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
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