Zambia’s construction sector is expanding—but not without friction. As projections indicate a 3.7% annual growth rate between 2025 and 2028, scaling a construction company is no longer just about bricks and labor. It’s about mastering accurate project costing and maintaining strict compliance with regulatory frameworks.
This article explores why these two pillars are inseparable and how Zambian construction firms—especially those seeking growth—can strategically align both to scale sustainably.
Zambia’s Construction Industry: Growth vs. Growing Pains
Opportunities Driving the Sector
Zambia is witnessing a revival in construction, bolstered by ZMK12 billion allocated to roads and ZMK3 billion for housing and community infrastructure in the 2025 budget. Industrial parks, renewable energy projects, and improved transport networks are expanding the sector’s footprint.
Persistent Challenges Hindering Scalability
However, behind this momentum lies a fraught history of inefficiency. Delays, poor feasibility studies, cost overruns, and technical non-compliance continue to plague the industry. The construction sector remains oligopolistic—dominated by a few firms—making it harder for emerging companies to penetrate and thrive.
Project Costing: The Financial Backbone of Growth
Why Project Costing Matters
In Zambia, construction costs vary drastically depending on project type, site location, materials, labor, and economic volatility. Unfortunately, many SMEs fail to estimate these accurately—leading to cost overruns, payment delays, and eroded profit margins.
In Lusaka alone, over 30% of cost overruns stem from poor coordination, while 15% result from delayed progress payments and weak communication channels. Such inefficiencies don’t just sabotage individual projects—they cripple long-term scalability.
Smart Costing Strategies for Growth
To stay competitive and scale:
- Integrate costing with risk analysis to account for inflation, currency fluctuations, and regulatory changes.
- Use real-time cost monitoring tools for accuracy.
- Hire professionals trained in Zambian procurement laws and sector-specific pricing norms.
- Build in contingencies for unexpected delays or material shortages.
By embedding costing as a risk management tool, companies increase trust with clients and financial institutions alike.
Compliance: Not Just a Legal Tick Box—A Growth Enabler
Understanding Zambia’s Regulatory Framework
The National Council for Construction (NCC) Act of 2020 outlines strict compliance obligations. Companies must register with the NCC, submit detailed financials, prove technical capabilities, and stick to their assigned contractor grade.
Non-compliance is not optional—it leads to deregistration, fines, and potential jail time. It also blocks access to government tenders and large-scale commercial projects.
Compliance Enhances Market Access
Contractors with a strong compliance track record:
- Secure higher-grade classifications.
- Access larger and more lucrative tenders.
- Win client confidence.
- Reduce legal and reputational risks.
In an industry fraught with regulatory scrutiny, compliance becomes a competitive advantage—not a burden.
The Interplay: Why Costing and Compliance Must Be Integrated
Compliance Influences Costing—and Vice Versa
Accurate costing must reflect compliance expenses—certifications, inspections, tax obligations, and safety requirements. Likewise, proper budgeting ensures a company can afford to remain compliant.
When these two areas align:
- Projects are delivered on budget and within scope.
- Audit risks are minimized.
- Operational efficiency increases.
- Reputation and repeat business grow.
This synergy builds a platform for sustainable scaling
Strategies for Scaling Through Costing & Compliance
1. Adopt Integrated Project Management Systems
Invest in tools that combine budgeting, procurement, compliance tracking, and project delivery. Digital dashboards and cloud-based construction software offer real-time visibility into cost and compliance metrics.
2. Train and Certify Your Team
Upskill staff in modern construction management, local regulations, and international building standards. A compliant team is more productive and scalable.
3. Establish Internal Compliance Departments
Don’t rely solely on consultants. Develop in-house teams responsible for documentation, renewals, and ongoing compliance audits.
4. Build Strong Supplier and Subcontractor Networks
Your growth depends on partners who also comply. Vet subcontractors for compliance and cost transparency to avoid hidden liabilities.
5. Use Tech for Real-Time Monitoring
From drone surveying to digital compliance logs, technology enhances both costing and regulation tracking. This reduces errors and strengthens decision-making.
Conclusion: Building for the Long Haul
The future of construction in Zambia depends not just on concrete—but on compliance and cost control.
To scale successfully:
✅ View costing as more than accounting—it’s your risk shield.
✅ View compliance as more than red tape—it’s your growth passport.
✅ Integrate both into every project cycle—from tender to closeout.
Zambian construction companies that embrace this dual strategy will gain more than profits—they’ll gain stability, reputation, and opportunity in a competitive and evolving market.
