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Article
Publication date: 7 June 2018

DeGraft Owusu-Manu, David John Edwards, Erika Anneli Pärn, Richard Ohene Asiedu and Alex Aboagye

While mortgage markets have gradually emerged in many African countries, substantial barriers still hinder their growth and expansion. Affordability has been widely cited…

Abstract

Purpose

While mortgage markets have gradually emerged in many African countries, substantial barriers still hinder their growth and expansion. Affordability has been widely cited as a prominent issue that doggedly remains at the core of urban housing problems. Hence, this paper aims to investigate the determinants of mortgage price affordability.

Design/methodology/approach

Data were gathered using semi-structured questionnaires obtained from a sample drawn from three major West African mortgage financing institutions. Respondents rated the variables using a five-point Likert item rating. The survey results were analysed using exploratory factor analysis.

Findings

In total, 11 variables that influence mortgage affordability were categorised within five principal components, namely, economic factors, financial factors, property characteristics, developmental factors and geographical factors.

Practical implications

The results provide insightful guidance to policymakers and practitioners on how to mitigate affordability issues within Ghana’s fledgling mortgage market. Failure to address the mortgage price affordability conundrum will place enormous pressure upon social housing and rental accommodation.

Originality/value

The research findings expand existing frontiers of knowledge by investigating and reporting upon the determinants of mortgage price affordability. The work also engenders wider debate on the need to establish mortgage packages targeted at low-to-middle-income earners. The culmination of analysis and debate will provide a robust basis for developing a future housing policy framework.

Details

International Journal of Housing Markets and Analysis, vol. 11 no. 4
Type: Research Article
ISSN: 1753-8270

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Article
Publication date: 16 January 2017

Richard Ohene Asiedu, Nana Kena Frempong and Hans Wilhelm Alfen

Being able to predict the likelihood of a project to overrun its cost before the contract signing phase is crucial in developing the required mitigating measures to avert…

Abstract

Purpose

Being able to predict the likelihood of a project to overrun its cost before the contract signing phase is crucial in developing the required mitigating measures to avert it. Known parameters that permit the timely prediction of cost overrun provide the basis for such predictions. Therefore, the purpose of this paper is to develop a model for forecasting cost overruns.

Design/methodology/approach

Ten predictive variables known before the contract signing phase of a project are identified. Based on a survey approach, information on 321 educational projects completed are compiled. A multiple linear regression analysis is adopted for the model development.

Findings

Five variables – initial contract sum, gross floor area, number of storeys, source of funds and contractors’ financial classification are observed to influence cost overruns. The model, however, yields a fairly weak coefficient of determination with a mean absolute percentage error of 30.22 and 138 per cent, respectively.

Research limitations/implications

The model developed focussed on data only educational projects sampled from three out of the ten administration regions in Ghana based on a purposive sampling approach.

Practical implications

Policy makers and construction managers working on public projects stand to gain tremendous assistance in formulating and strengthening their own in-house cost forecasting at the precontract phase based on “what if” analysis to generate various alternative predictions of cost overruns.

Originality/value

Considering the innate nature of cost overruns within the Ghanaian construction industry often resulting to project abandonment, this research presents a unique dimension for tackling cost overruns based on a predictive approach.

Details

Engineering, Construction and Architectural Management, vol. 24 no. 1
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 22 January 2021

Patrick Manu, Richard Ohene Asiedu, Abdul-Majeed Mahamadu, Paul Olaniyi Olomolaiye, Colin Booth, Emmanuel Manu, Saheed Ajayi and Kofi Agyekum

Effective procurement of infrastructure is linked to the attainment of the sustainable development goals set by the United Nations. While the capacity of organisations is…

Abstract

Purpose

Effective procurement of infrastructure is linked to the attainment of the sustainable development goals set by the United Nations. While the capacity of organisations is generally thought to be related to organisational performance, there is a lack of empirical insights concerning the contribution of procurement capacity of public organisations towards the attainment of procurement objectives in infrastructure procurement. Thus, it is unclear which aspects of the capacity of public procurement organisations contribute the most to the attainment of procurement objectives in the procurement of infrastructure. This research sought to address this gap.

Design/methodology/approach

The research used a survey of public procurement professionals which yielded 590 responses.

Findings

Exploratory factor analysis of 23 organisational capacity items revealed three components of organisational procurement capacity: “management of the procurement process”; “human and physical resources”; and “financial resources and management”. Multiple regression modelling of the relationship between the components and the attainment of 12 procurement objectives further reveals that there is a significant positive relationship between the three components and all the objectives. However, “management of the procurement process” emerged as the greatest contributor to the attainment of seven objectives, whereas “human and physical resources”, and “financial resources and management” were the greatest contributor to the attainment of one objective and four objectives, respectively.

Originality/value

The study provides strong empirical justification for investment in the development of procurement capacity of public agencies involved in procurement of infrastructure. Furthermore, procurement capacity development of specific capacity components can be prioritised based on the relative contribution of capacity components to the attainment of desired procurement objectives. This should be useful to government policymakers as well as multilateral organisations that fund infrastructure and procurement reforms in various countries.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 13 November 2019

Richard Ohene Asiedu and William Gyadu-Asiedu

This paper aims to focus on developing a baseline model for time overrun.

Abstract

Purpose

This paper aims to focus on developing a baseline model for time overrun.

Design/methodology/approach

Information on 321 completed construction projects used to assess the predictive performance of two statistical techniques, namely, multiple regression and the Bayesian approach.

Findings

The eventual results from the Bayesian Markov chain Monte Carlo model were observed to improve the predictive ability of the model compared with multiple linear regression. Besides the unique nuances peculiar with projects executed, the scope factors initial duration, gross floor area and number of storeys have been observed to be stable predictors of time overrun.

Originality/value

This current model contributes to improving the reliability of predicting time overruns.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

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Article
Publication date: 10 July 2017

Richard Ohene Asiedu, Ebenezer Adaku and De-Graft Owusu-Manu

This paper aims to contend that the circle of investigation into overruns cannot be complete unless the established critical failure factors are matched against their…

Abstract

Purpose

This paper aims to contend that the circle of investigation into overruns cannot be complete unless the established critical failure factors are matched against their respective mitigating measures to avert the overruns. Extant literature is replete with factors that engender cost and time overruns within the design and construction phase. The constraint is the lack of a scientific approach in establishing a tackling mechanism to address the root causes and stakeholder responsibilities.

Design/methodology/approach

The research is based on nine unique grand factors previously established and reported in literature about the Ghanaian Construction Industry. A focus group discussion convened through a purposive sampling technique led to the establishment of a list of mitigating measures and strategies.

Findings

The paper established a checklist of 114 mitigating measures categorised into preventive, predictive and corrective approaches. Additionally, several short to medium term key strategies have been recommended to avert the occurrence of cost and time overruns.

Originality/value

The mitigating measures can be adopted as a checklist of good practice to help practitioners enhance the effectiveness of project budget and schedule control. It is also supposed to serve as a guide to practitioners in averting overruns through predictive, preventive and/or corrective causes. A unique approach in averting the occurrence of cost and time overruns.

Details

Construction Innovation, vol. 17 no. 3
Type: Research Article
ISSN: 1471-4175

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Article
Publication date: 30 December 2020

Richard Ohene Asiedu and Collins Ameyaw

This study aimed at developing and empirically testing a system dynamics causal loop (SDCL) model for investigating factors related to the risk of cost overruns…

Abstract

Purpose

This study aimed at developing and empirically testing a system dynamics causal loop (SDCL) model for investigating factors related to the risk of cost overruns, associated with the performance of construction projects in developing countries.

Design/methodology/approach

Using data derived from the Ghanaian construction industry (GCI), a conceptual system dynamics model was hypothesised and empirically tested.

Findings

Supported by empirical evidence, the study established that the low technical capacity of consultants is the underlying cause of cost overruns in government projects. There is a strong proof of the relationship between the results of the SDCL model and poor contract planning and supervision, change orders, competence of the project team and the lack of effective coordination amongst the contractual parties.

Practical implications

The final SDCL model has revealed key risk components that would require standard mitigation measures in order to achieve “acceptable success” in construction projects.

Originality/value

The study presents an interactive approach for construction practitioners in developing countries to prioritise the causes of cost overruns in order to initiate quick responses.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

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Article
Publication date: 28 January 2020

David Mensah Sackey, De-Graft Owusu-Manu, Richard Ohene Asiedu and Adam Braimah Jehuri

Ghana has recently reviewed its renewable energy Act 835 with an objective of providing 10% of its energy from renewables by 2020 (Ackah and Asomani, 2015). Meanwhile…

Abstract

Purpose

Ghana has recently reviewed its renewable energy Act 835 with an objective of providing 10% of its energy from renewables by 2020 (Ackah and Asomani, 2015). Meanwhile, solar Photovoltaic (PV) accounts for less than 2% of the energy mix (Energy Commission, 2018). In combating environmental issues such as climate change and meeting these policy targets, there is the urgent need to increase investment into the renewable sector. Therefore, the purpose of this paper is to critically examine the impeding constraints to photovoltaic investment in Ghana.

Design/methodology/approach

The Literature evaluation was carried out of critical constraints surrounding PV investments. Questionnaire was developed and administered online using Google form. Descriptive statistics was used to describe the features of each constraint. In addition, inferential analysis using relative importance index was used to rank these indicators. Again, one sample t-test was used to test the significance of the indicator. Multiple indicators were used to measure the latent constructs. Finally, independent test of mean equity was used to test relationship between the working experiences of despondence who have worked with solar PV below five years and those who worked from five years to ten years.

Findings

The research has highlights high installation and maintenance costs, lack of access to long-term capital finance, access to affordable consumer finance and lack of support to research and development as the major investment obstacles to solar PV investment in Ghana.

Research limitations/implications

It is recommended that the Government of Ghana should provide incentives such as tax waivers, which will encourage entrepreneurs, invest into PV. In addition, it is recommended that solar PV companies must collaborate with financial institutions to provide low interest and flexible consumer financing schemed that can enable home users to purchase the technology. Future research should complement this work by focusing on the impact of domestic currency volatility on PV investment. The scope of this study is constrained to the PV industry in Ghana.

Practical implications

This study will serve as a guide to the private sector business owners to help make critical PV investment decisions. It has also brought to the forefront the reason why solar PV account for a small fraction of Ghana’s energy mix.

Originality/value

This paper seeks to espouse the prevailing constraints to PV investment in Ghana and seeks to contribute to already existing literature that will make profound changes in state policy around PV investment. By understanding these difficulties, driving pointers can be recognized to encourage effective future venture inside the sustainable power source area. In this way, the research leads to a better understanding of the impeding factors that hinders PV investment in Ghana. Again, the paper has achieved new discovery with regards to variations between years of experience with PV use. The variation being less than five years with over five years of PV use. By understanding these difficulties, driving pointers can be recognized to invigorate effective future ventures.

Details

International Journal of Energy Sector Management, vol. 14 no. 4
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 13 May 2019

Richard Ohene Asiedu and Ebenezer Adaku

Cost overrun of construction projects has been a key concern for all stakeholders of projects for many decades now. Many studies have been done in the past and continue to…

Abstract

Purpose

Cost overrun of construction projects has been a key concern for all stakeholders of projects for many decades now. Many studies have been done in the past and continue to be done currently to understand the underlying causes of construction project cost overruns. However, the empirical evidence of the causes seem not be clear due to the silo approach in understanding the causes of construction project cost overruns. The purpose of this paper is to take the debate a step forward by providing an understanding of the causes of project cost overrun from a system’s perspective, especially from a less researched environment.

Design/methodology/approach

Data were collected and analysed from 131 respondents who were mainly involved in construction works in public procurement entities in Ghana. A two-staged approach was employed in collecting data from the respondents. The first stage involved an interview session with key informants in the construction industry in Ghana to ascertain the detailed causes of cost overrun of construction projects. The second stage focussed on the validation of these detailed factors by a wider stakeholder group through questionnaires. Factor analysis was employed to consolidate these detailed factors into major causes of construction project cost overruns.

Findings

The results show that there are primarily four major causes of most public sector construction projects cost overruns. These four major causes of cost overruns are poor contract planning and supervision; change orders; weak institutional and economic environment of projects and lack of effective coordination among the contracting parties.

Originality/value

The study provides more insights as to the critical and major factors that underpin public sector construction projects cost overruns and more importantly provides a basis for common treatment of the multiple risk factors engendering public sector construction projects cost overruns.

Details

International Journal of Managing Projects in Business, vol. 13 no. 1
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 7 November 2016

Richard Ohene Asiedu, Nana Kena Frempong and Gabriel Nani

Time overruns are commonplace within the construction industry. These result in deception because project managers critically assess the economic and financial viability…

Abstract

Purpose

Time overruns are commonplace within the construction industry. These result in deception because project managers critically assess the economic and financial viability of a project before implementation. Forecasting the likelihood of time overruns will not only lead to a reconsideration on the decision to build but also help put in place the necessary control measures – exactly what this research achieved.

Design/methodology/approach

The paper argues that rather than depending on the critical failure factors that are unknown at the pre-contract stage to forecast the likelihood of occurrence, it will be more useful to rely on project attributes that are known before contract signing. A multiple linear regression analysis is used for the model development based on ten independent variables.

Findings

About 86.6 per cent of all the projects experienced time overruns. The mean time overrun is 106.5 per cent. Initial contract sum, initial duration, gross floor area, contractor class D2K2, competitive tendering, sole sourcing and single-storey buildings explained about 44.7 per cent of the variations within time overruns, with a mean absolute percentage error of 60.7 per cent.

Research limitations/implications

The predictive accuracy of the model can, in practice, be tested after the completion of a project by comparing the actual project schedule with the planned schedule. Any disparity in the expected outputs should result in a reassessment of the significant independent variables to improve the forecasting abilities of the model.

Practical implications

The model is expected to be very useful at the pre-contract stage when detailed designs are unavailable. As a decision support system, it will help the practitioners and decision-makers make informed decisions while minimizing the time and resources spent to arrive at these decisions.

Originality/value

This research presents a unique opportunity to forecast the likelihood of time overruns within the building sector based on project attributes that are known before the contract-signing phase.

Details

Journal of Financial Management of Property and Construction, vol. 21 no. 3
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 5 May 2020

De-Graft Owusu-Manu, Frank Ato Ghansah, Amos Darko, Richard Ohene Asiedu and David John Edwards

The purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case study.

Abstract

Purpose

The purpose of this study is to investigate the insurable risks that impacted the operations on complex construction projects in developing countries using Ghana as a case study.

Design/methodology/approach

In this study, structured questionnaires were used to collect relevant information from the top management of construction and insurance firms in Ghana, comprising 50 industry professionals. The study adopted the χ2 and independent samples’ t test to interpret the responses from participants.

Findings

The study revealed the major risks that severely impacted the operations on complex construction projects, including strikes and labour disputes, long waiting time for approval of test samples, damages to property during construction, delay in payment to contractor for work done, poor construction method, pressure to deliver project on an accelerated schedule, labour shortage, permits delayed or take longer than expected, inaccurate materials estimating, change in weather pattern, low productivity of subcontractors and inadequate contractor experience.

Practical implications

The study is expected to contribute to increase in the awareness of the insurable risks and policies that project participants are exposed to, which will serve as a decision-making tool for contract formation.

Originality/value

This study assists in managing construction and insurance firms to note the major risk in managing a complex construction project. In addition to knowing the major risks identified, the study investigates the insurable risk by managing both construction and insurance firms.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 6
Type: Research Article
ISSN: 1726-0531

Keywords

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