Client financial support for mitigating cost factors affecting performance of small scale contractors in Nigeria

Abstract

The study assessed effects of client financial support for mitigating the effects of cost factors affecting the performance of Small Scale Contractors (SSC) in Nigeria. Exploratory and descriptive designs were adopted. A total of 550 questionnaires were administered to key construction industry stakeholders in northern Nigeria through stratified random sampling technique. The survey recorded 71.4% valid response rate. Descriptive and inferential statistics were used to analyse data obtained. Findings revealed that a small negative causal relationship exists between the effects of cost factors and the performance of SSC; and that clients' financial support through advance payment to SSC mitigates effect of construction costs on performance of SSC in Nigeria. The study recommends: construction stakeholders to effectively and efficiently manage cost factors that could impede SSC performance; clients to provide financial support to SSC; and, government to endorse policies that will encourage financial institutions to provide flexible and less interest loans, for improved SSC business performance and hence commensurate contribution to national economy.

Keywords: Client financial support, Contract performance,  Cost Factors, Small scale contractors