Towards improvement of cast management practices in construction projects

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University of Dar es Salaam
Cost management practices have been faced with a number of challenges such as cost overruns which result in suspension or incomplete construction projects. This dissertation has hinged its essence on improving cost management practices by conducting comparative study on the practices of Tanzanian and German construction industries to identify and evaluate the performances of the cost management techniques and approaches applied in order to suggest strategies for future improvement. A total of 36 construction industry professional gave their views in Tanzania whereas six professionals from the German construction industry were consulted. The study established that cost estimation is performed at preliminary and after design stage of projects. Seventy two percent of the professionals use both preliminary and detailed estimation methods in Tanzania. The degree of accuracy of estimates depends on available information and experience of the individual estimator as information on previous projects is largely missing in Tanzania. Professionals who have used mathematical models (36% of those interviewed) considered them very good for cost budgeting. Computer software for cost estimation and cost management in general is hardly used in Tanzania due to unavailability and lack of skills. In Germany, the same cost estimation methods are used but with different approaches. There are standard guidelines which show how to perform cost estimations and cost control at each projects stage, and cost information of previous projects are readily available in electronic database and printed books. It has been concluded that cost management practices in both construction industries were almost similar in approach. The process in Germany is however more systematic with clear guidelines. The study recommends, as a strategy for improving cost management practices in Tanzania, to establish databases of previous project cost information; to establish standard guideline for cost estimation and cost controls; and to have continuous professional development programmes to build up the capacity of the professionals on use of cost models and application of cost management software and a broader view of cost management aspects.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class Mark (THS EAF HD9715.S25)
Construction industry, Management, Costs
Samizi, M (2008) Towards improvement of cast management practices in construction projects, Master dissertation, University of Dar es Salaam