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

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.