CONSTRUCTION PROJECT PROCUREMENT Project Planning Challenges of Nigerian Indigenous Contractors.

Construction project procurement: project planning challenges of Nigerian indigenous contractors

Proceedings of the CIB W107 2014 International Conference, Lagos, Nigeria, 28th-30th January, 2014

CONSTRUCTION PROJECT PROCUREMENT: Project Planning

Challenges of Nigerian Indigenous Contractors.

Inuwa Ibrahim Ibrahim, Wanyona Githae and Diang’a Stephen٭

Department of Construction Management, School of Architecture and Building Sciences

(SABS), Jomo Kenyatta University of Agriculture and Technology, Nairobi-Kenya

Email: [email protected]٭

ABSTRACT The numerous challenges confronting the Nigerian construction industry coupled with the inability of

indigenous contractors’ to deliver projects successfully due to inadequate project planning, have

resulted in poor performance in the industry. The study therefore aims at identifying Nigerian

indigenous contractors’ project planning challenges and their severity in building procurement

systems. The literature review and interviews revealed 22 such challenges. The study used

questionnaire survey method and administered 300 questionnaires through purposive sampling to

indigenous contractors, consultants and public professionals in northern Nigeria. SPSS was used to

analyse the data obtained for: reliability, correlation, and significance tests, as well as descriptive

statistics. Result reveals that all the identified challenges are severe to indigenous contractors in

project planning, however, late honouring of payment certificates, too many variations, and technical

incompetence, were ranked the most severe. These challenges emanates from the clients, consultants

and contractors as well. The study recommends: prompt honouring of payments certificates by

clients; curtailing of variations through exhaustive brief evaluation, adequate feasibility study and

appropriate scope definition, clients’ adheres to project management procedure; and contractors

employ competent personnel, embark on continuous training, develop entrepreneurial skills and adopt

project management method.

Keywords: Construction industry, indigenous contractors, Nigeria, procurement systems, project

planning challenges

INTRODUCTION The construction industry produces the infrastructural facilities required for transportation, housing,

communications, water and power supply, manufacturing and waste disposal (Achuenu, et al. 2000).

The industry has the unique ability to facilitate development by providing directly for human needs,

stimulating investment or generating employment and is therefore important in the socio-economic

development of developing economies (Hamilton, 2006). The economic worth of the industry's

contribution to the growth of a nation can never be over emphasised (Usman et al. 2012). In Nigeria,

the construction sector accounts for almost 70% of the nation’s fixed capital formation (Oladimeji and

Ojo, 2012) and employs approximately 8 million people, which represents approximately 25% of

Nigeria’s workforce, the largest in Africa (Ibrahim and Musa-Haddary, 2010).The industry does this

through the services it renders and products it produces in the procurement process. Procurement,

according to A.D. Ibrahim (2008), is considered the key to performance improvement in the

construction industry.

The significance of procurement to the construction industry stems from two aspects (Idoro, 2012a):

firstly, it involves a series of interrelated and sequential processes and the effectiveness and efficiency

of these processes have a considerable impact on the success or failure of a project; secondly, there

are several procurement methods available for a developer to adopt when procuring a project. The

construction industry is a project-based industry that relies on the triads of the client, the consultants

and, the contractors to attain its aim (Usman et al, 2012; Gollenbeck, 2008; Roper and McLin, 2005;

Bennett, 2003). Contemporary construction procurement business demands more from contractors

beyond their earlier role as integrators in a design-bid-build procurement route (Gollenbeck, 2008), to

a much more complex role in either: management oriented contracts; integrated contracts or;

discretionary contracts (Mathonsi and Thwala, 2012; Babatunde, et al. 2010; Harris and McCaffer,

2005; Bennett, 2003). These complexities in accomplishing their construction procurement task

necessitate project planning to be successful (Baily, et al. 2008). Planning defines the activities and

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actions, time and cost targets, and performance milestones which will result in successful project

objectives (Teslang, 2004 in Ubani, et al, 2010). In developed countries, contractors have embraced

planning because the results of a well planned, carefully monitored and controlled contract directly

impact performance and profitability of the contract and the company (Harris and McCaffer, 2005).

However, in a depressed economy like Nigeria (Ubani, et al. 2010), projects are vulnerable to failure

because of myriad of problems. Even if the resources are available, projects fail due to variations in

plans, defective plans and inefficient management (Ubani, et al. 2010). This is further compounded by

the inability of indigenous contractors’ to deliver projects successfully due to inadequate project

planning for their contractual requirements. These creates a major problem impeding the industry

from meeting the construction needs of the nation (Saleh, 2004) and, consequently impacted

negatively on the growth of the nation’s economy (Aniekwu and Audu, 2010; Uduak, 2006; Muazu

and Bustani, 2004 ). According to Achuenu, et al. (2000) there should be a developmental effort to

improve the efficiency of the construction industry in Nigeria. And the priority of the effort should be

geared towards the development of viable indigenous firms’ that will successfully handle all

construction works in the country and in the future and compete favourably with international firms

both here in Nigeria and globally (Achuenu, et al. 2000). This study therefore aims at identifying

Nigerian indigenous contractors' project planning challenges and their severity in construction

procurement systems.

RESEARCH ON CONSTRUCTION PROCUREMENT There is a lot of research conducted on construction procurement across the globe, amongst which are

those conducted in: North America (Alarcon et al. 1999); Australia (Love, 2000; Love et al. 1998);

Asia (Rashid et al. 2006); Europe (Oyegoke, 2006); and Africa (Dada, 2012; Idoro, 2012a; Idoro,

2012b; Ikediashi, et al. 2012; Mathonsi and Thwala, 2012; Babatunde et al. 2010; A.D. Ibrahim,

2008; Ojo et al. 2006). Research conducted in North America, Australia and Asia highlighted

information concerning: methodology to diagnose and evaluate the procurement process for

continuous improvement, criteria adequate and sufficient for procurement path selection, direct and

indirect consequences of rework on procurement methods, and how the various procurement methods

framework affect the project performance of time, cost and quality. In South Africa, Mathonsi and

Thwala (2012) classified factors influencing the selection of procurement systems into two: internal

and external. The internal factors were broadly divided into client's and project characteristics.

Ojo et al (2006) discovered that projects category of 1-5, 5-10, over 10 million Naira in Nigeria,

showed a time overrun of 18.98%, 99.64 % and 34.55 % respectively for housing projects procured

through traditional contract and concluded that the 1-5 million Naira cost category is suitable for

traditional contract procurement on housing projects in Nigeria. Babatunde et al (2010) discovers that

variants of traditional methods of procurement are the most adopted in project execution in Nigeria. In

addition, project completion at estimated time is the highest factor considered for traditional method,

while quality assurance is the highest for the non-conventional method. Dada (2012) developed a

model for predicting procurement selection. Idoro (2012b) recommends that the use of project

documents during each project stage and the overall procurement phase in projects procured by the

traditional contract method must be improved, as it will enhance the outcome of the projects. In

another study, Idoro (2012b) discovered that, in Nigeria, at inception, design, tendering and

construction stages, plans are not prepared in many of the projects procured through Design-Build

(DB), thus, recommends the use of project plans in procuring projects through DB to reduce the high

time and cost overruns recorded in DB projects. Ikediashi et al (2012) identified job cost reporting,

time performance, quality of work, Health and Safety, Quality of Work, and Cost per Unit, as the

most important amongst eight key performance indicators for DB projects in Nigeria. A.D. Ibrahim

(2008) runs a critique on the professional philosophy and mechanism of the public procurement Act

2007, focusing on the construction industry; highlighted shortcomings related to the Act’s operational

philosophy and mechanism, both at the central coordinating level of the Act vis-a-vis their regulatory,

certification, monitoring, training and advisory functions, and at the implementation level. Although

all the research efforts reviewed highlighted essential information concerning construction



procurements, none of them study the challenges of contractors planning in various procurement

systems.

NIGERIAN INDIGENOUS CONTRACTORS PERFORMANCE AND CHALLENGES Inuwa et al. (2013) described a contractor as a corporate body that runs a business enterprise

established to provide a product or service in the hope of earning profit. Their statutory business

registration, according to Harris and McCaffer (2005), can either be sole-proprietorship, partnership,

or corporation. Contractors form the backbone of the construction business as they execute most of

the construction work (Chitkara, 2012). As a firm, their primary responsibility is to ensure that all

resources; manpower, machinery, materials and money are employed optimally for the efficient

delivery of a project, and to produce maximum profit for the investors in the enterprise (Olateju, 1992

cited in Fagbenle et al., 2011; Saleh, 2004). Contractors therefore occupy a significant position in the

construction industry, and are hence regarded as major players in it (Chitkara, 2012; Usman et al.

2012).

The debate on project performance in NCI centres mainly on the performance of two categories of

contractors (Idoro and Akande-Subar, 2008); foreign and indigenous. Indigenous contractors are

contracting firms that are fully owned and managed by Nigerians; in essence the nationality of the

firms’ ownership and management is wholly Nigeria. In terms of project success, Uduak (2006)

scored Nigerian indigenous contractors better in building and civil engineering projects. In Y.

Ibrahim's (2012) view, indigenous contractors have come of age and as such, can be entrusted with

large and highly technical projects. In contrast, other studies reveal that their performance in Nigeria

is marred with criticism stemming from lack of capacity to deliver due to: abandonment of projects,

cost and time overrun, poor performance, poor workmanship, poor management capability, financial

difficulties, poor planning, poor mechanization, and high frequency of litigation (Oladimeji and Ojo,

2012; Aniekwu and Audu, 2010; Idoro and Akande-Subar, 2008; Muazu and Bustani, 2004; Achuenu,

et al. 2000). Contracting, according to Muazu and Bustani (2004), is a terrain that calls for high

specialization. Thus, it is practically impossible to diligently run a construction firm without the

requisite knowledge (Freeman, 2011). However, by comparison, one is at pains to claim finding an

indigenous firm in Nigeria able to match, or surpass the skill and competence of a foreign firm

(Muazu and Bustani, 2004). The greatest single edge a foreign firm has over indigenous contractors

in Nigeria is good management (Muazu and Bustani, 2004).

The major blame for poor project performance of a structure, according to Idoro and Akande-Subar

(2008), should be borne by contractors because they are directly responsible for its production.

However, this is not always so, other factors hinder the performance of indigenous contractors in

Nigeria (Aniekwu and Audu, 2010; Bala et al. 2009; Achuenu, et al. 2000; Adams, 1997). According

to Adams (1997) challenges on contractors performance emanates from the business environment,

client or representatives and from contractors deficiencies. And within these three sub-classification,

Adams (1997) identified 26 factors, amongst which are: uncertainties in supplies and prices of

materials, obtaining interim payments, access to capital, access to plant and equipment, company

organization, shortage of skill labour, incomplete contract documentation, communication with client

and representatives, design changes, project planning and site management, resolving contract

disputes, technical know-how, meeting contract deadlines, and corruption. Bala et al. (2009)

categorized challenges faced by indigenous contractors as; government and firm-related. Government-

related challenges, according to Bala et al. (2009), are problems created either directly or indirectly by

the government and this has a significant impact on the development of the industry. The most severe

of these problems are (Bala et al. 2009): unfavorable business environment, weak economy,

corruption, lack of government patronage and patronage of foreign firms. Firm-related challenges are

problems internal to the firm and within the firm’s control (Bala et al. 2009). These problems Bala et

al. (2009) stressed, can inhibit the firms from developing core-capabilities from firm-specific

resources. The most severe are (Bala et al. 2009): lack of vision, lack of entrepreneurial skills, limited

technical expertise, limited plant and equipment, limited managerial expertise, limited trained

manpower and inadequacy of local materials, among others. Other factors that constitutes challenges

and affect contractors project planning are: non-availability of materials due to shortage or late



delivery; plant, equipment and machine breakdown; change in demand, designs and rush orders;

absenteeism of workers; and lack of communication between various functional areas of business

(Teslang, 2004 in Ubani, et al. 2010). The fast changing environments of the present era, according to

Chitkara (2012), also impose numerous time, cost, financial, legal, ethical, environmental, and logical

constraints to any projects. Moreover, inferences from other studies acknowledged by Aniekwu and

Audu (2010, p.1) reveal that the NCI is plagued by inefficient policies and practices, weak

institutions and an adverse business environment, complicated by complex social and cultural

practices, which make it difficult for indigenous contractors to perform efficiently.

Such problems obviously affect the performance of the contractors’ project planning in project

execution. Consequent to these problems, the indigenous contractors are unable to contribute

considerably, relative to their foreign counterparts in the country's construction industry (Bala, et al.

2009; Adams, 1997), which accounts for a substantial percentage of Nigeria’s Gross National Product

(GNP) and constitutes half of the government spending (Aniekwu and Audu, 2010). The outcome to

the industry are: low income generation and redistribution due to expatriates repatriating their profit

abroad, an insignificant value added to construction and local industries supplying construction

materials, and consistent contribution of 1% employment over the last decade as against the World

Bank’s average observation of about 3.2% in other developing countries (Aniekwu and Audu, 2010;

Idrus and Sodangi, 2010; Jinadu, 2007). These eventually prevent the country from fully benefitting

from the industry's contribution to economic growth (Aniekwu and Audu, 2010; Bala et al. 2009;

Adams, 1997). It is therefore imperative to assess their severity in indigenous contractors’ project

planning, so as to serve as a basis for proffering solutions and for curtailing their negative effects on

the economy.

APPLICATION AND PERFORMANCE OF PROCUREMENT SYSTEMS IN

NIGERIA Both traditional and non traditional procurement methods are currently embraced in Nigeria (Idoro,

2012b; Ikediashi, et al. 2010; Babatunde et al. 2010; A.D Ibrahim, 2008; Ojo, et al. 2006). According

to Ojo et al. (2006) direct labour was mainly used during the colonial era in the 1960s for the

execution of construction projects in Nigeria. And to date, it is still minimally used across the three

tiers of government (Federal, States and Local government), primarily for maintenance and new

works of minor nature (A. D. Ibrahim, 2008). Under the direct labour method, the client organization

utilises in-house staff to carry out works (design, construction or maintenance) directly (A. D.

Ibrahim, 2008). The huge wealth from the discovery of oil in Nigeria and the need for reconstruction

and rehabilitation works to mend the havoc resulting from a fratricidal war that ended in 1970, usher

into the NCI the use of the DBB procurement method (Ojo et al. 2006). This method was also used to

achieve the National Housing Policy (NHP) goal; a policy enacted into law in 1991 by the Nigerian

government to provide affordable accommodation for the country, in adherence to the campaign

launched by the United Nation (UN) tagged ''Housing for All by the year 2000.'' Though, the DBB

method was later discovered to bring long delays in project conception and delivery, thus leading to

high project cost (Ojo et al. 2006 citing Osemenam, 1992). The short comings of the DBB method in

Nigeria brought about the emergence of the non traditional procurement methods amongst which is

the design and build (DB) method (Ikediashi, et al. 2009 cited in Ikediashi, et al. 2010). The DB

option is one of the procurement systems that have gained prominence in the NCI (Babatunde et al.

2010). This system integrates the responsibilities of design and construction of the project to a single

contracting organization (Rashid et al. 2006). It is a single point responsibility and accountability of

the contractor to the client for execution of both the design and construction facets of a project (Harris

and McCaffer, 2005). However, the problem with using DB in Nigeria involves long delay and high

cost overrun (Idoro, 2012b).

The use of management contracting (MC) in Nigeria, spanned back to the era of the defunct

Petroleum (Special) Trust Fund (PTF) mass rehabilitation of key public infrastructure across the

country in 1994-1999 (Hassan, 2004 in A.D. Ibrahim, 2008). Management oriented contracts and

PPP/PFI are among the methods used in the execution of construction projects in metropolitan Lagos,



but not as much as the DBB method (Babatunde, et al. 2010). MC procurement approach was

introduced based on the conception that a contractor has more expertise to manage the design and

construction of a project (Rashid et al. 2006). As management consultant, the appointed contractor

does not carry out the design or construction of the project. His responsibilities cover preparing the

overall construction programme and work packages, steering these through the design stage,

recommending/appointing the works of (sub) contractors and securing their smooth integration

(Harris and McCaffer, 2005). A.D. Ibrahim and Musa-Haddary (2010) reported that the immediate

past and present governments at various levels/tiers in Nigeria encourage the introduction of public-

private partnerships (PPPs) as a way of promoting active private sector involvement in the provision

of public infrastructure and services, in an attempt to contain infrastructure deficits in the country.

This study could not trace any evidence of the use of the discretionary method in Nigeria. This

method allows the client to lay down a framework for the overall administration of the project within

which he/she has the judgment to use the most appropriate of all the procurement systems contained

within the other three categories, and it is the latest attempt to address relationship in construction

contracts (Mathonsi and Thwala, 2012; Harris and McCaffer, 2005). However, the NCI has not really

achieved the comparative advantages of using those procurement methods in Nigeria; this according

to Idoro (2012b), and Aniekwu and Audu (2010) could be attributed among other things to weak

institutions, poor practices and policies, and ineffective and inefficient planning. Idoro (2012b)

stressed that research studies reveal that planning has a considerable effect on the outcome of projects.

CONSTRUCTION PROJECT PLANNING

Planning is a systematic devise to develop, on a continuing basis, specific courses of action towards a

desired objective or goal in the most effective, efficient and economic manner (Eigege, 2005, p.11

citing Cummins, n.d.). In this light, planning has four goals in any proposed task (Krishnamurthy and

Ravindra, 2010, p.2): to offset uncertainty and change, to focus attention on objectives, to make

economic operations possible, and to assist managers to control. There are two main levels of

planning associated with construction projects: strategic and operational (see: Bamisile, 2008; Harris

and McCaffer, 2005). The interrelationship between activities, resources and times in most projects,

especially building, is such that unless they are carefully planned, resources can become overloaded

during operation (Baily, et al. 2008). The object of planning construction project therefore, is to pre-

determine how the project objectives will be achieved (Chitkara, 2012, p.54). The contractor use

planning as a tool for: achieving efficient and effective resource management by facilitating scope

management, decision making, resource organization and coordination, monitoring and control, and

sound financial management (cash flow forecasting) (Seeley, 1986). To achieve success in project

planning (Bennett, 2003): there must be a clear understanding of the project’s objectives, purposes,

scope and nature by both the client/owner and organisation responsible for carrying out the work and;

a relationship between the client/owner and the project delivery organisation must be established, with

clearly defined roles and responsibilities. It is paramount to note that any effort from the client or the

consultant short of the above will negatively affect the contractor's project planning.

RESEARCH METHODOLOGY The study used questionnaire survey method and was delimited to the northern geo-political zones of

Nigeria. The zones constitute 3 of the 6 geo-political zones of Nigeria (North-central, north-east and

north-west), and slightly more than half of Nigeria's 36 states and its Capital (19 states and Abuja),

representing almost 80% (744,249.08 sq. km) of Nigeria's total land size, and has a population of

over 75 million people, representing 54% of Nigeria's total population (NPC, 2010). Twenty-two (22)

challenging factors were identified in the literature review and interviews. These form the basis of

ranking the level of severity of the challenges covered in the questionnaire. Purposive sampling

technique was used to administer 300 questionnaires to indigenous contractors', consultants' and

public professionals in the north-central (Abuja), north-eastern (Bauchi/Gombe) and north-western

(Kano) geopolitical zones of Nigeria respectively. Indigenous contractors had 150, while, consultants

and public building professionals had 75 each. The choice of purposive sampling was informed by:

non availability of an authoritative sampling frame of active indigenous contractors in Nigeria (Muazu

and Bustani, 2004; Achuenu, et al.2000; Adams, 1997), and the ability to target specific professionals



and contractors who are best able to respond to the research issues (A.D. Ibrahim, 2011; Mugenda and

Mugenda, 2003). Subsequently, SPSS version 17 was used to run a number of tests: reliability test

using cronbach's Alpha, significance test, Spearman's coefficient of correlation (ρ) and, descriptive

statistics to analyze the data obtained.

The ranking was based on arithmetic mean value scores using Likert scales of 1-5. For interpretation

purposes, the mean score of 1 indicates “not severe”, 2 “least severe”, 3 “moderately severe”, 4

“severe” and 5 “extremely severe”. A lower mean value indicates a lower level of severity. Although

the use of arithmetic means suggest treating Likert scale-based data at an interval level of

measurement, the mean scores should not be deemed as “quantities” to show how much more severe

each factor is than the other, but as “indicators” to establish a rank order of severity for the factor

(Idrus and Newman, 2002 in A.D. Ibrahim, 2011). For instance (A.D. Ibrahim, 2011), a value of 3.30

leans more to ''severe''. Standard deviations (SD) of the responses were also used to measure the

variability of the responses; higher SD is interpreted as higher disparity or variation (A.D. Ibrahim,

2011). Kruskal Wallis H-test was used to test the null hypothesis that, the distribution of rankings is

not the same for the three groups at 5% level of significance. The null hypothesis was rejected as the

computed value of Kruskal Wallis H-test of 7.785 at 2 degree of freedom (df) is greater than the table

value of 5.991. This shows that there is consistency and agreement in the group rankings irrespective

of their different background. Spearman's ρ (rho) was used to test the coefficient of correlation

between the rank pairs of: contractors and consultants; consultants and public building professionals

and; contractors and public building professionals. The computed coefficients were: 0.999; 0.999; and

0.999 for the three pairs respectively, indicating a high degree of agreement among the groups.

Cronbach's alpha was used to measure the questionnaires construct coefficient of reliability (or

consistency). The test result shows the Cronbach's alpha for the 22 challenging factors to be 0.912,

signifying high reliability and consistency in a scale of 0-1; with a cut off value of 0.7 (Agwueleka,

2011; A.D. Ibrahim, 2011).

DATA PRESENTATION AND ANALYSIS

Questionnaire Response Rate

A questionnaire response rate of 38.98 % (69), 24.86% (44) and 36.16% (36.16) were obtained from

contractors, consultants and public building professionals respectively. The study attained an overall

questionnaires response rate of 59% (177). This response rate for this type of survey is higher than

other studies in the construction industry: 55.25% (Usman et al. 2012); 55.25% (Iro, et al. 2013); 47%

(Ibrahim, 2011); 35% (Adams, 1997).

Respondents' Organizational and Demographic Profile 39%, 36%, and 25% of the respondents are from Contracting firms, Public institutions (public

building professionals'), and consultancy firms respectively. Public institutions have 75% of the total

construction share in Nigeria (Iro, et al. 2013), which makes it a major client of the industry. This

representation therefore depicts the primary triads of parties involved in the management of

construction projects (Bennett, 2003): contractors; consultants; and clients', thus depicting adequate

participation for the study.

Table 1: Respondents' Years of Experience

Years Mid value(X) Frequency (F) FX

Less than 5 2.5 10 25

5-10 7.5 53 397.5

10-15 12.5 36 450

Over 15 15 78 1170

Total 177 2032.5

Mean Year of Experience = 11.50



Table 1 above shows the respondents’ years of experience in the construction industry and found the

mean year to be 11.50 years, this shows that the respondents have adequate experience to respond to

the research enquiry.

Assessment of Challenging Factors for Indigenous Contractors Project Planning

Table 2 and 3 below are individual groups and combined respondents' assessment respectively of

indigenous contractors challenging factors in executing project planning in project procurement

systems. Both tables (2 & 3) show the weighted means, standard deviations (SD) and ranks of the

respondents' assessments. Table 2 shows weighted means ranges of: 2.9697-4.2059; 3.0000-4.3182;

and 3.0794-4.1450 for contractors, consultants and public building professionals respectively. This

reveals that all the identified factors are severe in executing indigenous contractors' project planning

in their project procurement task. The three most severe factors for the individual groups are: late

honouring of payments certificates (4.2059), too many variations (4.1912), and delays (4.0169) for

contractors; late honouring of payments certificates (4.3182), design deficiencies (4.1136), and too

many variations (4.0000) and increase in prices of materials and labour (4.0000) for consultants; and

technical incompetence (4.1450), late honouring of payments certificates (4.0469) and too many

variations (4.0469) for public building professionals. The results show low values for the standard

deviations (SD); indicating high degree of consistencies in the respondents' opinions. Table 3 shows a

combined groups weighted mean range of 3.0343- 4.1761. This shows that all the groups are in

agreement that all the challenges are severe to indigenous contractors in implementing their project

planning. The three most severe challenges as revealed by Table 3 are: late honouring of payments

certificates (4.1761); too many variations (4.0914); and technical incompetence (3.9770). The results

also show low values for the standard deviations (SD); indicating a high degree of consistency in the

combined respondents' opinions.

CONCLUSION AND RECOMMENDATION This research aims at identifying Nigerian indigenous contractors’ project planning challenges and

their severity in building procurement systems, through literature review, interviews and questionnaire

survey in Northern Nigeria. Twenty two (22) challenges were identified from literature review and

interviews. Furthermore, the questionnaire survey result reveals that the 22 identified project planning

challenges are experienced to a severe degree by indigenous contractors in planning their project task

in any type of construction procurement systems in Nigeria. And as such should be taken seriously

and addressed accordingly. However, late honouring of payments certificates, too many variations,

and technical incompetence, were found to be the most severe challenges faced by Nigerian

indigenous contractors’ in project planning. The research further discovered that these identified

challenges faced by Nigerian indigenous contractors’ in executing project planning emanates from the

clients, consultants and the contractors as well. The research discovery corroborated the findings of

Aniekwu and Audu (2010), Bala et al. 2009, Adams (1997), Bustani and Muazu (2004) and,

Achuenu, et al. (2000). From the aforementioned findings the research therefore recommends: prompt

honouring of payments certificates by clients; curtailing of variations through exhaustive brief

evaluation, adequate feasibility study and appropriate scope definition of work, clients’ adheres to

project management procedure; and contractors should employ competent personnel, embark on

continuous training, develop entrepreneurial skills and adopt project management methodology.



Table 2: Individual Groups Rank Assessment

Factors

Contractors Consultants Public building professionals

S/N Mean SD Rank Mean SD Rank Mean SD Rank

1 Too many variations 4.1912 0.9345 2 4.0000 0.7559 3 4.0469 0.9332 3

2 Project complexity 3.7059 0.9152 8 3.6190 0.8540 10 3.6190 0.9576 12

3 Materials shortages or late delivery 3.9853 0.9541 4 3.8810 1.0407 5 3.9194 1.0291 6

4 Client's dissatisfaction 3.2826 1.2769 17 3.4419 1.3148 14 3.7188 1.1882 8

5 Claims 3.6176 1.1974 10 3.6744 0.8652 9 3.5556 0.9466 16

6 Poor weather conditions 3.1176 1.0724 19 3.2727 1.0199 18 3.3750 1.0616 19

7 Accidents on site 2.9697 1.0809 21 3.1818 1.0625 19 3.1094 0.9278 21

8 Plants, equipments & machine breakdown/inadequacy 3.6324 1.0914 9 3.5814 1.0518 12 3.6557 1.1088 10

9 Late honouring of payments' certificates 4.2059 0.8904 1 4.3182 0.9590 1 4.0469 0.8985 2

10 Disputes 3.7941 1.0867 7 3.4318 1.1493 15 3.5873 1.1164 13

11 Technical incompetence 3.868 1.1833 6 3.9070 1.2500 4 4.1450 1.1852 1

12 Organisational problems 3.5522 1.0340 13 3.6136 1.1855 11 3.5714 1.1175 14

13 Communications problem between functional areas of

business

3.2647 1.0597 18 3.4091 1.0852 16 3.5079 1.0453 18

14 Cultural influence 3.0147 1.2518 20 3.0000 1.1206 21 3.0794 1.1116 22

15 Poor work definition 3.5588 1.3646 12 3.5682 1.1289 13 3.6250 1.0764 11

16 Environmental regulations 3.5294 2.7289 14 3.3721 1.1132 17 3.2813 0.9835 20

17 Inadequate project documentation 3.6119 1.0438 11 3.8636 1.2122 6 3.5625 1.0370 15

18 Design deficiencies 3.8806 1.1081 5 4.1136 1.1251 2 3.9375 1.0965 5

19 Delays 4.0169 0.9190 3 3.8409 1.0103 7 3.7656 1.0800 7

20 Project risks & uncertainty 3.4746 0.9533 15 3.7045 0.9543 8 3.5238 0.9308 17

21 Absenteeism of workers/shortage of craftsmen 3.3559 1.2967 16 3.1591 1.1195 20 3.6984 1.1864 9

22 Increase in prices of materials/labour 3.3559 1.2967 16 4.0000 0.7559 3 3.9531 0.9500 4



Table 3: Respondents Combined Rank Assessment

S/N Factors Mean SD Rank

1 Late honouring of payment certificates 4.1761 0.9120 1

2 Too many variation 4.0914 0.8923 2

3 Technical incompetence 3.9770 1.2006 3

4 Design deficiencies 3.9600 1.1057 4

5 Materials shortage or late delivery 3.9360 0.9980 5

6 Delay 3.8743 1.0071 6

7 Increase in prices of materials /labour 3.7545 1.1002 7

8 Inadequate project documentation 3.6571 1.0866 8

9 Project complexity 3.6532 0.9124 9

10 Disputes 3.6286 1.1164 10

11 Plants, equipments & machine breakdown/inadequacy 3.6279 1.0820 11

12 Claims 3.6092 1.0297 12

13 Poor work definition 3.5852 1.2017 13

14 Organisational problem 3.5747 1.0979 14

15 Project risks & uncertainty 3.5542 0.9439 15

16 Client's dissatisfaction 3.4828 1.2618 16

17 Absenteeism of workers/shortage of craftsmen 3.4337 1.2229 17

18 Environmental regulations 3.4000 1.8785 18

19 Communication problems between functional areas of business 3.3886 1.0602 19

20 Poor weather condition 3.2500 1.0556 20

21 Accidents on site 3.0747 1.0201 21

22 Cultural influence 3.0343 1.1641 22

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CONSTRUCTION PROJECT PROCUREMENT Project Planning Challenges of Nigerian Indigenous Contractors.

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