Bello W A, O K T (2013) Weak management of the predictability of contingency allowance in construction projects in Nigeria. In: Smith, S D and Ahiaga-Dagbui, D D (eds.) Proceedings of 29th Annual ARCOM Conference, 2-4 September 2013, Reading, UK.
Abstract
Establishing an accurate amount or percentage allowance to cover unpredictable changes in the construction project budget should be a genuine concern of the project team members. Different studies have shown that contingency allowance has neither been adequate nor technically predictable. The study assessed the practice of professionals in the management of contingency and determines the percentage contingency that is predictable on construction projects in Nigeria. In order to achieve the objectives, the sample selected for this study is quantity surveyors in government, institutions and consulting organisations. Data of past projects were collected from 21 organisations and included information of 99 projects of varying sizes and contract type. Analysis of variance, correlation and multiple regression were used to compare groups and for exploring relationships among variables in proposing a model. The proposed model using standard multiple regression predicted 10.10% contingency allowance on consultant's estimate. The study revealed that about 60% of the respondents do not formally manage and report contingency in their organizations alluding to the fact that an intuitive 5% allowance contingency is not only inadequate but also weakens the purpose of contingency allowance.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | contingency; Nigeria; quantity surveyor; regression model; variation |
| Index terms: | multiple-regression, estimate, construction project, quantity surveying, Nigeria, project team, variation, regression model, variance |
| Subjects: | project delivery, production management, financial and cost management, contractual condition, Geography, profession, statistical analysis, measurement and scaling |
| Topics: | Geographical Context, Research Practice, Roles and Professions, Project Management, Contract Administration, Cost Management |
| Descriptive scope: | 3 PCA |
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