The National Construction Industry Council (NCIC) on Friday the 30th of August released its second set of construction cost indices. Speaking during the press briefing, Chief Executive Officer for NCIC, Eng. Gerald Khonje noted that construction cost indices are crucial for understanding fluctuations in construction costs and for making informed decisions within the industry.
Construction cost indices typically reflect changes in the prices of construction materials, labor costs, and other relevant factors affecting construction projects. By analyzing these indices, stakeholders can better manage budgets, forecast future expenses, and ensure that projects stay on track financially.
Eng. Khonje noted that the construction industry is facing significant cost pressures, which can impact project timelines, budgets and the quality of construction products. He indicated that the industry has been facing a number of challenges in terms of planning, budgeting, cost management as well as handling cost adjustments in construction projects. “These challenges have resulted in project delays as parties negotiate prices adjustment without a clear reference point making projects unattainable because of unrealistic prices resulting into abandoned projects as well as compromised quality”, said Khonje. He further indicated that it is against this background that NCIC, in collaboration with the National Statistical Office (NSO), have produced the Construction Cost Indices (CCI) for the financial year 2023/2024.
Khonje further indicated that the Council is committed to updating the indices quarterly to enable its stakeholders have relevant frame of reference in handling construction contracts and avoid disruptions of works due to contractual disagreements emanating from price fluctuations of cost of inputs.
The construction cost indices are available to stakeholders for free for the time being and can be downloaded from the Council’s website, www.ncic.mw. Should you have any specific details or questions about the indices or their implications, feel free to approach the Council and ask!
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