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Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria

Stanley Chidozie Nzeh Akaun George Junior Chukwu Oluchi Ebere Chinyere Chienyenwa Nnaji Awa Stanley Kalu Patricia Onyinyechi Onyechere Queenette Eberechukwu Igboanusi Ikechukwu Robert Eze Okpe Chidera Oliver Nkemakola Dick

Subject area: Management and Commerce  ·  Area of research: Cost Performance

DOI: 10.64388/IREV9I12-1719359

Abstract

This study examines the influence of construction logistics and supply chain risk factors on cost performance in building construction projects in Nigeria. A quantitative research design was adopted, with data collected from 156 construction professionals comprising engineers, quantity surveyors, architects, and project managers. The study employed weighted mean analysis, Principal Component Analysis (PCA), and multiple regression analysis to evaluate logistics risk dimensions and their relationship with project cost performance.Findings indicate that construction professionals predominantly rely on intuition and experience-based decision-making, while the use of advanced analytical tools such as Monte Carlo simulation and Bayesian methods remains limited. The PCA identified five key risk dimensions: strategic planning and design risks, socio-institutional logistics risks, contractor capacity constraints, project governance risks, and policy/economic change risks. Regression results revealed that socio-institutional logistics risks have a statistically significant impact on project cost performance.The study concludes that weak logistics coordination, inadequate stakeholder management, and limited adoption of data-driven risk analysis tools are major contributors to cost overruns in Nigerian construction projects. It recommends improved logistics planning, strengthened stakeholder coordination, and increased integration of digital and analytical supply chain risk management systems.

Keywords

Construction Logistics, Cost Performance, Nigeria, Risk Management, Supply Chain Risk

References

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How to cite this paper

Stanley Chidozie Nzeh, Akaun George Junior; Chukwu Oluchi Ebere, Chinyere Chienyenwa Nnaji; Awa Stanley Kalu, Patricia Onyinyechi Onyechere; Queenette Eberechukwu Igboanusi, Ikechukwu Robert Eze; Okpe Chidera Oliver; Nkemakola Dick "Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria" Iconic Research And Engineering Journals Volume 9 Issue 12 2026 Page 3621-3634 https://doi.org/10.64388/IREV9I12-1719359
Stanley Chidozie Nzeh, Akaun George Junior; Chukwu Oluchi Ebere, Chinyere Chienyenwa Nnaji; Awa Stanley Kalu, Patricia Onyinyechi Onyechere; Queenette Eberechukwu Igboanusi, Ikechukwu Robert Eze; Okpe Chidera Oliver; Nkemakola Dick "Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026, doi: https://doi.org/10.64388/IREV9I12-1719359
Stanley Chidozie Nzeh, Akaun George Junior; Chukwu Oluchi Ebere, Chinyere Chienyenwa Nnaji; Awa Stanley Kalu, Patricia Onyinyechi Onyechere; Queenette Eberechukwu Igboanusi, Ikechukwu Robert Eze; Okpe Chidera Oliver; Nkemakola Dick (2026). Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria. Iconic Research And Engineering Journals, 9(12). doi: https://doi.org/10.64388/IREV9I12-1719359
Stanley Chidozie Nzeh, Akaun George Junior; Chukwu Oluchi Ebere, Chinyere Chienyenwa Nnaji; Awa Stanley Kalu, Patricia Onyinyechi Onyechere; Queenette Eberechukwu Igboanusi, Ikechukwu Robert Eze; Okpe Chidera Oliver; Nkemakola Dick "Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria" Iconic Research And Engineering Journals, vol. 9, no. 12, Jun. 2026. Crossref, https://doi.org/10.64388/IREV9I12-1719359
@article{1719359,
      author = {Stanley Chidozie Nzeh, Akaun George Junior; Chukwu Oluchi Ebere, Chinyere Chienyenwa Nnaji; Awa Stanley Kalu, Patricia Onyinyechi Onyechere; Queenette Eberechukwu Igboanusi, Ikechukwu Robert Eze; Okpe Chidera Oliver; Nkemakola Dick},
      title = {Impact of Construction Logistics and Supply Chain Risk Factors On Cost Performance in Nigeria},
      journal = {Iconic Research And Engineering Journals},
      year = {2026},
      volume = {9},
      number = {12},
      pages = {3621-3634},
      issn = {2456-8880},
      url = {https://www.irejournals.com/formatedpaper/1719359.pdf},
      abstract = {This study examines the influence of construction logistics and supply chain risk factors on cost performance in building construction projects in Nigeria. A quantitative research design was adopted, with data collected from 156 construction professionals comprising engineers, quantity surveyors, architects, and project managers. The study employed weighted mean analysis, Principal Component Analysis (PCA), and multiple regression analysis to evaluate logistics risk dimensions and their relationship with project cost performance.Findings indicate that construction professionals predominantly rely on intuition and experience-based decision-making, while the use of advanced analytical tools such as Monte Carlo simulation and Bayesian methods remains limited. The PCA identified five key risk dimensions: strategic planning and design risks, socio-institutional logistics risks, contractor capacity constraints, project governance risks, and policy/economic change risks. Regression results revealed that socio-institutional logistics risks have a statistically significant impact on project cost performance.The study concludes that weak logistics coordination, inadequate stakeholder management, and limited adoption of data-driven risk analysis tools are major contributors to cost overruns in Nigerian construction projects. It recommends improved logistics planning, strengthened stakeholder coordination, and increased integration of digital and analytical supply chain risk management systems.},
      keywords = {Construction Logistics, Cost Performance, Nigeria, Risk Management, Supply Chain Risk},
      month = {June},
      doi = {https://doi.org/10.64388/IREV9I12-1719359}
  }