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Supply Chain Management Practices in Construction Procurement: Perceptions of Professional Quantity Surveyors in Ondo State, Nigeria

 

FEATURED PAPER

By Dr. Isaac Olaniyi Aje
Department of Quantity Surveying, Federal University of Technology, Akure

Bosede Aderibole
Ministry of Housing and Urban Development, Ondo State

Olusola Ogunsina
Department of Quantity Surveying, Nnamdi Azikiwe University, Awka

Nigeria

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Abstract

Using a questionnaire survey administered among fifty five professional quantity surveyors who are members of the Nigerian Institute of Quantity Surveyors, the research herein reported sought to elicit the awareness of quantity surveyors of supply chain management and its practices, the involvement of quantity surveyors in supply chain management as well as factors constraining the involvement of quantity surveyors in these activities. The data collected from the survey was analyzed using SPSS-embedded Mean Item Scoring and Involvement Index. The results shows that of the 55 quantity surveyors surveyed, 39 useful responses were received, thus representing a 71% return rate. The research reveals that the top three popular supply chain management activities are information dissemination (with mean item score of 4.05 and ranked 1 out of 13 activities), management leadership (with mean item score of 4.03 and ranked 2) and relationship development (ranked 3 with mean item score of 3.85). With regards to the involvement of quantity surveyors in supply chain management activities, relationship development has the highest involvement index of 58.5, while the effective use of management options has the least involvement index of 3.94. The study also reveals that inadequate infrastructure in information technology is perceived to be the most serious constraint to the involvement of quantity surveyors in supply chain management issues, while ignorance of buildability issues to be the least constraining factor. In generalizing the findings, the limited geographical scope and small population should be borne in mind.

1.0 Introduction

In many parts of the world, the construction industry has been criticized for its less than satisfactory performance, its fragmentation and its adversarial orientation to procurement (Hoonakker, Carayon & Loushine, 2010 in Lin & Gibson 2011; O’Brien, 1999). Industry stakeholders have been called upon to jettison adversarial relationships for long term collaborative relationships (Cheung, 2011). With a characteristic high level of fragmentation, supply chain management is a fitting path for construction enterprises in creating value through the effective integration, coordination and management of the chain, from suppliers to clients; supply chain management adopts a holistic approach towards relationship management within and without the focal enterprise (Ahmed, Azhar & Ahmad, 2002; Emuze,2009).

Supply chain management seeks to synchronize a firm’s functions and those of its suppliers to match the flow of materials services and information with customers demand. The notion of supply chain management was developed from the management doctrine in the 60’s based on the belief that a single activity cannot assure the effectiveness of a system with a chain of activities (Chen, 2004).   A supply chain consists of a network of key business processes and facilities, involving end users and suppliers that provide products, services, and information (Cheng, Law, Bjournson, Jones and Sriram, 2010).While the construction industry is in search of a better methodology for procuring built assets, the quantity surveying profession has been in search of greater relevance in the procurement and management of built assets.

Besides delivering traditional services for which quantity surveyors are known, argues that quantity surveyors must get inside the head of their clients, fully appreciate their business objectives, and find new ways in which to deliver value and conversely remove waste from the procurement and construction process. Ashworth and Hogg (2000) reviewed the development of quantity surveying and identified a shift in emphasis from cost to value with many quantity surveying firms extending the range of services that they offer clients. Iyortyer (2006) opines that in order to face the future effectively Quantity Surveyors must seek to enhance their management skills to be successful.

The paper stated that the importance of this stems from the tendency to become complacent in   daily routines, but must avoid such complacency in order to move with the times and face the 21st century with proficiency. Could an understanding of supply chain management and its popularization by quantity surveyors in Nigeria become a path to more strategic relevance for the profession in Nigeria? This is the key question for a wider research effort. As part of the effort to answer this question, the research reported herein seeks to answer the following questions:

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About the Authors

 

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Dr. Isaac Olaniyi Aje

Federal University of Technology
Akure, Nigeria

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Dr. Isaac Olaniyi Aje
is an Associate Professor of Quantity Surveying at the Federal University of Technology Akure, Nigeria. He holds a Ph.D degree in Quantity Surveying from the Federal University of Technology Akure, and a registered member of the Nigerian Institute of Quantity Surveyors. His research interest relates to Construction Contract Procurement and Quantity Surveying Practice. He is also involved in a number of cost consultancy services to a number of projects for both public and private clients in Nigeria. Dr. Aje has also serves as External Examiner to a number of Universities and   polytechnics in Nigeria. He has published over 40 articles in international journals and conference proceedings.



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Bosede Aderibole

Ministry of Housing and Urban Development
Ondo State, Nigeria

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Bosede Aderibole
is a member of the Nigerian Institute of Quantity Surveyors. She is currently practicing with the Ondo State government. She has provided her services as a resource person for the annual Nigerian Institute of Quantity Surveyors professional examinations preparatory classes. Aderibole has just concluded her master’s degree in the procurement studies specialism of quantity surveying at the Federal University of Technology, Akure Nigeria. She intends to start her doctorate afterwards.

 
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Olusola Ogunsina

Nnamdi Azikiwe University
Awka, Nigeria

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Olusola Ogunsina
is a graduate research student building his competence in the governance, pricing and management of capital projects within and without the construction industry in Nigeria.