Proposal on Past Performance

The last decade however exposed the declining level of client’s satisfaction from the built facilities as a result of poor quality performance in addition to the perennial problem of time and cost overrun ( Arazi and Sodangi). Xiaohang 2011 explained that construction contractors have big influence upon project and their success. There are many main contractors’ selection criteria that can be found in literatures, but in real practice, clients may have their different criteria (Arazi et al, 2011).

(Olatunji, 2007) said most of the models of assessment used for the selection of contractors are not based on value and merits of bids, but on the tender price as well as the “initial” lowest bids. It was discovered that the continual award of contracts based on the lowest tender figure under the “Due process” policy as against the lowest realistic tender figure is the major factor causing time overrun and poor quality construction in Nigeria (Aje et al, 2008). Traditionally, the majority of construction contracts have been awarded using the low bid process (United State department of Transport, 2012).

(William 1998) stated that Contracting agencies have long been required to consider past performance information concerning an offeror in determining whether he or she is qualified to perform the contract as a responsible contractor. Also, (Steyaert 1997) explained that the contractor’s past performance record is arguably the key indicator for predicting future performance. As such, it is to the government to make use of past performance in evaluating and selection of contractors for the award of contract.

(AcQuipedia encyclopedia) defined past performance Information as a relevant information for source selection purposes regarding a contractor’s action under previously awarded contract. (Kashiwagi et al, 2008) explained that, in construction, the perception exist that, though performance information is collected, it is lacking substantial substance in its application and effect. There is an important distinction between contractor’s performance and a contractor’s experience.

Experience reflects whether contractors have performed similar work before, while past performance describes how well contractors performed the work. Past performance information as an evaluation criterion is common; however, the optimal use, method, specific criteria, and collection techniques vary widely across clients and buyers (Keneth and Savicky, 2010). This research work hereby aims to study the usage of past performance information as an evaluation criterion in the selection of contractors.

PROBLEM STATEMENT

“The challenge for many clients is how to select a contractor if they don’t use price as the criteria. The answer is a process that analyzes the various contractors and makes the selection based on performance instead of merely price. While a price is always a factor, price without performance factor is meaningless” (Ted 2011) “Performance of construction project will only increase when the contractor is motivated to maximize his or her profit by performing. If past performance is not considered in hiring a contractor, the contractor will not be motivated to perform” (Kashiwagi and parmer, 2004)

RESEARCH QUESTIONS 1. What is the current level of using past performance as a criteria for the selection of contractors? 2. What are the current parameters used in evaluating contractor’s past performance in Nigeria? 3. What are the significance of using past performance information as a criteria in the selection of contractors in Nigeria? AIM AND OBJECTIVES The aim of this project work is to carryout out a study on the use of past performance information as a tool in the selection of contractors for construction projects in Nigeria. The main objectives are: 1.

To determine the current level of using past performance as a criteria for the selection of contractors in Nigeria. 2. To identify the current parameters used in evaluating contractor’s past performance in Nigeria. 3. To investigate on the significance of using past performance information as a criteria for contractor selection in Nigeria. NEED FOR STUDY The main purpose of this project work is to expose clients and consultants in the Nigerian construction industry on the significant use of past performance information in the selection of contractors in order to achieve the best value for their projects.

RESEARCH METHODOLOGY To achieve the aim of this project work, the methodologies that will be employed are as follows: 1. Questionnaires will be distributed to the various clients and consultants within Kaduna state. This will be of two parts; Data with regards to the level of using past performance as a selection criteria for contractors will be gotten through the use of a questionnaire designed by listing all the criterion used in the selection of contractors of which respondents will be required to identify which of the criterion is used in his or her own selection process.

While an open ended questionnaire will be designed for the respondents to list the parameters being used by them in evaluating the contractor’s performance. 2. A literature review will be carried out in order to investigate on the significant use of past performance information as a criteria for the selection of contractors. This will be done by citing cases where the use of past performance information was used to achieve greater performance by contractors. Data will be sourced mainly from Internet sources and other relevant materials.

SCOPE OF THE PROJECT Considering the time frame given for this research work, the respondents for this research work will be selected clients and consultants within Kaduna state in Nigeria. REFERENCES 1. Steyaert, J (1997) White Paper Past Performance, U. S. General Services Administration. Retrieved February, 2013, from http://www. acqsolinc. com/pastperfdoc/pastperfwp. html 2.

A guide to collection and use of past performance information (version 3) Retreived February, 3013, from http://acquisition. navy. mil/rda/content/download/4452/20097/version/1/file/ppi_guide_2003_final. pdf 3. Kenneth Sullivan, Dean Kashiwagi and Brad Carey (2008), “Analysis of the Use of Performance Information in the Construction Industry”, First International Conference on Construction In Developing Countries (ICCIDC–I) “Advancing and Integrating Construction Education, Research & Practice”, Karachi,, Pakistan Retreived on February, 2012, from www. civil. neduet. edu.

pk/ICCIDC-I/Conference%20Proceedings/… /034. pdf 4. Arazi Bin Idrus and Mahmoud Sodangi, “Framework for Evaluating Quality Performance of Contractors in Nigeria”, Internatinal Journal of Civil & Environmental Engineering IJCEE-IJENS Vol: 10 No: 01, pp 34-39 5. Xiaohong Huang (2004), “An Analysis of the Selection of Project Contractor in the Construction Management Process” International Journal of Business and Management Vol. 6, No. 3, Canadian Center of Science and Education, pp 184-189

6. Arazi Idrus, Mahmoud Sodangi and Mohamad Afeq Amran (2001), “Decision Criteria for Selecting Main Contractors in Malaysia”, Research Journal of Applied Sciences, Engineering and Technology 3(12), Maxwell Scientific Organization, 2011, pp 1358-1365. 7. William T. Woods(2007), “Use of Contractor Performance Information”, , United States Government Accountability Office. Retreived February, 2012, from www. gao. gov/new. items/d071111t. pdf 8. Kenneth T.Sullivan and John Savicky(2010), “Past Performance Information: Analysis of the Optimization of a Performance Evaluation Criteria” Journal for the Advancement of Performance Information and Value, pp 13-22.

9. Definition of Past performance Retrieved on February, 2012, from www. acquipedia. com A STUDY ON THE USE OF PAST PERFORMANCE INFORMATION AS A TOOL FOR SELECTING CONTRACTORS FOR CONSTRUCTION PROJECTS IN NIGERIA (A CASE STUDY OF KADUNA STATE) BY HUSSAINI ABDULHAFIZ 2008/1/30371VQ A PROJECT PROPOSAL SUBMITTED TO: THE DEPARTMENT OF QUANTITY SURVEYING FEDERAL UNIVERSITY OF TECHNOLOGY, MINNA FEBRUARY, 2013