PROCUREMENT GUIDELINES FOR PROJECT SUCCESS IN COST PLANNING OF CONSTRUCTION PROJECTS

• Main Author: Ramabodu, Molusiwa Stephan
• Other Authors: Dr MM Campbell
• Format: Others
• Language: en-uk
• Published: University of the Free State 2014
• Subjects: Quantity Surveying and Construction Management
• Online Access: http://etd.uovs.ac.za//theses/available/etd-08202014-100045/restricted/

A number of factors contribute to cost overruns and delays in projects, some within the control of the project team, most of them not. These cost overruns and delays lead to additional costs and loss of productivity on work sites because of time lost. These factors are also not limited to certain regions, but occur in similar projects across the globe. Optimism bias and strategic misrepresentation are identified as the main causes of cost overruns in construction projects, estimates and costs. While the estimation process for this type of project is very complicated, certain techniques have been developed to assess risk and to plan for contingency for these types of problems. This is significant because the cost performance of construction projects is a key success criterion for project sponsors, since construction projects are notorious for running over budget. The concept of cost contingency, estimates, cost overruns, procurement, risk management and value management will be dominant in this study. The aim of this study is to propose a project flow chart model. When followed correctly, this model can reduce the risk of project overrun from the cost plan point of view. The results of the research indicate that the estimator must have the experience and skill to be able to produce accurate estimates. A model is proposed to guide the estimators on what to do before they can start with the estimating process.