An assessment of risk factors impacting cost variability in Nigerian construction projects

Abstract

According to a review of different authors' work, there are numerous risk factors that could impact the final account sums (FAS) of construction projects, causing variations in contract sum (CS). By minimising the variability between the final account sum FAS and CS, a compelling risk study could help resolve this issue. This research is concerned with the variance amidst CS and FAS while assuming that the observed variance is due to risk. The research adopted a convenience sampling technique, non-probability, purposive and definitive. Data was collected through a questionnaire survey from 43 stakeholders that showed interest from the identified 55 experts in the Nigerian construction sector during a conference organised by the Quantity surveyor's registration board of Nigeria (QSRBN). A quantitative investigation identified the critical risk factors that influence the precision of CS. The findings indicated fifteen significant risk causing variance between FAS and CS (cost variability). These check disparities in construction project planned costs during construction and the observed risk factors considered the concern of project advisors. In addition, the study offers practical solutions that suggest creating an effective mitigation plan for the construction sector by using a framework that supports risk management in project delivery. As a result, five highly significant risk variables in traditionally procured construction projects that initiate variance amidst CS and FAS: Poor programme scheduling, other risks, Availability of design information, Fluctuation and Type of client, which will be considered to develop a construction project risk management framework that will encourage sustainability of the Nigerian construction industry.