APPRAISAL OF THE IMPACT OF COST CONTROL MEASURES OF CAPITAL PROJECTS ON THE NIGERIAN ECONOMY

Abstract

This study appraised the impact of cost control measures of capital projects on the Nigerian economy. Cost Control is the process of checking, verifying, regulating and monitoring the cost of a project from inception stage to completion stage within the client’s budget. The increasing economic hardship and the alarming increase cost of capital projects, coupled with the high number of uncompleted capital projects over the years in Nigeria has been a cause of serious concern especially as it has not encouraged savings from government and private investors. The study adopted a descriptive survey design and questionnaires were used for data collection. The data collected were analysed using frequency distribution, and Relative Important Index statistical tool. The findings showed that capital projects costs are not effectively controlled which most time led to cost overrun. Predictive and Preventive measures are the most effective cost control measures of capital project. Furthermore, the study also revealed that the effect of effectively utilization of cost control measures is to gain the maximum profit within the designated period and within budget. The study recommended that, to avoid exceeding budgeted cost, disputes and abandonment of capital project, the contractor should Implement a robust monitoring and reporting systems to track project costs in real-time. Keywords: Cost Control. Capital Projects, Inception Stage, Budgeted Cost, Cost Control Measures.