Structural Equation Modeling (SEM) for the Relationship among the Factors that Contribute to the Final Cost of Building Projects in Nigeria

Abstract

This paper studies the relationship among the major cost variables that contribute to the final cost of
building projects in Nigeria. Data for this research work were analyzed using warp PLS-SEM 3.0. The
data were obtained from projects files of completed public building in the North-Eastern States of
Nigeria. SEM path model was found to produce path relationship of the major cost variables that
influences the final cost of building projects and the path coefficient that had high R and R2 values 0.99
and 0.98 respectively. These observed variables in the model would also predict the final cost of building
projects. It was concluded that there is positive correlation between observed variables and the final cost of building projects and also there is positive relationship among the independent variables that
contribute to the final cost of building projects.