The Effectiveness of Construction Contingency in Contract Delivery in Nigeria
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Date
2012-09-13
Authors
Bello, W.A
Odusanmi, K.T
Journal Title
Journal ISSN
Volume Title
Publisher
RICS COBRA
Abstract
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%.
Description
Conference Paper
Keywords
budget , Quantity Surveyor , contingency , percentage , variation
Citation
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.