Assessment of cost performance of building construction projects in Tanzania

Tanzania Construction Industry is very instrumental in pushing ahead the national development, and that is truly the engine of the national economy. Now-a-day it is facing severe problem of poor cost management resulting in huge amount of cost overrrium with the average increase in the price of works contracts of almost 30%. Aim of this study was to assess cost performance of building construction projects in Tanzania with the objectives in Tanzania and formulation of possible recommendations for improving construction cost performance of building projects. Through well-designed questionnaires, this study has found that improper design; delays in decision making frequent design changes, poor design and delay in design, poor project management, mistakes and errors in design and contractual claims are the most critical factors influencing cost overruns. Also the study has indicated that the change in the scope of the project, inadequate monitoring and control, lack of financial management and planning, variations and inaccurate time and cost estimates were among the factors causing cost overruns for building projects. The study recommends consultants to make sure they act professionally by providing detailed and complete design, properly administering of contract, quick response on design decisions as well as proper estimation of time and cost. Clients are recommended to hire reputable and experienced consultants and project managers, and experienced contractors; they should not involve in project activities, but they should leave consultants to do their work.