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Appraising the use of labour-only procurement system for building construction in Nigeria

Author

Listed:
  • Akinkunmi Olutayo Gabriel

    (Dannok Cost Consultants, Flat 6, Block D, Arondizuogu Close, off Jere Street, Garki II District, Abuja, Nigeria)

  • Aghimien Douglas Omoregie

    (Post Graduate School of Engineering Management, Faculty of Engineering and Built Environment, University of Johannesburg, South Africa)

  • Awodele Oluwaseyi Alabi

    (Department of Quantity Surveying, Federal University of Technology, Akure, Nigeria)

Abstract

Labour-only procurement system is gaining fast popularity among construction clients who want to make savings by procuring materials themselves, leaving the contractor to provide only the labour needed. This study, therefore, appraised this procurement system by assess­ing its cost performance, its suitability, construction par­ticipant’s willingness to use it for subsequent projects and its merits and demerits. Using a survey design approach through the use of questionnaire and a pro forma, data were gathered from a total of 98 construction profes­sionals and contractors who have been involved in the use of this procurement system. Analyses of data were done using percentage, mean item score, Mann-Whitney U test and paired samples t-test. The study revealed that this procurement system is best for procuring residential buildings and minor alteration works. Construction participants who have used this system before are willing to still use it for subsequent works, as it delivers projects within budget and discourages short-changing of specifi­cations and standard by contractors. However, the need for the time commitment and reduction in contractor’s profit are its major disadvantages. For its cost perfor­mance, an overall cost saving of about 2% was discovered for the assessed 32 projects. The findings of this study will be beneficial to various interest groups such as clients and estate developers in selecting the right procurement option to use.

Suggested Citation

  • Akinkunmi Olutayo Gabriel & Aghimien Douglas Omoregie & Awodele Oluwaseyi Alabi, 2018. "Appraising the use of labour-only procurement system for building construction in Nigeria," Organization, Technology and Management in Construction, Sciendo, vol. 10(1), pages 1719-1726, May.
    • Handle: RePEc:vrs:otamic:v:10:y:2018:i:1:p:1719-1726:n:7
    DOI: 10.2478/otmcj-2018-0003
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    References listed on IDEAS

    as
    1. Zedan Hatush & Martin Skitmore, 1997. "Criteria for contractor selection," Construction Management and Economics, Taylor & Francis Journals, vol. 15(1), pages 19-38.
    2. Zedan Hatush & Martin Skitmore, 1997. "Evaluating contractor prequalification data: selection criteria and project success factors," Construction Management and Economics, Taylor & Francis Journals, vol. 15(2), pages 129-147.
    3. D. R. Ogunsemi & G. O. Jagboro, 2006. "Time-cost model for building projects in Nigeria," Construction Management and Economics, Taylor & Francis Journals, vol. 24(3), pages 253-258.
    4. Akintola Akintoye, 2000. "Analysis of factors influencing project cost estimating practice," Construction Management and Economics, Taylor & Francis Journals, vol. 18(1), pages 77-89.
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