ABSTRACT
The incessant failure rate of project and its abandonment has posed a big problem to the Nigeria economy. This study focused on the need to award contract through due process and the implementation of such project. It considers why most project or contract fail and proffers some solution to the accomplishment of the project. To achieve this, both secondary and primary data were collected through textbook, journals and past project etc where as the primary data are collected through questionnaire disseminated to workers of my area of study and the statistical tool used for the analysis was chi-square method. The investigation reveals that with due process transparency and accountability of government can be achieved and the investigation also reveals that Nigeria as a developing counting needs due process in their contract award. It was recommended among other thing that experts should be consulted right from the onset of a project. The use of experienced and qualified consultants during project initialization should in most cases be mandatory . It is believed that with dude process project implementation will be successful and contract failure will be reduced if not eradicated.
TABLE OF CONTENTS
Title i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER ONE – Introduction
1.1 Background of study 1
1.2 Statement o the problem 3
1.3 Research questions 4
1.4 Research hypotheses 4
1.5 Objectives of study 5
1.6 Significance of the study 5
1.7 The scope of the study 5
1.8 Limitation of the study 6
1.9 Definition of terms 6
References 7
CHAPTER TWO – Review of Relates Literature
2.0 Introduction. 8
2.1 Road Construction. 10
2.2 Primitive Building 11
2.3 Flint 12
2.4 Trabeated Construction 1 3
2.5 Modern Industrial Construction 15
2.6 History of Construction in Nigeria 16
2.7 Historical Development of Contracts 18
2.8 Trend in Contract Management 19
2.9 Due process in other Countries 21
2.10 Due Process Mechanism in Nigeria 22
2.11 The role of due process in Nigeria 23
2.12 Contracting Process. 23
2.13 Importance of Contract 24
2.14 Contract award through due process policy 25
2.15 Meaning of due process 26
2.16 Guidelines for Implementation of due process Certification of Contract
award 26
2.17 Certification of Contracts above one Million Certification but below the fifty Million Naira thresholds 27
2.18 The tender process 27
2.19 Advertisement for award of Contract 28
2.20 Pre- Qualification of Contract 30
2.21 Invitation to Bid 31
2.22 Contract Agreement 32
2.23 Transmission of Ministry Due Process Certification (MDPC) to the Accountant General of the Federation 32
2.24 Guidelines for stages of work Completion 33
2.25 Finalization of Internal Due Process Cycle 33
2.26 Certification Schedule for Project above the Fifty Million Naira Threshold 34
References 37
CHAPTER THREE – Research Methodology and Design
3.0 Introduction 39
3.1 Research Design 39
3.2 Population of the Study 39
3.3 Sample size and Sampling Procedure 40
3.4 Sources of Data 40
3.5 Instrument of Data Collection 40
3.6 Method of Data Analysis 41
3.7 Validity and Reliability of Instrument 41
CHAPTER FOUR – Data Presentation, Analysis and Discussion of Findings
4.0 Introduction 43
4.1 Analysis of Data 43
4.2 Hypothesis Testing 49
4.3 Discussion of Finding 53
CHAPTER FIVE – Summary, Conclusion and Recommendations
5.1 Summary 58
5.2 Conclusion 59
5.3 Recommendations 60
5.4 Suggestion for Further Studies 61
Bibliography 62
Appendix 64
Questionnaire 65
CHAPTER ONE
INTRODUCTION
1.1 Background of Study
The Nigeria government commits several millions of naira to construct project such as house, roads and other infrastructures that will be beneficial to the society. The provision of these infrastructures involves planning designs, Construction and administration. Planning includes the physical layout and an evaluation of the socio-political as well as institutional aspect of the structure. The design involves the architectural and engineering aspect including the structure integrity of the various Components to ensure safety, Comfort and the initials objective of the owner when the structure is constructed. Construction involves the building following the various guidelines and Condition of Contract to produce the building and administration include the various action of the owner be it the federal government state or individual in ensuring the continued performance of the building in satisfying the desired objectives for its construction through both its design and economic life. This process may last for some years. It may require the labour of a thousand men in hundred of different trades and occupation, the accumulated knowledge of a generation of experts and the use of national and manufactured products until such a time when the construction work are Completed there must a continues resolve to pursue the Construction to finality and resources must be provide in terms of money manpower machines and material to support the resolve throughout the long period of design and Construction. Thus civil engineering work are not products that can be bought ready made off the shelf. It then means that Civil engineering work must be Commissioned, ordered in advance. And so the work must be tendered for and must also pass through due process and contract awarded for the execution of the work. Construction project could be executed through either direct labour or through contracts. In the direct labour of doing construction work, the Client hires the services of personnel and pay them on daily basis. But in contract method of executing construction project, the client enters into an agreement with a contract who undertake to execute the project for a give sum of money called the “CONTRACT SUM” The contract method of executing project is usually bound by the term and condition of the contracts.
The contract agreement stipulates the quantities of work to be done, the limits within which the whole work have to be completed and every other condition made. However the award and administration of contract have been so much abused in Nigeria. This is as a result of inflation of contract price by those involves in the award of contract to the contractor. For example contract price is found to be inflated by “X” percent and the contractor is forced to accept a new price less the “X” amount. This has caused some contractor to stop or even abandon work on site due to the fact that the “X” amount is not enough to execute the job. Most of the contracts awarded by the Nigerian government have failed along the line. Some of the projects on hand have collapsed (as in the case of building.) due to inferior material. This is as a result of the disregard to the due process by executive of some parastatals who do no pay any regard to contract term. This has made it necessary for government to institute the award of contract through due process.
1.2 Statement of the Problem:
In every development plan, the government budget huge sums of money running into several billons of naira for the provision of infrastructure unfortunately these projects which are suppose to benefit the society are hardly realized. Those actually completed are usually of inferior quality and are usually completed at cost much higher than the original price. Today, our society is littered with money uncompleted or abandoned projects. The consequences of this are that there is little or no development in the society. Also the people are disenchanted with the government, which is usually viewed suspiciously by the people for these reason it was necessary for the government to solve these problem. Thus;
- Why should government spend so much money on an unachievable project?
- Why are some of the project done half- way and of inferior quality?
- What should government do to check or monitor the full implementation of projects?
- Who is to do that?
This problem was becoming an epidemic, consequently the government responded by setting up the budget monitoring and price intelligence unit (BMPIU) that is charged with the responsibility of ensuring that due process is followed in tendering award and execution of contract for government construction works. It is a simple mechanism that Certifies for the test of proper project implementation Packaging, such packaging must be adhered stringently to the international competitive bid approach in the award process.
1.3 Research Questions
The following research questions are formulated to guide the study. - How would government achiever the administration of project using due process mechanism in contract award?
- How would due process in contract award improve system planning and project preparation work leading to transparency and accuracy of costing.
- Does due process improve liquidity? Management of public fund.
- How will due process enhance transparency and accountability of government?
1.4 Research Hypotheses
For the purpose of this study, the following research hypothesis were formulated:
Ho: Effective administration of project cannot be achieved using due process mechanism in contract award.
Hi: Effective administration of project can be achieved using due process mechanism in contract award.
Ho: Due process in contract award improves system planning and project preparation work do not lead to transparency and accuracy of costing.
Ho: Due process does not improve liquidity management of public fund.
Hi: Due process improves liquidity management of public funds.
Ho: Due process enhances transparency and accountability of government.
Hi: Due process does not enhance transparency and accountability of government.
1.5 Objectives of Study
The purpose of this study is to know the relevant of the budget monitoring and price intelligence unit (BMPIU) and analyses how they have used the due process mechanism to re-establish and sustain an open, transparent and competitive federal government procurement system that is integrity driven, uphold spending in order to achieve value for money and to ensure efficiency and integrity based monitoring of the implementation of all federal government project on time with due principles.
1.6 Significance of the Study
It is envisaged that at the end of this study various interest group will benefit from the research.
To contractors, this work will provide adequate information on various way of seeking for contracts and its implementation.
It will equally form the basis for policy formulation and implementation.
The academic world will finds this work equally useful for legislative decision on issues relating to the awarded contract and its implementation. The general public who happens to come across this will know the relevance of the federal government contract document and due process bureau in the award of government contract, thus acting as an eye opener to them.
1.7 Scope of the Study
The scope of our study is limited both in variables (operational management and coverage of sector). This research particularly covers both private and public sector of the economy.
This is necessary to ensure a wide coverage of all interest in the organization.
1.8 Limitation of the Study
Generally, people dose not like to volunteer information especially when it is to unveil a secret. Thus sufficient information needed in my area of study was not gotten:
Financial constrain: Money as the saying goes answers all thing: this work is limited due to financial constrain encountered by the researcher in the course of sourcing for information and other relevant areas in the study.
1.9 Definition of Terms
Contract: The process of undertaking a venture. It is an agreement that creates an obligation binding upon the parties there to.
Due process: An analyzed or systematic way of doing things. As defined by (BMPIU) (2005 Vol 1). Due process is a mechanism for ensuring strict Compliance with the openness competition and cost, accuracy rules and procedures that should guide contract award with federal government of Nigeria.
Contract Document: A federal government Document that state how a project is to be awarded and implemented.
Award of Contract: The process of giving out a contract. REFERENCE.
Budget Monitoring and Price Intelligence Unit (BMPIU) The ABC of The Contract Of Due Process Policy. State House Presidential Villa Abuja WWW.BMPIU. Gov. Org.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.0 Introduction
Historically construction has existed right from early stage or creation. In the early stage of construction there was no clear distinction drawn between the work of the military engineer, the civil engineer and the architect. But man might well serve at different time in all the three capacities. (Lenardo da vinci) is well known to have done so but so did many less out standing ingenuity and versatility (Charles and others, 1850). In the latter part of seventeen century at least in France, a tendency to specialized developed employment in any of those three capacities was particularly a static monopoly? In 1661 Lean Baptise Colbert (1619- 83) became chief minister to Louis XN at a time when public building, the improvement of communication and the election of fortification were all matter of great importance. In 1671 he also persuaded the king to found the academic de Architecture. In 1715, the road and bridges of France were placed under the care of a Director- General. Does point clause and in 1766, a staff of engineer was embodies to work under his direction. In 1741, there was regular training centre for surveyors and engineer under the direction of lean Rodophe Perrof (1708-94). There was very little science applied to construction by architect, builders and engineer in the eighteenth century, Bernard Forest de builder (1693- 1761) in la science des lngenieurs (1729) give simple rules based on static for checking for stability of retaining wall and arches and for evaluating the strength of beams. (Charles and other 1850). architecture was recognized as profession in the year 1768. In 1791 a number of London architects formed an association. The British institute of architects was founded in 1834 it became the royal institute of British architects in 1866. In 1771 a group of men who were frequently called upon to prepare surveys or to give evidence before parliamentary Committee on schemes for the building of canals, docks, harbors, and the like, formed themselves into a society of engineer and began to refer to themselves as civil engineer, john Seaton (1724 – 92) was the recognize leader of the profession at the time. The institution of civil engineer was founded in 1818 then the division between architecture and civil engineer began in 1715, which definitely was completed after the eighteenth century, (Charles and other 1850).
AWARD OF CONTRACT THROUGH DUE PROCESS AND ADMINISTRATION USING FEDERAL GOVERNMENT CONTRACT DOCUMENT
