1.01 (Background of the study)

According to Luke chapter 14 verses 28-30 which says for which of you intending to build a tower siteth not down first and counteth the cost whether he have sufficient to finish it? Lest haply, after he hath laid the foundation, and is not able to finish it, all that behold it began to mock him.

The above quotation from the Bible summarizes the problem of abandoned project after committing huge financial resources on them are getting out of hand in Nigeria. It is obvious that poor budgetary planning and cost control is responsible for failure of those project as most failures could be traced to poor funding in the project.

According to Iwu Anthonia (2006) Sited that cost control should be exercised at the execution phase as the budget is the financial compass for comparing projected and actual cost of the project in budgeting knowledge of why cost may change from one period to the next is very essential. Cost control should not be achieved without good understanding of source of cost variance. It is expected that within the budgeted project cost, the project be designed to provide at least good value for client’s money in terms of profitability. Efficient cost control measures will ensure that the project team controls the circumstances surrounding the project procurement instead of the circumstances controlling them.


According to ANDAWEI M. (2007) said that construction project’s success especially in Nigeria is mostly circumscribed by time and cost overrun, sub standard work, poor or ineffective pre-contract and post contract planning cost which eventually could lead to project failure. This phenomena pose a big threat to the construction industry. It is factual that, most project are abandoned or failed on the account of especially poor budgeting and cost control, which eventually leads to time and cost control, which eventually leads to time and cost overrun from the outset of the construction project. Consequently, these have marked negative effect both on the economy and the public at large as the construction industry supplies the basic need for shelter, roads and hospitals etc. arising from the inability of the construction clients at both private and public sectors to proceed with the project.

According to KERZNER H (1987) Sited that construction project success is largely attributed to adequate budgeting and cost control techniques in the design and construction process of a construction project. Therefore, to curb these inherent problems proper investigation on the effect of budgetary and cost control on construction projects is highly inevitable.


There is need to operate an efficient and effective budgetary control before any contract is carried out efficient cost, cost control process during the design stage of a project is important in other to ensure that the total cost of a building is within the clients cost limit.(JOHN ALUFOHAI 2002).

RAYMOND KOTEY 1989 sited that budgetary planning and contract auditing are tools, which have great potentials in the fight against corruption in a situation where the budget exceeds the clients cost limit the design has to be modified mostly the finishing’s. These modifications should aim at given him a building that is soundly constructed with good aesthetics and well suited to perform the function for which it is required.

To keep the final account figure within the employer’s budget, it is mostly based on approximate estimated cost prepared by the quantity surveyor in the early stages of the project of the design process.

Having known this, it is obvious that effective cost planning and cost control should be applied through out all stages of design and execution of the project.


The paramount aim of this study is to determine the effects of budgetary and cost control measures on the building or construction projects.

This aim could be realized through the following objective.

1. To identify the various cost control measures or techniques mostly employed in the construction projects.

2. To examine the significance of these techniques on construction project success.

3. To determine the flexibility level. Of budgeting and cost control measures in the construction projects.

4. The determine the reasons these approaches or measures is inevitable for adoption in the successful completion of a construction project.


The overall scope of this study is restricted to construction projects executed or under construction projects that are considered in this content are selected:-

⦁ Tertiary Institution Buildings

⦁ Educational Buildings

⦁ Office Complex Buildings

In the course of carrying out this research work, I have been faced with some limitations of time, finances and lack of relevance materials for this research. I was unable to reach some vital places and people that could have offered immense contribution or information relating to this study.

Also, following the bureaucratic nature of some on going construction project site, which I was able to visit, most of their staff personels were afraid to provide accurate information inquired of them.

Sequel to the above constraints, the extent to which data could have been collected was affected and consequently the scope of the research.


Sequel to the objectives of this study, answers shall be proffered to the following research questions, formulated and carefully handled to enable these research objectives to be achieved.

1. What are the possible budgeting and cost control measures or techniques mostly employed by the quantity surveyor in the construction project?

2. What is the significance of cost control and budgeting in the construction project?

3. What are the factors that affect the budgeting and cost control in the construction projects?

4. What is the level of application of  budgeting and cost control techniques or approaches in the construction projects.


BUDGET:- The forecast and monitoring of  both anticipated income and expenditure of an organization globally.

BUDGETING:- The process of financial control where actual expenditure for a period is compared with appropriate budget allowance for each unit.

COST:- Cost in respect of building work implies amount paid by client for either completed building or for specific section of building.

COST LIMIT:- Maximum expenditure the clients are prepared  to make in relation to completed building.

COST CONTROL:- All method of  controlling cost of  building projects within the limits of predetermined sum throughout the design and construction stages.

PLAN:- A purpose or intending course of  action.

COST PLAN:- A statement of the proposed expenditure on each section or element of a new building related to a definite standard of quality.

COSTCHECK:-The process of checking the estimated cost of each section or element of the building as detailed designs are developed against the cost target set against it in the cost plain.

COST ANALYSIS:- The systematic breakdown of a cost data often on the basis of element to assist estimating the cost and in the cost planning of  future project.

COST MODELING:-This is a symbolic representation of a system expressing the contents of that system in terms of  the factors, which influence its costs.



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