₦airaland Forum

Many people believe the biggest threat to a building project is lack of money.
After years of observing construction projects, I have come to a different conclusion.
The biggest threat is starting construction without proper cost planning.

Recently, I reviewed several building projects at different stages of construction (which I will avoid naming for reasons of confidentiality). Whether it was a residential duplex, church building, school project, or commercial structure, one pattern kept appearing:

The owner had a budget.
Construction started.
Material prices changed.
Variations appeared.
Cash flow became unstable.
The project slowed down or stopped.

In some cases, millions of naira had already been spent before the owner realized the original budget was unrealistic.

One project spent over 30% more than expected because key cost items were not properly quantified before construction commenced.
Another project had enough money to reach roofing stage but not enough to complete finishes because there was no comprehensive cost plan from the beginning.

The truth is that many Nigerians spend months designing buildings but spend very little time understanding what those buildings will actually cost.
A building should not only be structurally sound; it should also be financially sustainable from foundation to completion.

Whether you are planning:
A residential house
A church project
A school development
An estate project
A commercial building
Proper cost planning can save significant amounts of money and reduce project delays.

I am interested in hearing from property owners, contractors, builders, architects, and developers:
What was the biggest financial surprise you encountered during a construction project?
Let's discuss.

About the author:
I am a Quantity Surveyor involved in construction cost management, project estimation, Bills of Quantities preparation, procurement planning, and project financial control. I am open to professional engagements, project collaborations, consultancy assignments, and construction cost advisory services nationwide.

Pip through your window, you will understand we've better things to talk about

LexFlex10:
Pip through your window, you will understand we've better things to talk about

It appears that way, but you see... We are here already and the more we make the best of our presence here the better. We get nowhere by being cry-babies.

winqs:
It appears that way, but you see... We are here already and the more we make the best of our presence here the better. We get nowhere by being cry-babies.

It seems the situation hasn't reached your area

There are two types of people that build houses. Those that believe that they have sitting the entire sum to build the house and those that believe that have enough to start and their job/business/loans will raise the remainder of the money.

70-80% of house builders fall in the latter category. Thie reality is that if you are waiting for the entire money needed to build before you start,you will probably never start due to unforeseen circumstances and the constant changing of prices. This fact alone is cold truth of every house building project. Its a gamble. Its a risk. You are betting that you will be alive and have enough money to finish.

Like all gambles some pay off and some don't. Its also an unavoidable gamble. Whether you believe it or not if you are building you are GAMBLING and taking a RISK.

Its doesn't matter how well planned you think you. This is because there are no 100% fool proof cost forecasts. You will either go over or go under your projected costs. The best plans are those that have contingency costs factored in. You think it will costs N40 Million but be ready to spend N50 Million. If you can not stomach this reality then thats where problems start.

The reality of building in Nigeria are hampered by these financial problems. Material theft on site. Material market price increase. Fraudulent quotes.Inaccurate quotes. High bank interest rates. Short term bank loans. Defective materials. Building errors. Unreliable artisans.

Building projects are not for the weak and is highly capital intensive. If you are not careful it can lead to permanent financial ruin. Thats why the majority of people in Nigeria don't build and instead rent. If you however can surmount this challenge you will have created a life long asset for you and your future genrations!

Krucifax:
There are two types of people that build houses. Those that believe that they have sitting the entire sum to build the house and those that believe that have enough to start and their job/business/loans will raise the remainder of the money.

70-80% of house builders fall in the latter category. Thie reality is that if you are waiting for the entire money needed to build before you start,you will probably never start due to unforeseen circumstances and the constant changing of prices. This fact alone is cold truth of every house building project. Its a gamble. Its a risk. You are betting that you will be alive and have enough money to finish.

Like all gambles some pay off and some don't. Its also an unavoidable gamble. Whether you believe it or not if you are building you are GAMBLING and taking a RISK.

Its doesn't matter how well planned you think you. This is because there are no 100% fool proof cost forecasts. You will either go over or go under your projected costs. The best plans are those that have contingency costs factored in. You think it will costs N40 Million but be ready to spend N50 Million. If you can not stomach this reality then thats where problems start.

The reality of building in Nigeria are hampered by these financial problems. Material theft on site. Material market price increase. Fraudulent quotes.Inaccurate quotes. High bank interest rates. Short term bank loans. Defective materials. Building errors. Unreliable artisans.

Building projects are not for the weak and is highly capital intensive. If you are not careful it can lead to permanent financial ruin. Thats why the majority of people in Nigeria don't build and instead rent. If you however can surmount this challenge you will have created a life long asset for you and your future genrations!

While I appreciate your intelligent write-up about no absolute or exact, proper planning with a genuine cost expert actually puts you in a safer situation.

LexFlex10:
It seems the situation hasn't reached your area

There's a very high possibility I have travelled this country more extensively than you have.

winqs:
There's a very high possibility I have travelled this country more extensively than you have.

As a conductor or what

LexFlex10:
As a conductor or what

And so you unveil the shadow you are...