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 difficult for a simple Nigerian man to embark on construction work or property development project. Therefore, this research work aims at discovering the effects of the cost of construction among the Nigerian citizens. And seek solution on how this cost can be reduced by a high number percentage. This research work makes use of survey design method to carry out this research work, and a total number of seventy (70) respondents where used, and the data obtained was analyze using the SPSS package.

CHAPTER ONE

1.0 INTRODUCTION

Property development is a complex activity, with a series of stages involving many actors with differing objectives, all operating within the building cycle context and its interaction with business and credit cycles. Before developers commit to acquiring land and signing a building contract, they first evaluate the market to establish a project’s viability, and secure finance and planning consents (Wilkinson & Reed, 2008).

Construction cost estimate is the amount envisaged to finish a construction work. It is the probable amount that is computed to complete a construction work. It is a prediction of the amount of a project based on available data at the time of prediction. Cost estimate was defined by Business Dictionary (2013), as an “approximation of the probable cost of a product, program, or project, computed on the basis of available information”. So the more information is provided on a project, the more the estimate tends to accuracy. It is important in many ways.

The purpose of this document is to gain insight into the nature of the property development process and cost of construction to inform a later stage of this research that will pursue greater understanding of the factors that will encourage developers to embark on dense residential and commercial developments around transit hubs in Nigeria. In this research work a brief overview of the phases of property development is provided. The initial evaluation phase is then explored in greater depth and the cost of construction.

THE EFFECT OF COST OF CONSTRUCTION AND PROPERTY DEVELOPMENT