FACTORS AFFECTING COST OF CONSTRUCTION （影响施工成本的因素）.pdf

FACTORS AFFECTING COST OF CONSTRUCTION IN NIGERIA BY ESHOFONIE, FIKIEMO PATIENCE PRESENTED TO THE DEPARTMENT OF BUILDING UNIVERSITY OF LAGOS AKOKA, LAGOS IN PARTIAL FUFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTERS IN CONSTRUCTION MANAGEMENT NOVEMBER, 2008 1 1.0 CHAPTER ONE 1.0 Background of the study The growing need for construction of all types coupled with a tight monetary supply has provided the construction industry with a big 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 nations economies around the World have geared up the participant in these sectors (the client in particular) to take up the challenge 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 implications for the key stakeholders in particular, and the industry in general. 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 consu