Study of Site Overhead Cost Management in Large Building Projects in Abuja

Site overhead costs represent a significant and often poorly managed element of construction project expenditure in Nigeria. This study examines site overhead cost management practices in large building projects in Abuja, focusing on commercial and institutional projects with contract values exceeding N1 billion. A quantitative survey design was employed, with 85 quantity surveyors, project managers, and financial controllers forming the respondent group. Structured questionnaires and project cost records from 30 selected projects provided the data. Analysis was conducted using descriptive statistics and regression analysis. Findings show that site overheads average 12.4% of total project cost in sampled Abuja projects, with the highest components being site management salaries, temporary facilities, and plant mobilisation costs. Most contractors allocate site overheads using simple percentage additions to direct costs rather than activity-based analysis, resulting in inaccurate project pricing and poor cost control. The study finds a significant negative correlation between systematic site overhead planning and cost overrun magnitude. Recommendations include the adoption of detailed site overhead cost planning as a standard pre-tender activity, development of site overhead benchmarks for Abuja's commercial construction sector, and training of quantity surveyors in activity-based overhead analysis techniques. This research contributes to cost management knowledge for large-scale building projects in Nigeria's capital city. Keywords: site overhead, cost management, large building projects, Abuja, quantity surveying