A Study of Construction Labour Market Dynamics and Their Cost Implications in the South South Geopolitical Zone

Construction labour market conditions significantly influence project cost estimation accuracy and out-turn performance in Nigeria, yet regional labour market dynamics are inadequately documented in quantity surveying research. This study examines construction labour market dynamics and their cost implications in the South South geopolitical zone, focusing on building and oil industry construction in Rivers, Delta, and Bayelsa States. A mixed-method design was adopted, combining labour market analysis using official data with a survey of 180 quantity surveyors, contractors, and labour suppliers. Panel data analysis and descriptive statistics were employed. Findings reveal that the South South zone experiences persistent skilled labour shortages, high crew mobility between oil industry and building construction, and significant wage premiums for certain trades relative to national norms. These dynamics result in systematic underpricing of labour in building project estimates prepared using national cost data. The study finds that labour cost variances averaging 18.3% between estimated and actual labour expenditure are directly linked to reliance on non-region-specific labour rates. Oil industry activity cycles significantly affect the availability of electrical and instrumentation trades for building projects. This study makes an original empirical contribution to regional labour market analysis in Nigerian construction, addressing a gap largely overlooked in the existing quantity surveying literature. Recommendations include development of a South South regional labour cost index published quarterly. Keywords: construction labour, labour market, cost implications, South South Nigeria, quantity surveying