Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

Abstract

Cost of building is usually influenced by several factors; one of such is frequent changes in macroeconomic variables. The purpose of this study is to establish the need to conduct further research on the impact of changes in macroeconomic components on the cost of public educational buildings. The study adopted the qualitative research approach; purposive and snowballing techniques were used in selecting respondents. Questionnaire survey was used to obtain primary data from respondents who were Quantity Surveyors and Estimators. The questionnaires were analyzed through descriptive analysis. Secondary data was obtained through literature review. The study revealed that respondents were satisfied with cost management procedures and practices and mainly relied on cash flow, progress reporting, and project cost control methods as means of monitoring and managing project cost. Relative important index, prime rate, interest rate, and inflation were some of the macroeconomic components that professionals considered having impact on cost. The respondents also recommended further studies on the impact of macroeconomic variability on cost of public buildings.