Open AccessImproving the efficacy of cost contingency plans for construction projects in South Africa
Author(s) -
Opeoluwa Akinradewo,
L. Ngwenya,
Clinton Aigbavboa,
Wellington Didibhuku Thwala,
L Mphela
Publication year - 2019
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/640/1/012030
Subject(s) - cost contingency , cost overrun , contingency plan , contingency , risk management , project management , plan (archaeology) , cost estimate , risk analysis (engineering) , construction management , project risk management , project planning , identification (biology) , contingency table , business , operations management , project management triangle , engineering , computer science , construction industry , construction engineering , civil engineering , finance , geography , computer security , systems engineering , linguistics , philosophy , botany , archaeology , machine learning , biology
The use of cost contingency in construction projects provides a lucid and lively recognition of upcoming/impending challenges of cost overrun in delivering the construction project thereby giving room for project delivery to cost. The aim of this study is to evaluate how the efficacy of cost contingency plans for construction projects can be improved. This study adopted the use of a quantitative research approach with the use of questionnaire structured to capture the perceived measures of improving the efficacy of cost contingency plans for construction projects. The study harnessed information from Construction Managers/Project Managers, Contract Managers and Quantity Surveyors in Gauteng Province, South Africa. Data retrieved was analysed using mean item score, standard deviation and Kruskal-Wallis H-test. This study was limited to Gauteng province in South Africa due to time and cost constraint. The findings showed that the three most effective measures of the efficacy of cost contingencies in construction projects are assessing risk possibilities, assessing risk impact, and identifying project risk and uncertainties. The study concluded that cost contingency plan can be improved when risks are adequately assessed together with their impact on the construction project. By recommendation, identification; definition; and evaluation of risks is a paramount activity which project professionals must embark upon before a construction project can commence.