AN ASSESSMENT OF EXPATRIATE CONTRACTORS’ SITE MANAGEMENT PRACTICES IN THE NIGERIAN CONSTRUCTION INDUSTRY

Abstract

The concept of site management is not new in the construction industry as it forms an integral part of the construction management process, however its level of practices vary from expatriate contractors to indigenous contractors. The research assessed site management practices of expatriate contractors in Nigeria with a view to improving the performance of indigenous contractors in the country. In conducting the research sample size of seventy (70) expatriate contractors was determined from FIRS (Federal Inland Revenue Service) and the respondents were construction professionals at management level. A research questionnaire was prepared from literature reviews and administered to the respondents. The results were analysed using statistical tools such as relative importance index, mean, percentages while the findings were presented in tables and charts. From the research Effective procedures for issuing of material on site ranked first with a RII of 0.81 which is a very significant factor of site management practice of expatriate contractors, and Electronic exchange of CAD files ranked first with RII of 0.94 which is very significant Technological Application. The research concludes that effective procedures for issuing of material on site is a very important factor to be considered in site management practice so as to deal with issues of material wastage, indiscriminate dumping of materials, demand and supply of materials and in the long run proper delivery of the project. The research therefore recommends that Indigenous firms should put in place Proper material management strategy on construction sites, to check the movement of materials and to avoid wastage. This should also include documentation and recording of materials request forms, and using them for decision on material management. Indigenous firms should encourage the use of information technology as a high priority in management and should also ensure the use of electronic exchange of information to expedite action on site.

In construction, efficient site management practice is fundamental in meeting project time, cost and scope. However Nigerian contractors are criticised for poor planning and site management practices which results in poor performance (Oladimeji & Ojo, 2012; Aniekwu & Audu, 2010; Muazu & Bustani, 2004; Saleh, 2004; Achuenu, et al., 2000).According to Aniekwu, (2012)Nigerian construction industry is bedevilled by inefficient site practices and an unfriendly socio-cultural business environment, which hampers performance of indigenous contractors and lowers productivity than that of their foreign counterpart. Mbachu and Olaoye(1989) opined that construction projects in Nigeria almost always suffer from time and cost overruns. Leading to a state where major contracts are awarded to expatriate contractors (Ogunsemi, 2005). In construction, contractors are one of the major parties concerned with the site management practices; this is because they are responsible for executing the works that form the contract. In Nigeria, research studies classify construction contractors into several categories, however for the purpose of this research indigenous and expatriate contractors are the focus, and this is based on their involvement in a large portion of work as identified by Idoro (2007). In separate studies, Edmonds (1979), Ogunpola (1984), Olateju (1991), Samuel (1999), Mayaki (2003) and Idoro (2007) classified construction contractors operating in Nigeria into indigenous and expatriate contractors. The authors describe indigenous contractors as private firms that engage in the production or delivery of construction projects that are fully owned and managed by Nigerians, while expatriate contractors are described as private firms that also engage in the production or delivery of construction projects thatare jointly owned by Nigerians and foreigners but the management of which is fully controlled by expatriates. Ogunpola (1984), Olateju (1991), Samuel (1999) and Idoro (2004) discovered that expatriate contractors are few in number, operate on a large scale and execute the majority of contracts in Nigeria; in contrast, indigenous contractors considerably outnumber their expatriate counterparts and operate on small and medium scales, but they are responsible for a very small proportion of the value of contracts executed in Nigeria. Mohammed and Anumba (2006) defined site management practices as a mixture of activities which turns essential resources into finished products. These site management practices are divided into processes which when managed can result in defined functional output by conversion of unprocessed resources (Obiegbu, 2012). Bamisile (2004) opined that creating an environment that will encourage self motivation open mindedness and team spirit, will result in efficient project execution and spur up effective management process as this cannot be achieved by force. Previous study by Njoku (2007), identified that some problems of site practices as; poor quality of job by indigenous firms, presence of knowledge gap and monetary incapability of firms. Poor site management practice results in undesirable project outcome. Ogunlana (1996) stated that incomplete drawings, materials management problems, deficiency in organisation and inefficient site workers were among the main reasons for project delays and cost overruns. This was acknowledged by Inuwa (2014) who stated that Nigerian Indigenous Contractors’ who are involved by both public and private clients experience high rates of time and cost overruns. Obiegbu (2012) opined that excellent site management practices are important in maintaining efficiency, cost effectiveness and control on project of which the research attempt to assess those This study therefore attempts to carry out an assessment of expatriate contractors’ site management practices to identify their key practices relevant to improving the performance of indigenous contractors which will consequently encourage greater patronage in Nigeria.

1.2         Statement of Research Problem

Jimoh, (2012) carried out a study of site management practice in construction firms in Nigeria and identified poor site management practice to be responsible for the backwardness of indigenous firms in Nigeria. This was further strengthened by Idoro (2007) who attributed the success of expatriate contractors to good site management practices. He also opined that it formed their competitive advantage in terms of project delivery.Olateju, (1991) also stated that Expatriate contractors which are fewer than indigenous contractors in number execute over 90% of the construction works in Nigeria regardless of their higher charges than their indigenous counterpart. Inuwa (2014) stated that Nigerian Indigenous Contractors’ who are involved by both public and private clients experience high rates of time and cost overruns. This was supported by Azhar and Farouqui (2008) who stated the time and cost overruns are more severe in developing countries and put huge financial stress on the clients or owner. Apolotet al., (2012) Added that it has become common for projects not to be completed on time and attributed them to poor site management practices. However, these works have majorly emphasized the importance of good site management practice, but have not clearly identified those key practices that keep the expatriate contractors afloat, while the indigenous firms drown in obscurity.

1.3                                                         Justification of the Study

The success of any project is judged by meeting the criteria of cost, time, safety, resource allocation, and quality as determined by the owner (Muir, 2005). Thus, the purpose of construction site management is to achieve goals and objectives through the planned activities that meet the project’s quality, cost, time, scope, and safety requirements. Hence, the major tasks in construction site management include planning, organizing, scheduling, implementing, managing, monitoring, controlling, and tracking construction site activities (Farooqui, et, al, 2010). It is essential therefore, for construction site activities to be accomplished successfully in an effective and efficient way. This requires various strategies and management involvement (Alnasseri, et, al, 2013). Therefore, it is also critical for site management to focus on the demanding realities in the planning and controlling of construction operations of which expatriate contractors have maximized. Idoro (2007) had stated that these constituted the competitive advantages of the expatriate contractors. Therefore it is expedient that indigenous contractors identify these key practices and implement them, to boost their efficiency and competitive advantage. Therefore the purpose of this research assess the site management practices by these expatriate contractor with a view of identifying their site key management practices which has enhanced project delivery and consequently better patronage.

1.4                                                     Aim and Objectives

1.4.1    Aim

The aim of this study is to assess site management practices of expatriate contractors’ in Nigeria with a view to improving the performance of indigenous contractors in the country.

1.4.2    Objectives

1. To assess the factors that enhances site management practice of expatriate contractors.
2. To evaluate the methods of monitoring Site management practices by the expatriate contractors
3. To ascertain the level of Technology Application in the site management practice of expatriate contractors.

1.5                                                         Scope and Limitation

1.5.1    Scope

The scope is of this research is identifying key site management practices as executed by expatriate contractors with the view to improving indigenous contractors, and its focuses on professionals operating at management level.

1.5.2    Limitation

The result of the findings is limited by the following factors:

1. The respondents’ knowledge on the site management practiced on the site.
2. The sample size of the population cannot adequately provide a generalized conclusion.
3. Redundancy of some expatriate firms in Abuja over the research period of time.

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