Evaluation of the challenges facing small and medium-scale building contractors in Nigeria

Abstract

In this study, the challenges associated with the operations of small and mediumscale building contractors in Nigeria were considered. Globally, the construction industry is faced with several notable challenges in terms of technological advancement, development of  operational processes and mechanisms, and keeping up to date with the prevailing business trends. The main objective of this study is to  examine the problems that are facing small and medium-scale building contractors in Nigeria. The study employed a questionnaire  survey as a data collection instrument. A total of 317 closed-ended questionnaires were administered to small and medium-sized  contractors in Akure Nigeria. However, only one hundred and seventy-two (172) returned questionnaires were found valid for analysis.  The data was analyzed using the simple descriptive statistical method of percentage and weighted mean score (WMS). Findings revealed  that inadequate startup capital for contractors was the major problem facing small and medium-scale building contractors in the study  area given its highest mean score of 4.0697. In light of the above, the study recommends that the government being the major player in  the building industry should endeavour to initiate, create, and implement policies such as grants and aids for small and medium-sized  contractors to enable them to remain in business no matter the state of the economy. It is concluded that the ineffectiveness of the small  and medium-sized contractors in the study area is influenced by the un-availability of startup capital, lack of political will in implementing policies that assist small and medium-sized contractors, delayed payment, high-interest rates on loan facilities, and  difficulty in getting guarantors for the loan facility.