Comparative analysis of cost overrun on road construction projects executed by indigenous and expatriate contractors

Opeoluwa Akinradewo, Douglas Aghimien, Clinton Aigbavboa

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Citation (Scopus)

Abstract

Project implementation arguments on expatriate and indigenous contractors in the Nigerian construction industry are based on their performance on construction projects. Expatriate contractors are engaged more on large-scale construction projects leaving the indigenous contractors to small-scale projects. The Nigerian construction industry is not faced with the challenge to draw foreign contractors but to encourage indigenous participation. This study is aimed at determining the cost performance of road projects executed by expatriate and indigenous contractors with a view at drawing a comparison to know how efficient the two groups of contractors are. The study adopted a qualitative research design approach. This is achieved by observing the subject matter in its natural settings and attempting to interpret the pattern and behaviours of the subject matter. With the use of pro-forma, archival data on road project cost executed in Ekiti state between January 2018 and July 2019 were retrieved from the state Ministry of Works. A total of 61 road projects were completed with 28 constructed by indigenous contractors and 33 constructed by expatriate contractors. The retrieved cost data were analysed using descriptive statistics. From the findings of this study, it was evident that road projects executed by indigenous contractors experience less cost overrun compared to road projects executed by expatriate contractors while indigenous contractors execute fewer road projects. It was therefore recommended that indigenous contractors should be patronised by clients in the construction industry to boost the economy and also improve the employment rate by engaging more local manpower.

Original languageEnglish
Title of host publicationProceedings of the International Conference on Industrial Engineering and Operations Management
PublisherIEOM Society
Pages2925-2931
Number of pages7
EditionMarch
ISBN (Print)9781532359491, 9781532359514, 9781532359521
Publication statusPublished - 2020
Event10th Annual International IEOM Conference, IEOM 2020 - Dubai, United Arab Emirates
Duration: 10 Mar 202012 Mar 2020

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
NumberMarch
Volume0
ISSN (Electronic)2169-8767

Conference

Conference10th Annual International IEOM Conference, IEOM 2020
Country/TerritoryUnited Arab Emirates
CityDubai
Period10/03/2012/03/20

Keywords

  • Cost overrun
  • Expatriate contractors
  • Indigenous contractors
  • Nigeria
  • Road projects

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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