Landscape Architeture and Urban Design

The construction industry is a major consumer of capital resources by virtue of the magnitude, complexity
and nature of the works it executes. Yet improving cost performance still remains a chronic challenge
facing the construction industry worldwide. Apart from advances made by contractors to devise
mechanisms to manage project cost, studies across the world reveal that construction projects are hardly
completed within budget. The Zimbabwean construction industry has not been spared either. However, this
background is considered unhealthy for an industry whose capital consumption is heavy and concomitant
cost overruns spell disastrous financial consequences on the investor. This study explored cost management
strategies employed by contractors on building projects and also investigated the challenges that contractors
encounter in managing project cost. Exploratory research design was employed making use of both
questionnaires and interviews to collect data from selected contractors registered under category A, B and
C of the Construction Industry Federation of Zimbabwe (CIFOZ). The study observed that in the majority
of cases, contractors’ efforts to manage projects costs are centred on management of project resources.
Additionally, monthly cost reports, variance management, project budgets and cash flow forecasting are
among the other strategies. However, in spite of the growing trend to automate cost control systems, there
is evidence to suggest that the traditional paper based systems of storing and managing information is
widely used in the industry. Contrary to having cost management systems in place, contractors admit
experiencing cost overruns on their projects. These cost overruns are attributable to organizational related
challenges, shortage of skilled personnel, and unavailability of some building materials on the local market,
variations and deficiency in cost control systems.
Keywords: Construction, Cost management strategy, Cost overrun, Zimbabwe

The Zimbabwean construction industry, both in the private and public sector, is characterized by cost and time overruns. Whilst the causes are innumerable, labour productivity control, through use of effective work measurement techniques, is paramount as labour constitutes a considerable portion of any construction project. It is therefore expedient that an investigation of the work measurement techniques utilized by the industry be undertaken. Focus was made on the Midlands province, it being resident to a considerable number of mining entities undergoing building construction growth momentum on the back of significant investments since 2009. The survey was undertaken through use of interview administered questionnaires on Construction Industry Federation of Zimbabwe registered companies that are resident in the province and on those that have undertaken or are undertaking construction projects within the same province. Construction companies in the Midlands province have overwhelmingly, albeit inappropriately, used the estimating technique as alluded to by 95% of the respondents. The outputs generated from use of this technique are significantly different from the actual outputs directly causing time overruns on the project sites. The other methods of time study at 33%, work sampling at 10% and synthesis at 5% have been sparingly utilized. The results from the use of time study and work sampling in combination with the estimating technique are within the allowable limits and hence these projects have no time overrun concerns emanating from the use of these techniques.

The Zimbabwean construction industry, both in the private and public sector, is characterized by cost and time overruns. Whilst the causes are innumerable, labour productivity control, through use of effective work measurement techniques, is paramount as labour constitutes a considerable portion of any construction project. It is therefore expedient that an investigation of the work measurement techniques utilized by the industry be undertaken. Focus was made on the Midlands province, it being resident to a considerable number of mining entities undergoing building construction growth momentum on the back of significant investments since 2009. The survey was undertaken through use of interview administered questionnaires on Construction Industry Federation of Zimbabwe registered companies that are resident in the province and on those that have undertaken or are undertaking construction projects within the same province. Construction companies in the Midlands province have overwhelm...