Cost performance prediction model for construction projects in Tanzania a case study of water projects

Construction projects are very important in social economic development of any country. However construction projects in Tanzania have a poor track record of meeting costs; most of them are characterized by significant cost overruns. The problem could be the lack of a systematic construction project cost performance management system. This dissertation, Cost Performance Prediction Model for Construction Projects in Tanzania: A case study of water projects tries to solve the problem by developing a model that will help predict the cost performance of Construction projects using factors that affect cost performance of construction projects. The top ten factors out of the 18 priority factors, identified from seven researches done previously, were selected as critical factors to be used in the model. The model required data on costs of critical factors as independent variables and cost overrun as a dependent variable which was collected from 31 project documents of Water projects undertaken between 2002 and 2009. The cost overruns and their respective costs from factors of cost performance were analysed by a regression model using SPSS program and the Cost performance, model for construction projects was developed as: Co = 1.551 + 0.989 Pc +0.952Vc +0.906Us + 0.975Ae + 2.013Pd + 4.61948 In conclusion, the dissertation was able to develop a model that predicts cost performance of construction projects given certain factors inherent in the project delivery process or environment. It then recommends that the model developed be used in construction projects to plan and control costs.