Advertisements

Quantity Surveying Project Topics

An Assessment of Factors Affecting the Selection of Procurement Methods in Nigeria Construction Projects

An Assessment of Factors Affecting the Selection of Procurement Methods in Nigeria Construction Projects

Advertisements

An Assessment of Factors Affecting the Selection of Procurement Methods in Nigeria Construction Projects

Chapter One

Aimย andย Objectivesย ofย theย Study

Thisย researchย aimsย toย evaluateย theย factorย thatย influenceย theย choiceย ofย procurementย methodย with a view to helping clients and consultants to be more selective in their choice ofย procurementย system.ย Inย order to achieveย this aim,ย the objectives ofย the studyย are to:

  1. To identify the criteria for the selection of procurement methods
  2. To identify the significant factors that affects the selection of procurement methods in construction projects.
  3. To evaluate the effects of the factors on selection of procurement methods.

CHAPTER TWO

LITERATUREย REVIEW

ย ย Theย Nigeriaย Constructionย Industry

In Nigeria, like most developing countries, the construction industry plays a dominant roleย in the economic activities of the country. It is the sector of the economy, which transformsย variousย resourcesย intoย constructedย economicย andย socialย infrastructuresย andย facilities.ย According to Aniekwu and Osedeme (2002), in Nigeria, usually a substantial percentage ofย the economic resources laid out by the government in theย form of budget proposals, isย beingย devotedย toย theย provisionย ofย infrastructuralย facilitiesย andย basesย forย otherย developmentalย objectivesย andย theseย resourcesย willย haveย toย beย expendedย inย andย byย the constructionย industry.ย Thisย includesย theย constructionย ofย bothย buildingsย andย civilย engineering works with professionals and trained experts performing varied functions.ย Building works varies enormously in its scope and nature, from the erection of large multi-ย storey blocks to the execution of minor repair and maintenance works.ย The Nigerianย constructionย industryย evolvedย fromย theย publicย worksย departmentย (PWD)ย thatย metamorphosed into the Federal Ministry of Works and now Federal Ministry of Housing,ย Landย andย Urbanย Developmentย (Wahabย andย Lawal,ย 2011).ย Theย industryย isย responsibleย forย the employment of up to 2.5% of the employed persons or labour force in Nigeria (Nationalย Bureau of Statistics, 2010). In Nigeria, the contribution of the building and constructionย sector to the Gross Domestic Product is 3.01% during the first quarter of 2012. This was anย improvementย overย aย contributionย ofย 2.82%ย duringย theย firstย quarterย ofย 2011ย (Nationalย Bureau of Statistics, 2012). However, in many countries the construction industry oftenย accountย forย betweenย 7-10ย percentย ofย theย Grossย Domesticย Productย (Wahabย andย Lawal,ย 2011). Thus, even with this improvement, much still has to be done to improve on theย sectorโ€™s contribution to economic growth since it is an important part of the economicalย backbone of any country.

Constructionย Procurementย Methods

Theย termย ‘procurementย method’ย isย usedย toย describeย theย oftenย complexย networkย ofย relationships which are formed between clients, consultants and construction companies, toย enable a building project to be realized (Sarah, Stanley and Hugh, 2007). Traditionally,ย constructionย projectsย startsย withย theย clientโ€™sย briefย onย whichย designsย areย based.ย Theย Architectย andย engineersย prepareย designs,ย inย collaborationย withย quantityย surveyorย who advisesย onย theย costย implicationsย ofย designย variables.ย Tenderย processย afterwardsย producesย the contractor for the execution of the work. On the award, the successful contractorย executes the work as designed under the supervision of the consultants. Thus, the approachย separatesย theย design,ย tenderingย processย andย constructionย asย separateย tasks.ย Thisย separationย ofย activitiesย alsoย ledย toย sequencingย ofย activitiesย inย whichย designย isย completedย beforeย construction commences. However, the variants of procurement methods available todayย metamorphosized from the need to improve construction project delivery, that is, projectย completion within time and budget (Babatunde, Opawole, & Ujaddughe, 2010) as well asย dueย toย theย increasedย awarenessย ofย mostย clientsย especiallyย inย termsย ofย theย projectย performance criteria of time, cost and quality (Maizon et.al 2006). This has resulted in theย evolutionย ofย theย severalย variantsย ofย procurementย method,ย andย atย present,ย thereย areย moreย than a handful of procurement methods all with the major aim of meeting a quality productย delivery at economical cost and time. A number of such procurement methods that areย availableย in theย construction industryย areย beingย explainedย hereafter.

Traditional method

Theย traditionalย procurementย systemย remainsย byย farย theย mostย popularย method.ย Theย traditional structure for project procurement is a sequential method because the employerย takes his scheme to an advanced stage with his professional team before appointing aย contractor (SC Quantity Surveyors, 2012). The consultantโ€™s role is seen as an independentย one. The designer is employed to advise the client, design, ensure the work is kept withinย the cost limit and complies with the standards required. A quantity surveyor is engaged toย giveย guidanceย onย designย costsย andย budgets,ย prepareย billsย ofย quantities,ย checkย tenders, prepare interim valuations and advise on the value of variations. The contract sum is oftenย based on a Bill of Quantities provided by the Quantity Surveyor which quantifies, as far asย possible, every aspect of the works. Consultant structural and services engineers may beย employedย eitherย byย theย client,ย orย hisย advisers,ย toย designย theย specialistย partsย ofย theย project.

 

CHAPTER THREE

RESEARCHย METHODOLOGY

Advertisements

Researchย Population

The research population shall be government-funded organizations in Ondo State that haveย procurement/project/works department or section responsible for carrying out procurementย ofย constructionย worksย withinย theย organization.ย Theseย willย beย representedย byย in-houseย constructionย industry professionals workingย withย suchย organizations.

Sampleย Frame

The sample frame shall be limited to four set of public client organizations within Ondoย Stateย namely;ย Ministries,ย Localย Governments,ย Agenciesย andย Tertiaryย Institutions.

Sampleย Size

Since the number of the sample frame is too wide to be covered due to financial and timeย constraints there is a need to select a sample size, the sample size for this study is 20.

Dataย Collectionย Method/Techniques

Theย methodย ofย dataย collectionย willย beย theย useย ofย questionnaire.ย Theย dataย collectionย techniques will be the purposive sampling method. This is due to the nature of researchย problems and numerous population targets. The preliminary section of the questionnaireย dwellsย onย theย backgroundย informationย ofย theย respondentsย inย orderย toย checkย forย theย qualityย of data being analyzed while the other three sections addresses each of the three researchย objectivesย that forms the basis of this study.

CHAPTERย FOUR

DATAย PRESENTATIONย ANDย ANALYSIS

ย Dataย presentation

A total number of 60 questionnaires were distributed within Ondo State which is the scopeย of the research. 15 were distributed to Ministries, 12 to Local Governments, 22 to Agenciesย and 11 to Tertiary Institutions. After distribution, a total number of 46 questionnaires wereย receivedย and analyzed.

Summaryย ofย characteristicsย ofย respondents

Majority of the respondents are organizations that procure building projects mostly. Thisย representsย aboutย 74%ย ofย theย respondents.ย 26%ย engagesย inย theย procurementย ofย civilย engineering works while 0% is involved in heavy engineering procurement. This indicatesย that the findings of this research work have a larger bearing on procurement of buildingย worksย thanย civilย engineeringย works.

CHAPTER FIVE

CONCLUSIONย ANDย RECOMMENDATIONS

ย Conclusions

Thisย studyย identifiedย andย assessedย theย variousย methodsย ofย procurementย usedย forย construction works in Ondo State, Nigeria. It has also identified and assessed the variousย factors that affect the choice of procurement methods for construction works in Ondo State,ย Nigeria. It has also being able to establish the relationship that exists between procurementย method used and the cost and time performance of the construction projects in Ondo State,ย Nigeria.ย Therefore,ย itย isย concludedย fromย theย studyย thatย theย directย labourย methodย ofย procurement is the most used and considered the easiest procurement method in terms of itsย process and activities for the procurement of construction works in the public sector inย Ondoย state.

Anย examinationย ofย theย factorsย thatย affectsย theย selectionย ofย constructionย procurementย methods also reveals that complexity i.e the need to have a competent contractor to handleย client’s unique and high technology requirements and whose design and construction skillsย can be relied upon to satisfy their requirements in terms of the projectโ€™s characteristics andย theย servicesย involvedย isย theย mostย significantย factorย toย beย consideredย inย choosingย aย procurement method for construction works in the public sector of Ondo State, Nigeria. Itย follows then that consideration should be given to selecting a procurement method whichย will help to objectively assess the contractors in order to select one who can successfullyย achieve clientโ€™s objectives and technical requirements. Once this can be accomplished, thenย theย clientโ€™sย needย forย otherย importantย factorsย suchย asย speed,ย timeย andย costย certainty,ย and achievingย valueย forย moneyย andย publicย accountabilityย canย beย achieved.ย Thus,ย aย successfulย project canย be realized.

Recommendations

Fromย the conclusions reached, itย is hereby recommended that;

  • in selecting a procurement method for government-funded construction projects inOndo state, construction professionals working on such projects should give moreย attention to the need to carefully assess the procurement method to be used as to itsย satisfying the criteria of selecting a competent and reliable contractor whose designย and construction skills could be relied upon in satisfying clientโ€™s need and project

Areasย ofย furtherย research

The results and conclusions reached in this study are inconclusive and are subject to furtherย research. They give rise to other research questions that also needs to be addressed. Thisย includes;

  • assessing factors to be considered in determining if the design and construction skillandย technicalityย of aย contractorย can beย relied uponย duringย theย pre-contract
  • developing a model that would relate the factors influencing the selection of procurement methods to the cost and time performance of a project.

REFERENCES

  • Abrahams, K. & Farrell, P. (2003). An investigation into the influence of design andย buildย procurementย methodsย onย clientย valueย forย money.ย Proceedings:ย RICSย Construction ย ย Research Conference (COBRA), University of Wolverhampton. 1stย 3rdย September.
  • Al Hazmi, T. & McCaffer, R. (2000). Project procurement system selection model.ย Constructionย and Engineering Management.ย 126 (3), 176-184.
  • Allen,ย G.ย (2001).ย Theย Privateย Financeย Initiativeย (PFI).ย Economicsย andย Statisticsย Section,ย Houseย ofย Commonsย Library.ย Retrievedย Marchย 20,ย 2012ย fromย http://www.parliament.uk
  • Alshawi, M. (2009). Concept and Background to Public Private Partnership/Privateย Financeย Initiativeย UKย experience.ย Retrievedย Marchย 21,ย 2012ย fromย http://www.oecd.org.
  • Aminah,M.Y. Syuhaida, I. & Leong, S.C. (2011). Procurement Method as Conflict andย Dispute Reduction Mechanism for Construction Industry in Malaysia. Proceedings:ย 2ndย Internationalย Conferenceย onย Constructionย andย Projectย Management.ย IPEDRย 15 (2011), 215-219.
  • Aniekwu, A. N.ย & Osedeme ,W. A. (2002). Interim project financing in the Nigerianย constructionย industry.ย Journal ofย Civilย Engineering,ย 8, 47 – 59

Advertisements

WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!