Purpose
Globally, road projects are notorious for riskiness, which often results in cost overruns. In developing countries, these risks are amplified by economic instabilities and institutional failures. Majority of road projects in these countries are awarded to notedly inept indigenous contractors. Currently, research on the relationship between risks and cost performance of road projects has predominantly focussed on the client’s perspective. Effects of risks on contractors’ cost performance (profit) are inadequately investigated in literature. The purpose of this paper is to determine the relationship between direct risks and cost performance of road projects by indigenous contractors of developing countries from the contractors’ perspective.
Design/methodology/approach
The multivariate structural equation modelling technique was used to analyse purposively obtained data from indigenous contractors that recently completed road projects in Nigeria.
Findings
It was observed that a significant positive relationship exists between the aggregate project risk, i.e. project risk index of cost (PRIC) and cost performance of the projects. Significant positive relationships were also found to exist between identified cost risk centres and PRIC and between risk factors and cost risk centres. The risk centre site environment and location contributes the most to PRIC.
Research limitations/implications
Indigenous contractors of developing countries are to analyse the identified risk factors and centres prior to bidding for road projects and carefully manage them during project execution.
Originality/value
Future studies of risks in road project should aim to obtain project risk indices of costs for the projects.
Across the globe, the corollary of Green Cost Premium (GCP) obstructs the implementation of Sustainable Buildings (SB). Extensive studies into GCP proliferate, but the research norms rarely traversed theoretical contexts of GCP. The purpose of this paper was to explore the drivers of GCP from the contexts of the prevailing practice of SB using the theoretical lens of practice theory. Secondary literature comprising mainly peer-reviewed publications spanning 20years was critically reviewed. The results show some uncertainty regarding the effect of prevailing practice on the size of GCP due to the dearth of empirical studies. Secondary literature, however, showed that GCP is liable to variations in practice related to the level of knowledge and the implementation processes. The knowledge domain argued that the scope of GCP depends on regional issues including misperceptions, cost management deficiencies and sustainability accounting gaps. During implementation, GCP could also modify in response to changes in cost drivers, factors limiting innovative processes and challenges and barriers in the project environment. Engagements with practice have, however failed to embed this understanding into SB project implementation decisions and dynamics, as limited documented efforts aimed at mitigating the GCP exist. The paper offers a non-conventional perspective for assessing the dynamics of converging regional practices in SB that can contribute to GCP as well as lower the GCP when the practices are improved. GCP is susceptible to practice variations and answers to projects practices across regions. This portrays that the GCP can lessen through innovation of practice elements such as competencies and inputs (materials and procedures). The elements of scientific inquiry for GCP must be disconnected from currently established knowledge about SB systems to regional practices related to knowledge and procedures.
Despite the numerous benefits of prefabricated construction method, there is unfortunately limited knowledge and adoption of this method in Nigeria’s construction industry. This study, therefore, seeks to assess the construction industry’s stakeholders’ level of knowledge and extent of adoption of prefabricated construction method in project delivery. It also evaluates the prospects and challenges of prefabricated construction considering the government’s huge annual investment in the nation’s construction industry sector. The methodology used in this study was descriptive survey involving a structured questionnaire administered to major construction industry stakeholders including the government, consultants, contractors, building material merchants, and construction financiers with practices in Nigeria’s north central geo-political zone. The study showed a low level of knowledge (MMS: 2.32) and low level of adoption (MMS: 2.13) of prefabricated construction method in Nigeria in general. It also revealed ‘Better Supervision’ (MS: 4.02) and ‘High Initial Costs’ (MS:3.62) as the highest prospects and challenges of prefabricated construction method among other identified factors. The study concluded that the low level of adoption arising from the low level of knowledge of prefab system in the nation’s construction industry was responsible for the myriad of delays in meeting project timelines, hence the prevalence of construction time–cost overruns. The current study recommends a review of the academic curriculum of built environment and professional development programmes to expand and deepen the prefab system training content. It also recommends wide adoption of prefab system considering their prospects of ensuring quality as a result of better supervision and suggests outsourcing on critical areas of organisations’ logistic weaknesses to minimize the problem of higher initial costs.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.