Analysis of barriers to the application of life cycle costing in building projects in developing countries: A case of Nigeria

Opawole, A; Babatunde, S O; Kajimo-Shakantu, K and Ateji, O A (2020) Analysis of barriers to the application of life cycle costing in building projects in developing countries: A case of Nigeria. Smart and Sustainable Built Environment, 9(4), pp. 503-521. ISSN 2046-6099

Abstract

Purpose: Life cycle costing (LCC) has become increasingly important in construction projects over the last decades. However, limited empirical studies have been carried out on the factors influencing its application in building projects, particularly in developing countries. The purpose of this study is to address this gap in knowledge within the Nigerian context. Design/methodology/approach: Primary data were used through the administration of questionnaires to practising quantity surveying firms in Lagos State, Nigeria. The data obtained were analysed using both descriptive and inferential statistical tools including percentages, mean item score and factor analysis. Findings: The study identified 47 barriers to the application of LCC, and the analysis of the ranking revealed that 35 (of 47) identified barriers were considered important. Factor analysis grouped the identified barriers into four key factors namely, professional incompetence; cost implications; administrative factor and procurement options. Practical implications: This research is important by providing the empirical evidence on the barriers to the application of LCC in developing countries, particularly in Nigeria. For instance, the identification of important barriers to LCC use will enlighten the construction professionals to be trained in the practicalities of LCC. Moreover, the study provides implications for construction stakeholders (including governments) to draw policy recommendations that will positively improve the use of LCC in the construction industry, especially in developing countries. Originality/value: The study will be beneficial to all the construction stakeholders by broadening their awareness about the barriers to LCC use in Nigeria and developing countries at large.

Item Type: Article
Uncontrolled Keywords: barriers; building projects; developing countries; life cycle costing
Index terms: methodology, construction project, evidence, questionnaire, quantity surveying firm, developing country, construction industry, costing, option, construction professional, Lagos State, empirical study, factor analysis, life cycle, Nigeria
Subjects: decision analysis, industry analysis, statistical analysis, accounting and finance, research methods, Geography, production management, development economics, professional development, profession, data collection methods, evaluation and assessment methods, value management
Topics: Research Practice, Geographical Context, Project Management, Information Management, Cost Management, Risk Management, Roles and Professions, International Construction
Descriptive scope: 4 PCTA

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