Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between procurement method selection and construction cost overrun has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Selected Insurance Companies in Nigeria where operating conditions differ markedly from more developed markets.

Within the context of Selected Insurance Companies 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 procurement method selection 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 procurement method selection, there remains limited consensus on the precise nature of its relationship with construction cost overrun, particularly within Selected Insurance Companies in Nigeria. Many organizations continue to make decisions about procurement method selection 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 Procurement Method Selection on construction cost overrun in Selected Insurance Companies in Nigeria.
2. To assess the extent to which procurement method selection influences construction cost overrun within the study area.
3. To identify the challenges associated with procurement method selection in relation to construction cost overrun.
4. To recommend strategies for optimizing procurement method selection in order to improve construction cost overrun.

1.4 Research Questions

1. What is the effect of procurement method selection on construction cost overrun in Selected Insurance Companies in Nigeria?
2. To what extent does procurement method selection influence construction cost overrun within the study area?
3. What challenges are associated with procurement method selection in relation to construction cost overrun?
4. What strategies can be adopted to optimize procurement method selection 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 Insurance Companies in Nigeria seeking to understand how procurement method selection 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 Insurance Companies in Nigeria, focusing specifically on how procurement method selection 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.