Correlates of Procurement Performance of Traditional and Labour-Only Methods in Nigeria

Abstract

Correlates of procurement performance of Traditional and Labour-only methods are investigated. Purpose of this study is to investigate if procurement challenges, contractual procedures, designer's experience, building type and final contract sum have influences on the performance of both methods. 120 questionnaires were sent out to the various respondents who have used the two methods. 64 responses were received from 39 Traditional projects and 25 Labour-only projects. Results indicate that unit cost of Labour-only correlates significantly with all procurement challenges. Unit cost of Traditional procurement also correlates significantly with lack of adequate supervision while build time and total time both demonstrate significant relationships with most challenges. Labour-only performance factors demonstrate no significant correlation with contractual procedure, designer's experience; build type and final contract sum. Traditional performance factors demonstrate no significant correlation with contractual procedures and designer's experience while it demonstrates significant correlations with building type and final contract sum. Study concludes that procurement challenges in both methods affect their unit cost, build time and total time and may be expensive to use both methods. Performances of both methods do not depend on contractual procedure, and designer's experience but that of Traditional method can be influenced by building type and final contract sum. Study recommends that consultants, clients and stakeholders should ensure that all challenges are well managed to avoid cost escalations. For better performance of future projects unit cost should be kept low while cost and time overruns must be avoided.

Assessment of procurement methods used for executing maintenance works in Lagos state

“…The factors influencing the choice of these procurement methods in the delivery of maintenance works are duration of project (time), the cost of the project, quality level, risk allocation, price competition and flexibility. These findings are to some extent similar to Oyegoke (2004), Ogunsanmi (2001) and Ogunsanmi and Bamisile (1997). In their survey of procurement methods, duration of the project, total cost of the project, quality according to specifications were ranked as the most influential factor in the choice of procurement methods, attributable to the volume of work to be maintained.…”

“…Oyegoke (2004) define procurement as the overall method used by a client/or representatives so as to arrive at a tender figure and other operation towards the selection of a contractor to deliver a project at an agreed time and conditions. According to Ogunsanmi (2001), the procurement process is also concerned with the form of procurement whether by contract or direct labour, and with the quality of delivery of both the work carried out and the level of service provided.…”

Nature of Communication Ineffectiveness Inherent in the Procurement Systems on Mass Housing Projects

“…Studies on mass housing attributes have indicated that MHPs exhibit unique procurement arrangements which underline the organizational attributes that make the management of MHPs require unique skills and management style [2,14]. The organizational features of MHPs are evidenced in its complex network of team relationship, multiple interdependent subcontracting under scheme, and complex network of procurement systems [4,6,15]. In the context of this study, the organizational task functions that characterize the procurement management attributes of MHPs are defined by the contract packaging, management concept for labour contracting and trade subcontracting, and coordination concept in subcontracting arrangement [2,6,15,18].…”

“…From a practical perspective, mass housing consulting teams may take the form of either a team composition where all members are from outside the developing organization or all from the organization and a mix of part from the organization and part from outside the organization. The procurement systems in contractor selection and subcontracting may also take the forms of Labour-Only and Direct-Labour and other discretionary procurements such as Alliancing, Partnering, Joint Ventures, and single or multilayered subcontracting [6,19,20]. These procurement styles come with their challenges in management and communication performance on the mass housing projects.…”

“…Adinyira et al [4] further revealed that mass housing projects possess unique complex network of procurement systems which underline their organizational attributes. Additionally, Ogunsanmi [6] revealed that MHPs exhibit unique procurement attributes that have significant implication for its subcontracting, labour management, and relational communication performance compared to tradition building projects often encountered in the construction industry.…”