EFFECTS OF OVERHEAD COST OF CIVIL ENGINEERING PROJECTS IN NIGERIA

Purpose: “General items” is an important cost center in civil engineering projects given the complexities of facilitative works and support services that are normally required in such projects. However, extant literature makes little or no difference between preliminaries in building projects and general items in civil engineering projects. This study, which focuses on overhead costs in civil engineering projects, was carried out to: (1) assess the factors affecting overhead cost of civil engineering projects, (2) determine the relationship between the factors and the overhead costs of civil engineering projects and; (3) determine the frequency of use of overhead cost items in civil engineering projects. Design/methodology/approach: Respondents were conveniently selected from civil/structural engineers and quantity surveyors who have participated in civil engineering projects (n=73) in Nigeria. The data were analyzed using percentages, relative importance index, multiple regression and factor analysis. Findings: It was found that the most important factor affecting the overhead cost of civil engineering projects is delayed payment. Based on factor analysis, it was concluded that the factors affecting overhead costs of civil engineering projects are either project or contractor related. These two groups of factors were found to have significant effects on the overhead cost of civil engineering projects. Provisions for water supply, setting out and handover were found to be the predominant general items allowed in civil engineering projects. The possibility of payment delays should be assessed while estimating the cost of general items, and only applicable general items should be priced. Research limitations/implications: Many types of civil engineering projects were considered in this study. Future studies may look at how overhead costs differ for different types of civil engineering projects. Social implication: Delayed payment avoidance by the government will have a positive effect on the overhead and, ultimately, the overall costs of civil engineering projects. Originality/value: This study ascertained the frequency of use of general items in civil engineering projects. It also determined the domains of the variables that affect the overhead cost of civil engineering projects. Most previous studies on construction project overhead costs were based on building projects