Educational Administration: Theory and Practice

Résumé

Effective financial performance is crucial for the growth of construction companies, and project cost control plays a key role in achieving this, using financial measures such as Return on Assets (ROA), Return on Equity (ROE), Cost Variance Analysis (CVA), and Earned Value Analysis (EVA). This study examined the impact of project cost control on the financial performance of selected construction firms in North-Central Nigeria. Data were collected from 102 construction professionals using a structured questionnaire, achieving a 100% response rate. Descriptive statistics (mean, frequency, percentage) and multiple linear regression were employed for analysis. The results showed that CVA and EVA significantly influence financial performance, with R-squared values of 69% for ROA and 77% for ROE. The regression models indicate that ROA = -0.012 + 0.605(CVA) + 0.746(EVA), and ROE = 2.359 + 0.087(CVA) - 0.143(EVA). The study concludes that CVA positively predicts both ROA and ROE, while EVA positively but negatively predicts ROE. It is recommended that construction firms enhance their use of project cost control techniques to minimise cost overruns, delays, and quality issues, leading to improved financial performance.

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