· Ashee Jay Ventures · Construction · 4 min read
What to Look for When Hiring a Construction Company in Nigeria
Choosing the wrong contractor can cost you far more than the original quote. Here are the questions to ask and red flags to watch for before signing any building contract.
Building or renovating a property is one of the largest financial commitments most Nigerians will ever make. Yet the construction sector remains largely unregulated at the informal level, meaning unqualified contractors operate alongside professional firms — and telling them apart isn’t always easy.
Here is what a careful client should look for before placing any contract.
1. Verify Registration and Professional Affiliations
A legitimate construction firm operating in Nigeria should be:
- Registered with the Corporate Affairs Commission (CAC) — ask for the RC number and verify on the CAC portal
- Affiliated with COREN (Council for the Regulation of Engineering in Nigeria) if engineering works are involved
- Affiliated with CORBON (Council of Registered Builders of Nigeria) for building construction
These registrations are not guarantees of quality, but they do indicate a level of formal accountability. Contractors who cannot produce these are operating informally and have less recourse against them if things go wrong.
2. Ask for a Detailed Bill of Quantities
Before any work begins, insist on a Bill of Quantities (BoQ) — a line-by-line breakdown of every material and its quantity, every task and its labour cost. This document:
- Makes the scope of work unambiguous
- Gives you a basis for comparing quotes fairly
- Protects you against variation claims (“that wasn’t in the scope”)
A contractor unwilling to produce a BoQ is a red flag. They may be planning to cut corners on materials without your knowledge.
3. Check Their Portfolio and References
Request photos of completed projects and contact information for at least two past clients. A reputable contractor will be proud to connect you with satisfied customers. If they hesitate or only offer photos without references, dig deeper.
When you speak to past clients, ask:
- Was the project completed on time?
- Were there unexpected cost increases? How were they handled?
- What was the quality of finishing like?
- Would you hire them again?
4. Understand the Payment Structure
Avoid contractors who request full payment upfront. Standard practice in Nigeria is:
- Mobilisation fee: 20–30% to begin work and procure initial materials
- Progress payments: tied to measurable milestones (foundation complete, roofing complete, etc.)
- Retention: 5–10% held back until the defects liability period ends
A contractor insisting on 70%+ upfront is either cash-flow troubled or planning to under-resource your project once paid.
5. Clarify the Defects Liability Period
A professional construction contract includes a defects liability period — typically 6–12 months after handover — during which the contractor is responsible for fixing any defects that emerge at no additional cost to you. Make sure this is written into your contract.
6. Don’t Award on Price Alone
The cheapest quote almost always cuts something — materials grade, labour quality, or margin for adequate supervision. The goal is best value, which means the most quality per naira, not the lowest headline number.
When comparing quotes:
- Check whether they’re quoting equivalent materials (grade of cement blocks, roof sheet gauge, etc.)
- Check whether supervision, final cleaning, and waste removal are included
- Ask what happens if material prices rise mid-project
7. Insist on a Written Contract
Every engagement, no matter how straightforward, should be governed by a written contract that specifies:
- Scope of work (referenced to the BoQ)
- Timeline with milestones
- Payment schedule
- Variation procedure (for changes mid-project)
- Defects liability period
- Dispute resolution process
Verbal agreements leave you with no recourse when things go wrong — and in construction, disputes are common.
What We Do Differently
At Ashee Jay Ventures, we produce full Bills of Quantities for every project, maintain a portfolio of completed works available for inspection, and include a 12-month defects liability clause as standard. We are a CAC-registered company with a team of experienced site engineers and project supervisors.
We believe trust is built through transparency — and that starts with the very first conversation.
Planning a build or renovation in Kaduna or surrounding areas? Reach out to our team for an initial consultation and quotation. We’ll walk you through the process honestly from day one.
