KUMASI TECHNICAL UNIVERSITY

FACULTY OF BUILT AND NATURAL ENVIRONMENT

DEPARTMENT OF BUILDING TECHNOLOGY

TOPIC:

EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT IN GHANA

THIS REPORT IS PRESENTED TO THE DEPARTMENT OF BUILDING TECHNOLOGY

OF THE KUMASI TECHNICAL UNIVERSITY IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE HIGHER NATIONAL DIPLOMA (HND) IN BUILDING
TECHNOLOGY

PRESENTED BY: GROUP 20

NAME INDEX NUMBER

ODURO MAURICE KWEKU KORANKYI 051900392

APPIAH PRINCE 051900342

MARFO ISAAC 051900384

KUUYELLE CALLISTUS 051900380

SEPTEMBER 2022
DECLARATION

CANDIDATE’S DECLARATION

We hereby declare that we, as a group under supervision have undertaken this project work and

submitted.

NAME SIGNATURE DATE

ODURO MAURICE KWEKU KORANKYI ……………………… ...…………...

APPIAH PRINCE ……………………… ……………...

MARFO ISSAC ………………………. ……………...

KUUYELLE CALLISTUS ……………………… ……………...

SUPERVISOR’S DECLARATION

I hereby declare that I have supervised the students the undertaken project submitted and confirm

that the students have my permission to present the project for assessment,

SIGNATURE………………………… DATE…………………………

Dr. SUSAN DJOKOTO

(SUPERVISOR)

I declare that a copy of the project report has been submitted to me for keeps in the institution.

SIGNATURE………………………… DATE…………………………

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Dr. OWUSU KOFI

(HEAD OF DEPARTMENT)

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DEDICATION

We solemnly dedicate this project to the almighty God for his wondrous and compassionate love

and life he gave us through this three-year journey in Kumasi Technical University for our HND

education in Building Technology.

We once again dedicate this project to our parents and compatriots for their time, love and care

which has kept us till now and has helped us to achieve this aim. With all humility, we say that

may the good Lord shower his blessings and grant each and every one of them life an strength.

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ABSTRACT

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ACKNOWLEDGMENT

Through it all, we sincerely and gratefully wish to express our profound gratitude and

appreciation to God for holding us through this three years study.

We again give thanks and appreciation to the head of department, teaching and non-teaching

stuff in this noble and enviable department (Building Technology) in Kumasi Technical

University for taking us through this program.

We are grateful to our parents for their prayers and financial support during this three-year

period.

We thank Dr. SUSAN DJOKO for her time and supervision this project.

Table of Contents
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DECLARATION........................................................................................................................................i

DEDICATION..........................................................................................................................................iii

ABSTRACT..............................................................................................................................................iv

ACKNOWLEDGMENT...........................................................................................................................v

LIST OF TABLES..................................................................................................................................viii

LIST OF FIGURES..................................................................................................................................ix

CHAPTER ONE........................................................................................................................................1

1.0 INTRODUCTION...........................................................................................................................1

1.1 BACKGROUND OF THE STUDY............................................................................................1

1.1.1 BRIEF HISTORY OF CEMENT............................................................................................2

1.1.2 BRIEF HISTORY OF STEEL BARS.....................................................................................3

1.1.3 THE ESSENCE OF BUILDING MATERIALS TO THE CONSTRUCTION INDUSTRY

.............................................................................................................................................................3

1.2 PROBLEM STATEMENT.............................................................................................................4

1.2.1 EFFECT OF BUILDING MATERIALS COST ON HOUSING DEVELOPMENT IN

GHANA..............................................................................................................................................5

1.3 AIM...................................................................................................................................................6

1.4 OBJECTIVES OF THE STUDY....................................................................................................7

1.5 SIGNIFICANCE OF THE STUDY................................................................................................7

1.6 RESEARCH QUESTIONS.............................................................................................................8

1.7 LIMITATIONS OF THE STUDY..................................................................................................9

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 1.8 ORGANIZATION OF CHAPTERS..............................................................................................9

CHAPTER TWO.....................................................................................................................................11

2.0 LITERATURE REVIEW.............................................................................................................11

2.1 INTRODUCTION.....................................................................................................................11

2.2 WHAT RISING BUILDING MATERIAL COSTS MEAN FOR CONSTRUCTION.........12

2.2.1 THE EFFECT OF BUILDING MATERIAL COST ON HOUSING DEVELOPMENT. 15

2.2.2 FACTORS RESPONSIBLE FOR HIGH COST OF BUILDING MATERIALS..............20

2.2.3 Factors That Affect Housing Developments.........................................................................25

2.2.4 THE SOLUTIONS THAT CAN HELP REDUCE THE COST OF BUILDING

MATERIALS TO ENSURE ADEQUATE HOUSING DEVELOPMENT IN GHANA............28

CHAPTER THREE.................................................................................................................................31

3.0 METHODOLOGY........................................................................................................................31

3.1 INTRODUCTION.....................................................................................................................31

3.2 STUDY AREA AND POPULATION.......................................................................................32

3.3 RESEARCH DESIGN...............................................................................................................33

3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES................................................................34

3.5 DATA COLLECTION..............................................................................................................34

3.6 METHOD ANALYSIS..............................................................................................................36

3.7 DATA ANALYSIS.....................................................................................................................36

CHAPTER FOUR...................................................................................................................................37

4.0 STUDY RESULTS........................................................................................................................37

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 4.1 INTRODUCTION.....................................................................................................................37

4.4 FACTORS RESPOSIBLE FOR HIGH COST OF BUILDING MATERIALS....................54

CHAPTER FIVE.....................................................................................................................................57

5.0 INTRODUCTON...........................................................................................................................57

5.1 SUMMARY OF THE FINDINGS................................................................................................57

5.2 RECOMMENDATION.................................................................................................................58

5.3 CONCLUSION..............................................................................................................................59

5.4 REFERENCES..............................................................................................................................60

APPENDICE........................................................................................................................................61

Appendix A (Questionnaire)...........................................................................................................61

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LIST OF TABLES

TABLE PAGE

TABLE 4.2 Demographic Profile of the respondent

TABLE 4.4.1 Response of Factors Responsible for High Cost of Building Materials

TABLE 4.4.2 Response to The Solutions That Can Help Reduce the Cost of Building Material to

Ensure Adequate Housing Development in Ghana

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LIST OF FIGURES

FIGURE PAGE

FIGURE 4.3.1 Respondents View on Fluctuation in Cost of Construction

FIGURE 4.3.2 Respondents Take on Increase of Final Cost of Building Product

FIGURE 4.3.3 Respondents View on Ow Volume of Construction Product

FIGURE 4.3.4 Respondents Take on Increase in Project Abandonment

FIGURE 4.3.5 Respondents View on High Rate of Contactors’ Fraudulent Practices

FIGURE 4.3.6 Respondents Take on The Collapse of Building Due to Less Quality Materials

FIGURE 4.3.7 Respondents Take on The Volume of Construction Output Is Affected

FIGURE 4.3.8 Respondents View on The Rate of Employment Is Affected

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CHAPTER ONE

1.0 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The basic concept of Construction is the act of putting different elements together to form a

structure for a specified purpose with a detailed plan and design analysis. Construction,

additionally called fabricating development, the strategies and industry associated with the

gathering and erection of designs, basically those used to give shelter or cover. Building and

Construction is an old human action which started with the simply practical requirement for a

controlled climate to direct the impacts of environment [1]. Developed covers were one method

by which individuals had the option to adjust to a wide assortment of environments and turned

into a worldwide animal category.

The historical backdrop of building is set apart by various patterns. One is the rising strength of

the materials utilized. Early structure materials were transient, like leaves, branches, and animal

stows away. Afterward, more solid regular materials like, clay, stone, and timber, and at last,

manufactured materials — like block, cement, metals, and plastics — were utilized. Another is a

journey for structures of ever more prominent level and range; this was made conceivable by the

improvement of more grounded materials and by information on how materials act and how to

take advantage of them to more noteworthy benefit. Different structures and designs are built by

a wide range of building materials based on sensible plan. The assortments, determinations and

characteristics of building materials are straightforwardly connected with the pertinence,

masterfulness and solidness of structures and furthermore to the cost of the project.

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Building materials are the material starting point for all the construction engineering. Building

materials industry which is one of the significant essential businesses of public economy

advances the improvement of the construction industry.

The building and construction area is exceptionally critical in any country's social and financial

turn of events. Building materials are used in construction work from the underground to the

completing level. Building material are fundamentally fabricating material item used in

construction, for example, concrete, blocks, cement and aggregates, for example sand, rock and

gravel [2].

1.1.1 BRIEF HISTORY OF CEMENT

The beginning of water driven concretes returns to old Greece and Rome. The materials utilized

were lime and a volcanic debris that gradually responded with it within the sight of water to

frame a hard mass. This framed the solidifying material of the Roman mortars and cements of

over a long time back and of ensuing construction work in Western Europe. Volcanic debris

mined close to what is presently the city of Pozzuoli, Italy, was especially plentiful in

fundamental aluminosilicate minerals, leading to the exemplary pozzolana concrete of the

Roman period. Right up till now the term pozzolana, or pozzolan, alludes either to the actual

concrete or to any finely isolated aluminosilicate that responds with lime in water to frame

concrete. (The term concrete, in the meantime, gets from the Latin word cementum, which

implied stone chippings, for example, were utilized in Roman mortar — not the limiting material

itself [3].

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1.1.2 BRIEF HISTORY OF STEEL BARS

The primary steel-reinforcement concrete construction frameworks were utilized during the

nineteenth 100 years. These early frameworks utilized square bent bars. The primary materials

details for steel supporting bars were created in 1910. New "hauled" bars were presented during

the 1910s-1930s period. These bars were antecedents of the advanced distorted bars. A precious

stone example bar which was first utilized during the 1920s still meets current particulars and is

being used today. The American Society for Testing and Materials grew new norms in 1947 that

frame a few determinations for disfigured building up steel. Reinforcement bar makers and

fabricators have their own affiliation, the Concrete Reinforcing Steel Institute, which was laid

out in 1924 [4].

1.1.3 THE ESSENCE OF BUILDING MATERIALS TO THE CONSTRUCTION

INDUSTRY

Building materials structure is a vital piece of the field of engineering. The site chose as well as

the idea of the environmental factors, decide the structure type, and decision of building material.

The sort and type of structure is determined by the type of material used. The idea of 'building

materials' praises the perseverance and visual parts of plan. Not in the least gets it done give

meaning yet in addition upgrades the quality of the nature of a building. Building material

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connotes underlying presence. It exhibits the presence of stylish sense in a plan, and thus,

characterizes the practicability of the construction. The utilization of building material(s)while

planning a construction is emblematic of its presence in the field of compositional representation.

It lays out a connection between the visual quality and primary dependability in design.

The building material influences the vision of a construction, as it manages the appearance-

related characteristics of the construction. It likewise influences the solidness of the construction.

Subsequently, the personality of the engineering is not entirely settled by the quality-amount

relationship of the building material utilized. It likewise impacts the hypotheses of effortlessness

and intricacy in the setting of compositional plan. It has supported advancement as well.

1.2 PROBLEM STATEMENT

The cost of building materials poses a significant threat to both the construction industry and

people aspiring to own houses. The supply of houses is affected by the increase in the costs of

building materials. The growth of the construction sector brings with it, the growth in the

manufacturing industry for the building materials such as cement and steel. Cost overruns among

other factors are often caused by the increasing prices of resources such as building materials.

The cost of building a house has rapidly increased with the increase in the cost of construction

materials such as cement, steel, sand, and piling materials. Building materials have been

assuming a significant part in the development business, they are those materials set up in raising

4
or building structures, no field of designing is possible without their utilization. Building

materials contribute gigantically to the quality and cost of lodging, based on what is utilized in

the foundation to the materials for roofing and completions, while the material industry is a

significant supporter of the public economy of most nations as its result oversees both the rate

and the nature of construction work.

1.2.1 EFFECT OF BUILDING MATERIALS COST ON HOUSING DEVELOPMENT IN

GHANA

Since the vast majority of Ghana's building materials are imported to the country, the

downgrading of the cedi has driven costs up and significantly affected the expense of

construction and accessibility of materials. As per the Center for Affordable Housing Finance in

Africa, up to 80% of Ghana's building materials are imported. "Charge demands stay high for the

import of building materials, like tiles and flooring, and this dissuades importation for most to

ease exchanges for construction firms and lift monetary development.

The unsteadiness in the cost of the building materials is placed as an immediate consequence of

high duties which thus influences on the expense of convenience in significant urban

communities across the nation, and concurring that, many finished houses had practically stayed

vacant in light of the great rental and deal costs joined to them as against the small pay of the

typical individual residing in the country. The expense of building materials represents a critical

danger to both the construction industry and individuals seeking to possess houses, other than

convenient fruition, exorbitant costs of the building materials form vital imperative to further

developing lodging conditions, as per a few reports, it is anticipated that towards the finish of

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2022, material inventory limitations and ware cost increments, will add from 2% to 4% on all

out-project costs. Plus, a further 1% to 3% could be added in the event that we incorporate

operations and transportation [5]. The cost of building materials constitutes about 60 to 70

percent of the cost of building, therefore as the materials cost rises, the entire project cost

increases. Therefore, there is the need to find out the major causes of high cost of building

materials problem in relation to the construction industry in order to take the appropriate steps to

curb the problems

1.3 AIM

The major Aim of the study is the effects of rising cost of building materials on housing

development in Ghana.

1.4 OBJECTIVES OF THE STUDY

1. To determine the effect of building material cost on housing development.

2. To determine the factors responsible for high cost of building materials.

3. To determine the factors affecting housing development

4. To find solutions that can be adopted to reduce the cost of building material to ensure

adequate housing development in Ghana.

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1.5 SIGNIFICANCE OF THE STUDY

The study will educate the general public on the current market cost of building materials and its

effect on sustainable housing development in Ghana.

Also, this study will sensitize the policy makers and the government on the need to make and

implement policies that will reduce the cost of building materials thereby encouraging massive

housing development all over the country.

This research will also serve as a resource base to other researchers interested in carrying out

further research in this field subsequently, if applied will go a long in providing explanation to

this topic.

1.6 RESEARCH QUESTIONS

1. What is effect of building materials cost housing development?

2. What are the factors responsible for high cost of building materials?

3. What are the factors affecting housing development?

4. What are the solutions that can reduce the cost building material to ensure

adequate housing development in Ghana?

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1.7 LIMITATIONS OF THE STUDY

The study on the effect of building materials cost on housing development will cover the current

prices of building materials in Ghana focusing on how it has influenced the provision of

affordable housing for the population.

1.8 ORGANIZATION OF CHAPTERS

The study comprises of five chapters;

Chapter one comprises of the introduction to the study, the background, problem statement,

aims, objectives, significance of the study, research questions, and limitation of the study.

Chapter two comprises of the literature review for the study, overview of the construction

industry and concept of some terminologies used in the study.

Chapter three comprises of the various methods adopted in collecting and analyzing the data for

the study, sources of data, data collection procedure and analysis.

Chapter four comprises of results and findings.

Chapter five comprises of summary of findings, conclusions and recommendation and also

references.

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CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 INTRODUCTION

Because of flimsiness of the economy which result into depreciation of the Ghanaian cash,

building materials a large portion of which are brought into the nation have proceeded with high

in cost. The stock of houses is impacted by the expansions in the expense of building materials.

The growth of construction area carries with it, the growth in the manufacturing industry for the

building materials like concrete and steel. Vacillation in cost of building materials, cost

overwhelms among different elements have many times brought about by the rising costs of

building materials for development.

The construction industry is a basic area of economies since it constructs and keeps up with the

framework on which pretty much every other industry depends. The construction sector is

responsible for building new houses, lofts, industrial facilities, workplaces and schools. It

likewise builds roads, spans, ports, railways, sewers and passages, among numerous different

things. In addition, it keeps up with and fixes those designs referenced above and produces the

fundamental structure materials. It makes a huge commitment to the public economy and gives

work to enormous number of individuals. As per report of Ghana National Commission for

UNESCO (2010, p.183), from a depressed spot during the 1970s and 1980s the portion of

construction in the Gross Domestic Product (GDP) has climbed from 4.5% in 1975 to 8.5% by

the turn of the 100 years and has been moving about similar levels since. The area developed by

10% in 2008 however enlisted a negative development pace of 1% in 2009 because of the

worldwide financial downturn. Housing has been a worry of people, families, gatherings and

9
states starting from the beginning of metropolitan progress. This issue has frequently been

credited to significant expense of building materials (Aliyu, Kasim and Martin, 2011).

Assembling of building materials, for example, concrete, steel poles and material sheet requires

serious utilization of energy (electrical power) which is costly in most non-industrial nations

including Ghana. Additionally, a portion of the unrefined components utilized for the

manufacturing of the building materials are imported (e.g., clinker for making concrete). This

makes the manufacturing organizations bring about tremendous bills which are figured in the

valuing of those materials and perpetually increment their selling and purchasing costs. In the

European Union, the construction and building area is responsible for generally 40% of the

general energy burden (United Nations Environment Program 'UNEP', 2003). Homes in the UK

(their development and occupation) are responsible for the utilization of 40% of essential energy

in the country (Department for Environment Food and Rural Affairs 'DEFRA', 2008)

2.2 WHAT RISING BUILDING MATERIAL COSTS MEAN FOR CONSTRUCTION

Labor and materials are seemingly the two most basic element of any construction project. No

structures change horizons, no bridges span waterways and no homes ascend from foundation

without them. That is the reason valuing of these two creation parts can mean expense cutting is

available for one more region of the undertaking spending plan or, given steep-enough builds,

the leaving of the venture out and out.

The latest numbers from the Bureau Labor of Statistics uncovered a 4.8% ascent in material costs

between February 2016 and February 2017.

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Relationship of Builder's and Contractor's Chief Economist Anirban Basu makes sense of. As a

rule, this arising condition of undertaking is horrible, as quickly rising materials costs slow down

financial progression in various ways. Rising materials costs makes it doubtful that an

improvement will push ahead and expansion in the expense of conveying supported framework,

raises costs for mortgage holders, leaseholders and office occupants, and fuel in general

inflationary tensions, which effectively pushes ostensible getting cost higher. With engineers

addressing whether to start new ventures or to push ahead with an undertaking which is as of

now underway, project workers are at takes a chance as less occupation might open up with

decrease being developed.

As material costs keep on expanding consistently, extra duties will keep on influencing

producers and a variety of businesses from one side of the country to the other. In addition to the

fact that undertaking deferrals and financial plan are overwhelms top of brain, yet there are

millions who have their positions in question because of the ascending of these material costs.

Fortunately, there are a few answers for assist with material and work costs inside the structure

envelope as material costs continue to flood. Plans can be altered and improved to utilize less

materials, punishments can assist with monitoring material and diminish squandered materials,

and innovation is continually progressing and making new inventive arrangements. Improving

plans, producing in a controlled climate, and propelling innovation are a couple of creative

answers for name that are upsetting the development business moderating the ascent in material

costs.

Expansion is raising a ruckus around town market similarly as hard if not harder than wherever

else. Development material costs rose 20% between January 2021 and January 2022, as indicated

by examination of government information by the Association General Contractors of America

11
(AGC). As per the association's most recent Construction Inflation Alert, exceptional expansion

in materials cost, production network disturbances and an undeniably close work market have

caused problems for workers for hire and venture proprietors. The cost file for steel is the most

elevated supporter of the general expense of development materials, itself rising 112.7 percent

over the most recent a year. The cost record for plastic rose 35% and building coatings rose 24.3

percent. Timber and compressed wood rose 21.1 percent. Spiking materials costs are making it

trying for most firms to benefit from any expansions sought after for new development project,

these cost increments will subvert the financial case for the vast majority advancement

undertakings and breaking point the positive effects of the new foundation bill. Paces of

expansion are expanding quickly in many created economies. Furthermore, development

organizations are feeling the impacts — not exclusively are fundamental materials and gifted

work altogether more costly, yet inventory network tensions and deficiencies are making it

harder to get required development materials

Since most workers for hire work on thin edges, inflated costs are influencing the offering

system. The precarious ongoing cost increments make it very challenging to appraise future

expenses, which might be a few times the first gauges when work initiates all the more still when

the occupation is finished. What's more, postpones in getting materials on location because of

production network difficulties frequently imply that the course of events for an undertaking's

consummation is frequently hazy.

In many nations, the gamble of expansion is borne by workers for hire. In these circumstances,

mistakenly estimating costs into a bid can devastatingly affect their spending plans, especially

for project workers that work by means of fixed cost agreements. This has prompted a rising

12
number of development organizations getting into monetary challenges and, surprisingly, leaving

business.

A few workers for hire and designers are confronting expanded difficulties to get financing for

projects in the midst of inquiries regarding the bankability of tasks. In a high inflationary

climate, funders will commonly be more careful while offering subsidizing to projects that are

high in worth, complex, or have long form times.

2.2.1 THE EFFECT OF BUILDING MATERIAL COST ON HOUSING

DEVELOPMENT

[Link] FLUCTUATION IN COST OF CONSTRUCTION

As per Windapo and Cattell, significant development in the development business is dependent

upon the cost solidness in building materials. In any case, this cost increments at higher rates

than anticipated. Client and project workers for hire have been confronting serious difficulties to

keep up with consistent expense projection on development projects. Ali and Kamaruzzaman

expressed that unfortunate assessment of unique task cost and underrating the development cost

by amount assessors are the essential purposes behind cost acceleration in the development

business. The creators further expressed that the costs change so rapidly that the underlying

financial plan figures become totally unreasonable. A concentrate on the ramifications of

increasing expense of building materials in certain nations recognized change in development

costs as the significant reason for expansion in the expense of building materials. The above

assertion insists still up in the air with respect to the key causes affecting the improvement of the

13
development business. The creators distinguished expansion as one of the vital reasons for the

fluctuating expense of building materials, which influences development industry advancement

the country over. The effect of expansion on the expense of building materials brings about low

and temperamental pace of benefit, which delivers the modern exhibition regions insufficient,

like development advancement, development techniques, and material examination.

Subsequently, this obstructs the conveyance of economical lodging.

[Link] INCREASE IN FINAL COST OF BUILDING PRODUCTS

Cost variety can be resolved when the last expense of the venture surpasses the first gauge cost.

Lukale and Ikechukwu et al. characterized cost variety as the difference between the first

expense and the genuine expense when the task is done. According to another point of view, cost

variety can essentially be depicted as the sum by which the real expenses outperform the

acknowledged expenses during the agreement arrangement. To brace this, completed a primer

review to decide the elements that cause cost variety in building wastewater projects. The

discoveries recognize the value vacillation of materials as one of the significant elements liable

for the variety of venture costs. As per Elinwa and Buba 1993, the considered cost of materials

and variation of materials prices are the key factors causing a high final cost of building

products.

[Link] LOW VOLUME OF CONSTRUCTION PRODUCTS

The result of the development business in South Africa is very low when contrasted and the

development business in many created nations. Considering this, it is perceived that the

14
development business is confronting challenges that devastate its presentation across each part of

its activities. This impact prompts a low volume of development items, and end-clients are left to

experience the ill effects of the failure of the public authority to give satisfactory manageable

lodging. On the side of this Windapo et al, explained that homeownership is valued out in the

real estate market because of the extreme expansion in the structure material expense. The

aftereffect of this market circumstance is intense deficiencies of lodging, which influences a

huge number of centers pay and low-pay workers to battle to get homeownership.

[Link] INCREASE IN PROJECT ABANDONMENT

Project surrender is the impromptu suspension of the work progress particularly at the execution

stage, for example, the refusal or inability to finish an agreement after viable fruition time

(Nwachukwu, 2016). Various development projects are briefly or even for all time deserted, and

as indicated by Nwachukwu (2016) the prevalence of numerous uncompleted and deserted

projects came about because of money related emergencies and material related factors.

Expansion and significant expense of building materials are central point that led to uncompleted

and unsatisfactory structures and this altogether affects the business for conveyance of lodging.

Though Aluko (2008) expressed the impacts of deserted project on climate and distinguished

such impacts as the issues of flooding, gridlock, air and water contamination, chronic drug use

and wellbeing risks in the area. Likewise, a vertical survey of agreement aggregate prompts

clashes among workers for hire and clients, possible prompting instances of deserting where

ventures are secured, since such undertaking won't be invested to use at the normal effort.

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[Link] HIGH RATE OF CONTRACTORS' FRAUDULENT PRACTICES

Project expansion is a typical fake practice among workers for hire. One of the undertaking

regions that is frequently swelled is the expense of buying building materials. This false practice

can happen or repeat anytime along the installment chain. It is perceived that the class of laborers

in the base spot of the chain can maybe expand costs or the level of work finishing. All things

considered, net revenue for these specialists hands on will support. Essentially, one more part of

the chain might attempt to misrepresent about expenses to subs and providers, yet falsely pocket

their quantity once an installment is made. The consequence of these representations is an

expected different vacillation of materials cost.

[Link] COLLAPSE OF BUILDING DUE TO LESS QUALITY MATERIALS

The acquisition of low-quality development materials conceivably causes building breakdown.

The utilization of such materials causes building insufficiency and startling mishaps. Dimuna

and Amadi et al saw that building breakdown is caused either by a characteristic element or a

man-made factor. The specialists further expressed those emerging countries experience

continuous breakdown of structures. For instance, a nation like Nigeria experiences occasional

breakdown of structures prevalently brought about by man-made factors. To support the above

model, a few examinations were led not many a long time back by to decide the critical reasons

for building disappointment and breakdown. The discoveries accomplished showed that

inadequate structure materials stayed a significant issue to building breakdown. Aziz added that

bad quality structure materials heighten the expense of development over the real extended cost

because of the deficiency of material during the execution stage. This could be named as an

impact of an absence of norms for materials.

16
[Link] VOLUME OF CONSTRUCTION OUTPUT IS AFFECTED

As per Fagbenle, Adeyemi, and Adesanya (2004), the result of the development business in

Nigeria is very low when contrasted and development industry of many created nations.

Harmonious to this attestation, Windapo et al. (2004) saw those circumstances emerging from

the quick expansion in the expense of building materials might decline to intense deficiencies of

lodging with a huge number of center and low-pay families being overestimated for house

purchasing all over Nigeria. The perceptions from these investigations were because of the

significant expense of building materials as per Anosike (2009) who found that Nigeria has in

excess of 17 million lodging shortage starting around 2004.

[Link] RATE OF EMPLOYMENT IS AFFECTED

The development business' labor force is incredibly assorted and incorporates various sorts of

people working inside development like incompetent specialists, gifted specialists, make,

administrative jobs, and managerial specialists. As indicated by research, keeping up with and

drawing in the ideal individuals inside the development business is really important because of

the shortage of both talented individuals and experienced chiefs. Ayodele and Alabi (2011)

observed that expansion in the expenses of building material is killing the development

17
2.2.2 FACTORS RESPONSIBLE FOR HIGH COST OF BUILDING MATERIALS

[Link] INTRODUCTION

The cost of building materials changes when there is an adjustment of any monetary factors like

interest and supply. This is the justification for why workers for hire are keeping watch for data

on the ongoing cost of building materials during offering for a development project. The expense

of building materials in present day development for the most part represents around 60% of the

absolute development costs. Danso and Obeng-Ahenkora express those changes in the costs of

development materials essentially affect the progress of development projects. These unexpected

cost changes influence project execution rates and even affect the capacity to complete the

undertakings. This paper, consequently, looks to distinguish the elements that for the most part

impact the cost of building materials.

[Link] IMPORTATION

Oladipo and Oni express that around 50% of the structure materials and parts that are being

utilized in development are obtained from abroad. The expense of bringing in the structure

materials from abroad is higher than that of the neighborhood materials. This can expand the

complete expense of development. As per Uwah, the significant expense in development

materials has turned into a central issue to the present-day development industry.

18
[Link] TRANSPORTATION

The expansion in fuel cost altogether affects drifts, the cost of oil-based material and expands

the transportation cost of the structure materials to the venture site. Because of the inflated

expense of transportation, the expense of building materials is additionally expanded. As

expressed by Danso and Obeng-Ahenkora, transportation cost is one of the elements that

influence the cost of building materials.

[Link]. EXCHANGE RATE

The conversion scale is the cost of a country's cash as far as one more money utilized in

deciding the strength of one cash against another. In this manner, a conversion scale has two

parts, the homegrown cash and an unfamiliar money. Nigeria creates its own essential materials

and can get by without importation however yet depends on imported gear. Thusly, expansions

in materials cost inside the business are a reason to worry. The soaring conversion scale of the

dollar to the naira (1 dollar=362 naira as at first August 2018) is killing the structure materials

area in Nigeria and deterioration in naira esteem is neutralizing the structure materials merchants.

[Link] INADEQUATE PRODUCTION OF RAW MATERIALS

Ogunlana, Krit and Vithool (1996) contend that the justification for lack of materials could be

the inadequate stockpile of materials occasioned by broad deficiencies in the business,

unfortunate correspondence in the midst of locales and administrative center, unfortunate buying

arranging and unfortunate material coordination. Deficiencies of some development materials

might emerge where the degree of advancement action is curiously high. In the event that this

19
had not been expected and coordinated into the first quote, the costs of these materials will build

(EU Framework, 1998). This can likewise happen where the area depends vigorously on

importation than taking advantage of privately obtained ones.

[Link] ENERGY COST

This a significant determinant of cost increment of building materials. High energy costs affect

the development of most structure materials since makers need to extend building material

expenses to wage off the additions in high energy costs. A huge piece of the energy used for the

assembling of building materials is dependent upon the utilization of unrefined petroleum, when

the costs of raw petroleum elevate, then the expense expected in delivering energy will similarly

increment, with the impact expanding the expense of different items

[Link] INCREASE IN LOCAL TAXES AND CHARGES

An expansion in neighborhood expenses and charges impacts everything expected in the creation

of building materials unexpectedly. Duties and charges forced on providers by the public

authority and its partners might be given to the purchasers of the structure materials as an

expense increase. If the finished thing can't ingest the tax collection rate, the maker or the retailer

might have to bear the tax assessment rate or track down various systems to acclimatize the cost.

Moving the heaviness of a cost isn't by and large a financially conceivable other option, and the

20
flexibility of premium will, finally, deal with the ability to move the tax collection rate to another

social occasion.

[Link] HIGH COST OF RAW MATERIALS

The expense of unrefined components for assembling building materials influence on the costs of

the structure materials. The rising natural substances costs alongside different factors, for

example, oil, gas and energy are the vital reasons for expansions in the costs of building

materials like concrete, material layers and waterproofing. The natural substances required and

the proposed development subtleties have bearing on the expense of the task.

[Link] DEMAND

Cost of building materials can likewise be impacted by worldwide interest. The costs of the

materials become higher than needed on the grounds that it is unavoidable for the business to

utilize a portion of the materials that are in the more popularity. In spite of the significant

expense, the business will in any case utilize it to finish the venture. Thus, the expansion in the

interest for the material will prompt an expansion in the cost of the structure materials. Zhou and

Zhao express that the costs of building materials, for example, concrete would answer the market

circumstance by the monetary law of organic market.

21
[Link] CHOICE OF MATERIALS

The materials indicated and the proposed development subtleties will have a significant bearing

on the expense of the undertaking. The relationship of value to cost has been remarked on above,

and structures which consolidate great as well as imaginative highlights are perpetually more

costly than those which are simply utilitarian. The decision relies upon what the client will pay.

The materials, by and by, ought to be proper for their utilization; over-detail is inefficient. The

decision of the material, and thus the expense, might be affected by factors other than stylish

characteristics. For instance, quick track development undertakings might utilize a steel outline

in inclination to an in-situ or precast substantial edge to diminish by and large program spans.

Albeit the substantial choice might be less expensive, the more limited program accomplished by

utilizing steel might balance this underlying expense advantage. Specialized choices, for

example, these are made for each building component and these have an immediate bearing on

the inevitable expense. Where impressive reiteration can be accomplished it might demonstrate

affordable to pre-assemble specific underlying components or to normalize different parts and

fittings.

2.2.3 FACTORS THAT AFFECT HOUSING DEVELOPMENTS

[Link] INTRODUCTION

The story of how a new housing development comes to be is one that is crucial for industry

insiders, policymakers, and the public to understand. However, the complexity of the topic often

means few get a good picture of the work necessary to create these new homes for Ghanaians to

22
live in. In this post, we'll survey a few of the key issues affecting the work that goes into building

today's typical Ghana housing development.

[Link] BUIDABLE LOTS

To build a single-family house, a multifamily dwelling, or even a commercial building, you first

need a piece of land. But not just any piece of land will do, it has to be a "buildable

lot." According to Zillow, a buildable lot is a piece of land for which a builder can obtain the

proper permits to construct a residence. However, not all lots are buildable. Individuals wanting

to build on an empty plot of land need to make sure it's a buildable lot, preferably before they

even make an offer. To complicate matters, a lot can be buildable, but zoning restrictions could

rule out the type of structure a developer wants to build. Zoning rules can vary widely across the

country. For developers, subdivisions, and other major housing developments are often planned

collaboratively with city or county officials to ensure the proper permits and approvals will be

attainable before getting too invested in the project. Such authorities will then designate a parcel

of developable land into so-called "legal lots" for the project.

[Link] SUPPLY AND DEMAND

However, developable land, land near other town, city, or county developments that are suitable

for building, is becoming rarer, and the low supply of developable land isn't helped by an

increasing demand for new housing. In May, the National Association of Home Builders

(NAHB) reported that the shortage of developable land was the worst on record. Sixty-four

23
percent of builders reported low or very low lot supply, the worst since the NAHB began

collecting data in 1997.

Such demand is likely to lead to higher home prices, higher rents and more competition among

homebuyers.

[Link] GOVERNMENT REGULATIONS

Regulations at the local, state and federal levels create all sorts of complications for new housing

developments, slowing growth, pushing up costs, or choking off development plans. Developers

in Ghana have been dealing with stifling development regulations. The problem has gotten bad

enough that the Government of Ghana unveiled a policy "toolkit" for municipalities that could

help spur local development. However, two big issues for builders come from the federal

government itself. Construction industry groups just spend almost a year litigating the

Environmental Protection Agency's (EPA), which was meant to protect wetlands and

waterways but was criticized for being too vague by the courts. Elsewhere, the NAHB is asking

Congress to reconsider environmental policy proposals which may restrict development in

floodplain areas, harming housing affordability.

[Link] PROJECT FINANCING

Financing for housing development projects is better than at the height of the recession, but not

as simple as it once was. The larger banks have pulled back in recent months, leaving smaller

regional banks to fill in the gaps. There, builders can currently expect as a maximum of 80-

24
percent financing for new construction projects. Larger banks are treading more carefully, with

typical financing topping out in some cases at 60 to 65 percent loan-to-value.

[Link] APPRAISAL AND TITLE INSURANCE

With all the permits builders must obtain to construct a new development, it's easy to forget that

the typical processes of buying a home also apply to new construction. Just like existing homes,

new construction homes need to be appraised at or above the price the builder intends to sell the

home for. This is to ensure that a property is worth the amount of the loan issued to a new buyer.

However, a new home in a new development with few comparable properties presents a

challenge for appraisers. A cost approach appraisal is one solution where the value of the land is

added to the cost to reproduce or replace the home to come up with a value. Builders often offer

plans and construction details to appraisers to help with the process. Beyond the appraisal, new

construction homebuyers also need the services of a title insurance company. Inman points

out that a new housing development may be a new use of the land, but the parcel of land used to

develop the community isn't new. There may be undiscovered land ownership claims that could

put the ownership of one or more homes in question. Furthermore, a new home could have

undiscovered mechanic's liens from roofers, carpenters, or contractors with unpaid bills that

attach to the property, not the developer. A title search, lender's policy, and owner's policy can

protect homebuyers and lenders against such claims. Title insurance also offers protection for

mistakes by recorders and registrars in deed offices. Even though builders may have years of

experience and have a good track record, title insurance is still recommended, as some issues can

be unknown even to a home's builders. Many other factors affect how a new housing

25
development comes to be. For today's builders, issues such as lot use and supply, regulations,

financing, valuation and titling are of particular importance. Such issues have a close relationship

to how much homebuyers pay for a new home and how easy it is for Ghanaians to find

affordable housing. Those topics often tie back to the development sector, making a considerable

impact.

2.2.4 THE SOLUTIONS THAT CAN HELP REDUCE THE COST OF BUILDING

MATERIALS TO ENSURE ADEQUATE HOUSING DEVELOPMENT IN GHANA

[Link] EMBRACE PREFABRICATION

Your development organization ought to consider this move toward diminish squander and work

with more viability. The utilization of a pre-assembled part includes no loss since it is planned

external the building site and by an alternate organization. There is no unnecessary measure of

material as everything is facilitated ahead of time and just what is required is bought and utilized.

Likewise, it is undeniably more affordable to ship a few sections from an assembling

organization than to employ a few laborers to move natural substances to a building site.

26
[Link] GO LEAN

As per the Lean Construction Institute, lean plan and development include arranging projects so

there are expanded degrees of efficiency and diminished misuse of materials. Everybody from

draftsmen to providers to end clients is involved to guarantee that activities meet objectives

while utilizing minimal measure of energy-including materials. Lean development additionally

decreases wellbeing perils while working on cost reserve funds for every elaborate party. Studies

have shown that by utilizing lean development, organizations have the ability to lessen material

waste by around 64%. Lean development likewise increments representative responsibility,

bringing about greater in the completed task. Further developed project fulfillment assists with

invigorating representative certainty, as well as draw in new clients for future development

projects. While lean development requires preparing and proficient skill to get everything rolling

with, a definitive compensation far offset the underlying venture.

[Link] PURCHASE FROM SPECIALIZED SUPPLIERS

There's nothing another standard you wouldn't do to stick to is purchase materials from particular

providers. Why? Indeed, aside from the way that they have a more extensive assortment of

provisions, they likewise will more often than not give particular offers that overall providers

normally can't coordinate; for example, while searching for lead items and supplies, you ought to

search for specific providers that have led available to be purchased in some town, city, region or

whatever other nation where your development project is occurring. Same goes for each unique

kind of material, regardless of how debilitating such a cycle could appear. When you lay out

these associations, you'll have a lot simpler occupation of robotizing the remainder of the cycle.

27
[Link] PURCHASE IN BULK

Purchasing in mass is in every case more economical than procuring the particular sum you

really want, particularly because of the way that you can never have a 100% precise speculation

of how much material you will require. Only one out of every odd material (even from a similar

provider) is of a similar quality, same as your group isn't similarly constant 100% of the time.

Along these lines, you'll likewise furnish your room with some substitution material without

going through a costly turnover. Without a doubt, this likewise implies that you would need to

put resources into capacity, yet, as a rule, this is a cost worth making.

28
CHAPTER THREE

3.0 METHODOLOGY

3.1 INTRODUCTION

This part centers around the different strategies that were taken on to assist the review with

accomplishing its goals. The part covers the review region and populace, research configuration,

test size and inspecting strategies, information assortment methodology, and information

examination.

3.2 STUDY AREA AND POPULATION

The review will be directed in Kumasi Metropolitan Assembly which is situated in the temporary

woodland zone and is around 270km north of the public capital, Accra, and situated between

Latitude 6.35°N and 6.40°S and Longitude 1.30°W and 1.35°E and raised 250° to 300 meters

above ocean level. It has a surface region of roughly 214.3 square kilometers, which is around

0.9 percent of the district's property region.

Its vital found has additionally enriched it with the situation with the chief vehicle terminal and

has guaranteed its turn job in the huge and beneficial circulation of products in the nation and

then some. The novel centrality of the city as a crossing point from all pieces of the nation makes

an exceptional spot for some to relocate to.

There is a convergence of financial exercises in the city. The first and most significant area is the

local Business District (LBD), which embraces the New Market Complex, the Central Market,

and Adum Shopping Center. The city is quickly growing one with a yearly development pace of

5.47 percent (Regional Statistical Office, Kumasi, 2010). It incorporates around 90 rural areas, a

29
significant number of which were ingested into it because of the interaction of development and

actual extension.

The number of inhabitants in the review were based on building material dealers, building

project workers (contractors). They comprised the number of inhabitants in the concentration

because of the way that they are educated on issues connected with evaluating of building

materials.

There are eighty-five D1K1 registered contractors (Kumasi Metropolitan Assembly 2022). The

population of the Metropolitan Assembly according to 2021 population and Housing Census

stands at 3,490,000. The size of the population based on the building project workers

(contractors) and building materials dealers is infinite and participants of this study are mainly

the contractors and building material dealers of the Metropolis. Recruitment of the study was

solely based on voluntary participation and respondents were briefed on the purpose of the study.

3.3 RESEARCH DESIGN

Following the Literature Review, a survey was conducted with the objective of knowing directly

from the contractors, i.e., the construction personnel their view, issues and suggestions on the

effect of building material cost on sustainable development in Ghana. The questionnaire contains

questions grouped into five sections.

SECTION A: Background of Respondent

SECTION B: Effects of Building Material Cost

SECTION C: Factors Responsible for High-Cost Building Materials

SECTION D: Factors Affecting Housing Development

SECTION E: Solutions That Can Reduce Cost of Building Materials

30
The questionnaire was explained to the contractors to further increase their understanding before

attempting to fill the questionnaires. The questionnaires were collected immediately they were

completed.

3.4 SAMPLE SIZE AND SAMPLING TECHNIQUES

Sampling is a powerful device utilized in research since it lays out the reason for factual

assessment (Monga, 2009). Probability sampling was used to choose an example of respondents

who are proficient in valuing of building materials. Probability sampling was chosen for this

research project due to the time and the population. The population extends to every contractor

available at the time of visit to the construction firms and sites was 65 contractors based on the

respondents of the questionnaire. These 65 contractors have a higher chance of being included in

the survey than those who were not available. This creates a case of convenience sampling. The

questionnaire and the purpose of this research was thoroughly explained to the respondents to

clear any doubts in their minds.

The sample is an important feature of any empirical study in which the goal is to make

inferences about the number of construction companies in Kumasi Metropolis. Sample size

determination is the use of recommended formula by Israel (1992) n=N 1+N (e )2 where n is the

sample sizes and e are the desired level of precision (-/+ 5%) at 90% intervals. In this approach,

every unit has an equal chance of selection. Based on the formula, a sample of forty – five was

enough but the researchers considered fifty for this research consisting of management site

Supervisors and artisans. This will ensure an equal representation of the population (Yin, 2013)

31
3.5 DATA COLLECTION

Both primary and secondary information source were utilized in the significant determinants of

costs increment of building materials in Ghanaian development market. Essential information

source through meetings and optional source involves materials that were acquired from diaries

and other applicable data.

3.5.1 PRIMARY DATA

Primary Data is an original data collected directly by the researcher for the research problem at

hand (Yin, 2013) or primary data is a type of data that is collected by researchers directly from

main sources through interviews, survey, experiment, etc. Primary Data are usually collected

from the source - where the data originally originates from and are regarded as the best kind of

data in research. (Primary, January, 2020) The primary data was collected through administration

of questionnaires to the selected samples. The researcher settled on questionnaires administration

to the study population in the Kumasi Metropolis. The selection criterion of the respondents was

based on their expertise as well as their role in the company. It was conducted in correlation with

the theoretical framework which helped the researcher to ask questions that addressed the

research problem.

3.5.2 SECONDARY DATA

Secondary Data is information convened for it cause other than the completion of a research

project. A variety of secondary information sources was available to the researcher will gathering

data on the case under study. Secondary data was also used to gain initial insight into the

32
research problem. The two major advantages of using secondary data in construction firm

research are time and cost savings. The secondary data sources in this research will include

published journals articles, published books, company website among other secondary data

sources. The use of secondary data will save time and money because the researcher needed only

to go to library and locate and utilize the sources.

3.6 METHOD ANALYSIS

The Statistical Package for Social Sciences (SPSS) adaptation 21 and Microsoft succeed (2016)

were utilized to investigate the information. The SPSS was utilized to handle the information and

the Microsoft succeed was utilized to plot the graphs. Distinct measurements of frequencies and

rates were utilized in the information examination process.

3.7 DATA ANALYSIS

The study analyzed data with statistical packages for the social science. In Saunders et all.

(2017), analysis is the ability to breakdown data and to clarify the nature of the component parts

and the relationship between them. Analysis is aimed to obtain frequencies and percentages of

open and close-ended responses to assist in identifying trends that appeared from responses. This

were used to generate tables, pie charts and other relevant graphs.

33
CHAPTER FOUR

4.0 STUDY RESULTS

4.1 INTRODUCTION

This chapter presents the results of the study. The chapter first represents or the demographic

profile of respondent. Subsequently, results obtained for the various research question or specific

objective is presented.

4.2 DEMOGRAPHY OF RESPONDENT

This section presents the bio data of the respondent. The section covers the gender, level of

education, age and religion, marital status.

TABLE 4.2: DEMOGRAPHIC PROFILE OF THE RESPONDENTS

AGE FREQUENCY PERCENTAGE (%)

20-30 years 5 20.0

31-40 years 5 20.0

41-50 years 7 28.0

51 years and above 8 32.0

TOTAL 25 100.0

34
EDUCATIONAL LEVEL FREQUENCY PECENTAGE (%)

MSL/JHS GRADUATE 2 8.0

TECHNICAL/ 4 16.0

VOCATIONAL

HIGH SCHOOL GRADUTE 6 24.0

HND/BACHELOR 8 32.0

MASTERS 5 20.0

TOTAL 25 100.0

35
RELIGION FERQUENCY PERCENTAGE (%)

CHRISTIANS 15 60.0

MUSLIMS 8 32.0

TRADITIONALISTS 2 8.0

TOTAL 25 100.0

MARITAL STATUS FREQUENCY PERCENTAGE (%)

SINGLE 5 20.0

MARRIED 12 48.0

SEPARATED 6 24.0

WIDOWED 2 8.0

TOTAL 25 100.0

36
POSITION IN FREQUENCY PERCENTAGE (%)

CONSTRUCTION FIRM

SITE 7 28.0

ENGINEER/SUPERVISOR

GENERAL FOREMAN 10 40.0

CONTRACTOR 8 32.0

TOTALS 25 100.0

YEARS SPENT IN FR YEARSEQUENCY PERCENTAGE (%)

CONSTRUCTION FIRM

1-5 YEARS 4 16.0

6-10 YEARS 6 24.0

37
11-15 YEARS 3 12.0

16-20 YEARS 5 20.0

21 YEARS AND ABOVE 7 28.0

TOTAL 25 100.0

COMPANY’S YEARS OF FREQUENCY PERCENTAGE (%)

EXISTENCE

1-5YEARS 2 8.0

6-10YEARS 4 16.0

11-15YEARS 4 16.0

16-20YEARS 7 28.0

21YEARS AND ABOVE 8 32.0

38
TOTAL 25 100.0

4.3 THE KNOWLEDGE OF THE EFFECT OF BUILDING MATERIAL COST.

This section presents the knowledge of the effect of building material cost. Thus, it finds out the

respondents view on fluctuation in cost of construction, increase in final cost of building product,

low volume of construction product, increase in project abandonment, high rate of contractors’

fraudulent practices, collapse of building due to less quality materials, volume of construction

output is affected and rate of employment is affected.

4.3.1 RESPONDENTS’ VIEW ON FLUCTUATION IN COST OF CONSTRUCTION

The figure below shows the respondents view on fluctuation in cost of construction was revealed

that 48% of the majority respondent indicated that they strongly agree to the effect, 40% agree,

12% being neutral, 0% disagree and 0% strongly disagrees.

39
FIGURE 4.3.1 RESPONDENT VIEW ON FLUCTUATION OF COST IN CONSTRUCTION

Respondent intent on fluctuation in cost of construction

neutral
12%

strongly
agree
48%

agree
40%

4.3.2 RESPONDENTS’ VIEW ON THE INCREASE IN FINAL COST OF BUILDING PRODUCT

The figure below shows the respondents view on the increase in final cost of building product

was revealed that 24% of the majority respondent indicate that they strongly agree to effect, 20%

agree, 20% were neutral, 20% disagree and 16% strongly disagrees.

40
FIGURE 4.3.2: RESPONDENTS TAKE ON INCREASE OF FINAL COST OF BUILDING

PRODUCT

increase in final cost of building product

strongly
disagree
16% strongly agree
24%

disagree
20%

agree
20%
neutral
20%

41
4.3.3 RESPONDENTS VIEW ON LOW VOLUME OF CONSTRUCTION PRODUCT

The figure below shows the respondents view on low volume of construction product was

revealed that 40% of the majority respondent indicate that they strongly agree to effect, 24%

agree, 8% were neutral, 16% disagree and 12% strongly disagrees.

FIGURE 4.3.3: RESPONDENTS VIEW ON OW VOLUME OF COSTRUCTION PRODUCT

low volume of construction product

strongly disagree
12%
strongly agree
disagree 40%
16%

neutral
8%

agree
24%

42
4.3.4 RESPONDENTS VIEW ON THE INCREASE IN PROJECT ABANDONMENT

The figure below shows the respondents view on the increase in project abandonment was

revealed that 60% of the majority respondent indicate that they strongly agree to effect, 16%

agree, 16% were neutral, 8% disagree and 0% strongly disagrees.

FIGURE 4.3.4: RESPONDENTS TAKE ON INCREASE IN PROJECT ABANDONMENT

increase in project abandonment

disagree
8%
neutral
16%

strongly agree
agree 60%
16%

43
4.3.5 RESPONDENTS VIEW ON THE HIGH RATE OF CONTRACTORS’ FRAUDULENT

PRACTICES

The figure below shows the respondents view on the high rate of contractors’ fraudulent

practices was revealed that 28% of the majority respondent indicate that they strongly agree to

effect, 32% agree, 16% were neutral, 12% disagree and 12% strongly disagrees.

44
FIGURE 4.3.5: RESPONDENTS VIEW ON HIGH RATE OF CONTACTORS’ FRAUDULENT

PRACTICES

HIGH RATE OF CONTRACTORS' FRAUDULENT

PRACTICES
Strongly disagree
12% Strongly
agree
28%
Disagree
12%

Neutral
16%

Agree
32%

45
4.3.6 RESPONDENTS VIEW ON THE COLLAPSE OF BUILDINGS DUE TO LESS QUALITY

MATERIALS

The figure below shows the respondents view on the collapse of buildings due to less quality

materials was revealed that 52% of the majority respondent indicate that they strongly agree to

effect, 28% agree, 8% were neutral, 8% disagree and 4% strongly disagrees.

FIGURE 4.3.6: RESPONDENTS TAKE ON THE COLLAPSE OF BUILDING DUE TO LESS

QUALITY MATERIALS

COLLAPSE OF BUILDINGS DUE TO LESS QUALITY

MATERIALS

Dis-
agree Strongly disagree
8% 4%

Neutral
8%

Strongly
agree
52%

Agree
28%

46
4.3.7 RESPONDENTS VIEW ON THE VOLUME OF CONSTRUCTION OUTPUT IS AFFECTED

The figure below shows the respondents view on how the volume of construction output is

affected was revealed that 32% of the majority respondent indicate that they strongly agree to

effect, 24% agree, 16% were neutral, 12% disagree and 16% strongly disagrees.

47
FIGURE 4.3.7: RESPONDENTS TAKE ON THE VOLUME OF COSTRUCTION OUTPUT IS

AFFECTED

VOLUME OF CONSTRUCTION OUTPUT IS AFFECTED

Strongl
y dis-
agree
16% Strongl
y
agree
32%
Dis-
agree
12%

Ne
utr
al
16 Agree
% 24%

48
4.3.8 RESPONDENTS VIEW ON THE RATE OF EMPLOYMENT IS AFFECTED

The figure below shows the respondents view on how the rate of employment is affected was

revealed that 40% of the majority respondent indicate that they strongly agree to effect, 20%

agree, 16% were neutral, 12% disagree and 12% strongly disagrees.

FIGURE 4.3.8: RESPONDENTS VIEW ON THE RATE OF EMPLOMENT IS AFFECTED

RATE OF EMPLOYMENT IS AFFECTED

Strongly disagree
12%

Disagree Strongly
12% agree
40%

Neutral
16%

Agree
20%

49
4.4 FACTORS RESPOSIBLE FOR HIGH COST OF BUILDING MATERIALS

As shown in the figure below, the major factor that seems responsible for the high cost of

building materials were transportation (60%) and energy cost (60%). Moreover, 52% of the

respondents strongly agreed to the fact that importation is also responsible for the high cost of

building materials. Also, 48% of the respondents strongly agree that exchange rate and high cost

of raw materials are also factors responsible for high cost of building materials. It was revealed

that 40% of the respondents strongly agree to the fact that inadequate production of raw

materials and increase in local taxes and charges are responsible for the high cost of building

materials. Furthermore, 32% of the respondents strongly agree that demand of the building

materials is also responsible for the high cost of building materials.

Strongly agree = 1, Agree = 2, Neutral = 3, Disagree = 4 and, strongly disagree = 5

TABLE 4.4.1: FACTORS RESONSIBLE FOR HIGH COST OF BUILDING MATERIALS

c 1 2 3 4 5 TOTAL

IMPORTATION 52% 28% 8% 8% 4% 100%

TRANSPORTATION 60% 20% 8% 8% 4% 100%

EXCHANGE RATE 48% 28% 12% 8% 4% 100%

50
INADEQUATE PRODUCTION OF RAW 40% 24% 8% 16% 12% 100%

MATERIALS

ENERGY COST 60% 32% 8% 0% 0% 100%

INCREASE IN LOCAL TAXES AND CHARGES 40% 20% 8% 16% 16% 100%

HIGH COST OF RAW MATERIALS 48% 20% 16% 8% 8% 100%

DEMAND 32% 24% 24% 12% 8% 100%

CHOICE OF MATERIALS 28% 20% 16% 20% 16% 100%

Strongly agree = 1, Agree = 2, Neutral = 3, Disagree = 4 and, strongly disagree = 5

1 2 3 4 5 TOTAL

EMBRACE PREFABRICATION 28% 32% 12% 16% 12% 100%

GO LEAN 32% 24% 20% 12% 12% 100%

BUY FROM SPECIALIZED SUPPLIERS 40% 32% 8% 12% 8% 100%

BUY IN BULK 48% 40% 8% 4% 0% 100%

51
52
CHAPTER FIVE

5.0 INTRODUCTON

This chapter presents a summary of the study. It includes conclusions drawn from the findings of

the study as well as some recommendations made based on the findings of the study.

5.1 SUMMARY OF THE FINDINGS

The findings of the effect of building materials cost on housing development in Ghana interrupt

the development of the construction society due to several affected factors such as, collapse of

buildings due to less quality material, high rate of contractors’ fraudulent practices and increase

in project abandonment. It is observed that, increase in project abandonment is the most affected.

Further finding indicated that there will be high cost of maintenance due to the low quality of

building materials used during the execution of the project. y. One of the characteristics of a

developed construction industry is in the output of quality buildings and structures. Therefore,

stakeholders’ satisfaction and timely project completion has been a yardstick for measuring

project success in relation to time, quality, scope and cost.

53
5.2 RECOMMENDATION

The following are the recommendations given

I. Government should encourage and support private industries to produce goods locally

which will help subside the amount of importing building materials into the country for

patronization.

II. There should be uniform prices and this can be achieved when government create a

relevant body to help checkmate the activities of building material sellers.

III. With the purpose of guiding against excessive fluctuation in the cost of construction,

stakeholders should have a well-developed plan for materials in advance to avoid the

effect of the increase in building material prices in the market.

IV. Thus, proper planning and scheduling at the initial stages of construction are very

essential, which includes the early purchase of building materials within the budgeted

cost and suitable storage of building materials is to be adopted to avoid cost overrun,

disputes, and inflation.

V. Government should make an impact by subsidizing the prize of building materials in

order to increase the standard of building using adequate and efficient materials for

building.

54
5.3 CONCLUSION

Increasing price of building materials has several effects on the industry and building society as a

whole, the rising cost of the building material has high implication on affordable housing and has

high implication on construction cost and risk of project abandonment due to delay in project

completion as well as the construction standard building, and also increase in the price of rent

paid by renters.

55
5.4 REFERENCES

P. Akanni, A. Oke and O. Omotilewa, "Implications of Rising Cost of Building Materials in

Lagos State Nigeria." SAGE Open, vol. 4, no. 4, 2014.

, K. (2017) The Price “U-Turn”: What Rising Material Costs Mean for Construction.

Construction Dive. [Link]

material-costs-mean-for-construction/438488/

Ayodele, E.O.; Alabi, O.M. Abandonment of construction projects in Nigeria: Causes and

effects. J. Emerg. Trends Econ. Manag. Sci. 2011, 2, 142–145

] Pashardesa, P. and Savva, C.S. (2009) Factors Affecting House Prices in Cyprus: 1988-2008.

Cyprus Economic Policy Review, 3, 3-25

P. W. Ihuah, "Building materials costs increases and sustainability in real estate development in

Nigeria," African J. Economic and Sustainable Development, vol. 4, no. 3, pp. 218-233, 2015.

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development

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APPENDICE

Appendix A (Questionnaire)

We are Building Technology students of Kumasi Technical University and we are conducting a

study on the topic EFFECT OF BUILDING MATERIAL COST ON HOUSING

DEVELOPMENT IN GHANA.

QUESTIONNAIRES

The purpose of this questionnaire intends to gather viable information and details pertaining to

the stated project topic above. This questionnaire is strictly for educational use only, and every

information provided (respondent) shall be treated confidentially. I would dearly appreciate if

you extend a helping hand in answering the following questions provided below.

SECTION ‘A’ BACKGROUND OF RESPONDENT

Please tick as appropriate

1. Gender?

Male [ ] Female [ ]

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 2. What is your level of education?

MSLC/JHS [ ] Technical/Vocational [ ] SHS [ ] HND/Bachelor [ ]

Master Degree [ ]

3. What is your position in this construction firm?

Site Engineer/Supervisor [ ] General foreman [ ] Contractor [ ]

4. How long have you been working in the construction firm?

1-5 years [ ] 6-10 years [ ] 11- 15 years [ ] 16-20 years [ ] 21years and above [ ]

5. What is your average age category?

20-30 years [ ] 31-40 years [ ] 41- 50 years [ ] 51 and above [ ]

6. Company’s years of existence?

1-5yrs [ ] 6-10yrs [ ] 11-15yrs [ ] 16-20 yrs [ ] 21yrs and above [ ]

7. Classification of company?

D1K1 [ ] D2K2 [ ] D3K3 [ ] D4K4 [ ]

SECTION ‘B’ EFFECT OF BUILDING MATERIAL COST

What are the effects of building material cost on housing development in the construction

industry?

Please indicate your reaction to each statement by ticking appropriate cell.

Strongly agree = 1, Agree = 2, Neutral = 3, Disagree = 4 and, strongly disagree = 5

EFFECT OF BUILDING MATERIAL COST 1 2 3 4 5

Fluctuation in cost of construction

Increase in final cost building product

Low volume of construction product

Increase in project abandonment

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High-rate contractors’ fraudulent practices

Collapse of building due to less quality materials

Volume of construction output is affected

Rate of employment is affected

SECTION ‘C’ FACTORS RESPONSIBLE FOR HIGH COST OF BUILIING MATERIALS

What are the factors responsible for the increase of building materials cost in the construction

industry?

Please indicate your reaction to each statement by ticking appropriate cell .

FACTORS RESPONSIBLE FOR HIGH COST OF BUILDING 1 2 3 4 5

MATERIALS

Importation

Transportation

Exchange rate

Inadequate production of raw materials

Energy cost

Increase in local taxes and charges

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High cost of raw materials

Demand

Choice of materials

SECTION ‘D’ FACTORS AFFECTING HOUSING DEVELOPMENT IN GHANA

What are the issues affecting the work that goes into housing development in Ghana?

Please indicate your reaction to each statement by ticking the appropriate cell.

Factors Affecting Housing Development 1 2 3 4 5

Buildable Lots

Supply and Demand

Government Regulation

Project Financing

Appraisal and Title Insurance

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SECTION ‘D’ SOLUTIONS THAT CAN HELP REDUCE THE COST OF BUILDING

MATERIALS

What are the solutions that can help reduce the cost of building materials in the construction

industry?

Please indicate your reaction to each statement by ticking appropriate cell.

SOLUTIONS THAT CAN HELP REDUCE THE COST OF 1 2 3 4 5

BUILDING MATERIALS

Embrace prefabrication

Go lean

Buy from specialized suppliers

Buy in bulk

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