AN EVALUATION OF CONTRIBUTION OF COST CONTINGENCY TOWARDS SUCCESSFUL EXECUTION OF BUILDING PROJECTS IN NIGERIA
AN EVALUATION OF CONTRIBUTION OF COST CONTINGENCY TOWARDS SUCCESSFUL EXECUTION OF BUILDING PROJECTS IN NIGERIA
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Date
2008-06
Authors
MUSA, MOHAMMED MUKHTAR
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Abstract
Contingency funds are included in project estimates to manage risk and
uncertainties associated with a construction project. The fund is calculated in various
ways. In most cases it is either underestimated or inflated. The aim of this research work
was to evaluate the contribution of Cost Contingency toward successful execution of
building projects in Nigeria. To achieve this aim the impact of contingency provision in
some selected building projects had been evaluated. Data for this study was obtained
from 40 project files of completed buildings obtained from 10 organizations..
Furthermore 100 comprehensive survey questionnaires on project Cost Contingencies
were randomly distributed to Quantity Surveyors and Project Managers with 67%
response obtained. The data were analyzed with the aid of simple statistical tools using
SPSS package. The study found that although the inclusion of contingency allowance
reduces the incidence of project cost overrun, 55% of the projects considered were in
excess. It was also found that projects exceed their initial cost estimate by an average
value of 5.07% where contingency is applied and by an average value of 9.52% where no
contingency is applied. Based on the results it was concluded that, there is a lack of
application of quantitative risks analysis in the determination of contingency fund.
Therefore to improve the accuracy of Cost Contingency allowance an application of
quantitative risk analysis techniques in its estimation has been recommended.
Description
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 ENGINEERING
AHMADU BELLO UNIVERSITY
ZARIA
NIGERIA.
JUNE 2008
Keywords
EVALUATION,, CONTRIBUTION,, CONTINGENCY,, TOWARDS SUCCESSFUL EXECUTION,, BUILDING PROJECTS IN NIGERIA