Are the public tertiary education building projects devoid of risks in the Nigerian construction context?

Purpose The non-performance of construction projects in meeting the set objectives has continued to draw researchers worldwide. Despite this, little attention is accorded to public tertiary education building projects in Nigeria. Therefore, on this background, this study aims to assess the perceptions of stakeholders on the level of occurrence of risk factors in the public tertiary education building projects (TEBP) to enhance the performance of these projects. Design/methodology/approach The study adopted a quantitative method of data collection via a questionnaire survey. In total, 452 questionnaires were administered to the respondents comprising client representatives, consultants (quantity surveyors, architects, services and structural engineers and builders) and the contractor. The respondents were involved in the conception and execution of TEBP across five public tertiary education institutions in Ondo State, Nigeria. Of 452 questionnaires, 279 were retrieved and found suitable for analysis, indicating a 61.73% response rate. The reliability analysis for the research instrument was 0.965 via the Cronbach α test, indicating the high reliability of the instrument used for the data collection. Moreover, the clusters of risk factors also had reliability values that ranged between 0.719 and 0.875. Findings The study found inflation, delayed payments in contracts, high competition bids, delay in work progress and occurrence of variations are the most frequently occurring risk factors in public TEBP. By contrast, difficulty to access the site, environmental factors and pollution were found to be low-weighted risks with the least likelihood of occurrence. The results of this study indicated the existence of significant differences in some of the risk factors in terms of the level of risk occurrence in TEBP. The risk factors were eventually clustered into eight major groups for TEBP. The post hoc comparisons using the least significant difference test also indicated differences between the contractors and consultants in the ranking of risks occurrence in TEBP, but no significant differences between clients/contractors and clients/consultants. Research limitations/implications The findings in this study are limited to the public TEBP procured via competitive tendering; therefore, the results might not be applicable when other procurement methods are being considered. Besides, the study classified the project participants based on organizations and not on the different ownership status of the projects, such as federal or state government-owned TEBP. However, the literature shows that likelihood of risk occurrence could vary due to the degree of project ownership. Practical implications The information provided with respect to the most frequently occurring risk factors would enhance the performance of public TEBP. Originality/value This study contributes to the existing body of knowledge on the subject within a previously unexplored context where insights were provided on the most frequently occurring risk factors on the public TEBP.

Influence of Competitive Tendering on the Performance of Devolved System of Governments in Kenya

The purpose of study is to examine the influence of competitive tendering on the performance of devolved systems of governments in Kenya. A cross-sectional approach is adopted with primary data collected. The data yielded a response rate of 229 from 10 devolved systems of governments in Kenya, which were drawn mainly from supply chain and finance departments. The data collected was put through rigorous statistical analysis to test content validity as well as reliability. Further, a simple linear regression model was used to test relationships between competitive tendering and the performance of devolved systems of governments in Kenya. The finding proposes that successful execution of competitive tendering increases the performance of devolved systems of governments. The use of the competitive tendering method assists governments in attracting a huge pool of suppliers where they can choose their potential suppliers competitively and thus instil public confidence in the accountability of public resources. The study provides relevant knowledge in formulating a policy framework on efficient and effective management of the public procurement process in devolved systems of governments. Also, the study shows that if the competitive tendering method is properly embraced, it will increase the performance of devolved systems of governments. However, the study limited only to the competitive tendering method and yet it can only be applied in certain thresholds. Thus, a similar study can be conducted in the same sector but using other alternative procurement methods. The study provides a holistic approach in the application and use of the competitive tendering methods for improving the performance of devolved systems of governments. Also, the identified gaps provide future direction in research and encourage the adoption of the competitive tendering method as a way of promoting accountability of the use of public resources in the devolved systems of governments.

A Case Study of a Negotiated Tender within a Small-to-Medium Construction Contractor: Modelling Project Cost Variance

This research explores the failure of competitively tendered projects in the UK construction industry to procure the most suited contractor(s) to conduct the works. Such work may have equal relevance for other developed nations globally. This research seeks to teach clients and their representatives that “lowest price” does not mean “best value”, by presenting a case study of a successfully negotiated tender undertaken by a small-to-medium enterprise (SME) contractor; SME studies are relatively scant in academic literature. By applying the “lessons learnt” principle, this study seeks to improve future practice through the development of a novel alternative procurement option (i.e., negotiation). A mixed philosophical stance combining interpretivism and pragmatism was used—interpretivism to critically review literature in order to form the basis of inductive research to discuss negotiation as a viable procurement route, and pragmatism to analyse perceptions of tendering and procurement. The methods used follow a three-stage waterfall process including: (1) literature review and pilot study; (2) quantitative analysis of case study data; and (3) qualitative data collection via a focus group. Our research underscores the need to advise clients and their representatives of the importance of understanding the scope of works allowed within a tender submission before discounting it based solely on price. In addition, we highlight the failings of competitive tendering, which results in increased costs and project duration once the works commence on site. These findings provide new contemporary insight into procurement and tendering in the construction industry, with emphasis on SME contractors, existing relationships, and open-book negotiation. This research illustrates the adverse effects of early cost estimates produced without first securing a true understanding of project buildability and programming. Our work concludes with a novel insight into an alternative procurement option that involves early SME contractor involvement in an open-book environment, without the need for a third-party cost control.

Modeling a Multi-Criteria Decision Support System for Prequalification Assessment of Construction Contractors using CRITIC and EDAS Models

Contractor prequalification assessment in the construction industry is an essential part of the project development process because contractors play a pivotal role in the extension of projects and resources. The main objective of the present study is comprised prequalification assessment for classifying contractors by applied the EDAS method for recognizing the contractors' potential before competitive tendering and obtaining bids. First, an inclusive, detailed list of 56 sub-factors under 5 main factors for project prequalification was compiled following a thorough literature review, and review of contractors by experts of Bandar Imam Khomeini municipality who already have done projects with contractors. Second, used the CRITIC method for obtained the weighing and importance of each factor. Third, classified the contractors by applied the EDAS system for recognizing the contractors' potential before competitive tendering and obtaining bids. Finally, the prequalification assessment process was developed to obtaining the rank of each contractor and help the stakeholders to select the right contractors. The effectiveness of the present approach was tested by applying it to a case study of the prequalification assessment of four construction companies' in Bandar Imam Khomeini municipality, Khuzestan, Iran. It is worth mentioning that the prequalification assessment by the proposed approach is approved by the project stakeholders and is consistent with their expectations. It can be concluded that based on relevant ranking and weighing of companies that procedure can be extended to the same studies in this regard, and the contribution of the present study is to propose a support system for prequalification and identification of contractors' ability, before assigning projects to companies for success in projects.

Supplier satisfaction with public sector competitive tendering processes

Purpose This paper aims to explore the supplier perspective on competitive tendering processes and build on an increasing and developing interest in supplier satisfaction with public sector procurement activities. Design/methodology/approach Qualitative data was collected from 20 interviews with a variety of suppliers to the UK public sector, which was then analysed using Nvivo and a series of empirically supported propositions developed. Findings The findings are combined into an integrated supplier satisfaction model, which explains how a multi-layered set of expectations (past and ideal) and quality dimensions (fairness, ambiguity, unnecessary information, tender focus, relationship irrelevance, unresponsiveness, outcome success) lead to dissatisfaction. This paper also establishes the implications of these judgments (non-response, poor quality and relationship impact) and that they are impacted by comparison to alternatives. Practical implications Supplier dissatisfaction can have serious ramifications for public sector buying organisations by reducing the pool of applicants, creating relationship barriers and a disconnect between the tender and the eventual services provided. This paper gives empirically derived advice to managers and policymakers on how to avoid these issues. Social implications Ensuring that as wide a pool of possible suppliers can respond to tender requests, means that the services that are provided by the public sector can make the most effective and efficient use of available resources. In addition, small to medium-sized enterprises may be encouraged to overcome their feelings of dissatisfaction and respond more frequently and readily to tender requests. Originality/value This paper contributes to the field of public sector procurement and in particular that which looks at increasing supplier satisfaction, by developing a supplier satisfaction model based on supplier generated data, which uses disconfirmation theory to explain the dynamics of how individuals make judgments by comparing perceptions of performance with a multi-layered set of expectations. This paper identifies service quality dimensions that influence satisfaction judgments and the implications of these judgments.

Assessing and Measuring: On Quality in Development-led Archaeology

The concept of quality has become the subject of inten- sive discussion in almost all aspects of society in recent years and development-led archaeology is no exception. Results showing a lack of quality have been observed both in countries which choose to use systems based on competitive tendering and in those where development- led archaeology is conducted solely by official institu- tions. In this article the authors discuss the essential elements for achieving good quality in development- led archaeology as required by the Swedish Heritage Act. They also discuss how Swedish development-led archaeology can be enhanced and what is needed to achieve and maintain quality.

Assessing the cost of competitive tendering in Ghana using transaction cost theory

PurposeThe purpose of this study was to determine the transaction cost (TC) contractors incur when tendering for a project as well as establish a correlation between the TC of tender and tender amount of projects procured through the national competitive bidding procurement method.Design/methodology/approachThe research draws extensively documentary analysis, observation and interviews to collect cost data on 14 different tenders submitted by a D1/K1 contractor. Using TC theory, the data are analyzed and the actual cost is determined. Further, Spearman rank correlation is employed to establish a relationship between tender price (TP) and the cost of tender by the aid of Statistical Package for Social Sciences.FindingsThe research developed a tender preparation conceptual framework highlighting the components of TC in competitive tendering in Ghana and also revealed that, apart from the emotional and psychological costs, contractors in Ghana incur approximately Gh₵ 4,625 (US$ 925)–Gh₵ 2,520 (US$ 504) to prepare and submit a competitive tender. In relation to the tender figure, the TC of tender in Ghana ranges from 0.05% to 0.65% and an average of 0.33%. Also, there is an inverse correlation between TP and the percentage cost of tender.Research limitations/implicationsThe research relied on 14 competitive tenders and also limited to public sector works. Findings from the study should therefore be applied with caution.Originality/valueThis study is the only known research that has focused on assessing the TC of public sector competitive tendering from a contractor's perspective and within a developing sub-Saharan African context.

The influence of dissensus on governmentality during competitive tendering: A longitudinal field study

This paper investigates the ways in which dissensus has influenced governmentality during a longitudinal process of competitive tendering of public services. Data are from a field study conducted in the field of public care for the elderly from 2007 to 2015 in Finland. Public elderly care in Finland is under the responsibility of each municipality. Municipalities have local autonomy; including municipal taxation right. In addition to municipal tax revenues, the central government finances each municipality on a per capita basis annually. Every municipality is run by democratically elected local politicians. The elected politicians have the power to appoint leading public managers in charge of each public service sector. Findings showed that political dissensus arose from a lack of appropriate policies of governing for performance during a new and international competitive tendering process. Managerial dissensus arose from a low-level professional experience and a lack of appropriate technologies to deal with highly advanced profit-making companies competing for entry and expansion into a prestigious public elderly care market. In consequence, costs of outsourced services continued to increase. As time passed, however, political and managerial dissensus improved the process of governing for performance; key decision-makers took reactive measures to limit procurement risks in future competitive tendering processes. The potential contribution is to show the relevance of dissensus when it motivates public managers and political decision-makers to improve specific programs, techniques, and strategies used to manage public services