Purpose
Cost overrun of construction projects has been a key concern for all stakeholders of projects for many decades now. Many studies have been done in the past and continue to be done currently ...to understand the underlying causes of construction project cost overruns. However, the empirical evidence of the causes seem not be clear due to the silo approach in understanding the causes of construction project cost overruns. The purpose of this paper is to take the debate a step forward by providing an understanding of the causes of project cost overrun from a system’s perspective, especially from a less researched environment.
Design/methodology/approach
Data were collected and analysed from 131 respondents who were mainly involved in construction works in public procurement entities in Ghana. A two-staged approach was employed in collecting data from the respondents. The first stage involved an interview session with key informants in the construction industry in Ghana to ascertain the detailed causes of cost overrun of construction projects. The second stage focussed on the validation of these detailed factors by a wider stakeholder group through questionnaires. Factor analysis was employed to consolidate these detailed factors into major causes of construction project cost overruns.
Findings
The results show that there are primarily four major causes of most public sector construction projects cost overruns. These four major causes of cost overruns are poor contract planning and supervision; change orders; weak institutional and economic environment of projects and lack of effective coordination among the contracting parties.
Originality/value
The study provides more insights as to the critical and major factors that underpin public sector construction projects cost overruns and more importantly provides a basis for common treatment of the multiple risk factors engendering public sector construction projects cost overruns.
PurposeThis paper aims to focus on developing a baseline model for time overrun.Design/methodology/approachInformation on 321 completed construction projects used to assess the predictive performance ...of two statistical techniques, namely, multiple regression and the Bayesian approach.FindingsThe eventual results from the Bayesian Markov chain Monte Carlo model were observed to improve the predictive ability of the model compared with multiple linear regression. Besides the unique nuances peculiar with projects executed, the scope factors initial duration, gross floor area and number of storeys have been observed to be stable predictors of time overrun.Originality/valueThis current model contributes to improving the reliability of predicting time overruns.
PurposeEffective procurement of infrastructure is linked to the attainment of the sustainable development goals set by the United Nations. While the capacity of organisations is generally thought to ...be related to organisational performance, there is a lack of empirical insights concerning the contribution of procurement capacity of public organisations towards the attainment of procurement objectives in infrastructure procurement. Thus, it is unclear which aspects of the capacity of public procurement organisations contribute the most to the attainment of procurement objectives in the procurement of infrastructure. This research sought to address this gap.Design/methodology/approachThe research used a survey of public procurement professionals which yielded 590 responses.FindingsExploratory factor analysis of 23 organisational capacity items revealed three components of organisational procurement capacity: “management of the procurement process”; “human and physical resources”; and “financial resources and management”. Multiple regression modelling of the relationship between the components and the attainment of 12 procurement objectives further reveals that there is a significant positive relationship between the three components and all the objectives. However, “management of the procurement process” emerged as the greatest contributor to the attainment of seven objectives, whereas “human and physical resources”, and “financial resources and management” were the greatest contributor to the attainment of one objective and four objectives, respectively.Originality/valueThe study provides strong empirical justification for investment in the development of procurement capacity of public agencies involved in procurement of infrastructure. Furthermore, procurement capacity development of specific capacity components can be prioritised based on the relative contribution of capacity components to the attainment of desired procurement objectives. This should be useful to government policymakers as well as multilateral organisations that fund infrastructure and procurement reforms in various countries.
PurposeThe quest to reduce the cost of concrete which is a major construction input has prompted investigations into assessing the suitability of alternative sources of conventional materials. This ...paper aims to report the compressive strength and workability of lateritic gravel used as all-in aggregate for concrete production.Design/methodology/approachThree prescribed mixes from all-in aggregate concrete were compared with concrete from lateritic gravel. The paper investigated the variation in strength of four different mixes – 100: 0, 90: 10, 80: 20 and 70: 30 – when portions of the lateritic gravel were replaced with pit sand, respectively, using varying water cement ratios to achieve optimal workability.FindingsThe density and compressive strength of each cube was measured on the 7th and 28th test dates. An increase in slump and compressive strength was observed in the lateritic concrete, as portions of the lateritic gravel were replaced with sand. However, the rate of increase in the compressive strength tended to decrease with increase in part replacement of lateritic gravel with sand indicating that there was a threshold of percentage of sand increase after which the compressive strengths are likely to decrease. This work never reached this threshold, but it is estimated to be about 40 per cent.Research limitations/implicationsInvestigations focused on lateritic gravel sampled from two sites to represent samples from both the forest and savannah belt.Practical/implicationsLateritic gravel can be used as all-in aggregate for non-structural concrete.Originality/valueThe compressive strengths achieved were better than those for the available normal all-in aggregate used.
PurposeEffective procurement of infrastructure is partly dependent on infrastructure procurement personnel having the skills that are important for the discharge of their role. Addressing the ...infrastructure deficits in developing countries, therefore, calls for an understanding of the skills that are important for the discharge of the roles of public personnel that are involved in infrastructure procurement. This study aims to investigate these skills from the perspective of public infrastructure procurement personnel in the sub-Saharan African region.Design/methodology/approachA questionnaire survey of procurement personnel yielded 590 useable responses, which were analysed using t-tests and exploratory factor analysis (EFA).FindingsEFA established eight key components of important infrastructure procurement skills to include skills related to: project success factors; social and environmental sustainability; marketing and e-procurement; project phase management, the application of procurement laws and procedures; soft skills, ICT and communication; and data analysis and team building.Originality/valueThe findings are crucial in developing infrastructure procurement capacity building programmes that would be appropriate for infrastructure procurement personnel in developing country contexts. Infrastructure procurement personnel ought to engage more in capacity development training that is aligned to enhancing skills within the eight components.
Purpose
Being able to predict the likelihood of a project to overrun its cost before the contract signing phase is crucial in developing the required mitigating measures to avert it. Known parameters ...that permit the timely prediction of cost overrun provide the basis for such predictions. Therefore, the purpose of this paper is to develop a model for forecasting cost overruns.
Design/methodology/approach
Ten predictive variables known before the contract signing phase of a project are identified. Based on a survey approach, information on 321 educational projects completed are compiled. A multiple linear regression analysis is adopted for the model development.
Findings
Five variables – initial contract sum, gross floor area, number of storeys, source of funds and contractors’ financial classification are observed to influence cost overruns. The model, however, yields a fairly weak coefficient of determination with a mean absolute percentage error of 30.22 and 138 per cent, respectively.
Research limitations/implications
The model developed focussed on data only educational projects sampled from three out of the ten administration regions in Ghana based on a purposive sampling approach.
Practical implications
Policy makers and construction managers working on public projects stand to gain tremendous assistance in formulating and strengthening their own in-house cost forecasting at the precontract phase based on “what if” analysis to generate various alternative predictions of cost overruns.
Originality/value
Considering the innate nature of cost overruns within the Ghanaian construction industry often resulting to project abandonment, this research presents a unique dimension for tackling cost overruns based on a predictive approach.
Purpose
Ghana has recently reviewed its renewable energy Act 835 with an objective of providing 10% of its energy from renewables by 2020 (Ackah and Asomani, 2015). Meanwhile, solar Photovoltaic (PV) ...accounts for less than 2% of the energy mix (Energy Commission, 2018). In combating environmental issues such as climate change and meeting these policy targets, there is the urgent need to increase investment into the renewable sector. Therefore, the purpose of this paper is to critically examine the impeding constraints to photovoltaic investment in Ghana.
Design/methodology/approach
The Literature evaluation was carried out of critical constraints surrounding PV investments. Questionnaire was developed and administered online using Google form. Descriptive statistics was used to describe the features of each constraint. In addition, inferential analysis using relative importance index was used to rank these indicators. Again, one sample t-test was used to test the significance of the indicator. Multiple indicators were used to measure the latent constructs. Finally, independent test of mean equity was used to test relationship between the working experiences of despondence who have worked with solar PV below five years and those who worked from five years to ten years.
Findings
The research has highlights high installation and maintenance costs, lack of access to long-term capital finance, access to affordable consumer finance and lack of support to research and development as the major investment obstacles to solar PV investment in Ghana.
Research limitations/implications
It is recommended that the Government of Ghana should provide incentives such as tax waivers, which will encourage entrepreneurs, invest into PV. In addition, it is recommended that solar PV companies must collaborate with financial institutions to provide low interest and flexible consumer financing schemed that can enable home users to purchase the technology. Future research should complement this work by focusing on the impact of domestic currency volatility on PV investment. The scope of this study is constrained to the PV industry in Ghana.
Practical implications
This study will serve as a guide to the private sector business owners to help make critical PV investment decisions. It has also brought to the forefront the reason why solar PV account for a small fraction of Ghana’s energy mix.
Originality/value
This paper seeks to espouse the prevailing constraints to PV investment in Ghana and seeks to contribute to already existing literature that will make profound changes in state policy around PV investment. By understanding these difficulties, driving pointers can be recognized to encourage effective future venture inside the sustainable power source area. In this way, the research leads to a better understanding of the impeding factors that hinders PV investment in Ghana. Again, the paper has achieved new discovery with regards to variations between years of experience with PV use. The variation being less than five years with over five years of PV use. By understanding these difficulties, driving pointers can be recognized to invigorate effective future ventures.
PurposeThe purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case ...study.Design/methodology/approachIn this study, structured questionnaires were used to collect relevant information from the top management of construction and insurance firms in Ghana, comprising 50 industry professionals. The study adopted the χ2 and independent samples’ t test to interpret the responses from participants.FindingsThe study revealed the major risks that severely impacted the operations on complex construction projects, including strikes and labour disputes, long waiting time for approval of test samples, damages to property during construction, delay in payment to contractor for work done, poor construction method, pressure to deliver project on an accelerated schedule, labour shortage, permits delayed or take longer than expected, inaccurate materials estimating, change in weather pattern, low productivity of subcontractors and inadequate contractor experience.Practical implicationsThe study is expected to contribute to increase in the awareness of the insurable risks and policies that project participants are exposed to, which will serve as a decision-making tool for contract formation.Originality/valueThis study assists in managing construction and insurance firms to note the major risk in managing a complex construction project. In addition to knowing the major risks identified, the study investigates the insurable risk by managing both construction and insurance firms.
PurposeCredit market development requires appropriate credit assessment and default policies. This paper aims to examine the impact of household characteristics on mortgage default, using survey data ...collected from Ghanaian financial institutions.Design/methodology/approachData were gathered using semi-structured questionnaires from customers of five universal banks in Ghana. A logistic regression was used to model the determinants of credit default propensity.FindingsContrary to established knowledge, the study shows that females are more likely to default on credit than their male counterparts. This is even more likely if the female is older, unmarried, divorced and financially illiterate and has lower educational attainments. These factors are associated with lower earning capacity, which increases default tendencies. The findings confirm that price instability (typified by excessive movements in inflation and exchange rates in addition to low national savings rate) are adversely linked to credit defaults. Borrower’s perception of constraints to credit access (such as collateral requirements, interest rate and loan size) influence credit default. Banks should be encouraged to invest in the financial literacy skills development of their customers to mitigate credit default tendencies.Social implicationsThe study is of practical value to credit officers and the development of the credit market in Ghana. A novel model is presented for assessing credit applications and developing credit default policies.Originality/valueThe research findings have not only expanded the frontiers of literature but also empirically examined the determinants of credit default propensity, which provides a basis for developing and improving credit default policy in the credit market.
Purpose
While mortgage markets have gradually emerged in many African countries, substantial barriers still hinder their growth and expansion. Affordability has been widely cited as a prominent issue ...that doggedly remains at the core of urban housing problems. Hence, this paper aims to investigate the determinants of mortgage price affordability.
Design/methodology/approach
Data were gathered using semi-structured questionnaires obtained from a sample drawn from three major West African mortgage financing institutions. Respondents rated the variables using a five-point Likert item rating. The survey results were analysed using exploratory factor analysis.
Findings
In total, 11 variables that influence mortgage affordability were categorised within five principal components, namely, economic factors, financial factors, property characteristics, developmental factors and geographical factors.
Practical implications
The results provide insightful guidance to policymakers and practitioners on how to mitigate affordability issues within Ghana’s fledgling mortgage market. Failure to address the mortgage price affordability conundrum will place enormous pressure upon social housing and rental accommodation.
Originality/value
The research findings expand existing frontiers of knowledge by investigating and reporting upon the determinants of mortgage price affordability. The work also engenders wider debate on the need to establish mortgage packages targeted at low-to-middle-income earners. The culmination of analysis and debate will provide a robust basis for developing a future housing policy framework.
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