Assessment of Procurement Risks in FIRS Building Construction Projects in Nigeria

Abstract

The procurement system practiced by the FIRS is constantly challenged with the problems of fraudulent practices, inefficiencies, lack of transparency, professionalism, and non-adherence to procurement code of ethics. This study assessed the procurement related risks in FIRS building construction projects in Nigeria with a view to minimising the problems of fraudulent practices. The study adopted a quantitative approach using structured questionnaires, which were randomly distributed to clients, procurement officers, contractors and consultants of FIRS building projects. The collected data was analysed using percentile, frequencies and Relative Importance Index. The study categorised risks in FIRS procurement into five major groups and found the important risks factors under each group. The top risks factors under ‘Fraud’ were: Kick back, shadow vendors, changes in the bids after formal receipt, suspicion about conflict of interest, and conspiracy amongst bidders. The top risks factors under ‘transparency problems’ were: dishonesty and lack of openness of staff to bidders, non-adherence to award criteria, and improper advertisement of proposal requests. The top risks under ‘competitiveness problems’ were: lack of competition among tenderers and limited issuance of eligibility forms. On the overall, the top procurement related risks were: Kick back, lack of cost effective tenders among the bidders, shadow vendors, changes in the bids after formal receipt, and suspicion about conflict of interest. It is recommended that a system of checks and balances is put in place in FIRS project to forestall the inherent corruption. Also, contractors and consultants with integrity should be engaged in FIRS projects.