Causes of delay and cost overruns in Nigerian construction projects

Abstract

The subject of project management in developing countries is addressed, with a focus on Nigeria, one of the largest and most populated countries in Africa. The causes of delay and cost overruns are investigated by examining data relating to construction projects. After a brief introduction to the overall economy, an analysis is given of recently completed highway projects in the country. This points to substantial cost variations relative to the initial contract, and excessive project overruns, for neither of which is there much explanation in status reporting. A brief review then follows of contractual systems and project financing arrangements currently in operation. The results of a questionnaire survey carried out in 1992 with around 50 construction personnel from contractor, consultant and client organisations in Nigeria are then presented. The conclusions suggest that there could be better phasing of contracts, and a wider variety of contracts could be used. Overruns are attributed to finance and payment arrangements, poor contract management, materials shortages, inaccurate estimating, and overall price fluctuations. Recommendations are given on how project management could be improved in developing countries such as Nigeria by appropriate action being taken at both the conceptual and detailed planning stages of projects. Wider action is further called for at both government and international level. © 1994.