An Evaluation of Pre-Contract Cost Planning Process for Building Projects in Tanzania

Abstract

This research paper is about evaluation of the pre-contract cost planning process for building projects in Tanzania. Relevant literature was reviewed and analyzed by testing the views of practicing and consulting architects, engineers (both structural and services) and quantity surveyors on the pre-contract cost planning process (PCPP) for building projects against existing models/practices/frameworks/mechanisms. Data collection tools were questionnaire survey and in-depth interviews. A total of 55 questionnaires were distributed of which 34 questionnaires were returned equivalent to 63.7 per cent success rate. Similarly, a total of 22 interviews were conducted.

Findings showed that the pre-contract cost planning process is done in different approach not consistent to principles. Key stages to the pre-contract cost planning role are skipped in the process. Another weakness includes lack of close cost monitoring of design variables. However, though inadequate cost planning is a leading factor towards cost overrun, other factors were also identified contributing to the problem. The study has recommended for a need to raise adherence to professional accountability, improve statutory mandates and introduce professional indemnity insurance, increase collaborative efforts between clients, consultants and related project stakeholders.