Analysis of Cost Overrun Factors in Public Building Construction Projects in the Federal Capital Territory, Abuja

Yahaya Isah

Abstract


Cost overrun has remained a recurring problem affecting the successful execution of public building construction projects, particularly in developing countries where project control systems and financial management practices are often inefficient. This study analyzed the factors responsible for cost overruns in public building construction projects within the Federal Capital Territory (FCT), Abuja, Nigeria. The study specifically focused on identifying the major factors contributing to cost overruns, examining their level of significance, and determining their impact on project cost performance. A quantitative descriptive survey research design was adopted for the study. Data were collected from 171 construction professionals, including quantity surveyors, engineers, architects, and project managers, selected through stratified random sampling techniques. The data obtained were analyzed using mean scores, standard deviation, Relative Importance Index (RII), and regression analysis. The findings revealed that inaccurate cost estimation, frequent design changes during project execution, inflation and fluctuations in material prices, delayed payment to contractors, and inadequate project planning were among the most significant factors influencing cost overruns in public building construction projects. The regression analysis further indicated that these factors collectively exert a significant effect on project cost performance, accounting for a substantial proportion of variations in project costs. The study concluded that cost overruns in public building construction projects are largely attributed to weaknesses in pre-contract planning, ineffective financial management, and poor project coordination. Based on the findings, the study recommended the adoption of more reliable cost estimation techniques, effective management of design changes, prompt payment to contractors, and strengthened project planning and monitoring systems to improve cost performance and enhance the successful delivery of public building construction projects in the Federal Capital Territory, Abuja. 


Full Text:

PDF

References


Albtoush, A. M., Al-Btoush, A. K., Doh, S. I., & Rahman, R. A. (2022). Techniques to reduce cost overruns during the design phase of construction projects. Journal of Engineering Science and Technology, 17(1), 583–603.

Amoatey, C. T., Adaku, E., & Famiyeh, S. (2021). Analysing delay causes and effects in Ghanaian public construction projects. Engineering, Construction and Architectural Management, 28(4), 1051–1073.

Cantarelli, C. C., Molin, E. J. E., van Wee, B., & Flyvbjerg, B. (2020). Cost overruns in large-scale transportation infrastructure projects: Explanations and implications. Transport Reviews, 40(1), 1–19.

Flyvbjerg, B. (2014). What you should know about megaprojects and why: An overview. Project Management Journal, 45(2), 6–19.

Flyvbjerg, B., Budzier, A., Lee, J. S., Keil, M., Lunn, D., & Bester, D. W. (2022). The empirical reality of IT project cost overruns: Discovering a power-law distribution. arXiv preprint arXiv:2210.01573.

Love, P. E. D., Matthews, J., Simpson, I., Hill, A., & Olatunji, O. A. (2020). A benefits realization management building information modelling framework for asset owners. Automation in Construction, 118, 103273.

Nnadi, E. O. E., & Najjobyo, J. (2025). Financial and operational effects of cost estimation inaccuracy, material price volatility, and payment delays in Nigerian construction projects. Smart Construction and Sustainable Cities, 3(29), 1–18. https://doi.org/10.1007/s44268-025-00076-4

Obianyo, J. I., Okey, E. O., & Alaneme, G. U. (2022). Assessment of cost overrun factors in construction projects in Nigeria using fuzzy logic. Innovative Infrastructure Solutions, 7(304). https://doi.org/10.1007/s41062-022-00908-7.


Refbacks

  • There are currently no refbacks.