Evaluation of the capital budget planning practice of contractors in the construction industry
Poor and unrealistic budgeting has been traced to the inefficiency and neck-deep poverty of contractors in the construction industry, this attributes to the economic decline of firms and capital disappearance in the industry. This research work seeks to evaluate the capital budget planning practi...
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| Main Authors: | , |
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| Format: | Article |
| Published: |
Penerbit UKM
2011
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| Online Access: | http://journalarticle.ukm.my/3530/ http://pkukmweb.ukm.my/jsb/jbp/ |
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| Institution: | Universiti Kebangsaan Malaysia |
| Summary: | Poor and unrealistic budgeting has been traced to the inefficiency and neck-deep poverty
of contractors in the construction industry, this attributes to the economic decline of firms
and capital disappearance in the industry. This research work seeks to evaluate the
capital budget planning practice of contractors in the Nigerian construction industry. The
research made use of questionnaires for data collection and the statistical tools employed
in the analysis are frequency tables, percentages, cumulative percentages, and mean
score ranking. The variables used for the evaluation include long-term capital budgets,
capital budgeting manual/written procedures, formal bodies responsible for screening and
reviewing projects, capital budgeting personnel and regular minimum rate of return
review. The study revealed that about 50% of contractors do not make plan for long-term
capital budgets and therefore cannot handle large projects. It is recommended that
contractors make plan for long-term capital budgeting and devote more personnel to
capital budget planning to ensure that they can handle the numerous large construction
projects in the industry |
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