The Effects of Rising Cost of Building Material on Property Development
Chapter One
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the effect of building materials cost on housing development in Nigeria.
- To determine the factors responsible for high cost of building materials in Nigeria.
- To proffer solutions that will reduce the cost of building material to ensure adequate housing development in Nigeria.
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
This chapter gives an insight into various studies conducted by outstanding researchers, as well as explained terminologies with regards to effect of building cost on housing development in Nigeria.
The chapter also gives a resume of the history and present status of the problem delineated by a concise review of previous studies into closely related problems.
OVERVIEW OF CONSTRUCTION INDUSTRY OF NIGERIA
The construction industry in Nigeria is upcoming industry; the sector is regarded as a catalyst for growth while its performance serves as an indicator of the nation’s economy (Akanni, Oke, &Akpomiemie, 2014). It is supported by the association of construction players, which encompass developers, contractors, building material and equipment suppliers, manufacturers, financiers, regulators, and others in the value chain.
Building materials have been playing an important role in the construction industry—they are those materials put together in erecting or constructing structures, no field of engineering is conceivable without their use (Akanni, 2006; Udosen&Akanni, 2010). Building materials contribute immensely to the quality and cost of housing, from what is used in the foundation to the materials for roofing and finishes, while the building materials industry is an important contributor to the national economy of any nation as its output governs both the rate and the quality of construction work.
The cost of building materials poses a significant threat to both the construction industry and people aspiring to own houses (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007); for example, a bag of cement, which is valued at N1,350.00 in 2006, goes as high as N1,850.00 in 2009 (Anosike, 2009) depicting about 37% increment; the bag goes as high as N2,000.00 in 2012 during peak season (field survey 2012). Supporting this view, Jagboro and Owoeye (2004) earlier established that increase in the prices of building materials has multiplier effects on the industry while Idoro and Jolaiya (2010) affirmed that many projects were not completed on time due to the cost of materials, which have been on the increase. Besides timely completion, high prices of building materials form a crucial constraint to improving housing conditions in the low-income earning countries, Nigeria inclusive (United Nations Centre for Human Settlement [UNCHS], 1993).
In spite of the past studies on the cost of building materials in Nigeria, little is publicized about the implications of the rise in cost on the construction industry; most literature (Jagboro&Owoeye, 2004; Mekson, 2008; Njoku, 2007; Oladipo& Oni, 2012) has concentrated on identifying the causes with little emphasis on the implications; hence, the research seeks to provide information on implication of the rising cost of building materials by examining its influence on the construction industry and the nation’s economy.
FACTORS AFFECTING THE COST OF BUILDING MATERIALS
Building materials had been playing an important role in the construction industry. They were all naturally occurring in the ancient times, for example, stone, wood, straws, clay, lime, and brick (Akanni, 2006; Taylor, 2013). As the building techniques were improving, simple composite materials, combined by means of mixing and/or heat treatment, were developed. A typical example is concrete, which was developed by the Roman Empire (Everett &Barritt, 1994). Due to advances in science and technology at the beginning of the 20th century, materials with better performance and durability were introduced, for example, reinforced concrete, steel, plastics, and metal (Taylor, 2013).
CHAPTER THREE
RESEARCHMETHODOLOGY
INTRODUCTION
This chapter covers the description and discussion on the various techniques and procedures used in the study to collect and analyse the data as it is deemed appropriate.
It is organized under the following sub-headings:
- Research Design
- Area of the Study
- Population of the study
- Sample and sampling procedure
- Instrument of Data Collection
- Validation of the Instrument
- Reliability of the Instrument
- Method of Data Collection
- Method of Data Analysis
RESEARCH DESIGN
According to Asika (2009), research designs are often referred to as the structuring of investigation aimed at identifying variables and their relationships to one another. In this study, questionnaire serves as useful guide to the effort of generating data for this study. The questionnaire is a survey method and it is an exploratory research.
AREA OF THE STUDY
The study area for this research is Imo state in eastern Nigeria.
The choice of Imo state as the study area is because since the creation of the state in 1967 and in spite of the movement of Abia state in the state creation exercise of 1991, it naturally enjoys the benefits of being the fulcrum of the eastern part of the country. Imo state is built with many roads, estates , government establishments, all kinds of private developments, schools, hospitals, theaters, shopping malls, hotels to mention a few. All these infrastructures are the handiwork of construction. As such there cannot be a better place to obtain data for this study.
POPULATION OF THE STUDY
The population of study consists of public and private contractors involving civil engineers and quantity surveyors in Imo State. According to the Imo state ministry of Works, Corporate affairs Commision data, total registered contractors” amount to 352.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
This chapter is devoted to the presentation, analysis and interpretation of the data gathered in the course of this study. The data are based on the number of copies of the questionnaire completed and returned by the contractors. The data are presented in tables and the analysis is done using the chi-square test.
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of the Findings
The objectives of the study were to
To examine the effect of building materials cost on housing development in Nigeria.
To determine the factors responsible for high cost of building materials in Nigeria.
To proffer solutions that will reduce the cost of building material to ensure adequate housing development in Nigeria.
Findings from the study revealed the following:
The cost of building materials is on the high side.
The cost of building materials has everything to do housing development in Nigeria.
Housing development can influence the economy of Nigeria.
REFERENCES
- Austin, G.W. (2012) ‘Sustainability and income-producing property valuation: North Americanstatus and recommended procedures’, Journal of Sustainable Real Estate, Vol. 4, No. 1,pp.79–122.
- Brandon, S. and Lombardi, P. (2011) Evaluating Sustainable Development in the BuiltEnvironment, 2nd ed., Wiley-Blackwell Publications, UK.
- Bruntland, H. (1987) Our Common Future, Oxford University Press, New York.
- Dappa, O.R. (2010) The Impact of Cost of Building Materials on Property Development in PortHarcourt, Unpublished project, Department of Estate Management, Faculty of EnvironmentalSciences, Rivers State University of Science and Technology, Nigeria.
- Federal Ministry of Lands, Housing and Urban Development (FMLHUD) (2011) National Housingand Urban Development Policies Draft[online]http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd
- Frimpong, Y., Oluwoye, J. and Crawford, L. (2003) ‘Causes of delay and cost overruns inconstruction of groundwater projects in a developing countries: Ghana as a case study’,International Journal of Project Management, Vol. 21, No. 5, pp.321–326.
