Cost Management Practices and Cost Performance: The Analysis of Public Building Construction Projects in Tanzania

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Neema Shabani and Innocent Musonda

DOI:

Keywords: Cost Control, Cost Estimation, Cost Management Practices, Cost Overrun, Public Construction Projects.

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ABSTRACT

PURPOSE

Persistent cost overruns in construction projects require investigation of the cost management practices. Negative impacts of cost overruns include project delays, conflicts, abandonment, and client dissatisfaction. This study aimed to determine the characteristics of cost management practices in public building construction projects (PBCP) and the level of cost performance.

DESIGN / METHODOLOGY / APPROACH

The study surveyed 35 completed PBCPs in Dar es Salaam, Tanzania, utilizing questionnaires from project quantity surveyors, and used descriptive data analysis.

FINDINGS

Over 50% of PBCPs have cost overruns exceeding 15% of their approved budgets. Best cost management practices, such as utilizing probability methods of estimation and allocating contingency allowances using systematic approaches like Monte Carlo simulation, conducting value management throughout construction, and using cost management software and technology such as BIM, are less practiced, putting projects at risk of cost overrun and poor performance.

RESEARCH LIMITATIONS / IMPLICATIONS

Understanding cost management practices and project performance will improve practice, project performance, and industry success.

WHAT IS THE ORIGINAL / VALUE

The understanding of the nature of cost management practices by quantity surveyors and other project team members can enhance the practice and project performance.