EVALUATION OF THE CHALLENGES FACING SMALL AND MEDIUM-SCALE BUILDING CONTRACTORS IN NIGERIA

David Mbazor; Clinton Aigbavboa; Wellington Thwala

doi:10.4314/njt.v43i1.4

Authors

D. Mbazor Department of Estate Management, Federal University of Technology Akure, Nigeria
C. Aigbavboa Department of Quantity Surveying and Construction Management, University of Johannesburg
W. Thwala Department of Civil Engineering, Walter Sisilu University, East London, South Africa

DOI:

https://doi.org/10.4314/njt.v43i1.4

Keywords:

Construction industry, small and medium sized contractors, Nigeria, local content, Construction skills

Abstract

In this study, the challenges associated with the operations of small and medium-scale building contractors in Nigeria were considered. Globally, the construction industry is faced with several notable challenges in terms of technological advancement, development of operational processes and mechanisms, and keeping up to date with the prevailing business trends. The main objective of this study is to examine the problems that are facing small and medium-scale building contractors in Nigeria. The study employed a questionnaire survey as a data collection instrument. A total of 317 closed-ended questionnaires were administered to small and medium-sized contractors in Akure Nigeria. However, only one hundred and seventy-two (172) returned questionnaires were found valid for analysis. The data was analyzed using the simple descriptive statistical method of percentage and weighted mean score (WMS). Findings revealed that inadequate startup capital for contractors was the major problem facing small and medium-scale building contractors in the study area given its highest mean score of 4.0697. In light of the above, the study recommends that the government being the major player in the building industry should endeavour to initiate, create, and implement policies such as grants and aids for small and medium-sized contractors to enable them to remain in business no matter the state of the economy. It is concluded that the ineffectiveness of the small and medium-sized contractors in the study area is influenced by the un-availability of startup capital, lack of political will in implementing policies that assist small and medium-sized contractors, delayed payment, high-interest rates on loan facilities, and difficulty in getting guarantors for the loan facility.

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