Finalyear

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The construction industry in Nigeria is upcoming industry, the sector is regarded as a catalyst for growth while its performance serves as indicator of the nations economy (Akanni et al., 2014). It is supported by the association of construction players, which encompasses developers, contractors, work and equipment suppliers, manufacturers, financiers, regulators and others in the value chain.
Building materials have been playing an important role in the construction industry. They are those materials put together in erecting or constructing structures, no field of engineering is conceivable without their uses (Akanni, 2006; Udisen and Akanni, 2010). Building materials contribute immensely to the quantity and cost of housing, from what it used in the foundation to the materials for roofing and finishes, while the construction work industry is an important contributor to the national economy of any nation as its output governs both the rate and the quality of construction work.
The cost of construction works poses a significant threat to both the construction industry and people aspiring to own houses (Anosike, 2009; McKson, 2008, Mohammed, 2008, Njoku, 2007). For example, a bag of cement is valued at N1350 in 2006 goes a high as N1850 in 2009 (Anosike, 2009) depicting about 37% increment; the bag of cement goes as high as N2,000 in 2012 during peak season (field survey, 2012). Supporting this view, Jagboro and Owoeye (2004) earlier established that increase in prices of building has multiplier effects on the industry while Idoro and Jolaiya (2010) affirmed that many projects were not completed on time due to the cost of works, which have been on the increase. Besides timely completion, high prices of construction work form a crucial constraint to improving housing condition in the low income earning countries, Nigeria in Ebonyi state inclusive united materials center for human settlement (UNCHS) 1993). The price of cement soars in south-east states of Abia, Anambra, Ebonyi Imo and Enugu. A market survey conducted by (NAN) at various wholesale and retail shops in the zone shows that the price of the product has increase almost by double when compared to the price in 2020.
A cement dealer at Kenyatta market in Enugu state capital, Ifeanyi Amadi said the increase in the product’s price started last year due to the Covid-19 pandemic and the increase in dollar exchange. He said a trailer load of Dangote cement with 600 bags initially sold at N1.5 million in 2020 but is now 2.3 million in the first quarter of 2021.
Another retailer at Uwani, Samuel Uwakwe, said he was surprised at the rate of increase in the prices of the product in the country. According to him, a bag of Dangote cement is sold at N3,700 and Kogi supper cement is at N3,600 and again cement is a major component in construction works, and accounts for between 40 and 45 percent to deliver a building project.
1.2 STATEMENT OF THE PROBLEM
Inspire of the past studies on the cost of construction work industry had made many contractors to have construction dispute between their clients. It also causes long duration of the project delivery, construction cost overrun and inefficient management in construction project in some cases problems that are caused by cost in construction management before the contract or project is executed. Without any modalities put in place to manage cost due to this inherent problem, there must be proper cost identification and management to prevent transfer, avoid or mitigate cost on construction project.
However, many contract suffer increase in cost of materials which in turn lead to the high cost of construction work in Nigeria have concentrated on establishing it’s impacts on the work, importantly leaving out the possible ways of carrying out effective projects delivery income increase cost of materials hence create a gap, which this research work intends to bridge. It also causes labour shortages the construction industry shed over 2 million jobs during the economic downturn and has struggled to get employment back to pre-recession numbers. Many workers either retired or were laid off and found employment in other industries. A recovery continued, it was clear that these workers, now in new careers, were not coming back.
The bottom line is the construction industry is not attracting enough talent to meet growing demand.
1.3 AIM AND OBJECTIVE
1.3.1 AIM
The aim of this research is to examine the effect of high cost of construction work in Ebonyi state.