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ASSESSMENT OF THE PROCUREMENT METHODS ADOPTED BY PUBLIC

PROCURING ENTITIES IN ONDO STATE, NIGERIA

Conference Paper · September 2017

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NIGERIAN INSTITUTE OF QUANTITY SURVEYORS:
3RD RESEARCH CONFERENCE– NIQS RECON3
25TH – 27TH SEPTEMBER 2017

THEME:
Confluence of Research, Theory and Practice in the
Built Environment

EDITORS:
PROF. YAKUBU IBRAHIM
DR. NURU GAMBO
DR. IDRIS KATUN
 ASSESSMENT OF THE PROCUREMENT METHODS ADOPTED BY
PUBLIC PROCURING ENTITIES IN ONDO STATE, NIGERIA

O. J. Osanyinro1 and D. O. Aghimien2

1
Murty International Limited, Suite 308, Midel Centre, Plot 14, Off Oladipo Diya way, Sector
Centre D, Gudu, Abuja, Nigeria
2
Department of Quantity Surveying, Federal University of Technology, Akure, Ondo State,
Nigeria

ABSTRACT
A procurement method determines the overall framework and structure of responsibilities for
participants in a contract process and thus, a key factor contributing to overall project success.
However, it has been observed that many procuring entities‘ choice of procurement method is
perfunctory and based largely on familiarity with a particular procurement method rather than an
informed choice based on project needs assessment. This study therefore assessed the procurement
of public works by procuring entities in Ondo State, Nigeria with interest in their level of adoption
of various procurement methods available and the factors influencing their choice of a
procurement method. The study adopted a survey approach and purposive sampling focused on
entities saddled with procurement responsibilities. Three Ministries, three Local Governments,
seven Agencies and three Tertiary Institutions within the State participated in the survey. Data
were gathered through the administering of questionnaire to construction professionals in targeted
entities. Percentage, frequency, MIS, ANOVA and One sample t-test were adopted for data
analyses. The study revealed that direct labour and traditional method are the most used
procurement methods. The need for value for money and public accountability, speed, completion
within stated duration and the project complexity are the major factors influencing the choice of a
procurement method. The study further recommends that procurement entities should give
adequate consideration to needs assessment and specific project requirement in determining the
procurement method to be employed as no single method best satisfies the requirements of every
project in all situations
Keywords: Nigerian Construction Industry, Procurement Method, Procuring Entities, Project
Performance, Public Projects.

INTRODUCTION
The recent economic downturn in Nigeria has necessitated the adoption of more prudent
methods of delivering construction projects. Thus, procuring entities of the government are
faced with the challenge of effectively procuring projects within the meagre budget of the
government. Masterman (1996) described procurement as the organisational structure needed
to design and build construction projects for a specific client. Ogunsanmi and Bamisile
(1997) viewed it as the management of design and production of construction projects from
inception to completion. Love et al. (1998) noted that the procurement process determines the
overall framework and structure of responsibilities and authorities for participants within the
building process and thus, it is a key factor contributing to overall client satisfaction and
project success.

537
However, studies have shown that most clients and client‘s representatives have been using a
specific procurement system by default without making a deliberate choice or proper
consideration of the method that best suit their needs, and that of the project. Others base it
largely on their familiarity with a particular procurement method (Thomas et al. 2002;
Okunlola, 2012). The result of this is the poor performance of construction projects that has
characterised the construction industry in Nigeria and in some other developing countries
around the world, (Akindoyeni, 1989; Maizon et al. 2006; Ogunsemi and Jagboro, 2006;
Ogunsemi and Saka, 2006; Vetiva, 2011; Aghimien et al. 2017). Considering the harsh
economic situation of the country, ―getting it right‖ from the onset, through the adoption of
the best suited procurement system is necessary if projects are to be delivered within the
client‘s budget and to expectations.
Furthermore, it has been observed that different procurement methods have their distinct
characteristics in terms of tender activities and processes, division of risks between client and
contractors, the effectiveness of project monitoring and control, advantages, and constraints,
which will all have an effect on the project performance (Rosli et al. 2006; Construction
Industry Development Board, 2007; Oladirin et al. 2013). With the availability of diverse
procurement methods, no single system best satisfies the needs of a client in all situations, or
that of different clients in the same situation (Maizon et al. 2006). Furthermore, not all forms
of procurement method are appropriate for particular project types, as client objectives and
priorities consistently differs (Skitmore and Marsden, 1988; Love et al. 1998). Al-Hazmi and
McCaffer (2000) therefore stated that for a project to be successful, the procurement method
must address the technicality of the project alongside the client‘s needs. To do this
effectively, the Cooperative Research Centre for Construction Innovation (2008) suggested
that it is essential that the characteristics of various procurement systems and selection
methods available are understood by clients and their advisors before a procurement method
is selected.
It is based on this theoretical understanding that this study assessed the procurement options
for public works being adopted by procuring entities in Ondo State, Nigeria with interest in
their adoption of various procurement methods available, and factors that they consider to be
significant in choosing a procurement method. The subsequent parts of this paper include the
review of related literatures, research method adopted and the findings of the study. Based on
the findings, conclusions were drawn and recommendations were made thereof.

LITERATURE REVIEW
Procurement Methods for Construction Projects
In delivering construction projects, diverse methods of procurement have and continue to
evolve. Aside the traditional method of procurement, other innovative methods is now being
used by the construction industry worldwide. The procurement methods differ from each
other in terms of allocation of responsibilities, sequencing activities, process and procedure,
and organizational approach in project delivery (Oladirin et al. 2013). Mathonsi and Thwala,
(2012) stated that over the years, the construction industry has undergone tremendous
changes which has led to the development of alternative procurement systems other than the
famous traditional system. Furthermore, Ogunsanmi (2013) noted that the continuous
deterioration of Nigeria‘s economy has promoted the use of other discretionary procurement
methods. This is in a bid to achieve construction projects within the tight budget of clients.
The various procurement methods in use include the Traditional method in which the client‘s
design team produces a full construction design, and a contractor tenders for the construction

538
process (Larmour, 2011). This method has the tendency to bring about a longer program as
design and construction are sequential (El-Agha, 2013). Another method is Design and Build,
whereby the client will prepare a project brief and requirements, and invite a number of
contractors to bid. For the purpose of submitting tenders, the invited contractors will produce
their own design, construction and cost proposal (Rosli et al. 2006). Similar to the Design and
Build is the Design and Construct method. Here the contractor is still given the responsibility
for both the design and construction of the project. However, the client will have had a design
consultant prepare the concept sketches or designs which the contractor will develop into
detailed working drawings. The contractor will then construct and complete the project based
on what he has developed (Rosli et al. 2006; Cooperative Research Centre for Construction
Innovation, 2008; Babatunde et al. 2010).
There is also the management procurement method wherein a contractor is involved in the
provision of management services. The two variants of this method are the management
contracting and the construction management (Larmour, 2011). In the Management
Contracting method, the client appoints designers and a management contractor separately
and pays the contractor a fee for managing the construction works. The contractor provides
management services to control and coordinate all site activities, sub-letting works to suitable
contractors on a competitive basis. However, in the Construction Management method, the
client enters into separate contracts with the construction manager, the designers, and the
trade contractors. The major difference between these two systems is that in construction
management, the construction manager acts solely as a manager and he is not in contract with
the trade contractors who undertakes the various works. He is appointed as a professional
consultant with powers to inspect work on site and issue instructions (Brook, 2004;
Babatunde et al. 2010; El-Agha, 2013).
Another procurement method is the Direct Labour method whereby the client designs and
produces his project by himself with the aid of his in-house professionals. This method is
void of the usage of contractors (Kadiri and Odusami, 2003). A study by Idoro et al. (2007)
reveals that government and its agencies are the major users of this procurement system in
Nigeria. Similar to the Direct Labour is the Labour-only method which according to
Ogunsanmi (2013) is gaining popularity due to the continuous unhealthy state of the
country‘s economy, as clients tend to adopt the system for the purpose of saving cost.
According to Ogunsanmi (2012) in labour-only system, the client purchases all the necessary
materials for the use of the contractor to execute the project to completion.
Furthermore, as a result of economic challenges in the delivery of infrastructures among
developing countries, various governments are resorting to providing infrastructure for their
citizens through the private sectors funding and expertise. This births the Public Private
Partnership (PPP) method of procurement (Awodele, 2012). Babatunde et al. (2010) stated
that PPP is an attempt by government to tap from the enormous private resources by way of
diversification and letting private hands partake in the provision of basic social and
infrastructural amenities. Other similar procurement methods are Turnkey System,
Partnering, Joint Venture, Package Deal etc.
Factors Influencing the Selection of Procurement Methods
Thomas et al. (2002) noted the need for speed and time certainty in construction as a major
factor that may influence the choice of a procurement system. Speed refers to the need to
complete a project more quickly than other projects of similar nature, complexity and size.
Time certainty is assurance that a project will be completed on or before an exact date and
time, particularly for large or prestigious projects scheduled for a particular function or event.
Maizon et al. (2006) noted that price certainty is related to the firm price for the total

539
construction cost obtained at the commencement of the project. Clients will like to have a
firm price for their project before committing to it. This enables them to have an approximate
estimate so that the project cost can be kept within the financial budget. Thus the certainty of
the price for acquiring a project may to a large extent influence the choice of procurement
method.
Also, flexibility as a factor was noted by Love et al. (1998), Cheung et al. (2001) and
Ratnasabapathy et al. (2006). Flexibility has to do with the ability of a procurement method
to accommodate variations such as design changes during the construction phase. According
to Hibberd and Djebarni (1996), flexibility is particularly needed for large and complex
projects or when the exact requirements cannot be carefully established before tendering.
Quality, is another factor that influences the selection of a procurement method. It is the
degree to which a set of inherent characteristics fulfil client‘s requirements. (Love et al. 1998;
Thomas et al. 2002; Maizon et al. 2006; Seng and Yusof, 2006).
Other factors such as complexity of the work to be executed, responsibility which is a
knowledge of the degree of client‘s involvement, price competition which covers the aspects
of value for money, risk allocation, familiarity with the procurement system by the client or
his professionals, and government policies, have all been noted as influential in the selection
of a procurement system (Love et al. 1998; Thomas et al. 2002; Luu et al. 2005; Maizon et al
2006; Ratnasabapathy et al. 2006; Chan, 2007; Edmond et al. 2008; El-Agha 2013). All of
these formed a basis for the assessment of the factors influencing the selection of
procurement methods in the delivery of public projects in Ondo State, Nigeria.

RESEARCH METHODOLOGY
This study set out to assess the procurement methods being adopted by public procuring
entities in Ondo State Nigeria. The study adopts a survey design and respondents were
gathered from government organizations that have a department or unit responsible for
procurement of construction works within the organization. The selected respondents were
in-house construction professionals working in these organizations. Four groups of
government organizations were surveyed in this study. They are; Ministries (Works, Lands
and Housing, and Education), Local Governments (Akure South, Akoko North-East, and
Owo), Agencies (Ondo State Local Government Service Commission, Direct Labour
Agency, Project and Price Monitoring Unit, Ondo State Universal Basic Education Board,
Ondo State Community and Social Development Project, Ondo State Oil Producing Area
Development Commission, and Ondo State Agency for Road Maintenance and Construction),
and Tertiary Institutions (Federal University of Technology Akure, Adekunle Ajasin
University, Akungba, and Rufus Giwa Polytechnic, Owo). This gives a total of 16 entities
that participated in this survey.
Data were gathered through purposive sampling as only construction professionals within the
selected organizations were sampled. The study adopted a structured questionnaire as the
research instrument. According to Blaxter et al. (2001) questionnaire is among the most
widely used social research techniques. Tan (2011) further state that the questionnaire survey
is a methodical technique of gathering data based on a sample. The questionnaire used was
designed in two parts based on information gathered from literature. Part one solicits
demographic information of the respondents. Results from this part served as a quality check
for the response gotten for the second part of the questionnaire. Part two addressed the
objectives of the study. Respondents were asked to rate a list of procurement methods as well
as a list of factors that influences the selection of a procurement method on a 5 point Likert

540
scale indicating their level of adoption and significance respectively. The Likert scale ranges
from 1 (very low) to 5 (very high) with the mid-point being 3 (average).
For uniformity, four questionnaires were sent to each of the 16 organizations, making a total
of 64 out of which 46 were retrieved and considered fit for analyses. The remaining 18 were
dropped due to missing vital details. The 46 returned questionnaires represents a 71%
response rate which is well adequate for the study as observed by Moser and Kalton (1999).
It was stated that the result of a survey could be considered as biased and of little significance
if the return rate was lower than 20-30%. The internal consistency of the questionnaire was
analysed using Cronbach‘s alpha test. According to Santos (1999), Cronbach‘s alpha
coefficient assesses reliability through examination of the internal consistency under the
adopted scale of measurement. The normal range of Cronbach alpha value is between 0 and
1, and the higher the value, the higher degree of internal consistency. Cronbach‘s alpha
values of 0.808 and 0.835 were derived respectively for the various procurement methods
being adopted and for factors influencing the selection of a procurement method by the
surveyed entities. This result shows that the instrument is reliable since the degree of
reliability of an instrument is more perfect as the value tends towards 1 (Moser and Kalton,
1999).
Analyses of collected data on the background information of the respondents were done using
frequency and percentage. Mean item score (MIS) was employed in ranking the procurement
methods used by procuring entities in the state, while ANOVA test was employed to check
for statistically significant differences in the mean of the various procurement methods across
the surveyed entities. The ANOVA test was chosen, since it is a suitable method for
comparing the mean values of more than two groups (Pallant, 2005). For the factors
influencing the choice of procurement method, one sample t-test was adopted to test the
significance of the mean values of the selected factors. A similar approach was adopted by
Ahadzie et al. (2008).

FINDINGS AND DISCUSSIONS

Background Information of Respondents
Result in Table 1 shows the background information of respondents. The result reveals that
the highest percentage of respondents of the study were from the Agencies (32.6%), followed
by the Local Governments (23.9%). The least percentage response is from the Ministries
(17.4%). The result also reveals that the major type of construction project procured by these
organizations is building works (73%). This implies that more focus is given to building
works than civil engineering works within the State. The most represented professionals are
the Quantity Surveyors and Civil Engineers with 37.1% and 30.4% respectively. The least are
Builders and Service Engineers with 10.9% and 4.3% respectively. In terms of academic
qualification, 47.8% holds a bachelor degree, while 28.3% holds a higher national diploma.
Most of the respondents are members of their professional bodies except for 3 which
constitute a meagre fraction (6.5%) of the total population. The respondents‘ average years of
experience in the built environment is put at approximately 9 years. This implies that the
respondents are well equipped both academically and professionally to give reasonable
insight to the questions of this research.

541
Table 1: Background Information of Respondents
Categories Classification Frequency Percentage (%)
Type of Organization Ministry 8 17.4
Agency 15 32.6
Local Government 12 26.1
Tertiary Institution 11 23.9
Total 46 100
Type of Project Procured Building works 34 73.9
Civil engineering 12 26.1
Total 46 100
Profession Architect 8 17.4
Quantity surveyor 17 37.1
Services engineer 2 4.3
Civil engineer 14 30.4
Builder 5 10.9
Total 46 100
Academic Qualification HND 13 28.3
BSc/B.Tech 22 47.8
MSc/M.Tech 8 17.4
PGD 3 6.5
Total 46 100
Professional Qualification NIA 6 13.0
NIQS 17 37.0
NIOB 5 10.9
NSE 15 32.6
None 3 6.5
Total 46 100
Years of Experience 1-5 years 16 34.8
6-10 years 15 32.6
11-15 years 8 17.4
16-20 years 3 6.5
Above 20 years 4 8.6
Total 46 100
Average 8.8

Level of Adoption of the Various Procurement Methods

In analysing the procurement method frequently used for the provision of public projects
within the State, a list of procurement methods was provided which the respondents were
asked to rank based on their level of adoption by the organizations that they represent. Result
in Table 2 shows the ranking of these factors and their associated significant p-value derived
from the ANOVA test conducted. ANOVA test was conducted in order to check for
statistically significant differences in the mean of the various procurement methods across the
different procuring entities assessed. From the Table, result reveals that for Ministries, the
predominantly used procurement methods are direct labour and construction management. As
for the Agencies, it is the traditional method and construction management method. The
Local Governments and Tertiary Institutions rated direct labour and the traditional system as
the frequently used procurement method.
Overall, it can be seen that 5 out of the 9 assessed procurement methods have a mean value of
3.0 and above. This means that these 5 methods have considerable amount of usage in the
delivery of public projects in the State. However, the methods most adopted are direct labour
and the traditional method, with an overall mean value of 3.88 and 3.73 respectively.
ANOVA also showed that there is no statistically significant difference in the mean value of
these two procurement methods across the four different procuring entities, as a significant p-

542
value of above 0.05 was derived. Next in the frequency of adoption are the construction
management, management contracting, and design and build. However, ANOVA shows a
significant difference in the mean value of the construction management and management
contracting, as a significant p-value of 0.036 and 0.020 were derived for both methods. This
result implies that while these methods might be popular for some procuring entities, it is not
for others.
These results further affirm Idoro et al. (2007) submission that government and its agencies
are the major users of the direct labour procurement system in Nigeria. This can be largely
attributed to its ability to save time spent on tendering and other activities related to the
conventional system, and its ability to ensure effective communication between team
members (Iyagba and Idoro, 1995; Ogunsanmi et al. 2003). It can also be attributed to the
fact that Ondo State is yet to domesticate the Public Procurement Act which promotes the
usage of an open tendering procurement method. In addition, the results indicates that despite
the evolution of modern procurement methods, the traditional method is still one of the most
used methods by two of the four surveyed entities. This result confirms Ogunsanmi (2013)
assertion that the traditional procurement system has been in use in Nigeria for a long time
and has dominated the construction scene.
Interestingly, Adenuga (2003) and Ogunsanmi et al. (2003) opined that the labour-only
procurement system is gradually gaining recognition in the Nigerian construction industry.
This is due to its ability to deliver quality projects within the client‘s budget. However, this
procurement method is not being adopted by government organizations as observed from the
findings of this study. Results show that this procurement method is ranked sixth with an
overall mean value of 2.83 which is well below average. Reason for this low usage despite its
cost advantage can be attributed to the suitability of the method for procuring various types of
construction projects. Akinkunmi (2017) observed that the labour-only system is most
suitable for small construction projects rather than larger projects where high risks are
involved. Adoption of PPP in the state is discovered to be well below the average. PPP gives
government the opportunity to provide infrastructures for its citizens through the use of
private funding and expertise (Babatunde et al. 2010; Awodele, 2012). However, it is obvious
that this procurement method is not being effectively utilized in the State.

Table 2: Procurement methods adopted in procuring public projects in Ondo State

Min. Agen. LG. Tert. Overall ANOVA

Methods MIS Rk MIS Rk MIS Rk MIS Rk MIS Rk F Sig.

Direct labour 4.33 1 3.80 3 3.88 1 3.50 2 3.88 1 0.689 0.566

Traditional 3.58 4 4.14 1 3.56 2 3.63 1 3.73 2 2.300 0.095

Construction 3.77 2 4.00 2 2.13 5 2.79 4 3.17 3 3.239 0.036**

Management

Management Contracting 3.77 2 3.60 5 1.88 8 3.25 3 3.13 4 3.821 0.020**

Design and build 3.00 5 3.50 6 2.75 3 2.75 5 3.00 5 0.653 0.587

Labour only 3.00 5 3.80 3 2.50 4 2.00 8 2.83 6 2.555 0.075

PPP 2.67 7 3.40 7 2.13 5 2.57 6 2.69 7 1.224 0.319

Design & Construct 2.30 8 3.00 8 2.13 5 2.33 7 2.44 8 0.467 0.708

Turnkey system 1.73 9 2.50 9 1.14 9 1.60 9 1.74 9 0.689 0.566

Note: Min. = Ministries, Agen. = Agencies, LG. = Local Governments, Tert. = Tertiary
Institutions, MIS = Mean Item Score, Rk. = Rank, Sig. = p-value.

543
Factors influencing the choice of procurement method being adopted
In determining the factors considered as significant in the adoption of a procurement system,
a list of factors identified from literatures was provided which the respondents were to rate
based on their level of significance. One sample t-test was then used to ascertain the
significance of each of the identified factors and the importance attached to each of them by
the respondents. A null hypothesis which states that a factor is unimportant when the mean
value is less than or equal to the population mean (H0:U ≤ U0) was set, while the alternate
hypothesis was that the factor was important when its mean is greater than the population
mean (Ha:U > U0). Where U0 is the population mean fixed at 3.0 (the mid-point for the Likert
scale adopted) and the significance level set at 95% in accordance with conventional risk
levels (Pallant, 2005). Result in Table 3 shows the p-value which represents the significance
of each identified factors. This significant p-value which is for a two-tailed test was further
divided by two as shown in Table 4 in order to get the significant value for a one-tailed test as
regards the test hypothesis (i.e. Ha: U > U0)

Table 3: One sample t-test statistics

Test Value = 3.0

95% Confidence
Interval of the
Difference

Sig. (2-
Factors
T df tailed) MD. L. U.

Speed (during both the design and construction stages) 4.653 43 0.000 0.864 0.49 1.24

Time certainty (completion of project within agreed duration) 4.700 42 0.000 0.791 0.45 1.13

Price certainty (keeping expenditure within budgeted estimate) 3.339 43 0.002 0.568 0.22 0.91

Quality (need to fulfil client's expectation of essential project

4.599 41 0.000 0.643 0.36 0.93
characteristics)

Responsibility (need to be involved in and kept informed about the

1.858 42 0.070 0.326 -0.03 0.68
project through its life)

Complexity (need to have a competent contractor that can fulfil

5.203 43 0.000 0.773 0.47 1.07
client's unique and high technology requirements)

Flexibility (ability to accommodate changes during design and

4.990 41 0.000 0.690 0.41 0.97
construction phases)

Price Competition (need to achieve value for money and public

5.733 43 0.000 0.977 0.63 1.32
accountability)

Risk allocation 1.777 40 0.083 0.220 -0.03 0.47

Familiarity (based on previous experience) 4.172 41 0.000 0.619 0.32 0.92

Simplicity (of activities, process and procedure) 3.884 42 0.000 0.581 0.28 0.88

Dispute resolution and arbitration 2.475 40 0.018 0.341 0.06 0.62

Government Policy (on using a particular procurement route) 3.018 43 0.004 0.455 0.15 0.76

Note: df. = Degree of Freedom, Sig. = p-value, MD. = Mean Difference, L. = Lower, U. =
Upper.

Result in Table 4 shows the summary of the t-test conducted with the rankings of each
identified factors. From the table it can be seen that price competition (i.e. need to achieve
value for money and public accountability), speed during both the design and construction

544
stages, time certainty (i.e. the ability for a procurement system to deliver a project within the
stipulated period), and complexity (i.e. the need to have a competent contractor that can fulfil
the client's unique and high technology requirements) are the top ranked factors with an
overall mean value of 3.98, 3.86, 3.79 and 3.77 respectively. The least ranked is risk
allocation with an overall mean of 3.22. Following the hypothesis set (Ha: U > U0 and U0 =
3.0), it can therefore be said that the respondents considers all the identified factors as
important. T-test also reveals that at 95% confidence level, all the assessed factors were
considered to be significant, as a significant p-value of below 5 was derived for all the
assessed factors.
This result proves that the economic situation within the country which has led to clients
seeking value for their tight budget is a major factor being considered in the selection of
procurement methods in the delivery of public projects. This has led to the use of
discretionary procurement methods like the direct labour which is ranked as the most used
procurement method in the State. This result further corroborates with Ogunsanmi (2013)
submission that the continuous unhealthy state of the country‘s economy has promoted the
use direct labour, labour-only and the likes. El-Agha (2013) also discovered that factors
relating to the cost in construction are crucial in the selection of procurement method for the
delivery of construction projects. Maizon et al. (2006) further observed that for public clients,
cost can be an important factor to them especially where the government procurement policy
requires value for money.
The need for speed during design and construction, coupled time certainty can be major
factors that influence the choice of a procurement system in the delivery of public projects.
This is so because most government projects have specified completion period, especially
when such project is to be executed towards the end of the tenure of an administration. These
projects tend to be time sensitive as government will most likely want to complete and
commission them before leaving the office. These factors were deemed necessary by Thomas
et al. (2002). Result of this study also agrees with Shiyamini et al. (2008) and El-Agha
(2013) observation that project characteristics which include parameters such as the project
type and complexity are important factors that influences the choice of procurement system.
This is evident in the fact that complexity is ranked among the top factors with a significant
p-value of 0.000. A similar observation was made in the study of Eyitope et al. (2012) carried
out in Nigeria.
Table 4: Summary of t-test showing rankings
MIS SD Rk Sig.

Factors (1-tailed)

Price Competition (need to achieve value for money and public

3.98 1.131 1 0.000
accountability)

Speed (during both the design and construction stages) 3.86 1.231 2 0.000

Time certainty (completion of project within the agreed duration) 3.79 1.103 3 0.000

Complexity (need for competent contractors to handle client's unique and high
3.77 0.985 4 0.000
technology requirements)

Flexibility (ability to accommodate changes during design and construction

3.69 0.897 5 0.000
phases)

Quality (need to have a competent contractor that can fulfil client's unique and
3.64 0.906 6 0.000
high technology requirements)

Familiarity (based on previous experience) 3.62 0.962 7 0.000

545
 Simplicity (of activities, process and procedure) 3.58 0.982 8 0.000

Price certainty (keeping expenditure within budgeted estimate) 3.57 1.129 9 0.001

Government Policy (on using a particular procurement route) 3.45 0.999 10 0.002

Dispute resolution and arbitration 3.34 0.883 11 0.009

Responsibility (need to be involved in and kept informed about the project

3.33 1.149 12 0.035
through its life)

Risk allocation (knowledge on how and to what degree uncertainties/risks

3.22 0.791 13 0.042
have been passed to or shared among parties)

Note: MIS = Mean Item Score, SD = Standard Deviation, Rk = Rank, Sig. = p-value.

CONCLUSION
This study set out to assess the various procurement methods adopted by public procuring
entities in Ondo State, Nigeria, through the identification of the level of adoption of various
procurement methods available, and through an assessment of factors influencing the choice
of procurement methods for public projects. Using a survey method, and based on
information gathered from various government organizations within the State, the study
found that the direct labour method of procurement is the most used method by public
procuring entities in Ondo State. Aside the direct labour method, the traditional procurement
method is still being preferred over other procurement methods available. Also, the study
identifies the significant factors that influences the choice of a procurement method as price
competition which is the need to achieve value for money and public accountability and
which has to do with the cost aspect of the project, speed provided by a procurement method
during the design and construction stages, certainty that a procurement method will be able to
deliver a project within expected duration, and quality which is the need to have a competent
contractor who can fulfil the client‘s unique and high technology requirements.
It is believed that the findings of this study will encourage a wider adoption of the various
procurement methods available by public procuring entities in the State towards achieving
successful project implementation and value for money for the government. Also the findings
provide insight into factors to be considered when selecting a procurement method, as this is
important in achieving client‘s objective satisfactorily. The study therefore recommends that
since no particular procurement method can best satisfy the needs of a client in all situations,
or that of different clients in the same situation, public procuring entities should therefore
employ strategic measures in choosing the best suited procurement method to adopt. This can
be done through careful analysis of the project characteristics, cost involved and the expected
completion time for such project.
Finding of this study suggest areas for further studies as it was limited to public procuring
entities in Ondo State Nigeria. Further studies can be carried out to ascertain the procurement
methods being used by private clients and the factors influencing the choice of these
procurement methods. Also further studies can be carried out to compare the performance of
the various procurement methods being used by these procuring entities so as to determine
the best fit procurement method for diverse project performance criteria.

546
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