Procurement methods in reducing disputes for construction projects

Abstract

The success of any construction projects depends on the selection of the most appropriate procurement method. Proper evaluation of a procurement method towards dispute reduction in construction projects in Katsina State, is important. The selection of appropriate procurement method will ensure the smooth running of the construction projects with less complications and disputes among the various parties involved. The aim of this study is to determine the appropriate procurement methods being use for reducing construction disputes in Katsina State of Nigeria. The objectives of the study are to evaluate the procurement methods used, to determine the causes of disputes in the procurement methods, to determine the dispute resolution mechanisms used in the procurement methods and to determine the most appropriate procurement method towards reduction of disputes in construction project in Katsina State Nigeria. The scope of study covers procurement methods used in Katsina state, Nigeria. The study includes projects in Government organizations (Public organizations) and private developers (Private organizations). This study is conducted through questionnaires survey. A total of 80 questionnaires were distributed to respondents comprising of engineers, clients and contractors. Sixty eight (68) questionnaires were returned duly answered. The data is analysed using SPSS and Average Index. From the study, it is found that the two types of procurement methods, Traditional, Design and Build are practiced in the study area. The result shows that Design and Build is frequently used in handling construction projects than the traditional method which is ‘Averagely’ used. From the study, the traditional procurement method frequently experiences disputes. The causes of disputes are poor communication, design errors, delay in payments, error in construction, excessive contract variations, multiple meaning of specification, difference in site condition, construction claims, difference in evaluations and public interruptions. The Alternate dispute resolution (ADR) consists of conciliation and mediation, was usually used in setting disputes without going to court, followed by Arbitration and litigation and the Design and Build procurement method is found to be the most appropriate in reducing construction disputes.