Model of Predicting Bidding Costs for Construction Projects in Nigeria using Public Procurement Act 2007

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dc.contributor.authorYahaya, M. L.
dc.contributor.authorUmar, I.
dc.contributor.authorBabalola, A. J.
dc.contributor.authorSani, M.
dc.date.accessioned2022-09-13T11:15:08Z
dc.date.available2022-09-13T11:15:08Z
dc.date.issued2020
dc.descriptionScholarly articleen_US
dc.description.abstractThe costs incurred by various stakeholders participating in the tendering process and their magnitude has attributed incongruity between government and contractors, economic drain and less competition in public sector projects. The aim of the study is to develop model that predict the transaction cost of bidding construction projects based on Public Procurement Act 2007 (PPA 2007). To achieve this, quantitative survey design based on structured questionnaire was used. The data collected from 143 sampled contractors selected using stratified sampling techniques from the North-West states of Nigeria were analyzed using Partial Least Squares-Structural Equation Modeling software. The results from the analysis revealed three (3) major sources of transaction costs identified from the field as; eligibility documents, contract administration costs, and securing related documents methods. In addition, the three identified transaction costs sources were found to be significant determinants of transaction costs for contractors bidding for construction projects of various types. Moreover, bidding costs model was found to exhibit good forecasting power that can be used to predict the magnitude of costs incurred by contractors in bidding projects in Nigeria. The study concludes that the transaction costs of contractors in bidding construction projects on average is 8.21% of contract sum after validating the model with real life data, and it will benefit incoming firms into the industry as a bidder by knowing their entry probable costs indicators for public projects. The study recommends that further studies should be explore to identify some potential factors such as Equipments, financial capability and professional staff strength which could provide new insights into bidding transaction costs incurred for construction projects.en_US
dc.identifier.citationYahaya, M. L., Umar, I., Babalola, A. J. and Sani, M. (2020). Model of Predicting Bidding Costs for Construction Projects in Nigeria Using Procurement act 2007. International Journal of Engineering Research and Technology (IJERT), Vol. 01, Issue 2en_US
dc.identifier.urihttps://ir.unilag.edu.ng/handle/123456789/11471
dc.language.isoenen_US
dc.publisherInternational Journal of Engineering Research & Technology (IJERT)en_US
dc.relation.ispartofseriesInternational Journal of Engineering Research & Technology (IJERT);9(2)
dc.subjectConstruction projectsen_US
dc.subjectEligibility documentsen_US
dc.subjectPublic procurement Act 2007en_US
dc.subjectPLS-SEMen_US
dc.subjectTransaction costs theoryen_US
dc.subjectResearch Subject Categories::TECHNOLOGYen_US
dc.titleModel of Predicting Bidding Costs for Construction Projects in Nigeria using Public Procurement Act 2007en_US
dc.typeArticleen_US
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