Risk Factors Influencing Construction Procurement Performance in Nigeria

Abstract

One of the challenges facing construction procurement performance is the failure to determine the risk related factors limiting its success. These risk factors can cause a significant increase in the procurement cost leading to an increase in the overall project cost. The purpose of this study is to identify and evaluate the risk factors influencing construction procurement performance with a view to achieve the overall project performance. The objectives are to establish a relative significance index score for the most important risk factors limiting the procurement performance of the projects. A self administered questionnaire was employed to the construction industry professionals for responses. A total of 78 questionnaires were distributed to these professionals (architects, quantity surveyors, engineers, and contractors) but 62 were returned and analyzed using influential index and later ranked in order of importance. Results of the analysis indicate a disparity in terms of ranking of the factors influencing construction procurement performance. Corruption related risk, conflict of interest, ineffective project technical feasibility, and lack of commitment to transparency were found to be the most significant factors limiting construction procurement performance. Communication barriers and unconfidential tender evaluation process were found to be the low weighted risk factors. The findings can serve as a supportive mechanism for risks management in public construction procurement management. Therefore, construction procurement personnel at all levels of government may find this study relevant, while improving construction procurement performance in the country. It is recommended that construction procurement system should be focused on risks related to corruption, conflict of interest, and effective technical feasibility for improving the overall project performance.