Investigating project cost estimation practices in emerging construction firms to reduce project cost variance in Ghana a case study of the Kumasi Metropolitan

Abstract

Improving cost estimation practices in emerging building construction firms continue to be a major feature of construction projects in an attempt to deal effectively with uncertainty and to achieve project success. The dissertation was conducted to investigate project cost estimation practices in emerging construction firms to reduce project cost variance in Ghana. The researcher employed the survey research design in the study with an accessible population of ten (10) construction companies, and five (5) consultancy firms operating in the Kumasi Metropolis. However, the study used purposive sampling technique to sample ninety (90) respondents to answer a set of structured questionnaires. Statistical package for the social science (SPSS) and MicrosftEcel (M.s Excel) were used to analyze the data and the results were presented in charts and tables showing their frequencies and percentages. In practice, according to the respondents the study found that, parametric, detailed/bottom-up, computer aided cost estimation methods and others are the major project cost estimation methods and techniques utilized by emerging construction firms to reduce project cost variance in the Kumasi metropolis. The study concluded that, emerging construction firm managers at Kumasi metropolis must critically examine and utilized the most appropriate project cost estimation method and technique applicable to each construction project to help reduce cost variance. The study therefore recommended that, building professionals (contractors, consultants, construction managers and quantity surveyors) are to ensure that all the effective cost estimation methods and techniques are fully adhered to in the construction of domestic buildings, public and industrial buildings as well. The study also recommended that, building professionals should ensure that they are well informed of the significant risk factors affecting cost estimation of construction works in order to make the right estimation required.