Barriers to design –stage cost planning practises in the construction industry of Ghana

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November, 2015
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The purpose of the study was to identify the barriers to effective design stage cost planning for residential buildings, identify the methods adopted in estimating the design stage cost for residential buildings and ascertain the consequences of inaccurate design stage cost planning for residential building projects. Data was gathered over 127 respondents and was analysed using descriptive statistics. The study found that the common estimation techniques employed by the residential building developers are; cost review and update technique, expert opinion and trend analysis. The study also demonstrated that residential building developers are exposed to many factors that hinder the effectiveness of design stage cost planning. The factors identified included; complexity of contract structure, late contractor involvement in design, inadequate funding, poor project intelligence, poor use of technology, economic issues such as interest rate, inflation, depreciation of the cedi etc, inflexible design, procurement policies that discourage competitive negotiation, low skill staffs and conflict between project parties. The inability to find solution to these challenges results in delay in the completion of projects, increase in original cost and ineffective scope control. The study recommends that there must be an alternate course of action for likely changes in design stage cost. Also design stage cost planning ought to take into account a progression of cost holding classes fitting for the specific task plan. The aggregate estimation of the target costs should not surpass the general confirmed spending arrangement for the project.
A thesis submitted to the Department of Building Technology, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the Degree of Master of Science in Construction Management, 2015