AN EVALUATION OF THE RISING COST OF BUILDING MATERIALS AND IT’S EFFECT ON HOUSING DELIVERY IN NASARAWA

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AN EVALUATION OF THE RISING COST OF BUILDING MATERIALS AND IT’S EFFECT ON HOUSING DELIVERY IN NASARAWA

(A STUDY OF TAMMAH).

ABSTRACT

High prices of building materials had form a crucial constraint to improving construction procurement in Nigeria. The influence of the macro-economic indicators on this problem cannot be ruled out. This study therefore investigates the impact of macro-economic indicators on the prices of building materials with a view to enhancing construction project procurement and delivery. Questionnaires were administered to respondents which included the Architects, Quantity Surveyors, Builders, Engineers, Bankers/Economist. The study established that inflation, exchange rate, import, interest rate, money supply and demand for money have a significant effect on the prices of building materials. Demand for import, inflation rate, government economic policies, level of foreign currency demand and level of foreign currency supplied were identified as causing a change in exchange rate while factors affecting inflation rate were variation in the value of the naira, demand for goods, changes in real incomes lending interest and import tariffs. On the other hand, factors causing a change in interest rate were government economic policies, demand for money, inflation rate, deregulation of interest rate. It was found that a high relationship existed between exchange rate, inflation rate and interest rate and the prices of building materials. The study recommended reduction in import duties, bringing exchange rate to the barest minimum, reduction in interest rate on banks loans while government should maintain stable inflationary trend.

CHAPTER ONE

INTRODUCTION

BACKGROUND OF THE STUDY

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 use (Akanni, 2006; Udosen & Akanni, 2010). Building materials contribute immensely to the quality and cost of housing, from what is used in the foundation to the materials for roofing and finishes, while the building materials 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 building materials poses a significant threat to both the construction industry and people aspiring to own houses (Anosike, 2009; Mekson, 2008; Mohammed, 2008; Njoku, 2007); for example, a bag of cement, which is valued at Ν1,350.00 in 2006, goes as high as Ν1,850.00 in 2009 (Anosike, 2009) depicting about 37% increment; the bag goes as high as Ν2,000.00 in 2012 during peak season (field survey 2012). Supporting this view, Jagboro and Owoeye (2004) earlier established that increase in the prices of building materials 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 materials, which have been on the increase. Besides timely completion, high prices of building materials form a crucial constraint to improving housing conditions in the low-income earning countries, Nigeria inclusive (United Nations Centre for Human Settlement [UNCHS], 1993).

In spite of the past studies on the cost of building materials in Nigeria, little is publicized about the implications of the rise in cost on development of commercial properties, most literature (Jagboro & Owoeye, 2004; Mekson, 2008; Njoku, 2007; Oladipo & Oni, 2012) has concentrated on identifying the causes with little emphasis on the implications; hence, the research seeks to provide information on implication of the rising cost of building materials on commercial property development.

A common finding of studies is that cost is affected by a large number of factors essentially demand and supply. However, Ogunsemi (2002) submits that in Nigerian Construction Industry in the recent past, many projects have been subjected to cost and time overruns. Considering the relationship between construction industry and the national economy, it becomes necessary that the cost of construction be within the reach of the average citizen. However, some economic indicators are very significant to the overall cost of construction. Some of these indicators include; exchange rate of local currency to other currencies in the world, inflation rate and interest rate charge on loan among others.

Ogunsemi (2010) opined that building materials form the main factors that restricts the supply of housing and ascertained that they account for between 50-60 percent of the cost of buildings. Thus, Adedeji (2002) rightly observed that one main barrier to the realization of effective housing in Nigeria as revealed in successive government efforts has been the cost of housing in the country. He argued that in the early periods, shelter in Nigeria was easily affordable as building materials were sourced from the immediate environment at affordable costs. Technology also was readily available with commensurate simple techniques. But contact with the outside world through interregional and international training of professionals in foreign countries as occasioned by colonization, brought changes to tastes and hence outlook to house forms. These changes rendered the undeveloped local building materials inadequate while there was an increased demand for exotic ones.

 Accordingly, Arayela (2002) posited that the modern building industry lays much emphasis on sophisticated building materials and techniques that are expensive and energy consuming. Though, housing delivery efforts have evidently been inhibited by prohibitive costs of building materials, this problem cannot be reasonably and reliably overcome by merely resorting to the use of locally available materials without due considerations to the applicable initiative, the cost of processing and sustainability of the local materials. One of the most important components of a sustainable building is the material efficiency. Correct selection of building materials can be performed by taking into account their complete life span and by choosing products with the minimal environmental impacts. For instance, González and Navarro (2006) estimated that the selection of building materials with low environmental impacts can reduce carbon dioxide (CO2) emissions by up to 30%. The use of renewable and recycled sources is widely encouraged as the life-cycle of a building and its elements can be closed (Chwieduk, 2003).

The major factor that greatly affect the selection of building materials are their costs and social requirements such as thermal comfort, good mechanical properties (strength and durability), aesthetic characteristics and an ability to construct quickly. Ideally, the combination of all environmental, economic and social factors can give a clear description of a material, and thus helps in a decision making process regarding the cost of the materials suitable for buildings (Abeysundara, et, al.,2009) .  Nigerians would continue to pay more for accommodation in major cities until the cost of building materials is subsidized through probably through tax reduction. The instability in the price of building materials was posited as a direct result of high taxes which in turn impacts on the cost of accommodation in major cities across the country. According to Arayela (2002), many completed housing estates had remained unoccupied because of the high rental and sale prices attached to them as against the meager income of the average Nigerian workers. He also added that if government can revitalise our industrial base, the cost of building materials will come down and many more people would be able to build houses. He therefore  urged the Federal Government to provide tax relief for local manufacturers and importers of building materials in order to reduce the high cost of accommodation in major cities.

Consequently, the general consensus is that one key reason for high cost of construction in Nigeria is high cost of building materials which are largely imported materials. This is so because several factors affect imported materials’ prices such as foreign exchange, freight, inflation, import duties and so on. Similarly, Oruwari, Jev  and Owei (2002) also concur that the rising cost of building due to materials has made it impossible for people to own affordable houses in Nigeria. It can therefore be inferred that local building materials are not well utilized in Nigeria. This project therefore, is an attempt to evaluate the rising cost of building materials and it’s effect on housing delivery in Nasarawa, with a particular interest in Tammah.

1.2       STATEMENT OF RESEARCH PROBLEM

The building construction industry has special features that are not usually encountered in other industries. When conditions in the field tend out to be more complex, especially the rising cost of building materials. Rising cost of building materials, delays and other problems tend to be proportionally monumental (Gould, et al, 2002). Cost is one of the primary measures of a project’s success. This is true for housing development and delivery in developing countries like Nigeria because, housing developments are executed with very scarce financial resources which are sourced from personally savings, loan from banks, mortgage financing etc. A building project is considered successful if it is completed within the stated budget, on schedule, conform to user expectations, meet specifications, and achieve quality of workmanship and with minimized construction aggravation therefore this research becomes necessary to evaluate the rising cost of building materials and it’s effect on housing delivery in Nasarawa – a study of Tammah.

1.3       AIM AND OBJECTIVES

Aim

The aim of this study is to evaluate the rising cost of building materials and its effect on housing delivery in Nasarawa, a case study of Tammah.

Objectives

To achieve the aim stated above, the following objectives were pursed:

1.  To identify the building materials in Nasarawa
2. To identify over the years, the trend of the cost of building materials.
3. To Identify the types of housing development within the study area (Tammah)
4. To access the effect of rising cost of building material on housing delivery.
5. To identify the problem associated with the rising cost of building materials on housing development in Tammah.

1.4       RESEARCH QUESTION

1. What are the types of building materials used for housing development in Nasarawa?
2. What are the trends of the cost of building materials?
3. What are the types of housing development property within Tammah?
4. Does rising cost of building material have any effect on housing delivery?
5. What are the problems associated with rising cost of building material on housing development?

1.5       SIGNIFICANCE OF THE STUDY

This research work is significance to the government for decision making, student, practicing estate surveyors and valuers, investors, researcher.

            In addition, the study will enable property developer know how to go about their investment in real estate despite the challenges of rising cost of building materials and construction in general

Lastly, this research work will help to determine the factor influencing, commercial housing delivery which is an essential pre-requisite to successful development as well as stimulating interest in the students to coregent further research on the topic.

1.6       SCOPE OF THE STUDY

The study addresses the evaluate the rising cost of building materials and it’s effect on housing delivery in Nasarawa. The scope of this research is restricted to Tammah a suburb in Nasarawa town, this is to enable the research have an indepth evaluation.

Some obstacles encountered in the course of carrying out this research were as follow:

• Time factor was the major constrain couple with multiplicity of other classroom work and lecture requirement were a set back to the research.
• Un-cooperating attitude of some respondents as they were busy to attend to the researcher.
• In accessibility of adequate information from research respondent due to illiteracy among them, some find it difficult to understand some question they were asked.
• Finance was also a limiting factor in the course of the research.

1.7       OPERATIONAL DEFINITION OF TERMS

Building: according to merriam-webster dictionary is define as a usually roofed and walled structure built for permanent use (as for a dwelling).

Cost: Oxford advance learner’s dictionary (6^th edition) defines it as the amount of money that need in order to buy, make or do something.

Building Materials: This is any material which is used for construction purpose e.g. timber, rods, cement etc.

Property: According toCollins dictionary a property is a building and the land belonging to it.

Development: This can be describes as a progressive transformation of the society or a deliberate action to bring about change in a large scale.

Property Development: (The Collins English Dictionary, 2014) This can be define as an improvements in land.

1.9       HISTORICAL BACKGROUND OF THE STUDY

Nasarawa local government area of Nasarawa state was established in 1976 during the military regime under the leadership of General Muhammed administration.

The local government are covers an estimated area of 154 square kilometers.

It has thirteen (13) wards and consists of six departments which is responsible for carrying out the activities of personnel, social, primary health care, agriculture and natural resource. The state derives it name from the local government of Nasarawa. The local government head quarter is between latitude 8.8 degrees east of Karu. They also share boundary with Toto local government area, Federal Capital Territory and Benue.

The local government has a population of 60,210 by the 2006 census through other contest in the law court. It has multiethnic like Afo, Agatu, Gwan-dara etc.

TOPOGRAPHY

From an elevation of about 1,500 to 1,000 meters, the Nasarawa descends in a series of step to the wide Benue through the northern part of the low lands forms a continuous plain about 50 kilometers wide which gradually slopes from the foot of the Nasarawa towards river Benue.

The western part of the northern low land is an area of transaction, only part of it can be regarded as belonging to the Benue plains.

CLIMATE

Nasarawa has two seasons, which includes:

1. A dry season without or with little rain from November to March.
   1. Wet season from April to October

The main annual rainfall is 1-300km

THE PEOPLE AND THEIR OCCUPATION

The major ethnics groups are Hausa, Afo, Gwari, and Gwandara. The earliest inhabitants were predominantly farmers and some of them are fishermen they use river for their routine fishing.

Besides, they were also engaged in rearing of cattle, black dying and weaving. Meanwhile, trading is one of their major occupation as a result of the establishment of the Federal Polytechnic.

BUILDING MATERIALS

BUILDING MATERIALS

INTRODUCTION

Building materials is any materials which is used for construction purposes, or building materials are those items which are used for the building of houses and other structure.

There are many varieties of products utilized for building residences. In some countries building materials are used according to the weather conditions of that place.

Basically the building materials are identified into two (2) types that is the synthetic and natural products.

The synthetic building materials are those which are manufactured or man-made products and are in use, some more and some less synthetic.

The manufacture of building materials is an established industry in many countries and use of these material is typically segmented into specific specially trades, such as carpentry, insulation, plumbing and roofing work.

They provide the make-up of habitats and structures including homes. While the natural product are those which have actually been stemmed naturally. Many naturally occurring substance, such as clay, rock, sand, and wood, even twigs and leaves have been used for construction of building.

 

–         Mud / Clay is one of the most commonly used building materials which consist of clay in addition to mud. Both products are utilized to construct homes or houses.

Clay based building usually come in two distinct types, one being when the wall are made directly with the mud mixture and the other being walls built by stacking air-dried building block called mud bricks. Other uses of clay in building is combined with straws to create light clay, wattle and daub, also mud plaster.

Clay usually means using the cob style, while low clay soil is usually associated with sod building. The other main ingredients include more or less sand or gravel and straw or gases.

–Rock:  has been considered as the oldest building materials made use of for building houses. It is the greatest and most long lasting material utilized for construction. Though it was commonly made use of in old time. It is now not in used but used as facing materials.

Rock is the longest lasting building material available and is used usually readily available. Rock is very dense material so it gives a lot of protection. Its main draw back as a material is its weight and that it is hard to keep warm with using large amounts of heating resources.

Stone or rock structures have existed for as long as history can recall, there are many types of rock throughout the world all with differing attribute that make them better or worse for particular uses. Rock is a very dense material so it gives a lot of protection too, and awkwardness. Its energy density is also considered a big drawback, as stone is hard to keep warm without using large amounts of heating resources.

Dry – stone walls have been built for as long as humans have put one stone on top of another. Eventually different forms of mortar were used to hold stones together, cement being the most common place now.

Stone buildings can be seen in most major cities, some civilization built entirely with stone such as the Egyptian and Artes pyramids and the structure of the Inea  civilization

Sand: Sand is used with cement and sometimes, lime to make mortar for mansonry work and plaster sand is also used as a part of the concrete mix. An important low-cost building material in the countries with high sand content soils is the sandcrete block, which is whether weaker but cheaper than fired clay brick.

 

Wood and Timber

Wood has been used as a building material for thousands of years in its natural state. Today, engineered wood is becoming very common in industrialized countries.

Wood is a product of trees, and sometimes other fibrous plants, used for construction purposes when cut or pressed into lumber and timber such as board, planks and similar materials. It is generic building material and it is used in building just about any types of structure in most climates. Wood can be very flexible under loads, keeping strength, while bending, and is incredibly strong when compressed vertically. There are many differing qualities to the different types of wood, even among same trees species. This means specific species are better suited for various uses than others. And growing condition are important for deciding quality.

Timber is the term used for construction purposes except the term is used in the united states. Raw wood becomes timber when the wood has been converted (split, hewn, sawn) in the forms of minimally processed logs stacked on top of each other, timber frames construction, and light-frame construction. The main problem with timber structure are fire risk and moisture-related problem.

 

In modern times softwood is used as a lower-value bulk materials, whereas hardwood is usually used for finishings and furniture. Historically timber frame structure were built with oak in western Europe, recently Douglas firm has become the most popular wood for most types of structural building.

Wood; unlike steel, and concrete, whose chief degradation mechanisms are chemical reactions the principal degradation mechanism for wood are biological attacks, namely decay and termites.

Decay fungi, feed on wood and require oxygen, mild temperatures and moisture to thrive, most damaging fungi affect wood only when the moisture constant is above the fibre saturation point. So preventing decay is usually a matter of keeping moisture away. Several species of termite can damage wood, but most damage is due to subterranean termites. The usual method for preventing subterranean termite infestation is to prevent access, that is isolating wood from the ground surface and thereby denying the termite a bridge to the structure.

THATCH

Thatch is one of the oldest of building materials known, grass is a good insulator and easily harvested, many African tribes have lived in homes made completely of grasses and sand year-round. In Europe, thatch roofs on homes were once prevalent but the material fell out of favour as industrialization and improved transport increased the availability of other materials. Today, though the practice is undergoing a revived. In the Netherlands, for instance, many new building have thatched roofs with special ridge tiles on top.

 

Twigs and leaves

Are also one of the oldest of building materials. Leaves is a good conductor of fire resistance and can easily harvested.

Man-made product are:

Concrete: Concrete structures are also durable and strong. It is been made of gravel, sand, cement and a little water. Concrete is made use for construction of homes and work places.

Concrete is a composite building materials made from the combination of aggregate and a binder such as cement. The most common form of concrete is Portland cement, concrete, which consists of mineral aggregate (generally gravel) and sands, Portland cement and water.

After mixing, the cement hydrates and eventually hardens into a stone-like material. When used in the generic sense, this is the material referred to by the term concrete.

For a concrete construction of any sizes, as concrete has a rather low tensile strength, it is generally strengthen using steel rods or bars (known as rebars). This strengthened concrete is then referred to as reinforced concrete. In order to minimize any air bubbles, that would weaken the structure, a vibrator is used to eliminate any air that has been entrained when the liquid concrete mix is poured around the ironwork. Concrete has been the predominant building material in the modern age due to its longevity, formability, and ease of transport. Recent advancements such as insulating concrete forms, combine the concrete forming and other construction steps. (installation of insulators). All materials must be taken in required proportions as described in standards.

CEMENT COMPOSITES

Cement bonded composites are made of hydrated cement paste that binds wood, particles or fibers to make pre-cast building components. Various fibrous materials including paper fiber plants and carbon-fiber have been used as binders.

Wood and natural fibers are composed of various soluble organic compounds like carbonhydrates glycosides and phenolics. These compounds are known to ratered cement setting. Therefore, before using a wood in making cement bonded composites, its compatibility with cement is assessed.

Wood cement compatibility is the ratio of a parameter related to the property of a wood-cement composite to that of a neat cement paste. The compatibility is often expressed as a percentage value. The determine wood-cement compatibility method based on different properties are used, such as hydration characteristic, strength interfacial bond and morphology, various method are used by researchers such as measurement of hydration characteristic of a cement-aggregate mix. The comparison of the mechanical properties of cement-aggregate mixed, and the visual assessment of microstructural properties of the wood-cement mixes. It has been found that the hydration test by measuring the changes in hydration temperature with time is the most convenient method. Recently, Karade etal have reviewed these method of compatibility assessment and suggested a method based on the maturity concept. i.e. taking in consideration both time and temperature of cement hydration reactions.

FIRED BRICK AND CLAY BLOCKS

Bricks are made in a similar way to mud-bricks except without the fibrous binder such as strew and are fired (burned in a blick clamp or klin) after they have air dried to permanently harden them. Klin fired clay bricks are a ceramic material. Fired bricks can be solid or have hollow cavities to aid in drying and make them lighter and easier to transport. The individual bricks are placed upon each other in courses using mortar. Successive courses being used to build up wells arches, and other architectural element. Fired brick wells are usually substantially thinner than cab/adobe while keeping the same vertical strength. They require more energy to create but are easier to transport and store, are lighter than stone blocks. Romans extensively used fired brick of a shapes and types now called Roman bricks. Building with brick gained much popularity in the mid 18^th century and 19^th centuries. This was due to lower cost with increases in brick manufacturing and fire-safety in the over crowding cities.

The cinder block supplemented or replaced fired bricks in the late 20^th century often being used for the inner parts of masonry wells and by themselves structural clay tiles (cloy blocks) are clay or terracotta and typically are perforated with holes.

METAL

          Metal is used as structural framework for large building such as skyscrapers or as an external surface covering. There are many types of metal used for building. Metal figures quite prominently in prefabricated structure such as the Quonset hut, can be seen used in most cosmopolitan cities. It requires a great deal of human labour to produce metal especially in the large amounts needed for the building industries. Corrosion is metal prime enemy when it comes to longevity.

–         Steel is a metal alloy whose major component is iron, and is the usual choice for metal structural building materials. It is strong flexible, and if refined well or treated lasts a long time.

–         The lower density and better corrosion resistance of aluminum alloys and tin sometimes overcome their greater cost.

–         Copper is a valued building materials because of its advantageous properties. These include corrosion resistance, durability low thermal movement, light weight, radio frequency shielding, lightning, protection, sustainability, recyclability and a wide ranges of finishes copper is incorporated into roofing, flashing, gutters downspouts, domes, spires, vaults, well cladding, building expansion joints and indoor design element.

–         Other metals used include chrome, gold, silver, and titanium, titanium can be sued for structural purposes, but it is much more expansive than steel. Chrome gold and silver are used as decoration, because these materials are expensive and lack structural quantities such as tensile strength or hardness.

 

Plastics 

The term plastics covers a ranges of synthetic or semi-synthetic organic condensation or polymerization products that can be molded or extroded into objects, films or fibers. Their name is derived from the fact that in their semi-liquid state they are malleable, or have the property of plasticity. Plastics very immensely in heat tolerance, hardness, and resilience, combined with this adaptability the general uniformity of compensation and lightness of characteristics ensures their use in almost all industrial application today. High performance plastics, such as ETFE have become an ideal building material due to its high abrasion resistance and chemical inertness.

Notable building that feature it include the Bejing National Aquatic Center and the Eden project biomas.

Plastic is also commonly use for building materials such as plastic pipelines, tubes etc are also important for any home or office.

Glass

Glass making is considered an art form as well as an industrial process or material.

Clear windows have been used since the invention of glass to cover small opening in a building. Glass panel provided human with the ability to both let light into rooms while at the same time keeping inclement weather outside.

Glass is generally made from mixture of sand and silicates, in a very hot fire stove called a kiln and is very brittle. Additives are often included the mixture used to produces glass with shades of cokers or various characteristics (such as bullet proof glass or light emittance).

The use of glass in architectural buildings has become very popular in the modern culture, glass curtain wells can be sued to cover the entire facade of a building or it can be used to span over a wide roof structure in a space frame. These uses though require some sort of frame to hold section of glass together, as glass by itself is too brittle and would require an overly large kiln to be used to span such large areas by itself.

Glass bricks were invented in the early 20^th century.

GYPCRETE

Gypcrete is a mixture of gypsum plaster and fibre glass rovings. Although plaster and fibrous plaster have been used for many years, especially for ceiling, it was not until the early 1990s that serious studies of the strength and qualities of a walling system. Rapid wall, using a mixture of gypsum plaster and 300mm pluss fibre glass rovings, were investigated. It was discovered, through testing of the University of Adelaide, that these wall had significant, load bearing shear and lateral resistance together with earthquake – resistance, fire resistance and thermal properties.

With an abundance of gypsum (naturally occurring and by-product chemical FGD and phosphor gypsums) available world-wide, gypcrate – based building products, which are fully recycleable, offer significant environmental benefits.

FABRIC

The tent is the home of choice among nomadic groups all over the world. The well known types include the conical teepee and the circular yart. The tent has been revived as a major construction techniques with the development of tensile architecture and synthetic fabrics. Modern buildings can be made of flexible materials such as fabric membranes and supported by a system of steel cables, rigid or internal or by air pressure.

FOAM

Recently, synthetic polystyrene or polyarethane foam has been used in combination with structural materials, such as concrete. It is lightweight, easily shaped and excellent insulator. Foam is usually used as part of a structural insulated panel, where in the foam is sandwiched between wood or cement or insulating concrete forms.

ICE AND SNOW

Snow and occasionally ice were used by the Inuit people for igloos and snow is used to built a shelter called a quinzhere. Ice has also been used for ice hotels as a tourist attraction in northern climate. It is materials which is used by the Inuits.

 

BRUSH

Bruch structure are built entirely from plant parts and were used in primitive cultures such as Native Americans, pyging peoples in Africa. These are built mostly with branches twigs and leaves and bark, similar to a beaver’s ledge. There were variously named lean-tos and so forth.

An extension on the brush building ideas is the wattle and daub process in which clay soil or dung usually cow, are used to fill in and cover a woven brush structure. This gives the structure more thermal mass and strength. Wattle and daub is one of the oldest building techniques. Many older timber frame building  incorporate wattle and daub as non load bearing walls between the timber frames.

 

PAPERS AND MEMBRANES

Building papers and membranes are used for many reason in construction. One of the oldest building papers is red rosin paper which was known to be in used before 1850 and was used as an underlayment in exterior walls, roofs and floors and for protecting a jobsite during construction. Tar paper was invented late in the 19^th century and was used for similar purposes as rosin paper and far gravel roofs. Tar paper has largely fallen out of use supplanted by asphalt felt paper. Felt paper has been supplanted in some uses by systematic underlayment particularly in roofing by synthetic underlayment’s and siding by house wraps. There are  a wide variety of damp proofing and waterproofing membranes used for roofing basement waterproofing and geomembranes.

CERAMICS

Fire clay bricks have been used since the time of the Roman. Special tiles are used for roofing, siding, flooring, ceiling, pipes, flue liners and more.