AN ASSESSMENT OF COST ESCALATION IN BUILDING CONSTRUCTION PROJECT
Keywords:cost escalation, building project, construction, regression analysis
Estimating of cost for building construction projects with minimum error at the conceptual stage of project development is quite essential for planning. This study seeks to evaluate factors responsible for cost escalation of building construction projects. Questionnaires were administered to examine and assess these factors. Subsequently, the mean score value of each factor was determined. In addition, Correlation and Linear regression analyses were used to establish the relationship between these factors. Factors responsible for cost escalation in projects were examined as well as the impact of those factors, and occurrence of those factors on project cost. The result of the analysis showed that, the most agreed factors responsible for project cost escalation were; inadequate supervision, irregular payment, and design error, having high mean values of 4.25, 4.20, and 4.15, respectively. Also, correlation analysis result established that the factors responsible for cost escalation and the impact of cost escalation had significant R and R2 of 0.81 and 0.70 respectively. Addressing these factors would go a long way in reducing the escalation of building project cost. Never the less, an effective cost management strategy is absolutely necessary to safeguard and sustain the construction industry.
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