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Factors Influencing Cost of Construction

 

Project Delivery in Rivers State, Nigeria

 

FEATURED PAPER

By Godson Kelechi and Nwogu Prince Chinemerem

Port Harcourt, Nigeria


Abstract

The study examined factors influencing cost of construction project delivery in Rivers Sate, Nigeria. Construction is an important part of the economy and plays a role as indicator to socio-economic advancement when it comes to Nigerian context, thus development. Nonetheless, fixed cost delivery of construction projects is still very high in the Nigeria construction industry with both Public and Private Sector leading by example. The study attempts to pinpoint what these factors are, quantify their effect as a cost driver and suggest ways to mitigate the costs. In a similar vein, the literature review of different authors on this topic was presented at the outset. A descriptive research survey design was employed for this study; therefore, one hundred and fifty-seven (157) questionnaires were distributed scope wise among professionals in public or private construction sectors: sixty (60) to consultants, eighty (80) to contractors, and seventeen (70) to clients. One hundred thirteen (113) usable responses were collected. The research draws data from primary and secondary sources using a standard questionnaire based on five-point Likert scale which was administered to all professionals in construction industry operating across the country. Statistical tools such as SPSS version 25.0 and Microsoft Excel was used to help in data analysis using different methods, including Relative Importance Index (RII) and Mean Item Score (MIS). This implies that the most critical factors contributing to increased cost of construction project delivery in Rivers State Nigeria are lack of data on construction costs followed by bad practices (methods) and improper pricing. Construction project cost is a mission-critical issue; the study advocate that to minimize construction project costs, then quantity surveyors/ purchaser or cost economist should manage these determining characteristics of building projects for uninterrupted progress in addition with estimate including contingencies within an overall likely range and also ready to put measures together on how best way they can address them whenever anyone appears at adverse against specific forecasted end result for any particular given price. Based on the findings, it was therefore recommended that the consultants, contractors and clients without any further delay should apply these strategies for cost reduction in construction project delivery such as optimizing Project Planning effective resource management technology adoption, community engagement, government policies and regulations etc. which will enhance transparency integrity accountability on one hand in corner with value added treatment of public fund at all level. Paying attention to stabilizing the economy by minimizing inflation and currency fluctuations impacting construction costs is paramount for government actions. This would help reduce reliance on imports and overall save cost of materials domestically by supporting local manufacturing. There is need to incentivize the industries that create jobs domestically. Efficient project management practices such as good planning, scheduling and resource management can help mitigate inefficiencies so that costs do not begin to eddy.

Keywords: Construction project delivery, construction industry, cost, consultants, contractors, clients.

  1. Introduction

With respect to construction project delivery, cost entails the primary criterion evaluated when determining the success of the delivery of construction projects (Olukyode et al., 2015). This is because cost acts as the fundamental and driving force throughout the construction phase of a project. The construction sector in Nigeria, particularly in Rivers State, plays a critical role in infrastructural development and economic growth. However, this industry consistently faces numerous problems related to project budget overrun and delivery inefficiencies. Rivers State as a case study, known for its oil-rich economy and complex geographic conditions, presents unique issues to the delivery of construction project, such as difficult terrain, high groundwater levels, and frequent flooding (Ujene & Adewuyi, 2024).  The main Key factors influencing construction project costs in Rivers State include inadequate planning, fluctuations in material prices, poor cost estimation, delays in payment to contractors, and political instability (Okpo, Sylvester, & Offiong, 2023). In addendum, methods of procurement and with respect to vendor selection criteria have been shown to significantly impact both the cost and quality of construction project delivery (Odike, Enyinna, & Osuagwu, 2025a). however, various studies have also highlighted that insufficient adoption of cost optimization strategies contributes to higher delivery costs. Tools, for example life-cycle costing and also target costing are underutilized despite their proven benefits in other regions (Ujene & Adewuyi, 2024). Moreover, the prevalence of traditional procurement methods over electronic procurement methods has been linked to inefficiencies and cost escalation (Odike, Enyinna, & Osuagwu, 2025b).

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How to cite this paper: Kelechi, G., Chinemerem, N. P. (2025). Factors Influencing Cost of Construction Project Delivery in Rivers State, Nigeria; PM World Journal, Vol. XIV, Issue XI, November. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/11/pmwj158-Nov2025-Kelechi-Chinemerem-Factors-Influencing-Construction-Costs-in-Revers-State.pdf


About the Authors


Godson Kelechi, M.Sc

Rivers State University
Port Harcourt, Nigeria

 

Godson Kelechi is an assistant Lecturer at Rivers State University, Port Harcourt and a probationer (member) of the Nigerian Institute of Quantity Surveyors (NIQS). He holds a  Bachelor of  Technology (B.Tech.) in the Department of Quantity Surveying with Second Class Upper Division at Rivers State University, Port Harcourt and Master of Science (M.Sc) in Project Management Technology from Federal University of Technology Owerri, Imo State and currently pursuing his Doctor of Philosophy Degree (Ph.D) in Construction Management at the Department of Building, Federal University of Technology Owerri, Imo State. He hails from Egwi, in Etche Local Government Area of Rivers State, Nigeria. Godson Kelechi can be contacted at godsonkelechi44@gmail.com


Nwogu Prince Chinemerem, M.Sc

Rivers State University
Port Harcourt, Nigeria

 

Nwogu Prince Chinemerem is a staff of Rivers State University, Port Harcourt and a Professional Member of the Nigerian Institute of Quantity Surveyors (NIQS). He holds a Bachelor of Technology (B.Tech.) in Quantity Surveying from the Rivers State University, Port Harcourt and Master of Science (M.Sc) in Project Management Technology from the Federal University of Technology Owerri, Imo State and currently pursuing his Doctor of Philosophy Degree (Ph.D.) in Construction Management at the Department of Building, Federal University of Technology Owerri, Imo State. Nwogu Prince Chinemerem can be contacted at prince.nwogu1@ust.edu.ng