Relative importance of triggers influencing cost contingency determination for building contracts - the perspective of quantity surveyors

2021

English

The main purpose of contingency sum is to mitigate the effect of uncertainties and construction variations during the execution of the project. Studies indicated that the estimation of contingency sum is associated with challenges, where some contractors consider contingency as part of their profit and this has resulted in disputes amongst consultants and contractors. Researches in developing economies (Ghana) have focused on the generic determination of cost contingency with little on the perspective of quantity surveyors who are the main players in the determination of contingency. The aim of this study was to identify the main triggers influencing the determination of contingency sum for building works from the perspective of Ghanaian quantity surveyors. Through literature, triggers were analyzed and ranked with relative importance index, also, Kendall’s coefficient of concordance was used to measure the degree of agreement amongst public and private quantity surveyors. Though all the categories were relevant, economic, exogenous and technical were paramount. Taxation was among the least influential triggers. This study provides information for players in building sector on triggers that require attention and also help them establish their own cost data, which will assist Quantity Surveyors and policy makers in their budgetary preparation for future projects.

Asamoah, R. O.; Offei-Nyako, K.; Ampofo-Twumasi, K.