Abstract
Objectives: This work evaluated the mitigation measures against the risks of cost overrun in Nigerian construction industry. This would control the excess spending and thereby improves the contribution of the industry to the country??s gross domestic products (GDP).
Methods/Statistical analysis: Descriptive cross-sectional survey design was adopted while stratified random sampling was adopted to select stakeholders. Structured questionnaire and telephone interviews were adopted for data collection. Reliability of the instrument was established by applying split-half method after duly validation by experts in the field. Cross tabulation and chi-square was adopted to test the data, while the test to find out the strength of association between the variables was carried out using Phi and Cramer’s V.
Findings: The study identified delay in payment of claims and honouring of certificates as first with P-value of 0.102 which was followed by inaccurate estimation with P-value of 0.933 respectively as the commonest internal risk factors causing cost overrun. Fluctuations/ price escalations of materials, labour and equipment ranked first among the identified external risk factors causing cost overrun with a MIS of 3.90 and RII of 0.780, meaning that the respondents believed that it was a major external factor that affects the overall cost of a project. Ranked next is the shortage of skilled labour for the execution of the project, with the MIS of (3.58). The P-value test carried out shows that all the listed factors in Table 1-2 affect project cost overrun. Furthermore, thorough planning before the project begins ranked first among the mitigating measures of cost overrun with MIS of 4.06. This was keenly followed by effective communication with MIS of 4.04.
Application/Improvements: The study reveals further the damage cost overrun done to the economy and the measures to adopt in curbing its effect in order to improve the economic growth of the country.
Keywords