IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT (IJEFM )

E-ISSN 2545-5966
P-ISSN 2695-1932
VOL. 3 NO. 1 2017

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Severity Rank of Factors Affecting Construction Cost by Clients, Consultants and Contractors

D. O. Mac-Barango (Ph.D)

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Abstract

The cost of construction is a function of several variables. This research examines several of these variables with a view to revealing the proportional contribution to cost of construction as observed by clients consultants and contractors. The research seeks to identity the main factors influencing construction cost, (ii) to determine severity rank of the factors, (iii) to determine if significant differences exist between the severity rank of these factors as observed by clients, consultant and contractors. Using structured questionnaire surveys as well as stratified sampling method it obtains data from clients, contractors and consultants group. The research implored the statistical package for social science (SPSS) to analyze the data obtained from the questionnaire surveys. Spearman’s rank correlation as well as student’s t-test provided the basis for analysis of the factors and ascertaining, if significant differences exist between the severity rank of the factors. Research findings based on the severity rank revealed that the following factors: poor financial control on site, absence of frequent design changes, government policies, contractual procedures adopted are the most important factors that influence cost of construction, etc. The research concludes as follows: the three groups (clients, consultants and contractors) ranked and identified the most important factors affecting construction cost to be same. There were however significant differences on the rank of these factors as assessed by the three groups. The research recommends that the three key players should undertake execution of construction works with deliberate and due diligence towards mitigating that most important factors as ranked.

keywords:

Cost of Construction, Contractors, Client/Consultants, Construction Cost Determinants

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