The Effect Of Cost Of Construction And Property Development

The Effect Of Cost Of Construction And Property Development

Abstract

Construction cost and property development in Nigerian has turn out to be a serious issue as the cost at which material are raised to makes it delicate for a simple Nigerian man to embark on construction work or property development design. thus, this exploration work aims at discovering the goods of the cost of construction among the Nigerian citizens. And seek result on how this cost can be reduced by a high number chance. This exploration work makes use of check design system to carry out this exploration work, and a total number of seventy( 70) repliers where used, and the data attained was dissect using the SPSS package.

Chapter One

Preface

Property development is a complex exertion, with a series of stages involving numerous actors with differing objects, all operating within the structure cycle environment and its commerce with business and credit cycles. Before inventors commit to acquiring land and subscribing a structure contract, they first estimate the request to establish a design’s viability, and secure finance and planning warrants( Wilkinson & Reed, 2008).

Construction cost estimate is the quantum imaged to finish a construction work. It’s the probable quantum that’s reckoned to complete a construction work. It’s a vaticination of the quantum of a design grounded on available data at the time of vaticination. Cost estimate was defined by Business Dictionary( 2013), as an “ approximation of the probable cost of a product, program, or design, reckoned on the base of available information ”. So the further information is handed on a design, the further the estimate tends to delicacy. It’s important in numerous ways.

The purpose of this document is to gain sapience into the nature of the property development process and cost of construction to inform a after stage of this exploration that will pursue lesser understanding of the factors that will encourage inventors to embark on thick domestic and marketable developments around conveyance capitals in Nigeria. In this exploration work a brief overview of the phases of property development is handed. The original evaluation phase is also explored in lesser depth and the cost of construction.

Background Of The Study

The growing need for construction of all types coupled with a tight financial force has handed the construction assiduity with a big challenge to cut cost.

According to Mendelson and Greenfield( 1996) the remaining part of the twentieth century would involve pots, institutions and government in a race to survive. The attendant abating profitable fortune of nations husbandry around the World have geared up the party in these sectors( the customer in particular) to take up the challenge of icing effective use of their coffers to gain value for plutocrat in terms of performance.

The total cost of construction in normal circumstances is anticipated to be the sum of the following cost Accoutrements, Labour, Site Charges, Equipment/ Plant, Head office Cost and Profit but in numerous corridor of the world particularly in Nigeria, there are other costs to be allowed for.

These costs according to Mbachu and Nkado( 2004) have egregious negative counteraccusations for the crucial stakeholders in particular, and the assiduity in general. To the customer, high cost implies added costs over and above those originally agreed upon at the onset, performing in lower returns on investment. To the end stoner, the added costs are passed on as advanced reimbursement/ parcel costs or prices. To the advisers , it means incapability to deliver value- for- plutocrat and could blemish their character and affect in loss of confidence reposed in them by guests. To the contractor, it implies loss of profit through penalties fornon-completion, and negative word of mouth that could peril his/ her chances of winning farther jobs, if at fault.

The proposed work will probe and report the other costs to be allowed for, which are the introductory factors affecting construction cost and property development in Nigeria and also proffer results to how construction cost can be minimized.

Statement Of The Problem

The demand for further construction of all types, coupled with a tight financial force has handed the construction assiduity with a big challenge to cut costs. The problem of high contract costs of all aspects of construction is getting egregious. Accordingly, substantial increases are being observed in systems.

This substantial increase has brought about loss of customer confidence in advisers , added investment pitfalls, incapability to deliver value to guests, and disinvestment in the construction assiduity.

Aim And Objects Of The Study

The end of the study is to find out the effect of construction cost and property development in Nigeria and proffer results to how construction cost can be minimized.

The objects of the study are as follows

1. To identify the main effect of construction cost in Nigeria.

2. To determine the inflexibility rank of the factors amongst guests, advisers and contractors.

3. To determine the agreement ranking factors between guests, advisers and contractors.

4. To proffer results on how to minimize construction cost in Nigeria.

5. To punctuate the process of property development in Nigeria.

Exploration Question

In the course of this study the experimenter designed some exploration question which will help get data for a better understanding of this design exploration wok, which are

1. Do contractors and guests generally agree on the inflexibility rank of the effect of construction cost in Nigeria?

2. Do you have a land property within the state?

3. What are the process espoused by you during your design development?

4. Do the cost of construction and property development stop most Nigerian from embarking on design?

5. What’s the average cost for the development and construction of your property possessed?