1. Causes and Types of Building Defects in Ghana’s Real Estate Industry: Perception of Private Owners and Homeowners in Accra
Lewis Abedi Asante
Department of Estate Management, Kumasi Polytechnic, Kumasi, Ghana
Dennis Papa Odenyi Quansah
Mobus Property Developments, Accra, Ghana
This presentation is kindly sponsored by IRE|BS Foundation for African Real Estate Research

2. Presentation Outline Introduction Research Objective
Theoretical Framework
Study Area and Methodology
Results and Discussion
Conclusion and Recommendation

3. Introduction
Currently, the real estate industry is the third largest target of new investments (Asiedu and Arku, 2009)
From 38 in 1988, private developers now number over 400 (GREDA Newsletter, 2014)
Several studies have been conducted on the growth and activities of private developers in Ghana (Grant, 2007; Asiedu and Arku, 2009; Ametefe et al, 2011; Obeng-Odoom, 2010; Arku, 2006; Arku, 2009, Teye et al, 2015)
These studies focus on the history of real estate development in Ghana, the growth of the industry and the current trends
The GAP: Few studies on the causes and types of defects that occur in buildings developed by private developers

4. Introduction (Contd.) This paper is premised on three key issues:
One of GREDA’s objective:
have a responsibility to the consumer by avoiding shoddily erected buildings and to provide quality service conforming to agreed professional standards. Consequently, the Association supports the establishment of a warranty scheme to protect the consumer from defects and shoddy work
General perception that private developers build sub-standard properties
The occurrence of defects in buildings have resulted in disputes between private developers and homeowners

5. Research Objective
To find out the common types and causes of defects in buildings developed by private developers in Ghana.

6. Some Useful Definitions
Building Defect
is a failing or shortcoming in the function, performance, statutory or user requirements of a building, which manifest itself within the structure, fabric, services or other facilities of the affected building
Private developer
is a company that develops and sells buildings
Homeowner
is an individual who has purchased a property developed by a private developer

7. Theoretical Framework
Theories:
Wear and tear theory: everyday activities of life leads to disease states (MacWilliams, 2002)
Non-programmed theory: ageing is the result of an organisms inability to combat natural deteriorative processes (Goldsmith, 2014)
Passage of time and continuous usage, proper or improper, leads to building defects
Buildings have lifespan and will develop defects irrespective of the level of maintenance (Gyamfi-Yeboah and Ayitey, 2009)

8. Study Area and Methodology
Why Accra
Almost all houses developed by GREDA members can be found in economically areas (Yankson, 2012)
About 85% of all new properties are built in cities (Arku, 2006)
Methodology
Case study
Primary and secondary data
Questionnaire
Convenience and stratified sampling
29 private developers and 58 homeowners
Data Analysis: tabulation and relative importance index

9. Extended Map of Accra showing Housing Development Sites of Private Developer

10. General information about respondents

11. Types of Building Defects

12. Types of Building Defects

13. Comparison of Responses

14. Causes of Building Defects

15. Causes of Building Defects

16. Comparison of Results

17. Comments from Respondents
Banker, 38 yrs
“5 months after I moved into my house,
I came back to work to realize my kitchen
was wet. When I checked I found that a
pipe under the sink was leaking badly”
Entrepreneur, 45 yrs
“the roof of my building started leaking 4 months after I moved into it; I reported to the estate unit of the private developer and an artisan was sent to repair the defect but it was still leaking; I then decided to engage an artisan myself and took the bill to the private developer to pay; the private developer refused to pay on the grounds that it is its responsibility to repair all defects that manifest in the building during the DLP”
Private developer, 9 yrs in the industry
“the recent June 3 heavy downpour fell a tree which collapsed part of the fence wall of one of our homeowners and he reported to us to repair the damage to the fence wall; we refused to fund the repairs because it is clearly indicated in our sales contract that we are not responsible for defects caused by an ‘Act of God”

18. Conclusion and Recommendation
Common types of defects include:
Defective or faulty plumbing
Wall cracks
Defective or faulty electrical wiring
Faulty drainage systems
Common causes of defects include:
Improper installation of materials
Defective materials
Inadequate artisan skills
Recommendation
Strict supervision of artisans and sub-contractors
“Some” private developers should purchase quality materials for construction