ASSESSMENT OF COST CONTROL TECHNIQUES ON ROAD CONSTRUCTION

PROJECT DELIVERY FCT ABUJA, NIGERIA

BY

EMMANUEL, Elisha
2018/1/71594VQ

DEPARTMENT OF QUANTITY SURVEYING, SCHOOL OF ENVIRONMENTAL

TECHNOLOGY, FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA, NIGERIA

SEPTEMBER, 2024
 ASSESSMENT OF COST CONTROL TECHNIQUES ON ROAD CONSTRUCTION
PROJECT DELIVERY FCT ABUJA, NIGERIA

BY

EMMANUEL, Elisha
2018/1/71594VQ

BEING A RESEARCH PROPOSAL SUBMITTED TO THE DEPARTMENT OF

QUANTITY SURVEYING, FEDERAL UNIVERSITY OF TECHNOLOGY MINNA, IN
PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE
BACHELOR OF TECHNOLOGY DEGREE IN QUANTITY SURVEYING

SEPTEMBER, 2024

i
 DECLARATION

I, Emmanuel Elisha hereby declare that this project titled “Assessment of Cost Control

Techniques on Road Construction Project Delivery FCT Abuja, Nigeria” is a collection of

my original research work and it has not been presented for any other qualification anywhere.

Information from other sources (published or unpublished) has been duly acknowledged.

_______________________ _________________

EMMANUEL, Elisha Date

2018/1/71594VQ

ii
 CERTIFICATION

This is to certify that this research project work titled “Assessment of Cost Control

Techniques on Road Construction Project Delivery FCT Abuja, Nigeria” by

EMMANUEL ELISHA with Matriculation Number: 2018/1/71594VQ meets the regulations

governing the award of Bachelor of Technology (B. Tech) Degree of Federal University of

Technology, Minna and it is approved for its contribution to scientific knowledge and literary

presentation.

_______________________

Dr. A. D. Adamu Date

Project Supervisor

________________________ ________________________

Prof. A. A. Shittu Date

Project Co-coordinator

________________________ ________________________

Dr. A. D. Adamu Date

Head of Department

________________________ ________________________

External Examiner Date

iii
 DEDICATION

I want to dedicate this work to Almighty God for his mercy and protection on my life, my

caring and loving parents, my dear siblings, and my friends.

iv
 ACKNOWLEDGEMENT

With a grateful heart, my thoughtful gratitude goes to Almighty God for His endless mercy

through this journey for enabling me accomplish this phase of my life. This part of the thesis

got me a bit emotional as it reminded me of the bittersweet journey in doing a BTech. degree

and those who have contributed and played significant roles in assisting me. Words are not

enough to describe how grateful I am for all your good deeds.

I am utterly grateful to my supervisor, Dr. A D. Adamu for his assistance, encouragement,

guidance and persistence throughout the course of my work. All the advice and constructive

criticism are much appreciated and I will hold them to guide myself in the research process

and my life as a whole. I must also acknowledge the great contribution of the Head of

Quantity Surveying Department Dr. A. D. Adamu, to the success of this work. All the

academic staff of the Quantity Surveying Department have also, in a way or the other, greatly

contributed to the success of this work, especially Dr. W. A. Ola-awo, Dr. A. A. Oke, Dr. B. O.

Ganiyu, Prof. A. A. Shittu, Dr. Y. D. Mohammed, Prof. L. O. Oyewobi, Dr. I. Saidu, Prof. M.

O. Anifowose, Dr. P. O. Alumbugu, Dr. B. O. Okosun, Mrs. L. C. Odine and Mrs. K. M.

Hassan. I really appreciate you all. I also thank all the technical, administrative and clerical

staff members of the Quantity Surveying Department for their contribution to the success of

this work.

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 ABSTRACT

This study investigates the effectiveness of cost control techniques in road construction
projects within Abuja-FCT, Nigeria. The research focuses on the practices employed by
construction firms to manage project costs, particularly in light of the narrow profit margins
characteristic of the industry. A structured questionnaire was used to collect data from
professionals, including Quantity Surveyors, Civil Engineers, and Project Managers,
employed by road construction companies. Findings from the study revealed that the most
effective cost control techniques used in road construction projects were “Cost value
reconciliation (CVR)” (MIS = 3.51) and “Earn value management (EVM)” (MIS = 3.47). The
most severe challenges of cost control techniques used in road construction projects were
“Lack of reliability in cost management by project manager’s/project quantity surveyor” (MIS
= 3.50) and “Using out dated approaches and perceptions” (MIS = 3.42). The most significant
drivers enhancing the application of the cost control technique used in road construction
projects were “Size of the company” (MIS = 3.32) and “Standardisation of cost control” (MIS
= 3.27). there exists a significant relationship between cost control techniques and road
construction project delivery in Abuja (r = 0.389; R2 = 16.2%; p = 0.000). The study therefore
concludes that cost control techniques are essential tools in managing road construction
projects in Abuja, contributing positively to project outcome. It was recommended that in
order to continuously enhance the cost control techniques used in road construction projects,
relevant stakeholders should set up a mechanism for preferring proactive and reactive
measures for mitigating the challenges and enhancing the drivers enhancing the application of
the cost control technique used in road construction projects.

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 TABLE OF CONTENTS

Content Page

Title page i

Declaration ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table of content vii

List of tables xi

CHAPTER ONE
1.0 INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Research Problem 2
1.3 Research Questions 3
1.4 Aim and Objective of the Study 3
1.5 Justification for the Study 4
1.6 Scope of the Study 4
CHAPTERTWO

2.0 LITERATURE REVIEW 6

2.1 Origin of Road Construction 6

2.2 Purposes of Road Construction 6

2.3 The Evolving Roles of Professional Quantity Surveyor in Road Construction 7

2.3.1 Cost management 8

2.3.2 Cost planning 10

2.3.3 Cost estimating 12

2.3.4 Cost control and monitoring 14

2.4 Cost Control Techniques Used in Road Construction Projects 16

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2.4.1 Earn value management (EVM) 17

2.4.2 Programme evaluation and review techniques (PERT) 18

2.4.3 Critical path method (CPM) 20

2.4.4 To-complete performance index (TCPI) 22

2.4.5 Risk analysis 22

2.4.6 Cost value reconciliation (CVR) 24

2.4.7 Budgetary control 25

2.4.8 Cash flow analysis 25

2.4.9 Material management 27

2.5 Components of Road Construction Project Delivery 27

2.6 Challenges of Cost Control Techniques 28

2.6.1 Lack of reliability in cost management by project manager’s / project quantity

Surveyor 29

2.6.2 Inadequate acquaintance on the utilization of available tools and technology 29

2.6.3 Relinquishment of complicated approaches 29

2.6.4 Using out dated approaches and perceptions 30

2.6.5 Deficiency of financial dedication in projects 30

2.6.6 Deficient PCC procedures and framework appropriate to the enterprise 30

2.6.7 Other challenges 31

2.7 Drivers Enhancing the Application of Cost Control Techniques 31

2.8 Relationship Between Cost Control Techniques and Road Construction Project
Delivery 33

CHAPTER THREE

3.0 RESEARCH METHODOLOGY 35

3.1 Research Design 35

3.2 Research Population 35

3.3 Sampling Frame 36

3.4 Sample Size 36

viii
3.5 Sampling Technique 36

3.6 Method of Data Collection 37

3.7 Method of Data Analysis 37

3.7.1 Decision rule for MIS 38

3.7.2 Decision rule for regression analysis 38

CHAPTER FOUR

4.0 RESULTS AND DISCUSSION 40

4.1 Analysis of Respondents’ Profile 40

4.2 Cost Control Techniques Used in Road Construction Projects 42

4.3 Challenges of Cost Control Techniques Used in Road Construction Projects 43

4.4 Drivers Enhancing Application of Cost Control Technique Used in Road Construction
Projects 44

4.5 Relationship Between Cost Control Techniques and Road Construction Project
Delivery 45
4.6 Summary of Findings 46

CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATION 48

5.1 Conclusion 48

5.2 Recommendations 49

5.3 Contribution to Knowledge 50

5.4 Areas for Further Studies 51

REFERENCES 52

APPENDIX 55

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 LIST OF TABLES

Table Page

2.1: Core Objectives by Project Stages 9

3.1: Procedures for Analyzing the Research Objectives 38

3.2: Decision Rule for MIS Analysis 38

4.1: Demographic Distribution of the Respondents 40

4.2: Cost Control Techniques Used in Road Construction Projects 43

4.3: Challenges of Cost Control Techniques Used in Road Construction Projects 44

4.4: Drivers Enhancing the Application of the Cost Control Technique Used in Road
Construction Projects 45

4.5: Relationship Between Cost Control Techniques and Road Construction Project
Delivery 46

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 CHAPTER ONE

1.0 INTRODUCTION

1.1 Background of the Study

In construction almost all clients are interested in obtaining fully functional facilities

completed in time, cost, quality and scope (Yap et al., 2019). The Construction industry is a

key sector in every country at it is heavily interrelated with the economy as a whole (Norouzi

et al.,2021). It also impacts the gross domestic product (GDP) of a nation, as the construction

industry relies on various inputs, such as human capital and financial resources from other

sectors (Murendeni and Cliton, 2018). One of the aims of cost control is to construct at the

cheapest possible costs consistent with the project objectives. Ultimately the decision of the

manager that something should be done differently and the translation of that decision into

practice are the actions to achieve control (Harris and McCaffer 2022).

Raina (2019) observes that it is of little use after a process has been completed to discover that

its cost was actually too much. Most project managers and contractors in Nigeria find it

difficulty in controlling costs on their construction sites due to a number of problems which

include poor project preparation, lapse in management and control, over budgeting, poor

materials labour shortages, increased cost of materials delays in deliveries, wastage of

materials, unexpected whether changes, loss of materials, insecurity and poor communication.

This results into cost and time overruns, conflicts, and sometimes abandoning projects.

Many projects begin with promising ideas, substantial investments, and considerable effort.

However, many of them fail to achieve significant success (Kerzner, 2018). The fundamental

aims of the construction industry which are to deliver project within scheduled time,

acceptable cost, specified quality and safety of stakeholders have focus the requirement for

cost control that is viable (Safapour et al., 2021). Clients practically in construction project are

1
keen on getting fully utilitarian facilities finished in time, quality, cost and scope. A project is

able to construct within the estimated time and budget, to the right standards and scope is an

excellent builder as stated by Opatunji (2018).

This study was therefore carried out to identify the cost control techniques used in Nigeria and

propose effective ones to building construction parties. It specially worked to solve problems

faced by the contractors in controlling the cost on site, cost control techniques commonly used

by the contractors during the construction stage and proposed remedies to be used by

contractors on sites control their costs in the construction industry, very little study has been

conducted on the challenges of cost control in any of construction organisation.

1.2 Statement of the Research Problem

In the road construction industry, effective cost control techniques are critically important due

to the industry’s typically small profit margins and the highly competitive nature of securing

contracts. Because road construction companies operate on such a small profit margin due to

winning contracts have undoubtedly become fiercer; cost control cannot be overemphasized.

Therefore, cost management of road construction involves the application of engineering,

financial and management practices to optimize the level of service outcome in return for the

most cost-effective financial input (Malkoc, 2017). Opatunji (2018) carried out evaluation cost

control techniques used in Nigeria but this research was emphasis on construction of building

and the data collected was limited to Quantity Surveyors in Oyo state. Ahmad et al. (2012)

conducted research on assessment of practices in Malaysia, the research identified the cost

control methods and procedures that construction practitioners in Malaysia are utilised.

Cooray et al. (2018) also evaluate the cost control techniques used on building construction

projects in Sri Lanka, the research analysed the effect of cost control techniques identified

with project delivery regarding the building construction industry in Maldives. Adjei et al.

2
(2017) the challenges of cost control practice in the construction sector, the research identified

current challenges of project cost control practice in the construction firm. According to

Anyanwu (2019) on project cost control in the Nigerian construction firm; the overall purpose

of cost control and the management is to make sure that scant resources are used to the

optimum advantages of the main parties to a construction contract.

It is born out of deficiencies in appropriate prediction of cost control techniques used in road

construction project. The complexities and foreseen of most element of works in road

construction project cannot over emphasize. This study therefore used the idea that, cost

control techniques have become a predominant factor to be considered in the road construction

projects because of ineffective cost and time control during the execution stage. The research

would therefore, increase awareness amongst the construction firm.

1.3 Research Questions

In order to address the problem identified, this study provided answers to the following

research questions:

i. What are the cost control techniques utilised in road construction projects?

ii. What are the challenges of cost control techniques utilised in road construction

projects?

iii. What are the drivers enhancing the application of the cost control technique utilised in

road construction projects?

iv. What is the relationship between cost control techniques and road construction project

delivery?

1.4 Aim and Objective of the Study

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This study aimed at assessing the effect of cost control techniques used in road construction

projects in FCT, Abuja with a view to improve project delivery. Considering the aim, the study

addresses the following objectives:

i. To identify the cost control techniques used in road construction projects.

ii. To examine the challenges of cost control techniques used in road construction

projects.

iii. To examine the drivers enhancing the application of the cost control technique used in

road construction projects.

iv. To determine the relationship between cost control techniques and road construction

project delivery.

1.5 Justification for the Study

This study will be of importance to building professionals and the general public because it

would not only clarify but also create awareness of the extent to which inadequacies in poor

assessment of cost control techniques can adversely affect highway project performance. The

study will also help contractors, clients, consultants and all parties involved in highway

construction projects about ways of improving their current method of cost management and

control, learning how to effectively manage cost so as not to run into loss. The study will also

be of great benefit for other student researchers’ who may want to venture into the same

subject matter. Having gotten results-both empirically and theoretically, the study will serve as

a foundation for future research studies.

1.6 Scope of the study

This research focuses on Quantity Surveyors, Cost Engineers, and Civil Engineers employed

by construction firms engaged in road construction projects within Abuja-FCT, Nigeria. It

specifically examines the cost control practices of civil engineering contractors involved in

highway road construction. The study excludes cost control techniques applied by contractors

4
during the pre-construction, construction, and post-construction phases, as well as procedures

related to the financial management and accounting of the firms.

The construction firms included in the study are registered with the Corporate Affairs

Commission (CAC) and the Federation of Construction Industry (FOCI) in Nigeria. The

sample is limited to contractors classified as Category "A" and "B" by the Bureau of Public

Procurement (BPP), as these larger firms are better equipped to implement effective cost

control measures. The focus is on highway road projects, covering any public road

construction works.

5
 CHAPTERTWO

2.0 LITERATURE REVIEW

2.1 Origin of Road Construction

History has it that the first road ever built by humans’ dates back to 4000 BC and since then

road construction methods has undergone phenomenal changes (Benson and Lay, 2016). In

ancient times, river transport was much faster and easier than road transport, particularly

considering the road construction cost and variation in the transportation capacity. The

Romans built stone paved roads in North Africa and Europe to support their military

operations. Later the Arabs built roads that were covered with tar. The roads were constructed

by preparing earthworks and lifting road foundation at the center for the water drainage. The

road construction techniques gradually improved by the study of road traffic, stone thickness,

road alignment, and the slope gradients. The initial road construction materials were stones

that were laid in a regular, compact design, and covered with smaller stones to produce a solid

layer. The building techniques were simple but they were very effective as they reduced the

travel time considerably and connected one place to another by the land route.

2.2 Purposes of Road Construction

The Organisation for Economic Co-operation and Development (OECD) describe a road as a

line of communication using a steadied base other than air strip rail opens to public traffic,

mainly for the use of road motor vehicles running on their own wheels which includes

supportive structure, junctions, bridges, tunnels, crossings, interchanges, and toll road. Need

for investment of road infrastructure and other public goods as a way of increasing urban and

rural productivity and national economic growth and development as become important

6
subject of rewarded attention in almost fewer developing counties (Ekpung, 2014).

7
Historically many roads were simply recognizable routes without any formal construction.

Modern roads are usually smoothed, paved, or otherwise set to allow easy travel. In respect to this

Gupta and Gupta (2010), define road as a path constructed to facilitate the movement of men and

materials from one place to another. Roads are pathways on the earth's surface made by humans

with their shapes, sizes, and types of construction so it can be used to move people, animals, and

freight vehicles from one place to another easily and quickly. The purpose of transportation

infrastructure facilities like roads is to support the flexibility of the populace and moreover

decrease the expense of movement of merchandise to a region. This is fundamental since it can

maintain the profitability of the national economy, where the worldwide economic sector is

influential. As indicated by Amoatey and Ankrah (2016), road infrastructure continually assumes

a critical part in the movement of travellers and cargo. The road serves as an arrangement of flow

in the progression of trade, interchanges, and financial turn of events. Foundation of road

infrastructure offers accessibility to rural and metropolitan social orders to wellbeing, education,

employment and other huge social administrations. This infers that without an efficient transport

infrastructure, economic and social progression will be truly hampered.

2.3 The Evolving Roles of Professional Quantity Surveyor in Road Construction

The construction industry comprises of many stakeholders such as clients, design professional,

construction professionals, and operational teams. The major professionals in the industry in

terms of their initial contact with the client and involvement with the design and construction

stages of the construction projects includes engineers (notably civil, electrical and mechanical),

building engineers, quantity surveyors or cost estimators and architects. The civil engineers are

concerned with public constructions like roads, dams, quays, shipyards, and bridges (Olanrewaju

and Anahwe, 2015). The RICS (1971) emphasized that the distinctive competencies or skills of

8
the quantity surveyor (QS) are associated with measurement and valuation which provide the

basis for the proper cost management of the construction project in the context of forecasting,

analysing, planning, controlling and accounting (Dada and Jagboro, 2012). A quantity surveyor is

a professional in the road construction who has the ability to analyse both cost components and

practical physical construction works of a project in a successful way so as to be able to apply the

results of his analysis in solving problems peculiar to each project (Timothy and Amos,2016).

Quantity surveyors are involved in various types of construction including mining, petrochemical

plants and refineries construction and installations (Olanrewaju and Anahwe,2015). The

traditional role of QS on road construction mainly concerns cost management such as cost

estimation, the advice at design stage, cost control, valuations, variations and final accounts.

2.3.1 Cost management

Cost management can be defined as the process of planning, estimating, co-ordination, control

and reporting of all cost-related aspects from project initiation to operation and maintenance and

ultimately disposal. It involves identifying the costs associated with the investment, making

informed choices about options that will deliver best value for money and managing those costs

throughout the life of the project including disposal. Cost management in the construction

industry relates to all cost-related activities from project initiation through to successful

occupation stated by Ashworth (2010).

According to the Project Management Body of Knowledge (PMBoK) (Project Management

Institute [PMI], 2013, 5th Edition), project cost management includes the processes involved in

planning, estimating, budgeting, financing, funding, managing, and controlling cost so that

projects can be completed within budget. Before construction starts, cost administration centres

around cost estimation and cost planning. The goal of the cost estimation is to set up a practical

9
financial plan while advancing Value for Money (VFM) for the owner. Cost planning aims to

develop a pre-agreed cost framework in the most economic manner, whilst cohering with

programme requirements, aesthetic considerations, and engineering feasibilities. After

construction commences, that focus shifts to cost control and ensuring expenditures are within

budget and the pre-agreed cost framework. Professional Quantity Surveyor (PQS) are typically

welcomed on board from project commencement through to settlement of conclusive accounts.

PQS for the most part shift their expense related errands and responsibilities all through the

project life span. A project's life cycle includes a few stages from project inception, to plan and

design development, construction, and eventually hand over of the completed work.

Table 2.1: Core Objectives by Project Stages

Design/Stage Sequence Core objectives
Phase/Stage 0 Strategic definition Recognize owner's business case, key brief, and some other
Centre project prerequisites
Phase/Stage 1 Preparation and brief Create project aims (e.g., project results, value and feasibility
potentials, project spending plan, and different parameters);
prepare beginning undertaking brief, viability studies, and site
Condition overview
Phase/Stage 2 Concept design Prepare concept design; concede to modifications to educate and
give final project brief; layout details and preliminary cost
information alongside relevant project techniques according to
design programme; issue last project brief
Phase/Stage 3 Advanced design Get ready developed design; layout specifications, cost data, and
project procedures as per design programme
Phase/Stage 4 Practical design Get ready technical design as per design responsibility and
project procedures to incorporate entirely engineering and
services information, expert subcontractor design and details,
according to design programme
Phase/Stage 5 Implementation Off-site manufacturing and on-site construction in accordance
with construction programme and resolution of design queries
from site as they arise
Phase/Stage 6 Completion and Handover Handover of building and conclusion of building contract
Phase/Stage 7 In use Undertake in use services in accordance with schedule of
Services
Source: Adapted from Sinclair, 2013

Nearly all project phases cost management is taken on, at the same time as its activities can vary

extensively. Drawing upon the pertinent descriptions drafted by the RIBA and the RICS, the life

10
span of any cost management begins before expected time as cost estimate in the preparation

stage, cost plan in the design stage, planning tendering documents, cost control all through the

development stage, and post-tender estimate until the construction project achieves. Figure 2.1

further elaborates QS duties by following Plan of Work.

2.3.2 Cost planning

As a process, cost planning is difficult to define concisely. This difficulty exists because the cost

planning process involves a diversity of procedures and techniques that are used simultaneously

by the quantity surveyor (QS)or construction economist (Boussabaine,2013). Kirkham (2014) was

of the view that traditionally, cost planning will typically follow the conventional outline design-

scheme, design-detailed design process. Similarly, Kissi and Adjei-Kumi (2017) stated that, cost

planning covers every aspect of cost control in a construction project thus from the inception to

completion with the aim of delivering project to satisfy the client’s expectation, which is within

budget, at the desired quality and delivered within the agreed time. It as a system of bringing cost

advice to bear upon the design process.

Accordingly, Ramabodu and Verster (2010) contended that cost planning practices ensure that in

the early stages of a project, the client/contractor will know what the anticipated final cost of the

development will be. Kissi and Adjei-Kumi (2017), claimed the concept of cost planning arose

out of the need to effectively strategies the cost of a construction project from its inception,

through to design, and continuing throughout the entire project. Effective cost advice will place

the client in a strategic position to make good decisions when budgeting is based on expert

knowledge emanating from all influences. Undoubtedly, cost is one of the most significant

benchmarks for measuring the viability of any project (Memonetal.,2013; Becker etal.,2014).

Concisely, a particular understanding of cost lies in the context in which it is being used. It must

11
be noted that, in the construction discipline, the terminology has a special interpretation

appropriate only to this industry. In the construction industry, cost to the contractor represents all

those items included under the heading of his expenditure, while it may differ to the client or

consultant. Various studies posit that cost overruns have become part of the life cycle of

construction projects (Fugar and Agyakwah-Baah, 2010; Mahamid and Bruland, 2011). These

overruns vary significantly from one project to another, and are influenced by various factors

(e.g., inflationary pressures; increases in material prices and workers’ wages; difficulties in

payment arrangements, price fluctuations).

Accordingly, a good cost planning system should entail the following as postulated by Ostrowski

(2013).

i. To make sure the tender sum is pretty much as near as conceivable to the preliminary

cost.

ii. To make sure that the capitals available for the project are allotted satisfactorily and

reasonably to the components and sub-components

iii. At all times includes the measurement and pricing of approximate quantities

iv. Goal to accomplish best cost at the anticipated level of disbursement

In furtherance, Ostrowski (2013) advance that, a decrease in project hazard is an immediate

advantage of a good cost planning. Likewise, Kissi and Adjei-Kumi (2017) said the assessment

that cost planning management frameworks should incorporate the processes needed to guarantee

that the project is finished within the endorsed budget. Daft (2012) contend that construction

project management procedure remains the accomplishment of hierarchical objectives in a viable

and productive way through planning, organising, leading and control in organizational resources.

Therefore, professionals involved in cost planning practices aim to reduce this complexity and

12
quantity of work to the most possible minimum. Quantity surveyors (QSs) understand what items

are of cost significance; where short cuts can be taken, and where detailed and long-drawn-out

cost checks can be avoided.

2.3.3 Cost estimating

According to Yakubu et al. (2015), Countries all over the world managed their road systems by

administrative and functional classifications system and noted that an important government

activity of all nation is building and maintaining infrastructure. Furthermore, Yakubu et al.

(2015), administrative countries have their roads organised into hierarchical networks according

to their main purposes, e.g., national roads for roads leading the provincial centres, principal cities

and other cities of national importance. Adedayo et al. (2018) defines prevalent functional

activities in road construction as the terminology used to portray components of roads. Ola (2011)

noticed that albeit in developing nations the experts into road utilizes various terms and

arrangement however exactly in Nigeria, road construction components or activities are chiefly

portrayed to be: site clearance and earthwork, the concrete work or called sited rain and culverts,

the surfacing and the pavement, the traffic system management and miscellaneous. The following

are the dominating terms in road construction; site clearance and earthwork, subgrade, sub base,

base course, asphalts, surface course, traffic management system like establishment of traffic

signs, direction signs, streetlights, traffic lights, pedestrian zebra crossing, guide rail to bridges

and others (Adedayo et al., 2018). According to Ola (2011) concluded that, the advanced traffic

management system involves real-time traffic data from cameras, speed sensors. Ibrahim (2011)

express that estimating is the main function of the construction company; the exactness of cost

estimates beginning from an early phase of a project through the tender estimate can impact on

the achievement or disappointment of a construction project. They also state that many failures of

13
construction projects are caused by inaccurate estimates. A cost estimate develops the benchmark

of the project cost at different periods of improvement of the project. Cost estimates create

through beginning or reasonable stages into bare essential, last, or convincing estimates,

contingent upon the proportion of data known when the estimate is prepared. During the

preliminary or conceptual stage, irrelevant data is open about the project, which makes estimates

less precise (Adedayo et al.,2018). Akintola and Eamon (2011) portrayed estimating as a crucial

piece of project management since it transforms into the baseline for following cost control. In the

event that the estimate for a project is too low, an organization may well lose money in the

execution of the work and if the estimate is high, the organization may well lose the agreement

due to overpricing. The motivation behind creating a pre-delicate estimation can be characterised

into the following categories: budgeting, controlling and contrasting. There are some estimating

methods being used, varying from the very approximate to the exceptionally precise (Akintola

and Eamon,2011). Most organisations have their peculiar estimating norms, developed throughout

the long term and regularly updated to reflect changes in operating methods and systems.

Furthermore, the variations in labour charges, material costs and exchange rates should be

incorporated into the preliminary estimate (Adedayo et al., 2018). Holm et al. (2015) records a

few explanations behind making estimate, including:

i. Feasibility studies

ii. Selection from alternate design

iii. Selection from alternate investment

v. Appropriation of funds

vi. Presentation of bids and tenders

A number of cost prediction models have been developed example, Probabilistic Life-Cycle Cost (LLC)

14
Prediction Model. The absolute project cost in kilometre remains the capacity of a rundown of plausible

indicators containing details, for instance, quantities of work items in kilometre. Mahamid and Bruland

(2010) built up different direct relapse models for beginning cost estimating for road development

exercises as a component of project's actual characteristics, for instance, landscape conditions, ground

conditions and soil drill capacity.

The World Bank had built up a worldwide information bank for road development cost in third

world countries; the information was created in type of Road Costs Knowledge System

(ROCKS). It was designed to develop an international knowledge system of road work costs to

obtain average and range unit costs based on historical data that could ultimately improve the

reliability of new cost estimates.

2.3.4 Cost control and monitoring

A project is highly unlikely to proceed in all respects entirely according to plan, particularly when

the plan has been expressed in some detail, a tone level a plan represents a model of the work

method and divergences from the plan may be thought of as showing defect sin the model. A tan

other level a plan may represent a document of contract, an agreement between two parties

concerning how a project will be carried out. According to the A Guide to the Project

Management Body of Knowledge PMBOK (2013) defines cost control generally as, “Control

Costs is the process of monitoring the status of the project to update the project costs and

managing changes to the cost baseline, the key benefit of this process is that it provides the mean

store cognize variance from the plan in order to take corrective action and minimize risk.” Cost

control is a process where the construction cost of the project is managed through the best

methods and techniques so that the contractor does not suffer losses when carrying out the

activities of the project (Opatunji,2018). One of the aims of cost control according to George

15
(2012) is to construct at the cheapest possible costs consistent with the project objectives. Cost

control involves the measurement of the performance of a design against a standard i.e., cost

target / cost plan and taking any remedial actions where necessary. Cost control can be classified

into pre-contract and post contract cost control. Pre-contract cost control starts at the inception

stage to the tender action stage while post contract cost control starts from the project planning

stage to the completion stage. From this it is obvious that cost control should be continued

through the construction period to ensure that the cost of the project is kept within the limits. The

control of project cost is not an easy task and it requires knowledge of applying cost controlling

techniques (Opatunji, 2018).

Controlling and monitoring of projects occurs when you establish ways to track the course of all

activities and events in the project. As project is always a dynamic entity since it must respond to

changing conditions if it is to be completed successfully. It is carried out in an environment of

ceaseless change and there is a continual need for re assessment and re- appraisal of the project

plan. Among the factors liable to alter the course of a project includes such changes in:

i. The technical specification of the project

ii. The project complete date

iii. Budget considerations

iv. Relative priorities of projects

v. Revision of activity duration estimates

vi. Re-assessment of resource requirement for individual activities

vii. Technical difficulties or construction methods

viii. Unexpected weather conditions.

ix. Working conditions

16
x. The economy

xi. Resource availability

xii. Management and among others

However, some of these changes will have a pronounced impact on the project while others have

a mere subtle one. Either way, the changes could affect the project in terms of quality, quantity of

work, cost and time. To fully avoid this, a proper cost monitoring and control system must be

established. At the onset, there is an important difference between monitoring and control.

Monitoring is finding out the state of play. It is having to do with reporting whether one is

measuring money or time or any other property in which one is interested. It is a vital prerequisite

to control but it is a tool needed by control rather than a substitute for it. Control is taking

whatever steps that are necessary to vary or alter a pattern of events. It is a positive and active

operation which its success can be judged by subsequent events. Taking decisions in the exercise

of control demands sound information which is the result of good monitoring.

2.4 Cost Control Techniques Used in Road Construction Projects

The primary responsibility of project management is to control the cost of the project, time,

performance and quality goals. Cost management is a one of the important tasks which drives

project to a successful completion. This includes resource planning, cost budgeting, cost

estimating and cost control. This cost management process can be enhanced through different

software’s, tools and techniques in order to control the costs. According to ‘Project Management

Book of Knowledge (PMBOK)’there are few techniques which would be useful to monitor and

control construction project.

According to Malkanthi, et al. (2017), the greater part of the contractors in Sri Lanka accepted

that they can reduced about half (50%) of their overhead cost by utilizing legitimate cost

17
controlling techniques. A few contractors have effectively accomplished more than half (50%)

overhead reduce through cost controlling techniques. In this way, a legitimate cost controlling can

be considered as a fundamental component in the construction industry. Different cost control

tools and techniques are taken on by the project managers with the point of moderating the cost

vulnerabilities throughout project execution. As stated by Scott (2012); Burke (2013) and Cooray

et al. (2018); over the years, cost control techniques have evolved and some of those techniques

are: Earn Value Management (EVM), Programme Evaluation and Review Techniques (PERT),

Critical Path Method (CPM), To-Complete Performance Index (TCPI), Risk Analysis, Cost Value

Reconciliation (CVR), Monte Carlo simulation and Whole life costing. Other techniques identified

by Opatunji (2018) and Anyanwu (2013) include: Performance reviews and Variance Analysis,

Budgetary control, Cash Flow Analysis, Site Meetings, Recordkeeping, Valuation of working

Progress, Elemental Analysis, Cost optimization techniques, Cost Reduction on site, Cost

Planning, Work Programs and Material Management. In addition to that, software applications

such as Asta Power Project, Primavera, Microsoft Project are available to control the costs in

curing the road construction projects (Cooray et al., 2018).

2.4.1 Earn value management (EVM)

Earned Value Management (EVM) is one of them Ost widely used techniques worldwide with

which to assess a project’s performance during its execution. Its application in project

management has extended to important institutions like the National Aeronautics and Space

Administration (NASA). The basis of this technique was presented by the US Department of

Defence (DoD) in the 1960s and was further developed and improved during the 1970s and early

1980s. In 1998, the American National Standards Institute (ANSI) and the Electronic Industries

Alliance (EIA) published guidelines for EVM. The use of EVM quickly expanded beyond the

18
Defence sector. It was adopted by many organizations and technology-related agencies. Many

industrialized nations also began to utilize EVM in their own procurement programs. An

overview of EVM was included in first Project Management Body of Knowledge (PMBOK)

Guide in 1987 and expanded in subsequent editions. The construction industry was an early

commercial adopter of EVM. Closer integration of EVM with the practice of project management

accelerated in the 1990s. In 1999, the Performance Management Association merged with the

Project Management Institute(PMI) to become PMI’s first college, the College of Performance

Management. The United States Office of Management and Budget began to mandate the use of

EVM across all government agencies and, for the first time, for certain internally-managed

projects (not just for contractors). EVM also received greater attention by publicly-traded

companies in response to the Sarbanes-Oxley Act of 2002. (Fleming and Koppelman 2010;

PMBOK, 2013). According to Kwak and Anbari (2012) It has since become a significant branch

of project management and cost engineering. In the year 2000, the Project Management Institute

(PMI) added the terminology and basic formulas of EVM. Researchers such as Salisu et al.

(2016) said project management research works investigating the contribution of EVM to project

success suggests a moderately strong positive relationship. Implementations of EVM can be

scaled to fit projects of all sizes and complexities. EVM establishes the analytical relationships

between the budget cost, actual cost and the work done to allow better assessment of activity time

and budget requirements (Salisuetal.,2016). EVM techniques integrate the project scope, schedule

and cost in order to indicate project performances at a particular time or any chosen time for the

purpose of ascertaining the time and cost performance of the project within the outlined scope.

2.4.2 Programme evaluation and review techniques (PERT)

A difficult job that a project manager/can attempt is the management of a huge scope project that

19
necessitates coordinating several exercises inside and outside the organization. An innumerable

number of details might be considered in planning how to coordinate these exercises, for example,

developing areas on able schedule, and monitoring the project's process. The management of

large-scale project such as road construction project, poses numerous challenges. These

difficulties have prompted far reaching utilization of project management technique such Project

Evaluation and Review Technique (Aja and Chukwu, 2017). Project management techniques

provide managers with a systematic quantitative framework for planning, scheduling and

coordination of numerous interrelated activities associated with the successful on-time completion

of construction projects made up of smaller tasks some of which can be started straight away

while some need to await the completion of other activities or can be done in parallel before they

eventually commence as observed by (Adebowale and Oluboyede, 2011).

Cooray, et al. (2018) stated that Project Evaluation and Review Technique (PERT) was developed

and tested as a cost control method which allows management to identify the estimated

probability of project completion within a certain amount of time and cost. This method is similar

to Critical Path Method (CPM), but PERT is more events oriented while CPM is activity oriented.

PERT enables the values of work packages to be assessed in advance. This PERT charts provides

the graphical illustration of the entire growth of the project indicating major events, dependent

tasks, parallel tasks and tasks that should be accomplished in order, but that do not require

resources or finishing time. Thus, PERT is used to schedule, organize, and coordinate tasks within

a project as a project management tool (Burke, 2013). PERT is a way of showing the budgeted

project cost based on the activity start times. The assumption behind this technique is that cost per

unit time for an activity is constant between its start time and its finish time. In this method cost

estimates must be made for each activity. At that point the framework monitors money

20
expenditures for each activity similarly as time expenditures. An assortment of analyse can be

performed with this technique, including hammering of explicit activities in the project. A chart

can be created showing the cost of the project dependent on every activity starting at its earliest

start (ES) time and at its latest start (LS) time. The gap between the cumulative ES and LS lines

represent adaptability and cost can be adjusted within these limits artificially delaying the start of

non- critical activities.

2.4.3 Critical path method (CPM)

There is a conscious effort at improving the roads in most cities of Nigeria with an aim to provide

better travel and transport facilities. Such efforts may also attract more investment in the states.

However, in public interest, it is imperative that the disruption of traffic caused by the

construction process should be minimised. This would entail the contractor to subdivide the

project into smaller subprojects and minimise time of completion of each sub-project, that too at a

relatively low cost. The Critical Path Method (CPM) is one of the commonly used network

techniques developed to facilitate planning, scheduling and controlling of projects in an integrated

manner with the aim to complete them within the constraints of given time (Khurana and

Banerjee,2013). This provides a managerial device which acts as a tool to cater to a variety of

needs such as system design, planning and control. According to Gurcharan and Jagdish (2013),

researched intensively and came out with a new technique named critical path scheduling. The

company applied this technique in one of his over hauling projects and were able to reduce the

over haul time from 125 hours to78 hours. Adoption of critical path method techniques in road

construction is rapidly increasing because of the following advantages:

i. If some things go wrong with the planning of project, it can be easily identified and

then concentration of attention and labour is done to correct it.

21
ii. It helps in preparation of the most economical time table for all the operations of the

projects.

iii. It helps in selection of best combination of equipment and labour so as to finish up

the project in time.

iv. It assists in working out the effect of variations such as extra-works, change of order

of work, and other variations.

v. It makes the most economical use of available resources.

vi. It permits there viewing of the project at various stages and accordingly allowance

may be made to accommodate, uncertainties which were not thought of in original planning.

vii. It rationalizes construction costing and financing.

viii. The study of information and data available from this method suggests alternative

scheme also.

The difference between CPM and PERT techniques are as follows:

i. CPM network does not consider the uncertainty factor of various activities. In PERT

technique, time is the essential factor to be analysed and hence it includes the feature of

probability in its calculations.

ii. CPM is activity oriented and PERT is event oriented. Hence in case of projects

based on PERT calculations, the management will be interested in the start of an event rather than

the start of an activity.

According to Gurcharan and Jagdish (2013), the construction industry has sufficiently advanced

in India and it is not possible to predict with reasonable accuracy, the construction cost and the

time of performance as associated with each activity of the project. Thus, the basic assumptions of

CPM can be fulfilled and the probability feature of PERT is more or less irrelevant in most of the

22
cases. Moreover, PERT technique requires extra labour and cost for working out various time

predictions. Hence CPM technique is becoming more and more popular for most of the

construction projects. However, it should be remembered that there is a certain amount of overlap

between the two techniques and both have their own place in industrial management.

2.4.4 To-complete performance index (TCPI)

As demonstrated by Cooray, et al. (2018), TCPI is one of the deciding rings of Earned Value

Management. It is an important instrument for people who are busy with construction field

(project chief, group affiliates and different accomplices). TCPI find prediction of the expense

execution of the undertaking subject to the advantage of reaming work. TCPI he is to show up at

set target by refining cost performance of the undertaking (Scott, 2012). According to the Project

Management Body of Knowledge (PMBoK) (Project Management Institute [PMI],2017,6th

Edition), the TCPI indicates the target cost performance index (CPI) that is needed to complete

the project at the target budget. In simple words: the to-complete-performance index is the result

of dividing the remaining budget according to the plan by the actually available budget

(considering existing cost variances). The TCPI value is in one of the following three value

ranges, each of which has a different meaning:

TCPI=1: the project can continue with the current budget consumption rate

TCPI< 1: based on the current cost variance, the project will be completed at total cost lower than

the budget

TCPI>1: if the project continues working with the present cost variance, it will complete at a

budget overrun. Going forward, the actual cost-performance index of the project should meet the

TCPI value to allow the project to be completed within the approved budget.

23
In practice, the TCPI is mostly used in situations where the actual cost exceeds the earned value

Theto-complete-performance index then indicates at which factor the future cost performance

needs to be changed in order to complete the project at the planned budget.

2.4.5 Risk analysis

Construction industry is a highly risky process mostly because of its long-life duration and unique

product as a result of construction, and also many different professions are involved in one

project. Generally, risks in construction work should be controlled and reduced during design,

procurement and construction phase, and the most important activities are defined risk

management plan from the very beginning and to assign risks to different project members and to

manage their execution A risk is defined as the combination of probability of an event and its

impacts on project objectives (Sharaf and Abdelwahab, 2015). A positive consequence presents

an opportunity whereas a negative consequence poses a threat. The PMBOK (project management

body of knowledge) defines a s standard process to identify risk, which is based on an iterative

process because new risks may evolve or become known as the project progresses through its

lifecycle. According to Agnieszka and Mariusz (2015), risk is a measurable part of uncertainty,

for which we are able to estimate the occurrence probability and the size of damage. Study

evaluates the likelihood of occurrence and degree of impact of the risk events in Nigerian road

construction projects. The Federal Government of Nigeria (FGN) is the major client and most

Civil/Construction contracts are awarded by the Ministry of Works (MOW) under the Federal

Ministry of Works and Federal Road Maintenance Agency are in charge of all highways projects

that includes Trunk A roads, Bridges, retaining walls and storm water drainages. The major

problem associated with most road projects in Nigeria is always cost overruns coupled with delay

on completion (Nicholas & Awotunde, 2014). According to Nicholas and Awotunde (2014) a lot

24
has been written in the literature about risk assessment and management issues in various

industries. Many studies have explored the definition of risk as related to the construction context.

The risk is assumed as a deviation from the desired level. It can be positive or, which most often

happens, it can be negative. Risk analysis is a cost management technique aimed at quantifying

the undesirable factors and determination of their impact on time and cost of a construction

project and also proffering mitigating measures to the negative factors. All projects are subject to

risks that can occur during their life span.

Risks imply circumstances where the actual result of an activity or event is probably going to veer

off from the estimated/ forecasted value. These risks come along with costs which ought to be

managed to avoid the total project cost from escalating. To deal with these costs, risk analysis is

utilized in risk cost management. It includes identifying, quantifying, categorizing and controlling

risks (Chitkara, 2010).

Ayyub and Bender (2011) proposed a risk-based cost control which involves setting emphasis on

risk identification, assessment, acceptability, monitoring, decision analysis and control. It was

clarified that potential cost issues can be predicted by using risk analysis and simulation

techniques to pinpoint/identify potential areas prone to cost escalation. This is carried out in the

planning stage and the execution stage.

2.4.6 Cost value reconciliation (CVR)

Potts and Ankrah (2013) described cost value reconciliation (CVR) as is a cost system utilized by

the contractors, which attempts to demonstrate a practical and precise financial situation at any

present stage by projecting the cost-effectiveness of the organisation. This also fulfils one of the

legal requirements for example it forms the basis for statutory accounts and also just as mentioned

25
earlier above it provides information or identifies troubled areas in the project and provides the

opportunity to take required action in solving the problem by the project team in preventing them

from recurring on the project (Potts and Ankrah, 2013). This is carried out (cost valuation

reconciliation on a monthly basis as agreed for interim valuation) by the Quantity Surveyor/Cost

Engineer of the contractor but also require inputs from the rest of the project team to have an

integrated outcome (Potts and Ankrah, 2013). It is also good to note that these reconciliations may

be an estimated account and not an exact picture, it is according to the quantity surveyor’s

knowledge and judgement to the available information (Potts and Ankrah, 2013).

2.4.7 Budgetary control

Budgeting as indicated by Olagunju et al. (2014) from the French word 'Bougette' which implies

little sack. It was depicted as a leather bag, which the Chancellor of the Exchequer conveyed to

the Parliament of Great Britain. The major historical function of budget both in government and

private sector was to set limits for expenses of expenditure in order to control expenditure within

those limits. Budgeting is a management tool or technique utilized for short-term planning and

control. Traditionally, budget have been employed as a device to limit expenditure, but a much

more useful and constructive view is to treat the budget process as a means for obtaining the most

effective and profitable use of the company’s resource via planning and control. Short term

planning is formalized in the budgetary process. According to Ravi (2012), Budgetary control is

the establishment of budget relating the responsibility of the executives to the requirement of a

policy, and the continuous comparison of the actual with budgeted results, either to secure by

individual action the objectives of that policy or to provide a basis for its revision. Budgeting is

one of the ways of controlling cost in manufacturing organisations. Cost control is a systematic

review of the resources a company uses to achieve its primary objective of profitability; therefore,

26
it can also be referred to as cost management (Olagunju et al., 2014).

2.4.8 Cash flow analysis

Construction works like, highways, underground services, buildings, bridges, and drainage

amenities, industrial works, are predictable for their high risk and vulnerability, predominantly, at

the preliminary estimate phase where the cost of project's information is incredibly confined.

According to Tarek and Yaqiong (2014) constriction company cannot continue either genuine

construction contract deprived of practical cash flow management. Income is the harmony of in

flow and out flow cash on a project throughout an exact time frame. Studies and investigations

have shown that shortfall of liquidity is a huge issue in stagnating disappointment and frustration

of development projects. The cash flow forecasting is advantageous for the project in both the

tender stage and during the project construction progress, where the contractors need to ensure

that their planned cash reserves is adequate to cover any conceivable financial deficiency of the

project. (Bevian, 2016).

i. Because the importance of Cash for day to- day some contractors have suffered a

downturn not because their work was not profitable but due to an inability of cash in the short

term.

ii. Because of the poor financial management, especially in adequate attention to the

cash flow management, construction industry suffers of the largest number of bankruptcies of

economic sectors, with many companies failing.

As indicated by Bevian (2016). The cash flow forecast of a construction contract or project deals

more specifically with the payments due under a particular construction contract. Cash flow of the

construction contract will help to inform a company’ s overall cash flow as they are intrinsically

linked. Cash flow was defined as the actual movement of money in and out of a business. Positive

27
cash flow is termed as them one flowing in to a business and is credited as cash received. Monies

paid out are termed negative cash flow and are debited to the business. Net cash flow is the

difference between the positive and negative cash flows, positive cash flow is mainly derived

from monies received in the form of monthly payment certificates, stage payments, releasing of

retention and final account settlement. Mei Ye and Abdul Rahman (2010) identified the under

lying causes of late payment from the contractors’ perspective in the Malaysian construction

industry. A survey was used in this study for the purpose to elicit the contractors’ perception

respondents with at least ten years of working experience agreed with the highest ranked solution

which is to understand and research the owner’s ability to pay in mitigation of late payment.

2.4.9 Material management

Rathina Kumar et al. (2018) regard Material management as one of the persuasive pieces of

construction projects as the materials represent 55.5%-60.5% of the whole construction cost.

Material management is communicated as the path toward giving proper quantity and quality of

proper materials at the spot in the predefined time. The way toward planning of materials,

procurement of materials, inventory control, storage of materials, handling and transportation,

standardizing the material goes under material management. Much of the time construction

Projects experience the unapproachable effects of cost over run and time over due. These issues

can be stayed away from by appropriately carrying out material management which guarantees

the convenient progression of materials to the place of work (site) which thus expands the laborer

productivity and, accordingly, decreases the expense of the project. Rehearsing order over the

material expense can sufficiently reduce the expense of the project on account of the clarification

alluded beforehand. Material planning and stock control are the two most basic bits of material

management. Material planning characterized as the assurance of the need that satisfies the

28
development need under financial speculation approaches.

2.5 Components of Road Construction Project Delivery

Road construction is an intricate, important, and rewarding process. It starts with an idea and

culminates in a structure that may serve its occupants for quite a few years, even hundreds of

years. Asindicated by Supriadi, et al. (2018) the road is a plot of land flattened with a certain gray

and hardened surface to be able to serve vehicles passing on it with a strong and secure. In

providing a comfort and safe feeling for road users, especially toll roads, on the road surface is

given pavement layer with as pearl and /or concrete material classified into two, that is flexible

pavement and rigid pavement. Roads are laid outdoors by a large number of diverse constructors

and artisan son all types of sites and arise subject to all kinds of weather conditions. An overview

of the activities, events, and processes that bring about a road construction from the inception of

an idea or a concept in the owner’s mind to the completed design by the consultants (Civil

engineers, Quantity Surveyors and other stakeholders) and, finally, to the actual construction of

the road by the contractor. Design and construction are two independents but related and

generally sequential functions in there realization of a road. The former function deals with the

creation of the documents, and the latter function involves interpreting and transforming these

documents into reality.

The procedure by which a road project is delivered to its client may be separated into the

following components of road construction projected livery stages. In spite of the fact that there is

typically some overlap between adjacent stages, they for the most part follow this order:

i. Pre design delivery phase

ii. Design delivery phase

iii. Pre-construction delivery phase

29
iv. Construction delivery phase

v. Post construction delivery phase

2.6 Challenges of Cost Control Techniques

The challenges of cost control techniques have been investigated by studies across the globe. The

outcome of these studies has identified the several challenges of cost control techniques which

are: Lack of reliability in cost management by project manager’s/project quantity surveyor;

Inadequate acquaintance on the utilization of available tools and technology; Relinquishment of

complicated approaches; Using out dated approaches and perceptions; Deficiency of financial

dedication in projects; and Deficient PCC procedures and framework appropriate to the enterprise.

2.6.1 Lack of reliability in cost management by project manager’s / project quantity

surveyor

Many construction companies will take the initiative to perform or undertake PCC process only

when there exist cost problems, predicaments, or thoughtful cost issues. This is a common

phenomenon with most construction managers. conversely, the organization will only be

executing or delivering the construction project as planned. Although cost manager recognizes the

essence of performing PCC process, they fail to pass the concept to the other members of

organization to accomplish the cost objectives of the project. Instead of being cons stenting the

practice of cost control during construction project execution, managers mostly do so irregularly

or occasionally when the need arises. Not only is there a lack of PCC processes and systems, but

al so the many cost managers’ ma ladies, which is a lack of continuous engagement of PCC

processes in the delivery of construction projects (Song, 2014 and Adjei et al., 2015).

2.6.2 Inadequate acquaintance on the utilization of available tools and technology

30
In formation is the vital portion for each construction establishment to advance particularly and to

be huge in the construction industry (Martin, 2010 and Ademola, 2012). Information on cost

control can be considered as specialized and managerial information and the need impacts the

showing of PCC(Ademola,2012). The fight to reliably consider and like complex procedures and

steps of cost control using appropriate tools remains attest for explicit experts. (Ademola, 2012).

2.6.3 Relinquishment of complicated approaches

Regularly most project manager/site supervisors, quantity surveyors or cost engineers think that it

is difficult to join residual knowledge with experiences from past attempts (Ademola, 2012). The

orderly systems where one uses mathematics with computerized base is an issue for some

professionals in the everyday activities in managing cost (Ademola, 2012).

2.6.4 Using out dated approaches and perceptions

Little and medium development firms’ areas of now utilizing crude Project cost control (PCC)

strategies which rely fundamentally on manual, paper-based information, nature, and past work

encounters (Yakubu and Sun, 2014). Song (2014) added that most owners of construction firms

have little level of education or no knowledge on cost management which hinders practices of

cost control. This makes them rely on previous work experiences acquired from previous projects

undertaken. The limitation of current cost management competences, and self-learning narrowed

knowledge, continuous development of organizations, and the changing of work environment

have turned their previous work experiences and methods into unfashionable ones. The challenge

is that these outdated cost management practices cannot be used to solve current real-world

situation of cost variances.

2.6.5 Deficiency of financial dedication in projects

The most important factor that is being considered by every contractor is the opportunity to

31
remain in business by taking up some construction projects. Most contractors are always

concerned with profit or turnover before taking up a new construction project. Contractors are

well aware of the need to maintain a flow of cash for the day-to-day activities in project delivery

and also maintain a cash flow for the survival of the company. Additionally, some contractors

have suffered liquidation or bankruptcy not because their construction work was unprofitable but

because of cash flow problem in the short-term during construction project delivery (Sanni and

Hashim, 2013).

2.6.6 Deficient PCC procedures and framework appropriate to the enterprise

As previously explained, manager of construction companies are very mindful of cost control

issues, and have repeatedly stressed it as a necessity. The project managers dependably lean

toward a straightforward strategy for performing cost control techniques without following fair

treatment which finally become an awful practice. Most project managers are dependably mindful

of the need to focus and keep construction cost on track yet are not set up to put a ton of energy in

building up a cost control template for every construction project for use in the PCC cycle, this is

a result of the fact that, formulating the cost control process for a project takes a lot of time.

2.6.7 Other challenges

Other challenges identified by Malkanthi et al. (2017) include: Fluctuation in prices of Raw

Materials; Poor Project Site Management; Lowest Bid Procurement Method; Inappropriate

Government Policies; and Wrong method of Cost estimating.

2.7 Drivers Enhancing the Application of Cost Control Techniques

Oyegoke et al. (2021) identified several drivers as factors enhancing selection of cost control

techniques. These factors range from cost information/cost-related factors to size of the company

and effectiveness of the technique. When selecting a cost control technique, the balance between

32
the technique and the benefits it offers the project is also important (Potts, 2013). Potts (2013)

postulates that operating an extensive cost control system can become a “monster”, deflecting

other important tasks a cost consultant has on a project. Sears (2015) agrees, stating that how

costs are controlled on a project is dependent upon the “size and character” of the business. A

smaller project would require a simple easy to follow cost control technique, whereas a complex

project would require a more elaborate technique. This shows that the most effective technique

could depend on the type of project it is applied to. A cost control technique needs to be an

investment, not an expense, it has no value to the business if the data produced is not used or not

reported in the relevant time frame (Sears, 2015). According to Sears (2015), “the details of a

specific cost control system vary substantially from one construction firm to another, the ensuring

treatment can be regarded as being reasonably typical of current practice” (Sears, 2015). This

statement indicates that even though the specific cost control techniques are different, the overall

cost control method is relatively typical of those in similar businesses. Jayaraman (2016),

mentioning standardisation of cost control is difficult, he believes there is no unanimity in the

industry to which cost control technique is most effective and therefore should be utilised. Sears

(2015) believes that cost control systems of businesses are of the same nature could be skeptical

as projects are unique and often have different demands meaning often different techniques are

utilised. However, Bergerud (2012) disagrees, he concludes that companies are standardising

methods across their business but allowing for flexibility at the project level.

According to PMBOK (2013), it is one of the three activities that need to be performed as part of

the cost management function. Despite the sophistication and variety of approaches and computer

support cost estimating is still an art, at least to some degree. Regardless of the level of estimating

detail chosen, the process cannot be performed without a clear project definition at the level of the

33
required estimate and a selection of the estimating method (Olawale and Sun, 2010).

The resource-based theory was first authored by Wernerfelt (1984) and later reviewed by other

contributors who expounded on the influence that both tangible and intangible assets have on the

performance of an organisation (Crook et al., 2008). The resource-based view theory magnifies

the importance of internal resources within the firm and the use of these resources in formulating

a strategy to achieve sustainable advantage within the firm’s competitive markets (Schroeder et

al., 2002). According to the Gitonga et al. (2022), a firm's internal capabilities determine the

strategic choice it makes in competing in its external environment. This is in line with the

influence that project planning practices have on the performance of a firm. Closer to the context

of the construction industry, the firm's internal capabilities are used to identify and explore

manpower expertise and project planning systems that can help construction firms manage present

construction projects and grab future business opportunities, therefore, increasing the firm’s

portfolio. Capabilities, resources, and knowledge acquired over time create options for future

business exploration and give the firm leverage over its competitors (Kogut and Kulatilaka,

2001). Within the context of the construction industry, these may include, plant and machinery,

planning and schedule templates, cost and financing models, professional consultants and

knowledge workers as well as certified organisational processes and best practices. Loasby (2002)

explores the view that investments in resources and capabilities are choice decisions made in the

context of uncertainty and that it is the combination of these factors that make real options

potentially valuable. Resources are inputs into a firm's production process, such as capital,

equipment, skills of individual employees, patents, finance, and talented managers. Resources are

either tangible or intangible. With increasing effectiveness, the set of resources available to the

firm tends to become larger (Gitonga et al., 2022).

34
2.8 Relationship Between Cost Control Techniques and Road Construction Project Delivery

Chitkara (2005) said the relationship between time and cost is a very important aspect in the

control of costs on site as any variation in time has automatic implication on cost. It is important

to report and record all the works involving materials, plant and labour on sites. This enables the

contractor to be able to know the costs and expenses of the resources used on site and compare

with the initial cost budget. Various report techniques used include; daily or weekly and monthly

recording, schedule control, site daily diary report and the project budget.

Idoko (2018) noted many road projects in Kenya encounter considerable time and cost overruns

fail to realize their intended benefit or are even totally terminated and abandoned before or after

their completion. World Bank (2010) shows project planning as having the most significant

impact on achieving project success which is equated to achieving project objectives. Cooke-

Davies (2010) consistently shows that well-trained teams deliver more benefit to project

management than undertrained teams because they reduce risks to projects by carefully selecting

the most appropriate technologies, hiring the most affordable and experienced consultants, and

using sophisticated planning practices to ensure functional success.

35
 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Research Design

Steen (2012) defined research design as a highly contextual and a key principle of a human

cantered design process by involving users in one or many parts of the design process. Research

design is a technique by which data can be collected and analysed in a way that combine aims can

be achieved (Kothari, 2011). In fact, the research design is concept within which research is

based; it includes collection of data, measurement and analysis of data. Designers have various

tools available to do research. From administration of questionnaires, face-to-face interviews,

online surveys over to new tools like guerrilla testing. This research basically employed the use of

survey design method using the quantitative approach through a well-structured questionnaire to

36
examine various cost control techniques used in road construction projects and the impact they

have on project delivery.

3.2 Research Population

A research population is generally a large collection of individuals or objects that is the main

focus of a scientific query (Mohamed, 2017). Kolo (2003) supported that; population is a group of

people that have a similar character which the researcher may have on them. Polit and Hungler

(2001) refer to the population as totality of all subjects that conform to a set of specifications,

comprising the entire group of persons that is of interest to the researcher and to whom the

research results can be generalised. The target population for this study comprised of Twenty-two

(22) construction firms in Abuja metropolis registered with Federation of Construction Industry

(FOCI), Nigeria (Onuigbo and Shittu, 2019). A preliminary visit to the field revealed a population

size of 100 professionals across the twenty-two construction firms registered with FOCI in Abuja.

3.3 Sampling Frame

Carl et al. (2011) postulated that in statistics, a sampling frame is the source material or device

from which a sample is drawn. It was further stated that it is a list of all those within a population

who can be sampled, and may include individuals, households or institutions. This is an

accessible section of the target population (usually a list with contact information) from where a

sample can be drawn (Bhattacherjee, 2012). The sample frame for this research consisted of

construction firm (dealing with road construction only) in Abuja registered with and contained in

the list of contractors complied by FOCI Nigeria.

3.4 Sample Size

37
For this study, all the construction professionals which constitute the total population were

considered. Therefore, the sample size for the study was made up of 100 professionals across the

twenty-two construction firms registered with FOCI in Abuja.

3.5 Sampling Technique

The processes the researcher uses when choosing his items from the sample, it consists of the of

element that will form part of sample this mean that the sample size, sampling techniques before

collection of data (Kothris, 2011). For the purpose of this research, the researcher identified the

cost control techniques used on road construction works among the cost control techniques

identified through literature review, this was carried out be allocation of pilot questionnaire to the

construction firms. Watson (2001) makes justification by reporting that in a population of two

hundred (200) or less, it is recommended that the census of everyone be carried out. But with

large data population, sampling techniques is therefore recommended.

3.6 Method of Data Collection

Data as a set of values of qualitative or quantitative variables. Data is facts or figures from which

conclusions can be drawn. Data collection plays a very crucial role in the statistical analysis. In

research, there are different methods used to gather information, all of which fall into two

categories, for example primary and secondary data (Douglas,2015). As the name suggests,

primary data is one which is collected for the first time by the researcher while secondary data is

the data already collected or produced by others. For this research, primary sources of data

collection were employed. The primary data was gotten from the administration of well-structured

questionnaires.

38
3.7 Method of Data Analysis

Data gathered were analysed in relation to the stated objectives. The data were analysed using

descriptive (Percentile, Frequency and Mean Item Score) and inferential (regression analysis)

statistical techniques. The use of Meant Item Score (MIS) was adopted to rank the perception of

respondents on the cost control techniques used in road construction projects in order of

effectiveness, the challenges of cost control techniques used in road construction projects in order

of severity and the drivers enhancing the application of the cost control technique, used in road

construction projects in order of significance. The use of simple linear regression analyses was

adopted to determine the relationship between cost control techniques and road construction

project delivery. The regression analysis was conducted with the aid of IBM SPSS 2.0 software.

The data collected on the respondents’ general information were analysed using frequencies and

percentile. Other objectives were analysed using details contained in Table 3.1.

Table 3.1: Procedures for Analyzing the Research Objectives

S/No. Objectives Data Tools Method of Analysis
1 To identify cost control techniques used in Questionnaire Mean Item Score
road construction projects. (MIS)
2 To examine the challenges of cost control Questionnaire MIS
techniques used in road construction project.
3 To examine the drivers enhancing the Questionnaire MIS
application of the cost control technique, used
in road construction projects.
4 To determine the relationship between cost Questionnaire Regression Analysis
control techniques and road construction
project delivery.
Source: Researcher’s Field Survey (2024)

3.7.1 Decision rule for MIS

MIS is being ranked from 1.00 to 5.00 and the decision rule adopted for the MIS analysis. The

formula used for calculating MIS values is given as Equation 3.1 while the decision rule used for

the MIS are summarized in Table 3.2.

39
 ƩW
MIS = −−−−−−−−−−−−−−−−−−−−− (3.1)
N

Where: Ʃ = Summation, W = Weight, and N = Total

Table 3.2: Decision Rule for MIS Analysis

Scale MIS Cut-Off Point Interpretation
Level of Effectiveness Level of Severity Level of Significance
5 4.51 - 5.00 Extremely Effective Extremely Severe Very Significant
4 3.51 - 4.50 Very Effective Very Severe Significant
3 2.51 - 3.50 Effective Severe Fairly Significant
2 1.51 - 2.50 Less Effective Less Severe Less Significant
1 1.00 - 1.50 Least Effective Least Severe Least Significant
Source: Adapted and Modified from Shittu et al. (2022)

3.7.2 Decision rule for regression analysis

The regression analysis used to determine the relationship between cost control techniques and road

construction project delivery uses three major parameters. These parameters are the coefficient of

correlation (r), coefficient of determination (R2) and the probability value (sig or p value). This study

assumes a 5% level of significance. Therefore, for the coefficient of correlation, if r - 1 or + 1, this

determines the direction of the relationship. The strength of the relationship ranges from –1.00 to

1.00. In addition, if r = 0.10 to 0.29, then correlation is small If r = 0.30 to 0.49, then correlation is

medium. If r = .50 to 1.0, then correlation is large.

For the coefficient of determination, if R 2 is less than 50%, then relationship between the

variables is weak. If R2 is greater than or equal to 50%, then the relationship between the variables

is strong. For the sig or p value, if p value is less than the level of significance (0.05), then the

relationship between the variables is significant. If p value is greater than the level of significance

(0.05), then the relationship between the variables is not significant.

40
 CHAPTER FOUR

4.0 RESULTS AND DISCUSSION

4.1 Analysis of Respondents’ Profile

The study sent out 100 questionnaires, 98 responses were retrieved. This analysis is according to

98 responses from the questionnaires. The demographic information of the respondents is shown

in Table 4.1.

Table 4.1: Demographic Distribution of the Respondents

Variable Frequency Percentage
Gender
Male 66 67.34
Female 32 32.65
Age Group
Under 25 7 7.14

41
 25-34 27 27.55
35-44 28 28.57
45-54 24 24.49
55 and above 12 12.24
Highest Educational Qualification
Diploma (ND) 10 10.2
Bachelor’s Degree 46 46.94
Master’s Degree 26 26.53
PhD 15 15.31
Higher National Diploma (HND) 1 1.02
Professional Role/Position
Project Manager 20 20.41
Civil Engineer 10 10.2
Quantity Surveyor 43 43.88
Site Supervisor 10 10.2
Cost Consultant 12 12.24
Others 3 3.06
Years of Experience Working in Abuja
Less than 1 year 7 7.14
1-5 years 35 35.71
6-10 years 37 37.76
11-15 years 10 10.2
Over 15 years 9 9.18
Type of Organisation
Government Agency 29 29.59
Private Construction Company 30 30.61
Consulting Firm 22 22.45
Contractor 17 17.35
Years of Experience Working in Abuja
Less than 1 year 11 11.22
1-5 years 36 36.73
6-10 years 35 35.71
11-15 years 9 9.18
Total 98 100

The demographic analysis of the study on cost control techniques in road construction project

delivery in FCT Abuja, Nigeria, reveals key insights about the respondents' backgrounds and

qualifications. The gender distribution of the 98 respondents shows a predominance of males,

with 66 (67.34%) being male and 32 (32.65%) females. This suggests a male-dominated sample,

which aligns with the general trend in the construction industry. Regarding the age groups of the

respondents, the majority fall within the 25-44 age range, comprising 27.55% in the 25-34 group

and 28.57% in the 35-44 group. This indicates that most participants are relatively young to mid-

career professionals actively engaged in the construction sector. Meanwhile, a smaller proportion

of respondents are under 25 (7.14%) or aged 55 and above (12.24%), providing a mix of both

emerging professionals and those with potentially more extensive experience.

42
The educational background of the respondents is notably high, with most holding at least a

Bachelor's degree (46.94%). Additionally, 26.53% have a Master’s degree, and 15.31% possess a

PhD. Only a small percentage have a Diploma (10.20%) or an HND (1.02%). This suggests that

the workforce involved in the construction industry, particularly those related to cost control and

management roles, is well-educated, which could positively impact the effectiveness and

precision of cost management techniques used in projects. When examining professional roles or

positions, the data reveals that Quantity Surveyors make up the largest group of respondents at

43.88%, reflecting their critical role in cost estimation and financial management in road

construction projects. Project Managers constitute 20.41%, followed by Cost Consultants

(12.24%), Civil Engineers (10.20%), and Site Supervisors (10.20%). A small percentage (3.06%)

falls into other roles. This diverse range of positions indicates that the study captures perspectives

from key stakeholders directly involved in cost management and decision-making processes in

road construction projects.

The respondents' experience levels in working within Abuja vary, with a significant number

having 6-10 years of experience (37.76%) and 1-5 years of experience (35.71%). Those with over

15 years of experience account for 9.18%, and only 7.14% have less than one year of experience.

This suggests a predominantly experienced workforce, which is likely to contribute valuable

insights into the practical challenges and effectiveness of cost control techniques in the local

context. Lastly, the types of organizations represented by the respondents are well-distributed.

About 30.61% work in private construction companies, 29.59% in government agencies, 22.45%

in consulting firms, and 17.35% in contractor organizations. This distribution ensures a balanced

perspective on cost control practices across different types of organizations involved in road

construction projects in Abuja.

43
The demographic data provides a comprehensive overview of the respondents’ profiles,

highlighting a well-educated and experienced group of professionals from various organizational

backgrounds and roles. This diversity enhances the reliability and applicability of the study's

findings regarding cost control techniques in road construction projects within the region.

4.2 Cost Control Techniques Used in Road Construction Projects

The results of the MIS ranking of the opinion of respondents on the effectiveness of the cost

control techniques used in road construction projects in Abuja are summarised in Table 4.2. The

results presented in Table 4.2 revealed that the most effective cost control techniques used in road

construction projects were “Cost value reconciliation (CVR)” (MIS = 3.51) and “Earn value

management (EVM)” (MIS = 3.47). The least effective cost control techniques used in road

construction projects were “Critical path method (CPM)” and “Material management” (MIS =

3.21 respectively). On the average, all the identified cost control techniques used in road

construction projects in Abuja were effective (average MIS = 3.31).

Table 4.2: Cost Control Techniques Used in Road Construction Projects

Code Cost Control Techniques Used in Road MIS Rank Decision
Construction Projects
B6 Cost value reconciliation (CVR) 3.51 1st Very Effective
B1 Earn value management (EVM) 3.47 2nd Effective
B7 Budgetary control 3.35 3rd Effective
B8 Cash flow analysis 3.28 4th Effective
B2 Programme evaluation and review techniques 3.26 5th Effective
(PERT)
B4 To-complete performance index (TCPI) 3.26 5th Effective
B5 Risk analysis 3.22 5th Effective
B3 Critical path method (CPM) 3.21 8th Effective
B9 Material management 3.21 8th Effective
Average MIS 3.31 Effective

4.3 Challenges of Cost Control Techniques Used in Road Construction Projects

44
The results of the MIS ranking of the perception of respondents on the challenges of cost control

techniques used in road construction projects in Abuja are summarised in Table 4.3. The results

presented in Table 4.3 revealed that the most severe challenges of cost control techniques used in

road construction projects were “Lack of reliability in cost management by project

manager’s/project quantity surveyor” (MIS = 3.50) and “Using out dated approaches and

perceptions” (MIS = 3.42). The least severe challenges of cost control techniques used in road

construction projects were “Deficient PCC procedures and framework appropriate to the

enterprise” (MIS = 3.13) and “Wrong method of Cost estimating” (MIS = 3.09). On the average,

all the identified challenges of cost control techniques used in road construction projects s in

Abuja were severe (average MIS = 3.27).

Table 4.3: Challenges of Cost Control Techniques Used in Road Construction Projects
Code Challenges of Cost Control Techniques Used in MIS Rank Decision
Road Construction Projects
C1 Lack of reliability in cost management by project 3.50 1st Severe
manager’s/project quantity surveyor
C4 Using out dated approaches and perceptions 3.42 2nd Severe
C8 Poor Project Site Management 3.35 3rd Severe
C9 Lowest Bid Procurement Method 3.35 3rd Severe
C2 Inadequate acquaintance on the utilization of 3.33 5th Severe
available tools and technology
C3 Relinquishment of complicated approaches 3.28 6th Severe
C5 Deficiency of financial dedication in projects 3.22 7th Severe
C7 Fluctuation in prices of Raw Materials 3.20 8th Severe
C10 Inappropriate Government Policies 3.15 9th Severe
C6 Deficient PCC procedures and framework 3.13 10th Severe
appropriate to the enterprise

45
 C11 Wrong method of Cost estimating 3.09 11th Severe
Average MIS 3.27 Severe

4.4 Drivers Enhancing Application of Cost Control Technique Used in Road Construction

Projects

The results of the MIS ranking of the perception of respondents on the drivers enhancing the

application of the cost control technique used in road construction projects in Abuja are

summarised in Table 4.4. The results presented in Table 4.4 revealed that the most significant

drivers enhancing the application of the cost control technique used in road construction projects

were “Size of the company” (MIS = 3.32) and “Standardisation of cost control” (MIS = 3.27).

The least significant drivers enhancing the application of the cost control technique used in road

construction projects were “Availability of resources” (MIS = 3.11) and “Manpower expertise and

project planning systems” (MIS = 3.09). On the average, all the identified drivers enhancing the

application of the cost control technique used in road construction projects in Abuja were

significant (average MIS = 3.19).

Table 4.4: Drivers Enhancing the Application of the Cost Control Technique Used in Road
Construction Projects
Code Drivers Enhancing the Application of the Cost MIS Rank Decision
Control Technique Used in Road Construction
Projects
D1 Size of the company 3.32 1st Significant
D5 Standardisation of cost control 3.27 2nd Significant
D6 Allowing for flexibility at the project level 3.26 3rd Significant
D8 Formulating a strategy to achieve sustainable 3.26 3rd Significant
advantage within the firm’s competitive markets
D7 Clear project definition at the level of the required 3.21 5th Significant
estimate
D2 Effectiveness of the technique 3.20 6th Significant
D11 Professional consultants and workers’ knowledge 3.19 7th Significant
D4 Details of a specific cost control system 3.16 8th Significant
D9 Firm's internal capabilities 3.14 9th Significant
D12 Certified organisational processes and best practices 3.14 9th Significant

46
 D3 Size and character of the business 3.12 11th Significant
D13 Availability of resources 3.11 12th Significant
D10 Manpower expertise and project planning systems 3.09 13th Significant
Average MIS 3.19 Significant

4.5 Relationship Between Cost Control Techniques and Road Construction Project Delivery

In order to determine the relationship between cost control techniques and road construction

project delivery, the use of simple linear regression analysis was adopted to relate the drivers

enhancing the application of cost control techniques with the effectiveness of cost control

techniques used in road construction projects in Abuja. The results of the simple linear regression

analysis are highlighted in Table 4.5. The results of the regression analysis presented in Table 4.5

reveal that there exists a positive, weak and significant relationship between the drivers enhancing

the application of cost control techniques with the effectiveness of cost control techniques used in

road construction projects. The coefficient of correlation (r) observed was 0.389, indicating

medium effect correlation between the variables. The positive correlation observed indicates that

increase in the adoption of the drivers enhancing the application of cost control techniques will

result into an improvement in the effectiveness of cost control techniques used in road

construction projects for enhanced delivery and vice versa. The value of the coefficient of

determination observed was 16.2%, indicating a weak relationship between the variables. The

probability (sig or p value) observed was 0.000 and was less than 0.000. This implies that there

exists a significant relationship between the variables at 5% level of significance. Hence, the

relationship between cost control techniques and road construction project delivery in Abuja is

significant.

Table 4.5: Relationship Between Cost Control Techniques and Road Construction Project
Delivery
OBSERVAT
VARIABLES INFERENCES
Regression IONS
Equation Strength of
X Y r R2 (%) Pvalue Remark
Relationship

47
 Drivers
Cost Control
Enhancing the
Techniques
Application of Y = 2.267 +
Used in Road 0.389 16.2 0.000 Weak SS
the Cost 3.326x
Construction
Control
Projects
Technique
KEY:
SS = Statistically Significant
r = Correlation Coefficient
R2 = Coefficient of Determination
Pvalue = Calculated Probability Value

4.6 Summary of Findings

The following were discovered from the results of the data analysis undertaken in this study:

i. The most effective cost control techniques used in road construction projects were “Cost

value reconciliation (CVR)” (MIS = 3.51) and “Earn value management (EVM)” (MIS =

3.47). On the average, all the identified cost control techniques used in road construction

projects in Abuja were effective (average MIS = 3.31).

ii. The most severe challenges of cost control techniques used in road construction projects

were “Lack of reliability in cost management by project manager’s/project quantity

surveyor” (MIS = 3.50) and “Using out dated approaches and perceptions” (MIS = 3.42).

On the average, all the identified challenges of cost control techniques used in road

construction projects s in Abuja were severe (average MIS = 3.27).

iii. The most significant drivers enhancing the application of the cost control technique used

in road construction projects were “Size of the company” (MIS = 3.32) and

“Standardisation of cost control” (MIS = 3.27). On the average, all the identified drivers

enhancing the application of the cost control technique used in road construction projects s

in Abuja were significant (average MIS = 3.19).

iv. There exists a positive, weak and significant relationship between the drivers enhancing

the application of cost control techniques with the effectiveness of cost control techniques

48
 used in road construction projects (r = 0.389; R2 = 16.2%; p = 0.000).

CHAPTER FIVE

5.0 CONCLUSION AND RECOMMENDATION

5.1 Conclusion

This study investigated the effectiveness of cost control techniques in road construction projects

in Abuja, focusing on their role in project delivery, challenges faced, and their impact on overall

project outcomes. The objectives embedded in the research questions were to examine the

49
effectiveness of current cost control techniques, identify the challenges, and assess their effect on

project delivery.

The findings revealed that the most effective cost control techniques used in road construction

projects are “Cost value reconciliation (CVR)” and “Earn value management (EVM)”, while on

the average, all the cost control techniques used in road construction projects in Abuja are

effective. Therefore, cost control techniques can effectively enhance the delivery of road

construction projects. The study also found that the most severe challenges of cost control

techniques used in road construction projects are “Lack of reliability in cost management by

project manager’s/project quantity surveyor” and “Using out dated approaches and perceptions”,

while on the average, all the identified challenges of cost control techniques used in road

construction projects s in Abuja are severe. Hence, application of cost control techniques can be

severely hindered by challenges identified in this study.

Furthermore, the study revealed that the most significant drivers enhancing the application of cost

control technique in road construction projects are “Size of the company” and “Standardisation of

cost control”, while on the average, all the identified drivers enhancing the application of cost

control technique in road construction projects in Abuja are significant. Therefore, the application

of cost control technique in road construction projects can be significantly enhanced by the

drivers identified in this study. Finally, it was revealed that there exists a positive, weak and

significant relationship between the drivers enhancing the application of cost control techniques

with the effectiveness of cost control techniques used in road construction projects. Hence, the

relationship between cost control techniques and road construction project delivery in Abuja is

significant. The study therefore concludes that cost control techniques are essential tools in

50
managing road construction projects in Abuja, contributing positively to project outcome.

However, to optimize their effectiveness, attention must also be given to certain drivers such as

Size of the company and Standardisation of cost control.

5.2 Recommendations

Based on the findings of this research, the following recommendations are made:

i. In order to enhance the delivery of road construction projects, construction firms should

ensure that the management of road projects are done using the most effective techniques

especially “Cost value reconciliation (CVR)” and “Earn value management (EVM)”.

ii. In order to avoid problem of poor delivery in road construction projects the stakeholders

involved should establish proactive measures such as ensuring the reliability in cost

management by project manager’s/project quantity surveyor and using up-to-date

approaches and perceptions. This will assist in avoiding or mitigating the challenges

hindering the effectiveness of cost control techniques in road construction projects.

iii. Road construction firms should focus more attention on the size of the company and

standardisation of cost control techniques selected so as to enhance project delivery.

iv. In order to continuously enhance the cost control techniques used in road construction

projects, relevant stakeholders should set up a mechanism for preferring proactive and

reactive measures for mitigating the challenges and enhancing the drivers enhancing the

application of the cost control technique used in road construction projects.

5.3 Contribution to Knowledge

The findings of this study have made the following contributions to the body of knowledge:

51
 i. The first objective of this study sought to identify the cost control techniques used in road

construction projects. In view of this, it was revealed that cost control techniques used in

road construction projects in are effective (average MIS = 3.31), with the most effective

techniques being “Cost value reconciliation (CVR)” (MIS = 3.51) and “Earn value

management (EVM)” (MIS = 3.47).

ii. The second objective of this study was to examine the challenges of cost control

techniques used in road construction projects. To this effect, it was revealed that the

challenges of cost control techniques used in road construction projects in Abuja are

severe (average MIS = 3.27), with the most severe challenges being “Lack of reliability in

cost management by project manager’s/project quantity surveyor” (MIS = 3.50) and

“Using out dated approaches and perceptions” (MIS = 3.42).

iii. The third objective of this study strived to examine the drivers enhancing the application

of the cost control technique used in road construction projects. Therefore, the study

revealed that the drivers enhancing the application of the cost control technique can

significantly enhance the delivery of road construction projects (average MIS = 3.19),

with the most significant drivers being “Size of the company” (MIS = 3.32) and

“Standardisation of cost control” (MIS = 3.27).

iv. Finally, the fourth objective of this study sought to determine relationship between cost

control techniques and road construction project delivery. It was found that the

relationship between cost control techniques and road construction project delivery in

Abuja is significant (r = 0.389; R2 = 16.2%; p = 0.000).

5.4 Areas for Further Studies

52
In view of the limitations of this study, the following areas are suggested for further research:

i. Effect of procurement methods on effectiveness of control techniques in road construction

projects.

ii. Effect of stakeholders’ management on the delivery of road construction projects.

iii. Comparative analysis of stakeholders’ perception on the effect of cost control techniques

on road construction project delivery.

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 APPENDIX

RESEARCH QUESTIONNAIRE

QUESTIONNAIRE COVER LETTER

DEPARTMENT OF QUANTITY SURVEYING

SCHOOL OF ENVIRONMENTAL TECHNOLOGY

56
 FEDERAL UNIVERSITY OF TECHNOLOGY MINNA
Date:……………………………
To: ………………………….
………………………………
……………………………….
……………………………….

Dear Sir/Ma,

RESEARCH QUESTIONNAIRE: Assessment of Cost Control Techniques on Road

Construction Project Delivery in FCT Abuja, Nigeria.

I am a final year student of the department of Quantity Surveying of Federal University of

Technology Minna, carrying out a research on the Assessment of Cost Control Techniques on
Road Construction Project Delivery in FCT Abuja, Nigeria.

The research work is purely on an academic basis and the questionnaire is expected to assist in
collecting the necessary Information for the research. Be rest assured that your response will be
treated with Utmost confidentiality.

Thanks, in anticipation of your maximum cooperation.

Yours faithfully,

EMMANUEL ELISHA
2018/1/71594VQ
(Project Student)

SURVEY QUESTIONNAIRE

ASSESSMENT OF COST CONTROL TECHNIQUES ON ROAD CONSTRUCTION

PROJECT DELIVERY IN FCT ABUJA NIGERIA

SECTION A: Demography of Respondents

Q1. What is your Age group?

Under 25 [ ] 25-34 [ ] 35-44 [ ] 45-54 [ ] 55 and Above [ ]

Q2. What is you gender?

57
Male [ ] Female [ ]

Q3. Highest Educational Qualification

Diploma [ ] Bachelor’s Degree [ ] Master’s Degree PhD [ ]

Q4. Your Professional Role/Position?

Project Manager [ ] Civil Engineer [ ] Quantity Surveyor [ ] Site Supervisor [ ] Cost

Consultant [ ]

Q5. Years of Experience in Road Construction

Less than 1 year [ ] 1-5 years [ ] 6-10 years [ ] 11-15 years [ ] Over 15 years [ ]

Q6. Type of Organization

Government Agency [ ] Private Construction Company [ ] Consulting Firm [ ]

Contractor [ ]

Q7. Years of Experience Working in Abuja

Less than 1 year [ ] 1-5 years [ ] 6-10 years [ ] 11-15 years [ ] Over 15 years [ ]

SECTION B: Cost Control Techniques Used in Road Construction Projects

Q8. The following are the cost control techniques used in road construction projects as identified
from this study. Please kindly indicate, by ticking (√) in the blank spaces provided in the Table
below, the level of effectiveness of these cost control techniques on a five-point scale based on
your experience.

code Cost Control Techniques Used in 5 4 3 2 1

No. Road Construction Projects Extremely Very Effective Less Least
Effective Effective Effective Effective
B1 Earn value management (EVM)
B2 Programme evaluation and review
techniques (PERT)
B3 Critical path method (CPM)
B4 To-complete performance index
(TCPI)
B5 Risk analysis
B6 Cost value reconciliation (CVR)
B7 Budgetary control
B8 Cash flow analysis
B9 Material management

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SECTION C: Challenges of Cost Control Techniques Used in Road Construction Projects
Q9. The following are the challenges of cost control techniques used in road construction projects
as identified from the review of literature in this study. Please kindly indicate, by ticking (√) in the
blank spaces provided in the Table below, your rating of the level of severity of these challenges
on a five-point scale based on your experience.

code Challenges of Cost Control 5 4 2 1

No. Techniques Used in Road Extremely 3
Very Less Least
Severe
Construction Projects Severe Severe Severe Severe

C1 Lack of reliability in cost

management by project
manager’s/project quantity surveyor
C2 Inadequate acquaintance on the
utilization of available tools and
technology
C3 Relinquishment of complicated
approaches
C4 Using out dated approaches and
perceptions
C5 Deficiency of financial dedication in
projects
C6 Deficient PCC procedures and
framework appropriate to the
enterprise
C7 Fluctuation in prices of Raw
Materials
C8 Poor Project Site Management
C9 Lowest Bid Procurement Method
C10 Inappropriate Government Policies
C11 Wrong method of Cost estimating

SECTION D: Drivers Enhancing the Application of the Cost Control Technique Used in
Road Construction Projects
Q10. The following are the drivers enhancing the application of the cost control technique used in
road construction projects as identified from this study. Please kindly indicate, by ticking (√) in
the blank spaces provided in the Table below, the level of significance of these drivers on a five-
point scale based on your experience.

code Drivers Enhancing the 5 4 2 1

No. Application of the Cost Extremely 3
Very Less Least
Control Technique Used in Significant Significant Significant Significant Significant

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 Road Construction Projects
D1 Size of the company
D2 Effectiveness of the
technique
D3 Size and character of the
business
D4 Details of a specific cost
control system
D5 Standardisation of cost
control
D6 Allowing for flexibility at the
project level
D7 Clear project definition at the
level of the required estimate
D8 Formulating a strategy to
achieve sustainable
advantage within the firm’s
competitive markets
D9 Firm's internal capabilities
D10 Manpower expertise and
project planning systems
D11 Professional consultants and
workers’ knowledge
D12 Certified organisational
processes and best practices
D13 Availability of resources

60