Factors influencing the final cost of construction projects in Ghana
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Date
2015-02-20
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Abstract
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.
Description
A dissertation presented in partial fulfilment of the
requirements for a degree of Master of Science in
Construction Management, 2014