Factors influencing the final cost of construction projects in Ghana

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
Over the past five decades, cost, time and quality have been taken as the basis for the measurement of the success of project management. This phenomenon is perhaps not surprising, since over the same period these criteria have usually been included in the description of project management. The cost performance of building construction projects is a key success criterion for clients. Projects require budgets which sets the pace and guarantees the client’s financial commitment and provide the basis for cost control and measurement of cost performance of the project. The aim of this study was to investigate the factors that influence the final cost of a construction project. To achieve this aim the objectives set were; to identify the factors that affect the f inal cost of a project from the perspective of contractors; and to identify the factors that influence the accuracy of cost estimates in determining the final cost of a construction project. The study adopted the quantitative research strategy. Data was obtained using questionnaire from a convenient sample size of 50 from D1K1 to D4K4 contractors in the Central Region in Ghana. The data was analyzed using the Statistical Package for Social Scientists (SPSS) and Microsoft Excel softwares. It was discovered from the study that Unexpected ground Conditions, Design changes, Shortages of material and plant, Exchange rate and Inflation/ relative price changes as the major factors affecting the final cost of a construction project. Concerning the second objective, Material (prices/ availability/ supply/ quality/ imports), Experience and skill level of the estimator(s), Quality of information and flow requirements, Project team's experience in the construction type, and Time allowed to prepare the estimate were the factors affecting the accuracy of estimates. Keywords: Construction Industry, Final cost, Estimate accuracy.
A dissertation presented in partial fulfilment of the requirements for a degree of Master of Science in Construction Management, 2014