How to manage costs in construction and renovation projects

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Deo Kalikumutima, the CEO of Kalikumutima and Company Advocates, highlights risks and opportunities in Uganda’s housing market, particularly in light of high interest rates and currency fluctuations.

With an election cycle approaching, he predicts decreased economic activity and a temporary dip in housing transactions because most of the Government’s funds will be geared toward the elections, which will reduce the liquidity in the economy.

However, once the political climate stabilises, he says there may be a resurgence in the market.

Kalikumutima also sees significant opportunities in areas tied to infrastructure development, such as the Hoima corridor, where the oil industry is expected to boost demand for housing.

He adds that climate-conscious building practices will become more prominent, with sustainable housing offering long-term savings despite higher initial costs. 

“The population keeps growing, and young people, especially in urban areas, are looking for affordable housing. This demographic shift will continue to shape what type of homes are in demand,” he says.

He notes that understanding the market and making informed decisions can save you a lot of money, for example, negotiating material prices and locking in rates with suppliers can help control costs.

“Another option is hedging, which protects you from market fluctuations. If you are building during uncertain times, you can lock in the price of materials or financing through hedging contracts. Monitoring economic indicators, such as the Bank of Uganda’s decisions, is crucial for predicting market trends," he continued.

Smart construction and renovation strategies

For cost-conscious homeowners, Patrick Sekigongo, an estates officer and civil engineering lecturer, emphasises meticulous planning.

“Proper planning allows you to focus on essentials and avoid costly mistakes,” he explains.

Sekigongo recommends using affordable materials like bamboo and Interlocking Stabilised Soil Blocks (ISSBs), which are both cost-effective and sustainable.

He also advises against adopting construction trends without professional consultation.

“Composite construction can work if executed correctly, but it is essential to consult with experts to avoid overspending,” he notes.

Prefabricated construction is another affordable option for those on a tight budget.

“You need to be sure of what you really need versus what you want,” he advises.

Focusing on essentials and eliminating unnecessary additions can significantly reduce overall expenses.

Avoiding costly mistakes

Sekigongo warns that many homeowners make the mistake of proceeding without professional consultation.

“Ignoring consultants can lead to overspending,” he says, as many fail to make informed decisions that save money in the long run.

He encourages homeowners to research thoroughly before starting a project.

Additionally, it is vital to minimise waste during construction. Reclaiming materials such as wood, glass, and tiles can be a huge cost saver.

Leftover materials from one part of the project, like roofing sheets, can be repurposed for smaller structures such as boysquarters or latrines.