CONCEPTUAL FRAMEWORK FOR CONSTRUCTION PROCUREMENT RISKS MANAGEMENT IN NIGERIAN TERTIARY INSTITUTIONS

Abstract

The procurement system practiced by public tertiary institutions in Nigeria is bedevilled with problems of mismanagement and corruption. These institutions are part of government Ministries, Departments and Agencies (MDAs) responsible for implementing the Procurement Act under the monitoring and supervision of the Bureau for Public Procurement (BPP). One of the challenges is the failure to determine the risks limiting project delivery success. These risk factors can cause a significant increase in the procurement cost leading to increase in the overall project cost, time and poor quality. The existing procurement risks management frameworks failed to consider the 9 essential steps highlighted by the BPP and failed to provide linkages between procurement risk management and procurement process. Equally, some key aspects of the 9 essential steps used as guidelines by most tertiary institutions, like appropriate market surveys, extensive feasibility and viability studies, fund sourcing/cash flow analysis, selection of procurement routes/options, and contract management plans, are most times being compromised by tertiary institutions in Nigeria. These problems attributed to major risks in procurement management process of these institutions. Thus, this research aimed to develop a conceptual framework for construction procurement risks management in Nigerian Tertiary institutions. The research adopted a desktop methodology, by conducting a thorough literature search on the existing procurement management frameworks, which informed the development of the conceptual framework for effective procurement risks management in Nigerian tertiary institutions. The conceptual framework revealed that risks management practices must be effective throughout the procurement process (the 9 essential steps) for effective procurement risks management, which will affect project objectives of meeting with time, cost, quality, environment and safety. It is recommended that the conceptual framework should be adopted for procurement risks management in tertiary institution to improving project delivery.