Project – Enhancing cost management practices in public sector construction projects: A Quantity Surveyor’s perspective.

CHAPTER ONE

 INTRODUCTION

1.1 Background to the Study

The construction industry plays a pivotal role in the development of a nation’s infrastructure and economy. In the public sector, construction projects such as roads, bridges, hospitals, and schools are essential to delivering social services and fostering national growth. However, one of the persistent challenges facing public sector construction projects is poor cost management, which often leads to cost overruns, delays, abandoned projects, and poor-quality delivery. Cost management encompasses the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs to ensure the project is completed within the approved budget. Quantity surveyors, as cost management professionals, are critical in implementing effective cost control measures throughout the project lifecycle.

In many developing countries, including Nigeria, the issue of inadequate cost management in public construction projects has been widely reported. Factors such as lack of transparency, poor project planning, political interference, inflation, and corruption have contributed to inefficiencies in managing project costs (Olatunji, 2010; Babatunde et al., 2015). The perspective of quantity surveyors, who are professionally trained to oversee construction economics, is essential in understanding and enhancing current cost management practices in the public sector.

This study seeks to examine and propose ways to enhance cost management practices in public sector construction projects from the perspective of quantity surveyors. It will focus on their roles, challenges faced, and best practices that can be adopted to improve project cost outcomes.

Public sector construction projects are typically financed by taxpayers and are subject to high levels of public scrutiny. Therefore, managing the cost of these projects effectively is not only a professional requirement but also a matter of public accountability. However, several reports by the Nigerian Institute of Quantity Surveyors (NIQS, 2020) and the Bureau of Public Procurement (BPP, 2021) have highlighted frequent occurrences of cost overruns and financial mismanagement in public construction projects.

Quantity surveyors are expected to contribute significantly to reducing these inefficiencies by applying cost control techniques such as feasibility studies, cost planning, value engineering, risk management, procurement advice, and cost auditing (Ashworth & Perera, 2015). Despite this, their professional input is often underutilized or introduced too late in the project cycle, diminishing their effectiveness.

This study investigates how the engagement and practices of quantity surveyors can be optimized to improve the cost management of public sector construction projects in Nigeria.

1.2 Statement of the Problem

Cost overruns have increasingly become the norm rather than the exception in public construction projects in Nigeria. Projects that were initially budgeted for billions of naira often end up demanding significantly more resources before completion, while some are ultimately abandoned due to lack of funds. This persistent trend not only drains national resources but also undermines public trust in government institutions and hampers socio-economic development. The problem is further exacerbated by the fact that many of these projects are essential infrastructure, such as roads, hospitals, and schools, which are critical to national growth and welfare.

The recurring cost overruns are attributable to a variety of interconnected issues. These include inadequate project planning, poor design documentation, weak contract administration, unrealistic cost estimates, corruption, political interference, and the improper selection of procurement methods. According to Akintoye and MacLeod (1997), these factors significantly contribute to the mismanagement of construction costs. Aibinu and Jagboro (2002) similarly argue that these systemic flaws lead to delays, disputes, and inflation of project costs, which could otherwise have been mitigated with proper controls in place.

Quantity surveyors, as professionals trained in construction cost management, are well-positioned to provide solutions to these issues. Their core functions—ranging from cost planning, feasibility analysis, tender evaluation, and value engineering to cost control during construction—are critical to ensuring that projects are delivered within budget and to standard. Unfortunately, in the Nigerian public sector, their expertise is often underutilized or introduced too late in the project lifecycle. In many cases, political appointments, bureaucratic bottlenecks, and disregard for professional input weaken the role of quantity surveyors, thereby limiting their effectiveness.

Furthermore, institutional weaknesses such as lack of enforcement of procurement regulations, poor transparency, and insufficient monitoring frameworks prevent quantity surveyors from operating at full capacity. In some cases, their recommendations are ignored or overridden by non-technical decision-makers, resulting in cost escalations that could have been avoided. These systemic issues not only compromise the quality and timeliness of public infrastructure but also lead to wastage of scarce public funds, thereby increasing the burden on the national budget.

Therefore, there is an urgent need to explore how quantity surveyors can be better integrated into the planning and execution phases of public construction projects. Investigating their current level of involvement, identifying key barriers to effective cost management, and proposing actionable strategies for institutional reform are necessary to address the persistent problem of cost overruns. This study is essential in bridging the gap between theory and practice, and in enhancing the capacity of public institutions to deliver cost-effective and sustainable infrastructure.

1.3 Objectives of the Study

The general objective of this study is to examine how cost management practices in public sector construction projects can be enhanced from a quantity surveyor’s perspective.

The specific objectives are to:

1. Examine current cost management practices in public sector construction projects.
2. Identify the roles played by quantity surveyors in cost management.
3. Investigate the challenges facing quantity surveyors in implementing effective cost management in public projects.
4. Propose strategies for improving cost management practices using insights from quantity surveyors.

1.4 Research Questions

The research questions are buttressed below:

1. What are the prevailing cost management practices in public sector construction projects?
2. What specific roles do quantity surveyors play in managing construction costs?
3. What are the major challenges faced by quantity surveyors in public sector projects?
4. What strategies can be adopted to enhance cost management practices in public construction?

1.5 Research Hypothesis

The hypothetical statement of the study is buttressed below:

H₀: There is no significant relationship between the level of QS involvement and effective cost control.

1.6 Significance of the Study

This study holds significant relevance for policymakers and government agencies involved in public infrastructure planning and delivery. By analyzing the systemic issues that affect cost management in public sector construction projects, the study provides evidence-based recommendations that can inform policy reforms. These may include revising procurement procedures, enforcing compliance with cost control standards, and institutionalizing the involvement of quantity surveyors at all stages of the project lifecycle. Enhanced frameworks for transparency and accountability in project budgeting and implementation will lead to improved public service delivery and efficient use of government resources.

For quantity surveyors and professional bodies such as the Nigerian Institute of Quantity Surveyors (NIQS), the study underscores the importance of their role in ensuring project cost efficiency. It identifies the gaps in current practices and the systemic limitations that hinder their effectiveness in the public sector. By drawing attention to these issues, the study advocates for a more structured and institutionalized inclusion of quantity surveyors in public projects. This not only strengthens the profession’s relevance in national development but also empowers practitioners with a stronger voice in project decision-making and cost control.

Contractors and consultants also stand to benefit from the findings of this research. The study highlights how early engagement with quantity surveyors can reduce conflicts, ensure accurate cost forecasting, and minimize variations during project execution. Understanding the principles and techniques of effective cost management enables construction firms to improve project planning, deliver within budget, and maintain professional credibility. In turn, this enhances their competitiveness and reputation in the industry.

For public institutions and funding agencies, the study emphasizes the value of integrating cost management strategies from the earliest phases of a project. It encourages better coordination among stakeholders, transparency in budgeting processes, and strict adherence to procurement guidelines. These practices contribute to improved project outcomes, ensuring that allocated funds are efficiently utilized. This is particularly crucial in a country like Nigeria, where public sector funding is often stretched across competing development needs.

The academic and research community will also benefit from this study, as it adds to the growing body of knowledge on construction economics, project management, and public sector governance in developing countries. It offers a practical case study on the challenges and opportunities in cost management, especially from the lens of professionals actively engaged in the field. The study can serve as a foundation for future research, especially in exploring comparative cost management frameworks across different sectors and countries.

Ultimately, the study contributes to national economic development and public trust. When cost management in public projects is handled efficiently, the outcome is improved infrastructure delivery, reduced project abandonment, and better value for money. Citizens benefit from timely and high-quality public services, while the government earns greater public confidence and credibility. In essence, the study reinforces the strategic role of quantity surveyors as guardians of public construction expenditure, making it a crucial contribution to the discourse on good governance and sustainable development.

1.7 Scope of the Study

This study focuses on public sector construction projects in Nigeria, particularly those executed within the last ten years. The perspectives of registered quantity surveyors working with government ministries, parastatals, and construction consultancy firms will form the core of the data collection process. The study will explore cost planning, cost control, procurement methods, and post-contract cost management activities.

1.8 Limitations of the Study

The study may be limited by the availability and accessibility of reliable data due to confidentiality in public projects. Additionally, the willingness of quantity surveyors and public officers to share information honestly may affect the quality of data collected. Time and financial constraints may also limit the geographical scope of the study.

1.9 Definition of Key Terms

Cost Management: Cost management refers to the systematic process of planning, estimating, budgeting, financing, funding, managing, and controlling the financial resources required to complete a construction project within the approved budget. It involves a series of coordinated actions, such as cost planning, cost control, value engineering, and cost forecasting, aimed at ensuring that project objectives are achieved without unnecessary financial waste. In public sector construction, effective cost management is vital to avoid overspending and to promote accountability and efficient allocation of limited public funds.

Public Sector Construction Projects: Public sector construction projects are infrastructure developments that are funded, managed, and overseen by government agencies or departments. These projects typically include the construction of public utilities such as roads, bridges, schools, hospitals, and government buildings. Given their reliance on taxpayer funding, these projects are expected to be executed with a high degree of transparency, efficiency, and public accountability. However, they are often subjected to political influences, bureaucratic delays, and financial mismanagement, which makes effective cost control essential.

Quantity Surveyor: A quantity surveyor is a highly trained construction professional whose expertise lies in managing the financial and contractual aspects of construction projects. Their responsibilities include preparing cost estimates, conducting feasibility studies, advising on procurement strategies, managing tendering processes, and monitoring project expenditures. Quantity surveyors ensure that projects are delivered within budget, provide value for money, and adhere to financial regulations. In the public sector, their role is crucial in curbing financial leakages and improving the cost efficiency of government-funded construction initiatives.

Cost Overrun: A cost overrun occurs when the actual expenditure on a project exceeds the original budget or cost estimate. It is one of the most common and problematic issues in construction, especially in public sector projects where oversight and financial discipline may be lacking. Causes of cost overruns include poor project planning, inaccurate cost forecasting, delays in implementation, changes in project scope, inflation, and corruption. Persistent cost overruns result in wasted public funds, stalled projects, and reduced public confidence in government infrastructure programs.

Procurement: Procurement in construction refers to the process by which project owners—particularly public sector clients—acquire construction goods, services, or works from external sources. This process typically involves stages such as tendering, contract award, and supplier management. In public construction, procurement must adhere to strict legal and regulatory frameworks to ensure transparency, competitiveness, and fairness. Choosing the right procurement method is critical to achieving project goals, minimizing risks, and ensuring effective cost and quality control throughout the project lifecycle.

Project – Enhancing cost management practices in public sector construction projects: A Quantity Surveyor’s perspective.