TRADITIONAL PROCUREMENT SYSTEM AND ITS IMPACTS ON EFFECTIVE PROJECT DELIVERY IN AKWA IBOM STATE

TRADITIONAL PROCUREMENT SYSTEM AND ITS IMPACTS ON EFFECTIVE PROJECT DELIVERY IN AKWA IBOM STATE

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TABLE OF CONTENTS

Index              Title                                                                                                    Page

Cover Page …………………………………………………………. i

                        Title Page……………………………………………………………..ii

                        Declaration…………………………………………………………....iii

                        Certification………………………………………………………….. iv

                        Approval Page…………………………………………………………v

                        Dedication ……………………………………………………………..vi

                        Acknowledgements ……………………………………………………vii

                        Table of Contents………………………………………………………viii

                        Lists of Tables……………………………………………………………

                        Lists of Figures………………………………………………………….

                        Abstract ……………………………………………………………………

1.0       CHAPTER ONE-INTRODUCTION            ……………………………………………. 1-

1.1       Background to the Study…………………………………………………………..1-3

1.2       Statement of the Problems………………………………………………………….3-5

1.3       Aim and Objectives of the Study …………………………………………………..5

1.4       Research Questions………………………………………………………………….5

1.5       Research Hypotheses………………………………………………………………..6

1.6       Significance of the Study……………………………………………………………6

1.7       Scope of the Study…………………………………………………………………...7

2.0       CHAPTER TWO- REVIEW OF RELATED LITERATURE                         

2.1       Preamble ……………………………………………………………………..          8

2.2       Construction Projects  ……………………………………………………………….8

2.3       Nature of Construction Project Delivery        .           .           .           .           .           .9

2.4       Procurement of Construction Works .            .           .           .           .           .           10

2.4.1    Overview of Procurement Practice in the Nigerian Construction Industry .  .           .12

2.4.2    Procurement Methods            .           .           .           .           .           .           .           .12

2.5       Traditional Procurement System         .           .           .           .           .           .           .13

2.6       Challenges in the Use of Traditional Procurement Strategies            .           .           .22

2.7       Level of Use and Stakeholder Satisfaction with Traditional Procurement

            Strategies in Nigeria    .           .           .           .           .           .           .           .           .26

2.8       Construction Project Performance      .           .           .           .           .           .           .27

2.9       Summary of Issues Arising from the Literature Review        .           .           .           .33

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Preamble         .           .           .           .           .           .           .           .           .           .34

3.2       Research Design         .           .           .           .           .           .           .           .           .34

3.3       Area of Study .           .           .           .           .           .           .           .           .           .34

3.4       Research Population   .           .           .           .           .           .           .           .           35

3.5       Sampling Technique    .           .           .           .           .           .           .           .           35

3.6       Data Collection Instrument    .           .           .           .           .           .           .           36

3.7       Procedure for Data Collection            .           .           .           .           .           .           36

3.7       Method of Data Analysis                         .                             .            .           .           .           37

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS/FINDINGS AND DISCUSSIONS

4.1       Preamble         .           .           .           .           .           .           .           .           .           40

4.3       Data Analysis/Findings           .           .           .           .           .           .           .           40

4.4       Discussion of Findings           .           .           .           .           .           .           .           .51

CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1       Preambles        .           .           .           .           .           .           .           .           .           56

5.2       Summary of Findings .           .           .           .           .           .           .           .           56

5.3       Conclusion      .           .           .           .           .           .           .           .           .           57

5.4       Recommendations      .           .           .           .           .           .           .           .           58

LIST OF TABLES

Tables             Title                                                                                                    Page

Table 2.1         Summary of Challenges in the Use of Traditional Procurement Strategies

Table 4.1         Questionnaire Administration

Table 4.2         Respondents’ Characteristics

Table 4.3         Project Characteristics

LIST OF FIGURES

Figures           Title                                                                                                                Page

Figure 2.1        Structure of Traditional Procurement Framework

ABSTRACT

Effective procurement strategy is synonymous with successful project performance. Existing practice favour significantly the use of traditional procurement strategies despite the poor performance. This study evaluated the challenges in the use of traditional procurement strategy towards unravelling issues underlying low performance and the impacts of these factors on the performance of construction projects in the public and private sectors of Akwa Ibom state. The objectives were to assess the level of use and stakeholder satisfaction with the use of traditional procurement strategies, examine challenges affecting the performance of traditional procurements strategies, and to evaluate the impact of these factors on the performance of construction projects. Data collected from a purposive sample of 100 construction stakeholders were analysed using descriptive and inferential statistics. The findings of the study revealed that among the variants of traditional procurement systems, design-bid-build, direct labour; fixed fee contract plus prime cost, and labour only are more prevalently used. However, the level of satisfaction with labour only and traditional fixed price contract strategies are more significant. Further findings revealed that individual participants’ tendencies to exploit loopholes in contract documents and late involvement of the contractors and their advisory inputs in design are the most significant challenges responsible for poor performance of traditional procurement strategies. These challenges are also correlates of project performance thereby strengthening further their relatedness to poor performance of traditional procurement strategies. The implication suggests the need to improve risk management and contractor’s involvement in the use of traditional procurement strategies as a way to improve overall project performance. The study therefore concluded that the challenges inhibiting the efficiency of traditional procurement strategies has the highest impact of project cost. The study recommends building relationship-based collaborative rules into the existing practice to curbed adversarial tendencies.


CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

Construction procurement has become a critical concern and has attracted industry-wide attention considering its role in the delivery of intended benefits to project stakeholders. The Construction Industry has struggled to deliver real value to its clients when compared to other industries. This phenomenon, scholars argue is largely due to the poor performance of the procurement strategy (Dada, 2012a; Dim and Ezeabasili, 2015; and Ogunsanya, & Ohis, 2016). According to Love, Skitmore and Earl (1998), procurement performance is a direct measure of the construction industry performance. It is believed that a good procurement strategy is synonymous with successful project performance (Rwelamila, 2010). Watermeyer (2011) therefore found it appalling, the unwillingness of developing countries and the paucity of efforts at developing procurement strategy that will deliver better results than currently experienced.


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