Factors affecting cost of Construction

  • Fluctuation in currency exchange rate-The production of basic components requires importation of some materials, in time of downfall in naira to dollar, we can see the effect in the immediate 100% rise in price of cement and other materials.
  • Dependency on foreign materials for construction-For materials gotten out of the country, determination of prices may be difficult, it will either goes up or down in most cases there is always an arbitrary rise in cost.
  • Theft-Adequate security must be provided for materials if not they will be stolen and you will need to replace them.
  • Contract Management-Schedule by timing and milestones with cost should be maintained, but for every fluctuation it must be clear to the contractor and the client. Any delay or not keeping with the specifications will affect cost of production.
  • Use of Quacks-Professionals actually saves money, it is advisable you use them to forestall costly errors in construction which can result in demolition and rebuilding which ultimately affects the final cost of construction.
  • Economic instability-Just as we have in Nigeria, cost of construction have one high across board.
  • Fluctuation of prices of materials-In a volatile economy , it is increasingly difficult to peg price of materials, this also affects the final cost of construction.
  • Poor planning-If you fail to plan, you already planned to fail. Tasks have sequence, you need to have a good plan to forestall or reduce wastages
  • Experience-Contractor’s experience will also affects how best you save money. Wastages will be reduced with an experienced contractor
  • Size-Size or numbers of project can give you a comparative advantage. The more the quantities of materials you are to purchase, the better the option of getting a good discount.
  • Quality or type of material- In most cases better quality materials gives better product but they are also costlier.
  • Type or Construction method- These are buildings that requires specialist input, of course you hire them with a lot of money.
  • Types of building-Houses made with mud,brick, blocks or concrete will also differs in prizes.
  • Financial status of owners- The reason architects demand the amount you are willing to commit on the project will determine the type of building been proposed for you.
  • Taste of owner/client-High class building with lots of luxury will definitely makes cost to go up.
  • Project Site Accessibility-If road leading to your site is not motorable, is either additional cost of the road will have to be added or the cost of labour of retransporting materials from a convenient spot to the site by labourers will be factored into the cost.
  • Government taxes, policies etc- There are areas you build that government will require you pay some money before they can allow you to build. Government regulations can make your cost to go high.
  • Omoonile/ site nuisances-These things can actually influence the cost of building if they aren’t properly handled.
  • Land dispute-If you have commenced construction and there are those laying claims to the ownership of the land, expect to spend money on legal fees etc before final settlements
  • Professional fees-This varies, it can be high for high networth professional and low for starters, all still contribute to cost of construction
  • Negotiation skill from contractor and owner
  • Agreement and clarity of a project- For a project that is not well understood by owner and contractor avoidable errors will affect cost of construction.
  • Competition- When there stiff competition cost of material and engaging professionals may likely drop.
  • Social Problems-Ethnic issues, religious issues and cultural issues also determines style of building which also affects cost.
  • Site preliminaries, overheads when overlook can cost you a lot which can affect significantly the total cost of construction.
  • Using non-professional family members- this has always resulted to fraud for many building owners, avoid it.
  • Labour rates –Labour rates differs for each area, the area site is located will determine the labour rate you use in your estimation.
  • Material cost
  • Project schedule
  • Contigency
  • Mechanised equipments- Will affects either price up or down depending on the scale of project.
  • Designing with even number of two feet increments- From the architect, this contributes in reducing wastages during construction as materials are in multiples of the module.
  • Number of Storeys- The higher you climb the higher the cost
  • Type of roof- complex roof will cost more.
  • Finishes-Good finishes will likely go with a higher cost.
  • Design features-Swimming pool, garden, carpark etc
  • Purpose of building-For building that will accommodate more people, machineries etc will require targeted structural designs that may cost more.

Church and mosque buildings for instance are always higher than normal residential bungalow.

  • Expectant lifespan will also affect the structural detailing which will also affect cost
  • Procurement method- You can buy in bulk which is cheaper and direct from wholesalers or manufacturers to buying from retailers
  • Environmental factors-
  • Climatic Conditions- Cost of construction can go higher during rainy season due to disturbances
  • Fraud from family members, contractors, suppliers etc.

 

 

 

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