Impact of Project Cost Management on Project Success of Select Construction Firms in Lagos State, Nigeria

Abstract

The researchers evaluated the impact of project cost management on project success of construction firms in Lagos state, Nigeria. Survey research design was adopted for the study. The data were collected using structured questionnaire. The formula developed by Krejcie and Morgan was used to determine 57 project Managers of construction firms registered with Lagos Chamber of Commerce and Industry, while Cochran formula was used to determine 240 clients of the construction firms. The questionnaire was validated using both content and construct validity. Cronbach’s Alpha was used to determine the reliability with ? = (0.88). Correlation and Regression analysis were used for the data analysis. The findings revealed that there was a moderate positive relationship (R = 0.333; p<0.05) (R2 = 0.111) between project cost management and client’s satisfaction. From the findings of the study, it was also revealed that an organisation with effective project cost management will always promote client’s satisfaction. The researchers recommended among others that cost control of a construction project budget from project inception to completion, must be a primary task in which every construction firm should adopt as part of their organisation strategy.