Factors influencing the project cost for works in public institutions in Ghana, perspective of building contractors in Kumasi metropolis

Abstract

The study examined the factors influencing the project cost for works in Ghanaian public institutions from perspective of building contractors in Kumasi Metropolis. The study was descriptive in nature and involved survey of opinion by means of questionnaires. The target population of the study was registered contractors in Kumasi metropolis within the Ashanti Region. The number of registered construction firms was 80 out of which 50 were sampled for the study. Random sampling technique was used to select the sample size. All completed questionnaires were assembled and organised for processing. Data was coded and analysed using Statistical Package for Social Sciences (SPSS version 21). The study findings revealed that the most important factors that influence the project cost in public institutions are: material (prices/availability/supply/quality/imports), project complexity, currency exchange fluctuations, prevailing economy conditions, site requirements, location of project, type of structure, labour cost and availability, client method of payment and type of client. It is therefore recommended that clients and consultants should give more consideration to cost estimating process in order to enhance productivity and accuracy. Training, seminars, and workshops aimed at improving the local practice in cost estimating and increases the capabilities of estimators in using estimating software should be organized.