Cost Management Practices on Large Building Projects: A Case Study of the Association of African Universities Secretariat Building Project in Accra
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Date
2017-11-01
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KNUST
Abstract
Cost management system has been considered as an important tool in controlling cost of a
project and keeping it within the pre-determined budget. In the case of large building
projects, cost management is critical due to the high uncertainties surrounding such
projects. The cost management practices of construction firms for large building projects
and the challenges associated with them was examine. A case study of the Association of
African Universities Secretariat Building Project in Accra was used. Face to face structured
interview was held with the key professionals namely the Project manager, Construction
manager, Site supervisor, Quantity surveyor, Architect, Civil engineer and the Risk
manager who are involved in managing the cost of the project. The data collected was
analyzed using content analysis. From the study, it was found that cost management on
large building projects starts as earlier as the design/planning stage of the project. The
techniques and tool used by firms to manage project cost include: estimating, cost planning
and control, budgeting, cash flow forecasting, cost reporting and cost code system. These
techniques are used together to support the overall project cost management. The
challenges associated with managing cost on large building projects include: frequent
variations/changes made to the scope, specification etc. of the project during the
construction stage; Poor communication and coordination among project parties; lack of
coordination between project processes and the need to manage large cost data create
difficulties for the cost management on large building projects. It was recommended that
frequent changes/variations in project scope and specifications during the construction
stage should be avoided. Moreover, Information and Communication Technology should
be utilized for information sharing to enhance communication and coordination. The used
of computerized systems for data storage and handling is also encouraged.
Description
A Dissertation Submitted to the Department of Building Technology, College of Art and Built Environment in partial
fulfillment of the requirements for the degree of Master of Science, November, 2017