Procurement in Construction

MALCONLAW would like to advise readers that the Articles Section contains eight articles describing various procurement options available to Employers and developers in respect of their construction projects. In addition to giving an overview of the procurement strategy the articles discuss the advantages and disadvantages of the various routes including the benefits which may be achieved and their suitability in respect of the projects criteria.

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3 responses to “Procurement in Construction

  1. Direct labour (DL) system is a prominent procurement system in Nigeria, but its commonly use by Government (both federal and state government levels) ministries/ agencies and really in the private sector companies clients in Nigeria . DL involves the extensive use of client in-house professionals and craftmen in the design and execution of projects. The promoter of DL system opined that because the cost of construction contracts was higher in Nigeria than in other countries (Ministerial Committee on causes of high government contracts in Nigeria, 1982;Punch, 2003) and that it affords considerable savings on procurement documentation and construction cost. However, Critics of the procurement system opined that it is wasteful because it involves high staff strength which translates into high overhead expenditure and promote corruption in government construction .

    • At one time in the UK the various local government agencies used to have their own in house technical and trade divisions to look after roads, school building and the like but generally many of these have gone now. In the UK it was found that such in-house teams were not so cost effective and as a result of no competition they became more and more inefficient. One way to test if the system is working is to put projects out to competitive tender and allow the division to also tender the works and see which is the more cost effective. There are many things however a Government must consider such as social and economic impacts of doing away with government employees and in effect putting these people into the private sector where perhaps employment is temporary or seasonal. It can result in public discontent.

  2. Researches have been conducted on DL in Nigeria and discovered that cost of construction can be reduced by between 15-25% if other methods are used. Beside, evidences have shown that DL method results to earlier completion. However, I seem to agree that DL results in non diffusion of public fund,non creation of job in the economy unlike the other methods. It has seriously brewed corruption in the Nigeria System.