THE IMPACT OF COST OF BUILDING MATERIALS ON CONSTRUCTION PROJECTS IN PORT HARCOURT

The construction industry is a key driver of socio-economic development, providing essential infrastructure and contributing significantly to growth, particularly in regions like Rivers State, Nigeria. However, one of the major challenges facing the industry is the rising cost of building materials, which can account for 50% to 70% of total construction expenses. These costs are influenced by factors such as inflation, foreign exchange volatility, transportation, and government policies, leading to unpredictable price fluctuations. Such volatility has profound implications for construction projects, often resulting in budget overruns, delays, and project abandonment, particularly in regions dependent on imported materials. The aim of this study is to examine the impact of the rising cost of building materials on construction projects in Rivers State. The study also seeks to achieve the following objectives: (1) analyze the factors influencing cost fluctuations, (2) assess the consequences of material cost variations on project execution, and (3) explore strategies to mitigate the adverse effects of these rising costs. Data were collected through a structured questionnaire distributed to 50 respondents, including quantity surveyors, contractors, architect, project managers and civil engineers directly impacted by construction projects. A combination of quantitative and qualitative analysis was conducted using descriptive statistics, frequency tables, and percentage. The findings revealed that foreign exchange rate volatility (73.2%), inflation (22.5%), and supply chain disruptions (18.9%) are the major factors driving cost fluctuations. These rising costs have led to significant delays in 68.3% of projects, and 73.2% of respondents reported that material cost increases compromised the quality of construction. To mitigate these challenges, strategies such as bulk purchasing (73.2%) and early procurement (61%) were identified as effective, though long-term solutions, including alternative materials and cost-effective construction methods, are needed. The study recommends that construction stakeholders adopt proactive procurement strategies, invest in research to explore alternative materials, and collaborate with the government to reduce importation taxes and support local production. Such measures will help stabilize building material costs and ensure the successful completion of projects in Rivers State.