EFFECTS OF DELAY ON COST PERFORMANCE OF ROAD CONSTRUCTION PROJECT: CASE OF NIGER DELTA DEVELOPMENT COMMISSION PROJECTS IN NIGERIA

Purpose: The reduced cost performance of the Niger Delta Development Commission (NDDC) road construction projects was caused by construction delay. It makes it essential to evaluate the effects of road construction delay on cost performance and developed a model for predicting the cost performance of road projects in the Niger Delta region, Nigeria. Design/methodology/approach: Both primary and secondary data were used for the study and were analysed using a descriptive method, multiple regression analysis, and Kruskal Wallis H test for the hypothesis. Secondary data were obtained from initial and final costs and durations of 136 road projects procured between 2008 and 2018. Findings: Based on the 138 copies of questionnaires retrieved involving registered professionals in the six selected States, the results showed that the significant effects of delay on cost performance are: inflation of currency/exchange rates, corruption, total abandonment, under-development, and dispute and claims/bad reputation. However, the test revealed a significant variation between Delta and Cross River States and between Edo and Cross River States. The source of variation might be attributed to frequent patronage of the same contractors and consultants, high rate inflation and fraudulent/corrupt practices in the procurement and execution of the projects. Research limitation/implications: The squared coefficient of correlation (R2) value of the relationship between delay and cost performance is 0.237, revealing that 23.7% of the variation in the cost performance of road projects can be explained by the delay. It explained the percentage of delays in the completion of the road project executed by NDDC. Practical implication: The studied variables that contributed significantly to the effect of delay on the cost performance of road projects procured by NDDC in the study area are nonspecific. Dereliction of such factors can rob both the client and beneficiaries of the economic benefits of such development and may aggravate the recurrent agitations and militancy in the region.Originality/value: The identified challenges by this study and their effects could be reduced through the application of the developed model in the execution of road projects in the region by the professionals and stakeholders employed by the commission. Participants in the construction industry in the region, and the world at large, can as well benefit from the application of the model for road projects with similar attributes, thus improving cost performance of projects delivery.