Finalyear

CHAPTER ONE
INTRODUCTION
1.1 Background Of the Study
The idea of cost control analysis become necessary as a result of the ability of companies meeting up with her budget proposal.
Project planning cannot be completed satisfactorily through planning and scheduling only. Project controlling which consists of project monitoring and updating is the other important activity of construction work. Without proper control even a well planned and scheduled construction system can cause problems, delay and cost overrun during their implementation. According to (Susana 2012) cost overrun are considered as one of the most encountered during the execution of construction projects.
As at present, the construction industry is using different cost control techniques, and it is good to have knowledge of the effectiveness of the cost control techniques from the point of view of contractors and how to use those techniques to minimize cost overrun. The control of project cost is an easy task as it requires knowledge on the application of cost controlling techniques.
According to mendelson and Greenfield (2012) the remaining part of twentieth century would involve corporation institution and government in a race to the participant in those sectors (the client in particular ) to tare up the challenge of ensuring efficient use of their resources to obtain good value for money in terms of formance. The total cost of construction in normal circumstances is expected to be the summer of the following cost material labour site overseas, equipment (plant, lead office cost and profit.
But mainly parts of the world, particularly in Nigeria there are other cost to be allowed for these cost according to MbahuandNKado (2014) have obvious negative implication for the key stakeholders in particular and the industry in general. To the client high cost implies added costs and above those initially greed upon at the onset. Resulting in less return on investment to the end user the added cost are raised on as higher rental lease value for money and could tarnish their reputation and results in loss or confidence reposed in their by client. To contractor, it means loss or profit through penalties for non completion and negative world of month that could jeopardize his or her chances of winning further jobs if at fault.
According to Alfrey (2013) describe cost control as a methods controlling the cost of building within a determined value during the design stage.
This involves the preparation of an approximate estimate to which theproject is committed, and the returning of the cost as the design detail developers..
According to Seely (2014) describes cost control as a systematic applicator of cost control criteria to the design process so as to maintain in the first place a sensible and economic relation between cost quality, utility and appearance and in the second place, such overall control of proposed expenditure as circumstances might dutate, the further stressed that cost control doesn’t not merely estimate the tender summer but prove deeper into the cost implication of each building element where each design decision maintain a sensible relationship through the design and construction stages.
According to Numally (2015) describes project cost control as the means of involving the measurement and recording to project cost and progress and a compansion between actual cost and planned performance. The principle objective of project cost controls is to maximize profit while completing he project on time at a satisfactory level of quality. The further stated that proper cost control procedure will results in the accumulating historic cost data in estimating and controlling further project.
According to Conell (2012) the following are the reasons for choosing the assessment of cost control on building project delivery. Building project are subject to public accountability and transparency.
1. Building project are subject to limited budget. There must be a setting out of a cost target that will be opened on the proposed project
2. On building project time frame is part of what is put into consideration when embarking on a project.
3. Building project are seen as a social benefit of all and sundry. The society in general expects somuch in terms of honesty, due process, workability and functionality on parts of the authorities handing it supervising such project.ManfieldUgwu and Doran (2015) for example performed comprehensive analysis of most important factors responsible for project delays and cost overrun management financing and payment of change in site condition of material, subcontraction in accurate estimates delays and additional work as a factor responsible for project and cost overrun.
 
1.2 Statement of the Problem
Construction can beconsidered as a dynamic industry which is constantly facing uncertainties and the many stakeholders in this kind of projects, make the management of cost different which consequently causes cost overruns. The problem of high constraint cost in all aspect of construction is becoming alarming also the substantial increase are being observed in project of all categories.
Furthermore, the control of materials on construction sit is handled carefully by planning and purchasing department as well as site supervisors and engineers of contractors organization. hence, ineffective application of various strategies for controlling material cost on sites.
According to (Susana 2012) by failing to keep an eye on the however, the poor cost performance of construction project is a common problem worldwide resulting in significant amount of cost overrun Aris et al., (2013) the problem with cost control is not actually the cost control techniques that are used. But rather the poor management of those techniques and the laity in supervision. (Omotosho 2014) further stressed that improper control of material in construction site has been posing various problems to contractors in realizing reasonable profit margin the also stressed that the higher the level of improper control ofnmaterials on site and non-compliance of inadequate compliance with the control strategies involved, the higher the loss to the contractors in terms of project making this research work has been mounted therefore to examine how effective implementation of the cost control strategies involved, can go along way in reducing waste construction delay. Dispute, avoiding substandard work and abandonment, so that project can be existed and completed within reasonable time cost the required quality standard thereby ensuring value for money for the client.
1.3 Aim of the Study
The aim of the study is to assess the impact of effective cost control process on construction project delivery in Nigeria. The work will look at which cost project inception and recommended ways for effective cost control of construction project thereby assisting the client and contractors on achieving value for money.
1.4 Objective of the Study
Specific objective of the study are:
1. To identify cost control techniques frequently used by contractors in construction projects.