Framework for effective management of cost constraint on building project delivery in South Africa

Abstract

According to findings presented in literature, construction projects are restrained within budgeted cost. Hence, the operational system is challenged within prohibitive cost limits to deliver projects at a stipulated time and at a satisfactory quality. This has prompted the intention of establishing effective management of cost constraint on building project delivery in South Africa. Data for the main study were collected through observations, semi-structured and unstructured qualitative interviews and quantitative close-ended questionnaires administered to construction stakeholders working in the Western Cape and Gauteng provinces, South Africa. Findings are that the following are factors that affect cost during building production process: additional works without contractual procedure, inadequate co-ordination of design phase and construction phase during production by project managers, financial mismanagement, frequent changes in design, cost of materials in the market, fluctuation of price of materials. Additional findings are proper monitoring and controlling at stages during production, procurement of competent contractors and subcontractors, involvement of experienced professionals in production, proper briefing by the client during production process, targeting quality during production, prompt decision taking during production, and the establishment of effective communication systems on site during production, frequent changes in building design by the client during production affect construction cost; frequent changes in building design during production cause rework; changes in building design during construction caused by errors and omissions detected affects quality of project delivered; and specification due to procurement of new materials during construction causes changes in building design, labour productivities, wrong planning for machine usage on site, late delivery of equipment during production and unanticipated increases in prices of building materials. Late delivery of materials also affects production process. Regular meetings on site will promote efficient productivities of human resources, team work on site during production, general progress reports on site during production, projects schedule/timetable for production and work programmes for site activities. The study concluded by recommending that proper adoption of these findings by the South African construction stakeholders during production processes will enhance delivery of building projects at reduced construction resources, at the standard of quality expected, at the time stipulated, at the budgeted cost specified, and to the satisfaction of the client. Interest will be achieved as illustrated under each objective of the research study. This research recommends further investigation of the effects of building material supply management during production processes in the South African construction industry.