The influence of project team relationships on cost growth

Abstract

Purpose – Using projects executed with both traditional and integrated procurement methods, the study sought to investigate relationships that exist among project participants and the influence of those relationships on cost growth. The paper aims to discuss these issues. Design/methodology/approach – Questionnaires were administered among 274 construction projects located in 12 states including the Federal Capital Territory of Nigeria. Responses were obtained from 96 projects. Data were subjected to both descriptive and inferential analyses. Findings – In terms of cordiality, relationships between client and contractors ranked highest, while those among in-house project teams ranked lowest. Cost growth or cost overrun is significantly correlated with client-contractor relationship, consultant-contractor relationship, client-consultant-contractor relationship and in-house team relationships. No association between procurement method and cost growth was found. Research limitations/implications – The limitation of generalizability of results due to the sampling method used is acknowledged. One implication of the findings is that in the context of this research, any explanation for cost growth has to be found outside procurement methods. Practical implications – Findings may assist project participants on variables to consider in anticipating, preventing or managing cost growth in building construction projects, beyond formularization of contracts and structures. Originality/value – The research has uniquely investigated the association between intangible project team relationships and tangible variable of cost growth.