Ameh, Oko John and Soyingbe, Aliu Adebayo and Odusami, Koleola Tunwase
(2010)
Significant Factors Causing Cost Overruns In
Telecommunication Projects In Nigeria.
Journal of Construction in Developing Countries , 15 (1).
pp. 49-67.
ISSN 1823-6499
Abstract
Information and Communication Technology (ICT) provides enormous benefits to economic development. However, cost overruns are a worldwide
phenomenon and pose a serious threat to the development of telecommunication infrastructure, which is the platform for ICT. It is imperative to examine the
possible factors that could lead to cost overruns, in order to avert the associated catalytic effects on the development of other sectors of the economy. This
study involves a questionnaire survey of 42 factors that were identified as having the potential to cause cost overruns in 53 telecommunication projects that
are scattered over the six geopolitical zones in Nigeria. The results indicated that construction-related factors top the list of categories that cause cost
overruns in telecommunication projects. The following factors were identified as major causes of cost overruns and are ranked in their order of importance:
the lack of contractor experience on the telecommunication projects, the high cost of imported materials and the fluctuation in the prices of materials that
are necessary for the telecommunication projects. The study recommends that contingency provisions should be put in place to mitigate these factors at the
project conception stage.
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