MITIGATION MEASURES OF PRICE INCREASE OF BUILDING MATERIAL IN UYO METROPOLIS, NIGERIA

Abstract

The study investigates the major causes and potential effects of price increase of building construction materials and proposes mitigation measures to minimize the effects on project delivery in Uyo Metropolis. Data for the study were obtained through the use of 92 structured questionnaires, administered on a sample of project participants including project managers, quantity surveyors, procurement managers, and construction materials merchants. Data collected were analysed using mean item score and frequency. Findings show that inflation, manufacturing cost, exchange rate, lack of locally produced materials and transportation and distribution cost are the major factors responsible for the increase in the price of building materials. The study also reveals that increase in construction cost, contractual claims, reduction of profit margin, inability to deliver value for money, and lower demand for infrastructure are the factors with the highest effects of increase in the price of building materials. The findings further reveal that the 12 proposed mitigation measures could only be executed under three implementation strategies- pro-active, re-active, and organizational strategy with classification of seven, three, and two mitigation measures respectively. The study recommends that government should ensure effective implementation of its policies in order to cut down on inflation and its effects on the prices of general commodities including construction materials. In addition, project participants should adopt the mitigation measures proposed in this study during planning and implementation stages of projects.

 

Key Words: Building material, Construction industry, Mitigation measures, Price, Project participant

DOI: https://ejesm.org/doi/v12i1.10

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