Perception of Some Professionals in Ondo State, Nigeria on the Impact of Outsourcing in Construction Projects

Abstract

Nigeria's indigenous construction companies face the problem of poor performance on construction projects in different areas in terms of quality, cost and time. This may be due to the fact that companies do not have good creativity and technology to improve their construction activities and evaluate them. One of the innovations is the outsourcing in construction projects. To this end, this study was carried out to examine the perception of some professionals in Ondo State, Nigeria, of how outsourcing has been used in the construction of projects. A Survey design methodology was used. One hundred and two (102) questionnaires were sent to the respondents (Engineers - 41, Builders - 17, Quantity Surveyors - 18, and Architects – 26). The data gathered was statistically analyzed. The results showed that 30 % and 70 % were female and male respectively and they are all qualified in terms of their academic qualifications. The findings showed that the areas of company outsourcing include substructure, superstructure (18.6%), finishing (27.1%), and materials (34.3%) which were outsourced by 20 percent of respondents. Over forty-two percent (42.9%) of the respondents suggested that their level of outsourcing for companies is exceptionally high. The professionals observed that outsourcing has improved their company efficiency on project construction; cost reduction, delivery time, cost control, quality of project. The independent Kruskal-wallis sample test established the relationship between project success and the level of company outsourcing. Finally, to improve the use of outsourcing, the respondents indicated that organizing seminar; doing your homework; keeping a good clear record; issuing proposal requests; ensuring quality work; buying into management; involving key parties; ensuring a competitive environment are important criteria for improving the performance of contractors on construction projects.

Keywords: Outsourcing, Ondo State, Contractors, Respondents, Engineers, Kruskal-wallis