COST CONTROL MODEL FOR EFFECTIVE DAM PROJECTS DELIVERY IN NIGERIA

Abstract

ABSTRACT Construction investments contribute significantly to the development and growth of national economies. Delays in delivering construction projects, abandonment of projects, poor quality works and cost overruns are common features in the Nigerian construction industry due to inappropriate application of cost control techniques in the implementation of the projects. Over 450 billion Naira has been sunk into projects that have not benefited anticipated users. Worried by the phenomenon of poor projects delivery particularly in the water sector of the Nigerian economy, thus, this research aimed at developing a cost control model for effective Dam projects delivery. The research investigated the causes of poor projects delivery and the linkage between application of cost control techniques and effective project delivery of Dams in Nigeria. This research aligned with pragmatic paradigm which allowed the use of both quantitative and qualitative methodologies. The quantitative approach used survey questionnaire administered to a carefully chosen group of practitioners cutting across construction companies, Engineering consultants and members of professional bodies. In-depth interview was used to obtain qualitative data from construction companies operating in Nigeria. A great deal of data was also obtained from archival records that existed in the client’s offices. Data analysis was by descriptive and inferential statistics, content and thematic analysis. The Partial Least Square Structural Equation Modelling (PLS-SEM) technique was used in analysing and establishing the relationships between the various constructs in the study. The findings revealed that the most significant contractor related causes of poor dam projects delivery were unrealistic tenders and technical incompetence. The most significant finance related causes of poor dam projects delivery were payment delays, variations and rework during construction and accuracy of estimates at tender. The study further revealed that clients also contributes to poor dam projects delivery by payments delays, technical omissions at design stage as well as incomplete design at tenders. The study revealed also that the most significant direct effects of poor dam projects delivery were inability of government to provide services to the people. While the most significant indirect effects of poor dam projects delivery are waste of resources, poor access to water supply. Also, the nonapplication of cost control techniques in the delivery of the Dam projects adversely affect the cost, completion time and quality of the project. The study revealed that project budgets and meetings were the most familiar cost control techniques while contingency budgets and project budgets were the most frequently used techniques. The result shows that there is a positive relationship between the challenges in the use of cost control techniques and the effects of use of cost control techniques on dam projects delivery. There is also a significant positive relationship between causes of project failure and cost control technique. The study concluded that cost related, and client related issues were major causes of poor dam projects delivery in Nigeria. Based on this conclusion, the study recommends a need to have a mechanism that will detect cost and budget overruns in time and correct them, while the project is still underway. It also recommends the isolation of the cost control system of projects at site level from oversight systems controlled at the head offices.