INTRODUCTION
1.1 Background to the Study
The
Construction process is capital intensive. From inception to completion, cost
is incurred at every stage. However, the major cost is incurred during the
actual construction stage where irreversible commitment of fund is undertaken
in the procurement and deployment of resources such as labour, plant, materials
and managerial expertise to achieve the finished product. The contractor is the
party who uses these resources to bring the works to fruition. These
contractors are either foreigners or indigenes; in which case, they originate
locally and operate within the immediate project vicinity, state or country.
They are often referred to as natives. Nigeria Indigenous contractors have not
had a fair share of major construction activities in the country, as they are
often awarded to their foreign counterparts who are considered technically and
managerially more superior and efficient in funds acquisition and project
execution (Ogbebor, 2002).
Vis-à-vis
this, indigenous contractors have over the years being plagued with
under-capitalization, poor project performance in terms of meeting completion
dates, work quality and capital management which has often led to bankruptcy
and in extreme cases, project abandonment. In other words, most indigenous
contractors complete construction contracts at sums far in excess of the
initial contract sums and within time frames in excess of the pre-planned
completion times. There is thus no gainsaying that for successful project
initiation and delivery there must be adequate provision and availability of
capital (Ogunlana, 2010).
According
to Harris and McCaffer (2015), the contractor’s working capital or finance is
the resources he requires to facilitate the smooth execution of the
construction work on site. It is made up of cash at hand bank loan, overdraft,
credit purchases, work-in-progress, recoverable debts. Working capital also
comprise the assets needed to lubricate the daily transactions of the
construction business. Bamisile (2008) also defined working
capital as the margin between current assets and current liabilities. Working
capital requirements, its composition and use, changes as construction
operation progresses on site. As results of its fluidity, it is also called
circulation capital in construction since it performs similar functions to that
of blood in a human body. As blood circulates, so is working capital required
throughout the construction period (Akinsulire, 2012). The management of
working capital involves the planning, sourcing, and controlling the use of
working capital during construction. It borders on adequacy, the right
composition and right financing at all times during the construction stage. It
requires a concerted positive effort by the contractor as mismanagement can
undermine his productivity and profit level (Oseni, 2014).
Management
of working capital thus involves the determination of the optimal level of
working capital requirement of a construction project, and to keep monitoring
and controlling the level of individual components of working capital that the
level is not exceeded, and that there is adequate provision of funds to finance
current assets to enable projects to be delivered within reasonable cost and
time. Construction contractors are entrepreneurs involved in the management of
construction projects (NIQS, 2012).
The major effect that can impact more on the indigenous contractors is giving
them the same right as to other international contractors, also adequate
monitoring should be put in place to evaluate the effect of challenges facing
the indigenous contractor. Likewise the government should be ready to associate
themselves with the indigenous contractors to help the Nigeria economic and
construction company to growth as expected.
1.2
Statement
of Problem
A
number of problems have been identified as being responsible for the
backwardness and retardation in the general growth of Nigeria’s indigenous
contracting films the persistent set back in the growth of the indigenous firms
have been assumed to centre on followings: inadequacy of capital, poor
technological manpower deficiency, mass illiteracy, management incapability and
marketing in competency (National and International) etc, there are more that
form the cover problems of the growth of our indigenous firms. The small and
medium scale enterprise lack adequate equipment to help in facilitating their
project to enable adequate work output. It is the intention of the researcher
therefore to take a critical examination of the internal and external factor
affecting the growth of our indigenous firms. Likewise, the government are
expected to be helping the small scale enterprise to be able to meet up with
their target as expected. The short period of time when project or contract are
been handed to contractor ought to bring about changes to help the construction
industry to improve with respect to the indigenous contractors over the foreign
firms contractors.
There is a
general contention that the rate of growth of our indigenous firms, especially
since the pushing aside of the aliens, has been slow. This statement in the
challenges of indigenous firms in Nigeria, problems and prospects will be
investigated and possible recommendation given as to the solutions.
1.3 Research
Questions
1.
How can growth challenges facing
indigenous companies in Nigeria be properly addressed?
2.
What contributions have government
establishments made towards the growth of indigenous companies in Nigeria?
3.
Does poor financing constitute a major
challenge in the performance of indigenous contractors in Ibadan?
1.4 Aim and Objectives
1.4.1 Aim
The aim of this study is to examine critically
the challenges and prospects of indigenous contractors in public-sector
construction projects with a view to enhancing future prospects.
1.4.2 Objectives of the Study
1.
To identify and examine growth
challenges facing indigenous contracting firms.
2.
To evaluate the future prospects of the
indigenous contracting firms in Nigeria.
3.
To determine whether poor performance
constitutes a major challenge in the performance of indigenous contractors in
Ibadan.
1.5 Research Hypotheses
H0:
Lack of sufficient capital and poor
financial management does not hinder the growth of indigenous firms in Nigeria.
H1:
Lack of sufficient capital and poor
financial management hinder the growth of indigenous firms in Nigeria.
H2:
Marketing of products is not a major
problem facing indigenous construction firms in Nigeria.
H3:
Marketing of products is a major
problem facing indigenous construction firms in Nigeria.
1.6 Significance of the Study
The study will
help pin point the various challenges and prospects of indigenous contracting
firm in public sector as well as solution to these challenges. Findings and
recommendations from the study will enable company managers and the government
to rally (Ogbebor, 2012). together and develop better policies that
will encourage our Nigeria owned companies to grow. The study will also bring
out strategies and techniques that can be adopted by indigenous contracting
firms in Nigeria to beat foreign owned firms and survive competition.
1.7 Scope and Limitation of the Study
This study focuses attention
on the problems and prospects of indigenous contractors in public sector
construction project.
In view of this this project
shall be limited to the Small and Medium Scale Enterprises in Ibadan North
Local Government Area, Oyo State. This will focus our attention on the case
study in Ibadan North in Oyo State, Nigeria.
Click to Download Full Project
PAYMENT OPTIONS
Option
one
For you to have access to the other
Chapters kindly click on the button below to download. Payment of N5000.00 will
be required of you to pay before downloading the materials. Our Materials is
Unique and accessible.
Click to Download
Option Two
You can pay to these following Bank Account No.
a. Account name: Solomon Samuel A.
Account No. 0049522201
Bank Name: Gtbank
Click to Download
Option Two
You can pay to these following Bank Account No.
a. Account name: Solomon Samuel A.
Account No. 0049522201
Bank Name: Gtbank
b. Account name: Abimbola Olawale Yusuf
Bank Name: 1st Bank
Account No.: 3046183290
After payment call the following Numbers for the Complete Project to be sent to your email; kindly send us the following details:
a. Email Address
b. Phone number
c. Teller Number
d. Code and Name of Project Topic.
Kindly send us these following information and the Complete Material will be sent to your mail in 30 minute time of the confirmation of the money sent.
Also, you can contact Sabtech Education on 07066244719, 08038581735, 08189473989
Whatsapp No: 07066244719, 08189473989
And through the email address: sabtechcafe@gmail.com.
Wishing you Best of Luck in your
Academic pursuit and endeavors, God Bless.
No comments:
Post a Comment
Add your Comment