IMPACT OF COST CONTROL TECHNIQUES ON PERFORMANCE OF BUILDING PROJECTS

ABSTRACT

This study examined the impact of cost control techniques on performance of building projects vis-à-vis control techniques frequently used by contractors in building projects in Lagos State; the effectiveness of cost control techniques on schedule performance of construction projects; and the perceived impact of budgeting cost control technique on project cost overruns. Survey research design was used in the study. Questionnaire was the major tool for data collection and data collected were analyzed using the statistical tools of frequency counts, simple percentage and Chi-Square (X2) test with the aid of Statistical Package for the Social Sciences (SPSS). A total 163 copies of questionnaires were administered to the respondents, while 158 were properly filled and returned for the data analysis. Test of hypothesis was done at 5% level of significance. The key findings showed that there are cost control techniques frequently being used by contractors in building projects in Lagos State; effectiveness of cost control technique has a significant impact on schedule performance of construction projects in Lagos State; and there is a significant relationship between budgeting cost control technique and project cost overruns. To this end, the study recommended that building project managers in Lagos State should constantly attend workshop and seminars on construction project management. This will refresh and broaden their required knowledge for controlling cost of their projects.  This is because the result of this study has revealed that effective cost control technique has a significant impact on schedule performance of construction projects in Lagos State.


CHAPTER ONE

INTRODUCTION

1.1             Background to the Study

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1.2             Statement of the Research Problem

In general, the negative impact of a poorly conceived cost control techniques on the performance of building projects in Nigeria is too glaring and can be seen in major cities and towns cut across the country. There had been an epidemic of white elephant projects across states in the country. It is however sometime accidental that a project would become a white elephant project and ultimately being abandoned, perhaps on account of interplay of cost control and macro-economic variables interplay during construction process. This and other factors make abandoning project inevitable. Similarly, there are several factors that could determine the fate of a building project, the interplay of cost and time variables is one of such factors. Cost and time are two interrelated variables that has tendency of determining building project success or performance.

Most times building clients are interested in obtaining functional facilities which is completed in time within budgeted, cost, quality and scope. Unfortunately, most project managers and contractors in Nigeria find it difficult in controlling cost on their construction sites due to poor cost control techniques, labor shortages, insecurity, poor project coordination and poor budgeting cost control technique.

Hence, this research study seeks to investigate the impact of cost control techniques on performance of building projects in Nigeria.

1.3       Aims and Objectives of the Study

The general aim of this study is to examine the impact of cost control techniques on performance of building projects. The specific purposes of the study are:

        i.            To examine cost control techniques frequently used by contractors in building projects in Lagos State.

     ii.            To evaluate the effectiveness of cost control techniques on schedule performance of construction projects.

   iii.            To investigate the perceived impact of budgeting cost control technique on project cost overruns.

1.4       Research Questions

The study will be guided by the following research questions;          

        i.            What are the different cost control techniques frequently used by contractors in building projects in Lagos State?

     ii.            How does the effectiveness of cost control techniques impact on schedule performance of construction projects?

   iii.            What is the perceived impact of budgeting cost control technique on project cost overruns?

1.5       Research Hypotheses

Ho1:    There are no cost control techniques frequently used by contractors in building projects in Lagos State.

Ho2:    Effectiveness of cost control technique has no impact on schedule performance of construction projects.

Ho3:    There is no relationship between budgeting cost control technique and project cost overruns

1.6       Significance of the Study

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