Procurement systems and project
organization provide the framework for implementation and development of
projects. Procurement systems and project organizations are well
studied and established for major developments and in developed
countries in particular. When these systems are used in developing
countries for major commercial, social and infrastructure developments,
appropriate results are seldom achieved. This may be due to a variety of
factors, which include systematic, environmental, cultural, economic,
legal, political and social cultural amongst others. Notwithstanding
this, a major challenge in the establishment of appropriate and
sustainable procurement systems and project organizational models for
low-cost housing and infrastructure. The proper aims to propose a
generic model of procurement system and project organization based on
theory and practice as a basis for the implementation and development of
Strategies for the procurement of
building projects have not changed significantly in the last 25 years,
though time and cost overruns are still prevalent throughout the
industry (Smith and Love, 2001). In a response to reduce the incidence
of time and costs overruns, the disputes that may often arise, and the
likelihood of project success, alternative forms of procurement method
such as partnering and alliancing have been advocated (Love et al.
1998). Not all forms of procurement method, however, are appropriate for
particular project types, as client objectives and priorities
invariably differ (Skitmore and Marsden, 1988; Love et al. 1997). The
objectives and priorities of a client need to be matched to a
procurement system. To do this effectively, it is essential that the
characteristics of various procurement systems and selection methods
available are understood by clients and their advisors before a
procurement method is selected. In this report, the characteristics of
the most common procurement systems and methods are presented. In
conjunction with this research work the reader should also refer to the
material developed by the New South Wales Government (2005) ‘Procurement
Methodology Guidelines for Construction’ and the Western Australian
Department of Housing and Works ‘Local Government Procurement Guide’
1.1 Background of Study
Procurement has been seen to be process
of obtaining or buying supplies of something like fixed assets (land,
building, etc) especially for individual and government.
Therefore, procurement strategies has
become a fashionable term with our construction industry, practitioners
and researchers determines the overall framework and structure of
responsibilities within the process, it is also a key factor
contributing to the overall client satisfaction and project success.
Procurement strategies and their application is of important in our construction industry.
However, one must not be carried by
which ever method of procurement strategies proposed for a construction
project, the major issue is the different types of procurement are
contractual obligations, responsibilities and line of communication
between the parties. One thing to remember is that which ever method
that is used, the statutory duties of the professionals are always
distinct and mandatory. Hence the engagement of a builder in the
procuring contract is statutorily required and highly recommended
whichever procurement strategy that is adopted.
1.2 Statement of Problem
The general aim of study is to ascertain
by reviewing, evaluating and identifying how procurement strategies can
be applied in our Nigeria construction industry. Therefore, this issue
raised the researcher’s interest to know how procurement strategies can
be applied in our construction industry particularly Nigerian economy.
1.3 Purpose of the Study
The following list below are the core reason and purpose of this study which will be accomplished by the researcher.
- To determine what are the procurement strategies;
- To know its application in our Nigerian construction industry;
- To know the statutory duties of a builder in construction industry;
- To know what is construction industry.
1.4 Research Question
The research work is guided with same
research question, which will be administered and distributed among the
researchers area of study which are the respondents to this research
- What are the procurement strategies?
- Where can they be applied in Nigerian construction industry?
- How can we know the statutory duties of a building in our construction industry?
- What is construction industry?
1.5 Statement of Hypothesis
The researcher formed some of the
hypothesis which will be tested to support this study. The hypothesis
will be tested at 0.05 level of significance using the t-test method.
The research hypothesis are as follows.
- H1: The application of conventional procurement strategies is significant to the Nigeria construction industry
H0: The application of conventional procurement strategies is not significant to the Nigeria construction industry
1.6 Signification of the Study
It is hoped that the findings of the
study will help the construction industries in Nigeria reflect upon
various variables that influence the conventional procurement
strategies. In so doing, they could investigate the possibility of
introducing those variable to their industries which may consequently
lead to reducing the cost.
The findings of this study are therefore
expected to provide new knowledge about the factors behind conventional
procurement strategies with respect to Nigeria construction industry.
1.7 Justification of the Study
I want to justify this research work
based on the objectives and the significance of this research work, what
is within its coverage, this research work is with no doubt necessary
to be carried out. Because if done will greatly analyze conventional
procurement strategies variable and its application to the construction
company in Nigeria .
1.8 Scope of the Study
This research work covered a population
study of 58 respondents from Enugu, Enugu state. More to that, this
research work will be considering the conventional procurement
strategies and its application to the construction company. One research
hypothesis will be tested in light of the study, a descriptive method
of data analysis will be was employed in the study.
1.9 Definition of Terms
Procurement are the procedures used by the procuring entity to acquire goods, services and works.
refers to the mutual discussion and arrangement of the terms of a
transaction or agreement for the purpose of arriving at a common
understanding of contract essentials (e.g., technical requirements,
schedule, prices, and terms).