Abstract:
Over the years, there have been improvements in the management of construction
projects; however, globally, the problem of cost overruns is still a critical issue in the
construction industry especially in developing economies which Ghana is no exception.
The aim of this study was to examines the critical factors affecting cost performance in
construction projects in Ghana. The study adopted a quantitative survey approach. The
questionnaires were distributed via email. Out of three hundred and eighty (380)
questionnaires distributed, one hundred and ninety four (194) usable questionnaires were
retrieved from respondents representing 51 percent. The data was analyzed using
descriptive statistics, factor analysis and multiple regression technique for analyzing
relationships between variables. The findings revealed that the underlying construct of
the numerous critical factors of cost overruns are directly linked to five (5) main themes;
managerial-related issues, financing-related issues, cost estimate-related issues, politicalrelated
issues, and market-related issues. The study also revealed that, the main causes of
cost overruns are: poor contract management, delayed payment, inaccurate cost estimate,
weak government policy, and escalation of materials prices. The study further revealed
that the critical factors that can prevent or minimize cost overruns in construction
projects, in Ghana are directly linked to five themes: namely; adequate planning-related,
financing-related, effective collaboration-related, adequate project team capabilityrelated,
and motivation-related. Moreover, the results further revealed that the most
significant success factors that can help prevent cost overruns in construction projects, in
Ghana are early involvement of the contractor, provision of adequate funds, good project
team relations, use of competent managers/supervisors, and provision of incentives/
bonuses to project participants. It is recommended that; training courses and workshops
should be conducted to improve managerial skills of project participants.
Description:
A Dissertation in the Department of CONSTRUCTION AND WOOD
TECHNOLOGY EDUCATION, Faculty of TECHNICAL EDUCATION,
submitted to the school of Graduate Studies, University of Education, Winneba
in partial fulfillment of the requirements for the award of Master of Philosophy
(Construction Technology) degree
NOVEMBER, 2016