Structural Equation Modelling of Public Construction Procurement System Implementation in Nigeria

Abstract

Various procurement methods have been deployed by government organisations to deliver vital infrastructure to support socio-economic development in different spheres of life in Nigeria. However, there is a lack of empirical understanding relating to the contribution of public procurement process, barriers, drivers and selection criteria combined to project delivery in Nigeria context. This study identified five major constructs which were conceptualized to establish how different procurement options influence project delivery. The constructs were operationalized and developed into a questionnaire in a cross-sectional study. Data were sought from professionals involved in the management, design and operations of construction projects in Lagos and Abuja (i.e. project manager, architects, engineers, quantity surveyors, and procurement officers). The data were analysed using Partial least Square Structural Equation Modelling (PLS-SEM) in order to determine the link among the constructs interrogated. The findings indicated that all the latent variables included in the conceptual model jointly contributed 59 per cent of variance explained. It was also revealed that drivers of procurement selection and selection criteria are significantly related to effective project delivery. Findings from this research show that for project to be successful in terms of cost, time, and other characteristics as stated in this paper, the most critical approaches to adopt are design-and-build and collaborative procurement. This implies that making the correct choice of construction procurement strategies is a recipe for project success. Government authorities and business organizations seeking infrastructure and procurement system improvements at various levels could use the developed model to improve project delivery.