Construction industry in Nigeria had been a major source of employment for 70% of labour in the country, thus it controls the capital flow, as well as labour resources, which has cost implications. Adequate management of these resources is considered an important aspect of project works; so also if the resources are adequately harnessed, issues that pertain to cost overrun would not arise which could result to variations and claims. The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big challenge to cut cost. Nigerian construction industry is faced with problem of cost overrun. 

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