Assessment of Project Cost Control Strategies in the Nigerian Construction Industry – A Case Study of South West Nigeria

Abstract

The construction industry is a major consumer of capital resources by virtue of the magnitude, complexity and nature of works it executes. Yet improving cost performance still remains a chronic challenge facing the construction industry worldwide. Apart from advance made by contractors to devise mechanism to manage project cost, studies across the world reveal that construction projects are hardly completed within budget. However this background is considered unhealthy for an industry whose capital consumption is heavy and concomitant cost overrun spells disastrous financial consequences to the investor. The study was aimed at appraising the various cost control strategies used in Nigeria construction industry with specific objective to assess the impacts of effective cost control strategies on cost and timely completion of a project. Related journals and books were reviewed and also structured questionnaire was employed to collect data from selected Quantity Surveyors, Architects, Civil engineers and Builders. It was deduced from the analysis that cost estimating and budgeting was the most used among cost control strategies. It was rated highest with mean score of 4.6 while Variance analysis and cost value reconciliation was agreed to be the least used among identified cost control strategies. Also the research revealed that an effective use of cost control strategies has impact on cost, time, quality and risk performance of construction projects. The study therefore recommended that adequate construction budget, complete documentation of the project, proper management strategies, effective cost planning, monitoring and control and effective communication on site should be the main focus of the parties for effective project delivery in the construction industry.