Construction cost estimating in Ghana

An estimate is an important part of a construction contract. It forms the basis of the price upon which a contract is let. But also, it could be a potential source of dispute between the parties to a construction contract, especially when changes occur and more cost is incurred. Therefore the preparation of an estimate should not be treated as a light matter. Clients should take the right and necessary steps required to obtain a good estimate of the likely project cost. This requires a sound quality of design, skilled estimating, and a sound framework within which the estimate is prepared.

In Ghana, the estimate for a construction project is often prepared by Quantity Surveyors (QSs) who have often graduated with a degree in Building Technology from the Kwame Nkrumah University of Science and Technology, Kumasi (Badu and Amoah, 2003). There are also some practising QSs who graduate from a number of polytechnics across Ghana, with a Higher National Diploma (HND) in Building Technology (Fugar and Adinyira, 2009) or a Construction Technician Course (CTC) Certificate. Most QSs in Ghana endeavour obtain membership with the Quantity Surveying (QS) Division of the Ghana Institution of Surveyors (GhIS). However, the GhIS does not regulate the practice of Quantity Surveying in Ghana in the same way that is done by its affiliate bodies like the Ghana Institute of Architects (GIA) and Ghana Institute of Engineers (GhIE) who regulate the practice of Architects and Engineers respectively in Ghana on the basis of the Professional Bodies Registration Decree 1979 (NLCD 143), the Architects Registration Council Decree 1969 (NLCD 357) and the Ghana Institution of Engineers Act 1969 (NLCD 404). This means that practically anyone can practice as a ‘Quantity Surveyor’ in Ghana. The GhIS has for many years sought to obtain the requisite legislation to enable it regulate the practice of the QS profession in Ghana. However, this has not happened yet, and is probably not likely to happen, partly due to a changing times in the construction profession market in Ghana and lack of strong organisation and foresight on the part of the institution.

One perennial problem in Ghana when it comes to construction is the quality and reliability of estimates provided by QSs. Most projects in developing countries, including projects in Ghana, end up grossly over-budget and over-time (Baloi and Price, 2003). There are several reasons for this, and some of them are partly to be shared with Architects and Engineers in Ghana who rarely provide the detailed design and specifications needed to estimate and price a job well. But also one reason seems to be the apparent lack of experience on the part of some QSs when it comes to understanding the actual detailed processes of construction on site and what clients actually want. These two factors are important in achieving a good estimate of construction cost. The aim of this paper was to find out about the reliability of estimates provided by QSs in Ghana and, in terms of deviations between estimated and actual costs of work, and to ascertain whether estimators in construction firms provide a better estimate of construction cost and time than estimators in consultancy firms.

Full paper is available upon request.

References

Badu, E. and Amoah, P. (2003). “Quantity Surveying in Education in Ghana”, The Ghana Institution of Surveyors, in conjunction with the Africa Association of Quantity Surveyors and the International Cost Engineering Council (Region 3- Africa) International Conference, July 7-10 2003 at Accra. Published in INTERNATIONAL ROUNDUP: The Electronic Journal of the International Cost Engineering Council (www.icec@coste.org) and reprinted in the Gh.I.S. Quantity Surveying Divisional Newsletter, Issue 1 – 2003.

Baloi, D. and Price, A. D. F. (2003) Modelling global risk factors affecting construction cost performance, International Journal of Project Management, 21(4), 261-269.

Fugar, F.D.K and Adinyira, E (2009) Quantity Surveying Education in Africa: The Role of Stakeholders in Sustaining Professionalism, The Building Economist, September 2009 issues, 25-30. ISSN: 0007-3431.