Abstract
Establishment and achievement of accurate project estimate is a major challenge facing the construction industry across the nations especially in the developing countries. Projects generally are one-off activities with very unique characteristics. Their acyclic nature further makes them practically difficult to repeat any section if that is completed, thereby subjecting their original schedule, budget and performance baselines to the prevailing project environment shaped by both known and unknown financial, technical and managerial risk factors. The study established the relationship between fluctuation cost and cost overrun of building construction projects in the South-South zone of Nigeria. The cost data on 20 completed public building construction projects in the study area were purposively sampled and adopted for the study. Data obtained were analysed using linear regression. The result revealed that fluctuation in the prices of construction materials and labour accounts for 97% on the cost overrun of building projects in the South-South zone of Nigeria. It is therefore recommended that practitioners in the construction sector should adequately provide for likely fluctuation of material and labour prices during project planning for successful implementation.
Highlights
Background of the StudyConstruction industry is one of the major industries that contribute significantly to the growth of socio-economic development of a nation
The study sought to establish a relationship between fluctuation and cost variation of building projects
The result of the analysis shows that the linear relationship between fluctuation cost and cost variation of building construction project in South-South zone of Nigeria is VAC = 5.2950 + 1.3333FLC where VAC is the cost variation and FLC is fluctuation cost of building projects
Summary
Construction industry is one of the major industries that contribute significantly to the growth of socio-economic development of a nation. Civil Engineering and Architecture 6(5): 252-256, 2018 construction industry in the building sub-sector to meet these key baselines is due largely to their inability to predict and provide for the known and unknown risk events that should they occur will have serious impact on the project triple-constraints of time, cost and performance. This has resulted to added costs, poor quality, increased cost of rework and project abandonment. In line with the objective of this study, the hypothesis is stated that: There is no significant correlation between fluctuation and project cost variation
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