Procurement Systems and Contract Pricing Methodsin the Construction Industry: Perspective of Contractors in Kaduna Metropolis, Nigeria

Abstract

The provision of infrastructure is a major task that requires a sustained
effort by both government and the private sector. Unfortunately, the
process leading to its provision such as budgetary provision, contract
pricing, the procurement process leading to contract award and the
quality of work delivered leaves so much to be desired. The methodology
was the quantitative approach where the instrument of a well-structured
questionnaire was used for data collection. 40 (forty) questionnaires
were distributed to construction companies within Kaduna metropolis
and (24) Twenty four were received back which is 60% of the total
distributed. Findings showed that there is still interference in the contract
award process and also, contract prices are sometimes inflated and the
procurement process is not totally transparent. The study recommends
that the Due process office should prepare a standardized price list and
a billing template which should be issued to all Ministries and
Departments (MDAs) for the preparation of Bills of Quantities and Bills
of Engineering Measurement and Evaluation, so as to reduce the inflation
of contract pricing. There should also be sanctions for interference and
for the perpetrators of price hiking.