Abstract:Bidding is the most common means by which contractors obtain work. The construction industry accounts for approximately three quarters of the Gross Domestic Product (GDP) in the country. It is generally believed that wrong bidding practice is a major contributor to the construction industry's inefficiency. This means that any improvement in bidding has the potential to enhance the industry's performance, improve the quality of the decision-making process and assist in achieving the strategic objective of contracting organisations. In an effort to uncover the main factors that characterise the bid/no bid decision of contracting organisations, a study to evaluate the factors that affect contractors' decisions to bid for a project and to evaluate the importance of the identified factors to decision makers was conducted. A structured questionnaire was used as the principal instrument for collecting data from respondents. A total sample of 100 was drawn from these collections of construction contractors from Lagos state. Fifty were completed and returned, representing a 50% response rate. Frequency, percentage, mean score and Spearman's correlation were used in analysing data collected for the study. The results indicate that the financial capability of clients, availability of capital and availability of material are the most important factors that contractors consider when making a bid/no bid decision. The study also reveals that competition (number and identity of competitors) does not have significant influence on contractors' bidding decisions. The study recommends that contractors should also build their reputations in the construction industry by acquiring technical competencies and capabilities as these qualities have become important considerations in assessing contractors' competiveness, as well as being key indicators of successful tendering in construction projects.
Following the growing consensus within and outside the Nigerian construction industry that corruption and other unethical practices are endemic in the industry, coupled with scarce empirical study on professional ethics in the industry, there is a need to examine the perceptions of the professionals regarding ethical issues. This study therefore assesses the perceptions of construction professionals regarding ethical issues in the Nigerian construction industry. One hundred and ninety two professionals were sampled from 108 construction organizations comprising 55 consultancy organizations, 35 contracting organizations, and 18 client organizations in selected Nigerian major cities. A survey research design was employed. Descriptive statistics were used in analyzing the data. The results indicate that there is a decline in unethical practices within the industry compared to the pre-1999 era. The more common form of bribery is financial. Quantity surveyors were perceived as the most susceptible to bribery among the professionals in the industry. The builder/ construction manager faces the greatest pressure to act unethically among the professionals in the construction industry. The study recommends that professional institutions should give more priority consideration to ethical discourse at technical sessions, public lectures, and seminars. Furthermore, project financiers should ensure adequate and prompt remuneration for professional services. Since the quantity surveyors are perceived as the most susceptible to bribery, clients should ensure that their discretionary powers in the procurement of building projects are limited or subjected to third party verification. Finally, additional research is needed to explore the types of measures that might help curb professionals' unethical practices in Nigeria.
Purpose -Management capability is one of the major criteria for evaluating construction contractors during prequalification and tender evaluation This paper aims to investigate the impact of contractors' management capability as a prequalification criterion on cost and time performance of selected building projects. Design/methodology/approach -Prequalification assessments of management capability of wining contractors as well as cost data relating to 77 completed building projects executed between 2004 and 2007 are obtained. The data obtained from a questionnaire and archival data are analyzed using one-way analysis of variance and multiple regression. Findings -The results reveal that contractors' management capability has significant impact on cost and time performance of building projects as evidenced by p-values of 0.042 and 0.039, respectively. Practical implications -The research could be of significant benefit at the research implementation stage of public procurement practice especially in relation to the construction industry in Nigeria. Construction practitioners involved in prequalification and tender evaluation should continue to seek relevant information relating to management capability from the candidate contractors during prequalification and tender evaluation. Originality/value -Models capable of predicting the final cost and duration of building projects are eventually derived based on prequalification assessment of contractors on management capability, proposed contract duration and the initial contract figure. The goodness of fit of the models as defined by the value of R 2 is found to be 96.2 percent and 90.01 percent for cost and time, respectively; thus signifying high predictive efficacy of the models.
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