Construction Cost Control Mechanisms by Contractors in Ghana.
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Date
NOVEMBER, 2019
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Abstract
Cost is a fundamental component of any construction project. It is of much essence that the construction industry has control on cost performance of construction projects to ensure that construction cost is within the estimated budget constrain. The aim of the study is to explore the factors affecting construction cost control by Contractors in Ghana. The study was carried out along the tenets of a preliminary literature review and followed by a survey using a structured questionnaire. Thirty two (32) questionnaire were retrieved out of the 39 distributed. The data collected were analyzed using Relative Importance Index (RII) and mean score. The study revealed that, Earned Value Analysis, Actual versus forecast reconciliation, budgetary planning or control, Variance analysis, Reserve analysis, Unit Costing, Program Evaluation and Review Technique (PERT/COST) and Project Cost-Value Reconciliation are the mostly and frequently used Construction cost control techniques by contractors. Lack of cost planning/monitoring during pre-and-post contract stages, Poor Project planning, Delay payment to contractors, Cash flow and financial difficulties faced by contractors, Inflation pressure, Fluctuation of prices of materials, Poor financial control on site, Project location, Complexity of projects, Wrong Estimation Methods, Inexperience of Project Leaders are the major factors that affect construction cost performance. It was revealed that the effective ways to control construction cost are; Contingency / Risk Management, controlling costs throughout the projects, selecting appropriate procurement options, Plans of Work and Periodic Reviews, Value Management / Engineering, Budgetary Control, Cash Flow Monitoring.[ Keywords: Cost, Construction, Control, Contractors, Project
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A thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment, in partial fulfillment of the requirement for the degree of
Master of Science in Construction Management.
Keywords
Cost, Construction, Control, Contractors, Project