Effect Of Cost Variance And Schedule Management On The Performance Of Construction Companies In Northcentral Nigeria

Abstract

The continued need for better performance of construction organisations stemming from their excellent analysis of cost variance and schedule management remains integral to their success and the nation's infrastructural development. This study, thus, investigated the impact of cost variance and schedule management on the time and cost performance of construction companies within the Nigerian North-Central region. The specific objectives include determining the impact of cost variance and schedule management on the time performance of construction companies and investigating the impact of cost variance and schedule management on the cost performance of construction companies. One hundred two semi-structured questionnaires were distributed to construction professionals, which was required for this study, and a 100 per cent response rate was achieved. The method of analysis involved descriptive and inferential statistics of regression analysis. The outcome showed a regression model of TPCC = -.012 + 0.605(CVA) + 0.746(SMA) and CPCC = .213 - 0.871(CVA) - .025(SMA) indicating that both CVA and SMA are positive predictors of TPCC and they are both negative predictors of CPCC. This study concluded that cost variance and schedule management significantly impact the time and cost performance of the construction organisations selected for this study, as outlined by their R-Square of .855 and .791 for both TPCC and CPCC, respectively. This study recommended that the factors influencing building costs and time performance must be rigorously evaluated, and local contractors should accurately quantify their effects on projects. This facilitates enhanced construction performance on their projects.