IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 2 NO. 4 2016

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Cost Control Systems and Good Governance: Tools for Effective Project Delivery.

D. O. Mac-Barango (Ph.D)

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Abstract

Achieving effective project delivery dictates that cost which is the most visible performance metric has to be controlled. Lack of accountability, transparency and probity as ingredients of good governance and the prevalence of corruption have considerably affected effective project delivery in Nigeria. This research appraises the influence of cost control systems (mechanisms) and the elements of good governance on effective project delivery. This it was able achieve by drawing from reviews on previous studies, critique on the various cost control process, procedures and mechanisms (approximating estimating techniques, cost analysis and planning, best value practice, due process and cost reporting) as well as the various external pressures which influences cost control outside the brief and designs and the immediate project environment. This is with a view to minimize the cost of projects. Researching findings are suggestive that the lack of elements of good governance (accountability, probity, transparency) and the prevalence of corruption have considerably inhibited the efficacy of cost control systems. The research concludes that the cost control systems cannot be isolated from the general project environment; it is an integral part of the total project management efforts. There are deteriorating arts of good governance as they relate to effective infrastructure delivery. The research recommends as follows: The adoption and application of efficient and effective systems of cost control and management mechanisms. Develop and establish a process of contract award, which integrates oversight certifications, due process as well as the sustenance of the ingredients of good governance. Reinforce and strength the efficiency capability of established governmental anti-corruption agencies.

keywords:

Cost, Good Governance, Cost Control Systems, Best Value Practice, Cost Reports.

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