scholarly journals Determinants of Building Construction Costs in South Africa

2017 ◽  
Vol 1 (1) ◽  
pp. 8-13
Author(s):  
Abimbola Windapo ◽  
Sunday Odediran ◽  
Alireza Moghayedi ◽  
Abdul Adediran ◽  
David Oliphant

Completing project within cost is the target of most clients on any construction project. However, the achievement of this desire is just an imagination in the construction industry, because procurement and execution environments for projects are hostile and unpredictable. This study examines the determinants of building construction costs in South Africa and whether changes in the cost of certain resource factors such as construction equipment, labour and materials can be related to changes in building construction costs. The study employs a longitudinal cross-sectional quantitative research design approach and makes use of literature review and historical data obtained from institutional and governmental databases to identify the determinants. The data collected were analysed using time series analysis to confirm the trends in the cost of the resource factors and its alignment to the changes in building construction cost. After that, it makes use of an appropriate predictive modelling tool or causal analysis in establishing the determinants of construction cost. The results show that the price indices of construction equipment (EI), labour (LI) and materials (MI) have a gentler slope when compared with the Building Cost Index (BCI). It also emerged that later levels of the BCI are significantly and positively related to EI. The findings infer that the key determinant of increase in building construction costs in South Africa is equipment costs. Contractors and public or private sector clients in South Africa must utilize construction equipment optimally on projects, and these pieces of equipment should not be left idle on project sites or plant yards. Appropriate provisions should be made of equipment utilization policies which allow the joint ownership of equipment by contractors to mitigate the problems of cost increases. There are widely unexamined assumptions as to what resource factors are responsible for the growth in building construction costs in South Africa. Also is the similar high risk and uncertainty affecting the South African construction industry as a result of these fluctuations. The results of the study extend the knowledge of the resource factors responsible for building construction costs increases.     

2013 ◽  
Vol 2013 ◽  
pp. 1-5 ◽  
Author(s):  
Sangyong Kim ◽  
Joon-Ho Moon ◽  
Yoonseok Shin ◽  
Gwang-Hee Kim ◽  
Deok-Seok Seo

The objective of this research is to quantitatively measure and compare the environmental load and construction cost of different structural frame types. Construction cost also accounts for the costs of CO2emissions of input materials. The choice of structural frame type is a major consideration in construction, as this element represents about 33% of total building construction costs. In this research, four constructed buildings were analyzed, with these having either reinforced concrete (RC) or steel (S) structures. An input-output framework analysis was used to measure energy consumption and CO2emissions of input materials for each structural frame type. In addition, the CO2emissions cost was measured using the trading price of CO2emissions on the International Commodity Exchange. This research revealed that both energy consumption and CO2emissions were, on average, 26% lower with the RC structure than with the S structure, and the construction costs (including the CO2emissions cost) of the RC structure were about 9.8% lower, compared to the S structure. This research provides insights through which the construction industry will be able to respond to the carbon market, which is expected to continue to grow in the future.


2019 ◽  
Vol 11 ◽  
pp. 184797901988006
Author(s):  
Linlin Zhao ◽  
Jasper Mbachu ◽  
Huirong Zhang

Construction cost index has been widely used to prepare cost estimates, budgets, and bids for construction projects. It can also be regarded as an indicator of cost level, which makes it valuable to public authorities for understanding the conditions in the construction industry. Accurate forecasting of future construction cost index is essential for construction industry at both micro- and macro-level. To improve the accuracy of the cost forecasting, time series modeling techniques are adopted in this study. The performance of the exponential smoothing models and seasonal autoregressive integrated moving average (ARIMA) models for forecasting the building cost of five categories of residential building (one-story house, two-story house, town house, apartment, and retirement village building) in New Zealand is compared. Exponential smoothing models can produce more accurate forecasts for cost series of the one-story house and two-story house in New Zealand, while seasonal ARIMA models outperform exponential smoothing models across the cost series for town house, apartment, and retirement village building. This study contributes toward the development of the current state of knowledge in the area of cost index forecasting for New Zealand and provides insights that should be valuable from the practitioner perspectives.


2021 ◽  
Vol 25 (1) ◽  
Author(s):  
Khanyisa N. Mrwetyana ◽  
Jacques Janse van Rensburg ◽  
Gina Joubert

Background: South Africa has high healthcare expenses. Improving cost-consciousness could decrease government expenditure on healthcare.Objectives: To determine cost awareness of radiological studies among doctors at a tertiary hospital. The objective was met by assessing the accuracy of cost estimation according to the level of training and speciality, whether participants had received prior education/training related to cost awareness and if they had a desire to learn more about the cost of radiological imaging.Method: A cross-sectional survey was conducted in six clinical departments at Universitas Academic Hospital using an anonymous questionnaire that determined doctors’ cost awareness of five radiological studies. Each radiological study was answered using six different cost ranges, with one correct option. Costs were based on the Department of Health’s 2019 Uniform Patients Fee Schedule (UPFS).Results: In total, 131 (67.2%) of 195 questionnaires distributed to registrars and consultants were returned. Overall, low accuracy of cost estimation was observed, with 45.2% of the participants choosing only incorrect options. No participant estimated all five costs correctly. Only the Internal Medicine clinicians demonstrated a significant difference between registrars and consultants for the number of correct answers (median 0 and 1, respectively) (p = 0.04). No significant differences were found between specialities stratified by registrars/consultants. Most participants (88.6%) would like to learn about imaging costs. Only 2.3% of the participants had received prior education/training related to cost awareness of radiological studies.Conclusion: Doctors were consistently inaccurate in estimating the cost of radiological studies. Educating doctors about the cost of radiological imaging could have a positive effect on healthcare expenditure.


2021 ◽  
Author(s):  
Francis M’bouaffou ◽  
Eric Buch ◽  
Evelyn Thsehla ◽  
Steve Olorunju

Abstract Background: South Africa has a dual healthcare system comprised of private and public sectors covering 16% and 84% of the population, respectively. Medical schemes are the primary source of health insurance in the private sector. The aim of this study was to assess the perceived knowledge and satisfaction of open medical schemes members. Methods: A cross-sectional survey was conducted using a stratified systematic sample of members from 22 open medical schemes. Nine hundred and sixty members were requested to complete an online semi-structured questionnaire to determine their perceived knowledge and satisfaction with their schemes. We tested to see if variables such as age, gender, years of membership, education, income or having a chronic disease were associated with better-perceived knowledge or satisfaction. We calculated a composite perceived knowledge and satisfaction score, for which a score above 60th percentile for perceived knowledge and 60th for perceived satisfaction were considered good perceived knowledge and good perceived satisfaction with their schemes.Results: Respondents, generally perceived themselves to have good knowledge and were satisfied with their schemes except for accessibility to doctors under the designated service providers arrangement. Overall, members were satisfied, especially with the quality of service from their designated service providers (DSPs) and their schemes. However, only 9% were satisfied with accessibility to doctors under their DSP arrangement, 25% were satisfied with the cost of scheme membership and only 46% were satisfied with the prescribed minimum benefit package. The test for association showed that years of medical schemes membership, perceived knowledge of the prescribed minimum benefits, better income and laying a complaint were associated with better-perceived knowledge. Conclusion: Medical schemes remain a key element of private healthcare in South Africa. The analysis shows that medical schemes, should put more effort into the accessibility of general practitioner under their designated service providers. Furthermore, the PMBS should be reviewed to provide a comprehensive benefits basket without co-payment for members as recommended by the Medical Schemes Act Amendment Bill of 2018.


2014 ◽  
Vol 600 ◽  
pp. 638-647
Author(s):  
Marina H.S. Santos ◽  
Albéria C. Albuquerque ◽  
Juzélia S. Costa

The project aims to use waste generated in the building construction industry as aggregate for use in artificial artifact of cement, replacing natural aggregate. We investigated the development of mechanical strength of bricks made ​​from construction waste, compared to a reference sample without residue. In this investigation were used mechanical, physical and chemical tests contained in current technical standards. The results demonstrated the viability of this product for masonry sealing. The feasibility of the product, reducing the cost and environmental impact justifies the relevance of the project.


2018 ◽  
Vol 2 (2) ◽  
pp. 42-50
Author(s):  
Abimbola Windapo ◽  
Alireza Moghayedi ◽  
David Oliphant ◽  
AbdulRauf Adediran

This study examines the components of construction projects and whether there are construction resources that are the key project constituents. The rationale for the study stems from the unexplained assumptions regarding the primary components responsible for increases in construction costs in South Africa, as South Africa lacks a national building cost database. The study adopts a qualitative research approach that employs a case studies of six new and six refurbished projects in obtaining the necessary data for use in answering the study objectives. The study found that the primary cost constituents of construction projects are materials and sub-contracted work, accounting for 63.69% and 74.6% of the value of renovation and new construction work respectively and on the average, the major materials by value are reinforcement, cement and filling, while Electrical Installation is the primary sub-contracting item by value. Based on these findings, the study concludes that the future levels of construction work can be predicted knowing levels of specialist sub-contractor costs and building material costs. The study recommends that the sub-contractor and material inputs into construction projects are carefully managed, both on the projects and the construction industry, to limit construction cost increases and cost overruns on projects. The study contributes to the literature on resource planning and control in construction. Keywords: Cement, Construction Cost, Electrical Installation, Reinforcement, Specialist Sub-contractor.


Author(s):  
Prof. Amit Kale

Abstract: A construction project of any building is mainly based on 3 important steps that are planning, Cost Estimation of the building and proper execution of construction of the building. Construction cost estimation has the lion’s share of the research effort in construction management. The Objective is to analyze the effectiveness of various cost estimation methods by comparing traditional and various online websites. This study will provide more accurate estimates that save time and minimize errors. The research conducted will be helpful for estimation of construction, also proving how the introduction of IT sector in construction industry is turning out to be beneficial. Keywords: Estimation, Construction Management, Online Websites, minimize errors


Author(s):  
Bett Barnabas ◽  
Simiyu John ◽  
Dimo Herbert

Despite a number of challenges, training institution Kenya has produced structural engineers in the building and construction field. As a result, there have been problems facing these apprentices that have led to questions concerning their competencies in the Kenyan building and construction industry. Mitigating such foreseeable problems, require proper policy planning, which can only be enacted after findings of facts have been adduced. The purpose of this study was therefore to determine the challenges facing university trained structural engineers in the construction industry in Kenya. The research design in the study was cross-sectional survey research design. Purposive sampling was employed in collecting the data. The study population comprised practicing structural engineers trained at the universities offering building construction, civil engineering and structural engineering. Questionnaires were used to collected data from the sampled respondents in the building industry. Proportional analysis techniques and statistical chi-square test was used to analyze the data. Information on problems facing the engineers and perception of the engineering graduates concerning university training were collected from 89 Kenyan university trained practicing Structural engineers. The data collected was analyzed using the Statistical Package for Social Science (SPSS 23.0) presented inform of descriptive statistics, bivariate correlations, frequency distribution, cross-tabulation and Chi-square (c2) tests. The results obtained revealed that, graduates had problems related to initial choice of the course, for which they did not have interest in and hence poor content coverage. These results demonstrate the need for establishment of a clear policy aimed at regulating the learning resources for structural engineers at the universities appropriately. Moreover, there is need for standard resources for the teaching of the programme and the need for higher educational funding scheme for research in the universities.


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