Chapter One — 1.1 Background to the Study

In recent years, Value Engineering Practices has emerged as a critical factor shaping construction cost overrun across organizations operating in and around Selected Commercial Banks in Nigeria. As institutions grapple with the pressures of globalization, regulatory reform, and shifting stakeholder expectations, understanding how value engineering practices relates to construction cost overrun has become an important area of both scholarly and practical concern.

Within the context of Selected Commercial Banks in Nigeria, this relationship carries particular significance. Organizations in this setting operate under a distinct combination of economic, regulatory, and market conditions that may amplify or dampen the effect of value engineering practices on construction cost overrun, making a context-specific inquiry both timely and necessary.

1.2 Statement of the Problem

Despite a growing body of literature on value engineering practices, there remains limited consensus on the precise nature of its relationship with construction cost overrun, particularly within Selected Commercial Banks in Nigeria. Many organizations continue to make decisions about value engineering practices without a clear, evidence-based understanding of how those decisions ultimately affect construction cost overrun. This gap between practice and empirical understanding is the central problem this study seeks to address.

1.3 Objectives of the Study

1. To examine the effect of Value Engineering Practices on construction cost overrun in Selected Commercial Banks in Nigeria.
2. To assess the extent to which value engineering practices influences construction cost overrun within the study area.
3. To identify the challenges associated with value engineering practices in relation to construction cost overrun.
4. To recommend strategies for optimizing value engineering practices in order to improve construction cost overrun.

1.4 Research Questions

1. What is the effect of value engineering practices on construction cost overrun in Selected Commercial Banks in Nigeria?
2. To what extent does value engineering practices influence construction cost overrun within the study area?
3. What challenges are associated with value engineering practices in relation to construction cost overrun?
4. What strategies can be adopted to optimize value engineering practices in order to improve construction cost overrun?

1.5 Significance of the Study

Beyond its academic contribution to the field of quantity surveying, this study has practical value for management teams within Selected Commercial Banks in Nigeria seeking to understand how value engineering practices translates into measurable outcomes around construction cost overrun. It is equally useful to students and future researchers looking for a localized empirical reference on this relationship.

1.6 Scope of the Study

In terms of scope, this study confines itself to Selected Commercial Banks in Nigeria, focusing specifically on how value engineering practices relates to construction cost overrun within that setting. Findings are interpreted within these boundaries rather than as universal claims applicable to every organization or market.