EVALUATION OF FLUCTUATION IN CONSTRUCTION CONTRACTS IN EDO STATE

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ABSTRACT

This research evaluates fluctuation in construction contracts within Benin City, Edo State, Nigeria, fastening on its causes, severity, effects on project delivery, and mitigation strategies. The study provides precious perceptivity into the complex nature of change challenges faced by construction systems and to propose effective strategies for managing these challenges. Four research objectives were formulated; identify the causes of fluctuation in construction contracts, Assess the severity of fluctuation in construction contracts, estimate the impact of change on project delivery, probe techniques and strategies for minimizing fluctuation. The research population consisted of stakeholders involved in construction systems in Benin City. The sample size was determined grounded on the population size, ensuring a representative sample for analysis. Data collection was conducted using a structured questionnaire, and Mean Item Score analysis was employed to dissect the data according to the research objectives. The findings reveal that profitable factors such as material prices, exchange rates, and design changes significantly contribute to contract change. These factors are perceived as largely severe, impacting project costs and timelines. Fluctuation also leads to varying degrees of cost escalation and time overruns, emphasizing the need for robust mitigation strategies. Mitigation strategies similar as price change clauses, contingency plans, and advanced technologies were linked as effective in managing fluctuation. The research concludes that addressing change in construction contracts requires a holistic approach encompassing proactive risk management, contractual measures, and technology application. The findings contribute to a better understanding of fluctuation challenges and give practical recommendations for enhancing project issues in construction systems within Edo State. Keywords: Contracts, Construction, Edo State, Fluctuation, Mitigation strategies.

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