Study of the Impact of Inflation on Construction Project Costs in Kaduna State

Inflationary pressures have increasingly disrupted construction project cost management in Nigeria, eroding the reliability of pre-tender estimates and challenging the financial viability of ongoing contracts. This study examines the impact of inflation on construction project costs in Kaduna State, with reference to public institutional building projects carried out between 2020 and 2024. A descriptive survey design was adopted, and 88 respondents comprising quantity surveyors, contractors, and ministry officials participated. Structured questionnaires and a review of historical project cost data formed the basis of data collection. Regression analysis and descriptive statistics were employed in data analysis. Results indicate that cumulative inflation between 2020 and 2024 increased average construction costs by approximately 68%, with material costs for cement, steel, and electrical fittings recording the highest escalations. The study finds that most public contracts in Kaduna State do not incorporate adequate price escalation provisions, leaving contractors exposed to significant cost overruns. Recommendations include the mandatory use of fluctuation clauses in all public sector contracts exceeding six months, regular updating of cost indices by the Federation of Construction Industry, and the development of localised material price databases. Quantity surveyors are urged to apply contingency allowances that reflect prevailing inflationary trends when preparing preliminary estimates. This research provides timely evidence on inflationary risks in North West Nigeria's construction sector. Keywords: inflation, construction costs, Kaduna State, cost management, price escalation