FFECT OF MATERIALS PROCUREMENT RISKS FACTORS ON PERFORMANCE OF BUILDING PROJECTS IN ABUJA, NIGERIA

Abstract

ABSTRACT The problem of building materials procurement risks remains a serious problem requiring urgent attention in the Nigerian building construction industry. This problem could be linked to slowness of the industry in adapting modern techniques on risks management in building construction projects. Thus, this research aims to appraise the effect of material procurement risks factors on the performance of building projects in with a view to improving project performance in Nigeria.The study adopted a survey design approach using quantitative method. Data were collected using well-structured questionnaire administered to 153 respondents including, procurement officers, project managers, site managers and contractors of 61-active building construction sites that are located and operating within Abuja, using stratified random sampling method. A total of 139 questionnaires were retrieved from 153 administered. The collected data were analysed using descriptive methods, including frequencies, percentages, Mean Item Score (MIS) and Relative Importance Index (RII). The study revealed that inflation, third party delay and default, uncertain research and development results were the inherent building materials procurement risks, with average RII value of 0.75. Also, the prominent building materials procurement risks that have impact on the cost, time, quality performance on building projects were: design too rigid for change, unexpected changes in demand, bad debt, inflation, quality control and assurance, security, differing site condition, responsiveness of suppliers, quality control and assurance. Also, the most important building materials procurement risk mitigation strategies are: reducing the scope of the contract, adding resources or time to the contract, avoiding contractor with unproven track record, using a proven approach instead of a new one, contingency plans, error tolerant design-user interface, due diligence and policies design to reduce risk. Based on the findings, the study recommended proper implementation of the ways of dealing and managing risks, as it would help particularly the building sectors for managing building materials procurement risks.