The Effectiveness of Construction Contingency in Contract Delivery in Nigeria
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Cost and time overruns are attributable to unforeseen events for which risks and uncertainties were not appropriately estimated by adding an arbitrary percentage allowance for changes that experience shows will likely be required. Contingency is a predetermined amount or percentage of the contract held for unpredictable changes and used to cater for events that are unforeseen which threaten the achievement of objective within the defined project scope. The study determines the percentage contingency on the estimated cost of construction and compares contingency sum with the cost of total approved variation (and fluctuation). In order to achieve these objectives, the research sample selected for this study is quantity surveyors in client and consulting organisations. Data of past projects were received from 21 organisations which include information of 99 projects of varying sizes and contract types. Descriptive statistics was used to describe the characteristics of the sample. Standard deviation, coefficient of variation and analysis of variance (ANOVA) were used for exploring relationships among variables and compare groups. The study revealed that construction contingency averaged 5.53% of the estimated contract sum while variation averaged 11.62%, which means 'that contingency sum is less than the total approved variation by an average of 6.09%.
budget , Quantity Surveyor , contingency , percentage , variation
Bello, W.A & Odusanmi, K.T (2012) The Effectiveness of Construction Contingency in Contract Delivery in Nigeria. The Construction and Building Research Conference of the Royal Institution of Chartered Surveyors Held at the University of Cape Town.