EFFECT OF COST CONTROL ON PROJECT DELIVERY IN IFE CENTRAL LOCAL GOVERNMENT AREA, OSUN STATE, NIGERIA

Abstract

The increasing incidences of project failure and abandonment in the public and private sectors have been a source of concern to all stakeholders, individuals; the general public as well as the three tiers of government have been deprived of the instant benefits of such projects. Hence, this study was designed to appraise the effect of cost control on project delivery in Ife Central Local Government Area of Osun State, Nigeria. To identify and assess the methods of cost control being used by construction firms on project delivery, identify the main problem faced by construction firms in controlling the costs on site, and examine the relationship between cost control and project management. The building construction firms (private organizations and public) that were located in Ife-Central Local Government Area, Osun State constituted the study population. The data collection was through a structured questionnaire that was administered by the researcher using set of predetermined questions in which out of 60 questionnaires administered, fiftytwo were retrieved and analyzed using statistical tool such as simple percentage, frequency tables and relative index. Findings from the study show that the high risk of poor budget performance is inevitable if control is not applied to project management and that for every project where cost control is applied, it is certain that cost will significantly reduce. 26.7% of respondent used checking on the profitability of project to check on the efficiency of cost control system, 46.7% of total respondent used checking on the efficiency of the project to check on efficiency of cost control system, 20% of respondent used checking on client satisfaction to Check on efficiency of cost control system, 6.6% of respondent use Meeting project deadline to Check on the efficiency of cost control system. Finally, the study recommends cost control to the construction industry to avoid fun run out or cost overrun without project completion.