Effects of Procurement Related Factors on Construction Project Performance in Nigeria

Abstract

Several Literatures in construction management support the view that procurements have impacts on project performance. Aim of this study is to investigate the effects of procurement related factors of procurement selection criteria, tendering methods and variation orders on project performance. Purpose of the study is to evaluate the effects of procurement related factors on project performance. Snowballing sampling technique was used in selecting forty (40) construction organizations in Lagos metropolitan city that participated in the study and thirty-one (31) responses were secured from Architects, Builders, Engineers and Quantity Surveyors. Results of the study indicate that procurement selection criteria of cost, time, quality, project characteristics and external environmental factors have effects on project performance. Competitive, open and selective tendering methods have high impacts on project performance. No significant difference was found between the impacts of tendering methods on project performance. Variation orders impact project performance with time, cost overruns and disputes and it have effects on project performance. Conclusions are that procurement selection criteria, tendering methods and variation orders have impacts on project performance. Cost, time, quality related factors, tendering methods and variation orders strongly affect project performance. Recommendations to clients, stakeholders, practitioners and consultants are on the onset to consider tendering methods, use selective, open and competitive tendering approaches and discourage excessive variation orders during construction. Policy makers in government, clients, and private developers into housing projects should give adequate attention for selecting appropriate procurement and tendering methods for better management of future projects in Nigeria and other developing countries.

Construction Projects’ Key Performance Indicators: A Case of the South African Construction Industry

“…Enshassie et al is in agreement with the Marx (2013) and also states that time, cost and quality are the three predominant performance indicators for construction projects. Ogunsanmi (2013:29) states that KPIs can also be referred to as Key success indicators, therefore according to this notion, Al-Tmeemy et al (2010) and Guidiene et al(2012:384) findings are in disagreement with this study's' findings, their findings indicate that cost, time, quality, safety, achieving scope, customer satisfaction are the top four most significant indicators, which is in agreement with Marx (2013) and Ogunsanmi (2013), furthermore according to Al-Tmeemy et al(2010) and Guidiene (2012), revenue and profits, and benefit to stakeholder are the least important indicators.…”

A Forecast Model for the Level of Engineering Maturity Impact on Contractor’s Procurement and Construction Costs for Offshore EPC Megaprojects

“…Previous studies with the main factors highlighted were categorized by project locations in the various regions, i.e., Australia, East Asia, South-East Asia, Middle Asia, West Asia, Europe, and Africa. [10] -O Kaming et al [5] Indonesia O O Kumaraswamy et al [11] Hong Kong O Ssegawa et al [4] South Africa O Frimpong et al [6] Ghana O O Hsieh et al [3] Taipei O Long at al [12] Vietnam O Elhag et al [13] UK O Acharya et al [14] Korea O O Arain and Pheng [15] Singapore O Moura et al [16] Portugal O Harisaweni [17] Indonesia O O Oladapo [18] Nigeria O Azhar et al [19] Pakistan O O Le-Hoai et al [20] Vietnam O O El-Razek et al [21] Egypt O Enshassi et al [22] Gaza Strip O O Ameh et al [23] Nigeria O Memon et al [24] Malaysia O Mohammad et al [25] Malaysia O Rahman et al [26] Malaysia O O Halwatura and Ranasinghe [27] Sri Lanka O O Shibani and Arumugam [2] India O O Gunduz and Maki [28] -O O Yadeta [29] Ethiopia O O Ogunsanmi [30] Nigeria O Creedy et al [7] Australia O O Baloi and Price [31] Developing Countries O O Iyer and Jha [32] India O O Dikmen et al [33] defined the project risks that are associated with construction, design, payment, client, and sub-contractor (procurement) risk. Publications estimated the overall project risk using a fuzzy risk assessment.…”

Developing A Public Private Partnership Performance Framework for Transport and Health Sector Stakeholders in the UK and Ghana

“…Various IPs sectors have different risk issues with different stakeholder management processes [37]. PPPs procurement forms of project delivery systems involves various stakeholders, such as the traditional project delivery to achieve project [38]. Project complexities, projects success, failure or poor performance can be associated with other factors including stakeholder's understanding of performance instead of the traditional performance characteristics [39].…”