Salama, M A (2011) The relationship between the performance of the economy and the costing of building projects: a case study of school buildings in Egypt. PhD thesis, Heriot-Watt University, UK.
Abstract
Cost estimating and cost modelling for building projects have attracted the attention of many scholars. Previous research has laid emphasis on the product physical variables and did not explicitly include the economic variables. This study aims at investigating the impact of the performance of the economy on the cost of building projects by explicitly considering the relevant economic indicators in the cost estimating process. The unique attributes of the National Project for Building Schools in Egypt that is running since 1992, provided the opportunity to focus the light on the economic variables due to the standard design applied to thousands of school buildings. The study started by reviewing the current practice in cost estimating for building projects in Egypt seeking to identify the influential cost factors and to further investigate the level of awareness of the impact of the economic changes on the cost of buildings as perceived by the experts. In addition, the study aimed at developing an explanatory cost model illustrating the relationship between the relevant economic indicators and the cost of school buildings in order to quantify the impact of the economic changes on the costing of buildings. This research adopted a mixed methodology in a triangulation approach that was conducted in two stages. A set of 18 interviews with experts from the industry was followed by a survey covering a sample of 400 schools. The results indicated that the quantity surveyor’s method is the prevailing cost estimating technique in Egypt. Practitioners in general, showed a blurred understanding of the fundamentals of economic and did not explicitly consider the economic indicators in the cost estimates for building projects. The cost modelling of the survey data adopted a multiple regression technique and factor analysis. Two sets of Cost Models including 6 economic indicators as independent variables, besides other product variables, were developed. The results indicated that the economic indicators were significant cost variables. Hence, the impact of the economic changes on the cost estimates of buildings can be quantified. The produced models indicated that the cost of school buildings, expressed in real terms, tend to increase during periods of economic recession. The produced model is useful to cost estimators working for government clients as well as contractors, given the rising application of standard design in various sectors within the construction industry in Egypt. Further work is required to gauge this impact across various sectors of the construction industry
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Kaka, A |
| Uncontrolled Keywords: | case study; client; cost estimating; cost modelling; Egypt; factor analysis; government; interview; multiple regression; quantity surveyor; recession; schools; survey |
| Index terms: | modelling, triangulation, independent variable, cost model, Egypt, quantity surveying, cost estimator, economic indicator, school building, cost estimating, cost factor, practitioner, factor analysis, multiple-regression, methodology, interview, recession, cost estimate, construction industry, case study, survey, costing |
| Subjects: | analytical methods, financial and cost management, industry analysis, economic analysis, practitioner, accounting and finance, Geography, profession, construction type, research design and methodology, data collection methods, research methods, economics, statistical analysis, data analysis and analytics |
| Topics: | Research Practice, Geographical Context, Cost Management, Roles and Professions, Engineering Principles, Business Strategy, Construction Technology |
| 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