2017•Organization Technology and Management in Construction An International JournalOpen access

Cost and time performance of traditional-, direct labour- and management-procured public projects in Ondo State, Nigeria

Douglas Omoregie Aghimien, Olufemi Osanyinro, Taiwo Fadeke Adegbembo

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Abstract

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.

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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.

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Available abstract

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.

Key concepts: Procurement, Business, Cost overrun, Government (linguistics), Operations management, Order (exchange), Risk analysis (engineering), Finance

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