The Nigerian Institute of Building (NIOB) has urged professionals in the built environment to be aligned with procurement methods that would enable effective risk management.
Mr Adelaja Adekanmbi, NIOB Lagos Chapter Chairman, said that the method would help add value to building production processes to meet best global ethics.
Adekanmbi spoke on Friday at a press conference heralding the 28th Builders’ Conference and Annual General Meeting in Lagos.
According to him, procurement is the process of finding and agreeing to terms, and acquiring goods, services, or works from an external source, often via a tendering or competitive process.
He said that sound procurement processes as a function of cost, would successfully help in completion of projects on schedule, and at right cost to all stakeholders without recourse to arbitration or litigation.
He said it was regrettable that some construction projects were under litigation due to inadequate and inappropriate application of the right procurement methods.
He said that appropriate procurement methods, when holistically analysed and put to use, would undoubtedly help reduce or eliminate cost overrun that culminate from extension of time due to unforeseen mistakes from stakeholders in the project.
Adekanmbi said: “There is no better time than now to discuss salient issues like procurement in Nigeria building industry.
“With the rising inflation index on resources/production and economic downturn that impact negatively on individual and corporate bodies’ purchasing power has reduced appetite for new construction projects.
“All over the world, it is generally believed that the success of a construction project is largely dependent upon the type of procurement method applied.”
The NIOB boss said that various criteria impact the choice of a particular procurement method over the other.
“This include but not limited to; project start and finishing time, need to foster control, project size, risk management and price uncertainty due to time consideration and technical/administrative complexity.
“All the professionals in the sector must see appropriate procurement methods in its true light and recognise the distinction between different procurement methods for different projects to help arrive at the best options for each projects,’’ he said.
Adekanmbi further said that results from researchers revealed that the traditional method of procurement was the most adopted
He said, however, that design and build methods lack construction management but performed better in cost management.
“No one method has all the solutions to procurement challenges. We are however encouraged as consultants and professionals in the construction industry to continually update our knowledge.
“We need to update our knowledge on suitability of one method over another for varying projects to enable us guide our clients aright,’’ the NIOB boss said.
Mr Sunday Yusuf, Vice Chairman of the Institute, attributed the incessant abandonment of public and private construction projects across the country to inappropriate application of procurement methods.
Yusuf said that contractor selection was a crucial decision that needed to be taken by client and/or representative, in order to ensure that projects were completed within slated cost, time and quality standards.
He said that when wrong procurement and decisions are made, they could lead to delays and abandonment of project in some instances.
“Tender Evaluation stage of the procurement process is the most susceptible to corrupt practices. A lot of things happen during this stage.
“Evaluation panel are sometimes pressurized to disqualify the most competitive tender and recommend favorites of the awarding authorities.
“In contract award, there should be fair play. Factors such as technical, financial and administrative capabilities are major items that should be evaluated at the pre-qualification stage.
“Award should be made to the qualified bidder whose bid substantially conforms to the requirement set forth on the solicitation documents,” he said.
The Nigeria News Agency reports that the conference which would take place between Oct. 29 and 30 at Academy Inn, Ikeja has as its the theme: “Appropriate Procurement Method: Ensuring Effective Building Production”
Dr Obafemi Hamzat, Deputy Governor of Lagos State is expected to chair the occasion which would equally attract dignitaries such as the Speaker of Lagos State House of Assembly, Mr Mudashiru Obasa, as special guest of honour.