Variations in Building Construction Projects in Ghana: A Public Organisational Perspective

Akomah Benjamin Boahene (), Mustapha Zakari, Mensah Justice William and Lawson Roland William
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Akomah Benjamin Boahene: Department of Building Technology, Cape Coast Technical University (CCTU), Cape Coast, Ghana
Mustapha Zakari: Department of Building Technology, Cape Coast Technical University (CCTU), Cape Coast, Ghana
Mensah Justice William: Public Works Department, Cape Coast, Ghana
Lawson Roland William: Directorate of Physical Development and Estate Management, University of Cape Coast (UCC), Cape Coast, Ghana

Baltic Journal of Real Estate Economics and Construction Management, 2023, vol. 11, issue 1, 221-239

Abstract: The occurrence of variations in building construction contracts is a subject that needs some attention in public sector projects. They are, almost all the time, detrimental rather than beneficial variations. The paper aimed to identify the nature of variations in government-initiated building projects over fourteen years, from 2000 to 2014, in the Central Region and their impacts. Preliminary counts of documents revealed that a total of 348 projects were executed over the period. The data collection process started by first sorting out files, contract documents, and payment certificates for the period under consideration. These documents were scrutinised one after the other to detect possible variations. The inclusion criterion for selecting a project was if a project had any form of variation(s) recorded. After thoroughly examining these 348 project documents, 84 were found to have variations. The study identified additional works and substitutions as the most inherent variations in public building projects in the Central Region. About 85 % of the variations found in the 84 projects with various forms of variations were additional works and substitutions. It was revealed that the cost of multiple variations was higher than single variations. Projects with multiple variations had high percentage variation and durations than others. Percentage variation in some instances was 400 %. The study identified that multiple variations were more costly than single variations. The highest variation cost identified was (USD 211 864.41 or EUR 183 150.18) for one project. The study identified the nature of variations that usually occurred in government building projects and their association with both cost and time. The study asserts that the presence of multiple change orders has substantial financial significance and should be diligently avoided through efficient project initiation and planning.

Keywords: Building construction projects; cost; duration; percentage variation; types of change orders (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:bjrecm:v:11:y:2023:i:1:p:221-239:n:3

DOI: 10.2478/bjreecm-2023-0014

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