ANALYSIS OF CONVENTIONAL PROCUREMENT STRATEGIES AND THEIR APPLICATION IN NIGERIA CONSTRUCTION INDUSTRY

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Abstract

The success of performance of public sector projects in Nigeria is tied to the impact of procurement strategy or policy used in providing the building. Procurement policies significantly influence the success of construction projects since they are designed to provide solutions to specific project needs or conditions. The Nigerian construction industry was analyzed with particular emphasis on public sector procurement. The general performance of public sector projects in Nigeria was broadly assessed and quite unfortunately the literature review has criticized public sector procurement in Nigeria of been inefficient for efficient project delivery. Equally the respondents to the survey data obtained from the questionnaire distributed and oral interview conducted suggest that projects are affected by the procurement strategy adopted for project delivery. A significant number of the questionnaire respondents believe that performance of projects could be improved using alternative or hybrid procurement strategies. Recommendations were proffered in order to mitigate or reduce completely the challenges and complexities faced by public project procurement schemes in Nigeria

CHAPTER ONE

INTRODUCTION

  1. Background of the study

Strategies for the procurement of building projects have not changed significantly in the last 25 years, though time and cost overruns are still prevalent throughout the industry (Smith and Love, 2001). In a response to reduce the incidence of time and costs overruns, the disputes that may often arise, and the likelihood of project success, alternative forms of procurement method such as partnering and alliancing have been advocated (Love et al. 1998). Not all forms of procurement method, however, are appropriate for particular project types, as client objectives and priorities invariably differ (Skitmore and Marsden, 1988; Love et al. 1997). The objectives and priorities of a client need to be matched to a procurement system. To do this effectively, it is essential that the characteristics of various procurement systems and selection methods available are understood by clients and their advisors before a procurement method is selected. In this report, the characteristics of the most common procurement systems and methods are presented. In conjunction with this.