Time and Cost Performance of Fixed Price Building Contracts in Tertiary Institutions in Nigeria

Abstract

This qualitative and quantitative study evaluates the time and cost performance of fixed-price contracts in Tertiary Institutions projects in Plateau State, funded as intervention projects from the Tertiary Education Trust Fund. Literature review gives the background on the types and forms of contracts. Questionnaires, interviews and records from projects are tools that were used in collecting the relevant data. Sixty-two professionals consisting of 12 Architects, 8 Builders, 12 Engineers, 22 Quantity Surveyors and 8 Estate Surveyors randomly selected responded to issues of time and cost challenges. Records were purposively obtained from Twenty-Three projects studied. Regression Analysis was used to predict the time and cost performance. Results show a cost increase of $14, 423.59 for every one-month increase in time. Interviews revealed all 23 projects suffered time overruns with only 5 overrunning in cost. Specifications of 18 projects were found to be changed in order to satisfy the client’s budget objective of the firm price. The research recommends that to enhance time and cost performance, designs must be fully completed before biding. Alternatively, the entire procurement system which favours the fixed price arrangement should be overhauled to accommodate other options.

Keywords

• fixed price
• time
• cost
• performance
• building contract