Evaluating Contractors Tender Process and Procedure in Nigerian Construction Projects (a Case Study of Enugu State)
CHAPTER ONE
Objectives of the Study
The aim of this research is to analyze and evaluate contractors’ tender process and procedures in Nigerian construction projects in Enugu State. The aim of this research can be broken down into the following objectives:
- To identify the factors affecting contractors’ decision to tender in Nigeria
- To examine the factors influencing tendering duration stipulations in Nigeria
- To understand the types of tender and tendering process in construction in Nigeria
CHAPTER TWO
LITERATURE REVIEW
Tender
Term tendering normally used on major maintenance projects. It may be awarded to a contractor to cover a range of different buildings in different locations. It is often limited to a fixed time scale, although the needs of the client may often require this to be extended. It is like a standing offer to undertake a loosely defined extends of work usually within a fixed time period. The type of work is usually specified and priced in a schedule of rates. The contractor will initially be offered the work to cover a number of different trades usually on the basis of prices contained in a schedule prepared by the client. Where the client supplies the rates for the work, the contractors are given the option of quoting a percentage addition or deduction from these rates depending upon their desire to win the project. The contractor offering the most advantageous percentage to the client will then be awarded the contract. An indication of the amount of work expected over the specified period of time will assist the contractors in the consideration of the percentage to be quoted.
Conventional Tendering Process
As the researcher mentioned before, this chapter will focus on conventional tender while the next chapter will focus on electronic tendering. Therefore readers will see clearly background on conventional tendering and electronic tendering. Conventional tendering process will involve pre-tender stage, tender advertisement stage, closing of tender, tender opening process, tender evaluation process and finally tender award.
Pre-tender Stage
At pre-tender stage, when the clients have an idea, client will appoint consultant to discuss further about the project. Consultant will do their job, advising, managing the tender and contract, and also transfer the idea into the drawing. At this stage client and consultants will brainstorming about the scope, time to complete and budget that client willing to allocate. Researcher believes that pre-tender stage is most crucial matter because it will initiate the next step of a project. If the pre-tender stage is failed, the project will not successfully complete.
Tender Advertisement
Tender advertisement also called tender notice. The conventional tender notice will advertise in local newspaper. In tender notice, basic requirement should be appearing are:
Title of the project
Class of contractor, head and subhead needed
Location, date, and time to obtain the tender document
Fees for tender document
Location, date and time for submission of tender document
Closing of Tender
In tender notice will mention the time and date of tender closing process. If the contractors fail to submit their bids within specific time and date, it considers the contractors refuse to bid for the tender. At that time also tender validity period is started. At this period, contractors can withdraw back their bids if they are no more interested to fight for the tender. Consultant use this period to make assessment and evaluation each of the offers.
Tender Opening and Evaluation Process
Quantity surveyors usually will handle tender opening process. In order to preserve the integrity of the competitive process, it is imperative that the evaluation of proposals is undertaken objectively, consistently and without bias towards particular suppliers. Tenders are usually evaluated against a pre-determined set of criteria. The evaluation of the tenders shall be prepared the soonest possible after the tender opening. A report prepared by the Quantity Surveyor will describe the findings of the said evaluation and it will be supported by tables and graphs. In the end, the Quantity Surveyor will recommend which tenderer, who in his opinion, is the most suitable to undertake to execute the project.
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
This chapter describes the research design, the target population and random sampling procedure, the instrument used, method of data collection and method of data analysis.
Research design
This is a descriptive study on evaluating contractors’ tender process and procedure in Nigerian construction projects (a case study of Enugu state).
A sample population will be used to collect primary data using the structured questionnaire and interview as research instrument.
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
This chapter is devoted to the presentation, analysis and interpretation of the data gathered in the course of this study. The data are based on the number of copies of the questionnaire completed and returned by the respondents. The data are presented in tables and the analysis is done using the Chi-Square test.
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATIONS
Summary of the Findings
The aim of this research is to analyze and evaluate contractors’ tender process and procedures in Nigerian construction projects in Enugu State. The aim of this research can be broken down into the following objectives:
- To identify the factors affecting contractors’ decision to tender in Nigeria
- To examine the factors influencing tendering duration stipulations in Nigeria
- To understand the types of tender and tendering process in construction in Nigeria
Findings from the study revealed the following:
There is a significant influence of tendering duration stipulations on the performance of construction organizations in Nigeria
There is a significant relationship between tender and tendering and the performance of construction organizations in Nigeria
CONCLUSION
This paper aims to evaluate contractor’s tender process and procedure in Nigerian construction projects (a case study of Enugu state).
According to the respective views of contractors, it has been established that there is a significant influence of tendering duration stipulations on the performance of construction organizations in Nigeria.
Tendering duration stipulated for public building projects can generally be considered adequate. Though subjective, most consultants and contractors attest to its sufficiency and do not see it as a problem that affects the submission/acceptability of tenders and eventual project success.
The result of the analysis also reveals that there is a significant relationship between tender and tendering and the performance of construction organizations in Nigeria. However, the study is inclined to conclude that the majority of contractors that expressed satisfaction with the current tendering durations may have been inexperienced or influenced by a lack of adequate pre-contract planning imperatives, incompetent planning officers and the business tendency to go over transactions fast and reliance on other criteria than merit to win contracts.
RECOMMENDATIONS
Based on the above findings, the following corrective propositions are advocated;
Establishment of construction regulatory bodies such as a Construction Industry Development Board or Contractors Regulatory Authority, National construction council that will be saddled with the function of registration of contractors and assessment of contractors‟ expertise in tendering for projects in order to regulate contracting practice and check mate quacks.
There should be concerted efforts on the part of the presidency and the Legislature to ensure that the yearly national budget is passed and approved early, to ease pressure on procuring entities or public clients to observe procurement benchmarks and award projects before the year in question runs out.
A review of the procurement Act (2007) to provide a section on required minimum tender durations for various cost categories of projects.
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