Constraints of Nigeria Indigenous Construction Contractors (NICCS) In a Competitive Business Environment
Keywords:
Capacity, competition, infrastructure, patronage, performance
Abstract
Nigeria Indigenous Construction Contractor (NICC) is facing a lot of constraints among which are the quest for survival and relevance in the Nigeria construction sector. Majority of high net-worth construction projects are awarded and executed by foreigners’ managed firms which constitute less than 5 percent of the total number of construction companies operating in Nigeria. This has put the NCCs into a precarious condition as the nation’s construction sector is completely monopolized by foreigners. However, the NICCs are the architects of their own misfortune as over the years, researchers have observed that the outputs of construction activities by NICCs fall below the expected quality standard required, as such, clients’ preference for foreigners’ managed construction companies. This study sets out to investigate the causes of these constraints and why NICCs are majorly predisposed to poor project performance. The study adopted the review of literatures as well as the use of questionnaire to elicit information from construction practitioners. The study identified 19 factors, ranked in order of importance on why clients prefer foreigners’ managed construction enterprise in Nigeria. Factor analysis was used to group these factors into 5 principal factors namely: poor monitoring, controlling and funding challenges, bankruptcy and cost overruns, technical issues, site organization and layout, and materials and construction methods. The findings of the study will assist in improving the competitiveness of NICCs, by so doing; reduce the cost of construction as the competition nest of performing contractors in Nigeria would be widened.
References
REFERENCES
Achuenu, E., Izam, Y. D., &Bustani, S. A. (2000). Investigating the activities of indigenous contractors in the Nigerian construction industry. Nigeria Journal of Construction Technology and Management, 3(1), 91-103.
Adam, O. (1997). Contractor development in Nigeria: Perception of contractors and professionals. Construction Management and Economics, 15(1), 95-108.
Adeagbo, A. (2014). Overview of the building and construction sector in the Nigerian economy. JORIND,12(2), 349-366.
Agumba, J. N., Adegoke, I. O. &Otiena, F. (2005). Evaluating project management techniques in small and medium enterprises delivering infrastructure in South Africa construction industry. Proceedings of 3rd Postgraduate Conference 2005. Construction Industry Development, Eskom Convention Center, Midrand, Johannesburg, South Africa, 9th-11th October, 52-65.
Agwu, M. O., &Olele, H. E. (2014). Fatalities in the Nigerian construction industry: A case of poor safety culture. British Journal of Economics, Management & Trade, 4(3), 431-452.
Aibinu, A. & Odeyinka, H. A. (2006). Construction delays and their causative factors in Nigeria, Journal of Construction Engineering and Management, 132(7), 667-677.
Aibinu, A., & Jagboro, G. (2002) The effects of construction delays on project delivery in Nigerian construction industry. International Journal of Project Management, 20(8), 593-599.
Akintunde, I. (2003). The Nigerian construction industry: Past, present, problems and Prospects.Ibadan: Ibadan University Press.
Aniekwu, A. N., & Audu, H. O. (2010). The effects of management on productivity: a comparative study of indigenous and foreign firms in the Nigerian construction industry. International Journal of Engineering.4(2), 271-282.
Aniekwu, A. N.,&Okpala, D. C. (1987) Contractual arrangements and the performance of the Nigerian construction industry (the structural components). Construction Management and Economics,6(1), 3-11.
Bala, K., Bello, A., Kolo, B. A., &Bustani, S. A. (2009). Factors inhibiting the growth of local construction firms in Nigeria. Proceedings of 25th ARCOM Conference, 7-9 Sept. 2009 (pp. 351-359). Nottingham U.K.: ARCOM.
Balogun, A. (2016). Infrastructure development in Nigeria: Better late than never. Retrieved on 21/01/2018 from https://www.pwc.com/ng/en/assets/pdf/infrastructure-development-in-nigeria.pdf
Chiang, Y. H., Tao, L., & Wong, F. K. (2015). Causal relationship between construction activities, employment and GDP: The case of Hong Kong. Habitat International, 46, 1-12.
Chilipunde, R. L. (2010). Constraints and challenges faced by small, medium and micro enterprise contractors in Malawi. (Master’s Thesis). Nelson Mandela Metropolitan University, South Africa.
CIB (1999). Managing construction industry development in developing countries: Report on the First Meeting of the CIB Task Group 29. Arusha, Tanzania, 21-23 September. Rotterdam.
Dantata, S. A. (2008).The general overview of the Nigerian construction industry.(Master Thesis). Massachusetts Institute of Technology, USA. Available online at http://dspace.mit.edu/ handle/ 1721.1/44272 on 21/06/2018.
Debois, S. (2016). 9 advantages and disadvantages of questionnaires. Retrieved January 7, 2018 from https://surveyanyplace.com/questionnaire-pros-and-cons/
Elinwa, A. U., & Joshua, M. (2001). Time overrun factors in Nigeria construction industry. Journal of Construction Technology and Management, 127(5), 419-425.
Emuze, F.A. (2011). Performance improvement in South Africa construction industry. (Doctoral dissertation). Nelson Mandela Metropolitan University., South Africa.
Gale, A.W., & Fellows, R. F. (1990). Challenge and innovation: the challenge to the construction industry, report on a conference organized by the UK Association of Researchers in Construction Management. Construction Management and Economics, 8(4), 431-436.
Gregori, T. &Pietroforte, R. (2015).An input-output analysis of the construction sector in emerging markets. Construction Management and Economics, 23(2), 134-145. doi.org/10.1080/01446193.2015.1021704
Idoro, G. I. (2004). The effect of globalisation on safety in the construction industry in Nigeria. Proceedings: The International Symposium on Globalisation and Construction. School of Civil Engineering, Asian Institute of Technology, Bangkok, Thailand, November.
Idoro, G. I. (2007). A comparative study of direct labour and design-tender-construct procurement systems in Nigeria. A Ph.D. Thesis. Department of Building, University of Lagos, Akoka, Lagos, Nigeria.
Idoro, G. I. (2010). Influence of quality performance on clients' patronage of indigenous and expatriate construction contractors in Nigeria. Journal of Civil Engineering and Management, 16(1), 65–73.
Idoro, G. I. (2012). Influence of the monitoring and control strategies of indigenous and expatriate Nigerian contractors on project outcome. Journal of Construction in Developing Countries, 17(1), 49–67.
Inuwa, I. I., Wanyona, G. &Diang'a, S. (2014). Construction procurement systems: Influencing factors for Nigerian indigenous contractors’ project planning. International Journal of Engineering Research and Technology, 3(4): 1043-1050.
Kayanula, D. &Quartey, P. (2000). The policy environment for promoting small and medium-sized enterprises in Ghana and Malawi. Institute for Development Policy and Management, University of Manchester, Manchester, Working Series Paper 15. www.devinit.org/findev/Fd-wp15
Laryea, S. (2010). Challenges and Opportunities Facing Contractors in ghana. In: Laryea, S., Leiringer, R. and Hughes, W. (Eds) Procs West Africa Built Environment Research (WABER) Conference, 27-28 July 2010, Accra, Ghana, 215-226.
Laufer A, & Ledbetter, W. B. (1986). Assessment of safety performance measures at construction sites. Journal of Construction Engineering and Management, 112(4), 530-542.
Mansfield, N. R., Ugwu, O. O. & Doran, T. (1994). Causes of delay and cost overruns in Nigerian construction projects, International Journal of Project Management, 12(4), 254–260.
Nedozi, ObasanmiandIghata (2014). Infrastructural development and economic growth in Nigeria: using simultaneous equation. Journal of Economics, 5(3), 325.332.
Nnabugwu, F. (2017, February 24). Infrastructure development will drive economic growth, create wealth. Retrieved from https://www.vanguardngr.com/2017/02/infrastructure-development-will-drive-economic-growth-create-wealth-adeosun/
Norusis, M. J. (2000). SPSS 10.0 guide to data analysis, Englewood Cliffs N.J, Prentice Hall.
Odediran, S. J., Adeyinka, B. F., Opatunji, O. A., & Morakinyo, K. O. (2012). Business structure of indigenous firm in the Nigerian construction industry. International Journal of Business Research and Management. 3(5),255-264.
Ofori, G. (2000). Challenges for construction industries in developing countries. Proceedings of the Second International Conference of the CIB TG 29, pp. 1–11,Gaborone, Botswana, November.
Ogbebor, P.O. (2002). Enhancing indigenous construction industry as a National goal in Nigerian development. In I. Akintunde (Ed.), The Nigerian Construction Industry: Past, Present, Problems and Prospects (pp.230-239). Ibadan: Ibadan University Printery.
Ogunlana, S.O. (2010). Sustaining the 20: 2020 vision through construction: A stakeholder participatory approach. Distinguished lecture Series of the School of Postgraduate Studies, University of Lagos, delivered on February 10, 2010.
Oladimeji, O., & Ojo, G. K. (2012). An appraisal of indigenous limited liability construction company in south-western Nigeria. Proceedings of the 4th WABER Conference, 24-26 July, 2012, (pp. 1095-1109). Abuja-Nigeria.
Olowookere, E. O. (1988). Problems of construction management in Nigeria. Paper presented to the workshop on National Construction Policy, ASCON, Badagry - Lagos, Nigeria.
Oluwakiyesi, T. (2011). Nigerian construction industry: A haven of Opportunities. Vetiva Capital Management Limited. Retrieved on 21/01/2018 from https://www.proshareng.com/admin/upload/reports/VetivResearchConstructioSectorReportMay2011.pdf
Onengiyeofori, O. O. (2016). Risk management system to guide building construction projects’ in developing countries: A case study of Nigeria. (Doctoral Dissertation). University of Wolverhampton, United Kingdom. https://core.ac.uk/download/pdf/77012048.pdf
Oseni, F. A. (2002). Need to revive our national development plans. In I. Akintunde (Ed.), The Nigerian construction industry: past, present, problems and prospects (pp.17-55). Ibadan: Ibadan University Press.
Ramokolo, B. & Smallwood, J. (2008). The capacity of emerging civil engineering contractors. ACTA Structilia, 15(2), 45-74.
Rwelamila, P. D., Henjewele, C. & Mkandawire, S. (2013). Capacity building in emerging economies through international construction ventures - case study of the NMPP project. Proceedings of ARCOM Conference.
Rwelamila, P. D., Lobelo, L., &Ebohon, J. (1997). Factors associated with insolvencies amongst civil engineering contractors in South Africa. Proceedings of the 2nd International RICS COBRA Research Conference University of Portsmouth. United Kingdom.
Sawhney, A., Agnihotri, R., & Paul, V. K. (2014). Grand challenges for the Indian construction industry. Built Environment Project and Asset Management, 4(4), 317-334.
Selleh, R. (2009). Critical success factors of project management for Brunei construction projects: Improving project performance.(DoctoralDissertation). Queensland University of Technology, Australia. https://eprints.qut.edu.au/38883/1/Rohaniyati_Salleh_Thesis.pdf
Songer, A., Chinowsky, P., & Butler, C. (2006) Emotional intelligence and leadership behaviour in Construction executives. In Proceedings of 2nd Specialty Conference on Leadership and Management in Construction, May 4–6, 248–58Grand Bahama Island, Bahamas,.
The World Bank (2016). Developing housing finance. https://openknowledge. worldbank.org/handle/10986/25780
Ugochukwu, S. C., & Onyekwena, T. (2014). Participation of indigenous contractors in Nigerian public sector construction projects and their challenges in Managing working capital. International Journal of Civil Engineering, Construction and Estate Management, 1(1), 1-21.
Yilmaz, A., & Ergonul, S. (2011). Selection of contractors for middle sized projects in Turkey. Gazi University Journal of Science, 24(3), 477-485.
Achuenu, E., Izam, Y. D., &Bustani, S. A. (2000). Investigating the activities of indigenous contractors in the Nigerian construction industry. Nigeria Journal of Construction Technology and Management, 3(1), 91-103.
Adam, O. (1997). Contractor development in Nigeria: Perception of contractors and professionals. Construction Management and Economics, 15(1), 95-108.
Adeagbo, A. (2014). Overview of the building and construction sector in the Nigerian economy. JORIND,12(2), 349-366.
Agumba, J. N., Adegoke, I. O. &Otiena, F. (2005). Evaluating project management techniques in small and medium enterprises delivering infrastructure in South Africa construction industry. Proceedings of 3rd Postgraduate Conference 2005. Construction Industry Development, Eskom Convention Center, Midrand, Johannesburg, South Africa, 9th-11th October, 52-65.
Agwu, M. O., &Olele, H. E. (2014). Fatalities in the Nigerian construction industry: A case of poor safety culture. British Journal of Economics, Management & Trade, 4(3), 431-452.
Aibinu, A. & Odeyinka, H. A. (2006). Construction delays and their causative factors in Nigeria, Journal of Construction Engineering and Management, 132(7), 667-677.
Aibinu, A., & Jagboro, G. (2002) The effects of construction delays on project delivery in Nigerian construction industry. International Journal of Project Management, 20(8), 593-599.
Akintunde, I. (2003). The Nigerian construction industry: Past, present, problems and Prospects.Ibadan: Ibadan University Press.
Aniekwu, A. N., & Audu, H. O. (2010). The effects of management on productivity: a comparative study of indigenous and foreign firms in the Nigerian construction industry. International Journal of Engineering.4(2), 271-282.
Aniekwu, A. N.,&Okpala, D. C. (1987) Contractual arrangements and the performance of the Nigerian construction industry (the structural components). Construction Management and Economics,6(1), 3-11.
Bala, K., Bello, A., Kolo, B. A., &Bustani, S. A. (2009). Factors inhibiting the growth of local construction firms in Nigeria. Proceedings of 25th ARCOM Conference, 7-9 Sept. 2009 (pp. 351-359). Nottingham U.K.: ARCOM.
Balogun, A. (2016). Infrastructure development in Nigeria: Better late than never. Retrieved on 21/01/2018 from https://www.pwc.com/ng/en/assets/pdf/infrastructure-development-in-nigeria.pdf
Chiang, Y. H., Tao, L., & Wong, F. K. (2015). Causal relationship between construction activities, employment and GDP: The case of Hong Kong. Habitat International, 46, 1-12.
Chilipunde, R. L. (2010). Constraints and challenges faced by small, medium and micro enterprise contractors in Malawi. (Master’s Thesis). Nelson Mandela Metropolitan University, South Africa.
CIB (1999). Managing construction industry development in developing countries: Report on the First Meeting of the CIB Task Group 29. Arusha, Tanzania, 21-23 September. Rotterdam.
Dantata, S. A. (2008).The general overview of the Nigerian construction industry.(Master Thesis). Massachusetts Institute of Technology, USA. Available online at http://dspace.mit.edu/ handle/ 1721.1/44272 on 21/06/2018.
Debois, S. (2016). 9 advantages and disadvantages of questionnaires. Retrieved January 7, 2018 from https://surveyanyplace.com/questionnaire-pros-and-cons/
Elinwa, A. U., & Joshua, M. (2001). Time overrun factors in Nigeria construction industry. Journal of Construction Technology and Management, 127(5), 419-425.
Emuze, F.A. (2011). Performance improvement in South Africa construction industry. (Doctoral dissertation). Nelson Mandela Metropolitan University., South Africa.
Gale, A.W., & Fellows, R. F. (1990). Challenge and innovation: the challenge to the construction industry, report on a conference organized by the UK Association of Researchers in Construction Management. Construction Management and Economics, 8(4), 431-436.
Gregori, T. &Pietroforte, R. (2015).An input-output analysis of the construction sector in emerging markets. Construction Management and Economics, 23(2), 134-145. doi.org/10.1080/01446193.2015.1021704
Idoro, G. I. (2004). The effect of globalisation on safety in the construction industry in Nigeria. Proceedings: The International Symposium on Globalisation and Construction. School of Civil Engineering, Asian Institute of Technology, Bangkok, Thailand, November.
Idoro, G. I. (2007). A comparative study of direct labour and design-tender-construct procurement systems in Nigeria. A Ph.D. Thesis. Department of Building, University of Lagos, Akoka, Lagos, Nigeria.
Idoro, G. I. (2010). Influence of quality performance on clients' patronage of indigenous and expatriate construction contractors in Nigeria. Journal of Civil Engineering and Management, 16(1), 65–73.
Idoro, G. I. (2012). Influence of the monitoring and control strategies of indigenous and expatriate Nigerian contractors on project outcome. Journal of Construction in Developing Countries, 17(1), 49–67.
Inuwa, I. I., Wanyona, G. &Diang'a, S. (2014). Construction procurement systems: Influencing factors for Nigerian indigenous contractors’ project planning. International Journal of Engineering Research and Technology, 3(4): 1043-1050.
Kayanula, D. &Quartey, P. (2000). The policy environment for promoting small and medium-sized enterprises in Ghana and Malawi. Institute for Development Policy and Management, University of Manchester, Manchester, Working Series Paper 15. www.devinit.org/findev/Fd-wp15
Laryea, S. (2010). Challenges and Opportunities Facing Contractors in ghana. In: Laryea, S., Leiringer, R. and Hughes, W. (Eds) Procs West Africa Built Environment Research (WABER) Conference, 27-28 July 2010, Accra, Ghana, 215-226.
Laufer A, & Ledbetter, W. B. (1986). Assessment of safety performance measures at construction sites. Journal of Construction Engineering and Management, 112(4), 530-542.
Mansfield, N. R., Ugwu, O. O. & Doran, T. (1994). Causes of delay and cost overruns in Nigerian construction projects, International Journal of Project Management, 12(4), 254–260.
Nedozi, ObasanmiandIghata (2014). Infrastructural development and economic growth in Nigeria: using simultaneous equation. Journal of Economics, 5(3), 325.332.
Nnabugwu, F. (2017, February 24). Infrastructure development will drive economic growth, create wealth. Retrieved from https://www.vanguardngr.com/2017/02/infrastructure-development-will-drive-economic-growth-create-wealth-adeosun/
Norusis, M. J. (2000). SPSS 10.0 guide to data analysis, Englewood Cliffs N.J, Prentice Hall.
Odediran, S. J., Adeyinka, B. F., Opatunji, O. A., & Morakinyo, K. O. (2012). Business structure of indigenous firm in the Nigerian construction industry. International Journal of Business Research and Management. 3(5),255-264.
Ofori, G. (2000). Challenges for construction industries in developing countries. Proceedings of the Second International Conference of the CIB TG 29, pp. 1–11,Gaborone, Botswana, November.
Ogbebor, P.O. (2002). Enhancing indigenous construction industry as a National goal in Nigerian development. In I. Akintunde (Ed.), The Nigerian Construction Industry: Past, Present, Problems and Prospects (pp.230-239). Ibadan: Ibadan University Printery.
Ogunlana, S.O. (2010). Sustaining the 20: 2020 vision through construction: A stakeholder participatory approach. Distinguished lecture Series of the School of Postgraduate Studies, University of Lagos, delivered on February 10, 2010.
Oladimeji, O., & Ojo, G. K. (2012). An appraisal of indigenous limited liability construction company in south-western Nigeria. Proceedings of the 4th WABER Conference, 24-26 July, 2012, (pp. 1095-1109). Abuja-Nigeria.
Olowookere, E. O. (1988). Problems of construction management in Nigeria. Paper presented to the workshop on National Construction Policy, ASCON, Badagry - Lagos, Nigeria.
Oluwakiyesi, T. (2011). Nigerian construction industry: A haven of Opportunities. Vetiva Capital Management Limited. Retrieved on 21/01/2018 from https://www.proshareng.com/admin/upload/reports/VetivResearchConstructioSectorReportMay2011.pdf
Onengiyeofori, O. O. (2016). Risk management system to guide building construction projects’ in developing countries: A case study of Nigeria. (Doctoral Dissertation). University of Wolverhampton, United Kingdom. https://core.ac.uk/download/pdf/77012048.pdf
Oseni, F. A. (2002). Need to revive our national development plans. In I. Akintunde (Ed.), The Nigerian construction industry: past, present, problems and prospects (pp.17-55). Ibadan: Ibadan University Press.
Ramokolo, B. & Smallwood, J. (2008). The capacity of emerging civil engineering contractors. ACTA Structilia, 15(2), 45-74.
Rwelamila, P. D., Henjewele, C. & Mkandawire, S. (2013). Capacity building in emerging economies through international construction ventures - case study of the NMPP project. Proceedings of ARCOM Conference.
Rwelamila, P. D., Lobelo, L., &Ebohon, J. (1997). Factors associated with insolvencies amongst civil engineering contractors in South Africa. Proceedings of the 2nd International RICS COBRA Research Conference University of Portsmouth. United Kingdom.
Sawhney, A., Agnihotri, R., & Paul, V. K. (2014). Grand challenges for the Indian construction industry. Built Environment Project and Asset Management, 4(4), 317-334.
Selleh, R. (2009). Critical success factors of project management for Brunei construction projects: Improving project performance.(DoctoralDissertation). Queensland University of Technology, Australia. https://eprints.qut.edu.au/38883/1/Rohaniyati_Salleh_Thesis.pdf
Songer, A., Chinowsky, P., & Butler, C. (2006) Emotional intelligence and leadership behaviour in Construction executives. In Proceedings of 2nd Specialty Conference on Leadership and Management in Construction, May 4–6, 248–58Grand Bahama Island, Bahamas,.
The World Bank (2016). Developing housing finance. https://openknowledge. worldbank.org/handle/10986/25780
Ugochukwu, S. C., & Onyekwena, T. (2014). Participation of indigenous contractors in Nigerian public sector construction projects and their challenges in Managing working capital. International Journal of Civil Engineering, Construction and Estate Management, 1(1), 1-21.
Yilmaz, A., & Ergonul, S. (2011). Selection of contractors for middle sized projects in Turkey. Gazi University Journal of Science, 24(3), 477-485.
Published
2020-05-05
How to Cite
Akinsiku , O. E., & Oyediran , O. S. (2020). Constraints of Nigeria Indigenous Construction Contractors (NICCS) In a Competitive Business Environment. Journal of Construction Innovation and Cost Management, 1(1), 92-102. Retrieved from https://jcicm.unilag.edu.ng/article/view/2757
Section
Articles
