CHAPTER ONEINTRODUCTION1.1BackgroundConstruction project procurement has a scope which is quite immense. It deals with bringing together as well as organizing multiples of firms and organizations that are brought in to design, manage and build construction projects. Some of these projects include houses, shopping malls, office structures, bridges, roads etc. The processes and outcomes involved in construction projects affect all the people in the industralized world. The Nigeriaian construction industry contributes an average of 8.5% of its Gross Domestic Product (Nigeria Statistical Service, 2007), therefore the construction industry’s efficiency in this country is very important. Construction works in almost every country are procured through a number of methods be it open competitive, restricted, selective or negotiated. Project procurement can be described as processes whereby construction products are obtained by clients.
Procurement comes out of the word procure which literally means ?to obtain by care or effort?; ?to bring about? and ?to acquire?. Method is about “a procedure, technique, or way of doing something, especially is accordance with a definite plan”. In this context, project procurement focuses mostly on the processes, procedures and organized methods that are required to obtain or acquire a construction project. (Masterman, 1996) narrated project procurement as structures put together or designed as a blueprint which can be used to design and execute construction projects for clients.The importance of selection of a procurement method has been pointed out by (Chan, 1996), who ascertained that the procurement method have a great influence on the time performance when itcomes to construction projects. A project which is driven by the different types of procurement methods always has a massive effect on time. Similarly, (Naoum, 1991) affirmed that the procurement method that were being used were having major effects on cost and time overruns. (Bowen et al., 1999) was also of the view that the selection of procurement methods inappropriately was the major cause of the construction industry’s poor performance. This brings about the effect on project delivery when choosing a particular procurement method type for a project. The choice of the best method for procurement for a particular project to be adopted by the client has a great effect on the performance of the project.
1.2 Problem statementThe choice of a specific Procurement method to use for a Construction project is a huge menace that the construction industry faces and it is dependent on factors such as type of client, level of risk, time availability, etc.