Analysis of Factors Responsible for Project Cost Variation in Enugu, Nigeria

Main Article Content

E. E. Eboh
C. C. Egolum
F. O. Ezeokoli
C. I. Onyia


Aim: The aim of this study is to analyze the factors responsible for the cost variation in the construction projects in Enugu, Nigeria, with a view to establishing the impacts of this factors on project delivery in the study area. 

Study Design: it was a survey research, the study was effected via literature review and a well-structured questionnaire. Likewise, interviews were carried out to substantiate the findings of the questionnaire survey.

Place and Duration of the Study: The study was conducted in Enugu state, Nigeria for a period of 2 years.

Methodology: Being a survey research, a total of one hundred and twenty-six (126) questionnaires were distributed with one hundred and three (103) returned and adequately filled given a percentage response of 81.7%. The data collected was presented and analyzed using tables, frequency, mean score and relative importance index. The analysis was aided by a computer-based software, named Statistical Package of Social Sciences (SPSS) version 22.

Results: The study found out that more than 40% of the respondents have experience cost overrun while more than 60% of the respondent attest that cost overrun occurs always most of their project. The study observed that the principal factors responsible for this overrun in construction projects in the study area are: poor contract management deficiency in prepared cost estimate and incomplete design. Furthermore, the study observed that the contractor’s desire to improve his financial condition, poor site management and Defective workmanship and availability of skilled labor and change orders/ variation are least factors that contribute to cost overrun in projects in the study area. The study established that the most common effect of cost overrun on project delivery are loss of profit (1.09), fewer returns on investment (0.86) while the least effect is higher rental/lease cost or price (0.70).

Conclusion: The study concluded by recommending that proper contract management, value engineering and effective communication should maintain throughout the lifecycle of the project.

Project variation, cost overrun, construction, construction industry, Enugu.

Article Details

How to Cite
Eboh, E. E., Egolum, C. C., Ezeokoli, F. O., & Onyia, C. I. (2019). Analysis of Factors Responsible for Project Cost Variation in Enugu, Nigeria. Journal of Scientific Research and Reports, 25(3), 1-8.
Original Research Article


Akinci B, Fischer M. Factors affecting contractors' risk of cost overburden. Journal of Management in Engineering. 1998;14(1).

Chuongham C, Coquinco ST, Hadikusuno BHN. Web-based application for managing change orders in construction projects. Construction Innovation. 2003;3:97-215.

Ameh OJ, Soyingbe AA, Odusami KT. Significant factors causing cost overruns in Telecommunication Projects in Nigeria. J. Construct. Dev. Countries 2010;15:49-674.

Frimpong Y, Oluwoye J, Crawford L. Causes of delay and cost overruns in construction of groundwater projects in developing countries; Ghana as a case study”, International Journal of Project Management. 2003;21:321–326.

Smprasent F. Assessment of cost cons--system. A case study of Construction Organization. Asian Institute of Technology, Bangkok; 2000.

Odeyinka HA, Yusuf A. The causes and effects of construction delays on completion cost of housing project in Nigeria. Financial Management Property Construction.1997;2:31-44.

Aziz RF. Factors causing cost variation for constructing wastewater projects in Egypt. Alexandria Engineering Journal, 2012;1(1):51–66.

Angelo W, Rema P. Mega projects need more up front to avoid cost overrun. Journal of Construction Management and Economics. 2012;30:31-44,

Morris S. Cost and time overruns in public sector projects. Economic and Political weekly.1990;15(47):154-68.

Ziyo VC, Brkan-vejzovic DA. Contracted price over rum as contracted Construction time overrun as function. Technical Gazette., 2010;17(1):23-29.

Bates K, Brignal TJ. Rationally, politics and health care costing: Financial accountability and management. 1993; 9(1):27-44.

Kaming P, Olomolaiye P, Holt G, Harris F. Factors influencing construction time and cost overruns on high-rise projects in Indonesia. Construction Management and Economics. 1997;15(1): 83-94.

Chimwaso KD. An evaluation of cost performance of public projects; case of Botswana. Department of Architecture and Building Services. Private Bag 0025, Gaborone, Botswana. Creative research systems; 2006.

Vidalis MS, Najafi TF. Cost and time overruns in highway construction 4th transportation specially conference of the Canadian Society for civil Engineering, Montreal, Quebec, Canada; 2002.

Choudhury I, Phatak O. Correlates of schedule overrun in construction ASC proceeding of annual conference, Brigham university- Provo-Utah; 2004.

Chan APC, Yeong CM. A comparison of strategies for reducing variations. Construction Management and Economics., 1995;13(6):467–473.

Gahtani AL, Mohans K, Total floats for delay analysis. Journal of cost Engineering 2007;2:45-50,

Zhu K, Lin I. A stage-by-stage factor control frame work for cost estimation of construction project. Paper presented during innovation international conference, 2004.

Jackson S. Project cost overrun and risk management. In proceedings 18th Annual ARCOM conference, Greenwood, D, Ed, Newcastle, Norlkumbria University, UK: Association of research in construction management. 2002;1:99-108.