MANAGEMENT OF NEED ASSESSMENT RISKS IN PROCUREMENT OF TERTIARY INSTITUTION CONSTRUCTION PROJECTS IN NIGERIA

Abstract

The need assessment stage of project procurement is considered the first step in the public procurement process in Nigeria which begins with preparation of needs, where all requirements are clearly defined to determine the best solution between a need and other alternatives. However, this stage is confronted with risks which affect contract parties and project objectives. This paper aims to assess needs assessment risks management startegies for construction procurement of tertiary institution in Nigeria with a view to ensuring effective delivery of construction projects. The study employed the survey design approach utilising the quantitative method. A total of 240 structured questionnaires were administered to the respondents (contractors, procurement officers, and building professionals) of procurement and physical planning units of tertiary institutions in Nigeria and a total of 175 questionnaires were returned and found valid for analysis, representing a response rate of 72.91%. The collected data were analysed using Relative Importance Index (RII) to identify relatively the most important risks factors in the needs assessment of procurement. Regression analysis was employed to determine the impact of the identified need assessment risk factors on parties and the impact on project objectives. The study found that conflict of interest in procurement needs identification; poor communication between members during procurement need identification; poor project briefing; and inadequate financial capability of clients as the important need assessment risks factors. The study also concludes that the needs assessment risks were found to have statistical significant impact on project objective time, cost, quality, safety and environment; as well as the parties to the contract. The study concludes that risks reduction, risks avoidance/prevention, and risk sharing are important risks response strategies in managing needs assessment risks. It is recommended that procurement process of tertiary institution projects should focused on in depth assessment and management of the risks at the early stage of needs identification/needs assessment in order to ensure effective delivery of construction projects.