Factors Influencing delays and cost overruns on construction projects in Nigeria; propose mitigation strategy

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Okafor, Faith
Issue Date
MBA in Project Management
Dublin Business School
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Delay in the Construction Industry is a global phenomenon, which affects project completion and general performance, with regards to quality, time and cost. Delays are known to result to projects failures, increased cost, loss of productivity and revenue which in turn affects the economy of the Nation. The objective of this research work 1) To evalute the rate and effect of delay and cost overrun in completion of construction projects in Nigeria. 2) To identify the factors that lead to project delays 3) To propose a mitigation strategy for improving and achieving Construction Project based on the outcomes of the study. A questionnaire was distrubuted among two construction companies in Nigeria, targeting the Contractors, Project Managers, Civil Engineers and Architects. The number distributed was 100 out of which only 95 were returned. From this research work, it was gathered that the level of project delay and failures in Nigeria is very high which is majorily influenced by the incompetency and experience level of Contractors, compared to the project assigned to them. Some of the factors that lead to Project delays include, high level of Corruption within the Government and Constrution Industry, Communication Barrirer, Poor Contract Management, Changes in stie condition, Shortage of material and improper planning. Some Mitigation Strategies were proposed; they include High level of stakeholders’ influence, Effective Government Policies and increased Project Management awareness in the Nigeria Construction Industry. The Quantitative Research Method was used to analyze and interpret the research findings. Author's keywords: Project management, Construction challenges, cost overrun effects