Factors influencing direct costs dynamics of building projects - team members perception in Delta state, Nigeria

Abstract

Inaccurate costs forecast of building projects is traceable to variation in direct and indirect costs caused by several factors. This study evaluates the severity of the impact of eighty factors responsible for direct costs  dynamics of building projects in Delta State, Nigeria. The objective is to compare consultants and contractors perception of the severity of the  factors on direct costs differential. A field survey of 85 contractors and 67 consultants was conducted with the aid of structured questionnaires. Data were analysed using mean score, Mann-Whitney U and Kruskal Wallis  tests. The study concludes that consultants and contractors have similar  perception of the effect of the direct cost variation factors (p-values  between 0.365 and 0.930). Construction, resources, and performance  factors are the most significant of the groups (MS range = 3.66 to 4.33), though no significant variation among groups’ importance in the evaluation (p-values = 0.42 and 0.19). The study recommends that clients should  count on consultants and contractors for direct cost advice, provided they accommodate all the direct cost variation groups during cost advice, with priority on the leading factors of each group.

Key words: Building projects, Consultants, Contractors, Cost dynamics, Direct costs.