DETERMINANTS OF BUILDING CONSTRUCTION PROJECT COST IN NIGERIA.

Abstract

A review of literature on the factors that estimators in building industry consider when estimating for building projects indicated that nature of clients, professionals involved in a project and their decision regarding design, function, duration, technology and implementation have significant effects on the overall project cost. The objective of this is to examine the importance of these factors in determining the costs of building projects. Data for the study were obtained through random sampling of public building projects completed in Nigeria after the year 1995. The study identified six major significant factors in project cost among the design related variables as: Level of design complexity; level of construction complexity; level of technological advancement; percentage of repetitive element; presence of special issues and scope of work. Among time/cost related factors, three most significant factors are; Importance for project to be delivered; time allowed by the client and his representative for bid evaluation; need for the project to be completed. Client, consultant and contractor’s experience on similar project; adequacy of contractor’s plants and equipments are most significant among project parties experience related factors. It is suggested that previous information on these factors can assist an experienced professional rating of those factors in making realistic estimate of building project cost. To achieve this, Government as the largest initiator of public projects should formulate policies that will make client’s report on previously executed projects by contractors and consultants available to the construction professional associations and the general public. This, to a very large extent will ensure most realistic rating of contractors and consultants alike when estimating the probable cost of project and will also ensure quality work is being delivered by contractors and improvement on service by the professionals.