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Builders flay poor procurement process, project abandonment

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Disturbed by the huge volume of abandoned projects across the country, the Nigerian Institute of Building (NIOB) has asked the government to rejig the procurement methods and eliminate delays in the litigation process.

The institute noted that despite the due process policy in contract awards introduced by the government to ensure the selection of the most appropriate contractor to deliver construction projects, project delivery has been characterized by inefficiency that leads to poor quality, time and cost overrun.

Chairman, Lagos State chapter of the institute, Adelaja Adekanmbi who stated posited that sound procurement processes, which is a function of cost and successful completion of projects on schedule, and at the right cost without recourse to arbitration or litigation is lacking in the country.

He said all professionals in the building environment must see appropriate procurement methods in its true light and recognize the distinction between different procurement methods for different projects.

Adekanmbi who spoke ahead of its forum on, “Appropriate procurement method: ensuring effective building production”, said the time has come when builders in Nigeria need to align themselves with procurement methods that would effectively manage time tested and valued building production processes.

“Appropriate procurement methods when holistically analysed at inception and put to use would undoubtedly help in reducing, if not eliminating cost overrun that culminate from the extension of time due to unforeseen mistakes from any of the various stakeholders on such projects.

“The system is not right and the political will to do the right thing is lacking in government. Most of the abandoned projects seen everywhere are matters in court, the court system might go on for ten years and the projects would be standing there unattended to.

“There is no better time than now to discuss salient issues like procurement in Nigeria building industry, with the rising inflation index on resources/ production and economic downturn (reduction in business activities) that impact negatively both on individual and corporate bodies’ purchasing power and by extension reduced appetite for new construction projects”, he said.

The Chairman, AGM planning committee, Mr. Sunday Yusuf, on his part said the appropriate procurement method is urgently needed for the economic development of Nigeria.

According to him, all over the world, it’s generally believed that the success of a construction project is largely dependent upon the type of procurement method applied.


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