Implications of Budgeting and Budgetary Control on Construction Project Delivery in Nigeria

Ben Nwokenkwo

doi:10.7176/cer/11-8-08

Abstract

The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to work within budget and invariably to cut cost. Clients expect a high level of transparency in project cost accounting and good value for their investment. This can only be achieved through proper budgeting and effective budgetary control of the building processes from inception to completion. This is the kernel of this paper. Having identified the target groups (clients, consultants and contractors) seventy respondent, purposively selected were given structured questionnaires, selected using stratified random sampling technique, a type of probability sampling in order to give everyone that falls into any of these identified target group equal and independent chance of being included in the sample. From the analyzed responses, it was observed that non application of relevant budgetary control has adverse implications like time and cost overrun on projects. It is therefore recommended that an effective application of budgeting and budgetary control will make way for successful completion and delivery of a construction project Keywords : Budgeting, Project Delivery, Construction client, Budgetary Control. DOI : 10.7176/CER/11-8-08 Publication date :September 30 th 2019

Highlights

1.0 Introduction The construction industry is an important sector of the economy which makes good contribution to the economy and growth of the nation
The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost
The test is conducted at 90% confidence limit and 0.05 level of significance.The following hypothesis will be tested: First Hypothesis Ho1:Budgeting does not have any impact on the construction project delivery Ha1:Budgeting has to an impact on the construction project delivery Second Hypothesis Ho2: Budgeting does not have any effect on the final cost of a project Ha2: Budgeting has an effect on the final cost of a project

Summary

Introduction

The construction industry is an important sector of the economy which makes good contribution to the economy and growth of the nation. It is the industry that harnesses men, materials, machines, money and method toward the realization of the project that is meant to satisfy the shelter and infrastructure needs of industries in the society. The industry is basically unique in the sense that it adopts a project approach; it has a definite start within a fixed cost and time. The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost. The attendant dwindling economic fortune of nations economies around the world have geared up the participants in these sectors to take up the challenge of ensuring efficient use of their resources to obtain value for money in terms of performance

Methods

Findings

Conclusion