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COST VARIABILITY OF

TELECOMMUNICATION PROJECT
IN NIGERIA
ABSTRACT
Information and Communication Technology (ICT) provides enormous
benefits to economic development. However, cost overruns are a
worldwide phenomenon and pose a serious threat to the development of
telecommunication infrastructure, which is the platform for ICT. It is
imperative to examine the possible factors that could lead to cost overruns,
in order to avert the associated catalytic effects on the development of
other sectors of the economy. This study involves a questionnaire survey
of 42 factors that were identified as having the potential to cause cost
overruns in 53 telecommunication projects that are scattered over the six
geopolitical zones in Nigeria. The results indicated that construction-
related factors top the list of categories that cause cost overruns in
telecommunication projects. The following factors were identified as
major causes of cost overruns and are ranked in their order of importance:
the lack of contractor experience on the telecommunication projects, the
high cost of imported materials and the fluctuation in the prices of
materials that are necessary for the telecommunication projects. The study
recommends that contingency provisions should be put in place to mitigate
these factors at the project conception stage
CHAPTER ONE

1.0 INTRODUCTION
1.1 Background of Project
Since its inception a little over a century ago, Nigeria's telecommunications
system has progressed through various stages of development from the
primitive communications equipment in its colonial days to the enormous
variety of technologies available today. In this chapter, the processes of
Nigeria's telecommunications development and its progress, problems, and
prospects are examined and from its emergence to the expansion and
modernization efforts of the 1990s. The world is fast becoming a global
village and a necessary toll for this process is communication of which
telecommunication is a key player.
During the past years, the Telecommunication Sector has witnessed major
evolutions characterized by a series of consecutive developments such as the
establishment of the General Telecommunication Organization (GTO) which
was privatized in 1999 vide the Royal Decree No: 46/1999 then transformed
into an Omani Joint Stock Company namely the Omani Telecommunication
Company. That initiated the process of privatizing the sector. The Sultanate’s
efforts to enhance this Sector were culminated by issuing the Telecom
Regulatory Law and the creations of the Telecommunication Regulatory
Authority (TRA) vide the Royal Decree No: 30/2002. The Law created the
legal environment for competition in the sector

A project is a temporary endeavor designed to produce a unique product,


service or result with a defined beginning and end (usually time constrained,
and often constained by founding or deliverales) undertaken to meet unique
goals and objectives, Projects are a combination of interrelated activities
which must be executed in a certain order before the entire task is completed
(Gupta, 2000). Projects whether Telecommunication or other types of
projects have the following salient characteristics;
a. A project has identifable beginning and end points; it is an entity by itself.
b. It is not a permanet entity, it is usually a non-repetive task.
c. It can be broken down into identifable activities which require time and
resources for their execution.
d. The objectives are clear and output or end product definite.
e. Execution of project activities and hence completion of the project is
always subject to some uncertainties and risks.
However, Telecommunication projects, like any other project, need special
attention if you want the project to be successful and implemented on a
schedule. One way to proceed on a telecommunication project is to hire a
telecommunication management professional to oversee the project.
Since telecommunication projects can involve things like site selection,
surveys, permitting, and a host of other things that have to be done in a
certain order, project management is vital in ascertaining the variability of
cost in Telecom projects. Then, the question is what is project management?
It is the managing of skill and resources to accomplish a goal. Large
Telecommunication projects often cost much more than planned, some can
put a whole organisation in a jeopardy.
Most of the elements taken into cognizance in Telecommunication projects
include;
1. Other owner contracted work. Depending on the project specifics,
facility managers may award separate controls for temporary
relocations, demolition, abatement, and utility relocations required
prior to the start of the construction.
2. Moving and storage. Moving costs for offices and labs associated with
renovations, new construction and temporary relocations are analysed
as they contribute to cost variability. In rare circumstances, project
budget will include the cost of temporary storage of furniture or
equipment during renovations.
3. Permit fees. Building permit fees and other regulatory fees are included
in the project analyses. The cost of regulatory fees is unknown untill
calculated at the time of issuance.
4. Facilities management operations charges. Facilities management
operation charges include the costs of any time or material spent by the
facilities manager operations shop in conjuction with the project.
These costs range cutting keys, providing access to equipment rooms,
assisting in utility shut downs.
5. Project management fees. Facility assesses a graduated fee to cover
project management expenses and facilites management overhead on
all project management expenses and facility management overhead on
all projects. The fee is determined by the overall project budget size.
Contigency. There is no way that every risk can be fully calculated or
anticipated. A contigency amount is added to a project budget as insurance
policy to cover the two types of risks: accuracy of estimating against the
current market conditions and unforseen conditions or requirements

1.2 Statement of the Research Problem


Findings generally indicates that global system for mobile (GSM)
communication as a telecommunication tool has considerable effects on the
rural economy specifically on drastic reduction of crime rate. It was
concluded that global system for mobile (GSM) is an emerging
communication industry in African with Nigeria rates as one. Of the fastest
growing market in this field of communication but with both positive and
negative effects. One of the negative effects which this report tries to look
upon is the inability of the subcribers to identify exactly the geographic
location of the callers or recievers respectively. So, there is a need to
combating such problem in Nigeria telecommunication industries.
The problems which could cause delay in telecommunication projects in
Nigeria, includes:
1. Cost estimation
2. Over time
3. Abandonement
4. Politics
5. Disputes
Other problems that has neccessitated this research by the researcher include
the following;
 It has been observed that construction-related factors top the list of
categories that cause cost overruns in telecommunication projects. The
following factors were identified as major causes of cost overruns and
are ranked in their order of importance: the lack of contractor
experience on the telecommunication projects, the high cost of
imported materials and the fluctuation in the prices of materials that are
necessary for the telecommunication projects
 Varience between the initial cost estimates and the final costs at the
completion of telecommunication infrastructure projects.
 Individual contribution of the explanatory variables to cost variability
in telecommunication projects
 Hirering of telecommunication management professionals to oversee
the projects.
 Increase in differences in the perception of the three groups (clients,
consultants, and contractors) thats is responsible for the development of
the telecommunication infrastructure.
 Delays in telecommunication projects in Nigeria
 High costs of telecommunication projects.
 considerable negative effects of global system for mobile (GSM)
communication as a telecommunication tool on the rural economy
specifically on fasciltation and modernization of crime rate.
 According to Ndukwe, E.C.A. (2009) the factors that cause cost
variability in ICT project includes Planning and scheduling
deficiencies, deficiencies the prepared cost estimates, inadequate
control procedures, delays in work approval, waiting for information,
mistakes during construction, delays in inspection and testing of work
and cash flow during construction, frequent breakdowns of
construction plant and equipment, shortages of technical personnel,
labour shortage, monthly payment difficulties, poor contract
management, shortage of materials, plant/equipment parts, contractor’s
financial difficulties, low bid, material procurement, imported
materials, late delivery of materials and equipment, escalation of
material prices, slow decision-making, inflation, difficulties in
obtaining construction materials at official current price, ground
problem, bad weather and unexpected geological conditions

1.3 Research Objectives


Generally the aim of this project is to examine cost variability of
telecommunication project in Nigeria.

Specifically, this research work is aimed;

1. To determine if Construction cost and financial factors lead to cost


varience in telecommunication infrastructure projects
2. To determine if economic and environmental factors causes cost
varience in telecommunication infrastructure projects
3. To determine the effect of impact of cost varience in
telecommunication infrastructure projects.

4. on end users need to hire telecommunication management


professionals to oversee the projects.
5. To find out what could cause delay in telecommunication projects in
Nigeria.
6. To examine differences in the perception of the three Organizations
(clients, consultants and contractors) that is responsible for the
development of the Telecommunication infrastructure.

1.4 Research Questions


The following research questions in line with the state objectives of the
research were highlighted to address the stated research problems. These are;

1. Does Construction cost and financial factors lead to cost varience in


telecommunication infrastructure projects?
2. Does economic and environmental factors lead cost varience in
telecommunication infrastructure projects?
3. What is the effect or impact of cost varience in telecommunication
infrastructure projects?
4. What are the remedies for cost varience in telecommunication
infrastructure projects?

1.5 Research Hypotheses


Consequently, the following hypotheses were postulated in their null
forms;
1. There is no association between cost varience in Construction cost
and financial factors and telecommunication infrastructure projects.
2. There is no association between economic and environmental and
telecommunication infrastructure projects
3. There is no association between negative impact and cost varience in
telecommunication infrastructure projects.
4. There are no remedies for cost varience in telecommunication
infrastructure projects.

1.6 The Significance of the Project


The importance of this study can be viewed among various beneficiaries and

actors in the industry.

To future researchers; this study will be of great importance to future

researchers since it would serve as a literature, also owning to the fact that

this research work is the first of its kind.

To the government and the Nation: This study is of great importance

particularly now as the nation battles and struggles terrorism and

insurgency, since the study will highlight the importance of security to the

nation. It is also important as it will reveal the importance of

telecommunication in the nations fight against insecurity.

To the institutional and regulatory organisations/ bodies: regulatory

bodies such as,NCC etc would in no doubt be encouraged by the level

standard project compliance and safety compliance, it will help them in

making new benefiting laws and strengthening of the existing once.


To the policy makers: Policy makers would adopt new policies and

operating laws that would be worked out to support planned growth in the

industry.

To the shareholder: shareholders would be encouraged to invest more in the

safety and security facilities for good return on investment.

To end users: It will fascilitate cost reduction which will invariably adding

value to customers of telecommunication.

1.7 Scope Of The Study


In content, this project is on cost variability of telecommunication project in
Nigeria.

Geographically, this project covers Nigerian telecommunication network


company, MTN Owerri main branch.

1.8 Limitation Of The Study


The following challenges were encountered in the course of undertaking this

study:

 DISTANCE: The challenge of distance encountered in travelling to

MTN stations from School was a constraint to this research work.

 FINANCE: Financial constraints in visiting airports for data

collection and paying logistics for research assistants in data


collection, distribution of questionaire used, printed works,

photocopying etc.

 DATA COLLECTION: The collection and collation of data with

other relevant documents with respect to the research work was not

easy, information were not easy to get as most managers try to cover

up.

 TIME: The time allotted for this research work was too short as the

rearcher was battling with her exams and the research work.

Note that the underlisted limitations did not affect the content of this work
nor render it ionvalid.
CHAPTER TWO

2.0 LITERATURE REVIEW


2.1 Telecommunication General Overview
It is an accepted fact that Nigeria is the fastest growing telecommunications’
market in Africa. Ndukwe (2005) observed massive growth in subscriber
lines, which grew from less than 25,000 analogue mobile lines in the country
in May 2000 to about 12.8 million digital mobile lines between 2000 and
2005.
During the same period, fixed lines also grew from about 450,000 lines to
over 1.2 million lines. By December 2009, it is expected that the active
subscriber to telecommunication services in the country will extend above 80
million lines (Ndukwe, 2009). The Federal Government of Nigeria is aware
of the role that ICT plays in national development and the government is
committed to ensuring that telecommunication and ICT services (both basic
telephony and other essential services, such as internet and broadband) are
extended to the over 120 million citizens of Nigeria. Broadband is an
accelerator of social and economic development in the modern world. Its
applications enable economic and social benefits, which include: public
safety, national security, telemedicine, e-government, distance learning and
utility applications. In an effort to generate an all inclusive information
society, the Federal Government of Nigeria intends to ensure that
telecommunication services are extended to all parts of rural Nigeria.
Telecommunications is both dynamic and capital intensive.
There is an urgent need to examine the causes of cost overruns in the
development of telecommunications infrastructure in Nigeria.
Telecommunications have a catalytic effect on the development of other
sectors of the economy such as agriculture, health, tourism and education.
Moreover, it is necessary for the commercial, industrial, socio-economic and
political development of the country. Therefore, it is essential that
development of the telecommunications infrastructure stays on pace with the
development of the other sectors of the economy.
The current research is concentrated on telecommunication projects in
Nigeria. However, as observed by Morris and Hough (1987), the findings of
this research can be applied to other developing countries that have similar
problems associated with time and cost overruns in their construction and
infrastructural development projects. Developed countries have lessons to
learn from these findings as well since cost and time overruns are a
worldwide phenomenon. The findings can be equally extended to other
infrastructural projects, such as transportation, power, sanitation and
irrigation especially in the construction industry because cost and time
overruns are a worldwide phenomenon (Azhar, N., Farooqui, R.U. and
Ahmed, S.M. 2008).
Telecommunications facilities in Nigeria were first established in 1886 by the
then colonial administration. These were geared towards discharging
administrative functions rather than the provision of socio-economic
development of the country. Between 1960 and 1985 the telecommunications
sector consisted of the Department of Posts and Telecommunications (P&T)
in charge of the internal network and a limited liability company, the Nigeria
External Telecommunications (NET) Limited, responsible for the external
telecommunication services. NET provided the gateway to the outside world.
Telecommunications development during this period was characterized by
serious short-falls between planned targets and their realization, principally
because of poor management, lack of accountability and transparency and
low level of executive capacity.
Nigeria Telecommunications Industrial structure consists of the following
components:
1. Government
2. Ministry of Communications
3. Nigeria Communication Commission
4. Telecommunication Service Providers

1. Government: The role of Government in the telecommunications


sector includes; given overall direction for telecommunications
development, ensuring policy consistency of telecommunications with
other national policies and enacting necessary laws and taking other
measures promptly in support of the National Telecommunications
Policy (NTP).

2. Ministry Formulation: This Ministry formulates broad


telecommunication policy such as proposing policy options and
recommending to Government such measures as legislation, fiscal
incentive etc, monitoring the implementation of government policy in
the industry and establishing policies for promoting universal access to
communications in Nigeria, representing Government on matters
concerning regional and international organizations.

3. Nigeria Communication Commission: Empowered to perform some


certain functions such as;

1. Ensuring that public interest is protected.


2. Licensing of telecommunications operations.
3. Facilitating private sector participation and investment in the
telecommunications sector of the Nigeria economy.
4. Promoting and enforcing a fair competitive environment for all
operators.
4. Telecommunication Service Provider: There is a lot of
Telecommunication Service Provider such as;

1. Cellular Mobile Service Provider (CMSP) permitted to provide


mobile service.
2. Cable Service Provider (CSP) Permitted under relevant NCC
Legislation to provide cable – related services.

2.2 The Past and Present State of Telecommunication


2.2.1 The Past

The development of telecommunications in Nigeria began in 1886 when a


cable connection was established between Lagos and the colonial office in
London. By 1893, government offices in Lagos were provided with telephone
service, which was later extended to Ilorin and Jebba in the hinterland. A
slow but steady process of development in the years that followed led to the
gradual formation of the nucleus of a national telecommunications network.

In 1923, the first commercial trunk telephone service between Itu and Calabar
was established. Between 1946 and 1952, a three-channel line carrier system
was commissioned between Lagos and Ibadan and was later extended to
Oshogbo, Kaduna, Kano, Benin, and Enugu; thus connecting the colonial
office in London with Lagos and the commercial centers in the country with
local authority offices (Creedy, G. 2005).

The main transmission medium during the pre-independence era was


unshielded twisted pair. This evolved later from rural carrier systems on high
gauge lines to line carrier systems of twelve-channel capacity. Small- to
medium-capacity systems employing VHF and UHF radio were introduced
around 1955. The first serious attempt at planning telecommunications
services in the country was the 1955-62 Development Programme. It
provided for the expansion of the trunk using a VHF Multichannel Radio
System on a nationwide basis and a short microwave link between Lagos and
Ibadan (Enshassi, A., Al-Najjar, J. and Kumaraswamy, M. 2009).

In the early days, the primitive coordinate pegboard switching system was
used. This progressed through manual switchboards of different sizes, shapes,
and capacities until stronger exchanges were installed into the national
network at Lagos Island, Ikeja, Ebute Metta, Apapa, and Port Harcourt
between 1955-60 along with 116 manual exchanges. The installation of the
stronger exchanges marked the beginning of automatic telephone switching in
Nigeria. By the time of independence, automatic exchanges were established
at the main centers and a subscriber trunk dialing system (STD) was
introduced between Lagos and Ibadan.

The telegraph service also witnessed a parallel development, from telegraph


delivery by way of manual coordinate pegboard switching to the use of Morse
code for telex switching. By about 1960, a manual telex exchange of sixty
subscriber lines was in service in Lagos. While all the above efforts were
essentially aimed at improving internal telephone services in Nigeria, external
telephone services in the preindependence period were wholly owned by
Cable and Wireless of the United Kingdom, which was a colonial private
company.

2.2.1.1 Post Colonial Era


With the attainment of independence in 1960, Nigeria embarked on a periodic
national development plan. Telecommunications development was featured in
each of these plans, which were usually of five-year duration. It is more
meaningful, however, to discuss the development of Nigeria's
telecommunications since independence--its objectives, achievements, and
features--on a decade-by-decade basis.
2.2.1.2 The 1960s

The focus of attention in this period was the expansion of the network to meet
the needs of the fledging commercial and industrial sector. The specific
objectives included:

installation of additional 60,000 telephone lines to bring the total number of


lines to 90,000 by the end of the decade; expansion of trunk dialing facilities
to link the major urban centers that were then springing up; and

2.2.1.3 Establishment of the Nigerian External Telecommunications


(NET) Limited.

Unfortunately, these objectives could not be completely realized by the end of


the plan period. For example, only about 26,000 lines (just over 40% of the
planned target) could be added to the existing network, partly because of
underfunding and partly because of the disruption caused to the economy by
the Nigerian Civil War (1967-70). Nevertheless, some the decade's major
achievements included the installation of a microwave radio transmission
system to link the cities of Lagos, Ibadan, Enugu, Benin, and Port Harcourt,
all of which are in the southern part of Nigeria's transmission system.
Preparatory work toward the establishment of NET as a limited liability
company started during this period as well.

2.2.2 The Present

Nevertheless, in recent years, attempts were made by the Nigerian authorities


to spread the telecommunications facilities throughout the country, and in the
mid-1990s all the twenty-one state capitals as well as Abuja and many of the
589 local government headquarters were connected to the national network.
The major obstacle hampering the extension of the system was lack of funds
and absence of the engineering infrastructure needed for the development and
production of spares and components (Frame, J.D. 1997)..

Cellular telephony was first introduced in 1992 with the formation of Mobile
Telecommunications Service (MTS). MTS is a joint-venture between Nitel
and Digital telecommunications of Atlanta; in 1994, MTS had a nation-wide
monopoly over cellular service. MTS began with a capacity of 10,000 lines;
and due to the high level of unmet telecommunications demand, the system
was filled to capacity within one year. Subsequently, in February 1994, MTS
added an additional 20,000 lines and had plans to add an additional 25, 000
lines. Even with this additional capacity, it is common to receive a fast busy
signal during peak hours due to network congestion.

Nigeria's cellular market is expected to grow at a rate of 25% annually


through 1997. The major markets are in Lagos (among the young urban elite),
the oil-based communities of Port Harcourt and Warri; and the cities of Kano
and Abuja. In 1992, the market for cellular equipment was US $5 million. In
1993, over half of the cellular equipment was supplied by U.S. companies;
and over half of the equipment purchased was produced by Motorola
(Frimpong, Y., Oluwoye, J. and Crawford, L. 2003).

NITEL, which is fully owned by the Nigerian government, was corporatized


in May 1992, with the ultimate objective being full privatization. The present
system seeks to protect the sovereignty and security of the country by keeping
NITEL under government control while, at the same time, making the
telecommunications service less dependent on the government. The
motivating force behind the decision to corporatize rather than privatize was
the fear that control of the national network might be lost to foreign
companies.
Although the Nigerian government still provides funds for major capital
projects, the conditions of service of telecommunications workers have been
moved out of the civil service structure. The corporatization has also brought
about increases in the c ost of telecommunications services in the country.

The administrative and policy matters of telecommunications remain with the


Ministry of communications, which represents the country at the International
Telecommunication Union (ITU) and other international telecommunications
organizations.

2.3 Cost Variability

Cost variabilty simply implies the change in cost in proportion to the good or
service that a business produces. Cost variability is sometimes called unit
level costs as they vary within number of units produced.

In developing a business plan for a new or existing telecom project , planners


typically make cost estimates in order to assess whether revenues / benefits
will cover costs. This is done in both business and Government.

In general, due to the difficulties and challenges faced in project associated


cost estimation which comes as a result of cost variability, costs are often
underestimated and therefore results in cost overrun during project execution.

2.4 Factors Affecting Cost of Telecommunication Projects

The success rate of telecommunication projects in Nigeria are being


determined and influenced by some factors. These factors includes:

1. Environmental Factors: These are identifiable elements in the


physical, cultural, demographic, economic, political, regulatory, or
technological environment that affects the survival, operations, and
growth of the telecommunication project. These factors includes the
following;
i. Economic stability
ii. Inadequate production of row materials by the country
iii. Government policies (laws and regulation)
iv. Domination of construction industry by foreign firms and
aids
v. Project Location
vi. Absence of construction cost data
vii. Suppliers manipulation
viii. Lack of productivity standard in Nigeria
ix. Level and number of competitors
x. Effect of weather
xi. Social and cultural impacts
xii. Number of construction projects going on at the same time
xiii. Labour nationality

2. Construction Factors: These are factors that have direct impact to


the construction of the project. They include;
i. Lack of contractor experience
ii. Incorrect planning
iii. Poor financial control on site
iv. Disputes on site
v. Lack of coordination between designers and contractors
vi. Relationship between management and labour

3. Construction Item Factors: These are factors that affect the


construction items used in carryingout the project. These factors
includes;
i. Frequent design changes
ii. Fraudulent practices and kickbacks
iii. Additional works
iv. Contract management
v. Inadequate labour availability
vi. Duration of contract period
vii. Contractual procedure

4. Cost Estimating Factors: These are the factors that affect the
evaluation and measurement of prices in the course of the project.
They include;
i. Cost of materials
ii. Flunctuations in the prices of materials
iii. High interest rates charged by banks on loans received by
contractors
iv. High cost of labour
v. High cost of machinery
vi. Wrong method of estimation
vii. High transportation cost
viii. Long period between design and time of tendencing
ix. Waste on site
x. High cost of machinery maintenance
xi. Insurance cost
xii. Bureaucracy in tendencing method

5. Financing Factors: These are factors that affect the funding of


telecommunication projects and they are as follows;
i. Mode of financing, bonds and payments
ii. Inflationary pressure
iii. Currency exchange
2.5 Cost Variability of Telecommunication Projects in Nigeria
Information and Communication Technology (ICT) can provide
tremendous benefits to economic development. However, cost overruns
are a significant threat to the development of telecommunication
infrastructure, which is the platform for ICT development. The global
economic crisis has had a negative impact on the economic fortunes of
most of the developing countries. As a result of this, the
telecommunication infrastructure of these countries, which are capital
intensive in nature, has suffered serious setbacks. These setbacks have
resulted in a multiplier effect on other sectors of the economy, such as
security, education and health care delivery (Jackson, S. 2002).
The results of this study indicate that issues associated with construction
items are the dominant factors that result in cost overruns in
telecommunication projects in Nigeria. The factors under this category
include the following: frequent design changes, fraudulent practices and
kickbacks, additional works, poor contract management, inadequate labour
availability, duration of contract period and contractual procedure.
This study provides insight regarding proactive, measures that could be
instituted to avert cost overruns. This study apply to both the development
of telecommunication infrastructure and other infrastructural projects that
are being undertaken in developing countries. Foreign construction
companies and investors, who intend to do business in developing
countries, will also benefit from this study (Kaliba, C., Muya, M. and
Mumba, K. 2009).
CHAPTER THREE

3.0 RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

This study used a descriptive survey design. The purpose of using descriptive

surveys was to collect detailed and factual information that describes an

existing phenomenon. Data was collected based on the concepts defined in

the research models and hypothesis tested. The study is a descriptive survey

because it adopted the use of questionnaires.

3.2 POPULATION AND SAMPLE SIZE

The population of the study was made up of staff of MTN Owerri,

Shown in the table below;

S/N Staff category NUMBER


1 Sale representatives 17
2 Marketers 15
3 Managers. 5
4 Customer care 3
5 Analysts 5
6 Assistant managers 3
7 Project Supervisors 15
8 Project Managers 7
Other project saff 10
Total 80
Source: Research work 2014
SAMPLE SIZE DETERMINATION

For this research work the confidence level is placed at (0.05) which is 5%

representative probability. The workers from different pyramid made up the

population, since it may be difficult to collect data from the entire population.

The researcher used some basic techniques to determine the sample size.

From the population obtained through the application of the Yaro Yemens

formula shows as follows:

n = N
1+N(e)2
Where:
n = sample size sought
E = error margin
N = population size
E = 0.05
n = 80
1+80(0.05)2

80
1.2
Sample size = 66.666 = 67

3.4 SAMPLE AND SAMPLING TECHNIQUE

The sample of the study consisted of sixty seven staff drawn from each of the

categories of MTN Owerri, Imo state, Nigeria. Sampling was used to select

these staff.
The systematic sampling method is used to select a sample concentrated on

the basis of those who can give better information about this research work.

These includes the project managers and project supervisors and other project

staff. The procedure is to choose a first sample between 1 and 4th position

element from the population. Through this research method, the research

would be able to come out with a study that is of a high degree reliability and

objectivity, more so, through the use of systematic sampling there was no

possibility of personal bias affecting the result.

3.5 VALIDITY AND RELIABILITY OF MEASURING INSTRUMENT

In order to test the validation of the instrument of the study, the researcher

recognized the need to pretest the questionnaire before actually administering

them on the respondents. The rationale behind this work is to ascertain

whether the questions were capable of eliciting the appropriate information or

not.

This is the consistency between independent measurements of the cause

phenomenon. Asika (2007) it is the consistency obtained from the result of

the application of the instrument. Effort was made systematic. The researcher

emphatically behaves respondents were consistent and data collection was

reliable and testable.


3.6 SOURCES/METHOD OF DATA COLLECTION

Two major sources of data were used in gathering information for this

research work.

This includes: * Primary data * Secondary data

Primary Data: The primary source of data from this research work was

obtained from contact with the MTN staff.

Secondary Data: The information relating to the topic under study were

gathered from already documented records like: (textbooks, journal on the

aspect of performance of the study).

3.7 INSTRUMENT

Questionnaire was the major instrument for data collection; a two section

questionnaire was administered,

Data preparation and scoring: A key was developed by which all the items

on the questionnaire were scored. The items were sorted out and respondents

grouped according to the variable that was designed to be measured. For the

purpose of scoring, strongly agree (SA) Agree (A), Disagree (D), and

strongly disagree (SD) were scored 4, 3, 2 and 1

3.6 METHOD OF DATA ANALYSIS

The hypotheses used in the study are stated, and analyzed with appropriate

statistical procedure for the purpose of verification and generalization of


findings. The hypotheses were tested at 0.05 alpha level of significance using

Chi-Squiare (X2) and Pearson Product Moment Correlation (PPMC)

Decision rule

At 5% level of significance, reject null hypotheses for test with probability

estimate lower than 5% (0.05) and conclude that they are statistically

significant. Otherwise, we accept 0.05 (when probability estimates are above

and conclude that there is no overall statistically significance).

RULES IN HYPOTHESIS TESTING: The steps involved in hypothesis

testing for the present study followed closely the guidelines given by

Olatunji, J. O. of Igbokwe, U. O (2007: 97) which assumed that:

Step 1: Determine the sample of the population.

Step II: State the null hypothesis (HO) and its alternative (HA)

Step III: Determine and fix the alpha level of significance for the present

study, alpha level is fixed at 0.05 (P<0.05)

Step IV: Established degree of freedom (d.f) for single distribution d.f=n-

1 and for two distributions; d.f=n-2

Step V: Compute the statistical procedure for the analysis of the data.

Step VI: Compare the calculated value of the test-statistics, with the

critical tabulated value


Step VII: Making decisions /inference.

Cal > tabulated value = Reject HO

Cal < tabulated/Critical value = Accept HO.

Table: Computation of Pear’s product moment correlation coefficient


CHAPTER FOUR

4.0 PRESENTATION AND INTERPRETATION OF RESULT

Of the 67 questionnaires distributed to Mobile Telecommunication Network

(MTN) Owerrri, a total of 67 completed and usable questionnaires

representing a response rate of about 100% are returned.

4.1 Analysis of Questions Raised in the Questionaire

Table 4.1: Does Construction cost and financial factors lead to cost varience
in telecommunication infrastructure projects?

Items/Variables Responses

S/N SA A D SD Total
Construction related factors such as
1. 22 25 10 10 67
Lack of contractor experience,
Incorrect planning, Poor financial
control on site, Disputes on site and
Inadequate labour availability leads to
cost variance in Telecommunication
projects.

Lack of coordination between


2. designers and contractors and also 24 20 13 10 67
Relationship between management
and labour

Finance-related factors affects are


3. causes of cost variance in 26 18 10 13 67
Telecommunication projects
Construction Item Factors such as
4. Frequent design changes and 28 25 8 6 67
Fraudulent practices and kickbacks
and
Inadequate labour availability causes
cost variance in Telecommunication
projects.
Cost Estimating Factors such as
5. Cost of materials and 20 29 10 8 67
Fluctuations in the prices of materials
causes cost variance in
Telecommunication projects.

Overall 120 117 51 47 335

Source: Data collected from Research Question I, (Items 1-5) Author’s field

work .

Result of the findings.

Questionnaire items 1, 2, 3, 4 and 5 were used to address research question

one. The responses to research question one is shown in table above. The

study showed 120 respondents from item 1 to 5 stated stongly Agree, 117

stated Agreed while 51 said Disagreed and 47 Strongly Disagreed.

This is evident from the results which indication that majority of the

respondent’s staff of the various firms almost Agreed on all the items.
Table 4.2: Does economic and environmental factors lead cost varience in

telecommunication infrastructure projects?

S/N Items Responses


o

SA A D SD Total
economic stability such as insecurity,
6. monetary policies and inflationary trends as 18 20 19 10 67
well as High interest rates, which are charged
by banks, on the loans that are received by
contractors casuses cost variability in ICT
projects

Government policies (laws and regulations


7. 20 25 11 11 67
Domination of construction industry by
8. foreign firms and aids, 21 24 12 10 67
Number of competitors and Project location
Number of construction projects going on at
9. the same time and 22 23 10 12 67
Labour nationality

Inadequate production of raw materials by the


10. country and 15 16 18 18 67
Lack of productivity standard in Nigeria

Overall Total 96 108 70 61 335

Source: Data for Research Question 2: Authors’ Fieldwork Survey.

Result of the findings


1. It is found that for the items 6,7,8,9, received positive confirmations or

majority acceptance.

2. It is found that item 10 received a majority rejection or majority

negative confirmation.

3. On the overall totals, out of aggregate responses of 335, an aggregate

of 204 accepted all the items 6 to 10.

4. On the aggregate responses to all the items, 6-10, an overall 131

responses rejected all the items.

The research question two tries to find out the relationship between economic

and environmental factors and cost varience in telecommunication

infrastructure projects. Questionnaire items number 6, 7, 8, 9and 10 were

used to analyze research question two. The respondents were of the view that

economic and environmental factors lead to cost varience in

telecommunication infrastructure projects.

Table 4.3: What is the effect of impact of cost varience in telecommunication


infrastructure projects?
S/ Items Responses
No

SA A D SD Total

11 Reduction in the rate globalization force since 15 16 18 18 67


ICT is the sole driving force of globalisation.

Distortion and inefficiency in communication


12 since telecommunication infrastructure is the 22 23 10 12 67
platform on which ICT networks and services
are based

Higher tariffs to customers or end users


13 18 20 19 10 67

Abandoned projects constituting harzards to


14 the economy 20 25 11 11 67

Poor and low market for ICT


15. 21 24 12 10 67

Overall Total 96 108 70 61 335

Source: Data for Research Question 3: Authors’ Fieldwork Survey.

From the table above, it contains data collected on items 11 to 15.


Result of the findings

1. It is found that for the items 12,13,14,15 received positive

confirmations or majority acceptance.

2. It is found that item 11 received a majority rejection or majority

negative confirmation.

3. On the overall totals, out of aggregate responses of 335, an aggregate

of 204 accepted all the items 11 to 15.

4. On the aggregate responses to all the items, 11-15, an overall 131

responses rejected all the items.


Table 4.4: What are the remedies for cost varience in telecommunication

infrastructure projects?

Items/Variables Responses

S/N SA A D SD Total

Enagement of professionals in ICT


16 projects 22 25 10 10 67

Since most of the materials used for


17 construction are imported and 24 20 13 10 67
considering the declining values of the
currencies of developing countries
against major currencies like the US
Dollar, extra care should be taken
during the cost estimating stage. In
addition, adequate arrangements
should be made for transportation
logistics.

Permission from law enforcement


18 agencies should be sought in advance 26 18 10 13 67
to beef up on site security.

The issue of corruption is a


19. predominant factor that affects most 20 29 10 8 67
developing countries. It is important
that the contractor make his stand on
corruption known from the inception
of the project

Favourable government policies


20. 28 25 8 6 67

Overall 120 117 51 47 335


Source: Data collected from Research Question 4, (Items 16-20) Author’s

field work .

The data on tables 4 show the variation of view points by respondents on

remedies for cost varience in telecommunication infrastructure projects.

From the table above, it contains data collected on items 11 to 15.

Result of the findings

1. It is found that for the items 16,17,18,19 and 20 received positive

confirmations or majority acceptance.

2. On the overall totals, out of aggregate responses of 335, an aggregate

of 237 all the items 16 to 20.

3. On the aggregate responses to all the items, 16-20, an overall 98

responses rejected all the items.


4.2 Test of Hypotheses

The following null hypothesis guided the study

1. There is no association between cost varience in Construction cost and

financial factors and telecommunication infrastructure projects.

2. There is no association between economic and environmental and

telecommunication infrastructure projects.

3. There is no association between negative impact and cost varience in

telecommunication infrastructure projects.

4. There are no remedies for cost varience in telecommunication

infrastructure projects.

Hypothesis - by- Hypothesis testing

The null hypothesis formulated to give generalization of the finding were

tested based at the alpha level of 0.05 (P<0.05). There are two sets of

hypotheses used in the study namely:

1. Null Hypothesis (HO) and

2. Alternative hypothesis (HA)

The null hypothesis (HO) if rejected, leads to the acceptance of its alternative

(HA). Both the hypothesis and its alternative are directional hypothesis,

formulated in order to predict the direction of relationship or differences

below variables as in the area of:


HO1 : M1 > M2 (M1 is greater than M2)

M1 < M2 (M1 is less than M2)

RULES IN HYPOTHESIS TESTING

The steps involved in hypothesis testing for the present study followed

closely the guidelines given by Olatunji, J. O. of Igbokwe, U. O (2007: 97)

which assumed that:

Step 1: Determine the sample of the population.

Step II: State the null hypothesis (HO) and its alternative (HA)

Step III: Determine and fix the alpha level of significance for the present

study, alpha level is fixed at 0.05 (P<0.05)

Step IV: Established degree of freedom (d.f) for single distribution d.f=n-

1 and for two distributions; d.f=n-2

Step V: Compute the statistical procedure for the analysis of the data.

Step VI: Compare the calculated value of the test-statistics, with the

critical tabulated value

Step VII: Making decisions /inference.

Cal > tabulated value = Reject HO

Cal < tabulated/Critical value = Accept HO.


Research Hypothesis 1.

There is no association between cost varience in Construction

cost and financial factors and telecommunication infrastructure projects.

Table 4.5: Computation of Pear’s product moment correlation coefficient.

Responses Scale (x) Aggregate X2 Y2 Xy


Preferences
(y)

Strongly Agree SD = 4 120 16 14400 480

Agree (A) = 3 117 9 13689 351

Disagree (D) = 2 51 4 2601 102

Strongly Disagree (SD) 47 1 2209 47


=1

∑x = 10 ∑y = 335 ∑x2 = ∑Y2=32899 ∑xy=980


30

Source: Adopted from table 1, Research Question 1

Computation formula

 = N∑xy - (∑x)( ∑Y)

[n∑x2 – (∑x)2] [n∑y2-(∑y)2]

Where r = Pearson Product moment correlation

n = Sample size
∑ = sum of

X = Scores on variable I

Y = Scores on variable 2

By substituting the data on taste 7 above, we obtain as follows:

4 (980 – (10)(335)

r = 4(30-(10)2] [4(32899 – (335)2]

r = 3920 – 3350

(120 – 100) (131596 -112225)

r = 570

(20)(19371) =r = 570

387420

r = 570

622.43 = r = 0.9

 r = +0.9

Interpretation

The degree of association between cost varience in Construction cost,

financial factors and telecommunication infrastructure projects is + 0.9

indicating that a very strong but positive relationship exists between cost

varience in Construction cost and financial factors and telecommunication

infrastructure projects. This implies that, as Construction cost and financial


factors rises, there is the likelihood of increase in telecommunication

infrastructure projects.

Computation Formula

t = r n-2

1-r2

Where :

t = t - test Pearson r

r = correlation Coefficient

n = number of sample

r2 = Correlation Coefficient squared

Given that

r = +0.9

n = 4

r2 = 0.81

Applying the formular above, we get:

t = r n -2 = +0.9 4 - 2

1 - r2 1 - 0.81

t = 0.9 2

0.19

t = 0.9 10.53

 t = 0.9 x 3.2 = 2.88

tcal = 2.88
Degree of freedom

The formula is given as

d.f = n –1

d.f = 4 -1

 d.f = 3

Comparison of Result

Given that: alpha level of significance = P≤0.05 and degree of freedom d.f =

3, we proceed to Pearson (r) statistical distribution at 3.d.f under 0.05 alpha

level, the Pearson r. critical is 0.878.

Decision /Conclusion

r.cal = 2.88 > r. critical =0.878

therefore reject the null hypothesis (HO1) in preference and conclude that

there is association between cost varience in construction cost and financial

factors and telecommunication infrastructure projects,

Hypothesis 2

There is no association between economic and environmental factors and cost

variability in telecommunication infrastructure projects.


Table 4.6: Computation of Pearson Product Moment Correlation Coefficient

(PMCC)

S/No. Responses Aggregate X2 Y2 Xy


Scale (x) Response
(Y)

1. Strongly 96 16 9216 384


Agree 4

2. Agree 3 108 9 11664 324

3. Disagree 2 70 4 4900 140

4. Strongly 61 1 3721 61
Disagree 1

N.B ∑X = 10 ∑Y =335 ∑X2 =30 ∑Y2 ∑XY =


=29501 909

SOURCE: Data adopted from table 2 for research question 2.

Computational Formular

r = n∑xy – (∑x)( ∑Y)

[∑x2 – (∑x)2][n∑y2-(∑y)2]

Where:

r = Pearson Product Moment Correlation

n = Sample Size

∑ = Sum of
X = Scores on variables 1

Y = Scores on variable 2

Given that:

n = 4

∑X2 = 10

∑Y2 = 335

∑XY = 909

By distributing data on table above, we obtain as follows:

r = 4(909) –(10)(335)

[4(30-(10)2][4(29501-(335-)2]

r = (3636) – (3350)

[120-10][11004-112225]

r = 386

[20][5779] = r 386

115580

r = 386 = + 1.0

339.97

Interpretation

The correlation coefficient is + 1.0 indicating a perfect positive association

between between economic and environmental factors and

telecommunication infrastructure projects, this implies that as economic and


environmental factors increases, it increases cost variability in

telecommunication infrastructure projects

Computation of Pearson t-test dependent cr – calculated)

Computational formular t = r n-2

1-r2

Where:

t = t – test Pearson (r)

r = Correlation Coefficient

n = Number of sample

r2 = Correlation Coefficient squared.

Applying the formula above, we get:

t = n-2 = + 1.0 4-2

1-r2 1-1.0

t = 1.0 2

t.cal = 1.0x0.0

t – cal = 0.00

Degree of freedom (d.f)

d.f = n-2

d.f = 4 -2

d = 2

Comparison of Result
Given that: t.cal = 0.00

alpha = P≤0.05

degree of freedom = 2d.f:

We proceed to Pearson (r) Statistical distribution at 2d.f under 0.05 alpha

level, the Pearson (r) critical = 0.950

Decision /Conclusion

The r=cal = 0.000 < r.critical= 0.950

We do not reject the null hypothesis (HO2. This implies that there is no

significant relationship between economic and environmental factors and cost

variability in telecommunication infrastructure projects.

Hypothesis 3

There is no association between negative impact and cost varience in

telecommunication infrastructure projects


TABLE 4. 7: Computation of Pear’s product moment correlation coefficient:

Research Hypothesis I

Responses Scale (x) Aggregate X2 Y2 Xy


Preferences
(y)

Strongly Agree SD = 4 120 16 14400 480

Agree (A) = 3 117 9 13689 351

Disagree (D) = 2 51 4 2601 102

Strongly Disagree (SD) 47 1 2209 47


=1

∑x = 10 ∑y = 335 ∑x2 = ∑Y2=32899 ∑xy=980


30

Source: Adopted from table 4, Research Question 4

Computation formula

 = N∑xy - (∑x)( ∑Y)

[n∑x2 – (∑x)2] [n∑y2-(∑y)2]

Where r = Pearson Product moment correlation

n = Sample size

∑ = sum of

X = Scores on variable I

Y = Scores on variable 2
By substituting the data, we obtain as follows:

4 (980 – (10)(335)

r = 4(30-(10)2] [4(32899 – (335)2]

r = 3920 – 3350

(120 – 100) (131596 -112225)

r = 570

(20)(19371) =r = 570

387420

r = 570

622.43 = r = 0.9

 r = +0.9

Interpretation

The degree of association between negative impact and cost varience in

telecommunication infrastructure projects is + 0.9 indicating that a very

strong but positive relationship exists between no negative impact and cost

varience in telecommunication infrastructure projects. This implies that, as

negative impact, there is the likelihood of increase in cost varience in

telecommunication infrastructure projects

Computation Formula

t = r n-2

1-r2

Where :

t = t - test Pearson r
r = correlation Coefficient

n = number of sample

r2 = Correlation Coefficient squared

Given that

r = +0.9

n = 4

r2 = 0.81

Applying the formular above, we get :

t = r n -2 = +0.9 4 - 2

1 - r2 1 - 0.81

t = 0.9 2

0.19

t = 0.9 10.53

 t 0.9 x 3.2 = 2.88

tcal = 2.88

Degree of freedom

The formula is given as

d.f = n –1

d.f = 4 -1

 d.f = 3
Comparison of Result

Given that: alpha level of significance = P≤0.05 and degree of freedom d.f =

3, we proceed to Pearson (r) statistical distribution at 3.d.f under 0.05 alpha

level, the Pearson r. critical is 0.878

Decision /Conclusion

r.cal = 2.88 > r. critical =0.878

We therefore reject the null hypothesis (HO1), hence the researcher concludes
that there is association between negative impact and cost varience in
telecommunication infrastructure projects

Research Hypothesis 4.
There are no remedies for cost varience in telecommunication infrastructure
projects.

Responses Scale (x) Aggregate X2 Y2 Xy


Preferences
(y)

Strongly Agree SD = 4 120 16 14400 480

Agree (A) = 3 117 9 13689 351

Disagree (D) = 2 51 4 2601 102

Strongly Disagree (SD) 47 1 2209 47


=1

∑x = 10 ∑y = 335 ∑x2 = ∑Y2=32899 ∑xy=980


30
Source: Adopted from table 1, Research Question 1

Computation formula

 = N∑xy - (∑x)( ∑Y)

[n∑x2 – (∑x)2] [n∑y2-(∑y)2]

Where r = Pearson Product moment correlation

n = Sample size

∑ = sum of

X = Scores on variable I

Y = Scores on variable 2

By substituting the data on taste 7 above, we obtain as follows:

4 (980 – (10)(335)

r = 4(30-(10)2] [4(32899 – (335)2]

r = 3920 – 3350

(120 – 100) (131596 -112225)

r = 570

(20)(19371) =r = 570

387420

r = 570

622.43 = r = 0.9

 r = +0.9
Interpretation

The degree of association between the remedies for cost varience and

telecommunication infrastructure projects s + 0.9 indicating that a very strong

but positive relationship exists between remedies for cost varience and

telecommunication infrastructure projects.

Computation Formula

t = r n-2

1-r2

Where :

t = t - test Pearson r

r = correlation Coefficient

n = number of sample

r2 = Correlation Coefficient squared

Given that

r = +0.9

n = 4

r2 = 0.81

Applying the formular above, we get:

t = r n -2 = +0.9 4 - 2

1 - r2 1 - 0.81

t = 0.9 2

0.19
t = 0.9 10.53

 t = 0.9 x 3.2 = 2.88

tcal = 2.88

Degree of freedom

The formula is given as

d.f = n –1

d.f = 4 -1

 d.f = 3

Comparison of Result

Given that: alpha level of significance = P≤0.05 and degree of freedom d.f =

3, we proceed to Pearson (r) statistical distribution at 3.d.f under 0.05 alpha

level, the Pearson r. critical is 0.878.

Decision /Conclusion

r.cal = 2.88 > r. critical =0.878

The researcher therefore reject the null hypothesis (HO1), and conclude that

there are remedies for cost varience in telecommunication infrastructure

projects .
CHAPTER FIVE

5.0 SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

5.1 SUMMARY OF FINDINGS

In summary, this study has been carried out to dtermine cost variability of
telecommunication project in Nigeria. The following findings were revealed;
there is an association between cost varience in construction cost and
financial factors and telecommunication infrastructure projects, also there is
no significant relationship between economic and environmental factors and
cost variability in telecommunication infrastructure projects. The study also
found that there is association between negative impact and cost varience in
telecommunication infrastructure projects. The results further indicate that
that there are remedies for cost varience in telecommunication infrastructure
projects .

5.2 CONCLUSIONS

Information and communication technology can provide tremendous benefits

to economic development. However, cost variability is a significant threat to

the development of telecommunication infrastructure, which is the platform

for ICT development. The global economic crisis has had a negative impact

on the economic fortunes of most of the developing countries. As a result of

this, the telecommunication infrastructure of these countries, which are

capital intensive in nature, has suffered serious setbacks. These setbacks have
resulted in a multiplier effect on other sectors of the economy, such as

security, education and health care delivery.

The results of this study indicate that issues associated with construction

items are the dominant factors that result in cost varability in

telecommunication projects in Nigeria. The factors under this category

include the following: frequent design changes, fraudulent practices and

kickbacks, additional works, poor contract management, inadequate labour

availability, duration of contract period and contractual procedure. The

prevailing causes of cost overruns were ranked in order of importance. Our

results indicate that the prevailing causes of cost overruns include the

following: cost varability associated with the lack of contractor experience in

telecommunication projects; and that are associated with the high cost of

imported materials; overruns that are associated with fluctuations in material

prices; variability that are associated with frequent design changes due to

inadequate site and environmental information and those that are associated

with the mode of financing, bonds and payments.

5.3 RECOMMENDATIONS

The following recommendations were given at the end of this reserch work

1. In order to eliminate additional costs associated with design changes

and additional works, it is important that careful consideration be

given to issues in the preliminary stages, such as site and


environmental conditions, design specifications, methods of

construction and the availability of labour.

2. Since most of the materials used for construction are imported and

considering the declining values of the currencies of developing

countries against major currencies like the US Dollar, extra care

should be taken during the cost estimating stage. In addition, adequate

arrangements should be made for transportation logistics.

3. Many developing counties are politically unstable. Permission from

law enforcement agencies should be sought in advance to beef up on

site security.

4. There may be a need for public enlightenment campaigns that are

focused on the economic benefits of infrastructure development in the

host community. This enlightenment campaign should be conducted

before embarking on infrastructure development

5. The issue of corruption is a predominant factor that affects most

developing countries. It is important that the contractor make his stand

on corruption known from the inception of the project. This will avoid

contract officials demanding bribes and kickbacks from the contractor

as construction progresses. This will also ensure that the contractor

will not be forced to pay loyalties to the host community


REFERENCES

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at: www.neduet.edu.pk/Civil/ ICCIDC-1/...papers/051.pdf
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APPENDIX A

Department of Information Management Technology

School of Management Technology

Federal University of Technology,

` P.M.B 1526, Owerri,

Imo State.

October, 2014.

Dear Sir/ Madam

QUESTIONAIRES

The researcher is a student of the above name institution carrying out a resarch
work on COST VARIABILITY OF TELECOMMUNICATION
PROJECT.

This questionnaire serve as research tool for indepth research on this subject.
The work is for the award of Bachelors Degree in Information Management
Technology from the Federal University Of Technology, Owerri, Imo State,

Be assured that all information therein will be used strictly for the purpose of
this work, your absolute cooperation is highly needed,

Thanks.

Yours faithfully,

OPARA MABEL .I.

REG NO: 20091647186


SECTION A. Personal Data

Instruction: Please kindly tick as appropriate.

Marital Status Single…………… Married…………..

Gender Male……… Female ………..

Age ……………

Designation/Position ………………

Designation………………………………………………

SECTION B: Questionaire

Resarch question1: Does Construction cost and financial factors lead to cost
varience in telecommunication infrastructure projects?

Items/Variables Responses

S/N SA A D SD Total
Construction related factors such as
1.
Lack of contractor experience,
Incorrect planning, Poor financial
control on site, Disputes on site and
Inadequate labour availability leads to
cost variance in Telecommunication
projects.

Lack of coordination between


2. designers and contractors and also
Relationship between management
and labour

Finance-related factors affects are


3. causes of cost variance in
Telecommunication projects
Construction Item Factors such as
4. Frequent design changes and
Fraudulent practices and kickbacks
and
Inadequate labour availability causes
cost variance in Telecommunication
projects.
Cost Estimating Factors such as
5. Cost of materials and
Fluctuations in the prices of materials
causes cost variance in
Telecommunication projects.

Overall

Resarch Question 2: Does economic and environmental factors lead cost

varience in telecommunication infrastructure projects?

Table 2

S/N Items Responses

SA A D SD Total
economic stability such as insecurity, monetary
6. policies and inflationary trends as well as High
interest rates, which are charged by banks, on
the loans that are received by contractors
casuses cost variability in ICT projects

Government policies (laws and regulations


7.
Domination of construction industry by foreign
8. firms and aids,
Number of competitors and Project location
Number of construction projects going on at the
9. same time and
Labour nationality

Inadequate production of raw materials by the


10. country and
Lack of productivity standard in Nigeria

Overall Total

Research Question 3: What is the effect of impact of cost varience in


telecommunication infrastructure projects?

S/ Items Responses
No

SA A D SD Total

11 Reduction in the rate globalization force since


ICT is the sole driving force of globalisation.

Distortion and inefficiency in communication


12 since telecommunication infrastructure is the
platform on which ICT networks and services
are based

Higher tariffs to customers or end users


13

Abandoned projects constituting harzards to


14 the economy

Poor and low market for ICT


15.

Overall Total
Research Question 4: What are the remedies for cost varience in

telecommunication infrastructure projects?

Items/Variables Responses

S/N SA A D SD Total

Enagement of professionals in ICT


16 projects

Since most of the materials used for


17 construction are imported and
considering the declining values of the
currencies of developing countries
against major currencies like the US
Dollar, extra care should be taken
during the cost estimating stage. In
addition, adequate arrangements
should be made for transportation
logistics.

Permission from law enforcement


18 agencies should be sought in advance
to beef up on site security.

The issue of corruption is a


19. predominant factor that affects most
developing countries. It is important
that the contractor make his stand on
corruption known from the inception
of the project

Favourable government policies


20.

Overall