CHAPTER ONE

INTRODUCTION

1.1. Background Of Study

Project procurement has been described as an organized methods or process and

procedure

for clients to obtain or acquire construction products(Ashworth and Hogg 2007).

Ashworth and Hogg (2007) further posited that procurement of construction project is

vast in scope because it involves the gathering and organizing of myriads of separate

individuals, firms and companies to design manage and build construction products

such as houses, office buildings, shopping complex, roads, bridges etc. for specific

clients either private or public sector.

Masterman (2002), described project procurement as the organizational structure

needed to design and build construction projects for a specific client. It is in a sense very

true because the process of “obtaining” a building by a client involves a group of

people who are brought together and organized systematically in term of their roles,

duties, responsibilities and interrelationship between them.

Apart from the traditional approach, there are now other “fast-tracking” or innovative

procurement systems used by the construction industry worldwide. The different

procurement

systems differ from public to private sectors in terms of allocation of responsibilities,

activities sequencing, process and procedure and organizational approach in project

delivery. These differences have invariably affected the project performance. Project

performance has been defined as “the degree of achievement of certain effort or

1
undertaking”. It relates to the prescribed goals and objectives which form the project

parameters(Chitkara 2005). From project management perspective, it is all about

meeting or exceeding stake holders’ needs and expectations from a project. It

invariably involves placing consideration on three major project elements i.e. time,

cost and quality.

There are many other factors that determine project success, but the focus of this

research is

on the two critical parameters of project performance i.e. cost and quality. The aim of

this

research is to assess the impact of the different procurement systems on project

delivery both in public and private sector. Since there are many different project

procurement systems, it is appropriate for the purpose of this research to limit it to the

common ones practiced here in Lagos State Nigeria i.e. traditional system, design and

build, management contracting, and construction management.

A procurement system (or sometimes known as delivery system) “is an organizational

system that assigns specific responsibilities and authorities to people and

organizations, and defines the various elements in the construction of a project” (Love

et al. 1998).

Procurement systems can be classified as:

• Traditional (separated);

• Design and construct (integrated);

• Management (packaged); and

• Collaborative (relational)

Sub-classifications of these systems have tended to proliferate in a response to market

2
demands. Holt et al. (2000) state that there are so many variables to each of the

commonly adopted procurement strategies, notwithstanding the commonly adopted

nomenclature, there is a very wide range of strategies available. However, there are a

range of commonly adopted procurement system and contract methods used by public

and private sector to influence construction project delivery.

In many countries the construction industry has however, attracted criticism for

inefficiencies in outcomes such as time and cost overruns, low productivity, poor quality

and inadequate customer satisfaction (Latham, 1994, Egan, 1998, Ericsson, 2002, Chan

et al., 2003). Practitioners, researchers and society at large have, therefore, called for a

change in attitudes, behavior and procedures in order to increase the chances for

construction projects to be successfully delivered and result in improved end products

(Love et al., 2000, Dubois and Gadde, 2002). An effective and efficient procurement

system is important in evaluating the performance of government (Hunja., 2001). This is

because deficiencies in procurement system contributed to huge losses in public and

private procurement. For instance, the deficiencies led to poor public building projects

and other physical infrastructure (Akech, 2003), likewise in private procurement system.

1.2. Statement Of The Problem

This study tends to examine the major impact of public and private sector procurement

system on construction project delivery. In many countries the construction industry

has however, attracted criticism for inefficiencies in outcomes such as time and cost

overruns, low productivity, poor quality and inadequate customer satisfaction (Latham,

1994, Egan, 1998, Ericsson, 2002, Chan et al., 2003). Practitioners, researchers and

society at large have therefore, called for a change in attitudes, behavior and procedures

3
in order to increase the chances for construction projects to be successfully delivered

and result in improved end products (Love et al., 2000, Dubois and Gadde, 2002). An

effective and efficient procurement system is important in evaluating the performance

of government (Hunja., 2001). This is because deficiencies in procurement system

contributed to huge losses in public and private procurement. For instance, the

deficiencies led to poor public building projects and other physical infrastructure (Akech,

2003), likewise in private procurement system.

1.3. Research Questions

The following questions are essential to the study;

a. What are the various procurement systems employed for project delivery?

b. What are the impacts of procurement systems on construction project delivery?

1.4. Aim And Objectives Of The Study

The aim of the study is to examine the impact of procurement system on construction

project delivery to achieve this aim, the following objectives are set;

a. Identify the various procurement methods for construction projects.

b. Examine the impact of the procurement system on construction project delivery.

1.5. Significance Of The Study

The study will contribute valuable knowledge to Construction industry policy makers;

the public and private sector especially may use the study to develop or improve their

policy on building project procurement; improve contractor selection and; other

researchers will use the same in future research for literature review and for further

4
studies.

This study’s result and recommendations will contribute to improved procurement work

manual, which shall be simulated to current public and private sector procurement,

works policy manual.

1.6. Scope And Limitation

This study concentrates on the various procurement system as stipulated in the Public

and private sector identifying the impact of these systems on the delivery of

construction project limited to lagos state.

1.7. Definition Of Terms

The following are the definitions of the basic technical terms used in this study:-

Procurement: Refer to the process of acquiring goods, works and services in the award

of contracts under which payments are made in the implementation of projects

(Hibberb, Merrifield, & Taylor, 1990).

Project Delivery: is measured both in terms of product success (objectives and

purposes) and project management success (input and output) (Bacarini, 1999).

Construction: is defined as ʹthe mobilization and utilization of capital and specialized

personnel, materials, and equipment to assemble materials and equipment on a specific

site in accordance with drawings, specifications, and contract documents prepared to

serve the client (Merrit, Loftin, & Ricketts, 1996).

Procurement System: “is an organizational system that assigns specific responsibilities

and authorities to people and organizations, and defines the various elements in the

construction of a project” (Love et al. 1998).

5
Public Sector: is that portion of an economic system that is controlled by national, state

or provincial, and local governments.(Areas of the economy controlled by the state are

referred to as the Public Sector).

Private Sector: is the part of the economy, sometimes referred to as the citizen sector,

which is run by private individuals or groups, usually as a means of enterprise for profit,

and is not controlled by the State.

6
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

In this chapter, the researcher reviewed work done by other researchers on the subject

under study. The chapter is organized in several broad areas, which include definitions,

difference between public and private sector procurement, factors influencing

procurement system, construction project procurement system, Challenges in public

and private procurement systems in Lagos state.

2.2 Definitions Of Procurement System And Project Delivery

Procurement system is broadly defined as the purchasing, hiring or obtaining by other

contractual means of goods, construction works, and services (Hibberb, Merrifield, &

Taylor, 1990).

Project delivery refers to the overall processes by which a project is designed,

constructed, and/or maintained (Bacarini, 1999). In the public and private sector, this

7
has traditionally entailed the almost exclusive use of the design-bid-build system,

involving the separation of design and construction services and sequential

performance of design and construction. In recent years, however, the public and

private sector has begun experimenting with alternative methods to improve the speed

and efficiency of the project delivery process.

2.3 Differences Between Public And Private Sector Procurement System

By their very nature public and private sector businesses are very different organizations

operating to fulfill different objectives. While public sector businesses are under a

mandate to operate efficiently their primary objective is public good. Conversely private

enterprises generally exist to generate a profit and return for shareholders.

Both public sector and private sector procurement professionals share similar demands,

constraints and responsibilities such as proving value for money, being accountable for

spending decisions and adherence to procurement and financial policies. However

there are several key distinctions procurement professionals identify between working

in public and private enterprise which this article will explore.

 Agility: Procurement professionals working in the private sector often must be

more agile and able to respond to change quickly.

 A focus on the bottom line: As private enterprises focus on generating profit,

procurement professionals often are constrained by meeting cost reduction

targets.

 Number of Stakeholders: Public sector procurement professionals have a larger

group of stakeholders to report to including tax payers, members of parliament,

8
 clients and vendors.

 Bureaucracy: Working for a government organization or public enterprise entails

dealing with an increased level of red tape or rules which must be adhered to in

order to complete a task. Procurement professionals working in the public sector

have to place greater emphasis on following policy and acting transparently. As

they are acting on behalf of the government they must be seen to be acting

ethically.

2.4 Factors Influencing Procurement System

For any given project a client can adopt a collaborative strategy, such as partnering

irrespective of the procurement method used. Such a strategy has been often used by

clients who have series of projects to undertake. The performance of both contractors

and consultants can be monitored using pre-defined indicators for each of the projects

they are involved with and then compared. This approach is particularly useful to

monitor and evaluate disbursement of incentives where appropriate (Morledge et al.,

2006). Once the primary strategy for a project has been established, then the following

factors should be considered when evaluating the most appropriate procurement

strategy (Rowlinson, 1999; Morledge et al. 2006):

• External factors – consideration should be given to the potential impact of economic,

commercial, technological, political, social and legal factors which influence the client

and their business, and the project team during project’s lifecycle. For example,

potential changes in interest rates, changes in legislation and so on.

• Client resources – a client’s knowledge, the experience of the organization with

procuring building projects and the environment within which it operates will influence

9
the procurement strategy adopted. Client objectives are influenced by the nature and

culture of the organization. The degree of client involvement in the project is a major

consideration.

• Project characteristics – The size, complexity, location and uniqueness of the project

should be considered as this will influence time, cost and risk.

• Ability to make changes – Ideally the needs of the client should be identified in the

early stages of the project. This is not always possible. Changes in technology may

result in changes being introduced to a project. Changes in scope invariably result in

increase costs and time, especially they occur during construction. It is important at the

outset of the project to consider the extent to which design can be completed and the

possibility of changes occurring.

• Cost issues – An assessment for the need for price certainty by the client should be

undertaken considering that there is a time delay from the initial estimate to when

tenders are received. The extent to which design is complete will influence the cost at

the time of tender. If price certainty is required, then design must be complete before

construction commences and design changes avoided.

• Timing – Most projects are required within a specific time frame. It is important that

an adequate design time is allowed, particularly if design is required to be complete

before construction. Assurances from the design team about the resources that are

available for the project should be sought. Planning approvals can influence the

progress of the project. If early completion is a critical factor then design and

construction activities can be overlapped so that construction can commence earlier on

-site. Time and cost tradeoffs should be evaluated.

2.5 Construction Procurement Systems

10
A number of different procurement routes and options exist in the construction

industry Davis et al., (2008):-

 Traditional (Design-bid-build) Procurement

 Design and Construct Procurement

 Management Procurement

 Public private partnership Procurement

2.5.1 Traditional Procurement

In the traditional approach, the employer accepts that design work will generally

separate from construction, consultants are appointed for design and cost control, and

the contractor is responsible for carrying out the works Davis et al., (2008). This

responsibility extends to all workmanship and materials, and includes all work by

subcontractors and suppliers. The contractor is usually appointed by competitive

tendering on complete information, but may if necessary be appointed earlier by

negotiation on the basis of partial or notional information.

The traditional method, using two-stage tendering or negotiated tendering, is

sometimes referred to as the ‘Accelerated Traditional Method’ – this is where the

design and construction can run in parallel to a limited extent Davis et al., (2008). Whilst

this allows an early start on site, it also entails less certainty about cost. There are three

types of contract under the traditional procurement method:

1. Lump sum contracts - where the contract sum is determined before construction

starts, and the amount is entered in the agreement.

2. Measurement contracts – where the contract sum is accurately known on

11
completion and after re-measurement to some agreed basis.

3. Cost reimbursement – where the contract sum is arrived at on the basis of the actual

costs of labour, plant and materials, to which is added a fee to cover overheads and

profit.

Lump sum

Davis et al., (2008) stated the contractor undertakes to carry out a defined amount of

work in return for an agreed sum. This can be a fixed amount not subject to

recalculation, in which case there would be no opportunity for the employer to make

variations. The sum is likely to be subject to limited fluctuations, usually to cover tax etc

changes not foreseeable at the time of tendering. The sum may be subject to

fluctuations in the cost of labour, plant and materials – the so called fluctuations

provision. Recovery may be use of a formula, or by checking invoices.

Lump sum contracts with quantities are priced on the basis of drawings and a firm bill

of quantities. Items which cannot be accurately quantified can be recovered by an

approximate quantity or a provisional sum, but these should be kept to a minimum El

Wardani (2004).

Lump sum contracts ‘without quantities’ are priced on the basis of drawings and

another document. This may simply be a specification of a descriptive kind, in which

case the lump sum will not be itemized, or one that is detailed to the extent that the

contract sum is the total of the priceable items. The job might be more satisfactory

described as a ‘Schedule of Works’, where the lump sum is the total of the priced items.

In the latter cases, an itemized breakdown of the lump sum will be a useful basis for

valuing additional work. Where only a lump sum is tendered, then a supporting

‘Schedule of Rates’ or a ‘Contract Sum Analysis’ will be needed from the tenderer.

12
Tenders can be prepared on the basis of notional quantities, but they will need to be

replaced by firm quantities if it is intended to enter into a ‘with quantities’ lump sum

contract.

Measurement

Measurement contracts are also referred to as ‘re-measurement contracts’ Davis et al.,

(2008). This is where the work which the contractor undertakes to do cannot for some

good reason be accurately measured before tendering. The presumption is that it has

been substantially designed, and that reasonably accurate picture of the amount and

quality of what is required is given to the tenderer. Probably the most effective

measurement contracts, involving least risk is to the employer, are those based on

drawings’ with approximate quantities.

Measurement contracts can also be based on drawings and a ‘Schedule of Rates’ or

prices prepared by the employer for the tenderer to compete. This type of contract

might be appropriate where there is not enough time to prepare even approximate

quantities or where the quantity of work is very uncertain. Obviously the employer has to

accept the risk involved in starting work with no accurate idea of the total cost, and

generally this type of contract is best confined to small jobs.

Cost reimbursement

These are sometimes referred to as ‘Cost Plus’ contracts Davis et al., (2008). The

contractor undertakes to carry out an indeterminate amount of work on the basis that

they are paid the prime or actual cost of labour, plant, and materials. In addition, the

contractor receives an agreed fee to cover management, overheads and profit. Hybrids

of the cost reimbursement contracts include:

• Cost-plus percentage fee – the fee charged is directly related to the prime cost. It

13
 is usually a flat rate percentage, but it can also be on a sliding scale. However,

the contractor has no real incentive to work at maximum efficiency, and this

variant is only likely to be considered where the requirements are particularly

indeterminate precontract.

• Cost-plus fixed fee – The fee to be charged is tendered by the contractor. This is

appropriate provided that the amount and type of work is largely foreseeable.

The contractor has an incentive to work efficiently so as to remain within the

agreed fee.

• Cost-plus fluctuating fee – The fee varies in proportion to the difference between

the estimated cost and the actual prime cost. The assumption is that as the

latter cost increases, the contractor’s supposed inefficiency will result in a fee

which decreases.

Key points to consider with traditional procurement

• A traditional lump sum contract requires the production of a complete set of

documents before tenders are invited. Adequate time must be allowed for this.

• The traditional procurement method assumes that design will be appointed by

consultants, and it does not generally imply that the contractor has any design

obligations. If this is to be the case, express terms should be included in the

contract.

• As the employer appoints consultants to provide advice on all matters of design

and cost, they thereby retain total control over the design and quality required.

• The contractor depends heavily upon the necessary information and instructions

from the architect being issued on time. There is a risk of claims if they are

delayed.

14
• The employer decides which specialist firms the contractor is to use, although

the contractor may require certain safeguards relating to performance.

• All matters of valuation and payment are the responsibility of the employer’s

consultants.

• If it is impossible to define precisely the quantity or nature of some of the work, it

is still possible to adopt a traditional method on the basis of approximate

quantities, provisional sums, or cost reimbursement. However, this is less than a

perfect solution: the fuller and more accurate the information, the nearer to the

relative safety of the lump sum approach.

When should traditional procurement be used?

Traditional procurement should be used when (Turner, 1990):

• A programme allows sufficient time;

• Consultant design is warranted;

• A client wishes to appoint designers and contractors separately;

• Price certainty is wanted before the start of construction;

• Product quality is required; and

• A balance of risk is to be placed between the client and constructor.

2.5.2 Design and Construct Procurement

Davis et al., (2008) states that with design and construct procurement a contractor

accepts responsibility for some or all of the design. There should be express reference

to this in the contract, and the extent of design liability should always be set out as

clearly as possible. Unless the contract states otherwise, it seems that the liability for

design is an absolute liability under which the contractor warrants fitness for the

purpose intended.

15
Some design and construct forms limit the design liability of the contractor to the

normal professional duty to exercise reasonable care and skill. Independent consultants

engaged by the contractor are therefore under a liability no greater than normal. An

indemnity or acceptance of liability is likely to be worthless unless backed by adequate

indemnity insurance, and this is something that should be checked before a contractor

is appointed. If the contractor does not have in-house designers, which is often the case,

and the contractor uses external consultants, their identity should be established before

a tender is accepted.

The client’s requirements might be stated briefly and simply, perhaps little more than a

site plan and schedule of accommodation. On the other hand, they may be a document

of several hundred pages with precise specifications. The contractor’s input might be

restricted to taking a scheme design supplied by the client and developing details and

production information. It is however better to specify in terms of the performance

requirement rather than to prescribe in detail, because this leaves the responsibility for

design and selection firmly with the contractor.

Design and construct methods offer certainty on the contract sum and bring cost

benefits.

The close integration of design and construction methods and the relative freedom of

the contractor to use their purchasing power and market knowledge most effectively

can provide a client with a competitive price.

Natasa (2007) stated that the design and construct procurement system is the main

number of the group. The principal variants are novated, direct, competitive, package

deal, develop and construct methods of procurement. With a design and construct

method, it is possible ensure a quicker start on site, and the close integration of design

16
and construction can result in more effective programming. Time, however, is needed

by the client’s consultants to prepare an adequate set of requirements, and time is

needed to compare and evaluate the schemes from competing tenderers. Once a

contract is signed, any changes by the client can prove costly.

Pre-Novation Contract and Post-Novation Contract

A number of variations of design and construct exist, which include (Turner, 1990):

• Direct – in this case no competition is obtained in tenders. Some appraisal of the

possible competitors may be made before tendering but only one tender is

obtained.

• Competitive – tenders are obtained from documents that are prepared to enable

several contractors to offer competition in designs and in prices.

• Develop and construct – consultants design the building required to a partial

stage, often referred to as ‘scope design’, then competitive tenders are obtained from a

select list of contractors to develop and complete the design and construct the building.

The amount of consultant design can vary depending on the client’s needs.

• Package deal – this method is often used where the contractors competing will

use a significant part of their own or another proprietary building system or they will be

constructing variations of a repetitive theme. There is limited scope for innovation when

this method is used. Some contractors may offer to find a site, to sell, mortgage

or lease their product, obtain approvals etc at a risk to themselves or at a charge to

the client.

• Novation – sometimes referred to a design, novate and construct. This is where

the contractor takes over from the client a previous contract for the design work,

completes the design and constructs the work.

17
Key points to consider with design and construct procurement

• In design and construct contracts, in theory, there is usually a single point of

responsibility. The employer therefore has the advantage of only on firm to deal

with – and one firm to blame if things go wrong. In practice, the employer’s

requirements are detailed to the extent that the contractor’s design contribution,

and liability, is diminished.

• The employer lacks control over the detailed design; however, this might be

acceptable where broad lines of the scheme are satisfactory and the detail

relatively less important.

• Construction work can be started early as a great deal of detailed design can

proceed in parallel. However, it is mainly the contractor who benefits from this

operational flexibility.

• Responsibility for completing on time rests wholly with the contractor. There

should be no risk of claims because of the allegations that information from the

employer is late. This obligation on the contractor to be responsible for the flow

of their necessary information is one of the most attractive features of design

and construct.

• There is greater certainty of cost, even to the extent that, if required,

responsibility for investigating site and subsoil conditions can be made entirely

the contractor’s. Any changes in the employer’s requirements can affect the

contract sum, however, and are likely to prove costly.

• It is always advisable to ask for information about who the contractor intends

using as a designer. Adequate professional indemnity insurance should always

be a requirement.

18
• The employer should be advised to appoint consultants to provide advice on the

preparation of the requirements; it is important that adequate time is allowed for

this to be done adequately.

• The requirements might include specific items or provisional sums, bit generally

it is prudent to prescribe performance criteria, so that a high degree of reliance is

placed on the contractor.

• Benefits can arise from designers and estimators having to work closely together.

The contractor’s awareness of current market conditions and delivery times can

ensure that a contract runs smoothly, economically and expeditiously.

When should design and construct procurement be used?

Design and construct procurement should be used when a (Turner, 1990):

• Building is functional rather than prestigious;

• Building is simple rather than complex is not highly serviced and does not require

technical innovation;

• Brief for scope design is likely to change;

• Programme can be accelerated by overlapping design and construction activities;

and

• Single organization is required to take responsibility and risk for design and

construction.

The following comments about using novation are provided (Chan, 1996): For a limited

marketplace with insufficient companies who do not have a proven record of designing

and constructing - perceived risk of taking over a design deters many would be

tenderers.

By accepting a novated design companies accept errors and omissions and other

19
potential problems including a design that may potentially prove unworkable. The

client's right to nominate subcontractors or suppliers is removed under novation, thus

the company taking over both design and construction is free to make its own

contractual arrangements as it sees fit.

The architect will no longer supervise quality control or exercise sanction once novation

occurs. This is difficult for many designers, as their reputation is closely associated

with their work, which may be modified in a way that could upset them.

The client looses communication links with the design team once novation occurs.

2.5.3 Management Procurement

Several variants of management procurement forms exist, which include; management

contracting, construction management and design and manage. There are some subtle

differences between these procurement methods. In the case of management

contracting, the contractor has direct contractual links with all the works contractors

and is responsible for all construction work. In construction management, a contractor

is paid a fee to professionally manage, develop a programme and coordinate the design

and construction activities, and to facilitate collaboration to improve the project’s

constructability.

Management contracting

Davis et al., (2008) stated that the client appoints an independent professional team,

and also a management contractor. Their involvement at pre-construction stages will be

as adviser to the team, and during construction they will be responsible for executing

the works using direct works contracts. With this type of contract it is possible to make

20
an early start on-site and achieve early completion. Because of its flexibility, it allows the

client to change the design during construction because drawings and matters of detail

can be adjusted and finalized as the work proceeds.

For a management contract to be successful there must be trust and good teamwork

on the part of the client, the design consultants and contractor. The contractor should

preferably be appointed no later than the outline design stage. The contractor can

advise on the design programme, tender action, delivery of materials and goods, and

construction programmes.

The management contractor will normally make a written submission which includes a

proposed management fee, and will be appointed after interviews with the client and the

design team. The fee will include for the total management service, expressed as a

percentage of the total project cost and for a service to cover pre-construction stages

should the project not proceed to site.

The management contractor undertakes the work on the basis of a contract cost plan

prepared by a quantity surveyor, project drawings, and a project specification. The client

accepts most of the risk because there is no certainty about costs and programme.

Competitive tenders for works packages follow later and they will usually, though not

always, will be lump sum contracts with bills of quantities.

Construction management

The CIOB report (2010) stated that construction management is not a widely used

procurement method – its main reason for existence is for use on large and/or very

complex construction works. The management contractor is selected after a careful

selection process and is paid a management fee. The basic difference is that works

contracts, although arranged and administered by the management contractor, are

21
direct between the client and works contractor. Although in a sense this gives the client

a greater measure of control, it also means that the client accepts a considerable

amount of risk. The management contractor is simply an agent, and usually cannot

guarantee that the project will be finished to time and cost.

A number of advantages have been identified that can be offered by the CM approach.

These may be summarized as follows (Walker 1999);

• Reduced confrontation between the design teams and the team responsible for

supervising construction;

• Early involvement of construction management expertise;

• overlap of design and construction;

• increased competition for construction work on large projects due to work

packaging and splitting the construction activities into more digestible 'chunks';

• More even development of documentation;

• Fewer contract variations;

• No need for nominated trade contractors; and

• Public accountability

Design and manage

Turner (1990) stated a design and manage strategy is similar to management

contracting. Under a design and manage contract, the contractor is paid a fee and

assumes responsibility, not only for works contractors, but also for the design team.

The common variations of design and manage are (Turner, 1990):

• Contractor – a project design and management organization designs and

manages the work, generally for a fee and delivers the project by employing

works contractors as its subcontractors to design/or construct.

22
• Consultant – a project designer/manager is the client’s agent, who designs and

manages the work, obtains subcontract tenders from works contractors who then

each enter into a direct contract with the client.

Key points to consider with management procurement

• Management procurement methods are best suited to large, complex, fast

moving projects where early completion is desirable.

• This method of procurement depends upon a high degree of confidence and

trust. There is no firm contract price before the work starts on site, and the decision to

go ahead usually has to be taken on the basis of an estimate.

• The management contractor is the agent of the client, and should therefore put

their interests first throughout the project.

• It is an advantage to appoint the management contractor at early stage, so that

their knowledge and expertise are available to the design team throughout the

preconstruction period.

• Much of the detailed design work can be left to proceed in parallel with the site

operations for some work packages, thus reducing the time needed before the project

starts on-site.

• The client has a considerable degree of flexibility on design matters. The design

can be adjusted as construction proceeds, without sacrificing cost control. This

would not be possible with traditional methods.

• The management contractor can select specialists and order materials with long

lead-in times for delivery in good time without any of the uncertainties and

complexities which attend traditional nomination procedures.

• The project proceeds on the basis of a contract cost plan, but an independent

23
quantity surveyor is required for effective cost control.

• A competitive tendering element is retained for all works contracts, which usually

account for most of the overall prime cost. Tenders for works packages will

normally be on a lump sum basis.

2.5.4 Public private partnership procurement method "PPPP"

Larmour (2011) stated that public private partnership (PPP) procurement method

involves two or more organizations working together to improve performance through

agreeing mutual objectives, devising a way for resolving any disputes, and committing

themselves to continuous improvement, measuring progress and sharing gains and

pains. Examples include framework agreements and joint ventures. This is a relatively

new form of procurement and although discussed in the Latham report in the 1990‟s,

has taken a long time to come into general use. It is more commonly seen within large

civil engineering projects, than individual building projects.

The CIOB report (2010) believes that this method is the “most efficient way of

undertaking all kinds of construction work including new buildings and infrastructure,

alterations, refurbishment and maintenance”. Long-term (strategic) partnering

commitments showcase the real benefits of the procurement method, although short-

term (project-specific) partnering has also proved highly beneficial on individual

projects.

Under this procurement method, the client lays down a framework for the overall

administration of the project within which he/she has the discretion to use the most

appropriate of all the procurement systems contained within the other three methods.

In PPP procurement method quantity surveyors play an integral role by providing a wide

range of services, which include contractual issues; it also offers quantity surveyors an

24
opportunity to act as independent advisors within the system (Cartlidge, 2002).

The principles of this method include a decision making process, mutual objectives, and

an overall improvement in performance. As more projects are worked on in tandem, a

greater understanding of how to accomplish best practice, reduce costs and attain

value for money is achieved. Partnership forms are typically used for high complex

projects. A detailed description of their characteristics and the conditions for using

such forms of collaborative arrangement can be found in the Victorian State

Government Report (2006) „Project Alliance Practitioners Guide‟.

2.6 Challenges in public and private procurement systems

According to (Stergiou, 2009) large amounts of public funds are expended to purchase

goods and services from the private sector and most of the procedures are conducted

manually, where two risks are eminent i.e. human error, which exceptionally high

considering the numerous processes and movement of documents that stretches over

a long time frame and equally potent risk of corruption during the stages of the

procurement process.

At each stage of the procurement process, there are particular risks involved;

Stage 1 risks

a. In adequate choices of procedures

b. Lack of adequate assessment and planning

c. Insufficient timeframe preparation

d. Inconsistent practices across the bidders in the first stage

Stage 2 risks

a. The selection of suppliers has inconsistent bidders’ information

b. Conflict of interest situations are prevalent

25
c. Lack of access to record procedures

d. Biased towards favoured bidders

e. Collusive bidding resulting in incorrect prices

Stage 3 risks

a. Contract administration has insufficient monitoring process

b. No transparency in contracts being awarded

c. There lack of separation of financial duties especially involving the payment process.

The United Nations (2004) article 9(2) provided that a procurement system should

ensure adequate internal control and risk management. The procurement system

should have installed an arrangement of integrated systems that link various functions

such as budgeting and planning, procurement procedures and the contract or project

implementation process

26
 CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
The purpose of this chapter is to address the methods used in this research study.
Items addressed include: - Research approach, research design, research population,
sampling techniques and sampling size, research instrument and measurement and
finally data analysis and presentation.

3.2 Research approach

The approaches which can be used for any research work can either be quantitative,
qualitative or a mixed research method which is further explained below:

Quantitative method

This method emphasize objective measurements and the statistical, mathematical, or

numerical analysis of data collected through pools, questionnaires, and surveys, or by
manipulating pre-existing statistical data using computational techniques.

Quantitative research is used to quantify the problem by way of generating numerical

data or data that can be transformed into usable statistics. It is used to quantify
attitudes, behaviors, and other defined variables and generalize results from a larger
sample population. This method of research uses measurable data to formulate facts
and uncover patterns in research. Also, they include various forms of surveys like online
surveys, paper surveys, mobile surveys, kiosk surveys, face-to-face interviews,
telephone interviews, longitudinal studies, website interceptors, online polls, and
systematic observations.

Qualitative method

Qualitative research is primarily exploratory research. It is used to gain an

understanding of underlying reasons, opinions, and motivations. It provides insights into
the problem or helps to develop ideas or hypothesis for potential quantitative research.
This type of research is also used to uncover trends in thoughts and opinions, and diver
deeper into the problem. Qualitative data collection methods vary using unstructured or
semi-structured techniques. Some common methods include focus groups, individual

27
interviews, and participations/observations. The sample size is typically small, and
respondents are selected to fulfill a given quota.

Mixed method

The mixed research method is more specific in that it includes the mixing of
quantitative and qualitative data, methods in a research study or in a set of related stu
dies. In other words, mixed method is a methodology for conducting research that
involves collecting, analyzing and integrating quantitative and qualitative research. The
field of mixed methods has only been using multiple methods, just not calling them
“mixed”. Mixed methods take advantage of using multiple ways to explore a research
problem.

The methodology adopted for the purpose of this research is quantitative research
method since questionnaires will be administered to enable affective data analysis.

Figure 1: Diagram showing the research aproach

Qualitative Quantitative Mixed

Survey design

Data collection

Data analysis

28
 Data presentation and results

Conclusion and recommendation

3.3 Research design

Research design refers to the overall strategy that you choose to integrate the different
components of the study in a coherent and logical way, thereby, ensuring you will
effectively address the research problem. It constitutes the blueprint for the collection,
measurement, and analysis of data. A research design will typically include how data is
to be collected, what instruments will be employed, how the instruments will be used
and the intended means for analyzing data collected.

A survey research design was adopted through administering structured questionnaires

distributed among respondents. The questionnaire will constitute the aim and
objectives of this research.

3.4Research population

The population in focus here is the Nigeria construction industry, since it will not be
possible to reach out to the entire industry, thus the study will limit itself to clients,
contractors, consultants, professionals and other stakeholders in the industry within
Lagos state. A total population of about 100 professionals is the population of this
research area.

3.5 Sampling techniques and sampling size

In this research, a random sampling technique was employed and the choice of this
technique is to be able to give equal chance to all in the population under the study. This
will be made possible through the distribution of questionnaires to firms, contractors,
clients and other stakeholders within the Nigeria construction sector.

Since it was not possible to administer questionnaire to all practicing firms in Nigeria, a
total of 80 questionnaires was administered to the randomly selected population size
which included random sample of 15 clients, 15 contractors, 20 quantity surveyors, 15
architects, and 15engineers in those selected construction firms in Lagos state via

29
personal visits and email.

The sample size was obtained using the “TAROYAMAME” formula which implies

N
n=
1+N(e)2

100
n=
1+100(0.0025)

100
n=
1+0.25

100
n=
1.25

n= 80 numbers

Where n = sample size

N = Population size

e = level of significance (0.05)

3.6Research instrument and measurement

The researcher’s instrument can be described as the data collection instrument adopted
in sourcing relevant information about the project topic embarked on by the researcher.
For the efficiency of this research, a well adopted questionnaire is employed for the
project and it is structured as closed-ended in which the question are simply designed
to obtain valuable information from the respondent in order to achieve the aims and
objectives of the research work. The questionnaire is divided into four sections;

SECTION A: Source information in respect of the general particulars of the respondents

regarding qualifications, experience and organizations.

SECTION B: Asked respondents on the various procurement systems in Nigeria

construction industry.

SECTION C: Collected information regarding the impact of various procurement

30
systems on construction project delivery.

SECTION D: Was used to gather information from respondents in selecting the most
appropriate procurement system for both private and public sector.

3.7Data analysis and presentation

Primary and secondary data are collected for the purpose of this study. Primary data
comprises information derived from structured questionnaire administered on the
respondents while secondary data are information derived from textbooks, articles from
journals, magazines, internets which are relevant to the study.

Bar chart was used to determine the general particulars of the respondents in respect of
qualifications, experience, and organization. Frequency was used to analyze the
respondents opinion on the impact of procurement systems of public and private sector
on construction project delivery.

3.8 Procedure for data processing and analysis

Data for the study was processed and analysed with the aid of the Statistical Packages
for Social Science (SPSS). Data measured on nominal scale were analysed using
descriptive statistics such as frequency distribution and percentages. Mean scores and
standard deviations, as well as inferential statistics will be used to analyse data
measured on ordinal scale.

3.9 Mean item score

Mean score = (1n1 + 2n2 + 3n3 + 4n4+ 5n5) / (n1 + n2 + n3 + n4+ n5)

Where n = number of responses and 1, 2, 3, 4 and 5 = rating/weighting scale.

31
 CHAPTER FOUR
DATA PRESENTATION AND DISCUSSION OF RESULT
4.1 INTRODUCTION
In any research, data analysis occupies a central position as it gives meaningful
interpretation of the information collected from the field. It is also a way of measuring
the success of the research since it deals with the aims and objectives of the research;
The objectives of this research are
1. Identify the various procurement methods for private and public sectors projects.

2. Examine the impact of the procurement system on construction project delivery.

4.2 PRESENTATION OF DATA

This section presents the responses obtained from the respondents. A total number of
80 questionnaires were distributed in Lagos state and the following results were
obtained.
Table 4.1 Category of respondents
Category of respondent
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Client 15 18.8 18.8 18.8
Consultant 36 45.0 45.0 63.7
Contractor 19 23.8 23.8 87.5

32
Category of respondent
Governme 10 12.5 12.5 100.0
nt
Total 80 100.0 100.0
Majority of respondents, about 45% were consultants who at one time or the other has
procured construction projects, 24% were contracting firms, 19% were clients while
respondents from government service represented about 13% of the respondents.

Figure 2 : Bar chart showing the category of respondents

Table 4.2 Nature of organization

Nature of organization
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Building construction 45 56.3 56.3 56.3
firm
Civil engineering firm 16 20.0 20.0 76.3

33
Nature of organization
Consultancy firm 10 12.5 12.5 88.8
Others 9 11.3 11.3 100.0
Total 80 100.0 100.0

From the above findings based on the organization of respondents. It can be seen that a
high percentage of the respondent were building construction firm 56%, followed by civil
engineering firm 20%, consultancy firm 13%, and others representing just 11%

Figure 3 : Bar chart representing the nature of organization.

Table 4.3 Educational qualification of respondents

Educational qualification
Valid
Frequenc Percen Cumulativ
y Percent t e Percent
Valid OND 1 1.3 1.3 1.3

34
Educational qualification
HND 32 40.0 40.0 41.3
BSC 43 53.8 53.8 95.0
MSC 4 5.0 5.0 100.0
Total 80 100.0 100.0

A greater percentage of the respondents had B.SC as their educational qualification

while very low is OND. Those who possessed B.SC represent 54% of the respondents
while those with HND represents 40%, others include M.SC holder which were about 5%
and OND representing 1% of the respondents.

Figure 4 Bar chart educational qualifications of the respondents

Table 4.4 Profession of respondents
Professional Background

35
Professional Background
Valid
Frequenc Percen Percen Cumulativ
y t t e Percent
Valid Architect 18 22.5 22.5 22.5
Builder 19 23.8 23.8 46.3
civil/structural 17 21.3 21.3 67.5
engineer
Quantity 26 32.5 32.5 100.0
surveyors
Total 80 100.0 100.0

Among the professionals who responded to the questionnaire, 33% were quantity
surveyors, 24% were builders, 23% were architects, while 21% were civil/structural
engineers.

36
Figure 5 showing the professional background of respondents

Table 4.5 Professional qualification of respondents

Professional body
Valid
Frequenc Perce Percen Cumulativ
y nt t e Percent
Valid NIA 12 15.0 15.2 15.2
NIOB 20 25.0 25.3 40.5
NIQS 23 28.7 29.1 69.6
NSE 11 13.8 13.9 83.5
Others 13 16.3 16.5 100.0
Total 79 98.8 100.0
Missin System 1 1.3
g
Total 80 100.0
From the table above, it will be observed that members of the Nigeria institute of
quantity surveyors were 29%, while Nigeria institute of builders were 25%, Nigeria
institute of architect were 15%, a great proportion of about 17% were not attracted to
any professional body , while nigeria society of engineers were 14%.

37
Figure 6 Showing professional qualification/body of respondents

Table 4.6 Years of experience

Years of experience
Valid
Frequenc Percen Percen Cumulativ
y t t e Percent
Valid 1-6years 31 38.8 38.8 38.8
6-10years 37 46.3 46.3 85.0
11-15years 10 12.5 12.5 97.5
above 2 2.5 2.5 100.0
20years
Total 80 100.0 100.0
From the above table, 46% respondent had experience of between 6-10 years, 39% had
1- 6 years of experience, and 13% had between 11- 15 years of experience while only 3%
had above 20 years of experience.

38
Figure 7 showing the years of experience

SECTION B ; The various procurement system in Nigeria construction industry

Statistics
N Maximu Percentiles
Valid Missing Mean Minimum m 25 50 75
Traditional 80 0 4.61 3 5 4.0 5.0 5.00
procurement 0 0 5.00
Design and 79 1 4.38 4 5 4.0 4.0 5.00
Construct 0 0 5.00
Procurement
Management 79 1 3.23 2 5 3.0 3.0 4.00
procurement 0 0 4.00
PPP Procurement 80 0 3.30 1 6 3.0 3.0 4.00
0 0 4.00

From the table above, it can be deduced that the traditional procurement system has
the highest mean value which implies that it is widely and commonly used, important
and significant followed by design and construct procurement system, public private
partnership procurement system(PPPP) and thenmanagement procurement system.

SECTION C ; The impact of procurement methods to project delivery

Statistics
N Percentiles
Missin Maximu
Valid g Mean Minimum m 25 50 75
Lump sum 79 1 4.59 1 5 4.00 5.00 5.00 5.00
method

39
SECTION C ; The impact of procurement methods to project delivery
Statistics
Measurement 80 0 4.49 2 5 4.00 5.00 5.00 5.00
method

Cost 80 0 3.80 1 5 3.00 4.00 4.00 4.00

reimbursement
method

Competitive 79 1 3.82 2 5 3.00 4.00 5.00 4.00

method

Develop and 79 1 4.30 3 5 4.00 4.00 5.00 4.00

construct method

Package deal 80 0 4.16 3 5 3.00 4.00 5.00 3.00

method

Novation method 79 1 3.42 1 5 2.00 3.00 5.00 5.00

Management 80 0 3.81 2 5 3.00 4.00 5.00 5.00

contracting
method

Construction 80 0 3.40 1 5 2.00 3.00 5.00 5.00

management
method

Design and
80 0 4.09 2 8 4.00 4.00 5.00 4.00
manage method

Public private 80 0 4.24 1 5 4.00 4.00 5.00 4.00

partnership
method

From the table above, it can be observed that the order of impact of procurement
methods to project delivery according to their mean value is as follows; lump sum
method, measurement method, develop and construct method, public private

40
partnership method, package deal method, design and manage method, competitive
method, management contracting method, cost reimbursement method, novation
method and construction management method.
SECTION D ; The most appropriate decision criterias in selecting procurement
systems
Descriptive Statistics
Maximu
N Mean Std. Deviation Minimum m
Certainty of 78 4.54 .768 1 5
completion time
Complexity 80 4.34 .615 3 5
Design brief 80 3.71 .889 2 5
Budget limitation 80 3.75 1.025 2 5
Risk Avoidance 80 4.49 .656 3 5
Certainty of price 80 4.13 .891 1 5
Quality level 80 4.13 .753 3 5
Price competition 79 3.66 .861 2 5
Maintenance 79 3.30 1.334 1 5
Requirement

Certainty of completion time

Observe Expecte Residua
dN dN l
very low 1 15.6 -14.6
Low 2 15.6 -13.6
Average 1 15.6 -14.6
Average 24 15.6 8.4
very 50 15.6 34.4
high
Total 78
Complexity

41
 Observe Expecte Residua
dN dN l
Average 6 26.7 -20.7 Design brief
High 41 26.7 14.3 Observe Expecte Residua
very 33 26.7 6.3 dN dN l
high Low 7 20.0 -13.0
Total 80 Average 25 20.0 5.0
Risk Avoidance High 32 20.0 12.0
Observe Expecte Residua very 16 20.0 -4.0
dN dN l high
Average 7 26.7 -19.7 Total 80
High 27 26.7 .3
very 46 26.7 19.3 Budget limitation
high Observe Expecte Residua
Total 80 dN dN l
Low 12 20.0 -8.0
Certainty of price Average 18 20.0 -2.0
Observe Expecte Residua High 28 20.0 8.0
dN dN l very 22 20.0 2.0
very low 1 16.0 -15.0 high
Low 1 16.0 -15.0 Total 80
Average 18 16.0 2.0 Quality level
High 27 16.0 11.0 Observe Expecte Residua
very 33 16.0 17.0 dN dN l
high Average 18 26.7 -8.7
Total 80 High 34 26.7 7.3
very 28 26.7 1.3
high
Total 80

42
Price competition
Observe Expecte Residua
dN dN l
Low 7 19.8 -12.8
Average 26 19.8 6.3
High 33 19.8 13.3
very 13 19.8 -6.8
high
Total 79

Maintenance Requirement
Observe Expected
dN N Residual
very low 6 15.8 -9.8
Low 20 15.8 4.2
Average 20 15.8 4.2
High 10 15.8 -5.8
very 23 15.8 7.2
high
Total 79

From the tables above, the opinion and view of respondents shows that the decision
criterias for selecting procurement system is appropriate in the following order;
certainty of completion time, complexity, certainty of price, quality level, maintenance
requirement, budget limitation, design brief and price competition.
4.3 DISCUSSION OF FINDINGS
This research is aimed at examing the impact of various procurement system on
construction project delivery. It is true that no fail safe selection process can be defined
due to large variation in project circumstances and potential risk but the ability to select
certain options may be possible within the consideration of some decision criterias and

43
factors relating to project. This is the reason why one of these research objectives is to
identify and assess the various procurement system in the Nigeria construction industry.
The results from the analyzed questionnaire revealed that various procurement system
mostly used in Nigeria include traditional procurement system, design and construct
procurement system. While public private partnership procurement system and
management procurement system were still of low importance and underutilized in
Nigeria.
An examination of literature revealed that insufficient research had been undertaken on
selecting a procurement system for the building process, this research therefore
attempts to examine the criterias for determining the procurement system suited for
the delivery of a project .
These criterias were analyzed and ranked accordingly in order of their importance and
appropriateness in the Nigeria construction.
Therefore this research work suggests that the most appropriate criterias for selecting
any procurement system in the Nigeria construction industry is as follows; certainty of
completion time, risk avoidance, complexity of the project, certainty of price/cost and
quality level. Other decision criterias like maintenance requirement, budget limitation,
design brief and price competition are of less significance and importance.

44
 CHAPTER FIVE

CONCLUSION AND RECOMMENDATION

5.1 CONCLUSION

From this comprehensive research carried out to examine the impact of the
procurement system on construction project delivery, the following were revealed;

Traditional procurement system is still the most used and of the greatest impact in
Nigeria despite its problems and shortcomings which include long process and lots of
variations although it had a high level of dissatisfaction from user, they still prefer it to
other system because of its ability to allow professional play the full part and the fact
they are available for contractors to work it.

There is also high level of importance and satisfaction derivable from use of
procurement system like design and construct, public private partnership and then
management procurement system.

Traditional procurement system is more suitable for construction of building project

while public private partnership and management procurement system is more suitable
for heavy engineering project with design and construct been considered more
appropriate for civil engineering projects.

Decision criterias for selecting these procurement system in the order of their
importance are as follows; certainty of completion time, complexity, risk avoidance,
certainty of price, quality level, design brief, price competition, budget limitation and
maintenance requirement.

The most significant and important factors to be considered when selecting

procurement system was observed to be certainty of completion time, complexity, risk
avoidance and quality level.

5.2 RECOMMENDATIONS

From the above conclusions it has been drawn out that traditional procurement system

45
is of more use and great impact to construction project delivery both for public and
private sector in Nigeria.

A simple set of criterias has been identified as being generally adequate and sufficient
procurement selection and there is a reasonable consensus on their appropriate ranking
moreover recommendation is made for a more effective procurement system.

There should be greater involvement and interaction between clients, consultants and
design team members during the selection process. Participants in the procurement
process should put aside their own objectives in a holistic manner. This can be
effectively achieved through the use of a project management which acts as a control
mechanism for the client and other participants.

All clients and consultants of the construction industry, whether from the public or the
private sector, should familiarize themselves with various procurement methods as this
will assist them in making well-informed procurement method.

The eventual choice of method should be based on the consideration of project related
factors such as certainty of completion time, complexity, risk avoidance, design brief,
budget limitations as they are of greater influence.

There should be improved utilization of emerging procurement system designed to fast

track project as well as promoting team work and better team members participation.
These system include design and construct, public private partnership and management
procurement. These systems have higher level of collaboration among the various
participants in the project.

Clients, consultants and other stakeholders in the construction industry should be

enlighten on the impact of various procurement system suitable for choice, project
related factors affecting the procurement process and analyzed the identified factors
against the selected procurement system.

46
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QUESTIONNAIRE

DEPARTMENT OF QUANTITY SURVEYING

THE FEDERAL POLYTECHNIC ILARO,

P.M.B 50, ILARO, OGUN STATE,

NIGERIA.

16th JULY, 2018.

Dear Respondent,

REQUEST FOR COMPLETION OF QUESTIONNAIRE

I Adeyanju Oluwaseyi David, an HND II student of The Federal Polytechnic, Ilaro; I am

currently carrying out a research on “impact of procurement systems on construction
project delivery in Lagos State” in partial fulfillment of the award of Higher National
Diploma (HND) in Quantity Surveying.

This questionnaire is intended to be used for gathering information for the research
work on the above topic. It is hoped that you will provide the necessary information. The
information provided will be used purely for the purpose of research and shall be treated
as confidential as possible.

I look forward to receiving a completed questionnaire from you.

Thanks for your anticipated cooperation

49
Yours faithfully,
ADEYANJU OLUWASEYI DAVID
DEPARTMENT OF QUANTITY SURVEYING
FEDERAL POLYTECHNNIC ILARO
08163426961
Sheyzii18@yahoo.com
SECTION A: GENERAL INFORMATION OF THE RESPONDENT

Please tick as appropriate (√ )

1. Category of Respondent

Client ( ) consultant ( ) contractor ( ) Government ( )

Others (please specify) …………………………..

2. What is the nature of the organization in which you work?

Building construction firm ( ) civil Engineering Firm ( )

Consultancy firm ( ) other (please specify)………………

3. What is the highest educational qualification that you possess?

OND ( ) HND ( ) B.sc / B. Tech ( ) M.sc ( ) PhD ( )

Others (please specify) ……………………………

4. Please indicate your professional background

Architect ( ) Builder ( ) Civil / structural Engineering ( )

Quantity surveyor ( ) others (please specify) …………………….

5. To which professional body do you belong?

NIA ( ) NIOB ( ) NIESV ( ) NIQS ( ) NSE ( ) None ( )

6. Please indicate your years of experience in the construction industry.

50
 1 - 6 years ( ) 6 - 10 years ( ) 11 – 15 years ( ) 16 – 20 years ( )

Above 20 years ( )

SECTION B: PROCUREMENT SYSTEMS

Use the following scale of 1-5 for the question in this section:

5 – Very High, 4 – High, 3 – Average, 2 – low, 1 – very low.

Please rate the following procurement system in order of their importance based on
your experience.

PROCUREMENT SYSTEM

5 4 3 2 1

Traditional Procurement

Design and Construct Procurement

Management procurement

Public private partnership procurement

SECTION C: PROCUREMENT METHODS IMPACTS

Use the following scale of 1-5 for the question in this section:

5 – Very High, 4 – High, 3 – Average, 2 – low, 1 – very low.

Please rate the following procurement methods in order of the impact to project
delivery to your sector.

PROCUREMENT METHODS

51
 5 4 3 2 1

Lump sum method

Measurement method

Cost reimbursement method

Competitive method

Develop and construct method

Package deal method

Novation method

Management contracting method

Construction management method

Design and manage method

Public private partnership method

SECTION D: PROCUREMENT SYSTEM SELECTION CRITERIA

Use the following scale of 1-5 for the question in this section:

5 – Very High, 4 – High, 3 – Average, 2 – low, 1 – very low.

Please rate the following procurement system selection criteria in order of their
appropriateness based on your experience.

SELECTION CRITERIAS

5 4 3 2 1

Certainty of completion time

Complexity

Design Brief

Budget limitation

Risk Avoidance

Certainty of price

52
Quality level

Price competition

Maintenance Requirement

53