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Cost deviations between initial cost plan and final construction cost of building projects are on construction issues in the construction industry. This study examined cost overrun factors in public building projects in Akwa Ibom State. The objectives were to appraise economic, political, technical, social and environmental factors responsible for cost overrun in the construction industry.  The study employed structured questionnaire constructed using likert scale administered to 100 construction stakeholders in Uyo Municipal selected using random sampling. Data analysis involved mean item score, percentage and the test of hypothesis involved Chi Square. The study revealed that factors linked with economic parameter are most significant causes of cost overrun in building projects. Further findings indicate technical factors including coordination, competency of design team are also significant factors associated with cost overrun in building project delivery. Economic, technical, political, socio and environmental are therefore the critical sources of cost overrun factors associated cost overrun in building construction project delivery. Recommendations are directed towards the need for stakeholders to allow sufficient time for feasibility studies, planning, design, and information documentation before project execution. Adequate planning will ensure economic, technical, environmental, political variables responsible for cost overrun are addressed.


Title page                                                                                                                                i

Certification Page                                                                                                                   ii

Dedication                                                                                                                              iii

Acknowledgement                                                                                                                  iv

Abstract                                                                                                                                  v

Table of contents                                                                                                                    vi-vii


1.1              Background of the Study                                                                                           1

1.2              Statement of the Problem                                                                                           2-3

1.3              Aim and Objective of the Study                                                                                3

1.4              Hypothesis                                                                                                                  4-5

1.5              Significance of study                                                                                                  5

1.6              Scope of the Study                                                                                                     6

1.7              Limitation of the Study                                                                                              6


2.1       Literature Review                                                                                                       8-47


3.1       Data Sources                                                                                                               48

3.2       Hypothesis testing Method of Analysis                                                                     49       


4.0       Data analysis                                                                                                        53

            Questionnaire                                                                                                  54-58

4.2       Analysis of Primary Data                                                                                                  59

4.3       Contractual Procedures                                                                                                      59

4.4       Causes of Cost Overrun                                                                                                     60

4.6       Important of Techniques                                                                                                 61

4.7       The Reasons for Project Abandonment                                                                           62

4.8       Test of Research Hypothesis                                                                                62-66


5.0       Findings                                                                                                                      67-68

5.1       Recommendation                                                                                                        69-72

            Conclusion                                                                                                                  74-76



1.1       Background of the Study

Building construction industry has a great impact on the economy of all countries, Abd El-Razek, Bassioni, & Mobarak (2008).  It is one of the sectors that provide crucial ingredients for the development of an economy.  According to Abd El-Razek, Bassioni, & Mobarak (2008), the construction industry of many countries account for 6 – 9% of the gross domestic product (GDP). According to Alaghbari, Kadir, Salim, & Emawati (2007), it reaches up to 10% of the GDP of most countries.

The building construction industry is a vital element of the economy and has a significant effect on the efficiency and productivity of other sectors.  We cannot think of widespread investment in Manufacturing, Agriculture or Service sectors unless the construction results of infrastructure facilities are in place.  In some of the developing countries, the growth rate of construction activities outstrips that of population and of GDP (Ameh & Odusami, 2002).

The role the building construction industry plays in socio-economic development is significant.  It provides the basis upon which other sectors can grow by constructing the physical facilities required for the production and distribution of goods and services.  The construction industry has a significant multiplier effect on the economy as a whole. It is obvious that the building construction industry has special features that are not usually encountered in other industries. Usually in construction, when conditions in the field turn out to be more complex than what was anticipated in the planning and design stage, (pre-contract stage), additional cost and time are needed.  Moreover, the industry most times is custom oriented, meaning that it is difficult to use mass production technique. Because of all these factors, it is difficult to predict accurately how much money will be necessary to complete construction of building projects.

1.2       Statement of the Problem

Cost and time overrun are generally acknowledges as the most common costly, complex and risky problems encountered in building construction projects.  Because of the overriding importance of time for both the owner (in terms of performance) and the contractor (in terms of money), this could lead to frequent disputes and claims leading to litigation. To take care of this situation, a contract is formulated to identify potential delay situations in advance and to define and fix obligations to preclude such controversies. It is found in practice that not everything in the contract can be executed in stages, e.g. reinforcement can go on along with excavation and block work at the same time with and make effective use of cost.

Issues of cost overrun have made some public building projects to be abandoned or even to the extent of client engaging the contractor in litigation for non-completion or delay in completion time of the project as stated in the contract.  All these have made it imperative that, the factors that are responsible for these delays and also severity of each factor should be investigated. Most clients have identified inexperience supervisors, compromising of standard to maximize profit factor that lead to cost overrun of any project.   

1.3       Aim and Objectives of the Study

The aim of this study is to assess cost overrun factors in public building projects in Uyo Metropolis/Municipal.

The aim will be achieved through the following objectives:

1.         Appraise economic factors responsible for cost overrun in public building projects;

2.         Determine technical factors leading to cost overrun in public building projects;

3.         Assess socio-political contributing to cost overrun in public building projects;

4.         Determine environmental factors contributing to cost overrun of public building projects.

1.4       Research Hypothesis

H1       There is no significant variation in respondents’ perception of economic, environmental, socio, technical, and political factors contributing to cost overrun in public building projects.

1.5       Significance of the Study

This study will be of immense benefit to the major players in the building construction sector in Akwa Ibom State. These include clients, contractors and consultants. It will help find out those factors which cause problems in building contracts and how to resolve those issues. The findings and recommendations arising from the study will be of immense benefit not only to the major state holders in the industry but also to those who wish to make further studies on this topic.

1.6       Scope of the Study

Cost overrun of building projects are caused by many factors.  Each cause of cost overrun has different rates of occurrences and their impact on the final cost of the construction project also varies.

This study is carried out in Imo Sate, which is found in the South-Eastern part of Nigeria and the study is narrowed down to public building projects.

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