Development of a system model for cost management in low-cost housing projects in Nigeria

Obi, L I (2017) Development of a system model for cost management in low-cost housing projects in Nigeria. PhD thesis, University of Salford, UK.

Abstract

Poor project cost performance is one of the vital issues challenging successful construction project delivery particularly in developing countries such as Nigeria. This issue is endemic particularly in Low-cost housing (LcH) projects with adverse effects on delivery, affordability of the target beneficiaries and housing situations in Nigeria. Past studies highlight the relationship between project cost management systems (CMS) and cost performances. However, extensive studies exploring the CMS for LcH project delivery in Nigeria are rare. Apparently, no contemporary attempts are made to proffer appropriate and well-developed systematic solutions indicating possible continuing trends of poor cost management and performances in LcH project delivery. Given this discovery, this research seeks to develop a cost management system model (CMSM) for LcH project delivery in Nigeria. Empirical investigations explore the concepts of LcH project delivery, project cost management system (CMS) and implementation success factors (IMSF). The research leans towards an interpretivism perspective. It adopts a case study strategy and employs a sequential mixed method procedure for data collection and analysis at different phases of the research. A mix of focus group, semi-structured interviews, and questionnaires facilitated data collection and thematic- content analysis and statistical analysis (percentages, relative agreement index, Kruskal-Wallis, and exploratory factor analysis) for data analysis. Research findings reveal that popular CMS employed by the Project Management Teams (PMT) are incapable of delivering effective LcH project cost performances following three key constraints: difficulty to effectively set target cost, plan and perform real-time project cost monitoring and control, creating rooms for variations and overruns. These limitations were traceable to inappropriate use of cost management techniques, process approach alongside 18 implementation barriers. Integrating Target costing, Earn value analysis, a cost-design-control process approach and consideration of three key IMSF namely effective team qualities, effective information and management actions and stable operational environment were identified measures to improve current CMS efficacy. The research findings were used to develop the CMSM and its operational guide employing three modelling techniques: conventional process modelling, interpretive structural modelling (ISM) and the interpretive ranking process (IRP). These modelling techniques enhanced the design and understanding of the contextual relationships between the techniques, process, and IMSF in the CMS. The IRP and ISM used in this study are novel contributions to construction research, particularly in the area of LcH project cost management. The validation of the CMSM shows its capability to facilitate improved project cost management towards effective cost performances of LcH projects. The CMSM will assist the PMT to set effectively, plan, monitor, and control costs in LcH project delivery in Nigeria.

Item Type: Thesis (Doctoral)
Uncontrolled Keywords: case study; content analysis; cost management; developing countries; factor analysis; focus group; interview; Nigeria; process modelling; project management; statistical analysis; target cost; variations
Index terms: target costing, developing country, interview, exploratory factor analysis, management system, process modelling, data analysis, interpretivism, focus group, project management team, content analysis, strategy, low-cost housing, success factor, project cost, overrun, construction project delivery, value analysis, variation, validation, questionnaire, cost performance, affordability, housing, interpretive structural modelling, case study, mixed method, cost management, statistical analysis, target cost, interpretive ranking process, Nigeria, monitoring, factor analysis, investigation, implementation, modelling, project delivery, key constraint, project management
Subjects: project delivery, health monitoring assessment and metrics, data science, data analysis and analytics, data collection methods, profession, control systems, project controls, statistical analysis, economics, management, professional development, project management theory and practice, contractual condition, design analysis, analytical methods, economic analysis, contractual arrangements, construction type, housing and residential development, financial analysis, decision-making and optimization, accounting and finance, theoretical framing, development economics, Geography
Topics: Information Management, Research Practice, Business Strategy, Cost Management, Construction Technology, Roles and Professions, International Construction, Urban Studies, Design Practice, Site Management, Organizational Design, Time Control, Contract Administration, Engineering Principles, Project Management, Geographical Context, Health and Safety, Procurement
Descriptive scope: 5 PCTEA

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