A Comparative Analysis of Methods of Procuring Plant and Equipment in execution of Construction Projects

Abstract

Contractors encounter a lot of problems in decision making on how to acquire plant and equipment to execute project to attain cost effectiveness to either purchase or to hire. The paper examined the relationship between procurement method preference and some selected variables (value of contract, contract size, contract type and contract period) A total of 75 questionnaires were administered to different indigenous construction companies in Abuja using the random sampling method. The data were analysed using simple spearman correlation, simple percentage and Relative importance index. It was concluded that it is more economical to hire plants that are not frequently put to use (specialized plants). High cost of equipment was the major reason contractors preferred to hire than purchase plant. It was recommended that government should make efforts to reduce hire rate and a national Centre for manufacturing of construction equipment be established partnering with stakeholders in the construction industry.