Introduction
Common causes of project failure, project abandonment, strained
business relations, and lack of returns on investments include
delays and cost overruns. Many construction projects, including the
“Ajaokuta Steel Complex”, the “Bayelsa Tower
Hotel”, the “Minna Five-star Hotel”, and the
“Rivers Monorail Project”1 have been
ensnared by delays and cost overruns.
Cost Overruns occur when budgeted funds are insufficient to
cover the actual expenditures on construction projects. Delays
encompass obstacles or hurdles that disrupt the estimated timeline
of the project. Some factors contributing to Delays and Cost
Overruns in construction projects include poor contract management,
inflation and market changes, fraudulent practices, design changes,
inaccurate cost estimates, mistakes during construction, changes in
weather conditions or site conditions, mistakes and discrepancies
in contract documents, paucity of funds and materials2 ,
and change of government.
