The Effects of Variations on the Final Cost of Selected Public Building Projects in Akanu Ibiam Federal Polytechnic, Unwana from (2010-2020)

Abstract

Most executed public building projects in Nigeria have a difference between their tender/initial contract sum and final contract sum, and this difference is often caused by variations. Where not properly handled, variations lead to delays, dispute and sometimes project abandonment. The effects of cost of variations on the delivery of public building projects in Nigeria have long been a source of concern to stakeholders. In view of this, the study examined the effects of variations on building costs of selected building projects in Akanu Ibiam Federal Polytechnic, Unwana (AIFPU) executed within the period (2010-2020), with the purpose to determine their effects on cost of building projects. Historical research design was adopted. Secondary data were used in the analysis. Data on ten (10) completed projects of varying characteristics were collected from the institution’s physical planning unit using purpose sampling. SPSS version 20 tool was used in descriptive analysis of the estimate of the mean, percentage and standard deviation. E-view 8 tool of inferential statistics of regression and correlation were used in the analysis and testing of the hypothesis. The result indicates that increase in cost of variation will lead to 0.881 increase in contract sum. Results also indicate that significant positive relationship exist between variations and final cost of projects with coefficient of determination (R²)=0.602987 tested at 0.05 level. This result indicates that cost of variation has an impact on the final cost of building project and should be guarded against. It was recommended that there should be detailed and continuous planning including costing of a project right from the inception of the project to the completion, involvement of professionals and contactors at the initial stage in order to reduce variations in the project, timely advance payment for procurement should be made among others in others to guard against the impact of variation on public building projects.