Identification and Impact Assessment of Factors Influencing Cost Performance of Construction Project Delivery in Nigeria

Abstract

This study examined identification and impact assessment of factors influencing cost performance of construction project delivery in Nigeria. The study is guided by two objectives, two research questions and two null hypotheses tested at a 0.05 level of significance. A descriptive survey research design was adopted for the study. The study population comprised 800 construction professionals, including quantity surveyors, architects, engineers, builders, and project managers, with a sample size of 421 respondents. A multi stage sampling technique involving stratified and simple random sampling was used to ensure fair representation. Data were collected using a structured questionnaire designed in sections to address the study variables. Face and content validation of the instrument was carried out by experts in construction management and related fields. The reliability of the instrument was determined using the Cronbach Alpha method through a pilot study, yielding an acceptable coefficient above 0.70. The collected data were analyzed using factor analysis, mean and standard deviation, to answer the research questions, and inferential statistics, one way analysis of variance, to test the null hypotheses at a 0.05 level of significance. Findings revealed that economic and financial-related factors such as unstable economic conditions, economic recession, material price fluctuations, high land acquisition costs, and payment delays as major determinants of cost performance across Rivers, Imo, and Abia States, and these factors had a strong effect on budget adherence and project success. The study further revealed that there were no significant differences in the views of respondents. Based on the findings, recommends that construction stakeholders in Rivers, Imo, and Abia States should adopt effective project planning, realistic budgeting, and strong risk and cost management practices to reduce the impact of economic, managerial, technical, and institutional factors affecting construction cost performance.