Cost Escalation Management In Tertiary Institutions Using Partial Least Squares and Fuzzy Inference System
Abstract
Escalation of costs of projects is an integral part of the construction industry that is a vital sector in any economy. The contribution of the construction industry in the Gross National Product aids development. Cost Escalation generates into projects financial loss to both contractors and owners. It stands as the major challenge facing tertiary institutions. Desiring to solve these management problems in Nigerian Institutions, this paper comparatively assesses the escalation of project costs in Tertiary Institutions in Lafia Metropolis using Partial Least Squares-Structural Equation Modelling (PLS-SEM) and Fuzzy Inference System (FIS). The results show for PLS and FIS respectively, that contractors site management related factors has 97.6% and 67% effect on cost overrun, followed by non-human resource related factors with an effect of 94.4% and 67% on cost overrun. The least was information and communication technology related factors having 75.7% and 65% effect on cost overrun. Both fluctuation in price of materials and inadequate monitoring and control has 67.4% effect on cost overrun while delay in preparation and approval of drawings has an effect of 57% on cost overrun. The findings reveal that PLS-SEM is a model that evaluates a data as a collective entity while the FIS does not.
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