Impact of Contractors’ Financial Capability on Construction Project Delivery in Nigeria
Zubair, Ahmed * & Ataguba, Joseph Obaja
Department of Quantity Surveying, Federal Polytechnic Idah, Kogi State, Nigeria
Department of Estate Management, Federal polytechnic Idah, Kogi State, Nigeria
ABSTRACT
Analysis of financial strength is a criteria that indicate the likelihood of contractors’ capability and therefore for a major criterion for evaluating construction contractors’ during prequalification and tender evaluation.
The purpose of this study is to assess the impact of contractors’ financial capability on construction project delivery in Nigeria. Prequalification assessments based on financial reputation and other prequalification of
winning contractors’ as well as cost data relating to 67 completed building projects were source from clients; consultants and contractors. Tools for data analysis comprised frequency distribution tables, percentile, mean
item score and analysis of variance. A further decomposition of financial capability into co – variables revealed that annual turnover, value engineering, and financial prudence, financial stability, credit worthiness, tax status and financial status are among the co – variables that exert strong influence on construction project delivery. The study has clearly shown that contractors’ financial reputation is an important criterion for
evaluating potential performance of construction contractors’ during prequalification and tender evaluation.It is therefore recommended that construction practitioners and clients should only considered financial
capability of contractors to determine their level of insolvency more emphasis should be based on technical and managerial capabilities of contractors during prequalification and contract award in Nigeria.
Keywords: contractors’, financial capability, construction project delivery.
