Construction Costs Surge: NCIC Releases Latest Construction Cost Indices for 2023/2024
By Martha Chikoti, Contributor
The National Construction Industry Council (NCIC) in collaboration with the National Statistical Office (NSO) has released the latest Construction Cost Indices (CCI) for the financial year 2023/2024, revealing a significant increase in costs for the construction industry.
According to Chief Executive Officer for NCIC Engineer Gerald Khonje, the latest CCI shows a notable rise in costs, attributed to escalating material prices, labor costs, and interest rates.
He said the trend is a concern for the industry, and has urged stakeholders to take note and adjust their pricing accordingly.
Engineer Khonje emphasized that the CCI is a vital tool for stakeholders in the construction sector, providing a frame of reference for the cost of construction inputs.
“The indices are designed to assist stakeholders in adjusting prices in response to changes in material input costs, often resulting from currency realignments or devaluation ,” he explained.
He went on to say that stakeholders should be aware that the latest CCI is providing a comprehensive overview of the current construction cost landscape.
He said it will enable more accurate bids and predictions for future project costs, and encouraged stakeholders to utilize it by any means.
Engineer Khonje highlighted that the indices are informed by three key factors: labor costs, raw materials, and capital.
“This ensures that the CCI provides a holistic view of the construction industry’s cost structure, enabling stakeholders to make informed decisions and mitigate potential risks associated with cost escalations.”
He however stressed that the latest Construction Cost Indices provide a vital framework for understanding the current construction cost environment and urged stakeholders to utilize it to ensure accurate pricing and bidding, ultimately contributing to the successful delivery of infrastructure projects.
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