Assaf et al.,
2008) [7]. Despite the wide availability and use of
different project management methods and software
packages, many construction projects still suffer cost
overruns (Olawale et al., 2010) [24].
Developed countries have lessons to learn as well since
cost overrun in the construction industry is a worldwide
phenomenon (Ameh et al., 2010)[4]. Construction industry
is a project oriented industry. Without projects, there
won’t be construction industries and no development.
Approximately 90% of projects worldwide have cost
overrun ranging from 50 to100% of project cost
(Frimpong et al., 2003) [11]. Like other countries,
Malaysian construction industry is also facing a lot of
challenges in completing the construction projects within
the estimated cost (Ibrahim et al., 2010 & Toh et al., 2011)
[14 & 27] and more than 50% of projects face cost overrun
(Endut et al., 2009) [9].
Kaming et al. (1997) [18] identified factors influencing
construction cost overruns on high-rise building projects in
Indonesia through a questionnaire survey administered to
31 project managers. The results showed that major factors
affecting project cost were increased in materials cost due
to inflation, inaccurate quantity estimation and supply,
labour cost increase due to environmental restriction,
improper siting of project location, lack of experience of
project type, unpredictable weather conditions and lack of
experience of local regulation. Jackson and Steven (2001)
[15] examined the causes of cost overrun in building
projects of Ilorin through questionnaire survey and found
that major factors of cost overruns were fluctuation in the
prices of materials/Labour, variation orders, delay in
honoring certificates, lack of proper analysis of tenders,
selection of incompetent contractors, lack of proper
appraisal of projects and unrealistic representation of
clients’ needs. Jackson (2002) [16] studied reasons of
budget overrun in UK through questionnaire survey and
found that major reasons of overrun were design changes,
design development factors, information availability,
method of estimation, performance of design team and
project management.
Chang (2002) [8] studied the reasons of cost increase
through 4 case projects to quantify their contributions in
engineering design projects in USA. The finding of the
study showed that the major reason for cost increase was
owner request of changes in scope and additional works.
Frimpong et al. (2003) [12] conducted a questionnaire
survey consisting of 26 factors to study major contributors
of cost overrun in groundwater drilling projects in Ghana.
Out of 26 factors considered, top 10 factors are monthly
payment difficulties, poor contract management, material
procurement, inflation, contractor’s financial difficulties,
escalation of material prices, cash flow during
construction, planning and scheduling deficiencies, bad
weather and deficiencies in cost estimates prepared. Amu
and Jeje (2005) [5] evaluated the cash flow policies and its
effect on the completion time of projects in western
Nigeria. They identified that 27.4% of the total numbers of
sixty-two projects considered were completed within the
time frame, while 72.6% were yet to be completed on the
agreed time frame. The73.3% of the yet to be completed
projects were due to cash flow problems, that is, lack of
subsequent fund after the initial mobilization fees provided
by the government for the projects. The other 11.1, 13.3
and 2.2% were delays due to the lack of mobilization fees,
equipment breakdowns and poor weather conditions
respectively. The major constraints to the timely
completion of projects in the western states considered
therefore were due to cash flow problems. Koushki et al.
(2005) [19] studying problem of cost increase in the
private residential projects of Kuwait mentioned that three
main contributors to cost overruns were contractor-related
problems, material-related problems and owners’ financial
constraints. Omoregie and Radford (2006) [26] study
found out the major factors causing cost overrun in
infrastructure projects of Nigeria were price fluctuations,
financing and payments of completed works, poor contract
management, schedule delay, changes in site conditions,
inaccurate estimates, shortage of material, imported
materials and plant items, additional works, design
changes, subcontractors and nominated suppliers, weather,
non-adherence to contract conditions, mistakes and
discrepancies in contract conditions and fraudulent
practices. Azhar et al. (2008) [7] investigated cost overrun
causes in construction industry of Pakistan. A survey using
questionnaire containing forty two (42) factors showed
that the top ten cost overrun factors found were fluctuation
in prices of raw materials, unstable cost of manufactured
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2502
materials, high cost of machineries, lowest bidding
procurement procedures, poor project (site) management/
poor cost control, delays between design and procurement
phases, incorrect/ inappropriate methods of cost
estimation, additional work, improper planning, and
unsupportive government policies. Le-Hoai et al. (2008)
[20] studied the causes of cost overrun in large
construction project of Vietnam using questionnaire
survey. The investigation included 21 causative factors and
top 5 common and very sever causes of cost overrun were
poor site management and supervision, poor project
management assistance, financial difficulties of owner,
financial difficulties of contractor; design changes.
Enshassi et al. (2009) [10] conducted questionnaire survey
to identify major causes of cost overrun in construction
projects of Gaza by investigating 42 factors amongst
contractors, consultants and owners. Results indicated that
top ten factors that cause cost overruns as perceived by the
three parties include increment of materials prices due to
continuous border closures, delay in construction, supply
of raw materials and equipment by contractors,
fluctuations in the cost of building materials, unsettlement
of the local currency in relation to dollar value, project
materials monopoly by some suppliers, resources
constraint: funds and associated auxiliaries not ready, lack
of cost planning/monitoring during pre- and post-contract
stages, improvements to standard drawings during
construction stage, design changes, and inaccurate quantity
take-off.
Kaliba et al. (2009) [17] carried out a study to determine
the contributors of cost escalation in road construction
projects of Zambia. The finding of study showed that the
main causes of cost escalation included bad or inclement
weather due to heavy rain and flooding, scope changes,
environmental protection and mitigation costs, schedule
delay, strikes, technical challenges, inflation and local
government pressure. Abdullah (2010) [1]; Aibinu and
Jagboro (2002) [3] stated that these identified factors are
part of the whole literature review on the factors causing
cost overrun happening worldwide. They further stated
that comprehensive review consisting of 46 published
articles has resulted in identifying 78 common factors of
cost overrun, which were considered for further
investigation to find the relevancy and significance of
these factors towards construction industry. As a part of
literature review, studies on time overrun factors were also
considered as: cost overrun is directly correlated with time
overrun and it is difficult to separate the factors causing
overrun between cost and time overrun, as the reasons for
cost increases are normally also the reasons for time.
Ameh et al. (2010) [4] investigated the causes of cost
overrun in 53 telecommunication projects of Nigeria
through structured questionnaire survey containing 42
factors. Survey results showed that top seven factors were
lack of experience of contractors, cost of material,
fluctuation in the prices of materials, frequent design
changes, economic stability, high interest rates charged by
banks on loans received by contractors, mode of financing,
bonds and payments as well as fraudulent practices and
kickbacks.
2. MATERIAL AND METHOD
2.1 Study Areas
Three locations (study areas) were selected in Nigeria for
this research. These are Abuja, Lagos and Portharcourt
(Figure 1). The choice of locations was based on
commercial viability, social status, economic
considerations and area accessibility which provide
opportunities for diverse industries like: construction,
consulting, manufacturing, agriculture, telecom,
marketing, legal, health and technological advancement.
2.2 Data Source
In this research, questionnaires were administered to
collect necessary data. With the aid of latest version of the
SPSS software, all collected data were analysed to carry
out: descriptive analysis of respondents’ characteristics,
ranking and severity analysis, reliability statistics and
Pearson correlation. A total of One hundred and twenty
nine (129) experienced personnel involved in handling
construction projects, responded to the questionnaires in
Lagos, Abuja and Portharcourt, as a representative of the
entire Nigeria construction sites.
This research methodology was carried out under literature
review, interviews, questionnaires survey and secondary
data collection. These methods acted as supplement to
each other which made the data collection more
comprehensive, meaningful and valid. Basically, the
literature review focused on gaining a better understanding
of cost performance and causative factors affecting its
overrun in construction projects. These factors were
analyzed in conformance to represent the problems of cost
overrun in prevailing construction industries in Nigeria
through administered questionnaire and interviewing
experienced personnel involved in handling construction
projects. This revealed the perception of owner/client,
consultant, contractor, site-engineers, project-managers,
and sub-contractors towards the factors causing cost
overrun. Gathered data was ranked using Relative
Importance Index (R.I.I) method and statistical tools in
order to draw the conclusion in determining the current
situation of cost overrun problem and factors contributing
to these overrun.
2.3 Population and Sample
The entire population size (N) and total representative
sample (n) for this research was determined using simple
random sampling (SRS) method. Simple random sampling
is a method in which members or items of the population
can only be selected one at a time for inclusion in the
sample. The sample size (n) for each study area was
calculated using:
n = n'/ [1+ (n'/N)] (Mahmoud, 2012) [21]
Where:
N = total number of population
n = sample size from finite population
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2503
n' = sample size from infinite population = S²/V²;
Where:
is the variance of the population elements and
V is a standard error of sampling population.
Usually S = 0.5 and V = 0.06; (Assaf et al. 2001 &
Moore et al. 2003) [6 & 22].
2.4 Relative Importance Index and Severity
The Relative Important Index method (RII) was used to
determine Respondent’s perception of the relative
importance of the identified influencing factors on cost in
construction sites.
Relative Important Index (R.I.I) 


(1)
Relative Important Index (R.I.I) 

(2)
(0 ≤ R.I.I ≤1)
Where:
ai is Constant expressing weight given to ith
response: i = 1,2,3,4,5
n is variable expressing frequency of i
N is Total number of Respondents,
A is Highest weight (as shown in Table 1, where
A=5)
n5 is Number of Respondent for very important
n4 is Number of Respondent for Important
n3 is Number of Respondent for Moderately
important
n2 is Number of Respondent for Not important
n1 is Number of Respondent for Not very important
The item with the highest RII value was ranked first (1)
the next (2) and so on.
Interpretation of the RII values is as follows:
RII < 0.60, item is assessed to have low rating
0.60 ≤ RII <0.80, item assessed to have high rating.
RII 0.80, item assessed to have very high rating.
Table 1: Likert scale showing ranking and rating
Item
Strongly Disagree
Disagree
Neither Agree nor
Disagree
Agree
Strongly Agree
Description
Not very
Important
Not Important
Moderately
Important
Important
Very Important
Scale
1
2
3
4
5
The Severity Index (I) was calculated to interpret the
degree of severity effect of the identified factors
influencing cost on building construction projects using
Lagos, Abuja and Portharcourt as case study areas in
Nigeria. The categorizations reflected the scale of the
respondents answer to questionnaire. The severity index of
a category was the average severity indexes of all its
related factors.
This index was calculated as follows:
Severity Index (I) = 

 
(3)
i.e. Severity Index (I) =     
(4)
The severity index was categorized into five levels:
0-49% was categorized as none severe;
50-69% was categorized as fairly severe;
70-74% was categorized as moderately severe;
75-79% was categorized as severe; and
80-100% was categorized as most severe.
The most severe independent factors for cost as the
dependent variable under investigation were selected as
most relative important factors influencing apportioned
research objective.
3. RESULTS AND DISCUSSION
The results presented are characteristics of respondents to
questionnaire distributed (Figure 2); descriptive analysis,
ranking and severity analysis; reliability statistics; and
correlation results.
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2504
Table 2: Questionnaire Distribution and Responses from the selected study areas
Abuja
Lagos
TOTAL
Number Distributed
48
60
141
Number of Responses
44
54
129
Percentage of Responses (%)
91.67
90.00
91.49
% Responses = (Number of responses/Number Distributed) X 100%
Table 3: Summary of Characteristics of Respondents
Category
Classification
Frequency
Percent (%)
1.
Roles/Position of
Respondents
Owners
10
7.75
Consultant
22
17.05
Contractor
40
31.01
Site Engineer
25
19.38
Project Manager
11
8.53
Sub-contractor
21
16.28
Total
129
100
2.
Respondents’ Academic
Qualification
O.N.D
0
0
H.N.D
26
20.16
B.Sc/B.Tech
40
31.01
P.G.D
25
19.38
M.Sc/M.Tech
32
24.81
Ph.D
6
4.65
Total
129
100
3.
Respondents’ Level of
Experience in Construction
Project
1 year to 2 year
0
0
2 year to 5 year
13
10.08
5 year to 10 year
20
15.50
10 year to 15 year
43
33.33
15 year and above
53
41.09
Total
129
100
4.
Respondent’s Type of Project
Residential
9
6.98
Non-Residential
51
39.53
Public utility
19
14.73
Civil works
18
13.95
Commercial/ special trade
32
24.81
Others that were not specified
0
0
Total
129
100
5.
Type of Project Funding
Public
42
32.56
Private
65
50.39
Joint
22
17.05
Total
129
100
6. Respondent’s Previous
Project Challenges
Abandoned project (1)
41
31.78
Delivered behind schedule (2)
52
40.31
Experienced cost over-run (3)
31
24.03
Reworked/berated (4)
5
3.88
has no challenge
0
0
no project experience
0
0
Total
129
100
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2505
3.1 Ranking Analysis (Relative Importance Index
and Severity Index)
From Table 4, the six (6) most severe factors affecting cost
as opined by the respondents are: Risk and uncertainty
associated with projects with severity of 89.5%, Lack of
financial power (88.5%), Weak regulation and control
(88.2%), Project fraud and corruption (82.6%), Inflation of
prices (81.3%) and Indiscriminate change in design/works
with severity of 80.1%.
Table 4: Factors Influencing Cost Arranged in Order of Ranking
FACTORS
ID
AVERAGE
MEAN
RII
SEVERITY
(%)
RANK
Risk and uncertainty associated with projects
CF2
4.44
0.895
89.5
1
Lack of financial power of the client
CF8
4.43
0.885
88.5
2
Weak regulation and control
CF18
4.38
0.882
88.2
3
Project fraud and corruption
CF19
4.10
0.826
82.6
4
Inflation of prices (variations)
CF10
4.03
0.813
81.3
5
Indiscriminate Change in design/works
CF1
3.97
0.801
80.1
6
Unpredictable weather conditions
CF5
3.93
0.789
78.9
7
Lack of proper training and experience of Project
Manager (PM)
CF3
3.83
0.788
78.8
8
Fluctuation of currency/exchange rate
CF20
3.72
0.771
77.1
9
Low skilled manpower
CF4
3.5
0.703
70.3
10
Delay in payment of completed works
CF9
3.48
0.703
70.3
11
Unstable interest rate
CF17
3.43
0.701
70.1
12
Unstable government policies
CF16
3.43
0.687
68.7
13
Disagreement on interpretation of contract
documentation and specification
CF11
3.04
0.570
57.0
15
Use of inappropriate software for cost estimation
CF7
2.81
0.542
54.2
16
Non-performance of subcontractors and nominated
suppliers
CF14
2.72
0.526
52.6
17
Dependency on imported materials
CF6
2.62
0.503
50.3
18
Inaccurate evaluation of projects time/duration
CF15
2.45
0.488
48.8
19
Complexity of works
CF13
2.30
0.459
45.9
20
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
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JMESSP13420508 2506
Table 5: Inter-Item Correlation Matrix
Q1
Q2
Q3
Q4
Q5
Q6
CF
Pearson
correlation
Q1
1.000
0.39
0.62
0.74
0.16
0.35
0.49
Q2
0.39
1.000
0.31
0.15
0.09
0.43
0.78
Q3
0.62
0.31
1.000
0.24
0.20
0.94
0.89
Q4
0.74
0.15
0.24
1.000
0.91
0.78
0.49
Q5
0.16
0.09
0.20
0.91
1.000
0.19
0.91
Q6
0.35
0.43
0.94
0.78
0.19
1.000
0.56
CF
0.49
0.78
0.89
0.49
0.91
0.56
1.000
Sig.
(1-tailed)
Q1
Q2
Q3
Q4
Q5
Q6
CF
Q1
.
.000
.000
.000
.000
.001
.000
Q2
.000
.
.000
.002
.000
.000
.000
Q3
.000
.000
.
.000
1.223E-5
.000
.000
Q4
.000
.002
.000
.
.000
.000
5.288E-5
Q5
.000
.000
1.223E-5
.000
.
.000
.000
Q6
.001
.000
.000
.000
.000
.
.000
CF
.000
.000
.000
5.288E-5
.000
.000
.
N
129
Where:
Q1 = Roles of project team (respondents); Q2= Academic qualification; Q3= Level of experience (in years); Q4= Type of
project; Q5= Project funding; Q6= Past project challenges; CF= Cost-factor.
4. CONCLUSION
From the study, it was concluded that the most severe
factors affecting project cost in Nigeria construction
industries are: Risk and uncertainty associated with
projects; Lack of financial power; Weak regulation and
control; Project fraud and corruption; Inflation of prices
(variations) and Indiscriminate Change in design/works,
with severity of 89.5%, 88.5%, 88.2%, 82.6%, 81.3%, and
80.1% respectively. According to the respondents,
inadequate planning against risk and uncertainty has been
a serious cause of cost overrun in Nigeria construction
industry.
5. ACKNOWLEDGEMENTS
The Researchers thank Prof. C. Arum, Dr. Fdaugba, O. G
and Engr. Adeniyi (Retired) who shared their memories
and experiences, to support and expand this work. This
had given the researcher the courage to challenge the
common problem of optimization in the construction
industry about minimizing cost.
Journal of Multidisciplinary Engineering Science Studies (JMESS)
ISSN: 2458-925X
Vol. 5 Issue 2, February - 2019
www.jmess.org
JMESSP13420508 2507
Figure 1: Map of Nigeria showing study areas (Abuja, Lagos and Portharcourt)
Figure 2: Pie chart representing percentage of Respondents’ Role
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... This research, therefore, has it that the key issue that impends the effectiveness of construction cost control during construction is the issue of keeping accurate information for accurate reporting. Several researchers like (Adjei, Aigbavboa, and Thwala, 2017), (Kujala, Brady and Putila, 2014), (Anigbogu, Ahmad and Molwus, 2019), (Mahamid and Bruland, 2010), (Omolayo and Dorcas, 2019) and others have also opined based on their research that lack of accurate data significantly affects the effectiveness of cost control. These challenges are the reason why cost overrun is still a global phenomenon. ...
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Managing the cost of construction is one of the key determinants of a project's success. Globally, different measures, techniques, and tools have been developed and utilized to ensure that construction cost is kept within budget but despite the various available cost control methods and techniques, cost overrun is still a global recurrent decimal and Nigeria is not an exception. The majority of the construction projects are barely completed within budget and there are critical issues that face construction cost managers that hamper the effectiveness of the tools and techniques used to control cost. This article investigated those critical issues and highlighted the most critical issues that demand the serious attention of construction managers. The research examined the critical issues that hamper effective cost control at the basic stages of the construction process. An online survey was conducted in the six geopolitical zones of Nigeria with a sample size of 382 Quantity Surveyors. Statistical tools such as spearman's correlations, severity indices, Kendall's coefficient of concordance were employed to analyze and rank the cost control critical issues. The findings indicated that the most critical issue facing cost managers is the challenge of keeping accurate information at the monitoring stage of the construction process with a mean rank of 8.73 and a severity index of 78%.
... Table 3 below shows an inventory of the dominant factors in the 10 groups at each study review. [18] ✓ ✓ ✓ ✓ ✓ 12 [19] ✓ ✓ ✓ 13 [20] ✓ ✓ ✓ ✓ ✓ 14 [21] ✓ ✓ 15 [6] ✓ ✓ ✓ 16 [31] ✓ ✓ ✓ 17 [24] ✓ ✓ ✓ ✓ ✓ 18 [25] ✓ ✓ ✓ 19 [32] ✓ 20 [26] ✓ ✓ ✓ ✓ 21 [27] ✓ ✓ ✓ ✓ 22 [33] ✓ ✓ ✓ ✓ 23 [28] ✓ ✓ ✓ ✓ 24 [29] ✓ ✓ ✓ 25 [13] ✓ ✓ ✓ ✓ ✓ ...
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