EVALUATION OF THE RELATIONSHIP BETWEEN DELAYED PAYMENTS AND COST AND TIME OVERRUNS
EVALUATION OF THE RELATIONSHIP BETWEEN DELAYED PAYMENTS AND COST AND TIME OVERRUNS
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Date
2007-11
Authors
MTALLIB, MUSA OSIREGBHEMHE ABDUL
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Abstract
ABSTRACT
This study was undertaken to establish the relationship that exist between
delayed payments and time and cost overruns. Data were collected from seven
hundred and fifty (750) construction projects in Nigeria completed between 1989
and 2005. After a careful study of the data on the seven hundred and fifty (750)
projects, data on one hundred and fifty one (151) completed building projects
were accepted and analysed. The total delay in payments, the time overrun, and
the cost overrun were determined for each of the projects. The coefficients of
correlation of delayed payments and cost overruns, and delayed payments and
time overruns were calculated for combined public and private building projects,
public building projects, and private building projects.
For the combined public and private building projects, the value of the
coefficients of correlation of delayed payments and cost overruns and delayed
payments and time overruns are 0.41, and 0.5,3 respectively. For public building
projects, the coefficients of correlation of delayed payments and cost overruns
and delayed payments and time overruns are 0.41, and 0.57, respectively. In the
case of private building projects, the coefficients of correlation of delayed
payments and cost overruns and delayed payments and time overruns are 0.66,
and 0.30, respectively.
Two hypotheses, Hypothesis 1 and Hypothesis 2, were formulated to
assess the significance of the correlation coefficients of delayed payments and
cost overruns, and delayed payments and time overruns, respectively. Based on
bivariate normal distribution of the data, the hypotheses were tested at 5% level
of significance using the Fisher r-to-z transformation. The P-value for each of the
correlation coefficients was found to be greater than the tabulated value.
From the results, it is concluded that cost overrun has positive but weak
relationship with delayed payments in the combined public and private building
projects, and the public projects. Cost overrun has positive and fairly strong
relationship with delayed payments in private building projects. Time overrun
has positive but moderate relationship with delayed payments in combined public
and private building projects. Time overrun has positive but weak relationship
with delayed payments in private building projects. The coefficients of
correlation of cost overruns and delayed payments, and time overruns and
delayed payments for all categories of building projects studied are significant at
5% level of significance. From the values of correlation coefficients and the
established significance of the correlation coefficients, delayed payments do
cause time and cost overruns in building projects. From the findings of this study,
it is recommended that delayed payments should be avoided to forestall the
possibility of running into time and cost overruns and their associated
consequences in building projects.
Description
BEING A THESIS SUBMITTED TO THE POSTGRADUATE
SCHOOL IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
MASTER OF SCIENCE IN CONSTRUCTION MANAGEMENT
DEPARTMENT OF BUILDING
FACULTY OF ENVIRONMENTAL DESIGN
AHMADU BELLO UNIVERSITY
ZARIA
Keywords
EVALUATION, RELATIONSHIP, BETWEEN, DELAYED, PAYMENTS, COST, TIME, OVERRUNS