Evaluation of Risk of Fluctuation Claim on Cost of Construction Projects in the South-South Zone of Nigeria

摘要

Establishment and achievement of accurate project estimate is a major challenge facing the construction industry across the nations especially in the developing countries. Projects generally are one-off activities with very unique characteristics. Their acyclic nature further makes them practically difficult to repeat any section if that is completed, thereby subjecting their original schedule, budget and performance baselines to the prevailing project environment shaped by both known and unknown financial, technical and managerial risk factors. The study established the relationship between fluctuation cost and cost overrun of building construction projects in the South-South zone of Nigeria. The cost data on 20 completed public building construction projects in the study area were purposively sampled and adopted for the study. Data obtained were analysed using linear regression. The result revealed that fluctuation in the prices of construction materials and labour accounts for 97% on the cost overrun of building projects in the South-South zone of Nigeria. It is therefore recommended that practitioners in the construction sector should adequately provide for likely fluctuation of material and labour prices during project planning for successful implementation.