Improving cost performance of local government projects perspectives of consultants and contractors

Abstract

The purpose of the study was to examine the how cost performance of local government projects can be improved from the perspectives of consultant and construction firms. The study adopted a quantitative research design involving the development of survey questionnaires. The specific objective of the study were to identify the factors that influence cost of completion of construction projects and challenges to effective management of project cost with a view to improving the cost management of construction projects. The target population of the study was construction firms registered with the Tamale Metropolitan Assembly and consultants operating within the Metropolis. The findings of the study revealed that the key causes of cost overruns included; high rate of inflation, poor procurement practices, unforeseen site conditions, improper planning, fluctuations in prices of raw materials, obsolete or unsuitable construction equipment and methods, insufficient finds and mistakes in design. Also, the findings of the study revealed that the key challenges to effective management of the cost of local government projects included; political influence, lack of cooperation between contractors and local government officials, poor supervision and lack of transparency in contract award. Further findings were that completing projects on schedule, proper project planning, minimizing materials waste, and ensuring value for money in project cost estimates and proper design of facilities will go a long to minimize or prevent cost overruns of local government projects.