Frequency of change in construction project cost in Kaduna metropolise Nigeria

Abstract

This project research assessed the frequency of change in construction project cost in Kaduna metropolis Nigeria. Change was characterised by escalation, discrepancies, overrun and variation of budgeted sum caused by factors like Fluctuation of prices, Shortage of Materials/ Scarcity, Delay in completion, Government policy and officials, Dependency on imported materials, Project fraud and corruption etc., while construction project cost comprises of the cost of labour, cost of material, cost of plant and profit. The study was intended to assess the frequency of change in construction project cost and to recommend ways to reduce change in cost of project in Kaduna metropolis Nigeria. This was in view with the situation that construction projects suffered many setbacks as a result of change in its cost. The study was conducted through cross-sectional survey; data was collected in December 2015, using questionnaire techniques from 65 construction processionals randomly selected from accessible population, analysed using simple descriptive technique and presented in tables and figures. The study established that the frequency of change in construction project cost in Kaduna metropolis has a negative implication. The study concludes that the negative implication has effect on the construction project cost in Kaduna metropolis Nigeria. It recommends that much focus should be placed on the major factors affecting construction cost in order to reduce the cost of construction, enhance construction performance and generate confidence within the construction industry. It also recommend that contractors should come up with a clear plan and strategy before starting a project, early project planning and scheduling of labour, equipment and cash, combined with a good bidding strategy, will help to obtain efficient work at a proper price. It further recommend that clients should clearly identify their requirements and needs, whether they are able to achieve them with their financial capability in order to reduce payment problems and there should be proper coordination and communication among various parties working on the project in order to improve management, control problems and reduce any avoidable delay. finally contractors and Consultants should work together to ensure that they give the Client quality for his money without exceeding the contract sum and all parties should take responsibility to make use of the proffered solutions to reduce cost of construction.

Keywords: frequency, change, construction project cost, escalation, discrepancies, overrun, variation, Fluctuation of prices, cross-sectional survey etc.

Table of Contents

Declarationii

Certificationiii

Acknowledgementiv

Abstractv

Table of Contentsvi

List of Tablesix

Table of Figuresx

CHAPTER ONE: INTRODUCTION1

1.1 Background of the Study1

1.2 Statement of Problem4

1.3 Aim and Objectives of the Study4

1.4 Research Questions5

1.5 Significant of the Study5

1.6 Scope of the Study6

1.7 Research Methodology6

1.8 Definition of Terms6

CHAPTER TWO: LITERATURE REVIEW8

2.1. Introduction8

2.2 The Nigerian Construction Industry8

2.3 The Roles of Construction Actors in Construction cost9

2.3.1 The client9

2.3.2 The consultant10

2.3.3 The contractor10

2.4 Component of Building Prices10

2.4.1 Labour element11

2.4.2 Material element11

2.4.3 Plant element12

2.4.4 Overhead13

2.5 Stages of Construction Project Cost13

2.5.1 Initial cost13

2.5.2 Pre-Design costing14

2.5.3 Final cost15

2.6 Change in Construction Project Cost16

2.7 Factors that Causes Change in Construction Project Cost17

2.7.1 Fluctuations of prices26

2.7.2 Shortage of materials/ scarcity27

2.7.3 Architect instructions/ variation28

2.7.4 Delay in completion29

2.7.5 Government policies and officials30

2.7.6 Dependency on imported material.31

2.7.7 Project fraud and corruption.32

2.7.8Inflation of prices33

2.7.9 Effects of weather33

2.7.10 Inadequate production of raw materials

Chapter 3

Chapter 4

Chapter 5