Delays and Cost Overruns in Construction Projects in Nigeria: Causes and Remedies

Abstract

Despite improvements in the control techniques available for managing construction projects in Nigeria, the projects still do not meet their cost and time objectives. Delays and cost overruns are still prevalent even as time and cost performance remains key criteria for project success. Yet empirical studies conducted on this subject are few. This paper investigates the underlying causes for delays and cost overruns observed on selected construction projects in major Nigerian cities. Quantitative and qualitative methods were used to generate data for the research; structured questionnaire survey was used to obtain information on the causes of delays and cost overruns, and face-to-face interview with respondents actively involved on the selected projects helped to develop mitigating strategies to curb delays and cost overruns. Data generated was analyzed using Mean Scores, weighted averages and Spearman correlation coefficients to arrive at the significant causes of delays and cost overruns. The study found that delays and cost overruns occurred in varying degrees in all the projects studied. The most significant causes of delays and cost overruns are design/scope changes, inadequate availability of skilled resources, ineffective procurement planning, price escalations of construction materials and labour, and scope change. The study developed14 and 15strategies for mitigating delays and cost overruns respectively. These strategies would help to improve time and cost performance on construction projects. Industry practitioners will find them very useful at the planning phase where decisions that define a project are made, and also during project implementation.