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Douglas Omoregie Aghimien, Olufemi Osanyinro and Taiwo Fadeke Adegbembo

Abstract

Procurement method over time has proven to have significant influence on the successful delivery of construc­tion projects. Making the right decision in the selection of a procurement option to adopt is therefore crucial if a project is to succeed. This study therefore assessed the cost and time performance of selected public building projects procured using traditional, direct labour and management procure­ment options in Ondo State, Nigeria. A pro forma was used to gather cost and time data from government procuring enti­ties in the state. In addition, a structured questionnaire was used to obtain information from construction professionals in these procuring entities, in order to ascertain the factors influencing the choice of procurement options adopted. The cost and time data gathered were analyzed using percent­ages and the paired-samples t-test, while those gathered on the factors influencing the choice of procurement options were analyzed using mean item scores and analysis of var­iance (ANOVA). The results revealed that although there is no significant difference between the initial and final costs of the assessed projects, some measure of cost overrun still exists. In addition, a considerable amount of time overrun was experienced on projects executed using the three differ­ent procurement options. The most significant factors influ­encing the choice of a procurement option are price compe­tition, speed, time certainty and complexity of the project. It is believed that the findings of this study will provide public procuring entities with insight on the cost and time capabil­ity of these procurement methods and aid them in selecting the procurement option that will help in delivering public building projects within the budget and on schedule.

Open access

Olutayo Gabriel Akinkunmi, Douglas Omoregie Aghimien and Oluwaseyi Alabi Awodele

Abstract

Labour-only procurement system is gaining fast popularity among construction clients who want to make savings by procuring materials themselves, leaving the contractor to provide only the labour needed. This study, therefore, appraised this procurement system by assess­ing its cost performance, its suitability, construction par­ticipant’s willingness to use it for subsequent projects and its merits and demerits. Using a survey design approach through the use of questionnaire and a pro forma, data were gathered from a total of 98 construction profes­sionals and contractors who have been involved in the use of this procurement system. Analyses of data were done using percentage, mean item score, Mann-Whitney U test and paired samples t-test. The study revealed that this procurement system is best for procuring residential buildings and minor alteration works. Construction participants who have used this system before are willing to still use it for subsequent works, as it delivers projects within budget and discourages short-changing of specifi­cations and standard by contractors. However, the need for the time commitment and reduction in contractor’s profit are its major disadvantages. For its cost perfor­mance, an overall cost saving of about 2% was discovered for the assessed 32 projects. The findings of this study will be beneficial to various interest groups such as clients and estate developers in selecting the right procurement option to use.