Minimizing Cost Overruns in Construction Projects in Nigeria
Adeagbo, Dorcas Omolola1 & Achuenu, Emmanuel2
Department of Building
University of Jos, Jos
Email: adeagbod1@yahoo.com
ABSTRACT
One of the important criteria for project success is project completion within budget time and the satisfaction of clients. Cost deviation from initial cost plan, has been prevalent in construction projects and the issue calls for serious concern. It is against this background that this research made attempt to investigate factors that are responsible for this phenomenon despite past research efforts. This is with a view to suggest possible
mitigating measures against this menace. Purposive sampling method was used to collect data from primary source consisting of structured questionnaire designed on Likert scale in rating of 1 to 5. The field survey was carried out with 80 questionnaire distributed to the professionals handling public construction building projects in Abuja and a response rate of 68 questionnaire returned was used for the analysis. The data collected was analysed using statistical package (SPSS). It was discovered from the data analysis that delayed payments to contractors, inflation, fraudulent practices, and inadequate financial planning are top critical factors contributing to cost overruns. In addition, mobilisation of financial resources in advance, proper and realistic planning, efficient estimation process, training on value management, change management and procurement management are also crucial to minimise cost overruns in construction industry. The study concludes with recommendations that payments should be made to contractors without delay, decision making on projects should always be fast tracked, establishment of preventive measures against unethical practices should be in place. Management should focus more on human resource related issues and adequate planning using modern technology could serve as mitigating measures for minimising cost overruns in public building construction projects.
Keywords: Construction management, Cost Overruns, Causes, Mitigation measures.
