A model for predicting cost control practice in the Ghanaian construction industry

One of the key roles of construction project managers is to execute construction projects within the targeted project cost. In Africa, most construction projects suffer huge cost overruns. Project cost control practice is required by every construction firm to keep the project cost in line with the budgeted cost. A comprehension of the different parts of cost control philosophies is fundamental to empower project cost managers to adequately set up robust cost controls and to improve future strategies for active construction project cost delivery. Although there are efforts by project cost managers to control cost, there is a lack of understanding of the factors that determine cost control practice in Ghana, as a developing nation. The factors enhancing cost control practice and a formal model are needed for consideration by project cost managers to guide their operations. This study develops a model for predicting cost control practice in the Ghanaian construction industry. Mixed-method methodology was utilised for this study. The qualitative survey used the Delphi survey approach to investigate the primary factors and measurement-related factors. The study identifies project cost control as eight-factor constructs: project cost estimation, project cost budgeting, project cost reporting, project cost monitoring, project cost analysis, decision-making, change management and project cost communication. These had strong inter-quartile deviations. The preliminary discovery from the literature shows lack of change management and project cost communication concepts in cost control practice. These concepts are significant in predicting cost control practice of contractors. Both the Delphi survey and the factor analysis confirmed the eight-factors for cost control practice. The relationships of the related factors are presented in this study. The regression analysis indicates two latent constructs, project cost monitoring and decision-making to be good predictors of cost control practice of contractors. The findings contributing to the body of knowledge were categorised under four sections, project cost control model, theoretical, methodological and practical. The results of both the Delphi survey and factor analysis confirm that cost control theory has eight-factor constructs. The data collected were validated. The relationships of the variables and the outcomes of cost control practice are presented. The key issues on cost control practice and the results of this investigation lead to direct recommendations for further research under the project cost control model, the theoretical, methodological and practical aspects. The recommendations include expanding the developed model to include more variables in future studies to improve cost control practice. Moreover, research should be carried out on all the variables to determine their relationships and the fitness of the model, using a two-stage approach, including structural equation modelling. Contractors should, wherever possible, provide training to site management team members to adopt and appreciate the need for cost control practice.