One thing common to organization in both public and private is procurement. The competitiveness of business environment today has impact both small and large organization. An impulsive reaction under the current circumstances is just to cut all costs to the minimum level. There is need for careful examination of every aspect of an organization’s cost structure to eliminate unnecessary discretionary and non-value adding costs, while the competitive position is still retained. This makes Cost reduction to become the number one focus for businesses. It was discovered that 50% to 75% of annual organizational revenue spent by business leaders is on procurement costs. Thus, reducing procurement cost is now a central business strategy to increase profitability. This effect of this cost reduction leads to undermining of quality as explained by some researchers. This study assess the relationship between cost reduction and quality of project delivery. Survey research design was adopted for this study while convenience sampling technique was employed in selecting administrative staffs of the selected companies. Data was gotten from primary source by use of structured questionnaire. The reliability test was 0.939. To test for relevant hypotheses, regression analysis was used. The study found out that cost reduction influences quality of project delivery with a given value of 52.6%, cost reduction accounts for shortage of procured item with a given value of 8.6%. Cost reduction affects late delivery of project with a given value of 12.6%. It was therefore recommended that quality should be of priority to organization when carrying out cost reduction analysis, other aspect like shortage and late delivery should also be considered and prevented.