ANALYSIS OF CONVENTIONAL PROCUREMENT STRATEGIES AND THEIR APPLICATION IN NIGERIA CONSTRUCTION INDUSTRY
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ANALYSIS OF
CONVENTIONAL PROCUREMENT STRATEGIES AND THEIR APPLICATION IN NIGERIA
CONSTRUCTION INDUSTRY
CHAPTER ONE
1.0 Introduction
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 research work the reader should also refer to the material developed by
the New South Wales Government (2005) ‘Procurement Methodology Guidelines for
Construction’ and the Western Australian Department of Housing and Works ‘Local
Government Procurement Guide’ (2006).
1.1 Background of
Study
Procurement has been seen to be process of obtaining or
buying supplies of something like fixed assets (land, building, etc) especially
for individual and government.
Therefore, procurement strategies has become a fashionable
term with our construction industry, practitioners and researchers determines
the overall framework and structure of responsibilities within the process, it
is also a key factor contributing to the overall client satisfaction and
project success.
Procurement strategies and their application is of important
in our construction industry.
However, one must not be carried by which ever method of
procurement strategies proposed for a construction project, the major issue is
the different types of procurement are contractual obligations, responsibilities
and line of communication between the parties. One thing to remember is that
which ever method that is used, the statutory duties of the professionals are
always distinct and mandatory. Hence the engagement of a builder in the
procuring contract is statutorily required and highly recommended whichever
procurement strategy that is adopted.
1.2 Statement of
Problem
The general aim of study is to ascertain by reviewing,
evaluating and identifying how procurement strategies can be applied in our Nigeria
construction industry. Therefore, this issue raised the researcher’s interest
to know how procurement strategies can be applied in our construction industry
particularly Nigerian economy.
1.3 Purpose of the
Study
The following list below are the core reason and purpose of
this study which will be accomplished by the researcher.
1. To determine what
are the procurement strategies;
2. To know its
application in our Nigerian construction industry;
3. To know the
statutory duties of a builder in construction industry;
4. To know what is
construction industry.
1.4 Research Question
The research work is guided with same research question,
which will be administered and distributed among the researchers area of study
which are the respondents to this research work.
1. What are the
procurement strategies?
2. Where can they be
applied in Nigerian construction industry?
3. How can we know the
statutory duties of a building in our construction industry?
4. What is
construction industry?
1.5 Statement of
Hypothesis
The researcher formed some of the hypothesis which will be
tested to support this study. The hypothesis will be tested at 0.05 level of
significance using the t-test method.
The research hypothesis are as follows.
1. H1: The application
of conventional procurement strategies is significant to the Nigeria
construction industry
H0: The application of conventional procurement strategies is
not significant to the Nigeria construction industry
1.6 Signification of
the Study
It is hoped that the findings of the study will help the
construction industries in Nigeria reflect upon various variables that
influence the conventional procurement strategies. In so doing, they could
investigate the possibility of introducing those variable to their industries
which may consequently lead to reducing the cost.
The findings of this study are therefore expected to provide
new knowledge about the factors behind conventional procurement strategies with
respect to Nigeria construction industry.
1.7 Justification of
the Study
I want to justify this research work based on the objectives
and the significance of this research work, what is within its coverage, this
research work is with no doubt necessary to be carried out. Because if done
will greatly analyze conventional procurement strategies variable and its
application to the construction company in Nigeria .
1.8 Scope of the
Study
This research work covered a population study of 58
respondents from Enugu, Enugu state. More to that, this research work will be
considering the conventional procurement strategies and its application to the
construction company. One research hypothesis will be tested in light of the
study, a descriptive method of data analysis will be was employed in the study.
1.9 Definition of
Terms
Procurement are the procedures used by the procuring entity
to acquire goods, services and works.
Negotiation simply refers to the mutual discussion and
arrangement of the terms of a transaction or agreement for the purpose of
arriving at a common understanding of contract essentials (e.g., technical
requirements, schedule, prices, and terms).
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