FACTORS INFLUENCING THE SELECTION OR PROCUREMENT METHODS FOR CONSTRUCTION WORKS IN NIGERIA

FACTORS INFLUENCING THE SELECTION OR PROCUREMENT METHODS FOR CONSTRUCTION WORKS IN NIGERIA

ABSTRACT
Procurement according to the Aqua Group, (1999) is the procedure whereby goods and services are obtained or acquired from other sources which attracts some fee. The importance of selection of a procurement method has been pointed out by (Chan, 1996), who found out that the procurement method selected can influence the time performance of construction projects. The main intent of this study was to examine the various factors that influence the selection of the methods for procurement of works in Nigeria. To achieve this goal, the study wanted to attain the research objectives, which are: to identify the various procurement methods frequently used for works in Nigeria, to identify the key stakeholders who participate in the selection of procurement methods for works, and to identify the factors which are considered when deciding on the method of procurement to use for works. A review of literature identified six (6) procurement methods frequently used for construction projects in Nigeria i.e. NCT, ICT, Two-Stage tendering, RFQ, Restricted tendering and Single Source. Seven (7) factors were also identified as having the tendency to persuade the method of procurement that will be considered for selection in construction projects in Nigeria. These factors were speed, estimated value of the project, flexibility in accommodating design changes, quality specification, complexity of project, security reasons and tendency for disputes and arbitration. The strategy and method used was a questionnaire survey and a descriptive statistics (mean and standard deviation), non-parametric chi-square, cross-tabulation.

CHAPTER ONE
INTRODUCTION
1.1Background
Construction project procurement has a scope which is quite immense. It deals with bringing together as well as organizing multiples of firms and organizations that are brought in to design, manage and build construction projects. Some of these projects include houses, shopping malls, office structures, bridges, roads etc. The processes and outcomes involved in construction projects affect all the people in the industralized world. The Nigeriaian construction industry contributes an average of 8.5% of its Gross Domestic Product (Nigeria Statistical Service, 2007), therefore the construction industry’s efficiency in this country is very important. Construction works in almost every country are procured through a number of methods be it open competitive, restricted, selective or negotiated. Project procurement can be described as processes whereby construction products are obtained by clients.

Procurement comes out of the word procure which literally means ?to obtain by care or effort?; ?to bring about? and ?to acquire?. Method is about “a procedure, technique, or way of doing something, especially is accordance with a definite plan”. In this context, project procurement focuses mostly on the processes, procedures and organized methods that are required to obtain or acquire a construction project. (Masterman, 1996) narrated project procurement as structures put together or designed as a blueprint which can be used to design and execute construction projects for clients.
The importance of selection of a procurement method has been pointed out by (Chan, 1996), who ascertained that the procurement method have a great influence on the time performance when it
comes to construction projects. A project which is driven by the different types of procurement methods always has a massive effect on time. Similarly, (Naoum, 1991) affirmed that the procurement method that were being used were having major effects on cost and time overruns. (Bowen et al., 1999) was also of the view that the selection of procurement methods inappropriately was the major cause of the construction industry’s poor performance. This brings about the effect on project delivery when choosing a particular procurement method type for a project. The choice of the best method for procurement for a particular project to be adopted by the client has a great effect on the performance of the project.

1.2 Problem statement
The choice of a specific Procurement method to use for a Construction project is a huge menace that the construction industry faces and it is dependent on factors such as type of client, level of risk, time availability, etc.

FACTORS INFLUENCING THE SELECTION OR PROCUREMENT METHODS FOR CONSTRUCTION WORKS IN NIGERIA