Analysis of barriers to the application of life cycle costing in building projects in developing countries

Abstract

PurposeLife cycle costing (LCC) has become increasingly important in construction projects over the last decades. However, limited empirical studies have been carried out on the factors influencing its application in building projects, particularly in developing countries. The purpose of this study is to address this gap in knowledge within the Nigerian context.Design/methodology/approachPrimary data were used through the administration of questionnaires to practising quantity surveying firms in Lagos State, Nigeria. The data obtained were analysed using both descriptive and inferential statistical tools including percentages, mean item score and factor analysis.FindingsThe study identified 47 barriers to the application of LCC, and the analysis of the ranking revealed that 35 (of 47) identified barriers were considered important. Factor analysis grouped the identified barriers into four key factors namely, professional incompetence; cost implications; administrative factor and procurement options.Practical implicationsThis research is important by providing the empirical evidence on the barriers to the application of LCC in developing countries, particularly in Nigeria. For instance, the identification of important barriers to LCC use will enlighten the construction professionals to be trained in the practicalities of LCC. Moreover, the study provides implications for construction stakeholders (including governments) to draw policy recommendations that will positively improve the use of LCC in the construction industry, especially in developing countries.Originality/valueThe study will be beneficial to all the construction stakeholders by broadening their awareness about the barriers to LCC use in Nigeria and developing countries at large.