Inflation and Cost Overrun in Public Sector Construction Projects in Nigeria

Abstract

There are problems of project abandonment, delays, disputes among the participants in the construction projects, difference between the tender cost, and initial cost and construction cost in most public building projects as a result of inflation and cost overrun in Nigeria. The aim of this study is to examine the influence of inflation and cost overrun on public sector projects in Nigeria and proffer solution on ways to minimize the problems associated with these two variables impacting public sector construction projects. This research work adopted a quantitative research method. This involved design of questionnaires and also collection of secondary data. Fifty questionnaires were administered to public sector professionals and data on ten public buildings projects were collected in Lagos State. The major finding from this study is that inflation and cost overrun affect most public building projects in Lagos State.