ASSESSMENT OF FACTORS INFLUENCING CONTRACTORS BIDDING SUCCESS FOR CONTRUCTION PROJECT IN LAGOS

ASSESSMENT OF FACTORS INFLUENCING CONTRACTORS BIDDING SUCCESS FOR CONTRUCTION PROJECT IN LAGOS

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                                          CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
Construction activities is older than every activities and development in Nigeria and the rest of the world; it has developed gradually through the centuries from dwelling in caves to skyscrapers and recently to more advance structures that can smartly respond to stimuli in its environment (e.g. automated doors, escalators) (Peters, 2011).
According to (Horsely et al., 2013) stated that the building process may also be grouped into three major phases: the conception/design phase, construction phase and operation or use phase.
The evolution of construction project has been stable over the years in Nigeria to meet human needs and developmental processes such as provision of infrastructure, employment and contribution to the economic growth.
 According to (Anumba et al., 2010) stated that the construction practice has also undergone a great deal of development in response to the dynamic nature of human needs and infra-structure.
Bidding involves contractors making strategic decisions as it concerns the financial, managerial, manpower and physical resources of the firm before considering embarking on the project (Odusote and Fellow, 2012). Most significant decisions that must be made by the contractor's firm will centre on whether to bid (Egemen and Mohammed, 2012). The ability of contractors to address various bidding situations is an important ingredient for survival, particularly in today's competitive market. The different bidding situations together with the decision involved in the conversion of the estimate into a tender bid is often considered to be the most important step in the bidding process.
Lifson and Shaifer (2012) argue that knowing the importance of the factors influencing the decision-making process would allow key and major decisions to be reviewed and discussed regularly. The management of contracting organizations are expected to make firm decisions on bidding to achieve the long-term objectives of the organization. Contractors tend to make strategic decisions in respect to project selection, i.e., whether for a job (Oo, Drew and Lo, 2010, Shash, 2013; Lowe and Parvar, 2014).
The construction practice entails the entire system that defines procedure and standards for all phases of the building process; dictating responsibilities and interaction among the building industry professionals, who are in charge of making decisions and may also be involved in construction practice as Project Managers (PM).
According to Isa, Jimoh and Achuenu (2013), the construction industry in both developed and developing countries is the sector of the economy that transforms various resources into constructed facilities. Adeyemi et al. (2012); Mosaku et al. (2012); National Bureau of Statistics (2013) stated that the building and construction sector is an important contributor to Nigeria’s GDP. Over the past few years, the real GDP of the building and construction sector was averaged over 3%.
The Nigerian building and construction sector is significantly growing. The Nigerian Construction Sector Summary Report 2010 – 2012 attributed the continuous growth to the dynamisms of development. Also, the need to accommodate social and demographic changes such as migration and urbanization, a rising middle class with their demands for better living conditions (better houses, road networks) and societal needs for social infrastructure that happens over time.
1.2 STATEMENT OF PROBLEM
The construction industry has contributed the growth and development process in Nigeria; but there are some limitations to their contribution, one of the limitations is the level of experience and previous jobs done by the project manager (Odusami et al., 2013). Another problem facing the bidding success for construction project could also be lack of adequate tools necessary for effective construction project delivery.
            According toOlateju et al., (2011) examine the enormous effects the application of modern project management methods and techniques has effect on public institutions. Old and modern project management tools and techniques have helped ease activities on projects performed. Even with these, the industry’s migration from the typical traditional procurement system to the project management delivery system has not yielded the required result.
According to Patunola-Ajayi (2015); Nwachukwu and Emoh (2011) stated that the awareness and use of the Project Management system are still very low in Nigeria. The current situation requires urgent attention and improved Construction Management Framework. In Nigeria today, public and private building construction projects are hardly completed on time, within cost, quality and material specifications. It is to this regard that the researcher desired to carry out an assessment of factors influencing contractors budding success for construction project in Lagos State.
1.3 AIM AND OBJECTIVES OF STUDY
The main aim of the research work is to carry out an assessment of factors influencing contractors bidding success for construction projects in Lagos State. Other specific objectives of the study are:
1.     To determine the effect of experienced project managers on the bidding success for construction projects in Lagos State

2.     To examine whether availability of equipment and labour will influence the bidding success for construction projects in Lagos State.

3.     To determine the importance of contractual arrangements in the bidding success for construction projects in Lagos State
4.     to determine ways of improving bidding success for construction project in Lagos State

1.4 RESEARCH QUESTIONS
The study came up with research questions so as to ascertain the above stated objectives of the study. The research questions for the study are:
1.     What is the effect of experienced project managers on the bidding success for construction projects in Lagos State?

2.     Does availability of equipment and labour will influence the bidding success for construction projects in Lagos State?

3.      What is the importance of contractual arrangements in the bidding success for construction projects in Lagos State?

4.     What are the ways of improving bidding success for construction project in Lagos State?

1.5 STATEMENT OF RESEARCH HYPOTHESIS
H0: the level of experience and tools of the project managers has no significant effect on the bidding success for construction project in Lagos State

H1: the level of experience and tools of the project managers has significant effect on the bidding success for construction project in Lagos State

1.6 SIGNIFICANCE OF STUDY
The study on assessment of factors influencing contractors bidding success for construction projects in Lagos State will be of immense benefit to the entire construction industries in Nigeria. Most of the studies of Inuwa, I.I.1, et al. (2000) and other researchers was able to identify the factors are significantly important to projects planning in any type of construction procurement system but their studies were not able to examine the factors affecting the bidding success for construction project in Lagos State. This study will be able to determine the challenges faced by project managers in bidding for contracts/ construction project; the findings from the study will also educate the entire construction industries on the constraints or factors affecting contractors bidding success in a construction project.
1.7 SCOPE OF STUDY
The study on an assessment of factors influencing contractors bidding success for construction project will focus on two construction companies (Elalan Construction Company and craneburg Construction Company) in Ikoyi, Eti-Osa Local Government Area Lagos State. The study will cover on the concepts of the construction sector in Nigeria; it will look at the contraction bidding success, the challenges faced by project managers in bidding for construction projects and the factors affecting the bidding success for construction projects in Nigeria. The study will not cover on the revenue generated by the construction sectors.
1.8 LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work

1.9 DEFINITION OF TERMS
CONSTRUCTION: is the process of constructing a building or infrastructure

PROJECT MANAGEMENT: is the discipline of initiating, planning, executing, controlling, and closing the work of a team to achieve specific goals and meet specific success criteria.


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