A Study of Factors Influencing Overruns of Construction Projects in Nigeria

Abstract

The impact of cost and time overruns on construction projects is an undesirable experience both to the clients and stakeholders in the industry. This has regularly led to dispute, unfriendly working relationship, abandonment, low quality and environmental nuisances. This paper evaluated factors contributing to overruns of construction projects and their impact on projects performance in Nigeria. Data were collected through questionnaire administration on professionals in the industry. Mean Item Score (MIS) and Relative Significant Index (RSI) were employed to analyse data collected. Increase in material cost, inaccurate materials estimation and underestimating of project costs among others are the most significant cost factors while the most significant time factors include unexpected site condition, increase in project scope, lack of timely progress payment and inadequate planning. It becomes obvious that giving adequate consideration to factors contributing to construction overruns would minimize their ugly consequences on project performance and efficiency. Among recommendations made are that, cost estimators should improve on methods of cost determination, designers to make the full designs available at every stage in construction process and contractors should also carry out adequate site visit for better understanding of site conditions before pricing and cost forecasting