THE IMPACT OF COST CONTROL TECHNIQUES ON CONSTRUCTION PROJECTS DELIVERY


THE IMPACT OF COST CONTROL TECHNIQUES ON CONSTRUCTION PROJECTS DELIVERY

ABSTRACT:

The contribution of the construction industry to national economic growth necessitates improved efficiency in the industry by means of cost effectiveness and timeliness, and would certainly contribute to cost savings for the country as a whole.

This study examined various cost control techniques used in construction projects and the impact they have on project delivery, identified cost control technique frequently used by contractors in construction projects, examined problems encountered by contractors in managing construction project cost and determined the impact of costcontrol techniques on the duration of construction projects. Simple random sampling was used to determine sample size (50 contractors) from the population. Structured questionnaire was used for data collection and this was supplemented with interview of key informants. Data were analyzed using Chi-square. Results showed that Cost Control techniques affect cost and time of a construction project. Cost Control problems lead to construction project delivery failures.

In conclusion, the construction industry is a key industry to economic growth of any nation providing shelter for economic and social activities including on-site and off-site infrastructure to facilitate the smooth functioning of these activities. It was recommended that the industry should take advantage of advancement in ICTS to automate their cost information management systems.

TABLE OF CONTENTS

Title Page    -    -    -    -    -    -    -    -    -    i

Approval Page    -    -    -    -    -    -    -    -    ii

Declaration    -    -    -    -    -    -    -    -    iii

Dedication    -    -    -    -    -    -    -    -    -    iv

Acknowledgement    -    -    -    -    -    -    -    v

Abstract    -    -    -    -    -    -    -    -    -    vi

Table of Contents    -    -    -    -    -    -    -    vii

CHAPTER ONE – INTRODUCTION

1.1    Background of the Study    -    -    -    -    -   

1.2    Statement of General Problem    -    -    -    -   

1.3    Objective of the Study    -    -    -    -    -    -   

1.4    Research Questions    -    -    -    -    -    -   

1.5    Hypothesis   -      -      -      -      -      -      -        -        -        

1.6    Significance of the Study    -    -    -    -    -   

1.7    Scope of the Study    -    -    -    -    -    -   

1.8    Definition of Terms    -    -    -    -    -    -   

CHAPTER TWO – REVIEW OF RELATED LITERATURE

2.1    Introduction    -    -    -    -    -    -    -    -    -

2.2 COST MANAGEMENT AND COST CONTROL TECHNIQUES USED IN THE CONSTRUCTION INDUSTRY    -    -    -    -    -    -    -        -

2.3 RELATIONSHIP BETWEEN CONSTRUCTION PROJECT DELIVERY AND COST    -    -    -    -    -    -    -        -           -    -    -    -

2.4 FACTORS AFFECTING CONSTRUCTION COST AND TIME PERFORMANCE

2.5 FACTORS CAUSING PROJECT COST OVERRUNS    -    -    -    -

2.6 FACTORS CAUSING CONTRUCTION TIME DELAYS    -    -    -

2.7 EMPIRICAL LITERATURE-    -    -    -    -    -    -    -

CHAPTER THREE – RESEARCH METHODOLOGY

3.1    Introduction    -    -    -    -    -    -    -    -    -

3.2    Research Design    -    -    -    -    -    -    -    -

3.3    Area of the Study    -    -    -    -    -    -    -    -

3.4    Population of Study    -    -    -    -    -    -    -    -

3.5    Sample size    -    -    -    -    -    -    -    -    -

3.6    Instrument for Data Collection    -    -    -    -    -    -

3.7    Reliability and Validity of the Instrument    -    -    -    -   

3.9    Method of Data Collection    -    -    -    -    -    -    -

3.10    Techniques of Data Analysis    -    -    -    -    -    -   

CHAPTER FOUR – DATA PRESENTATION AND ANALYSIS

4.0    Introduction    -    -    -    -    -    -    -    -    -

4.1    Data Presentation and Analysis    -    -    -    -    -    -

4.2    Characteristics of the Respondents    -    -    -    -    -

4.3    Data Analysis    -    -    -    -    -    -    -    -    -

4.4    Testing Hypothesis    -    -    -    -    -    -    -    -

4.5    Summary of Findings    -    -    -    -    -    -    -    -

4.6    Discussion of Findings    -    -    -    -    -    -    -

CHAPTER FIVE – SUMMARY, CONCLUSION AND RECOMMENDATION

5.1    Summary    -    -    -    -    -    -    -    -    -    -

5.2    Conclusion    -    -    -    -    -    -    -    -    -    -

5.3    Recommendations    -    -    -    -    -    -    -    -

    References -    -    -    -    -    -    -    -    -    -

Appendix    -    -    -    -    -    -    -    -    -    -

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

It is a known fact that the Nigerian construction industry continues to occupy an important position in the nation’s economy even though it contributes less than the manufacturing or other service industries, (Aibinu and Jagboro, 2002). The contribution of the construction industry to national economic growth necessitates improved efficiency in the industry by means of cost-effectiveness and timeliness, and would certainly contribute to cost savings for the country as a whole. It is also common knowledge that the implementation of the construction project in the industry is usually accompanied with time delay and cost increase as well as owner dissatisfaction (Hafez, 2001).

In general most (if not all), construction projects experience time delays and cost overruns during their implementation phase (Koushki and Kartam,2004). Numerous researchers, both in the developed and developing nations have also examined and identified the causes of time and cost overrun in the construction industry. Mansfield, Ugwu and Doran (1994), for example performed a comprehensive analysis of most important factors responsible for project delays and cost overrun in Nigerian construction projects. This analysis indicated poor contract management, financing and payment of completed works, change in site conditions, shortages of materials, design changes, subcontractors and nominated suppliers, other factors were price fluctuation inaccurate estimates, delays and additional works as factors responsible for project delays and cost overrun.

A comprehensive classification of causes of construction delays has also been determined by Henesy (1993). The classification system included materials, labour, equipment and financial constraints, as the main contributory variable to causes of construction time overrun. The list of major factors causing construction delay in Thailand by Ogunlana and Proumkunting (1996) included the inadequacy of resources supplies, client and consultant shortcomings and incompetence. Koushki and Kartan (2004) studied the impact of construction materials on project time and cost in Kuwait and identified the project related variable affecting the on time delivery of materials as material selection, time, type of materials and their availability in the local market.

Time impacts are inevitable on construction projects, primarily because of the uniqueness of each project and the limited resources of time and money that can be spent on planning, executing and delivering the project.

Time factors are inherent in all of project construction’s undertakings. Construction projects have long been recognized as particularly cost, time and risk-laden. Some of the time and cost factors associated with the construction process are fairly predictable or identifiable; others may be totally unforeseen. The constructed project may not perform as anticipated because the owner may have unrealistic expectations regarding the delivery time of construction forcing contractors into unrealistic gambles, corner-cutting or commitments that may not be realistic (Frimpong 2003).

Project success can be defined as meeting goals and objectives as prescribed in the project plan. A successful project means that the project has accomplished its technical performance, maintained its schedule, and remained within budgetary costs. Project management tools and techniques play an important role in the effective management of a project. Therefore, a good project management lies in the management tools and techniques used to manage the project. Project management involves managing the resources—workers, machines, money, materials and methods used. Some projects are effectively and efficiently managed while others are mismanaged, incurring much delay and cost overruns and negatively affecting the economy (Frimpong 2003).

Assessing construction projects’ delivery time is critical in today’s market-driven economy.

1.2 PROBLEM STATEMENT

Construction can be considered as a dynamic industry which is constantly facinguncertainties. These uncertainties and the many stakeholders in these kinds of projects, makethe management of costs difficult which consequently causes cost overruns. Therefore, costoverruns are considered one of the most critical issues during the execution of constructionprojects (Chan, et al., 2004; Doloi, 2011).

As mentioned by Van Der Westhuizen andFitzgerald (2005), the presence of cost overruns can be a reason for project delays or possible project failures. Howeverthis idea has been refuted by many authors who considered that project success depends onmany other factors that should be assessed to conclude the success or failure of a project(Chan, et al., 2004). Moreover, there have been many studies that suggest that the success of aproject depends on the presence of certain critical factors which can also change depending onthe objective to be met (Iyer and Jha, 2005). In other words, some authors ascertained thatthere are some critical success factors that help to improve cost performance and prevent costoverruns.

1.3 OBJECTIVES OF THE STUDY

The main aim of the study is to examine various cost control techniques used in construction projects and the impact they have on project delivery. Specific objectives of the study are:

⦁    To identify cost control technique frequently used by contractors in construction projects.

⦁    To examine problems encountered by contractors in managing construction project cost.

⦁    To determine the impact of costcontrol techniques on the duration of construction projects.

1.4 RESEARCH QUESTIONS

In-order to guide the study and achieve the above stated research objectives; the following research questions were formulated:

⦁    What cost control techniques are frequently used by contractors in construction projects?

⦁    What are the problems faced by contractors in controlling cost in the construction project process?

⦁    What impact does cost controlling techniques have on the duration of construction projects?

1.5    RESEARCH HYPOTHESES

1.    Ho:Cost control problems do not lead to project delivery failures.

Hi:Cost control problems lead to project delivery failures.

2.    Ho:Cost Control techniques affect to construction delivery timing and cost

Hi: Cost Control techniques do not affect to construction

delivery timing and cost

1.6 SIGNIFICANCE OF THE STUDY

This study will be of importance to building professionals and the general public because it would not only clarify but also create awareness of the extent to which inadequacies in cost control techniques can adversely affect project performance. The study will also help contractors, clients, consultants and all parties involved in construction projects about ways of improving their current method of cost management and control.

The study will also be of great benefit for other student researchers’ who may want to venture into the same subject matter. Having gotten results-both empirically and theoretically, the study will serve as a foundation for future research studies.

1.7 SCOPE OF THE STUDY

The study will cover some selected quantity surveyors from Owerri. All findings and recommendations from the study may not reflect the true view of the traditional roles and changing roles of quantity surveyors as the researcher could not cover a wider area due to financial and time constraints.

1.8 DEFINITION OF TERMS

1.    Construction: In the fields of 1.    architecture and 1.    civil engineering, construction is a process that consists of the 1.    building or assembling of 1.    infrastructure. Far from being a single activity, large scale construction is a feat of 1.    human multitasking. Normally, the job is managed by a 1.    project manager, and supervised by a 1.    construction manager, 1.    design engineer, 1.    construction engineer or 1.    project architect.

2.    Deliverable: Deliverable is a term used in project management to describe a tangible or intangible object produced as a result of the project that is intended to be delivered to a customer (either internal or external). A deliverable could be a report, a document, a server upgrade or any other building block of an overall project.

3.    Project management: this is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals. A project is a temporary endeavour with a defined beginning and end (usually time-constrained, and often constrained by funding or deliverables),undertaken to meet unique goals and objectives, typically to bring about beneficial change or added value.

4.    Time: This is a dimension in which events can be ordered from the past through the present into the future, and also the measure of durations of events and the intervals between them.

5.    Cost: A cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost.

6.    Cost overrun: occurs when the final cost of the project exceeds the original contract value at the time of completion.

7.    Good cost performance project: Project in which the cost overrun of the project does not exceed 10 percent of the initial budget.

8.    Poor cost performance project: Project in which the cost overrun of the project exceeds 10 percent of the initial budget.

REFERENCES

Aibinu A.A and Jagboro G.O (2002): “The Effects of Construction

Delays on Projects Delivery in Nigeria Construction Industry”. International Journal of Project Management, 20, 593-599.

Chan, A.P.C., Scott, D. and Chan, A.P.L. (2004). Factors affecting

the success of aconstruction project. Journal of Construction Engineering and Management 130pp.

Frimpong, Y. (2003). Project management in developing countries:

causes of delay and cost overruns in construction of groundwater projects. Unpublished Masters Research Project, University of Technology, Sydney, Australia.

Hafez, N (2001): “Residential Projects Obstacles and problems in

Kuwait MS Project”, Department of Civil Engineering, Kuwait University.

Henesy, M. (1993): “Tools of Total Quality Management”. Journal of

Construction Engineering and Management ASCE. Pg 9(4), 329-339

Iyer, K.C. and Jha, K.N.(2005). Factors affecting cost performance:

evidence from Indianconstruction projects. International Journal of Project Management 23(4), pp. 283-

Koushki, P.A and Kartan, N. (2004): “Impact of Construction

Materials on Project Time and Cost in Kuwait, 11 (2), 123-132.

Ugwu et al (1994): “Concurrent Delays in Construction Projects”.

Journal of Construction Engineering and Management, 113 (4), 691 –602

.

THE IMPACT OF COST CONTROL TECHNIQUES ON CONSTRUCTION PROJECTS DELIVERY



TYPE IN YOUR TOPIC AND CLICK SEARCH.






RESEARCHWAP.ORG
Researchwap.org is an online repository for free project topics and research materials, articles and custom writing of research works. We’re an online resource centre that provides a vast database for students to access numerous research project topics and materials. Researchwap.org guides and assist Postgraduate, Undergraduate and Final Year Students with well researched and quality project topics, topic ideas, research guides and project materials. We’re reliable and trustworthy, and we really understand what is called “time factor”, that is why we’ve simplified the process so that students can get their research projects ready on time. Our platform provides more educational services, such as hiring a writer, research analysis, and software for computer science research and we also seriously adhere to a timely delivery.

TESTIMONIES FROM OUR CLIENTS


Please feel free to carefully review some written and captured responses from our satisfied clients.

  • "Exceptionally outstanding. Highly recommend for all who wish to have effective and excellent project defence. Easily Accessable, Affordable, Effective and effective."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "I saw this website on facebook page and I did not even bother since I was in a hurry to complete my project. But I am totally amazed that when I visited the website and saw the topic I was looking for and I decided to give a try and now I have received it within an hour after ordering the material. Am grateful guys!"

    Hilary Yusuf, United States International University Africa, Nairobi, Kenya.
  • "Researchwap.org is a website I recommend to all student and researchers within and outside the country. The web owners are doing great job and I appreciate them for that. Once again, thank you very much "researchwap.org" and God bless you and your business! ."

    Debby Henry George, Massachusetts Institute of Technology (MIT), Cambridge, USA.
  • "Great User Experience, Nice flows and Superb functionalities.The app is indeed a great tech innovation for greasing the wheels of final year, research and other pedagogical related project works. A trial would definitely convince you."

    Lamilare Valentine, Kwame Nkrumah University, Kumasi, Ghana.
  • "I love what you guys are doing, your material guided me well through my research. Thank you for helping me achieve academic success."

    Sampson, University of Nigeria, Nsukka.
  • "researchwap.com is God-sent! I got good grades in my seminar and project with the help of your service, thank you soooooo much."

    Cynthia, Akwa Ibom State University .
  • "Sorry, it was in my spam folder all along, I should have looked it up properly first. Please keep up the good work, your team is quite commited. Am grateful...I will certainly refer my friends too."

    Elizabeth, Obafemi Awolowo University
  • "Am happy the defense went well, thanks to your articles. I may not be able to express how grateful I am for all your assistance, but on my honour, I owe you guys a good number of referrals. Thank you once again."

    Ali Olanrewaju, Lagos State University.
  • "My Dear Researchwap, initially I never believed one can actually do honest business transactions with Nigerians online until i stumbled into your website. You have broken a new legacy of record as far as am concerned. Keep up the good work!"

    Willie Ekereobong, University of Port Harcourt.
  • "WOW, SO IT'S TRUE??!! I can't believe I got this quality work for just 3k...I thought it was scam ooo. I wouldn't mind if it goes for over 5k, its worth it. Thank you!"

    Theressa, Igbinedion University.
  • "I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much researchwap.com, infact, I owe my graduating well today to you guys...."

    Joseph, Abia state Polytechnic.
  • "My friend told me about ResearchWap website, I doubted her until I saw her receive her full project in less than 15 miniutes, I tried mine too and got it same, right now, am telling everyone in my school about researchwap.com, no one has to suffer any more writing their project. Thank you for making life easy for me and my fellow students... Keep up the good work"

    Christiana, Landmark University .
  • "I wish I knew you guys when I wrote my first degree project, it took so much time and effort then. Now, with just a click of a button, I got my complete project in less than 15 minutes. You guys are too amazing!."

    Musa, Federal University of Technology Minna
  • "I was scared at first when I saw your website but I decided to risk my last 3k and surprisingly I got my complete project in my email box instantly. This is so nice!!!."

    Ali Obafemi, Ibrahim Badamasi Babangida University, Niger State.
  • To contribute to our success story, send us a feedback or please kindly call 2348037664978.
    Then your comment and contact will be published here also with your consent.

    Thank you for choosing researchwap.com.