Assessment of cost management practices of civil engineering (project procurement) organisations in ondo state, Nigeria

Ojo, A; Ogunsina, O and Ogunsemi, D R (2022) Assessment of cost management practices of civil engineering (project procurement) organisations in ondo state, Nigeria. Journal of Financial Management of Property and Construction, 27(1), pp. 57-75. ISSN 1366-4387

Abstract

Purpose: The purpose of the work presented here is to assess the cost management practices of civil engineering organisations in Nigeria, with an overall aim of developing a generic cost management process map. The first objective is to compare existing frameworks theoretically to highlight their strengths and weaknesses. The second objective is to use the findings of the first objective to assess or benchmark the developed process map obtained from the multiple cases. The third objective is to compare the generic process map with the traditional building cost management process map to evaluate the strengths and shortcomings of the generic process map, which resulted in conclusions and recommendations made at the end of the research. Design/methodology/approach: Data for the work was collected via semi-structured interviews, review of literature and official documents of the civil engineering organisations visited. To achieve the stated objectives, comparative analysis technique was used to compare existing frameworks on cost management to obtain the basis to benchmark the generic process map. The single case narrative technique was used to present each case; and the cross-case synthesis technique was used to present the multiple cases on each cost management process examined. Then, process maps were deployed to represent the homogeneous sets of civil engineering organisations, out of which the generic process map was developed. Comparative analysis was again deployed to compare the generic process map with the traditional building process map of cost management practice to evaluate the findings. Findings: It was found out that the generic civil engineering process map is not as detailed and effective as the building process map in providing best value for money, accurate early cost estimates, accurate cost certainty and post-contract cost control. Originality/value: This research study provides an industrial impetus to push for the involvement of more quantity surveyors (QS) as cost management process owners in the procurement of civil engineering projects in Nigeria, hence encouraging government’s efforts in the enforcement of more accurate project cost estimates and promoting the QS’s project-specific advice on capital, operational, maintenance and life cycle costs.

Item Type: Article
Uncontrolled Keywords: civil engineering; construction industry; cost management; cost management practice; process map; project procurement
Index terms: best value, traditional building, enforcement, estimate, construction industry, cost estimate, quantity surveying, Nigeria, cost management, owner, documents, cost control, narrative, methodology, project procurement, building process, maps, interview, life cycle cost, comparative analysis, project cost
Subjects: data collection methods, construction type, profession, bidding, data analysis and analytics, contractual arrangements, financial and cost management, qualitative and interpretive research, Geography, health safety and environment, professional development, spatial and geospatial analysis, research methods, accounting and finance, economics, industry analysis, building construction, sociology
Topics: Stakeholder Management, Roles and Professions, Construction Technology, Procurement, Cost Management, Health and Safety, Research Practice, Geographical Context, Information Management, Site Management
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