A FRAMEWORK FOR THE MANAGEMENT OF CONSTRUCTION COST ESCALATION IN ECONOMIC DOWNTURN IN NIGERIA
I.M. Oyemogum1 ; D.T. Dabwor2 & S. Aboh1
1Department of Building, University of Jos
2Department of Economics, University of Jos
Email: egooye@yahoo.co.uk
ABSTRACT
Cost management functions to monitor costs and initiate corrective action to keep the costs within budget. Construction cost management act as a discipline medium throughout the life cycle of an infrastructural development for effective and efficient procurement process. Construction cost escalation in economic downturn is influenced by lagging economic indicators of GDP, inflation, foreign exchange rate, interest rate,
unemployment rate, balance of trade, corporate profit and income and wages. Economic downturn in Nigeria and its impacts on construction cost escalation has become a major problem to both the public and private sector, contractors and clients, as this has resulted in the increase in number of abandoned or delayed projects, difficulty in achieving cost
estimates, increase in dispute arising from contractual arrangement and loss of jobs by construction workers which has made developers hesitant to enter into construction contracts in which they cannot manage the long-term impact their investment (Savills, 2016). The overall impact of construction project cost management is to achieve value for
money and provide an affordable infrastructural facility. This paper aims to propose a framework for the management of construction cost escalation in economic downturn. Key words: Economic downturn, construction cost escalation, construction cost overruns, construction cost, Management and construction cost management framework
