INHERENT RISK FACTORS IN THE PROCUREMENT PROCESS OF TERTIARY INSTITUTIONS IN NIGER STATE

Abstract

One of the challenges facing construction procurement in public tertiary institution is the failure to determine the risks limiting its success. These risks can cause a significant increase in the procurement cost leading to an increase in the overall project cost, time extension and poor quality. The purpose of this study was to examine inherent risk factors in procurement process of public tertiary institution in Niger State with a view to ensuring satisfactory project delivery. The study adopted the survey design approach by administering well structured questionnaire to procurement officers and building professionals in the procurement and physical planning units of the tertiary institutions. A total of 197 questionnaires were administered to Procurement officers, architects, quantity surveyors, engineers and contractors of which 187 were returned and found valid for analysis. The data collected was analysed using Relative Important Index (RII). The results revealed the following important risks factors under each category. Procurement plan (need assessment-improper project planning and budgeting and impractical time frame. Selection of procurement strategy (political interference and adopted procurement policy). Budgetary appropriation (political interference and insufficient funding). Advertisement (inappropriate time allocation and non-adherence to procurement code of ethics). Transparent prequalification (lack of commitment to transparency and misunderstanding of contract clauses). Bid submission (unacceptable terms and conditions to bidders and onerous requirements on the bidders in the contract conditions). Bid opening (actual/perceived breach of confidentiality, and favouritism in providing information). Bid evaluation (inappropriate evaluation criteria and un-confidential tender evaluation process). Tender board approval (political interference and conflict of interest) and contract execution (poor communication gap between project team). From these results, risk factors are inherent throughout the construction procurement processes of tertiary institutions in Nigeria. The study recommends that adequate management of these procurement risks would translate into efficient delivery of construction projects.