Causes of High Costs of Construction in Nigeria

TLDR

The study examines the causes of high construction costs in Nigeria. A questionnaire targeting engineers, architects, surveyors, contractors, and other industry professionals was distributed and analyzed by profession, role, and construction type to identify delay and cost‑overrun factors. Delays and direct cost overruns drive high construction costs, with material shortages, financing/payment problems, poor contract management, and price fluctuations identified as key contributors, and better resource management can reduce costs.

Abstract

This paper concerns an investigation into the causes of high costs of construction in Nigeria. A preliminary survey involving all the professionals in the construction industry identified delays and direct cost overruns of the project as the principal factors leading to the high cost of construction. A questionnaire was then designed incorporating factors causing delays and cost overruns. It was distributed to engineers, architects, quantify surveyors, contractors and others involved in construction. A method of analysis was formulated and carried out based on the profession of the respondents and on the role of the individual in the industry (i.e., client, consultant, and contractors) and on the nature of construction (civil works and building works). Results indicate that: (1) High costs can be minimized by minimizing lapses in the management of human and material resources; (2) despite some slight differences, the professionals generally agreed that shortage of materials, methods of financing and payments for completed works, and poor contract management are the three major reasons for high construction costs', and (3) price fluctuation was identified as the most important factor responsible for the escalation of project costs.