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

Richard Oduro Asamoah,Gabriel Nani,Bernard Kofi Baiden

doi:10.1155/2019/6791401

Abstract

Cost of building is usually influenced by several factors; one of such is frequent changes in macroeconomic variables. The purpose of this study is to establish the need to conduct further research on the impact of changes in macroeconomic components on the cost of public educational buildings. The study adopted the qualitative research approach; purposive and snowballing techniques were used in selecting respondents. Questionnaire survey was used to obtain primary data from respondents who were Quantity Surveyors and Estimators. The questionnaires were analyzed through descriptive analysis. Secondary data was obtained through literature review. The study revealed that respondents were satisfied with cost management procedures and practices and mainly relied on cash flow, progress reporting, and project cost control methods as means of monitoring and managing project cost. Relative important index, prime rate, interest rate, and inflation were some of the macroeconomic components that professionals considered having impact on cost. The respondents also recommended further studies on the impact of macroeconomic variability on cost of public buildings.

Highlights

Project cost management is a major concern amongst the parties in the building construction industry
The primary objective of this study was assessing the need for further research on the impact of changes in macroeconomic components and the cost of public educational buildings in Ghana, but it is imperative to assess the professionals on project cost management procedures and practices
The study revealed that professionals (Quantity Surveyors and Estimators) have in-depth knowledge about building cost management considering their years of practicing in the building industry

Summary

Introduction

Project cost management is a major concern amongst the parties in the building construction industry. According to Eldash [6], cost management is the total process which ensures that contract sum is within the client’s approved budget It is the process of helping the team to design a cost rather than Quantity Surveyor/Estimator costing a design. Estimators usually consider pertinent factors and that most of the critical factors are of qualitative nature One of such challenges facing the construction industry is the effects of changes in macroeconomic indicators in developing economies including Ghana [11]. Questionnaires were administered to Quantity Surveyors and Estimators who were working in public institutions in Ghana They were from technical universities, research institutions, development offices of Kwame Nkrumah University of Science and Technology and University College of Education Winneba-Kumasi Campus and others consulting firms who represent the government on building projects. In terms of working experience, 10% of the respondents had over 16 years working experience, 20 % had over 11 years working experience, 40% had over 6 years working experience, and 30% of the respondents had working experience between 0-5 years

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Conclusion