CONTRACTORS’ TENDER-RELATED RISKS INFLUENCE ON COST AND TIME DELIVERY OF CONSTRUCTION PROJECTS IN ABUJA, NIGERIA

Abstract

The construction industry is considered a high-risk sector owing to different factors such as the uniqueness and complexity of projects, diverse stakeholders’, and procurement systems. The study aimed to assess the influence of pre-contract tender-related risks on the post-contract performance of construction projects. A survey-based research design was adopted for data collection using a well-structured questionnaire administered to construction professionals in Abuja that were purposively selected. The data gathered from 102 respondents were analysed using descriptive statistics and paired sample T-test. The study found that two risk factors; ‘low contractor competence’ and ‘unforeseen site condition’ ranked among the top three important risks throughout both pre-contract post-contract stages. It was also discovered that although both pre- and post-contract risks have large effects on the cost and time performance of construction projects, contractors worry more about the cost of work at tendering stage. The three top-ranked strategies for minimising the effects of tender-related risks on construction projects' performance identified are: top management understanding of modern techniques and principles needed for efficient and effective tendering; effective and efficient documentation preparations; and studying project drawings by comparing specifications with actual conditions on site. Contractors’ most significant risks arise from the buildability of designs, level of quality (both at pre-contract stage) and effects of the deficiencies in the contractor’s own competence (at post-contract stage). Therefore, periodic training workshops on tendering risks management will help ensure that adverse effects of tender-related risks are minimized.