Assessment Of Factors Affecting Contractors Tender For Construction Projects In Nigeria
Chapter One
Preface
Background Of The Study
Shash( 1993) explains that a construction company can either negotiate with the customer or use a competitive extending process to gain a contract. Fu and Drew( 2002) suggest that competitive extending is the most common system used for contractor selection. In competitive extending process, a customer selects a figures of contractors to give for the proposed design. The named contractors must to decide whether to give or not tender. The contractors need to submit an estimated cost to execute the design at hand, if they intend to give. The customer would elect the contractor who submitted the stylish cost for executing the design.( Shash 1993,p. 111). thus the decision to give is the first step that contractors need to consider.
There are colorful factors that need to be considered by the contractors in order to make the decision to give or not. The decision is largely affiliated to the specific design and macro terrain. It’s hard to make a decision in a limited time by the operation platoon. The decision generally is made on the base of experience, suspicion and suppositions.( Egemen and Mohamed 2007,p. 1373)
There are numerous experimenters that have discovered the factors that affect the tender/ no tender process. Unfortunately, there has not been any analogous exploration systems carried out in Nigeria. likewise, during the global profitable recession, construction related conditioning are dropped significantly. Construction contractors†Ÿ original tender/ no tender decision making criteria may be changed.
Problem Statement
Designing and enforcing an effective tender is a huge challenge for utmost contractors who seek government contracts in Nigeria. A study conducted by Obuji( 2003) in some West African countries including Nigeria, revealed that some small scale contractors aren’t favoured during a extending process by prospective guests because, they neglect colorful factors that affect the success and failures of submitting a tender for a contract. Some contractors don’t structure and draft their tenders in an applicable manner; hence their chance of being contracted is reduced.
Construction assiduity has complexity in its nature because it contains large number of parties as guests, contractors, advisers , stakeholders, shareholders, controllers and others. Construction systems in Nigeria suffer from numerous problems and complex issues in performance because of numerous reasons and factors. This design is veritably important to identify and to estimate the main factors affecting contractors tenders in construction systems in Nigeria. The practices concerning with Tenders similar as time, cost, design proprietor satisfaction and safety rosters will be anatomized in order to know the main practical problems of contractors who don’t win tenders as well as practical results to help enhance the chances of our indigenous contractors in Imo state in winning Civil government and foreign contracts.
Objects Of The Study
The end of this exploration is to dissect and assess the original factors that regard for the success or failure of tenders submitted by contractors when applying for a construction design in Imo State. The end of this exploration can be broken down into the following objects
To identify the challenges faced by contractors when applying for contracts in Nigeria
To assess the factors that affect contractors tender for construction design.
Exploration Questions
What challenges do contractors in Nigeria face when submitting tenders for systems contracts?
What are the factors that affect contractors tender for construction systems?
Significance Of The Study
This exploration will help contractors come apprehensive of what the factors which need to be considered when they intend to submit tenders for different systems. This exploration will also give the information that would be used by any contractor to produce a competitive bidding strategy.
This study will also give a clear sapience into the colorful ways in which profit and effectiveness from contracts and constricting can be increased and how the challenges facing contract extending can be duly dived . The study also gives a clear sapience into the colorful factors affecting tenders and their goods on contractors effectiveness and chances of winning a contract in Nigeria. The findings and recommendations of the experimenter will help in erecting a strong and better contract policy and extending guideline for contractors, especially small scale contractors in Imo State other construction companies in Nigeria.
Thesis Expression
Statements of thesis for the study are
Ho There’s no significant relationship between factors that affect contractor tender and contractor chances in winning a construction design.
Hi There’s a significant relationship between factors that affect contractor tender and contractor chances in winning a construction design.
Compass Of Study
This exploration focuses substantially on the assessment of the factors that affect tenders for construction systems, using construction companies and private contractors in Imo State as case study. Results and recommendations may not be used to generalise other construction companies or contractors in other corridor of Nigeria, as the experimenter couldn’t cover a wider compass due to fiscal and time constraints.
Grounded on the findings of this study other possible researchable areas may include studies on the colorful goods of other aspects of contracts similar as contract laws in Nigeria and contract operation and control.
Limitation Of The Study
The only limitation faced by the experimenter in the course of carrying out this study was the detention in getting data from the colorful repliers. utmost repliers were reticent in filling questionnaires administered to them due to their busy schedules and nature of their work. The experimenter set up it delicate to collect responses from the colorful repliers, and this nearly hampered the success of this study.
Description Of Terms
Tender According to Simmons( 2002), a tender refers to an offer( generally by a contractor or a seller) to take over a job or force goods.
Contract Erikson( 2002) defined Contract as an agreement that creates an obligation binding upon the parties thereto. The rudiments of a contract are as follows( 1) collective assent;( 2) a legal consideration, which in utmost cases need not be financial;( 3) parties who have legal capacity to make a contract;( 4) absence of fraud or constraint; and( 5) a subject matter that isn’t illegal or against public policy.
Contractor According to Simmons( 2002), a contractor refers to an association or existent that contract with another association or existent( the proprietor) for the construction of a structure, road or other installation.
Construction/ Projects In the fields of armature and civil engineering, construction is a process that consists of the structure or assembling of structure. Far from being a single exertion, large scale construction is a feat of mortal multitasking. typically, the job is managed by a design director, and supervised by a construction director, design mastermind, construction mastermind or designarchitect. For the successful prosecution of a design, effective planning is essential. Involved with the design and prosecution of the structure in question must consider the environmental impact of the job, the successful scheduling, budgeting, construction point safety, vacuity of structure accoutrements , logistics, vexation to the public caused by construction detainments and bidding, etc. Marshall( 2001)
References
Erikson O.U.,( 2002) Contract Planning and development in a DepressedEconomy.UnpublishedM.Ed. Discussion Submitted to Florida University. Florida
ObujiP.I.,( 2007). Â Principle and practice of Contract Feasibility Studies In Nigeria( Aba Springfield publishers, 2006)p. 31
Simmons P.K.( 2007) Understanding Feasibility and Viability Analysis New York Westside Publishers
Leave a Comment