Why Govt Projects Cost High – NSE


The Nigerian Society of Engineers (NSE) has identified inadequate time for planning, feasibility studies and designs, flawed tendering and award phases as factors responsible for high cost of government projects.

Others include reliance on foreign construction companies which have high overhead cost and the uncertainty of continuous availability of contracts.

The president of NSE, Mr. Olumuyiwa Alade Ajibola disclosed this in a letter to President Goodluck Jonathan following a committee set up by the Federal Executive council to study the high cost of  infrastructure projects in the county and to make recommendations to check the trend.

According to him, on the heels of the above are high cost of transportation and haulage, inconsistent government policies, delay in payment, multiple taxations, cost of construction materials high labour cost and corruption.

The society regretted that the current practice of procurement in which no time was giving for technical impute, feasibility studies and designs blaming it on the directives of the government to procure infrastructure using inadequate in-house technical capacity.

He explained that the best industry practice is to separate planning and design from construction and assign adequate time for the former before going to tender and commencing the construction.

Besides, the society said the provision of the public procurement Act 2007 are hardly adhered to by the operators who put douses in tender advertisements that negate the spirit of competition and transparency.