Effect of Price Fluctuations On Project Performance in Selected Construction Firms in FCT, Nigeria (Published)
This seminar paper critically examines the effect of price fluctuations on project performance in selected construction firms in the Federal Capital Territory (FCT), Nigeria. The study focuses on four major cost components—building materials, labour, plant and equipment, and energy—and evaluates their influence on project delivery outcomes, particularly in terms of cost, time, and quality. A quantitative research design was adopted, with primary data collected through structured questionnaires administered to 150 professionals across selected construction firms. Statistical tools including regression analysis and Analysis of Variance (ANOVA) were employed to test the formulated hypotheses. The findings reveal that price fluctuations significantly affect project performance, with material price volatility emerging as the most critical factor influencing cost overruns and procurement disruptions. Labour cost fluctuations were found to affect productivity and workmanship quality, while energy cost instability significantly increased operational expenses and project delays. The regression model produced a high coefficient of determination (R² = 0.957), indicating that approximately 95.7% of variations in project performance can be explained by fluctuations in construction input costs. The study concludes that price fluctuations constitute a major risk factor in construction project management within Nigeria’s volatile economic environment. It recommends the adoption of robust cost forecasting techniques, flexible contract pricing mechanisms, and improved financial risk management strategies to enhance project performance. The study contributes to existing knowledge by providing empirical evidence within the Nigerian context and offers practical insights for industry stakeholders.
Keywords: Construction industry, Project Performance, cost overrun., price fluctuation