Construction costs and value management: study of multinational practices in Nigeria

Journal article


Arowosafe, O., Ceranic, Boris and Dean, Angela 2015. Construction costs and value management: study of multinational practices in Nigeria.
AuthorsArowosafe, O., Ceranic, Boris and Dean, Angela
Abstract

The practice of multinational construction corporations (MCC) in Nigeria construction industry has been viewed as a value for money approach through construction cost management. Assessment of the opportunity cost of the initiatives is equally important in order to gauge the progress of millennium development goals (MDGs), set up by the United Nations in 2000 on human development in developing countries. The study is aimed at the evaluation of current infrastructure procurement framework, introducing novel sustainable infrastructure delivery (SID) model as a holistic value management methodology and a decision making technique. Key components of the model are Checkland’s soft system methodology (SSM) and analytic network process (ANP) by Saaty. SID input data is collected from the pilot questionnaire with the professionals in Nigeria’s construction industry, reinforced by a thorough literature review. Questions sought paired comparison judgements on key aspects of project management and implications on sustainable infrastructure procurement. The concept is discussed in the methodology section. Preliminary findings reveal that current practice lacks a holistic decision making technique, reflected in divergent value interests among stakeholders on infrastructure procurement through different views on the constitution of values. Though there is practical evidence regarding the growth in the construction sector, quantification of the implications on local economy and human development are less visible and require further investigations.

KeywordsSoft system methodology; Analytic network process; Sustainable infrastructure delivery model; Nigeria
Year2015
PublisherRoyal Institution of Chartered Surveyors (RICS)
Web address (URL)http://hdl.handle.net/10545/582814
hdl:10545/582814
Publication datesJul 2015
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Deposited27 Nov 2015, 11:48
ContributorsUniversity of Derby
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