Examining Procurement Methods and Practices for Private Construction Projects in Abuja, Nigeria

Abstract

The private construction sector in Abuja, Nigeria, despite contributing 4.7% to the national GDP, faces significant challenges in procurement and contract management that compromise project outcomes. This study examines the effectiveness of procurement methods and contract management strategies in Abuja's private construction projects, with particular focus on identifying operational challenges and improvement opportunities. Through a mixed-methods approach encompassing 133 industry professionals—including project managers, procurement officers, and contract managers—the research revealed several key findings. Design and Build procurement methods demonstrated superior effectiveness (3.94/5) in timeline reduction and cost predictability compared to traditional methods (3.56/5). However, traditional approaches still dominate, with 65% of projects, thereby contributing to significant inefficiencies, for example, having average delays of 150 days and 30% budget overruns. Risk management emerged as the primary challenge (impact score: 3.88), particularly in contractor selection and procurement planning. Contract-related disputes affect 40% of projects, stemming from inadequate enforcement mechanisms and imprecise agreement terms. Digital procurement systems show promising results, with implementing firms reporting 25% fewer contract disputes and 32% better documentation compliance, though adoption remains low at 35%. The study's findings indicate that integrating digital solutions, strengthening risk management protocols, and enhancing professional training could substantially improve project outcomes. Implementation of these recommendations could potentially reduce project costs by 25% and accelerate completion times by 30%. This research advances procurement theory within the context of Abuja's private construction sector while providing practical frameworks for aligning local construction practices with international standards.