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The Impact Of Procurement Systems On Construction Cost And Delivery
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1.2 STATEMENT OF THE PROBLEM
The Nigeria construction industry
is modeled after the British system being our colonial master, although,
since independence in 1960, it has incorporated the styles of other
European countries, such as Italy, Germany and France (Mansfield, 1994).
This industry is of paramount importance for employment and economic
growth (Ogunsemi, 2004). The Nigerian construction industry forms nearly
70% of the nation’s fixed capital formation; Federal Office of
Statistics (FOS)(2004), yet its performance within the economy has been,
and continues to be, very poor due to cost overruns resulting to
abandonment of projects. For example, the Nigerian construction
industry’s contribution to employment has remained consistently at 1.0%
over the last decade against the World Bank’s average observation of
about 3.2% in developing countries (Idrus, 2008). The traditional
design-bid-build system of procurement is still dominant in the Nigerian
construction sector and this may likely continue to be the trend. In
addition, the Nigerian construction sector comprises the clients,
contractors, subcontractors, suppliers, and key professional actors
responsible for design and supervision of projects. The professionals
includes architects, engineers (structural and services), and Quantity
Surveyors. There are professional bodies that regulate the activities of
these professionals. Delay in project execution is a major problem in
the Nigerian construction industry. This occurs both in small and large
projects. Virtually, all the projects executed over the years in Nigeria
were faced with problem of delay in delivery. Odeyinka and Yusuf (1997)
observed that seven out of every ten projects suffer delay in Nigeria.
Nigerian construction industry is faced with problem of cost overrun.
Ogunsemi and Jagboro (2004) noted that one of the most serious problems
the Nigerian construction industry is faced with is the project cost
overrun, with attendant consequence of completing projects at sums
higher than the initial sum. Therefore, working with realistic project
estimate is necessary at the outset of a project work, which would
eliminate uncertainty and as well provide a platform for project
success. Idrus and Sodangi (2008) also observed that the last decade has
however exposed the declining level of clients’ satisfaction from the
built facilities as a result of poor quality performance in addition to
the perennial problems of time and cost overruns in the Nigerian
construction industry. The Nigerian construction industry continues to
occupy an important position in the nation’s economy even though it
contributes less than the manufacturing or other service industries.
This industry plays an important role in the economy, and the products
of its activities are so vital to the achievement of national
socio-economic development goals of creating job opportunities and
social amenities and infrastructures (Anaman, 2007).
1.3 OBJECTIVES OF THE STUDY
The
main aim of this study is to examine procurement systems and it impact
on cost management and delivery. Specific objectives of the study are:
1. To identify various procurement systems commonly used by quantity surveyors in Owerri.
2. To examine challenges encountered when employing various procurement systems for construction projects.
3. To examine the impact of procurement systems on construction cost.
1.4 RESEARCH QUESTIONS
To guide the study and achieve the objectives of the study, the following research questions were formulated:
1. What various procurement systems are commonly used by quantity surveyors in Owerri?
2. What are the challenges encountered when employing various procurement systems for construction projects?
3. How do procurement systems affect construction cost?
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ABSRACT - [ Total Page(s): 1 ]The study to examine procurement systems and it impact on cost management and delivery, the study has the following objectives,to identify various procurement systems commonly used by quantity surveyors in Owerri, to examine challenges encountered when employing various procurement systems for construction projects and to examine the impact of procurement systems on construction cost.
Concerning methodology for this study, data was obtained from primary source that is standardized structured qu ... Continue reading---
