Stakeholder Perspectives and Cost Management Strategies for Improving Cost Performance of Construction Projects in Nigeria

Abstract

This study examines stakeholder perspectives and cost management strategies for improving the cost performance of construction projects in Nigeria, with specific focus on Rivers, Imo, and Abia States. The persistent occurrence of cost overruns and poor financial performance in construction projects has become a major concern, largely attributed to ineffective cost management practices and inadequate stakeholder engagement. The study is guided by two objectives, two research questions and two null hypotheses tested at a 0.05 level of significance. A descriptive survey research design was adopted for the study. The study population comprised 799 construction professionals, including quantity surveyors, architects, engineers, builders, and project managers, with a sample size of 422 respondents. A multi stage sampling technique involving stratified and simple random sampling was used to ensure fair representation. Data were collected using a structured questionnaire designed in sections to address the study variables. Face and content validation of the instrument was carried out by experts in construction management and related fields. The reliability of the instrument was determined using the Cronbach Alpha method through a pilot study, yielding an acceptable coefficient above 0.70. The collected data were analyzed using mean and standard deviation, to answer the research questions, and inferential statistics, one way analysis of variance, to test the null hypotheses at a 0.05 level of significance.  Findings revealed that clients often prioritise low-cost bidding over quality. This result shows how the choice of bidding approach stands out as a notable influence on cost outcomes. This study also revealed that payment schedule optimisation is one of the strategies used to improve cost performance of construction projects in Nigeria. The findings contribute to existing knowledge by providing an integrated framework linking stakeholder perspectives and cost management strategies to cost performance, particularly within the context of Rivers, Imo, and Abia States. The study further revealed that there were no significant differences in the views of respondents. Based on the findings, recommends that Clients should balance cost and quality when awarding contracts, rather than focusing only on the lowest bid and also project teams should adopt proper payment scheduling and financial planning to manage project costs effectively.