PROSPECTS OF CONSTRUCTION COST MANAGEMENT PRACTICES ON CONSTRUCTION FIRMS IN NIGERIA

Abstract

Cost management practices have remained a vital aspect of project management function. Effective cost management improves project performance and the strategic performance of construction firms. This study aim to assess the prospects of construction cost management practices on construction firms in Nigeria The objectives of the study are to identify the prospects of construction cost management practices on construction firms; and to assess the magnitude of the impact of the prospects of construction cost management practices on construction firms; a structured questionnaire was used to elicit data from construction-related professionals. With recourse to 115 valid questionnaires retrieved representing 77% responses rate. Data were analyzed using simple percentile and mean score of 5-point Likert scaled responses. The results revealed that effective cost management play critical benefits in the construction performance of firms; its help to predict future expenses, ensures procurement effectiveness, improve profit maximization, enables the correction of changes that will impact projects outcome, help reduce wastages and expenses, improves operational efficiency need. Project managers should continuously upgrade their skills for effective cost management to boost the construction competitive position of their firms.