CAUSES OF DISPARITY BETWEEN CONTRACT SUM AND FINAL ACCOUNT SUM OF BUILDING PROJECT IN KWARA STATE

ABSTRACT Disparities can be defined as the significant differences or discrepancies between the estimated or agreed upon contract sum and the actual final account sum of a construction project. A large number of building projects in Nigeria experience a discrepancy between the agreed-upon contract sum and the actual final cost. This discrepancy is often caused by factors such as estimation mistakes, poor communication, and unethical practices by the parties involved. The analyze the causes of disparities between contract sum and final account sum in building projects, and to propose effective cost management strategies for the construction industry and objectives of the study is to identify the causes of disparities between the contract sum and final account sum in building projects, to examine the impact of disparity between the contract sum and final account sum on building projects and to suggest strategies for mitigating disparities between the contract sum and final account sum on building projects. Quantitative approach was adopted for the study and Simple random sampling was used to select Architect, builder, Engineer and Quantity surveyors and client in Kwara State, North- central Nigeria. Eighty-four (84) structured questionnaires were self-administered to the respondents in kwara state in which 70 questionnaires were properly filled and returned for analysis with a response rate of 83.33%, the results were analyzed using descriptive statistics (percentage, pie chart, and bar chart), mean Item Score (MIS) and Severity Index (S.I) were used to anaylze the objectives. The findings of this study revealed that the major causes of disparities between the contract sum and final account sum in building projects are: Changes in project scope, Variation orders, Fluctuating material and labor costs, Errors in initial cost estimation and delays and disruptions. The study also revealed that the major implications of disparities on project cost management are; Cost overruns, time overrun, impact on project success and inaccurate budgeting. The study concluded that concluded that robust cost planning, risk management, employed qualified and experienced quantity surveying and value engineering were ranked most significant strategies for mitigating disparities and improving cost management in construction projects.