Gambo, N; Said, I and Ismail, R (2016) Influences of cost factors affecting technical performance of local government projects in Nigeria: A partial least square-structural equation modeling approach. Journal of Construction in Developing Countries, 21(1), pp. 85-111. ISSN 1823-6499
Abstract
The technical performance requirements of projects posed a challenge to the sustainable development of small size local government projects particularly in developing countries. Studies in the past focused mainly on the performance of major foreign construction firms mostly owned and operated by expatriates. Very few researches however, have been conducted to assess the relationship between major cost factors affecting technical performance of small size local government projects. This study is aimed at assessing the relationship between major cost factors that affect technical performance of small size local government projects in Nigeria. Survey instruments were administered to major stakeholders in the construction industry comprising of project clients, contractors and consultants using proportionate stratified random sampling method. A Warp partial least square-structural equation modeling (PLS-SEM) software algorithm was used for the analysis of collected data. The software is one of the powerful software for data analysis and has an advantage of providing p values based on the structure of the research model. The study concluded that cash flow problem, fraudulent practice and nature of construction environment are the major factors affecting technical performance of local government projects in Nigeria and further recommended the use of mediator variables like pay for performance and advance payment policy to minimise such negative effects. Governments in developing countries should devise a good cash flow policy and impose stringent penalties against any party involved in fraudulent activity.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cost; factors; Nigeria; performance; projects; technical |
| Index terms: | construction industry, sampling, Nigeria, cost factor, mediator, partial least square, structural equation modelling, sustainable development, construction firm, survey, developing country, project client, cash flow, local government, data analysis, penalty |
| Subjects: | economics, financial management, development economics, health safety and environment, Geography, sociology, statistical analysis, administrative law, regulatory law, industry analysis, organization, data collection methods, dispute resolution, data analysis and analytics |
| Topics: | Stakeholder Management, Research Practice, Geographical Context, Health and Safety, Business Strategy, Cost Management, International Construction, Legal Issues |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here