Construction Cost Factors in Nigeria

Elinwa, Augustine Uchechukwu; Buba, Silas A.

doi:10.1061/(asce)0733-9364(1993)119:4(698)

Cited by 75 publications

(39 citation statements)

References 3 publications

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“…Fluctuation of prices of material: Fluctuation of prices of materials was ranked as 1st place (MI = 0.83) as agreed unanimously by all the respondents and this finding is concurrence with the findugs from other countries (Ameh et al, 2010;Azhar et al, 2008;Chimwaso, 2000;Elinwa and Buba, 1993;Enshassi et al, 2009;Le-Hoai et al, 2008). This factor can be attributed from various reasons such as monopoly of suppliers or unavailability of construction materials locally.…”

Section: Literature Reviewsupporting

confidence: 73%

Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia

Rahman¹,

Hameed²,

Karim³

2013

J. of Applied Sciences

132

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Once a construction projects fails in achieving effective cost performance, it will result to cost overmn. These ovemrns are caused from several factors which are very important to uncover for improving the cost performance. In Malaysia, not many research works have been carried out on study~ng cost performance factors. Hence, this study was conducted to identify the significant factors causing cost overrun in large construction projects in Malaysia. Questionnaire for the survey was developed based on 35 common factors of cost overrun identified from literature work. These factors were grouped in 7 categories and validated by interviewing five experiencedpersonnel of construction industry. The feedback of from the survey resulted in receiving 262 sets of completed valid responses against 400 questionnaires distributed amongst contractors, consultants and clients involved in large construction projects. The data from the questionnaire was analyzed statistically. Relative importance index method was used for hierarchal assessment of factors and found that the top 3 most significant factors of cost overmn are fluctuation of prices of material, cash flow and financial difficulties faced by contractors and poor site management and supervision. These factors belong to two categories i.e., contractor's site management and financial management category, thus improvements in these categories are paramount for controlling cost overrun in construction projects.

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Section: Literature Reviewsupporting

confidence: 73%

Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia

Rahman¹,

Hameed²,

Karim³

2013

J. of Applied Sciences

132

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“…This is probably due to the negative effects of actions not taken for non-compliance with terms and condition of contract, certifying goods without inspections or tests, falsification of contract documents and receipts to get undue advantage or payments: these were major factors affecting technical performance of local government projects in a negative way. This finding confirmed the findings from the study of Matthew, Patrick and Denise (2013) and Elinwa and Buba (1993) that actions not taken for non-compliance with the terms and conditions of contract and kickbacks were the main factors affecting technical performance of projects. While the study of Stevens and Fuentes-George (2015) had a different view probably it was done in developed country US.…”

Section: Discussion Of the Resultssupporting

confidence: 88%

“…In Nigeria, fraudulent practice affects technical performance of construction projects in various ways which includes: deliberates substitution of specified construction material with less quality ones, improper social contact between contractors and consultants and problems of kickbacks (Inuwa, Usman and Dantong, 2015). Elinwa and Buba (1993) stated that fraudulent practices and kickbacks were the most important factors leading to poor technical performance of projects in the Nigerian construction industry. Stevens and Fuentes-George (2015) mentioned that all government-funded projects in developing countries were political in nature.…”

Section: Factors Influencing Technical Performance Of Sslgpmentioning

confidence: 99%

Influences of Cost Factors Affecting Technical Performance of Local Government Projects in Nigeria: A Partial Least Square-Structural Equation Modeling (PLS-SEM) Approach

Gambo¹,

Said²,

Ismail³

2016

JCDC

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Abstract:The technical performance requirements of projects posed a challenge to the sustainable development of small size local government projects particularly in developing countries. Studies in the past focused mainly on the performance of major foreign construction firms mostly owned and operated by expatriates. Very few researches however, have been conducted to assess the relationship between major cost factors affecting technical performance of small size local government projects. This study is aimed at assessing the relationship between major cost factors that affect technical performance of small size local government projects in Nigeria. Survey instruments were administered to major stakeholders in the construction industry comprising of project clients, contractors and consultants using proportionate stratified random sampling method. A Warp partial least square-structural equation modeling (PLS-SEM) software algorithm was used for the analysis of collected data. The software is one of the powerful software for data analysis and has an advantage of providing p values based on the structure of the research model. The study concluded that cash flow problem, fraudulent practice and nature of construction environment are the major factors affecting technical performance of local government projects in Nigeria and further recommended the use of mediator variables like pay for performance and advance payment policy to minimise such negative effects. Governments in developing countries should devise a good cash flow policy and impose stringent penalties against any party involved in fraudulent activity.

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“…Okpala and Aniekwu (1988) searched for the main causes of high costs of construction projects in Nigeria, and found that the main causes of cost overruns were shortage of materials, finance and payment for completed works, poor contract management, price fluctuations and fraudulent practices. In another study from Nigeria, conducted by Elinwa and Buba (1993), they found that the material cost, fraudulent practices, materials prices increment, high cost of machineries and poor planning were the most important causes of cost overruns. Koushki, et al (2004) carried out a study about delays and cost increases in the construction of private residential projects in Kuwait, it aimed to find the reasons for delays and cost increases in the construction projects from the standpoint of the owner.…”

Section: Literature Reviewmentioning

confidence: 99%

Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping)

Abusafiya¹,

Suliman²

2017

MAS

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Cost performance is one of the basic criteria for measuring construction project success. Despite its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. The paper attempts to identify the major causes of cost overrun in Bahrain construction sector, and to assess the effect of these causes on cost overrun. A list of these causes was collected through an extensive literature review, historical construction projects records and expert opinions. In total 45 factors were short-listed to be made part of questionnaire used in a survey conducted with representatives from local contracting, consulting, and client firms. Findings are presented in form of tables that classify cost overrun factors, and their ranking. The overall results showed that frequent design changes, mistakes during construction, and schedule delay were considered as the most important factors of cost overrun causes in Bahrain construction industry.

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Construction Cost Factors in Nigeria

Cited by 75 publications

References 3 publications

Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia

Significant Factors Causing Cost Overruns in Large Construction Projects in Malaysia

Influences of Cost Factors Affecting Technical Performance of Local Government Projects in Nigeria: A Partial Least Square-Structural Equation Modeling (PLS-SEM) Approach

Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping)

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