EVALUATION OF COST PERFORMANCE OF SELECTED HOSPITAL PROJECTS IN EDO AND DELTA STATES, NIGERIA

Abstract

This study was carried out to investigate the level of cost performance of selected tertiary hospital projects in Edo and Delta States, Nigeria. The study evaluated cost performance of tertiary hospitals building projects; identified and assessed factors affecting cost performance of tertiary hospitals building projects; examined the contributions of stakeholders to cost performance of tertiary hospitals building projects; and identified and assessed critical success factors of performance of hospital building projects to cost. The set objectives for the study were achieved through the investigation of 45 completed building projects executed between year 2005 to year 2015 in the selected tertiary hospitals in Edo and Delta States; while the respondents include construction project consultants, contractors and professionals/personnel in the physical planning/ works division such as architects, quantity surveyors, civil engineers, service engineers and builders that were involved in the execution of building projects in the selected tertiary hospitals. Questionnaires, interviews and pro forma were used to elicit information for this research. Data obtained were analysed using, frequency count, percentages, Relative Importance Index (RII), paired sample t-test and cronbach’s α value. Findings showed that: hospital building projects in Edo and Delta States had cost performance of 99.16%.; the hypotheses test conducted revealed that there was no significant difference between initial contract sum and final contract sum of hospital building projects in Edo and Delta States; the results further indicated that cash flow and financial difficulties faced by contractors; and financial difficulties of owner were the significant factors affecting cost performance of hospital building projects; also, contractors’ activities affects cost performance of hospital building projects more than the activities of other stakeholders. Adequacy of funding is the most important Critical Success Factor that can enhance cost performance of tertiary hospital projects in Edo and Delta States. It was recommended that Contractors should not be made to bear the burden of any extra cost for the project, because it erodes the contractor’s profit and morale. Also, Clients should ensure adequate project funding in order to avoid inadequate or negative cash flow as well as financial difficulties faced by contractors during project execution; consultants should provide periodic and timely financial advice in the form of financial statement to their clients in order to minimise the problem of financial difficulties faced by owners’ during the project lifecycle.