Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania

The adoption of incremental owner-built techniques in housing construction relies on the associated lower cost compared to developer-built approaches. The mechanism that lowers cost is however, not obvious. This study is based on survey data that were collected using questionnaires which were dis...

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Main Authors: Sanga, Samwel Alananga, Lucian, Charles
Format: Article
Language:English
Published: Penerbit Universiti Sains Malaysia 2016
Subjects:
Online Access:http://eprints.usm.my/41445/1/JCDC_21%281%29_2016-Art._6_%28113-130%29.pdf
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author Sanga, Samwel Alananga
Lucian, Charles
author_facet Sanga, Samwel Alananga
Lucian, Charles
author_sort Sanga, Samwel Alananga
collection USM
description The adoption of incremental owner-built techniques in housing construction relies on the associated lower cost compared to developer-built approaches. The mechanism that lowers cost is however, not obvious. This study is based on survey data that were collected using questionnaires which were distributed to 200 respondents in Dar es Salaam, Tanzania with response rate of 22.5%. The analysis results, based on descriptive statistics and regression analysis indicate that an incremental house-builder targeting an additional bedroom incrementally spends 28% lower annual construction cost and each additional square meter built, is associated with 0.4% lower cost. However, such lower cost comes at a 5%–10% longer completion time. These observations suggest that spreading costs over time reduces construction cost through multiple cost-saving channels opened up by time itself and factor intensity. The intensity of incremental housing construction favours increasing expenditure on labour than capital yielding a 5% reduction in annual cost but the greatest cost reduction benefit of up to 26% is realised through increasing expenditure on "capital" with fixed spending on materials during construction.
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spelling usm.eprints-414452018-08-21T01:24:51Z http://eprints.usm.my/41445/ Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania Sanga, Samwel Alananga Lucian, Charles TH1-9745 Building construction The adoption of incremental owner-built techniques in housing construction relies on the associated lower cost compared to developer-built approaches. The mechanism that lowers cost is however, not obvious. This study is based on survey data that were collected using questionnaires which were distributed to 200 respondents in Dar es Salaam, Tanzania with response rate of 22.5%. The analysis results, based on descriptive statistics and regression analysis indicate that an incremental house-builder targeting an additional bedroom incrementally spends 28% lower annual construction cost and each additional square meter built, is associated with 0.4% lower cost. However, such lower cost comes at a 5%–10% longer completion time. These observations suggest that spreading costs over time reduces construction cost through multiple cost-saving channels opened up by time itself and factor intensity. The intensity of incremental housing construction favours increasing expenditure on labour than capital yielding a 5% reduction in annual cost but the greatest cost reduction benefit of up to 26% is realised through increasing expenditure on "capital" with fixed spending on materials during construction. Penerbit Universiti Sains Malaysia 2016 Article PeerReviewed application/pdf en http://eprints.usm.my/41445/1/JCDC_21%281%29_2016-Art._6_%28113-130%29.pdf Sanga, Samwel Alananga and Lucian, Charles (2016) Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania. Journal of Construction in Developing Countries , 21 (1). pp. 113-130. ISSN 1823-6499 http://web.usm.my/jcdc/vol21_1_2016/JCDC%2021(1)%202016-Art.%206%20(113-130).pdf
spellingShingle TH1-9745 Building construction
Sanga, Samwel Alananga
Lucian, Charles
Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title_full Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title_fullStr Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title_full_unstemmed Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title_short Cost Shares and Factor-Cost Ratios in Owner-Built Incremental Housing in Dar Es Salaam, Tanzania
title_sort cost shares and factor cost ratios in owner built incremental housing in dar es salaam tanzania
topic TH1-9745 Building construction
url http://eprints.usm.my/41445/1/JCDC_21%281%29_2016-Art._6_%28113-130%29.pdf
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AT luciancharles costsharesandfactorcostratiosinownerbuiltincrementalhousingindaressalaamtanzania