Factor cost indices practices in the building industry for Nairobi, Kenya

Gichunge, H K; Masu, S M and K'Akumu, O A (2010) Factor cost indices practices in the building industry for Nairobi, Kenya. Journal of Financial Management of Property and Construction, 15(1), pp. 61-70. ISSN 1366-4387

Abstract

Purpose – The purpose of this paper is to look at the applications of factor cost indices in the building industry in Nairobi, Kenya against the possibilities established through a review of the principles so as to establish the extent of use in practical situations in the industry. There are two organisations involved in compilation of factor cost indices in Kenya – Central Bureau of Statistics and Joint Building Council (JBC). Their practices for compilation of factor cost indices are reported in this paper. Design/methodology/approach – The paper reviews the principles of factor cost index in order to establish a conceptual framework within which practices are then evaluated. The statistical bureau's compilation of building cost indices and the instructions by the JBC are considered as available evidence of application. Findings – The paper finds that the application of factor cost index in Kenya is limited, a situation that therefore demands more research by the construction industry in Kenya. Originality/value – The research's originality lies in its supportive evaluation of the application of the indicator concept in the building industry. More applications would imply greater possibilities for research and development within the case study industry.

Item Type: Article
Uncontrolled Keywords: costs; Kenya; research and development
Index terms: case study, Nairobi, cost index, building industry, statistics, construction industry, evidence, research and development, methodology, Kenya, conceptual framework
Subjects: data collection methods, evaluation and assessment methods, mathematical modelling, economic analysis, Geography, theoretical framing, research methods, industry analysis, research management
Topics: Geographical Context, Research Practice, Business Strategy
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here