Title page………………..i




Table of content……...…v



1.1.    Background of the study

1.2.    Statement of the general problem

1.3.    Aims and objectives of the study

1.4.    Research questions

1.5.    Research hypothesis

1.6.    Significance of the study

1.7.    Scope of the study

1.8.    Limitation of the study

1.9.    Definition of terms



Literature review

2.1 introduction

2.2 cost management and cost control techniques Used in the construction industry

2.2.1 cost value reconciliation

2.2.2 the project budget

2.2.3 cost forecasting

2.2.4 schedule control

2.2.5 earned value analysis

2.2.6 variance analysis

2.3 relationship between construction project Delivery and cost

2.4 factors affecting construction cost and time Performance

2.5 factors causing project cost overruns

2.6 factors causing construction time delays

2.7 empirical literature




3.1 research design

3.2 population of the study

3.3 sampling and sampling technique

3.4 instrument/method of data collection

3.5 validity and reliability of the instrument

3.6 method of data analysis


Presentation and analysis of results

4.1 demographic information of the respondents

4.2 answers to the research questions

4.3 research hypothesis


Summary, conclusion and recommendation

5.1    summary of findings

5.2  Conclusion and recommendation





Project cost controls in the Nigerian construction sector have always been under studied. On the course of prosecuting a project, controlling the cost of these projects would help in maintaining such projects from being too capital intensive which may lead to the project being abandoned. For every project to be successfully executed, its cost must have been analyzed and the cost from start to finish noted so as to prevent unnecessary contingency spendings which may hamper the complete execution of the project. Cost control includes monitoring cost, task completion, and time. If total cost of a project at a given time is over the cost baseline, cost control measures may be necessary. Such project management actions may range from ensuring that only tasks within the scope of the work are being performed to alerting stakeholders of potential cost overruns. As a project manager, it is important, professional, and ethical to identify and report on these issues as soon as they are identified.

Organizations whether private or government owned must complete projects on budget to achieve financial objectives and save cost. Project managers applying cost control techniques effectively can ensure that projects stay within projected budgets or are allowed to exceed budgets in a controlled way for specific reasons. When an organization implements appropriate project cost controls, it reduces risk and receives the full benefits anticipated from project completion.

Controlling costs means meeting a budget that is based on cost estimates. The two components of such estimates are the scope of the work and the cost of each completed task. The project plan details the requirements for the project, which you have to translate into activities. A typical activity requires labor, materials and equipment. Once you have defined the project scope in terms of activities and divided the activity into its cost components, you can calculate cost estimates using costs from historical sources, bids, industry norms and other projects as a base.

Statement of the general problem

The increase in the number of abandoned, uncompleted and under completed projects by individuals, companies and even government has been a cause for serious concern. This high rate of abandonment has inflicted our infrastructural development negatively and may have dissuadedprospective investors from investing in our economy.

Aims and objectives of the study:

The following will be our aims and objectives for undertaking this study

To examine the level of implementation of project cost control in the Nigerian construction industry. To know if adherence to project cost control increases the profitability of Nigerian construction industry. To know if project cost control improves the Nigerian construction industry. To know if project cost control reduces abandonment and under completion of projects.

Significance of the study:

This study will be of great importance to project managers, government, researchers and captains of industries seeing that it would unravel the implications and benefits of ensuring project cost control in the Nigerian construction industry and the economy of Nigeria at large.

Scope of the study:

This study is restricted to project cost control in the Nigerian construction industry with EL-ALAN Construction Company (Nigeria) Limited as its case study.

Limitation of the study:

Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

Research Questions

What is the impact of project cost control on the Nigerian construction industry? Does project cost control enhance the quality of constructions in the Nigerian construction industry? What is the impact of project cost control on the infrastructural development of Nigeria? Is there a relationship between project cost control and economic development in Nigeria?

Research Hypothesis

H0: Effective project cost control does not improve the quality of constructions in the Nigerian construction industry

H1: Effective project cost control does not improve the quality of constructions in the Nigerian construction industry

Definition of terms

Project:A planned piece of work that is designed to find information about something, to produce something new, or to improve something.

Cost:the amount of money that you need in other to buy, make or do something.

Construction:the process or method of building or making something, especially roads, building, bridges etc.


Aibinu, A.A. and Jagboro, G.O. (2002) The Effects of Construction Delays on Projects delivery in the Nigerian Construction Industry. International Journal of Project Management 20, 593 – 599

Asamoah, J. (2002) Satisfying the Energy Hunger in West Africa: A Progress on West Africa Gas Pipeline. African energy, Brooke Patrick Publications, Johannesburg, http//

Buhari I.B. (1991) Inflation and the Nigerian economy.The Nigerian Quantity Surveyor.8-9 4.

Cooke, B. and Williams P. (2003) Construction Planning, Programming and Control, 2nd edition. Palgrave, New York.

Elinwa, U., and Buba, S., (1993): Construction Cost Factors in Nigeria. Journal of Construction Engineering and Management. 119, (4) 698-714.

Eyo - Ita – Eyo, (2001) Nigerian Cement Industry is Pathetic. THISDAY People, Leaders and company limited.

Fisk, E.R. (1997) Construction Project Administration, 5 th Edition. Prentice Hall, New Jersey

Frimpong, Y., Oluwoye, J. and Crawford, L. (2003) Causes of Delays and Cost Overruns in Construction of Ground water Projects in Developing Countries; Ghana as a case study. International journal of project Management 21, 321 – 326

Husseini A.A. (1991) Construction and the National Economy. The Nigerian Quantity Surveyor. 20 – 21

Isiadinso, E.I.; (1988) ‘The needs and Problems of the Building industry in Nigeria – A Quantity Surveyor’s View.Research Institute Seminar, Nigerian Building and Road Research Institute.

Kangari K. (1989): Business failure in Industry. Journal of Construction Engineering and Management. 115 (2) 173 – 187.

Makoju, J. (2000) Challenges of Investing in Nigeria’s Power Sector.THISDAY, THISDAY People, Leaders and Company Limited. http/ /



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