Impact of Wrong Selection of Procurement Method in Nigeria Construction Industry.

Impact of Wrong Selection of Procurement Method in Nigeria Construction Industry.

 

INTRODUCTION

BACKGROUND OF THE STUDY

The selection of suitable procurement method is essential for taking complex decision-making involving the implementation of construction projects. Procurement is defined as the process of searching, finding, agreeing to terms, and buying  goods, services, or works from an external source, through the process of tendering or competitive bidding process. Laffont, Jean-Jacques; Tirole, Jean (1993).This is to ensure that goods, services, or works are acquired at the best possible price, quality, quantity, time, and location when compared to others Organisations aims at promoting  fair and open competition concerning the  method  of procurement for their business while also seeking to  minimize risks and  exposure to fraud and collusion. Almost all procurement decisions takes into consideration issues such as delivery, handling, marginal benefit, and price fluctuations. Procurement requires an effective buying decisions under conditions of scarcity. It also utilizes data for making sound economic analysis methods including cost-benefit analysis and cost-utility analysis.  The adoption of suitable procurement method can lead to low construction project costs by an average of 5% and also enhance the project success. (Naoum, 1994; Luu et al., 2003). While a wrong procurement method can lead to project failure or the customers dissatisfaction (Love et al., 1998).The study seeks to appraise the impact of wrong selection of procurement of procurement methods in Nigeria construction industry.

 

 

 

 

 

STATEMENT   OF   THE PROBLEM

The procurement of building and construction material constitute a complex task which requires the exercise of care and adherence to  guidelines and specification . The selection of suitable procurement method is essential for taking complex decision-making involving the implementation of construction projects.  This responsibility has often been exercise wrongly in many construction works thereby leading to the failure and damaged of construction facilities.Therefore industry practitioners and researchers are seeking to determine appropriate framework and structure  which will provide suitable guide in the selection of procurement methods  within the construction process.The selection of appropriate methods is essential  for contributing to overall client satisfaction and project success. The selection of the most suitable procurement method is consequently fundamental for both clients and project participants, and has constituted as an important issue in the construction industry. The study seeks to appraise the impact of wrong selection of procurement of procurement methods in Nigeria construction industry.

 

 

 

 

 

OBJECTIVE   OF THE STUDY

The Main Objective of the study is to appraise the impact of wrong selection of procurement methods in Nigeria construction industry; The specific objectives include

1 To determine the relevance of procurement methods.

2 To determine the impact of wrong selection of procurement methods in Nigeria construction industry.

 

 

 

RESEARCH QUESTIONS

1 What is the relevance of procurement methods?

2 What is the impact of wrong selection of procurement methods in Nigeria construction industry?

 

STATEMENT OF THE HYPOTHESIS

The statement of the hypothesis for the study is stated in Null as follows

HO   The impact of wrong selection of procurement methods in Nigeria construction industry is high?

 

 

SIGNIFICANCE OF THE STUDY

The study proffers an appraisal of the impact of wrong selection of procurement methods in Nigeria construction industry; It provides relevant data for the effective formulation and implementation of policies to enhance the realization of envisaged objective.

 

 SCOPE OF THE STUDY

The study proffers an appraisal of the impact of wrong selection of procurement methods in Nigeria construction industry

 

LIMITATION OF THE STUDY

The study was confronted with logistics and geographical factors.

 

DEFINITION OF TERMS

 

PROCUREMENT DEFINED

Procurement is defined as the process of searching, finding, agreeing to terms, and buying  goods, services, or works from an external source, through the process of tendering or competitive bidding process.

PROCUREMENT FRAUD

Procurement fraud is the exercise of dishonestly, obtaining an advantage, avoiding an obligation or causing a loss to public property or various means during procurement process.