Assessment of Risks Associated with The Procurement of Facilities Management Services in Nigeria

Faremi, J.O ; Adenuga, O.A ; John, I.B ; Akinbode, A.T (2014)

Staff Publications

Article

Facilities management (FM) services can be managed in-house, outsourced or partly in house and partly outsourced (Hybrid). Each of the FM procurement options possesses inherent risks of grave consequences. This study aim at assessing risks inherent in each of the procurement options for FM services. A structured questionnaire was used as the principal instrument for this study. 75 copies of structured questionnaires were distributed, 55 were completed and returned representing 73% response rate. Data for the study was processed and analysed using SPSS for both descriptive and inferential statistics. The analysis revealed risks with the highest level of potential occurrence in in-sourcing FM services as low labour productivity, overstaffing and poor accountability. While, threat to data security, loss of management controls and poor motivation are major risks in outsourcing FM services. This studv concludes that poor accountability and loll' labour productivity are major risk factors that cuts across all FM procurement routes that is capable of affecting employees' relationship and passion for work. Performance reward and regular account reconciliation are therefore recommended since this can either reinforce an outsourcing relationship or enhance an in-house retaining of FM services.