Critical success factors for cost overrun minimization in public construction projects in developing countries: the case of Ghana
Abstract
Purpose
It is widely accepted that one criterion for determining if a construction project is successful is whether it is completed within the expected budget. There have been advancements in the management of building projects throughout time but cost overruns remain a key concern in the construction sector internationally, particularly in emerging economies such as Ghana. This study aims to answer the question, “What are the critical success factors (CSFs) that can assist reduce cost overruns in public sector infrastructure projects in the Ghanaian construction industry?”
Design/methodology/approach
This study used a quantitative survey method. The questionnaire was pre-tested by interviewing 15 contractors to ascertain the validity of the content. Factor analysis and multiple regression were adopted to analyze the data.
Findings
This study discovered that the critical factors that can reduce cost overruns in construction projects in Ghana are directly linked to five themes: early contractor involvement in the project planning stage, adequate funding, good project team relations, competent managers/supervisors and project participant incentives/bonuses. This study identifies indestructible, empirically measurable important success criteria for reducing cost overruns in public building projects in Ghana.
Practical implications
When well thought through from the project initiation stage to completion, these critical successes can also be used to deal with damaging economic effects such as allocative inefficiency of scarce resources, further delays, contractual disputes, claims and litigation, project failure and total abandonment.
Originality/value
The uniqueness of this research resides in the fact that it is, to the best of the authors’ knowledge, a first-of-its-kind investigation of the CSFs for reducing cost overruns in public building projects in developing countries.
Keywords
Acknowledgements
The authors are extremely grateful to the Editor-in-Chief, Associate Editor, and Referees who provided constructive and invaluable comments and suggestions to significantly improve the quality of this paper. It is worth to inform that the first and second author have changed the affiliated institutions to the following respectively: “Building Technology Department; Kumasi Technical University; Kumasi, Ghana” and “Division of Construction, Property and Surveying; School of Built Environment and Architecture; London South Bank University, London, UK”.
Citation
Nuako, F., Ghansah, F.A. and Adusei, T. (2024), "Critical success factors for cost overrun minimization in public construction projects in developing countries: the case of Ghana", Construction Innovation, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CI-07-2022-0176
Publisher
:Emerald Publishing Limited
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