Analysis of Elemental Cost Variation of Building Construction Projects in Nigeria

Abstract

Cost performance is the fundamental criteria for success of any project. Most projects face huge amount of cost variations in Nigeria construction industry. Its performance is based on the three major parameters which include, cost, time and quality. This research was carried out to analyze elemental cost variation in building construction projects in Abuja Nigeria. Secondary data was obtained for the study and analysed using ANOVA, correlation, and regression. The result shows that the most critical factors that contribute to cost variation include unstable economy, improper planning, inaccurate estimate and fraudulent practice. The study finally recommended the best way of a averting the problem which include stabilization of the economy by the government through monitoring of price, stability of cost of labor and building materials. Contractors should employ qualified and experience staff in order to be able to follow the different technical and managerial aspects of the project. The study has concluded that there was no significant difference amongst the variation in the costs of selected groups of building elements. This was based on analysis of variance results. This meant that notwithstanding the magnitude of changes to elemental costs, no single element could be isolated as being exceptional in terms of cost variations. It was concluded that in terms of degree of influence on change in initial contract sums, the Services elements was ranked 1st, based on an R2 value of 25.2%. Substructure had the least influence on changes in the initial contract sum (R2 value of 6.71%).