An assessment of the factors that influence construction cost fluctuations of private projects in Kampala
Many projects experience cost fluctuation and thereby they are either below or exceed initial contract amount. In Kampala, the number of public building construction projects is increasing from time to time. However, it becomes difficult to complete projects in the allocated cost and time. Taking into account the scarce financial resources in the country, contract price fluctuation is one of the major problems in Uganda’s construction industry. Therefore, this research was carried out to dig-out information on the factors that cause cost fluctuation during construction, their effects and the mitigation measures on private building construction projects in Kampala. Questionnaire survey together with case study was used to collect data on cost fluctuation on private projects. A total of 52 questionnaires from quantity surveyors were collected and a case study of 10 private building construction projects in Kampala were investigated and analysed using both descriptive and inferential statistics. From the results it was found that 60% out of private building construction projects suffered cost overrun, 25% projects are completed within the estimated cost and 15% are delivered below budget. The extent of budget overrun was found out to be 15% in private projects and the saving was 7.5% for those projects finished below budget. Respondents identified 32 causes of cost fluctuation in Kampala’s private projects. The most important causes of cost fluctuation were found to be design changes, inflation or increase in the cost of construction materials, poor planning and coordination, The most common effects of contract price fluctuation identified by this research were; time overrun, project abandonment in case of high budget overrun, frustration on stakeholders, dissatisfaction by project owners and consequently by end users, delivery of low quality works and delayed payments to contractors in case of cost overrun, it is hoped that these findings will guide efforts to improve the performance of the construction industry in the future.