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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
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
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.
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
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.
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:
the effect of experienced project managers on the bidding success for
construction projects in Lagos State
whether availability of equipment and labour will influence the bidding success
for construction projects in Lagos State.
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
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?
availability of equipment and labour will influence the bidding success for
construction projects in Lagos State?
What is the importance of contractual arrangements in the
bidding success for construction projects in Lagos State?
are the ways of improving bidding success for construction project in Lagos
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
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).
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
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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