Appraising Challenges of Cost Management Practice in Construction Projects of Tertiary Institutions of Kano State Nigeria

Abstract

Cost Management is the controlling measure that can be taken to ensure that contract sums of projects are not<br> exceeded as almost all organizations identify cost management as a goal and a practice. Despite the contractors’<br> ability to pass on project costs to a clients, they remain the immediate victims of the consequences of poor cost<br> management. The aim of the study is to assess the contractors’ challenges of cost management practices in Kano<br> state higher institutions projects. The study adopts descriptive and explorative design approach. Data were collected<br> through administering eighty (80) questionnaire using purposive sampling techniques. Data analysis using<br> percentages mean scores, severity index and ranking as well as spearman rho correlation. The study finds out that,<br> most of the cost management practices were effective whereas the cost code system and by judgement with<br> experience were averagely effective, hence all the practices were mostly used by the contractors in the study area.<br> The severe challenges of cost management were; inaccuracy in cost planning and budgeting, poor cost control of<br> site management. In addition, the effective mitigating measures were; effective budgeting, proper planning,<br> adequate financial forecast, mediation and reconciliation etc. Study therefore concluded that there is strong<br> relationship and agreement between the respondents, also to ensure a successful completion of project within the<br> anticipated budget and within the predetermined standard quality, the study recommends that professionals should<br> consider the implications of each practices as well as the challenges before adopting any of them.<br>