Comparative assessment of construction cost overruns: A case study of regional distribution in Ghana

Abstract

This study examines the magnitude of variance between the initial contract award cost and actual completion cost of building construction projects (educational related) from Ghana that were completed between 2011 and 2016. The findings brought differences in the actual completion cost and initial contract award cost with a mean of 23.7% cost overrun for the projects ranging from 0.2% to 95.9%. In real monetary value, the cost overrun for the projects was GH¢47,651,489.00. Out of the 911 data of completed projects analyzed, the duration of construction averages 9 months with an average cost of GH¢164,569.20 per project. The vast majority of projects (95.9% representing a total of 874 projects experienced overruns, while two (2) projects were completed below the initial contract award cost. Projects, which were executed in the Central Region and the Upper East Region were most susceptible to cost overruns and had the largest number of projects (100%) affected by cost overruns. Upper West Region experienced the least number of projects (87.5%) affected by cost overruns. Volta Region had the largest number of projects (14) completed within the initial budget, the Central Region and the Upper East Region had no projects completed within the initial budget.