Chapter One — 1.1 Background to the Study

Over the past decade, the relationship between cost estimation techniques and construction cost overrun has become a subject of considerable debate among scholars and industry practitioners alike, particularly within the context of Lagos State where operating conditions differ markedly from more developed markets.

Lagos State presents a useful setting for examining this relationship precisely because the conditions there — structural, regulatory, and behavioural — differ from those typically assumed in the broader literature, most of which draws on evidence from more developed economies.

1.2 Statement of the Problem

While cost estimation techniques is widely discussed in policy and industry circles, empirical evidence on its actual effect on construction cost overrun within Lagos State remains sparse and, in places, contradictory. This lack of localized, rigorous evidence makes it difficult for decision-makers to know with confidence whether current approaches to cost estimation techniques are helping or hindering construction cost overrun — a gap this study sets out to close.

1.3 Objectives of the Study

1. To examine the effect of Cost Estimation Techniques on construction cost overrun in Lagos State.
2. To assess the extent to which cost estimation techniques influences construction cost overrun within the study area.
3. To identify the challenges associated with cost estimation techniques in relation to construction cost overrun.
4. To recommend strategies for optimizing cost estimation techniques in order to improve construction cost overrun.

1.4 Research Questions

1. What is the effect of cost estimation techniques on construction cost overrun in Lagos State?
2. To what extent does cost estimation techniques influence construction cost overrun within the study area?
3. What challenges are associated with cost estimation techniques in relation to construction cost overrun?
4. What strategies can be adopted to optimize cost estimation techniques 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 Lagos State seeking to understand how cost estimation techniques 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 Lagos State, focusing specifically on how cost estimation techniques 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.