Stakeholders Perspective on Cost Overruns of Building Projects in Jos, Nigeria

Abstract

Cost overruns accounts for one of the avenues of wastages on projects and has continuously prevented the achievement of project objectives. In addition, conflicting interests of key project stakeholders has also been implicated as partly been responsible for escalation of project cost. This informed the decision to investigate using structured questionnaires the stakeholder’s perspective on cost overruns of building projects in Jos Nigeria. The questionnaires were designed to sample opinions of respondents comprising of practicing construction professionals in contracting, consulting and client organizations in Jos, Nigeria. Forty (40) questionnaires were administered; however, only thirty two (32) representing 80% was retrieved. Responses were sought for only completed building projects between 1990 and 2009 in Jos Nigeria whose data are available during the research. The severity index and percentage method are used to analyze data. Research findings suggest that 56.25% of respondents agree that cost overruns significantly affect the construction industry whereas 43.75% have varying degree of agreement. Delay in project execution and completion, project abandonment and reduction in work quality rank 1st, 2nd and 3rd respectively as effects of cost overruns on the construction industry. Quite notably all the respondents agreed that the clients, consultants and contractors share responsibility for cost overruns. The contractors and consultants both rank first as been responsible for cost overruns while clients rank least of the three key project stakeholders. In addition, lack of proper management techniques, lack of sufficient project details when required and payment delays accounts for the most actions of contractors, consultants and client respectively that are responsible for cost overruns. It is suggested that the key project stakeholders be more conscious of their actions and/or inactions as they have an impact on project cost.