ASSESSING THE IMPACT OF INFLATIONARY TRENDS ON BUILDING CONSTRUCTION COST AND PROJECT OUTCOME IN NIGERIA (A CASE STUDY OF KWARA STATE)

This research study assessed the inflationary trends on building construction cost and project outcome in Nigeria. The objectives of the study are to examine the factors responsible for cost inflation in building construction projects, examine the effects of material cost inflation on quality performance of building projects, determine the impact of cost inflation claims on performance of building projects and establish strategies for minimizing the adverse effects of materials cost inflation. Questionnaires were administered to 60 respondents and all questionnaires were retrieved. Descriptive survey is adopted for the research design. Relative important index is use to analyzed the data. The findings of the study shows that the major factors contribute to the cost inflation in building construction projects are exchange rates and supply and demand for building material. Also, findings show that the major effects of material cost inflation factors on quality performance of building projects are when material costs increase significantly, builders may opt to substitute lower-cost materials for higher-cost ones, material cost inflation can cause budget overruns and cash flow issues, potentially leading to delays in the project timeline, rising material costs may lead to cost-cutting measures in other areas to compensate, such as reduced spending on quality control measures and effects of material cost inflation factors on quality performance of building projects. More so, findings show that the major impact of cost inflation claims on performance of building projects are cost inflation can lead to unexpected increases in the prices of materials, labor, and other project related costs and cost inflation claims can lead to delays in project completion. Finally, findings show that the major strategy could be adopted to minimize the adverse effects of cost inflation on building projects are early cost estimation and budgeting, include escalation clauses in contracts that allow for adjustments to contract prices in response to specific inflation indices or cost changes and build strong relationships with suppliers and subcontractors to negotiate better pricing, secure long-term commitments, and collaborate on cost-saving opportunities.