Browsing by Author "Olorunoje, Lukman"

Now showing 1 - 3 of 3
  • Item
    Analysis of tendering strategies on the survival of contracting firms in Nigeria.
    (Faculty of Environmental Studies University of Ilorin, Ilorin, Nigeria., 2015) Olowa, Theophilus; Soliu, Idris; Olorunoje, Lukman
    In a competitive tendering situation, contractors constantly face the dilemma of submitting a high price to maximize profit with the possibility of failing to win the contract and thereby suffering a shortage of work. Alternatively, the contractor may submit low prices which wins contract, but show very little or no profit margin. A bidding strategy may be evolved for determining the optimum bid, which will be the relationship between maximum profit and the possibility of being the lowest tenderer (Ashworth, 2002). With the introduction of due process in the procurement of works in the country, especially the public contracts, and the multiplicity of contracting firms, it has become very expedient for contractors to find a way of surviving in the highly competitive environment construction market. The aim of the study is to examine the use of tendering strategies by construction firms in Nigeria as a survival strategy. This study uses cross sectional survey research design to examine the common subjective winning tendering strategies among construction contracting firms in Nigeria. Findings show that Client long term gain or losses which include other sub-factors like amount of work the client carries out regularly, the amount of repeat business level that the client has been following, the client's possible effect by giving recommendations in referral markets, the relationship between the company and the decision makers in the owner's institution and the possibility of solving problems that may occur during work and the client's general procedures to awarding the contracts was identified as the most important factors in tendering decision and percent mark-up to be added to base estimates; tendering strategies/models were rarely used in determining the appropriate mark-up to be allowed for in a tender by contracting firms. However, a few firms do use it with no observed marked difference from those that do not. Respondents identified the unsuitability of tendering models as survival strategies in the Nigerian construction industry as a major factor that negates the use of the different tendering models. A greater proportion of them believe that they were not designed for our kind of environment where reliable data are difficult to come by. It was recommended that when considering tenders for construction projects, contracting firms should give primary attention to client’s long-term gains or losses. This factor should also be weighed when deciding on the most suitable mark-up size for tenders.
  • Item
    Evaluation of Risk Factors Impacting Cost and Time Performance of Mechanical and Electrical Services Installations in North Central Nigeria.
    (Faculty of Environmental Design and Management, Obafemi Awolowo University, Ile-Ife., 2018) Amuda-Yusuf, Ganiyu; Adebiyi, Ranti T.; Olowa, Theophilus; Oladapo, Babatunde I.; Olorunoje, Lukman
    Mechanical and Electrical (M:&E) services project are complex in nature and a number of risk arises at the design and installation stages resulting into poor cost and time performance. This paper identified and ranked the risk factors affecting cost and time performance of M&E services projects. Thirty risk factors identified from preliminary investigations were adopted as basis for a questionnaire survey to architects, engineers, quantity surveyors and project managers in North Central Nigeria. Initial statistical analysis produced 23 risks factors that would affect cost and time performance of M&E services projects and analysis of variance results show that no significant difference exists among the opinions of the professionals surveyed on the 7 risk factors. Factor analysis was adopted to classify the risk factors into five principal components namely, pre-contract risks, post contract risks, clients' related risks, procurement and external risks.The risk identification and ranking are good tools for assessment of risks related to M&E services projects. In addition, the classification of the risk factors can be used to establish important risk factors that require the attention of project participants. This will allow the client and contractor to understand the high-risk areas in M&E services projects and assign responsibility for those risks to the party or parties best situated to control them.
  • Item
    Risk Factors Impacting Cost and Time Performance of Mechanical and Electrical Services Projects
    (Faculty of Environmental Design and Management, Obafemi Awolowo University, Ile-Ife., 2017) Amuda-Yusuf, Ganiyu; Adebiyi, Ranti T.; Olowa, Theophilus; Olorunoje, Lukman; Idris, Soliu
    Mechanical and electrical (M&E) services project is complex in nature and involves a large number of specialist organisations entering the project life cycle at different stages with different lines of relationships, responsibilities and riskmanagement capabilities. Hence, a number of risk arises at the design and installation stages which results into poor cost and time performance in M&E services projects. This paper identified and rank the risk factors affecting cost and time performance of M&E services project. A total of 30 risk factors identified from preliminary investigations was adopted as basis for a questionnaire survey to industry practitioners in Nigeria. Mean response analysis was used to determinedthe probability and severity of the risk factors and risk impact scores was used to rank the relative importance of the risk factors. Analysis of variance (ANOVA) was used to investigate differences of opinions between respondents'. The study identified 23 risk factors (risk impact >3.5) impacting M&E service projects. Out of these risk factors, 7 has significant impact while the rest havemoderate impact. The 7 risk factors in order of their significance are: high foreign materials content, poorly prepared tender documemt, late involvment of M&E engineers,noninvolvement of specialist designers, government policy change, poor specification and poor coodination of design imputs. In addition,ANOVAresults showthat no significant difference exists amongthe professionals on these 7 risk factors.This suggests that the risk level of M&E services project is high.The identification and ranking of the risk factors has practical implication inM&Eservices project. The risk identification and ranking table is a good tool for assessment of risks related toM&Eservices at project inception. This will allow the client and contractor to understand the high risk areas in M&E services project and, where applicable, assign responsibility for those risks to theparty orparties best situated to control them.