Abstract:
Contingency sums are used as cost control and risk management tools to take care of some unforeseen and unidentified events that might emerge during construction process. Contingency sums will not produce intended result on project delivery, if not effectively managed. Therefore, project management must establish an effective contingency management process and procedure that defines the terminology, outlines the responsibilities, as well as establishing the process and control requirements to effectively support the successful implementation of contingency management on projects. This research therefore appraised management of contingency sums with a view to improving project management performance in Ekiti State Historical data of selected building projects were obtained. A data collection proforma was employed, the quantity surveying section of department of building, Ekiti State ministry of works was asked to complete the proforma. Interviews were also conducted on clients, consultants and contractors who were involved in the procurement of the projects. Standard deviation, Mean and cumulative frequency were employed to investigate adequacy of contingency sums. Content analysis was used in assessing methods of managing contingency sum; and determining items of works that contingency sums are used for in building projects while result of three objectives were used to develop framework for contingency management. The study revealed that the contingency sum was inadequate by 92.44%, therefore the procedure in use was not producing intended result. Also, contingency sums were used for purposes that clearly deviated from the current definition of ‘appropriate’ uses as found in the existing literature. Contingency expenditures were not formally reported and managed, hence, contingency management practices are not organized by clearly defined procedure. The study therefore recommended that contingency sums should be formally managed and assessed in comparison with cost deviation during construction
