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Ensuring Cost Management in Construction

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By Mercy Kelani

Nigeria's building industry has been severely damaged by hyperinflation.

In order to overcome obstacles in Nigeria’s Construction industry, Kene Nzekwe, the president of the Nigerian Institute of Quantity Surveyors (NIQS), has emphasised the significance of cost management. Speaking at an event in Abuja, Nzekwe pointed out that hyperinflation is a significant problem for the industry, forcing stakeholders to reevaluate their plans for survival. He underlined NIQS’s responsibility to counsel stakeholders on efficient cost control and offer ways to lessen financial burden. Nzekwe voiced confidence about recent economic developments, including possible exchange rate stabilisation and falling fuel prices.

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He emphasised that the sector might benefit from these trends. He also emphasised that hiring experts in the sector might have a major positive impact on the nation’s Economy and asked the government to acknowledge the value of quantity surveyors in national development. Nigeria’s building industry has been severely damaged by hyperinflation, which has raised costs and caused project delays. Inflation has impacted key aspects of construction during the last three years, endangering Nigeria’s ability to meet the Sustainable Development Goals (SDGs) pertaining to building.

Gov’t should take particular steps to help the building industry.

To counteract these issues, the Nigerian Institute of Quantity Surveyors (NIQS) has implemented a number of measures to lessen the impact of hyperinflation. Building a thorough cost database for the building sector is one important project. The goal of this databank is to be a vital resource for comparing the prices of capital projects, which will improve decision-making and encourage economical building methods. Stakeholders in the industry have reiterated the necessity of these actions. In the midst of economic constraints, for example, Obafemi Onashile, President of the Quantity Surveyors Registration Board of Nigeria (QSRBN), stressed the significance of Innovation and adaptation.

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More so, he emphasised that in order to stay ahead of the competition, quantity surveyors need to be resilient, adaptable, and creative, introducing fresh concepts and offerings. The government should take particular steps to help the building industry even more. For example, involving quantity surveyors in policy-making can help the business by bringing their knowledge of sustainability, procurement, and construction cost management to the table. Promoting the use of domestically produced building supplies can lessen reliance on imports and lessen the effect that fluctuations in currency rates have on building expenses.

Sustainability of the construction sector depends on efficient cost control.

Corruption in the construction industry can be fought by putting in place training programs that emphasise moral behaviour and openness, which will guarantee that resources are used effectively and projects are finished on schedule and within budget. By enacting these policies, the government can guarantee the effective completion of projects, stabilise the Construction Sector in the face of economic difficulties, and advance national development. The Sustainability of Nigeria’s construction sector depends on efficient cost control, particularly when dealing with issues like resource shortages and hyperinflation.

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Project managers’ experience and skill, management support, project communication, and the usage of project management technologies are some of the major elements affecting cost management in Nigerian construction companies, according to a study by Zakariyau et al. (2022). A comprehensive cost databank has been introduced by the Nigerian Institute of Quantity Surveyors (NIQS) to improve project delivery efficiency and decision-making in response to these issues. Stakeholders in the industry stress how crucial it is to innovate and adjust to economic challenges.

Related Article: Quantity Surveyors Lament Hyperinflation 

For quantity surveyors to keep ahead of the competition, Obafemi Onashile, President of the Quantity Surveyors Registration Board of Nigeria (QSRBN), has encouraged them to provide innovative concepts and services. Enacting favourable fiscal and monetary policies, encouraging the use of local materials, and creating a trustworthy cost database are some of the particular measures the Nigerian government may take to further assist the building sector. Through the implementation of these policies, the government may promote a more stable and sustainable environment for Infrastructure development by easing the strain that hyperinflation is placing on the building sector.

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