Framework for development of construction cost indices using Unit Rate

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The need for the use of fluctuation price contracts to provide adequate relief for changes in prices of input resources during construction has been generally accepted in the Ghanaian construction industry. However, stakeholders are currently not satisfied with the existing methods of evaluating fluctuations for building contracts. The study was carried out to identify problems with usage and develop acceptable cost indices for the building industry. The study identified the major problems as late release of published indices and low recovery of costs. Twenty-eight modal work items were also identified from BQ analysis. Based on these modal items, construction input resource prices were collected and using the resulting unit rates, cost indices were formulated. Statistical tests revealed that the developed indices achieved cost recovery higher than that obtained using the existing methods. The study recommends that seminars be regularly held with stakeholders like the Association of Building and Civil Engineering Contractors (ABCECG), the construction industry professional bodies like the Ghana Institution of Surveyors (GhIS), Ghana Institution of Engineers (GhIE), Ghana Institution of Architects (GhIA), and Ghana Education Trust Fund among others, to solicit their input to enrich the developed indices.
A project report submitted to the Department of Building Technology, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the degree of Master of Science in Construction Management