To enhance sustainable construction management, the Nigerian Institute of Quantity Surveyors (NIQS) has urged stakeholders in the industry to incorporate renewable energy sources into buildings to lower operating costs and increase the environmental performance of the built environment.
According to the Chairman, Nigerian Institute of Quantity Surveyors (Lagos Chapter), Mr Olanrewaju Farotimi, incorporation of renewable energy sources in building would help to reduce construction management cost.
He stated this while briefing newsmen on: “Challenges to Sustainable Cost Management of Construction Projects in the Nigerian Dynamic Economy: Proffering Solutions,” during the forum / dinner organised to mark 2023 QS week in Lagos.
He explained that renewable energy would help to reduce carbon emissions and mitigate climate change, which also provides a reliable and affordable source of energy.
He suggested the need to create incentives for companies to adopt sustainable practices, such as tax breaks or subsidies for using renewable energy – energy sources that are naturally replenished and can be used repeatedly.
“Unlike fossil fuels such as coal and oil, which are finite and can cause environmental damage, renewable energy such as wind, solar, hydro and geothermal power are considered to be more sustainable options, “ he said.
Besides, Farotimi said it has become important to establish a clear regulatory framework that promotes transparency and accountability in the construction industry.
He added that there was a need to invest in the training and development of construction professionals, to ensure that they have the necessary technical expertise to effectively manage costs.
“Thirdly, it is important to develop innovative cost management strategies that can adapt to the dynamic economic conditions in Nigeria,” he said.
The NIQS Lagos Chapter boss identified inflation, currency fluctuation, lack of technical expertise and corruption as some the challenges to sustainable cost management of construction projects in the Nigerian economy.
According to him, these challenges have had a significant impact on construction’s cost management in the country.
He explained that construction costs could be highly sensitive to changes in the economy, noting that the current inflation has created uncertainty in the economy, making it difficult to accurately estimate construction costs.
Besides, he said that the general inflation has led to increased prices of materials and labour, while affecting the availability of materials, adding that suppliers are being reluctant to enter into long term contracts due to rising prices of goods .
When there is inflation, he said: “construction projects, as contractors and subcontractors may be forced to wait for prices to stabilize before committing to a project.
“Overall, inflation can lead to increased costs and uncertainty, which can make it difficult to manage construction projects effectively.”
On currency fluctuation: Farotimi noted that the value of Nigerian Naira has been highly volatile. This, he said could impact the costs of materials and labour.
“Currency fluctuation can have a significant impact on sustainable management of construction
costs, since it can become more expensive to purchase materials and equipment from abroad.
“This can lead to increased cost for construction projects, and can also create delays as contractors may
have to wait for prices to stabilize before committing to a project.
“Additionally, currency fluctuations can create uncertainty for contractors, making it difficult to
budget for construction projects and leading to increased risk of financial losses,” he said.
He bemoaned corruption in Nigeria, describing it as a major issue that can lead to mismanagement of construction projects and increased costs.
According to him, corruption could have a major negative impact on sustainable management of construction costs, since it can lead to misappropriation of funds and embezzlement of resources.
When funds are being diverted from the intended purposes, the NIQS boss said could result in delays and cost overruns for construction projects.
“Additionally, corruption can lead to lack of transparency in the procurement process, which can result in higher prices for materials and equipment.
“Overall, corruption can make it difficult to maintain a sustainable cost management system, since it can result in significant financial losses,” he said.
He also identified lack of technical expertise, pointing out that a shortage of skilled construction professionals could lead to delays and inefficiencies in the construction process. This also, he said could drive up costs.
“The lack of technical expertise among construction professionals can have a significant impact on sustainable construction management. Without the necessary knowledge and skills, construction managers may be unable to properly evaluate costs and benefits of different options, leading to sub optional decisions and increased costs,” he said, adding that without the proper skills, it would be difficult to properly implement sustainable practices such as waste management and energy efficiency measures, further increasing costs.
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