Contractor Prequalification Criteria (CPC) use in Public Procurement Projects (PPPs) in Nigeria
Keywords:
Contractor Prequalification Criteria (CPC), Contractor Selection Process (CSP), Decision Makers (DMs), Public procurement projects, Tendering
Abstract
Contractor Selection Process is a tedious task for the Decision Makers (DMs) due to multiple criteria involved both at prequalification and tender evaluation stages. It becomes necessary to identify Contractor Prequalification Criteria (CPC) use for Public Procurement Projects in order to assist the Decision Makers (DMs). Thus, the purpose of the study is to assess the frequency of prequalification criteria use for Public Procurement Projects. Survey research design was used and the population comprises construction professionals and public clients organization. This study was carried out at Lagos and the Federal Capital Territory, Abuja in Nigeria. Stratified random sampling technique was used and data were collected using questionnaires. A total of 373 questionnaires were distributed and 290 were used for the analysis. It gives a response rate of 78%. Statistical Package for Social Science (SPSS) was used to analyse the data using frequency, percentage, t-test and Spearman Rank correlation. The findings shown that current fixed asset, skill including professional technical expertise such as qualification with experience, past performance, provision of Health and Safety regulation and capacity of work handled presently were frequently used Contractor Prequalification Criteria (CPC) identified. There is also an agreement between public clients and consulting organisation on the frequency of use Contractor Prequalification Criteria (CPC). In conclusion, public clients and consulting organisation should use the same CPC for public procurement projects to ensure objective judgement of the criteria. The study recommended that current fixed asset, technical skill, past performance, capacity of contractor and provision of Health and Safety should be a yardstick for evaluating CPC
References
REFERENCES
Adeagbo, A.(2014). Overview of the Building and construction sector in the Nigeria Economy. JORIND, 12(2), 353 – 366.
Adelekan, I. (2013). Private sector investment decisions in building and construction: increasing, managing and transferring risks; case study of Lagos, Nigeria. Background paper prepared for the Global assessment report on disaster risk reduction, Geneva, Switzerland.
Ajayi, O.M. and Ogunsanmi, O.M. (2013). Decision Makers’ Perceptions of contractor prequalification criteria. Urban and Regional Planning Review: An International Journal of Contemporary Urban and Regional Development from multidisciplinary perspectives, 4 (1 & 2), 115 – 131.
Ajayi, O.M. (2016). Application of Analytical Hierarchy Process (AHP) technique for contractor selection system in Nigeria. Journal of Environmental Design and Management, 8(1/2), 13 – 23.
Aje, I.O.﴾2008﴿. Contractor prequalification and award criteria as determinant of construction project performance in Lagos and Abuja, Nigeria. (Unpublished doctoral dissertation) Federal University of Technology, Akure, Nigeria.
Alpekin, O. & Alpekin, N.(2017). Analysis of criteria influencing contractor selection using TOPSIS method. IOP Conference Series: Materials Science and Engineering, 245, 1 – 9.
Alsugair, A.M. (1999). Framework for evaluating Bids of Construction Contracts. Journal of Management in Engineering, 15 (2), 72 – 78.
Alzober, W. & Yaakub, R. (2014). Integrated model for selection the prequalification criteria of contractor. Lecture noted on Software Engineering, 2 (3), 233 – 236.
Asika, N. (2002). Research Methodology in the Behavioural Sciences. Lagos: Longman Nigeria Plc.
Bubshit, A. & Al-Gobali, K.H. (1996). Contractor prequalification in Saudi Arabia. Journal of Management in Engineering, 12(2), 50 - 54.
Budget Monitoring and Price Intelligences Unit (BMPIU) (2005). A manual on public procurement reform programme in Nigeria. State House, Abuja.
Cheug, E.W.L. & Li, H. (2004). Contractor
selection using the analytic network process. Construction Management and Economics, 22, 1021 – 1032.
Cristobal, J.R.S. (2012). Contractor selection using multi criteria decision making methods. Journal of Construction Engineering and Management, 138(6) 751-758.
Egwunatum, S.I., Benjamin, A.M.A. & Daniel, O.O.(2012). Responding to contractor selection problems in construction projects with prequalification model. International Journal of Academic Research, 4(1), 188 - 193.
El-Sawalhi, N., Eaton, D. & Rustom, R. (2007). Forecasting contractor performance using a neutral network and genetic algorithm in a pre-qualification model. Construction Innovation, 8(4), 280 -298.
Field, A. (2009). Discovering statistics using SPSS. London Sage Publication Ltd,.
Holt, G.D., Olomolaiye, P.O. & Harris, F.C. (1994). Applying multi-attribute analysis to contractor selection decisions. European Journal of Purchasing and Supply Management, 1(3), 139 - 148.
Holt, G.D. (1998). Which contractor selection methodology? International Journal of Project Management, 16(3), 153 - 164.
Huang, Xiaohong, (2011). An analysis of the selection of project contractor in the construction management process. International Journal of Business and Management, 6 (3), 184 – 189.
Jennings, P. & Holt, G. (1998). Prequalification and Multi - criteria selection: a measure of contractors’ opinion. Construction Management and Economics, 16, 651- 660.
Khosrowshahi, F. (2001). Neural Network Model for contractors’ prequalification for local authority projects. Building and Environment, 6(3), 315 - 328.
Mangitung, D.M. & Emsley, M.W. (2002). Decision criteria for periodic prequalification in the UK construction industry. Proceedings of the RICS foundation construction and building research conference, Nottingham Trent University, 5th – 6th Sept., 1 - 13.
Marzouk, M. (2008).A Superiority and Inferiority ranking model for contractor selection. Construction innovation: information, process, management, 8(4), 250 - 268.
Ng, S.T., Skitmore, M. & Smith, N.J. (1999). Decision-makers’ perceptions in the formulation of prequalification criteria. Engineering Construction and Architectural Management, 6(2), 155 -165.
Ng, S.T.& Skitmore, M.(2002). Contractor Risks in Design Novate and Construct Contracts. International Journal of Project Management, 20(2), 119 -126.
Obiegbu, M E. (2005). Due Process and the procurement methods in construction industry. Proceedings of the 35th annual general meeting/conference of Nigeria Institute of Building﴾NIOB﴿ Abia state, 10th -14th August, 2005.
Odusami, K.T. (1998). Prequalification and selection of contractors. Construction in Nigeria, 13(1), 26 - 32.
Ogunsanmi, O.E. & Bamisile, A. (1997). Selection of main contractor in Nigeria. Construction in Nigeria, 12(1), 2 - 12.
Okoye, P.U. (2016). Optimising the capacity of Nigeria construction sector for socio – economic sustainability. British Journal of Applied Science and Technology, 16(6), 1 – 16.
Palaneeswaran, E. & Kumaraswamy, M.M. (2000). Contractor selection for Design / Build projects. Journal of Construction Engineering and Management, 126(5), 331- 339.
Pongpeng, J. & Liston, J. (2003a). TenSeM: a multicriteria and multidecision-makers’ model in tender evaluation. Construction Management and Economics, 21, 21-30.
Pongpeng, J. & Liston, J. (2003b). Contractor ability criteria: a view from the Thai construction industry. Construction Management and Economics, 21,267- 282.
Potter, K.J. & Sanvido, V. (1994). Design/build prequalification system. Journal of Management in Engineering, 10 (2), 48 – 56.
Russell, J.S. & Skibniewski, M.J. (1988). Decision criteria in contractor prequalification. Journal of Management in Engineering, 4(1), 48 -164.
Russell, J.S. (1992). Decision models for analysis and evaluation of construction contractors. Construction Management and Economics, 10,185 - 202.
Salama, M., El Aziz, H.A., El Sawah, H. & El Samadony,A. (2006). Investigating the criteria for contractors’ selection and bid evaluation in Egypt. In: Boyd, D.(Ed) proceeding 22nd Annual ARCOM Conference, 4 - 6 September 2006, 531 - 540Birmingham, UK, Association of Researchers in Construction Management,.
Sonmez, M., Yang, J.B. & Holt, G.D. (2001). Addressing the contractor selection problem using an evidential reasoning approach. Engineering Construction and Architectural Management, 8(3), 108 – 210.
Spear, J.E. (2005). Performance improving contractor. Spear Consulting LLC, 1-.4.
Tarawneh, S.A. (2004). Evaluation of pre-qualification criteria: Client perspective; Jordan case study. Journal of Applied Sciences, 4(3), 354 - 363.
Zala, M. I. & Bhatt, R.B. (2011). An approach of contractor selection by Analytical Hieirarchy Process.National Conference on Recent Trends in Engineering and Technology, 13th - 14th May,1 - 6.
Adeagbo, A.(2014). Overview of the Building and construction sector in the Nigeria Economy. JORIND, 12(2), 353 – 366.
Adelekan, I. (2013). Private sector investment decisions in building and construction: increasing, managing and transferring risks; case study of Lagos, Nigeria. Background paper prepared for the Global assessment report on disaster risk reduction, Geneva, Switzerland.
Ajayi, O.M. and Ogunsanmi, O.M. (2013). Decision Makers’ Perceptions of contractor prequalification criteria. Urban and Regional Planning Review: An International Journal of Contemporary Urban and Regional Development from multidisciplinary perspectives, 4 (1 & 2), 115 – 131.
Ajayi, O.M. (2016). Application of Analytical Hierarchy Process (AHP) technique for contractor selection system in Nigeria. Journal of Environmental Design and Management, 8(1/2), 13 – 23.
Aje, I.O.﴾2008﴿. Contractor prequalification and award criteria as determinant of construction project performance in Lagos and Abuja, Nigeria. (Unpublished doctoral dissertation) Federal University of Technology, Akure, Nigeria.
Alpekin, O. & Alpekin, N.(2017). Analysis of criteria influencing contractor selection using TOPSIS method. IOP Conference Series: Materials Science and Engineering, 245, 1 – 9.
Alsugair, A.M. (1999). Framework for evaluating Bids of Construction Contracts. Journal of Management in Engineering, 15 (2), 72 – 78.
Alzober, W. & Yaakub, R. (2014). Integrated model for selection the prequalification criteria of contractor. Lecture noted on Software Engineering, 2 (3), 233 – 236.
Asika, N. (2002). Research Methodology in the Behavioural Sciences. Lagos: Longman Nigeria Plc.
Bubshit, A. & Al-Gobali, K.H. (1996). Contractor prequalification in Saudi Arabia. Journal of Management in Engineering, 12(2), 50 - 54.
Budget Monitoring and Price Intelligences Unit (BMPIU) (2005). A manual on public procurement reform programme in Nigeria. State House, Abuja.
Cheug, E.W.L. & Li, H. (2004). Contractor
selection using the analytic network process. Construction Management and Economics, 22, 1021 – 1032.
Cristobal, J.R.S. (2012). Contractor selection using multi criteria decision making methods. Journal of Construction Engineering and Management, 138(6) 751-758.
Egwunatum, S.I., Benjamin, A.M.A. & Daniel, O.O.(2012). Responding to contractor selection problems in construction projects with prequalification model. International Journal of Academic Research, 4(1), 188 - 193.
El-Sawalhi, N., Eaton, D. & Rustom, R. (2007). Forecasting contractor performance using a neutral network and genetic algorithm in a pre-qualification model. Construction Innovation, 8(4), 280 -298.
Field, A. (2009). Discovering statistics using SPSS. London Sage Publication Ltd,.
Holt, G.D., Olomolaiye, P.O. & Harris, F.C. (1994). Applying multi-attribute analysis to contractor selection decisions. European Journal of Purchasing and Supply Management, 1(3), 139 - 148.
Holt, G.D. (1998). Which contractor selection methodology? International Journal of Project Management, 16(3), 153 - 164.
Huang, Xiaohong, (2011). An analysis of the selection of project contractor in the construction management process. International Journal of Business and Management, 6 (3), 184 – 189.
Jennings, P. & Holt, G. (1998). Prequalification and Multi - criteria selection: a measure of contractors’ opinion. Construction Management and Economics, 16, 651- 660.
Khosrowshahi, F. (2001). Neural Network Model for contractors’ prequalification for local authority projects. Building and Environment, 6(3), 315 - 328.
Mangitung, D.M. & Emsley, M.W. (2002). Decision criteria for periodic prequalification in the UK construction industry. Proceedings of the RICS foundation construction and building research conference, Nottingham Trent University, 5th – 6th Sept., 1 - 13.
Marzouk, M. (2008).A Superiority and Inferiority ranking model for contractor selection. Construction innovation: information, process, management, 8(4), 250 - 268.
Ng, S.T., Skitmore, M. & Smith, N.J. (1999). Decision-makers’ perceptions in the formulation of prequalification criteria. Engineering Construction and Architectural Management, 6(2), 155 -165.
Ng, S.T.& Skitmore, M.(2002). Contractor Risks in Design Novate and Construct Contracts. International Journal of Project Management, 20(2), 119 -126.
Obiegbu, M E. (2005). Due Process and the procurement methods in construction industry. Proceedings of the 35th annual general meeting/conference of Nigeria Institute of Building﴾NIOB﴿ Abia state, 10th -14th August, 2005.
Odusami, K.T. (1998). Prequalification and selection of contractors. Construction in Nigeria, 13(1), 26 - 32.
Ogunsanmi, O.E. & Bamisile, A. (1997). Selection of main contractor in Nigeria. Construction in Nigeria, 12(1), 2 - 12.
Okoye, P.U. (2016). Optimising the capacity of Nigeria construction sector for socio – economic sustainability. British Journal of Applied Science and Technology, 16(6), 1 – 16.
Palaneeswaran, E. & Kumaraswamy, M.M. (2000). Contractor selection for Design / Build projects. Journal of Construction Engineering and Management, 126(5), 331- 339.
Pongpeng, J. & Liston, J. (2003a). TenSeM: a multicriteria and multidecision-makers’ model in tender evaluation. Construction Management and Economics, 21, 21-30.
Pongpeng, J. & Liston, J. (2003b). Contractor ability criteria: a view from the Thai construction industry. Construction Management and Economics, 21,267- 282.
Potter, K.J. & Sanvido, V. (1994). Design/build prequalification system. Journal of Management in Engineering, 10 (2), 48 – 56.
Russell, J.S. & Skibniewski, M.J. (1988). Decision criteria in contractor prequalification. Journal of Management in Engineering, 4(1), 48 -164.
Russell, J.S. (1992). Decision models for analysis and evaluation of construction contractors. Construction Management and Economics, 10,185 - 202.
Salama, M., El Aziz, H.A., El Sawah, H. & El Samadony,A. (2006). Investigating the criteria for contractors’ selection and bid evaluation in Egypt. In: Boyd, D.(Ed) proceeding 22nd Annual ARCOM Conference, 4 - 6 September 2006, 531 - 540Birmingham, UK, Association of Researchers in Construction Management,.
Sonmez, M., Yang, J.B. & Holt, G.D. (2001). Addressing the contractor selection problem using an evidential reasoning approach. Engineering Construction and Architectural Management, 8(3), 108 – 210.
Spear, J.E. (2005). Performance improving contractor. Spear Consulting LLC, 1-.4.
Tarawneh, S.A. (2004). Evaluation of pre-qualification criteria: Client perspective; Jordan case study. Journal of Applied Sciences, 4(3), 354 - 363.
Zala, M. I. & Bhatt, R.B. (2011). An approach of contractor selection by Analytical Hieirarchy Process.National Conference on Recent Trends in Engineering and Technology, 13th - 14th May,1 - 6.
Published
2020-05-05
How to Cite
Ajayi, O. (2020). Contractor Prequalification Criteria (CPC) use in Public Procurement Projects (PPPs) in Nigeria. Journal of Construction Innovation and Cost Management, 1(1), 48-64. Retrieved from https://jcicm.unilag.edu.ng/article/view/2754
Section
Articles
