Studying the use of termination as project cost control techniques in the construction industry

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Building construction project termination is a very common phenomenon in Africa of which Ghana is not an exception, he argued that, the phenomenon can be attributed to lack of political continuity of projects started by predecessors and the frequent award of contracts to party apparatchiks. The study revealed that Ghana in the last two decades has experienced the highest number of abandoned building projects in its development history, they opined that, the situation is alarming and needs national dialogue to put an end to the menace, their findings also suggest that, the situation has huge financial implication on Ghana’s struggling economy as a developing country. This revealed the need to investigate the possible usage of project termination as a project cost control mechanism. The main goal of the study is the use of termination as project cost control technique in the construction industry. Specifically, the study looked at factors that causes project termination, secondly, the study was to identify termination methods that can be used as a project cost control mechanism in the construction and finally, the study was to investigate the relationship between project termination factors and project cost control. To achieve the aforementioned objectives the researcher employed descriptive survey research design approach using research questionnaires as a data collection instrument. The study sampled 40 respondents using a non-probability (convenient sampling) sampling technique. Findings from the study revealed that, political factors were the most severe project termination factors with a Relative Importance Index (RII) of 0.813, followed by managerial factors, financial factors and the least severe project termination factor was identified as sustainable factors. furthermore, findings identified termination by default is the best termination method used to control project cost, more than 80% of the respondents endorsed project termination by default as the most appropriate termination tool to prevent and control project cost at the municipal assemble level. Finally, a Kurskal Wallis test of association showed the relationship between project termination factors and project cost control. All the project termination factors were all statistically significant at alpha (α) =5%. Based on these findings the researcher recommends that, the award of contracts by municipal assemblies must be preceded by due diligence to determine the financial status of the contracting firms and their competent level in the line supposed project.
A thesis submitted to the Department of Construction, Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the Award Degree of Master of Science in Construction Management.
Construction Industry, Cost control techniques,, Project termination, Project stakeholders