Comparisons of Procurement Characteristics of Traditional and Labour-only Procurements in Housing Projects in Nigeria

Olabode E. Ogunsanmi

Abstract


Procurement characteristics of Traditional and Labour-only are compared in
some selected states of Nigeria. The objective of this study is to examine if procurement
risks, generation of claims, variations to original design, control of sub-contractors and
procurement prospects are the same for both methods. The study obtains its primary data
through the use of designed questionnaires that are sent to clients, contractors and
consultants. In all, 120 questionnaires were sent to these respondents who recently
completed their housing projects based on the two methods. Results of the study indicate
that there is no significant difference between both methods in terms of risks of value for
money, getting good satisfaction, generation of more claims and variation to original
design while a significant difference exists between both methods in risk of timely
completion of project. Labour-only method demonstrates less risk of timely completion
of project than the Traditional method. Characteristics of both methods are not
significantly different from each other when control of subcontractors, benefits of getting
good quality material and workmanship, satisfaction with co-ordination and planning.
improved relationship between project team and timely delivery of project are benefits of
comparisons. Labour-only differs significantly from Traditional method in terms of
prospect of getting good value for money spent on the project. This study concludes that
there are various types of risks inherent in use of both methods in housing projects and
Labour-only method indicates characteristics of early completion of project and prospects
of getting good value for money. Recommendations of the study are that clients,
contractors and consultants should use Labour-only for execution of their future housing
projects and also they are at liberty to use any of the two methods as they best satisfy
their requirements. Implications of this study to policy makers and other stakeholders in
the construction industry is that Labour-only method should be explored for use in large
and complex projects as significant cost savings can be achieved, timely delivery of
project and good value for money are equally achievable with the use of the method.
Results of this study serve as a springboard for further research in perfecting the use of
Labour-only method for construction projects.
Keywords: Comparisons, Procurement characteristics, Traditional and Labour-only
procurements, Nigeria.


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