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

Akinkunmi Olutayo Gabriel (), Aghimien Douglas Omoregie () and Awodele Oluwaseyi Alabi ()
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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

Organization, Technology and Management in Construction, 2018, vol. 10, issue 1, 1719-1726

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.

Keywords: building projects; construction; cost perfor­mance; cost saving; labour-only; Nigeria; procurement (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:otamic:v:10:y:2018:i:1:p:1719-1726:n:7

DOI: 10.2478/otmcj-2018-0003

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