ENVIRONMENTAL FACTORS INFLUENCING CONSTRUCTION TIME AND COST OVERRUNS ON HIGH-RISE PROJECT IN NIGER (SCIENCE PROJECT TOPICS AND MATERIALS)
1.0 Background of the study
The expanding need for building of all kinds, coupled with a tight financial supply has offer the construction industry with a large challenge to cut cost.
According to Mendelson and Greenfield (1996) the remaining part of the twentieth century would involve corporations, institutions and government in a race to survive. The attendant dwindling economic fortune of countries economies around the globe have geared up the respondent in these sectors (the client in particular) to take up the problem of ensuring efficient use of their resources to obtain value for money in terms of performance.
The total cost of construction in normal circumstances is expected to be the sum of the following cost: Materials, Labour, Site Overheads, Equipment/Plant, Head office Cost and Profit but in many parts of the world particularly in Nigeria, there are other costs to be allowed for. These costs according to Mbachu and Nkado (2004) have obvious negative effect for the key business stakeholders in particular, and the industry as a whole. To the client, high cost implies added costs over and above those initially agreed upon at the onset, resulting in less returns on investment. To the end user, the added costs are passed on as higher rental / lease costs or prices. To the consultants, it means inability to deliver value – for – money and could tarnish their reputation and result in loss of confidence reposed in them by clients. To the contractor, it implies loss of profit through penalties for non-completion, and negative word of mouth that could jeopardize his/her chances of winning further jobs, if at fault. The proposed work will investigate and report the other costs to be allowed for, which are the basic factors affecting construction cost in Nigeria and also proffer solutions to how construction cost can be minimized.
1.1 Statement of the Problem
The demand for more construction of all types, coupled with a tight monetary supply has provided the construction industry with a big challenge to cut costs. The problem of high contract costs of all aspects of construction is becoming obvious. Consequently, substantial increases are being observed in projects.
This substantial increase has brought about loss of client confidence in consultants, added investment risks, inability to deliver value to clients, and disinvestment in the construction industry.