St.

Mary’s University

Article review individual assignment for project management tools and techniques
methods, MA course

Article title: AN ANALYSIS OF COST MANAGEMENT STRATEGIES

EMPLOYED BY BUILDING CONTRACTORS ON PROJECTS IN
ZIMBABWE

The author: Benviolent Chigara, Tirivavi Moyo and Fungai Hamilton Mudzengerere
The journal: International Journal of Sustainable Construction Engineering & Technology,
Bulawayo, Zimbabwe (ISSN: 2180-3242) 2013 GC, Vol 4, No 2.

Submitted by: Mehamud Teyb…… SGS/0495/2015A/B

Submitted to: Desta Mulugeta (PhD.)

July 12, 2023

Addis Ababa, Ethiopia

1|Page
Contents
Introduction parts........................................................................................................................................3
Purpose of the article...................................................................................................................................3
Research methods and design......................................................................................................................3
Data source and data types..........................................................................................................................3
Sampling techniques....................................................................................................................................4
Data analysis techniques..............................................................................................................................4
Results and discussion.................................................................................................................................4
Conclusions and Recommendations............................................................................................................5
Importance of the study...............................................................................................................................5
The strength and weakness of the study......................................................................................................6
Conclusion paragraph..................................................................................................................................6

2|Page
Introduction parts

This artic review is conducted on the research title “analysis of cost management strategies
employed by building contractors on projects in zimbabwe” in 2013 GC. The mean reason for
the artic review is considering the article results can be used as input for our country Ethiopia
projects context regarding project cost management. So, this article review tries to take important
experience of the research on identifying cost management techniques used in two big cites local
projects in zimbabwe construction sector. And finally, the review will evaluate the relevance of
the approach, method, design and data analysis techniques applied in the original researches with
the with the objectives the study.

Purpose of the article

The main purpose of the article is to explore the cost management practices in the Zimbabwe
focusing on the construction project on the selected two big cities projects. On the article
different cost management techniques and tools which are applied on the city’s projects are
identified and preference of the contractors for those techniques also analyzed with reasoning.

Research methods and design

The researcher says he is Appling exploratory case study survey research design and both
primary and secondary data source are utilized. But it looks more of descriptive than exploratory
research design when we see the organization of the paper so it is one of identified gap.

Data source and data types

In the study both the primary and secondary data source is used and qualitative data are taken
and analyzed. semi-structured questionnaires and interviews are used as tools for data collection
techniques.

3|Page
Sampling techniques

The research had a target of 30 contractors (representing 32.25% of the total population). The
sample are stratified as contractors in category of A to C which means medium-to-large level.

Data analysis techniques

Statistical Package for Social Scientists (SPSS version 16) applied as means of data analysis
software.

Results and discussion

Out of the targeted 30 contractors, 22 responded giving a response rate of 73%, that is, 23.65%
of the population. The respondents, who had a cumulative construction industry work experience
of 166 years (average of 7.22 years), were distributed in the following order: project quantity
surveyors (55%), project managers (27%), contracts managers, directors and others (14%
collectively). The study drew 72.4%, 18.2% and 9.1% of its respondents from category A, B and
C contractors respectively.

The finding related to the tools and technique/ Strategies applied by the contractors as means of
project cost management are describe in this way as results of the study: cost reports (31.8%);
cost estimating and budgeting (36.4%), variance analysis (54.5%); resources management
(59.1%), cost value reconciliation (CVR) (31.8%) and cash flow analysis and work programs
(18.2%), and other factors, for example, project meetings (13.6%). Cost estimating and
budgeting, variance analysis and cost value reconciliation are mostly used by contractors in
category A and B, while resources management and variance analysis are used by contractors in
all the three categories. However, contractors in category C did not show much use of cost
reports, cost estimates and budgets, and cost value reconciliation. Although there is a growing
trend to automate cost control systems (as shown by an increase in use of such software as
Microsoft Project, Microsoft Excel and other in-house systems), however, overreliance on the
mechanistic Microsoft Excel and paper-based systems pose challenges especially where there is
need for real-time reporting.

The study finding regarding the challenges that affect contractor’s efforts to manage costs are
categorised as: labour related challenges (64%); organizational problems (50%); material related
4|Page
challenges (36%); variations (23%); cost control systems related challenges (18%); plant related
challenges (14%); funding challenges (14%); inaccurate estimate (9%) and others (5%)

Conclusions and Recommendations

Resources consumption stimulates building project costs. Statistical analysis performed through
chi-square test at 95% shows that: cost reports, cost estimating and budgeting, variance analysis,
cost value reconciliation and resources management are the significant factors employed by
contractors to manage costs on building projects in Zimbabwe.

However, despite the existence of these strategies, most contractors admit that their projects
would, in most cases, end with a cost overrun. The study also observed that the cost management
process in Zimbabwe, like in other developing countries in Africa and elsewhere is still
dominated by the traditional paper-based system or ‘prematurely’ developed automated systems
of managing project cost information.

The study recommends contractors to pay particular attention to problem areas that significantly
affect cost management (labour, material and organisational related challenges), engagement of
experienced cost management personnel or upgrading of staff’s professional ingenuity through
conventional training, refresher courses or participation in seminars; and regular review of cost
management systems and strategies.

Importance of the study

The study has significant impacts to identify the time being practices of project cost management
with the challenges specifically in Zimbabwe and generally in Africa. So this study can be use as
inputs to bring improvement on the practices of cost management, and create knowledge area
regarding project cost management and finally can be used as input for policy makers regarding
project management specifically in Zimbabwe and generally in Africa context.

5|Page
The strength and weakness of the study

The overall organization of the study is good and the research data are taking from the source
which increase the relevance of the study and research out puts. The study tries to see the
practices and challenges by relating practices suggested by literatures, so it follows scientific
research writing techniques. The results have strong relationship with the recommendations
made at the end of the study.

As weakness the study misunderstand the research approach as exploratory but it looks
descriptive approaches, b/c there are many literatures written in this area as international level so
the study focus was to fill the gaps by contextualize the cause to Zimbabwe.

Conclusion paragraph

Conducted regular this kind of study from different project management aspects have big impact
to improve the practice of project management system in developing countries including
Ethiopia. And many policies makers should also develop the culture of using the finding of the
study like this one as inputs. So generally, I appreciate the research areas and the finding of the
study at last.

6|Page