EFFECTS OF COST OVERRUN ON KEY STAKEHOLDERS OF BUILDING PROJECTS IN EDO STATE

ABSTRACT

This research focuses on the effects of cost overrun on key stakeholders of building projects in Edo State, with a view of examining cost overrun impacts on internal stakeholders peculiarly in Edo State. The objective of the study is to examine the causes of cost overrun of building projects, to evaluate the effects of cost overrun on key stakeholders of building projects and to determine the techniques for minimizing cost overrun of building projects in Edo state. Using descriptive method, data was collected through a structured questionnaire. Two-hundred and thirty four (234) questionnaires were distributed to professionals comprising the Architects, Quantity surveyors, builders and Engineers. Only ninety (90) questionnaires were retrieved from the professionals. The data obtained from the professionals were analysed using the frequency table, the mean item score, standard deviation and the results were ranked from the highest to the lowest. Construction cost underestimation ranked first as the cause of cost overrun of building project in Edo State. As perceived by the professionals, extension of duration of project completionranked first as the effects of cost overrun on key stakeholders of building projects in Edo State. Determine the estimating method and approach ranked first in techniques for minimizing cost overrun of building projects in Edo State. The study concludes that the occurrence of cost overrun in Edo State can be minimized and managed. The study recommends that if the internal stakeholders will define their roles and responsibilities in line with the results discovered in this study and perform actively what is expected of them then the occurrence cost overrun can be reduced in building projects in Edo State.