The influence of project team relationships on cost growth

Abstract

Purpose – Using projects executed with both traditional and integrated procurement methods, the study sought to investigate relationships that exist among project participants and the influence of those relationships on cost growth. The paper aims to discuss these issues. Design/methodology/approach – Questionnaires were administered among 274 construction projects located in 12 states including the Federal Capital Territory of Nigeria. Responses were obtained from 96 projects. Data were subjected to both descriptive and inferential analyses. Findings – In terms of cordiality, relationships between client and contractors ranked highest, while those among in-house project teams ranked lowest. Cost growth or cost overrun is significantly correlated with client-contractor relationship, consultant-contractor relationship, client-consultant-contractor relationship and in-house team relationships. No association between procurement method and cost growth was found. Research limitations/implications – The limitation of generalizability of results due to the sampling method used is acknowledged. One implication of the findings is that in the context of this research, any explanation for cost growth has to be found outside procurement methods. Practical implications – Findings may assist project participants on variables to consider in anticipating, preventing or managing cost growth in building construction projects, beyond formularization of contracts and structures. Originality/value – The research has uniquely investigated the association between intangible project team relationships and tangible variable of cost growth.

Project Team Perception of Causes of Building Cost Overruns: A Reflection in Tanzania

“…For a more proactive strategy, conceited efforts should be made by team players to create integral teams [3] and also enhance project team relations. The latter is crucial since empirical studies elsewhere [7] have established a positive association between project team relationships and project cost overrun.…”

“…Standifer et al [6] In support of Dada's [7] A further notion posited is that the project actors should not only work as a team or in unison, but should also think in unison; that a cognitive commonality exists. It is the author's view that to mitigate cost overruns a common perception of factors attributing to cost overruns is essential.…”

“…Cost overrun is a major problem in both developed and developing countries [7,9,15]. Causes of cost overrun in construction projects are varied, where some of them are hard to predict and also difficult to manage [16].…”

Risks associated with the development process of in-house information system projects

“…The objective of the design phase of an IS project is to convert the descriptions of analysis models into logical and physical system specifications. The risks related to the outcome of this phase include system functionality risks, resource usage risks, technology-related risks, and performance risks [18], [32]. In an in-house project, the integration of existing and new technologies leads to increased technology-related risks, such as those related to poor interfaces, system extendibility, and system maintainability [6], [17], as well as actor-related and structure-related risks, such as those related to inappropriate authority, poor coordination, and a lack of experience among staff in using a new technology.…”

“…In the implementation phase of an IS project, the designed system is constructed, installed, and maintained [7], [18]. Risks related to the satisfaction criteria of the project, such as the scheduling and timing risks, personnel management risks, and performance risks, are focuses in this phase [15], [16], [18], [32]. In an in-house project, when staff can effectively acquire sufficient knowledge regarding existing systems, the risk of using old technology can be decreased.…”