AN INVESTIGATION INTO THE FACTORS AND IMPACT OF COST OVERRUNS IN NIGERIAN HEALTHCARE PROJECTS

ABUJA AS CASE STUDY

Abstract

In building projects around the world, particularly in developing nations like Nigeria, time and cost overruns continue to be a significant issue. The project planning process accounts for all profit, labour, material, and overhead expenses to determine the overall cost of construction projects. The majority of building projects still experience budget overruns. Research on the primary causes of healthcare-building project overspending is lacking. Therefore, by identifying the specific issues with cost overruns that affect the completion of building healthcare projects, this study aimed to fill the gap in the literature. The purpose of this study is to determine the primary causes of cost overruns in healthcare project construction in Abuja, Nigeria, and to investigate the effects of cost overruns on project delivery. Using a positivist research paradigm, a quantitative methodology was adopted, with data gathered through a structured questionnaire administered to 40 professionals, including engineers, architects, builders, and quantity surveyors. The data gathered was analysed in SPSS and identify design flaws, insufficient project management training, and the use of inappropriate cost estimation software as the primary causes of cost overruns, while corruption was ranked as the least significant factor. The results further revealed the impacts of cost overruns, such as project abandonment, delays, increased healthcare costs, stakeholder dissatisfaction, and reduced return on investment (ROI). The study concludes with recommendations to mitigate cost overruns, including improved design practices, targeted training programs for project managers, and the adoption of advanced cost estimation software. These measures aim to enhance financial and operational efficiency in healthcare construction projects, ensuring timely delivery and sustainable outcomes.