FACTORS AFFECTING CONSTRUCTION COST PERFORMANCE IN NIGERIAN CONSTRUCTION SITES.

These factors as the major ones that result in cost overrun on construction sites.

 (i)  Inadequate planning: People ask me how much time it takes to complete the project planning. The answer is "sufficient". You need to spend the time to define the work, create a schedule, estimate the costs and set up the project management processes. If your project is small, this should not take much time. If your project is large the planning may take a longer time. In other words, planning is scalable based on the size of the project.

(ii) Contactors project inexperience: contractor plays a very vital role in the success or failure of any turnaround. In fact, contractor not causes safety, quality and schedule problem to client, but incur losses to their own organization in terms of financial losses and damage to its reputation. In fact, in one of the shutdowns, I handled, the followings were the shortcomings
1. Inexperience or little experience as organization.
2. Incompetent and inexperienced manpower, mainly Project manager and key personnel
3. The contractor doesn't have minimum permanent staff (99% persons were hired after award of contract.
4. Wrong understanding and estimation of scope of work and Safety / Quality requirements.

(iii) Inflation: Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every naira you own buys a smaller percentage of a good or service.

The value of a naira does not stay constant when there is inflation. The value of a naira is observed in terms of purchasing power, which is the real, tangible goods that money can buy. When inflation goes up, there is a decline in the purchasing power of money

(IV) Change in project design: where there is constant change in the design it will cause fluctuation or valuation which will affect the over run.

(V) Fraudulent practices: The quality of contractors assigned to your building projects, will definitely affect the cost of building. Unqualified contractors are definitely cheaper at the beginning of the project but will cost you a lot more in the long run. Think of the cost of maintenance after moving in, or the architectural and structural disposition of the building a professional contractor would provide, the difference might be a few extra cash, but you have the confidence of standard and properly executed construction without compromise.