Constraints of Nigeria Indigenous Construction Contractors (NICCS) In a Competitive Business Environment
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Date
2020
Authors
Akinsiku, O. E.
Oyediran, O. S.
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Abstract
Nigeria Indigenous Construction Contractor (NICC) is facing a lot of constraints among which are the quest for
survival and relevance in the Nigeria construction sector. Majority of high net-worth construction projects are
awarded and executed by foreigners’ managed firms which constitute less than 5 percent of the total number of
construction companies operating in Nigeria. This has put the NCCs into a precarious condition as the nation’s
construction sector is completely monopolized by foreigners. However, the NICCs are the architects of their
own misfortune as over the years, researchers have observed that the outputs of construction activities by
NICCs fall below the expected quality standard required, as such, clients’ preference for foreigners’ managed
construction companies. This study sets out to investigate the causes of these constraints and why NICCs are
majorly predisposed to poor project performance. The study adopted the review of literatures as well as the use
of questionnaire to elicit information from construction practitioners. The study identified 19 factors, ranked in
order of importance on why clients prefer foreigners’ managed construction enterprise in Nigeria. Factor
analysis was used to group these factors into 5 principal factors namely: poor monitoring, controlling and
funding challenges, bankruptcy and cost overruns, technical issues, site organization and layout, and materials
and construction methods. The findings of the study will assist in improving the competitiveness of NICCs, by
so doing; reduce the cost of construction as the competition nest of performing contractors in Nigeria would be
widened.
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Keywords
Capacity, competition, infrastructure, patronage, performance