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Abisuga, O A, Ogungbemi, A O, Akinpelu, A A and Oshodi, O S (2017) Assessment of building maintenance projects success factors in Lagos, Nigeria. Journal of Construction Business and Management, 1(1), 29-38.
Adu, E T, Lamptey-Puddicombe, A D and Opawole, A (2020) Consultants' perspectives of survival strategies for small and medium construction firms at infancy stage. Journal of Construction Business and Management, 4(1), 34-47.
Aghimien, D O, Awodele, O A and Maipompo, C S (2019) Organisational commitment of construction skilled workers in selected construction firms in Nigeria. Journal of Construction Business and Management, 3(1), 8-17.
Aiyetan, O A (2019) Influence of the management styles and quality of management on project delivery. Journal of Construction Business and Management, 3(1), 38-44.
Akintola, B F, Jagboro, G O, Ojo, G K and Odediran, S J (2020) Effectiveness of mechanisms for enforcement of ethical standards in the construction industry. Journal of Construction Business and Management, 4(1), 1-12.
Alade, W A (2020) Environmental and socio-economic impacts of Ojodu-Berger road upgrade, Lagos, Nigeria. Journal of Construction Business and Management, 4(1), 24-33.
Anugwo, I C, Shakantu, W, Saidu, I and Adamu, A (2018) Potentiality of the South African construction SMME contractors globalising within and beyond the SADC construction markets. Journal of Construction Business and Management, 2(1), 41-9.
Ayegba, C (2018) Duties and required competencies of a management contractor. Journal of Construction Business and Management, 2(1), 1-9.
Dada, J O and Bamigboye, G O (2021) Diagnosing the causes of quackery in quantity surveying practice in Lagos state, Nigeria. Journal of Construction Business and Management, 5(1), 28-37.
Dosumu, O (2018) Assessment of the likelihood of risk occurrence on tendering and procurement of construction projects. Journal of Construction Business and Management, 2(1), 20-32.
Joseph, S, Ralwala, A, Wachira-Towey, I and Mutisya, E (2023) Sustainable construction transition (SCT) policy regime in Kenya. Journal of Construction Business and Management, 6(1), 1-16.
Kukoyi, P O and Smallwood, J J (2017) A qualitative study of health and safety construction practices in Lagos. Journal of Construction Business and Management, 1(1), 1-7.
Mambwe, M, Mwanaumo, E M, Phiri, F and Chabota, K (2020) The construction subcontracting policy framework for developing local contractors capacities in Zambia. Journal of Construction Business and Management, 4(1), 60-70.
Musa, M M, Saleh, I M, Ibrahim, Y and Dandajeh, M A (2023) Assessment of awareness and barriers to the application of lean construction techniques in Kano State, Nigeria. Journal of Construction Business and Management, 6(1), 33-42.
Mwanaumo, E M and Mambwe, M (2019) Effect of management strategies in entrenching organisational safety culture in the electricity industry of Zambia. Journal of Construction Business and Management, 3(1), 27-37.
Obiefuna, J N, Omojola, A, Adeaga, O and Uduma-Olugu, N (2017) Groins or not: Some environmental challenges to urban development on a lagos coastal barrier island of Lekki peninsula. Journal of Construction Business and Management, 1(1), 14-28.
Odiba, E, Demian, P and Ruikar, K (2021) Development of a conceptual framework for effective quality management practices in construction organisations. Journal of Construction Business and Management, 5(1), 1-16.
Ogunbayo, O T (2019) Respondents’ perception of risk factors on residential property development in abuja, Nigeria. Journal of Construction Business and Management, 3(1), 18-26.
Ogwueleka, A C and Ikediashi, D I (2021) Exploring the effects of positive organizational behaviour models on occupational eustress amongst construction employees. Journal of Construction Business and Management, 5(1), 38-46.
Oladiran, O J, Bayewun, A A and Aderogba, A M (2021) Awareness and usage of environmental waste management practices of contractors on construction sites. Journal of Construction Business and Management, 5(1), 17-27.
Oladiran, O J, Ogunsanmi, O E and Dada, M O (2019) Frameworks for material waste minimization on Nigerian building projects. Journal of Construction Business and Management, 3(1), 45-61.
Olusanya, O A (2018) Subcontracting systems and social protection in the informal building construction industry in Lagos, Nigeria. Journal of Construction Business and Management, 2(1), 10-9.
Oluwatayo, A A, Amole, D and Alagbe, O (2019) Firm attributes and performance: A study of architectural firms in Nigeria. Journal of Construction Business and Management, 3(1), 1-7.
Saidu, I, Shakantu, W, Adamu, A and Anugwo, I (2017) A bespoke approach for relating material waste to cost overrun in the construction indsutry. Journal of Construction Business and Management, 1(1), 39-52.
Simukonda, W and Kamwela, N (2021) The management of theft and vandalism on construction jobsites in the Southern Region of Malawi . Journal of Construction Business and Management, 5(1), 47-59.
Ssegawa, J K, Rwelamila, P D and Mogome, M G (2020) The challenges of closing construction projects final accounts in Botswana local authorities. Journal of Construction Business and Management, 4(1), 13-23.
Tembo, M, Mwanaumo, E M u and Kahanji, C (2023) An investigation into construction tender-price inflation. Journal of Construction Business and Management, 6(1), 17-32.
Tente, P, Misheng'u Mwanaumo, E and Didibhukut Thwala, W (2023) Sources and control measures of crystalline silica dust in a road and building project in Zambia. Journal of Construction Business and Management, 6(1), 43-52.
Tshehla, M F and Mukudu, E (2020) Addressing constraints for effective project finance for infrastructure projects in emerging economies: the case of Zimbabwe. Journal of Construction Business and Management, 4(1), 48-59.
Waziri, B S (2018) Pareto analysis of critical risk factors of build operate and transfer projects in Nigeria. Journal of Construction Business and Management, 2(1), 33-40.
Windapo, A, Odediran, S, Moghayedi, A, Adediran, A and Oliphant, D (2017) Determinants of building construction costs in South Africa. Journal of Construction Business and Management, 1(1), 8-13.
- Type: Journal Article
- Keywords: construction equipment; cost data; labour; materials; secondary data; South Africa; time-series analysis
- ISBN/ISSN: 2521-0165
- URL: https://journals.uct.ac.za/index.php/jcbm/article/view/84
- Abstract:
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.