Improving cost control measures in building projects in Ghana a case study of Kumasi metropolis in the Ashanti region

Abstract

Managing the cost of projects is important to ensure prudent use of project resources that will enable that project budget is not exceeded. Cost control ensures the cost of project activities are effectively and efficiently managed. The aim of the study was to examine cost control measures in building projects in the Kumasi Metropolis and to make recommendations for improving cost control measures on project sites. The specific objectives of the study included; to identify cost control measures adopted for building projects by building contractors in the Kumasi Metropolis, to identify constraints to effective implementation of cost control measures in building projects in the Kumasi Metropolis and to make recommendations for improving cost measures in construction projects in the Kumasi Metropolis. The study adopted a quantitative research approach involving the administration of survey questionnaires to one hundred and eight (108) site managers of construction firms registered with the Kumasi Metropolitan Assembly. The findings of the study revealed that the cost control measures used in building projects were project cost value reconciliation, overall profit or loss strategy, Profit or loss on each contract at valuation dates, unit costing, standard costing and earned value analysis. The software packages used for project cost control measures included Microsoft project software and project costing system (PCS), The key challenges to effective implementation of cost control measures were lack of incentives in contract clauses for contractors implementing effective cost control in building projects, lack of skilled personnel for implementing effective cost control and lack of ICT equipment and software for implementing effective cost control. Based on the findings, the study has made recommendations towards improving cost control practices in the study area.