Assessment of Measures Mitigating the Impact of Claims on Construction Project Cost.

Abstract

The study assessed the measures mitigating the impact of claims on construction project cost with the view of determining the adequacy and effectiveness of these measures. In this study, a quantitative research approach was adopted and data relevant to the study collected from 95 Consultancy Firms in which 86 were the responses fit for analysis as 8 had incomplete information from a list of 120 questionnaire distributed in Abuja in which random sampling technique was used. Secondary source of data such as relevant literatures were reviewed. The analysis of data collected for this study was conducted using Statistical Package for Social Scientist (SPSS) and Smart Partial Least Square (Smart PLS). The SPSS software was used to conduct descriptive analysis and Smart PLS 3.0 was used to estimate measurement and structural model parameters. The relationship between the impacts of claims and the latent constructs and adequacy of mitigating measures is significant with values at 5% significance level with β = 0.00, 0.03, 0.00, and 0.03 respectively. All the indicator variables for Effectiveness of Mitigating Measures (EMM) construct are the same as variables with the Adequacy of Mitigating Measures (AMM) construct, so they were interchangeable. This interchangeability supports the notion that once a mitigating measure is adequate then it is effective. The resulting and final model is indicated after dropping loadings that did not add to the explanatory power of the model.