APPRAISAL OF INFLATION RATE: A CASE STUDY OF SMALL-SCALE CONSTRUCTION FIRMS IN BENIN CITY

ABSTRACT 

This study is centered on assessing the impact of inflation on construction projects undertaken by small scale construction firms in Benin City, Edo State. It Presents the trend in the cost of cement which is a key material in construction projects. It examines the inflationary factors which influence construction cost estimate of small-scale construction firms, its impact an also strategies which are employed in curbing the effect of inflation on construction projects so as to ensure efficient project delivery. Data was collected from various small-scale construction firms around Oredo Local Government Area using Questionnaire and also sources such as the Nigerian Institute of Quantity Surveyors (NIQS) journals, Central Bank of Nigeria (CBN), and National Bureau of Statistics (NBS) documents. Mean item score was utilized in analyzing all objectives using Excel, while Analysis of Variance (ANOVA) was used alongside MIS to analyze the second and third objective. Findings showed that the cost of cement is experiencing a Secular Trend. Adoption of Technology was proven by the study to be the inflationary factor which tends to affect construction cost estimate the most. Amongst the various impact inflation has on construction projects, the study reveals Increased Project Dispute and Litigation to have the most impact on projects. This study further shows Value Engineering to be the most viable factor in mitigating the effect of inflation on construction projects