Effects of Procurement Related Factors on Construction Project Performance in Nigeria

Abstract

Several Literatures in construction management support the view that procurements have impacts on project performance. Aim of this study is to investigate the effects of procurement related factors of procurement selection criteria, tendering methods and variation orders on project performance. Purpose of the study is to evaluate the effects of procurement related factors on project performance. Snowballing sampling technique was used in selecting forty (40) construction organizations in Lagos metropolitan city that participated in the study and thirty-one (31) responses were secured from Architects, Builders, Engineers and Quantity Surveyors. Results of the study indicate that procurement selection criteria of cost, time, quality, project characteristics and external environmental factors have effects on project performance. Competitive, open and selective tendering methods have high impacts on project performance. No significant difference was found between the impacts of tendering methods on project performance. Variation orders impact project performance with time, cost overruns and disputes and it have effects on project performance. Conclusions are that procurement selection criteria, tendering methods and variation orders have impacts on project performance. Cost, time, quality related factors, tendering methods and variation orders strongly affect project performance. Recommendations to clients, stakeholders, practitioners and consultants are on the onset to consider tendering methods, use selective, open and competitive tendering approaches and discourage excessive variation orders during construction. Policy makers in government, clients, and private developers into housing projects should give adequate attention for selecting appropriate procurement and tendering methods for better management of future projects in Nigeria and other developing countries.

Key words: Procurement, Construction project, Performance, Nigeria