THE EFFECTS OF RISING COST OF BUILDING MATERIAL ON PROPERTY DEVELOPMENT

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

The construction business in Nigeria is a developing industry; it is seen as a growth driver, and its performance serves as a barometer of the country’s economy (Akanni et al.,2014). The construction players’ association, which includes developers, contractors, building material and equipment suppliers, manufacturers, financiers, regulators, and others in the value chain, is behind it.

In the construction sector, building materials have played a significant role. They are the materials used to create or construct structures; no discipline of engineering would be complete without them (Akanni, 2006; Udisen and Akanni, 2010). From the foundation to the roofing and finishing materials, construction materials have a significant impact on the quality and expense of housing.  The cost of construction materials is a major concern for both the construction industry and consumers who want to own a home (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007). For example, a bag of cement valued at N1350 in 2006 rises to N1850 in 2009 (Anosike, 2009), indicating a 37 percent increase; during peak season, the bag rises to N2000 (Field survey 2012). Supporting this viewpoint, Jagboro and Owoeye (2004) previously demonstrated that increases in building material prices had multiplier effects on the industry, while Idoro and Jolaiya (2010) stated that many projects were not completed on time due to rising material costs. Aside from timely completion, exorbitant building material prices are a major stumbling block.

STATEMENT OF PROBLEM

In light of previous studies on the cost of building materials in Nigeria, little is known about the effects of rising costs on property development; most literature (Jagboro and Owoeye,2004; Meckson,2008; Njoku,2007; Oladipo and Oni,2012) has focused on identifying the causes with little emphasis on the consequences; thus, the research aims to provide information on the effects of rising building material costs on property development.

OBJECTIVES OF THE STUDY

The study’s main goal is to investigate the effects of growing building material costs on property development.

RESEARCH QUESTIONS

(1) What are the different types of building materials?

(2) What is the definition of property development?

(3) What variables can cause the cost of construction materials to rise?

SIGNIFICANCE OF THE STUDY

This research sheds light on the effects of growing building material costs on property development. The study also yields data that back up the findings of a lot of earlier research in this sector.

SCOPE OF THE STUDY

The study examines the impact of growing building material costs on property development.

REFERENCE

P.O. Akanni (2006). In the framework of the informal economy, small-scale building material production. Pp. 13-18 in The Professional Builders.

P.O., One, E.A., Akpomiemie, O.A., Akanni, P.O., One, E.A., Akpomiemie, O.A., Akpom (2014). Environmental factors have an impact on the performance of building projects in Delta Star, Nigeria. Journal of the HBRC. Online publication in advance.