Study on Potential Cost Reduction Mechanisms in 20/80 Condominium Building Projects in Addis Ababa
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Date
2018-10
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AAU
Abstract
In construction industry the main objective of project control is to ensure that projects are
completed on time, within budget and quality. In Ethiopia, building construction industry
there are many problems associated with quality, time and cost of project. Cost is the main
concern for contracting parties and end user. Ethiopian condominium housing program is
designed with the objective of reducing the overall cost of buildings. However, there are
arguments on condominium housing projects being implemented whether it addresses the
desired cost reduction or not. On the other hand, reduction of cost of construction is very
important for all contracting parties and end user.
The main objective of this study is to investigate potential cost reduction mechanisms on
20/80 condominium building construction sites. The study was conducted by selecting two
20/80 condominium building project sites and it presents the current practices of
contractors, consultants and client, who are working in 20/80 condominium building
projects, related with cost of project and some issues related to potential cost reduction
mechanisms. The practice of 54 general and building contractors, 8 consultants and 8 client
representatives were investigated via site observation and interviews. Furthermore, the
existing practices related to potential cost reduction mechanisms and cost influencing
factors were assessed as part of fulfilling the objectives of this thesis.
The result of study showed that delay of construction activities, market conditions, method
of procurement, site overheads, productivity of labor, resource and service availability,
labor cost, project program, the nature of the site and cost of design are the major ten
factors that affect cost of project. In addition, the study indicated that more than 50% of the
contractors were not checking their performance regularly and frequently. The case study
results on the construction sites also indicated that most of the contractors have poor
materials handling and management problems, do not apply metal shoring and scaffolding
and ready-mix concrete. Furthermore, most of the contractors use poor quality formworks
and the partially prefabricated building components were of poor quality and are exposed to
wastage.
On the contrary the study indicated that, checking performance daily and regularly, good
materials handling and management practice, using prefabricated building components and
using metal shoring and scaffoldings instead of eucalyptus wood shoring and scaffoldings
can reduce construction time and unnecessary expenses. In addition, using ready mix concrete reduces construction time and wastage of concrete making materials and improves
quality of concrete, which as a result reduces construction project cost. Furthermore,
constructing by using good quality formworks will make the concrete to have good surface
finish which as result reduces cement plastering and cost of project.
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Keywords
Cost, Cost Influencing Factors, Potential Cost Reduction Mechanisms