CONSTRUCTION COST INDICES AND SOURCES (CCIS): A SUMMARY OF SOME INTERNATIONAL SOURCES AS GUIDE IN NIGERIA

Usman Muhammad Danjuma, Alamu F. Bosede and Umesi O. Ruth

Department of Quantity Surveying

The Federal Polytechnic, Bida, Bida

ABSTRACT

Construction cost indices and sources (CCIS) are terms that have been echoed around the world by researchers and practitioners alike. Many governments all over the world have intervened in the construction industry with the aim of improving efficiency and saving public funds. The objective of the paper is to educate the government on construction cost indices and to improve a better understanding of the construction cost sources. This paper define cost index in simple terms; highlight the factors to be considered in constructing an index and uses of cost index/applications. It also articulate cost indices philosophies as input indices, output indices, hybrids, building cost and tender price indices. The development of various construction cost sources was investigated. Some sources provide adjustment factors for locations and others provide adjustments for time. Availability of CCIS may not be a panacea to all the problems in the construction industry but it will surely make it better. It was concluded that project promoters and estimators to carefully assess the situation at hand and prior to selection of an applicable cost index for a preliminary cost estimating exercise. A major recommendation from the research was that, a workable construction cost indices Data Bank that would be well articulated and managed be put in place in the country for accurate and reliable data storage and accessibility at all times.