Consequences And Evaluation Of The Involvement Of Foreign Companies In Road Constriction
[A CASE STUDY OF KWARA STATE.]

2.4     PROBLEMS FACED BY LOCAL/INDIGENOUS CONTRACTOR
These are some of the problems facing the local contractors after the consultation of foreign companies.
1. Inadequate technical and managerial expertise.
2. Mis-management of funds
3. Inefficient management of plants and equipment.
4. Government policy
5. Favoritism and ethnicity.
6. Bribery and corruption.
7. Cash flow bottlenecks
1. Inadequate Technical and Managerial Expertise
It was found that one of the major problems facing the local contractors is the technical know how to carry major project and also their in ability to manage their construction firms properly instead of using the profit made on previous contract carried out to improve and expand their firm so that they will be able to compete favorably with their foreign counterparts, they would instead spend it on things that are not relevant to the development of their firm.
2. Mismanagement of Funds
One of the problems faced by the local contractors is the improper use of mobilization fees given to them by the client, instead of using the mobilization fees to start off the project effectively they prefer using the money to execute other project secondary to the job. After exhausting these funds on secondary things they will now resort to patching up of the work through using sub-standard materials.
3. Plants and Equipment Mis-Management
Another problem faced by local contractors is the inadequate, inefficient and use of construction plants and equipment. It is a fact that most of the equipment used in road construction industries are very expensive and so most of the local contractors with limited funds resort to hiring of the machine and equipment.
Inability to put these equipment into an efficient and effective use has been the bane of these local contractors, for example when a contractor hires some machine and equipment needed for a particular road construction work, instead of making maximum use of the equipment and plants rented, the machines and plants will be laid fallow on the site with the excuse that there are no more funds to carry out the project, thereby incurring great cost on the hired machines while the work is not progressing.
4. Government Policy
The stand and polices of the government towards the awarding of contractors has been counter productive to the growth of local contractors in Nigeria.
The belief and the unwritten policy by the government that the local contractors cannot effectively manage and carry out major contract that is capital intensive is very wrong. The use of quota system i.e. awarding contract on the basis of where you come from or whose turn to be given a contract instead of basing it on experience and level of expertise to carry out the project is counter productive to the growth of the local contractors.