The Role Of Legal Assessment On Tender Of Contracts In Nigeria

The Role Of Legal Assessment On Tender Of Contracts In Nigeria

Chapter One

Preface

Background Of The Study

It’s a incongruity that Nigeria is a rich country inhabited by the poor. Her poverty profile in statistical numbers according to a recent study indicates that Nigeria is poverty aboriginal. Poverty prevalence increased between 1980 and 1985 and between 1992 and 1996. The trend also shows that there has been perceptible drop in poverty rates between 1985 and 1992 and 1996 and 2004. In 2004, growth in population nearly equals growth in poverty since 1980.

Poverty has predominated in the pastoral area than in the civic area by63.3 and43.2 independently. The trends in poverty situations by zones show that in the northern part of the country, the North- East zone has a advanced prevalence of poverty followed by North- West and North- Central.

Out of over 160 million population at3.2 population growth rate,5.3 severance rate, real GDP growth rate of5.7, oil painting sector growth rate of4.31,non-oil sector growth rate of8.93, affectation rate of8.50, about half of the total population(68.7 million) live below poverty line( Ladan, 2002).

Corruption in the operation of public procurement and finance is a veritable area for loose practices. Every state must at colorful times land goods and services. This calls for request for contract practices, is that public officers expose to those with interest in the shot, the position of effects, this unfairness leads to a situation in which honest stab are overreached by smart abettors . The bidding process favors those who lest disposed to perform and the end- product suffers from medium running. veritably frequently, the favored stab latterly ask for contract price adaptation overhead. The eventual consequence is that the structures bring further and are frequently inadequately executed.

translucency and objective criteria should guide government procurements, contract awards and other fiscal operation of public finance.

All information about a tender or contract must be extensively circulate for all those who have an interest to prepare their tenders, consults with their tenders, consults with their financiers, engineers, structural masterminds and other advisers in order to enable them make informed flings. Time, being of substance, must be acceptable. numerous prospective stab have been cut by deficit of the time allowed for medications and have been stampeded into hasty evaluations leading to their incapability to perform the contracts or evaluations leading to their incapability to perform the contracts or poor performance or indeed abandonment of work on point. This is veritably common in developing countries. The terrain is littered with uncompleted systems performing from the original rush to bid. This is full exposure of all material data in order to grease the contracts award process, which would exclude bigwig snitchers, bigwig trading and other nasty practices.

Statement Of The Problem

Corruption in public procurement of goods and services and operation of government contracts have marred every sweats put by the civil government in establishing the procurement act 2007. This problem of corruption starts right from the assignation for contractors to peak tenders for government contracts( Eziokwu, 2008).

Legal assessment( through the clerical tender board units) of contracts which is a obligatory process every contractor biding for a government contract must pass through isn’t as effective as it ought to be. Despite the legal assessment on contractors and contracts, we still have cases of abandoned systems, giant systems and inadequately delivered systems. All these problems indicate a loophole hole in our legal systems and high rate of nepotism and favoritism in our procurement systems.

Objects Of The Study

The main end of this study is to examine the part legal assessment has played with respect to contract and tenders for contracts in Nigeria. Specific objectiveof the study are

To examine challenges militating against the effective assessment of contracts and tender for contracts in Nigeria.

To identify the part the clerical tender board unit( MTB) has played in promoting transparent and effective contract tender system for contracts in Nigeria.

To estimate the impact of legal assessment on contracts and tenders for contracts in Nigeria.

Exploration Questions

In- order to achieve the below objects, the experimenter formulated the following exploration questions

What are the challenges faced by the clerical tender board in the assessment of contracts and tenders for contracts in Nigeria?

What specific places have the clerical tender board( MTB) played in promoting transparent and effective tender system in Nigeria?

What impact has legal assessment on contracts and tenders for contracts had on the outgrowth of the design?

Exploration Thesis

The following null and alternate suppositions were formulated for the study

Ho The Ministerial Tender board( MTB) has not effectively carried out their task due to government hindrance and favoritism.

Hi The clerical Tender Board( MTB) has effectively carried out their task without government hindrance and favoritism.

Ho Shortfall in the legal assessment process of contract tenders is responsible for low quality construction systems in Nigeria.

Hi Space in the legal assessment process of contract tenders is responsible for low quality construction systems in Nigeria.

Significance Of The Study

The study will give perceptivity into the colorful challenges faced by contractors in the extending/ bidding process for government contracts. These heighted challenges will enable the government and other stakeholders to help develop a leveled playground that will enable both small and medium scale contractors to be suitable to bid for contracts effectively without fear. The study will also go a long way in recommending some programs that will enable the government to apply programs that will make our contract extending process more transparent and effective.

Compass Of The Study

The study will cover the part of legal assessment in contract tenders for companies in Nigeria, using the Ministerial Tender Board( MTB) unit of the Federal Ministry of Interior, Abuja as a case study.

Limitation Of The Study

Some of the people felt reticent to answer the questionnaire also many who answered didn’t comprehend how to answer the questionnaire duly. Certain vital questions relating enhancement have being largely ignored.

The experimenter wasn’t suitable to see all the preceptors,non-academic staff and scholars to partake studies on the content, due to busy schedules of the populations

Description Of Terms

1. Legal permissible or enforceable by being in conformity with the law of the land and the public policy; not condemned as illegal. See also legal and licit.

2. Law Law is a term which doesn’t have a widely accepted description, but one description is that law is a system of rules and guidelines which are executed through social institutions to govern geste . Laws are made by governments, specifically by their houses.

3. Finance This is the study of how people allocate their means over time under conditions of certainty and query. A crucial point in finance, which affects opinions, is the time value of plutocrat, which states that a unit of currency moment is worth further than the same unit of currency hereafter. Finance aims to price means grounded on their threat position, and anticipated rate of return. Finance can be broken into three different sub orders public finance, commercial finance and particular finance.

4. Tender A tender is a formal, structured assignation to suppliers to bid to supply products or services. In the public sector, such a process may be needed and determined in detail by law to insure that similar competition for the use of public plutocrat is open, fair and free from bribery and nepotism.

5. Project operation is the discipline of planning, organizing, motivating, and controlling coffers to achieve specific pretensions. A design is a temporary bid with a defined morning and end( generally time- constrained, and frequently constrained by backing or deliverables), accepted to meet unique pretensions and objects, generally to bring about salutary change or added value. The temporary nature of systems stands in discrepancy with business as usual( or operations), which are repetitious, endless, orsemi-permanent functional conditioning to produce products or services. In practice, the operation of these two systems is frequently relatively different, and as similar requires the development of distinct specialized chops and operation strategies.

5. 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.

6. Contract Planning According to Simmons( 2007), Contract planning is the process of totally and efficiently managing contract creation, prosecution and analysis for maximising functional and fiscal performance and minimising threat.

7. Cost Hudson( 1999) defined cost as the value of plutocrat that has been used up to produce commodity, and hence isn’t available for use presently. In business, the cost may be one of accession, in which case the quantum of plutocrat expended to acquire it’s counted as cost. In this case, plutocrat is the input that’s gone in order to acquire the thing. This accession cost may be the sum of the cost of product as incurred by the original patron, and farther costs of sale as incurred by the acquirer over and above the price paid to the patron. generally, the price also includes a mark- up for profit over the cost of product.

8. General contractor, association or existent that contracts with another association or existent( the proprietor) for the construction of a structure, road or other installation.

References

EziokwuS.A., Good Governance- Theory and Practice( 2008)- The Regent PublishingCo. Ltd, Abuja.

LadanM.T.( 2002) Civil Society and Government Relations- The Ideal. A paper presented at a one- day forum organized by the Civil Liberties Organization, North- West Zone, held in Kaduna.