Effect of Inflation on Project Cost Management in Construction Projects in Katsina State, North West Nigeria

📖 ABSTRACT/OVERVIEW

Sustained inflationary pressure in Nigeria's economy creates significant challenges for project cost management, particularly in construction where material costs are highly volatile. This study examines the effect of inflation on project cost management in construction projects in Katsina State, North West Nigeria. A descriptive survey will recruit 160 quantity surveyors, project managers, contractors, and procurement officers from 18 active public and private construction projects in Katsina, Funtua, and Daura. A structured questionnaire will assess cost estimation practices, contingency provision, contract price adjustment mechanisms, and management responses to cost inflation. Descriptive statistics and regression analysis will examine the impact of inflation rates on cost overrun frequency. The study will also assess the adequacy of existing escalation clauses in construction contracts in the region. Evidence from North West Nigeria suggests that construction cost overruns attributable to materials price inflation have worsened significantly since 2020, leading to contractor withdrawal and project abandonment. Findings will support quantity surveying practice reform and contract design improvements in Katsina State. Keywords: inflation, project cost management, construction, Katsina State, cost overrun

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