A study of the challenges associated with project cost performance in Ghana
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Date
2021-06-23
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Abstract
Cost overrun does not only affect the profitability of construction projects for the contractor, it also
affects the whole economy especially in public projects. Therefore, the aim of this study was to
explore the challenges associated with project cost performance in Ghana. To achieve the aim,
three (3) objectives were established which were to identify the causes of poor project cost
performance in Ghana, to identify the challenges in achieving high project cost performance in
Ghana and to identify the strategies in improving project cost performance in Ghana. Establishing
the objectives led to the extensive review of literature and subsequently, developing a structured
questionnaire to aid in the collection of data from the respondents. Using the snowballing sampling
technique, fifty-three (53) questionnaires were retrieved out of the seventy-nine (79) distributed.
The data were analyzed using the Relative Importance Index (RII). From the analysis, it was
realized that contractor’s site management came out as the most significant cause of poor cost
performance in the construction industry. The second ranked criterion was material and
machinery. The third ranked criterion was design and documentation related factors. In the
objective two, the first ranked factor was insufficient resources for cost management. The second
ranked factor was poor budgeting and forecasting approach. In the third objective, the first ranked
factor was proper planning cost control. The second ranked factor was competent personnel. The
third tanked factor was realistic cost estimation. The forth ranked factor was effective risk
management. With these findings, it was recommended that, the consultant in consultation with
the client should endeavor to select an appropriate contractor for the execution of the works. The
selection of an inappropriate and inexperienced contractor creates the possibility of project failure
especially in terms of cost. Also, cost planning processes should be implemented at initial stages of
the construction project and make sure that during the execution of the project, cost is adequately
controlled. Lastly, excessive scope changes should be avoided as it has a significant impact on
project cost performance.
Description
A thesis submitted to the Department of Construction Technology and Management, Kwame
Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirement for the Award Degree of Master of Science.
Keywords
Challenges, Project Cost Performance, Project Cost, Ghana