Richard Ajayi Jimoh
Federal University of Technology, Minna, Nigeria
E-mail: rosney@futminna.edu.ng
Luqman Oyekunle Oyewobi
Federal University of Technology, Minna, Nigeria
E-mail: hassankay74@gmail.com
Nurayn Olanrewaju Aliu
Federal University of Technology, Minna, Nigeria
E-mail: aliulanren@gmail.com
Submission: 09/05/2016
Revision: 03/06/2016
Accept: 10/06/2016
ABSTRACT
The selection of suitable
procurement practice for construction projects is a very complex and demanding
tasks for stakeholders in the construction industry. In spite of the
overabundance of techniques and tools accessible to the stakeholders in
selecting an appropriate procurement method, clients are faced with the
decision as to which of the selection criteria can be adopted for a given
construction project to achieve project goals and objectives. This paper
focused on evaluating the existing procurement methods
being practised in the Nigerian construction industry with a view to
identifying and establishing the parameters for selection that will improve
contract delivery systems. In this research, quantitative approach was used to
collect data from 420 contractors, consultants and clients based in the Federal
Capital Territory, Abuja where large numbers of building projects are being
procured. The findings revealed six most commonly considered criteria and
deduced that, the quality, cost and duration of the project determines the type
of procurement method to adopt. It is therefore stated that in selecting any
particular procurement method for building construction projects, the
complexity of such project should be clearly defined and the other performance
indicators be given adequate consideration for a successful project delivery
that will enhance the achievement of the client’s goal.
Keywords: Criteria,
Construction, Procurement, Projects, Nigeria
1. INTRODUCTION
The
procurement process for construction projects is a very difficult and demanding
task from management perspective in the construction industry. The industry’s
inherent problems are as a result of its nature, structure and fragmentation,
which is apparent most especially in the traditional separation of design and
construction processes (BOWEN; PEARL; EDWARD, 1999). The unique nature of the
industry coupled with the impermanent nature of project organisation places
huge burden on the project team in making decisions as to which procurement
process to adopt in building process and in achieving the overall objectives of
the construction project.
Although,
Love, Skitmore and Earl (1998) observed that there is a general agreement
amongst researchers that certain procurement system is more appropriate for an
individual project than all others, but there is no any procurement method that
is better than the other in any project. Hence, the selection of suitable
procurement system is largely dependent on the identification and establishment
of client objectives and requirements (MASTERMAN; GAMESON, 1994).
However,
there are various methods for bringing about building projects that are
available to meet the needs of clients, but deciding on the method to use on a
given project is a difficult and challenging task. This is as a result of the
need to correlate client’s objectives and priorities with the selected method
in order to improve the chances of the project being procured successfully. In
fact, studies (e.g. GORDON, 1994; NAOUM, 1994; LUU; NG; CHEN, 2005) have proposed that when an appropriate
procurement system is selected, a reduction in the construction costs of
project by an average of 5% is plausible which in turn increase the possibility
of project success.
In
spite of the importance of this process, many construction clients have resulted
into selecting procurement methods superficially, and many clients often adopt
a specific procurement system by default without making a purposeful choice.
Bowen
et al. (1999) thus argued that
wrongful selection or inappropriateness of the choice of procurement system may
lead to project failure and that it forms one of the major factors responsible
for the poor performance of the construction industry.
Therefore,
considering the proliferation of differing procurement methods and the need to
select and adopt more systematic methods of selecting suitable procurement
system for a specific construction project (SKITMORE; MARSDEN, 1988), this
paper examines the different procurement methods used for building projects in
Nigeria; determines factors affecting the selection of a procurement method;
establish the performance of each of the procurement methods in relation to set
parameters of cost, time and quality.
2. DETERMINANTS OF PROCUREMENT METHODS SELECTION
It
has been acknowledged that one of the fundamental justifications for the
insignificant low level of performance of the construction industry is the
inappropriate procurement method selected to procure the project (MASTERMAN,
1992; LOVE et al., 1998; BOWEN et al., 1999).
The
client and their advisors are faced with daunting task of selecting the most
suitable procurement method. Flexibility, certainty, complexity, quality, risk,
price competition, responsibility, arbitration, dispute and time are the most
common standard factors that influence the selection of procurement methods.
However, these factors appear to be generic in nature while the situations are
not the same across the globe.
The
criteria for selecting different procurement strategies may be country specific
and to believe that the circumstances are the same may be a recipe for
potential failure of the process. For
instance, the uprising buildings’ intricacy, the demand for more efficient
finance management, the need to cut down on design and construction time
durations and the growing contract administration burden have placed added
demand on the clients to find alternative routes to the traditional method.
Therefore,
alternative procurement methods are being explored as a result of growing
experience of most clients particularly as it concerns project’s time, cost and
quality performance criteria (MAIZON et al., 2006). Construction projects are
full of twists and turns, they enjoy a long production cycle and involve
several participants and they are susceptible to risks and uncertainties.
It is
inherent for a client to have good experience and be fully aware of risks, how
it has considerably been associated to another organisation, or in what manner
it has been shared in some ratio between the clients and another essential need
to them. Eradicating and lowering financial risk is considered as a critical
requirement by clients. In theory, it is conceived to possess all design risks,
management and time slippage or error handed to one organisation (MAIZON et al.,
2006).
3. FACTORS AFFECTING THE SELECTION OF PROCUREMENT
STRATEGY
A
client can take up a collaborative strategy for any given project, such as
partnering regardless of the procurement method that is used. This type of
strategy has been frequently used by clients with various projects to do. Using pre-defined indicators, the performance
of both contractors and consultants can be examined for each of the projects
they partook and then compared.
This
strategy comes in handy specifically to monitor and evaluate incentive disbursement
where appropriate (MORLEDGE et al., 2006). Once the establishment of primary
strategy for a project has been made, then the following factors should be put
into consideration when the most appropriate procurement strategy is being
evaluated (ROWLINSON, 1999; MORLEDGE et al., 2006):
External factors – the potential effect
of commercial, political, economic, social, legal and technological factors
should be taken into consideration, which influence the client and their
business, and the project team during project’s lifecycle. For example,
potential changes in interest rates, changes in legislation and so on.
Client resources – the procurement
method which is used will be influenced by client’s knowledge, the
organisation’s experience which brings about building projects and the
environment within which it operates. The culture and nature of the
organisation is influenced by the objectives of the client. A major aspect that
should be considered is the level of client involvement in the project.
Project characteristics – The size,
complexity, location and uniqueness of the project should be taken into
consideration as this will influence time, cost and risk.
Ability to make changes –
During the early project’s early stages, the needs of the client should be
pointed out ideally. This is occasionally impossible since alterations being
introduced to a project may come as a result of changes in technology. On every
occasion, changes in scope lead to increase costs and time, they occur during
construction especially. It is imperative at the beginning of the project to
regard the extent to which design can be completed and the changes occurring
possibility.
Cost issues –
The need for price assurance assessment should be attempted by the client and
should be taking into consideration that there is a time delay from the initial
cost target to when tenders are analysed. The cost at the time of tender will
be influenced by the degree of design completion. If the price assurance is
needed, then design must be finished before construction begins and design
changes avoided.
By
extension in construction, there are other strategies that allow involvement
and collaboration as these are referred to in each procurement strategy
descriptor. Therefore, the type of the business case and the prioritized
objectives of the client determine the choice of such strategies used in the
selection of procurement selection criteria to be adopted.
4. Research method
The
participants in the survey comprised of general contractors, clients and
consultants. A structured questionnaire was designed and administered to these
categories of respondents to obtain industry wide views on the type of
procurement systems being used in Nigeria and to ascertain the factors being
considered in selecting appropriate procurement methods in achieving successful
completion of projects.
The
questionnaire is divided into three main sections. The first section obtained
background information about the respondents and their respective
organisations. The second part assessed the current procurement practices used
and their selection criteria, while the last part sought to establish the
performance of each of the procurement methods inter alia set parameters of
cost, time and quality.
Prior
to the administration of the questionnaire, a pilot study was carried out to
identify and establish the decision criteria being used by the stakeholders in
the industry in selecting procurement systems and to ascertain the subjectivity
of those decision criteria.
This
approach afforded us the opportunity of identifying the selection criteria
currently in use for procurement systems selection which is in line with Luu et
al. (2005) who used semi-structured interview. Therefore, to achieve a
comprehensive understanding of how procurement systems are being selected and
what factors are put into considerations in their choice of procurement
options; those three categories of respondent were selected.
These
categories of respondents were selected based on adequate understanding of different
procurement systems being used in the industry as a result of their active
participation; and sound practical experience and theoretical knowledge of
different building procurement methods (NG; LUU; CHEN, 2002).
4.1. Data
Reliability
According
to Love (2002), reliability of data is linked to source of data and the
recognition of the position held by the respondents to the survey. Hence,
well-structured questionnaires were self-administered to respondents who the
researchers adjudged to possess requisite and detailed knowledge about the
procurement process in the study area by virtue of their experience.
All
the respondents sampled from the 420 questionnaires returned in the research,
provided their background information that detailed their years of experience,
involvement in the procurement process, as well as positions held within their
organisations. A reliability analysis was conducted for the scales using
Cronbach’s Alpha.
The
reliability of an instrument is meant to indicate the degree of consistency
which measures the attributes it is supposed to be measuring (COHEN; MANION;
MORRISON, 2000). The less variation an instrument generates in repeated
measurements of an attribute, the higher its reliability. A rule of thumb that
is relevant to most situations according to Cohen, Manion and Morrison (2000)
and (GEORGE; MALLERY, 2003) is: 0.9 ≤ α ≤ 1.0 – Excellent; 0.8 ≤ α < 0.9 -
Good; 0.7≤ α <0.8 - Acceptable; 0.6
≤ α <0.7 - Questionable; 0.5 ≤ α <0.6 - Poor; and 0.0 ≤ α < 0.5 –
Unacceptable.
The
Cronbach’s coefficient alpha was calculated for each construct of the
questionnaire. The most identical values of alpha suggest that the mean and
variances in the original construct do not vary much, and thus standardization
does not make a great difference in alpha.
As
summarised in Table 1 several of the scales that represent the constructs
appear to have a good degree of reliability since each computed statistic is
above 0.70, as substantiated by Cohen, Manion, and Morrison (2000) and George
and Mallery (2003). Hence, it is proved that the questionnaire is valid,
reliable and suitable for the population sample size.
Table 1: Reliability analysis using Cronbach’s Alpha
Construct |
Cronbach’s Alpha |
Number of Items |
Criteria for choosing a building project
contract method in order of priority for a project |
0.880 |
17 |
Selected
criteria as regards their strength for choosing a building project in their
respective contract procurement methods |
0.866 |
6 |
Sources
of conflicts in relation to projects executed by contract procurement
methods. |
0.790 |
12 |
Set
parameters against each type of procurement methods in order of priority |
0.792 |
15 |
Contract
methods to recommend for types of building project |
0.966 |
6 |
4.2. Data
analysis and discussion of results
4.2.1. Level of use of procurement methods in FCT
Various
methods of selecting procurement system or strategy abounds in literature.
However, according to Love et al. (1998), the choice of procurement method is
becoming so broad due to projects complexity. There are quite a number of procurement
systems identified to be in used in the study area and the frequency of their
adoption or usage is presented in Table 2.
Table
2 shows that the respondents who were involved in the traditional contract
method have the highest percentage of 33.3% with a response count of 140
followed by those respondents that were mainly involved in design and build
with a response count of 110 representing 26.2%. Project management had a
response count of 96 representing 22.9% while Contract Management and PPP have
the lowest with counts of 56 and 18 representing 13.3% and 4.3% respectively.
In
all, most of the respondent’s organisations executed combination of
traditional, design & build, project management, management contracting and
PPP. This result shows that the organisations were well acquainted with the
various procurement methods, hence their capabilities to give accurate answers
to the questions asked. Also, the result
also confirms the study carried out by Babatunde et al. (2012), they ranked
traditional method as the highest and most frequently used procurement method
for procuring building projects in Nigeria.
Table 2: Level of use of procurement methods
in FCT
|
Level of use of
procurement methods In FCT |
Frequency |
Percent |
|
|
Traditional Contract Method
(Design-Bid-Construct) |
140 |
33.3 |
|
Design and Build |
110 |
26.2 |
||
Project Management Contract Management PPP |
96 56 18 |
22.9 13.3 4.3 |
||
Total |
420 |
100.0 |
||
4.2.2. Mean Item Scores and ranks for procurement selection
criteria
Table
3 shows the various procurement methods used in the execution of projects -
traditional, design and build, project management, management contracting and
public private partnerships methods in relation to the ranking of factors to
make the projects successful.
The
table shows that projects executed with traditional method have their first and
most important contributor, factor, as ‘when no causalities recorded to
complete a project’ ranked 1st and this was followed by ‘completing a project
within the estimated construction time’ and ‘when no conflicts recorded to
complete a project’ both with the same mean value ranked 2nd at the same rank.
Matters relating to ‘completing a project within budgeted cost’ were ranked 4th
while the least ranked factor is ‘satisfying with the quality of a project’
ranked 5th.
In
projects executed with design and build method, ‘satisfying with the quality of
a project’ was ranked as the most important factor. This was followed by ‘when
no conflicts recorded to complete a project’, ‘when no causalities recorded to
complete a project’, ‘completing a project within budgeted cost’ and then
‘completing a project within the estimated construction time’.
The
aggregate ranking for projects executed with project management method
indicates that ‘completing a project within budgeted cost’ was considered as
the greatest factor. The factor ‘when no causalities recorded to complete a
project’ was ranked second. ‘Completing a project within the estimated
construction time’, ‘when no conflicts recorded to complete a project’ and
‘satisfying with the quality of a project’ were ranked as the 3rd, 4th and 5th
factors respectively.
For
projects executed with Management contracting method like in the traditional
method, ‘when no causalities recorded to complete a project’ was perceived to
be the most important factor to make projects
successful. ‘When no conflicts recorded to complete a project’ was
ranked as 2nd, ‘satisfying with the quality of a project’ ranked 3rd,
‘completing a project within the estimated construction time’ ranked 4th, while
‘completing a project within budgeted cost’ was ranked the least.
Table 3: Mean item scores and ranks of
procurement selection criteria
Factor |
Mean |
Rank |
Mean |
Rank |
Mean |
Rank |
Mean |
Rank |
Mean |
Rank |
|
(TM) |
(TM) |
(DB) |
(DB) |
(PM) |
(PM) |
(MC) |
(MC) |
(PP) |
(PP) |
Frequency of conflicts/dispute and arbitration |
2.23 |
2 |
2.23 |
2 |
2.11 |
4 |
2.28 |
2 |
1.82 |
1 |
When no causalities
recorded to complete a project |
2.36 |
1 |
2.20 |
3 |
2.32 |
2 |
2.55 |
1 |
1.77 |
2 |
Level of project quality |
2.13 |
5 |
2.40 |
1 |
2.02 |
5 |
2.23 |
3 |
1.77 |
2 |
Time certainty |
2.23 |
2 |
2.07 |
5 |
2.23 |
3 |
2.15 |
4 |
1.56 |
4 |
Cost certainty |
2.18 |
4 |
2.17 |
4 |
2.37 |
1 |
2.09 |
5 |
1.55 |
5 |
The overall mean rank is given in
Table 4. To further prove the reliability of the data collected by comparing
the level of these factors for the various methods used among three groups of
respondents (clients, consultants and contractors). From the findings, there
are similarities from the results obtained. Even though, there is little
variance this could not be avoided as a result of peculiarity of one method to
another among the three groups (clients, consultants and contractors).
This is also an indication of the
reliability of the data collected. Table 4 shows that “When no causalities
recorded to complete a project would make a project successful” was rated
highly significant to the success of a project. The factors that ranked 2nd “When
no conflicts recorded to complete a project would make a project successful”
while “Completing a project within the estimated construction time would make a
project successful” ranked 3rd, while “Completing a project within budgeted
cost would make a project successful” and “Satisfying with the quality of a
project would make a project successful” were ranked 4th together.
Table 4: Overall Mean Ranks for procurement
selection criteria
Project
success criteria |
Overall
Mean Rank |
When no
causalities recorded to complete a project When no
conflicts recorded to complete a project would Make a
project successful Completing
project within the estimated construction time Would
make a project successful Completing
a project within budgeted cost would make a project successful |
3.53 1 3.32 2 3.06 3 2.55 4 |
Satisfying
with the quality of a project would make a project successful |
2.55 4 |
Friedman test statistics was
conducted among the three groups of respondents (client, consultants and
contractors) to determine if there was any difference in response among the
three groups (client, consultants and contractors). Friedman's chi-square has a
value of 316.427 and a p-value of 0.000 as shown in Table 5 and is
statistically significant. Hence, there is evidence that the
distributions in response among the three groups of respondents (client,
consultants and contractors) are different.
Table 5: Friedman Test Statistics
N |
420 |
Chi-Square |
316.427 |
Df |
4 |
Asymp.
Sig. |
.000 |
4.2.3. Choice of procurement method in terms of project value
Table
6 shows that management contracting has the highest response count of 160
representing 38.1% on the type of procurement methods they will use in
selecting the appropriate procurement method on a project size of N1-N10 million, this was followed by the design and build
with response count of 109 with 25.6%, followed
by the PPP with response count of 52 with 12.8%, In addition, project
management and traditional methods have the least response of 51 and 48 count
accounting for 12.1% and 11.4% respectively. This implies that management
contracting method is more reliable in terms of project size of N1-N10 million.
Table 6: Project Size (N1-N10 million)
|
Procurement method |
Frequency |
Percent |
|
Traditional Method |
48 |
11.4 |
Design and Build |
109 |
25.6 |
|
Project Management |
51 |
12.1 |
|
Management contracting |
160 |
38.1 |
|
|
PPP |
52 |
12.8 |
Total |
420 |
100.0 |
Table 7 shows that design and build
has the highest response with overwhelming count of 204 representing 48.6%
followed by the project management with response count of 80 with 19.0%,
followed by the management contracting with response count of 59 with 14.1%, In
addition, PPP and traditional methods have the least response of 41 and 38
count accounting for 9.7% and 8.6% respectively. This implies that design and
build method is more reliable in terms of project size of N11-N99 million.
Table 7: Project Size (N11-N99 million)
|
Procurement method |
Frequency |
Percent |
|
Traditional Method |
36 |
8.6 |
Design and Build |
204 |
48.6 |
|
Project Management |
80 |
19.0 |
|
Management contracting |
59 |
14.1 |
|
PPP |
41 |
9.7 |
|
Total |
420 |
100.0 |
Table 8 shows that design and build
method has the highest response with a count of 198 representing 47.1% followed
by the traditional method with response count of 112 with 26.7%, followed by
the management contracting with response count of 78 with 18.6%. In addition,
PPP and project management methods have the least response of 18 and 14 count
accounting for 4.3% and 3.3% respectively. This implies that design and build
method is also more reliable in terms of project size of N100 million and
above.
Table 8: Project Size (N100 million and above)
|
Procurement method |
Frequency |
Percent |
|
Traditional Method |
112 |
26.7 |
Design and Build |
198 |
47.1 |
|
Project Management |
14 |
3.3 |
|
Management contracting |
78 |
18.6 |
|
PPP |
18 |
4.3 |
|
Total |
420 |
100.0 |
4.2.4. Prioritising project set parameters against
procurement methods
The
overall mean rank given in Table 9 compared the duration of project based on
the various methods used among all the three groups of respondents (clients,
consultants and contractors). Table 9 shows that design and build was ranked
first with an overall mean of 3.51, followed by management contracting ranked
2nd with a mean score of 3.35, while project management and traditional method
were ranked 3rd and 4th with a mean score of 3.32 and 2.73 respectively.
While
PPP was ranked 5th with 2.18 mean score. This implies that design and build is
very beneficial as it relates to time as project parameters for considering a
project successful. This is similar to the findings of Babatunde et al. (2010)
that ranked time, cost and quality assurance as being the major considerations
in procurement methods selection, with design and build taking preference, but
contrary to the findings of Enekwechi (1993) that stated that traditional
procurement method was the preferred choice in terms of cost, time and quality
assurance.
This
is not surprising as a result of the time difference between the two studies;
there was improvement in the level of information at the disposal of
construction industry players back in 2010 when compared with 1993 when
Enekwechi’s study was conducted.
Table 9: Overall Mean Ranks for Time
Procurement |
Overall Mean |
Rank |
Time for DB |
3.51 |
1 |
Time for MC |
3.35 |
2 |
Time for PM |
3.32 |
3 |
Time for TM |
2.73 |
4 |
Time for PPP |
2.18 |
5 |
Table 10 shows that design and build
was ranked 1st with an overall mean of 3.70, followed by management contracting
ranked 2nd with a mean score of 3.38, while project management and traditional
method were ranked 3rd and 4th with a mean score of 2.82 and 2.73 respectively.
While PPP was ranked 5th with 2.73 mean score. This implies that design and
build is still very beneficial as it relates to cost as a project parameters
for considering a project successful.
Table 10: Overall Mean Ranks for Cost
Procurement Overall Mean |
Rank |
|
|
Cost for DB |
3.70 |
1 |
|
Cost for MC |
3.38 |
2 |
|
Cost for PM |
2.82 |
3 |
|
Cost for TM |
2.73 |
4 |
|
Cost for PPP |
2.37 |
5 |
Table 11 ranks project parameters in
terms of quality as against each type of procurement methods in order of
priority among the groups of respondents (clients, consultants and
contractors). The table shows that traditional method was ranked 1st with an
overall mean of 3.69, followed by design and build ranked 2nd with a mean score
of 3.29, while management contracting and project management were ranked 3rd
and 4th with a mean score of 2.92 and 2.62 respectively. This implies that
traditional method is very beneficial as it relates to quality as project
parameters for considering a project successful.
Table 11: Overall Mean Ranks for Quality
Procurement Overall Mean |
Rank |
|
Quality for TM |
3.69 |
1 |
Quality for DB |
3.29 |
2 |
Quality for MC |
2.92 |
3 |
Quality for PM |
2.62 |
4 |
Quality for PPP |
2.48 |
5 |
5. DISCUSSION OF RESULTS
The
analysis of the survey carried out indicates that 78% constitutes the response
rate of contractors, clients and consultants. This shows a good response to the
survey. Traditional Contract Method (Design-Bid-Construct), Design and Build;
and Public-Private Partnerships are the major building projects procurement
methods in use as revealed by the pilot survey and subsequently captured by the
questionnaires.
The
respondents agreed that completing a project within estimated construction
time, satisfaction with the quality of a project, when no conflicts recorded to
complete a project and when no causalities recorded to complete a project are
key criteria for selection procurement options. This finding is in agreement
with the previously reported results by other researchers (e.g. LOVE et al.,
1998; LUU et al., 2005).
However,
reliability of the estimated cost, reliability on targeted time and finance
arrangement offered should also be considered in the building procurement
method as reported by Luu et al. (2005).
The
results ascertained that traditional procurement method is the most frequently
used procurement method for procuring building projects in Nigeria. This
corroborated the assertion of Love et al. (1998) that argued that the most
commonly used procurement arrangement by the client respondents is the
traditional lump sum.
This
is also in line with the submission of Adesanya (1992) and Enekwechi (1993) who
considered traditional procurement technique as the most used method in Nigeria
in executing construction project to achieve time and cost performance. The
findings also supported the result of Rose and Manley (2011) who reported their
research work based on forty-two case studies that 78% of management
contracting projects were completed within or less than their budgeted cost
compared with only 30% for traditional contracts.
The
findings reflect the results of Jaafar and Nuruddin (2012) and Eyitope et al.
(2012), who asserted that there is upward movement in the level of awareness of
construction stakeholders to the benefits of other procurement methods as
opposed to the traditional procurement method.
On the criteria used in choosing building projects, design and build
method as a type of procurement method is considered the best when the criteria
to be considered include reliability of budgeted cost and reliability on
estimated targeted construction time.
But
if the criterion to consider is the minimization of total project time, from
conception to completion, the best procurement method to use is the management
contracting method. The study also showed that traditional method could be best
explored in realising a project if the criteria to consider are how to manage
effectively conflict on site and how to meet the required quality (ENEKWECHI,
1993).
As it
relates to the choice of procurement method in terms of project value, the
result of the findings showed that management contracting method is more
reliable in bringingabout project with size ranging from N1 million to N10
million. For project size of N11 million to N99 million, the design and build
method is adjudged to be the best in procuring such size of project.
This
finding is analogous to NEDO (1985) that suggested that the management method
offers price certainty because fees are paid on the actual cost of the work
undertaken (LOVE et al., 1998). However, Maizon (1997) observed that the traditional system of
procurement will be more beneficial in terms of cost and quality but to the
detriment of time thus emphasising the obvious and observed overrun in time on
construction project in Nigeria with its attendant cost consequences (OGUNSEMI;
AJE, 2006).
Lastly,
for project size of N100 million and above, the best procurement method as
deduced from the results of the findings is also the design and build method to
procure such size of project. This result relates well with the results of
Maizon et al. (2006) and Peter et al. (2008), that contended that other
procurement systems different from traditional system guarantee a better and
efficient coordination of works, materials, manpower and plants, thus making
construction time shorter compared to other procurement systems.
From
the above, it could be deduced that irrespective of the construction project
type that a client wants to engage on, the criteria used in selecting the
appropriate procurement system for the project is duly put into consideration
before selection. Cheong (2011), Brown (2010), Babatunde et al. (2010) and
Eyitope et al. (2012) all confirmed the above when they revealed in their works
that client or project manager tends to adopt any procurement to any type of
project that will enhance the achievement of adequate project performance in
terms of time, cost and quality specification.
In
measuring project success, these three factors are considered; they are the
three most important parameters of project performance. It should be noted that
in today’s highly competitive and uncertain business environment, clients are
demanding better value from their investment. They want their projects to be
completed on time, within the estimated cost and the right quality.
6. CONCLUSION
An
effective and efficient procurement method is sine qua non to improving
contract administration and delivery. The results of the study showed that
construction industry is a demanding work environment where many projects are
carried out, every construction project type has its oddity, which must be
watched out for before selecting a procurement method suitable for a project.
Traditional,
design & build, project management, contract management and public private
partnerships methods considered the most commonly applied type of procurement
methods available, hence the focus of this paper. Among these identified
procurement methods, respondents considered design and build system as being
the best and most effective method.
The
fact that others had low response, do not infer that they are not used
effectively for project execution. From the responses, there were different
criteria for selecting procurement methods. Six most commonly considered
criteria were identified and from the results, the quality determines the type
of procurement method to be used, to the respondents, to achieve adequate
quality of project, traditional and design and build methods are most suitable,
also to achieve early completion of project, design and build method is most
suitable.
To
minimize conflict throughout the construction period, project management and
management contracting method were recommended, for cost certainty, the method
to adopt are design and build and management contracting methods. When project
involves risk transfer, the method to use could be PPP or management
contracting methods so that the risk involved can be managed effectively by the
construction stakeholders.
Also
PPP can be used when funds for a project are not readily available and need for
the project cannot be overemphasized. However, effect of the choice of
procurement system on building project procurement shows that traditional,
design & build and management oriented can enhance project quality and
responsibility division.
7. LIMITATIONS
Every
research has its limitations and this current study is no exception. The study
examines the procurement selection criteria for projects in the public sector
in the Nigerian construction industry. However, the data set employed in the
study exhibit a high level of reliability, the data is only obtained from
stakeholders based in Abuja, the Federal Capital Territory of Nigeria.
Therefore, there is the need to exercise caution when generalizing the results
due to the geographical spread of the country.
Also,
a research pro forma attached to the questionnaire for respondents to provide
details of project characteristics such as initial and final cost and time
respectively of the projects procured using different procurement methods was
not completed by all the respondents, hence limiting the robustness of the
study.
8. AREA OF FURTHER STUDY
The
research work suggests a further study to be conducted in this angle of
knowledge, by looking into an appraisal of Public Private Partnership
procurement method in the midst of fast tracking procurement system to achieve
accelerated project delivery.
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