Critical Barriers to the Practice of Effective Cost Planning in the Ghanaian Construction Industry

Abstract

Cost planning practices in the construction industry worldwide has gained much popularity in recent times due to economic recession and stringent measures that various procurement laws prescribe in most developed and developing countries. Nevertheless, these practices in developing countries such as Ghana are constrained with the existence of critical barriers that render them non-effective and hence, accounting for the numerous abandonment of both private and public projects. Consequently, this study was enunciated with the aim to examine the critical barriers to the practice of effective cost planning in the Ghanaian construction industry. Through an indepth literature review and a pilot survey, questionnaires were designed and administered to quantity surveyors. Data generated from the field survey was subjected to principal component analysis. The findings of the study revealed weak cost planning knowledge base, poor cost databases and understanding, inadequate designs and planning and external conditions are the major barriers to cost planning practices in the Ghanaian construction industry. The need for this study cannot be doubted since it provides an insight for experts in the construction industry on the barriers of the practice of cost planning in the industry. The awareness of these barriers will therefore facilitate efficient and effective efforts to resolve them. A future study is thereby proposed by this study to explore effective cost planning practices in the Ghanaian construction industry that will ensure private and public stakeholders get value for their money invested.

Assessment of competencies to promote best project management practices for road infrastructure projects in Ghana

“…Currently, project managers in the road infrastructure sector originate from civil engineering, materials engineering, quantity surveying, geomatic surveying and others (Kissi et al , 2014). Though project management concepts and practices have been globally acclaimed over the past seven decades, the road construction industry in Ghana started over four decades ago (Ahadzie and Amoah-Mensah, 2010).…”

“…As the demand for improved and efficient road infrastructure projects in developing countries keeps rising, project managers must position themselves toward best practices to meet the growing infrastructure demands and challenges. In Ghana, project management professionals face a myriad of technical and nontechnical project management challenges, including little documentation on project management best practices, funding and its conditionalities (Kissi et al , 2014).…”

“…Ahadzie and Amoah-Mensah (2010) further identified that project management practices in developing countries face personnel shortages, complex economic and social conditions, frail political institutions and entrenched and sometimes outdated cultural and religious views. Kissi et al (2014) identified five constructs of weak knowledge base, poor clarity in project managers’ roles, poor procurement practices, frail institutional background and poor communication practices as limitations to project management practices in the Ghanaian construction industry. These challenges, among others, are associated with the road infrastructure sector, which, when properly managed, will help improve project success.…”

Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

“…Quartey and Afful-Mensah [33] also concluded that the Ghanaian economy is faced with huge interest rate, double inflation figures, and high taxes, making it difficult for small, medium, and large scale construction firms to access funding for projects. The highly unstable economic parameters and high inflationary trends contribute to project cost overruns, inaccuracies, and unreliability of cost management practices [34]. An assessment of GET-Fund projects in Ghana revealed that only 2 out of 10 projects in Ashanti Region were completed within project budget [33].…”

“…An assessment of GET-Fund projects in Ghana revealed that only 2 out of 10 projects in Ashanti Region were completed within project budget [33]. In an attempt to minimize the impact of economic factors influencing cost of buildings, [34][35][36] developed a Framework for the computation of construction cost indices using rate, but previous work by Asumadu-Yeboah [37] concluded that the contractors were not satisfied with the level of compensation and that the indices have not been consistent to the unstable economic conditions in Ghana. Kissi et al [38] also considered the need to develop Tender Price Index to predict estimate for tender in the Ghanaian building industry with the aim of improving the level of accuracy and reliability of early design estimate.…”