STUDY OF FACTORS AFFECTING CONSTRUCTION COST PERFORMANCE IN JALINGO TARABA STATE

1.0 Introduction

Construction industry in Nigeria had been a major source of employment for 70% of labour force in the country, thus it controls the capital flow, as well as labour resources, which has cost implications. Adequate management of these resources is considered an important aspect of project works; it determines to a large extent the overall success of project works. So also if the resources are adequately harnessed, issues that pertains to cost overrun would not arise which could result to variations and claims.

Some firms rely on claim as a result of variation incurred during the course of the Project execution and afterward evaluate their profit after incurring necessary and unnecessary cost on a project. This however has tendency of positioning such in a disadvantageous profit position. An effective cost management strategy is therefore necessary, this could be achieved through putting in place a proactive cost management strategy (Love et al, 2005; Ogunsemi and Jagboro, 2005; Ferry et al, 1998).

They described cost management system as a process that should be carried out throughout the life cycle of a project, from the inception to final completion and final payment to the contractor. In the light of this, the timeliness and cost effectiveness of various operation and decision carried out will determine to an extent the magnitude of cost that could be saved on the project. ( Kerzner, 2005; Ogunsemi and Jagboro, 2005).

However Dissanayaka and KuJTSswamy(1999) opined that Time, Cost, Quality target as well as project satisfaction tend to be most important key to measure the overall performance of a project work. Furthermore, various research works have also indicated that most project records cost or time overrun during their tenure of execution.( Odusami and Olusanya, 2000). (Mbachu and Olaoye, 1989; Madewsley, et al, 2004); opined that 51percent of average delay were experienced yearly which culminates in cost overrun, certain factors are responsible for this, to this end however this study attempts at investigating such factors and proffer solution to the pandemic. The scope of this research work shall be limited to building construction sites within the selected area in Nigeria, Ogun state, Lagos state and Northern part of Nigeria. This is attributable to unique project environment they possess. The aim and Objectives of the research are as follows:

The research work is to determine the various factors that interplay in impacting project cost performance, investigating the order of severity of the factors, and recommending ways of curtailing the effects. Field survey was carried out with 100 questionnaire distributed and 67 were used for analysis of response from construction practitioners selected randomly from population of construction firms, The primary data were collected with the aid of structured questionnaire designed on Likert Scale of 1to 4 rating scale. Mean item score, Simple percentages and severity index were used as analytical tool of the generated data. SPSS (Statistical Packages for Social Science Students) was used in determining pattern of relationship among the cost determinants and variables. The factors were ranked in order of their degree of severity. It was discovered from the findings that, these factors are the major ones that results in cost overrun on construction sites.

• Inadequate planning
• Contractors project inexperience
• Inflation
• Incessant variation order
• Change in project design
• Project complexity
• Shortening of contract period and
• Fraudulent practices.

In order to prevent occurrence of cost overrun or a practice action towards prevention of such, the following are recommended.

1. Inadequate planning: breaking of project planning into short term achievable goals, medium term planning and Long term planning
2. Studying of project history for possible application on another similar projects
3. Bulk purchase of material
4. Proper design of the Project during design stage so as to avoid. Undue on-project variation
5. Establishing fraudulent detecting system or system of individual accountability to discourage pilfering, stealing and other related vices.

1.2 Aim and Purpose of Study

This study has focused on investigating procurement strategies adopted in Jalingo, Taraba State large construction projects. It also identified various factor affecting construction cost performance of Jalingo, Taraba State large construction projects.

Purpose of Study

Very rarely Jalingo, Taraba State projects are finished within estimated project cost. For improving cost performance, it is very important to identify the reasons affecting cost performance of Jalingo, Taraba State projects. Hence, there is a need of study in understanding the reasons and factors affecting project cost performance of construction projects.

1.3 Statement of Problem

This study revealed that;

1. Fluctuation in price of the material,
2. Cash flow and financial difficulties faced by contractors,
3. Shortage of site workers,
4. Lack of communication between parties,
5. Incorrect planning and scheduling by contractors

Are most severe factors while frequent design changes and owner interference are least affecting factors on construction cost performance in Jalingo, Taraba State large projects.

1.4 Research Approach

The project was carried out through interviews and survey using the questionnaire among the personnel involved in handling Jalingo, Taraba State large projects. Gathered data was analyzed statistically using SPSS software package.

1.5 Limitations of the Study

This study was limited to large construction projects administrated by Jalingo, Taraba State. During the course of this study, many things militated against its completion, some of which are:

1. Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
2. Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.

1.6 Significance of Study

This study has highlighted various issues causing poor project performance in Jalingo, Taraba State large projects. Ranking of the factors will enable the Jalingo Taraba State engineers for taking appropriate actions in improving the performance of cost in construction projects.

1.7 Definition of Terms

Builder: this is a professional in which is responsible for hazardous translating and developing all designs by other consultants.

Culture: this is defined as the total way of peoples life in terms of attitude benefits, perceptions, values and morality.

Management: It is the discipline of planning co-coordinating, organizing, controlling, leading, forecasting, securing and managing resources to being about the successful completion of specific project goals and Objectives.

Architects: this is a professional in the field of architecture who design building plan and supervision.

Construction: according to Wikipedia's encyclopedia construction is designed as a process of assembling of infrastructure and consists of building up of several activities into final project.

Project: it is a temporary endeavor having a defined beginning and end which is an undertaken to meet unique goals and Objectives.

Building Construction: it is the process off aiding structure to real property.

Building: It is defined as a structure erected where it is to stand with the main functions of shelter and habitation for man.

Project Manager (PM): is the person accountable for accomplishing the stated project Objectives.

Project Management (PM): This is field of study or discipline of planning organizing securing and managing resources for a successful completion of project within the stipulated time to meet its desired goals and Objectives.

Project Proposals (PP): They are documents designed to present a plan to action.

Quality: The general standards or grade of something it also means the highest of finest standard.

Management: this has to do with the ways and pattern in zerock construction organizer, plan, and control and managed all site and construction administration.

Project: is a temporary effort to create a unique product or several which the building construction that has to be done by Zerok construction without unnecessary delays and on time too.

Clients: proper funding will assist Zerock construction to execute their work effectively.

Structural Engineer: should ascertain that the correct size and type of reinforcement bar is used for each project to discourage collapse.

Quantity Surveyor (QS): As a cost analyst, the QS must ensure that the bill of quantities (BOQ) is adequately prepared for good quality project by Zerock construction Nigeria limited.

Site: it is the central point of all construction activities.