AWARD OF CONTRACT THROUGH DUE PROCESS AND ADMINISTRATION USING FEDERAL GOVERNMENT CONTRACT DOCUMENT

ABSTRACT

The incessant failure rate of project and its abandonment has posed a big problem to the Nigeria economy. This study focused on the need to award contract through due process and the implementation of such project. It considers why most project or contract fail and proffers some solution to the accomplishment of the project. To achieve this, both secondary and primary data were collected through textbook, journals and past project etc where as the primary data are collected through questionnaire disseminated to workers of my area of study and the statistical tool used for the analysis was chi-square method. The investigation reveals that with due process transparency and accountability of government can be achieved and the investigation also reveals that Nigeria as a developing counting needs due process in their contract award. It was recommended among other thing that experts should be consulted right from the onset of a project. The use of experienced and qualified consultants during project initialization should in most cases be mandatory . It is believed that with dude process project implementation will be successful and contract failure will be reduced if not eradicated.

TABLE OF CONTENTS

CHAPTER ONE - Introduction

1.1    Background of study                                           

1.2    Statement o the problem                                                     

1.3    Research questions                                                     

1.4    Research hypotheses                                  

1.5    Objectives of study                                                     

1.6    Significance of the study                                                      

1.7    The scope of the study                                        

1.8    Limitation of the study                                                 

1.9    Definition of terms                                              

References                                                        

CHAPTER TWO   -     Review of Relates Literature

2.0    Introduction.                                                                      

2.1    Road Construction.                                                     

2.2    Primitive Building                                                

2.3    Flint                                                                          

2.4    Trabeated Construction                                                

2.5    Modern Industrial Construction                                     

2.6    History of Construction in Nigeria                                  

2.7    Historical Development of Contracts                              

2.8    Trend in Contract Management                                     

2.9    Due process in other Countries                                     

2.10  Due Process Mechanism in Nigeria                        

2.11  The role of due process in Nigeria                                         

2.12  Contracting Process.                                                           

2.13  Importance of Contract                                                       

2.14  Contract award through due process policy                             

2.15  Meaning of due process                                                       

2.16  Guidelines for Implementation of due process Certification of Contract

award                                                                       

2.17  Certification of Contracts above one Million Certification but below                      the fifty Million Naira thresholds                                 

2.18  The tender process                                                     

2.19  Advertisement for award of Contract                             

2.20  Pre- Qualification of Contract                                

2.21  Invitation to Bid                                                 

2.22  Contract Agreement                                                    

2.23  Transmission of Ministry Due Process Certification (MDPC) to the                Accountant General of the Federation                                    

2.24  Guidelines for stages of work Completion               

2.25  Finalization of Internal Due Process Cycle                       

2.26  Certification Schedule for Project above the Fifty Million Naira Threshold      34

References                                                        

CHAPTER THREE         -  Research Methodology and Design

3.0    Introduction                                                                       

3.1    Research Design                                                 

3.2    Population of the Study                                                       

3.3    Sample size and Sampling Procedure                                     

3.4    Sources of Data                                                         

3.5    Instrument of Data Collection                                                       

3.6    Method of Data Analysis                                                      

3.7    Validity and Reliability of Instrument                                      

CHAPTER FOUR          - Data        Presentation, Analysis and Discussion of Findings

4.0    Introduction                                                               

4.1    Analysis of Data                                                 

4.2    Hypothesis Testing                                              

4.3    Discussion of Finding                                           

CHAPTER FIVE  -  Summary, Conclusion and Recommendations

5.1    Summary                                                          

5.2    Conclusion                                                         

5.3    Recommendations                                                      

5.4    Suggestion for Further Studies                                      

Bibliography                                                              

Appendix                                                           

Questionnaire                                            

CHAPTER ONE

INTRODUCTION

1.1    Background of Study

The Nigeria government commits several millions of naira to construct project such as house, roads and other infrastructures that will be beneficial to the society. The provision of these infrastructures involves planning designs, Construction and administration. Planning includes the physical layout and an evaluation of the socio-political as well as institutional aspect of the structure. The design involves the architectural and engineering aspect including the structure integrity of the various Components to ensure safety, Comfort and the initials objective of the owner when the structure is constructed. Construction involves the building following the various guidelines and Condition of Contract to produce the building and administration include the various action of the owner be it the federal government state or individual in ensuring the continued performance of the building in satisfying the desired objectives for its construction through both its design and economic life. This process may last for some years. It may require the labour of a thousand men in hundred of different trades and occupation, the accumulated knowledge of a generation of experts and the use of national and manufactured products until such a time when the construction work are Completed there must a continues resolve to pursue the Construction to finality and resources must be provide in terms of money manpower machines and material to support the resolve throughout the long period of design and Construction. Thus civil engineering work are not products that can be bought ready made off the shelf. It then means that Civil engineering work must be Commissioned, ordered in advance. And so the work must be tendered for and must also pass through due process and contract awarded for the execution of the work. Construction project could be executed through either direct labour or through contracts. In the direct labour of doing construction work, the Client hires the services of personnel and pay them on daily basis. But in contract method of executing construction project, the client enters into an agreement with a contract who undertake to execute the project for a give sum of money called the “CONTRACT SUM” The contract method of executing project is usually bound by the term and condition of the contracts.

The contract agreement stipulates the quantities of work to be done, the limits within which the whole work have to be completed and every other condition made. However the award and administration of contract have been so much abused in Nigeria. This is as a result of inflation of contract price by those involves in the award of contract to the contractor. For example contract price is found to be inflated by “X” percent and the contractor is forced to accept a new price less the “X” amount. This has caused some contractor to stop or even abandon work on site due to the fact that the “X” amount is not enough to execute the job. Most of the contracts awarded by the Nigerian government have failed along the line. Some of the projects on hand have collapsed (as in the case of building.) due to inferior material. This is as a result of the disregard to the due process by executive of some parastatals who do no pay any regard to contract term. This has made it necessary for government to institute the award of contract through due process.

1.2    Statement of the Problem:

In every development plan, the government budget huge sums of money running into several billons of naira for the provision of infrastructure unfortunately these projects which are suppose to benefit the society are hardly realized. Those actually completed are usually of inferior quality and are usually completed at cost much higher than the original price. Today, our society is littered with money uncompleted or abandoned projects. The consequences of this are that there is little or no development in the society. Also the people are disenchanted with the government, which is usually viewed suspiciously by the people for these reason it was necessary for the government to solve these problem. Thus;

1.     Why should government spend so much money on an unachievable project?

2.     Why are some of the project done half- way and of inferior quality?

3.     What should government do to check or monitor the full implementation of projects?

4.     Who is to do that?

This problem was becoming an epidemic, consequently the government responded by setting up the budget monitoring and price intelligence unit (BMPIU) that is charged with the responsibility of ensuring that due process is followed in tendering award and execution of contract for government construction works. It is a simple mechanism that Certifies for the test of proper project implementation Packaging, such packaging must be adhered stringently to the international competitive bid approach in the award process.

1.3    Research Questions

The following research questions are formulated to guide the study.

1.     How would government achiever the administration of project using due process mechanism in contract award?

2.     How would due process in contract award improve system planning and project preparation work leading to transparency and accuracy of costing.

3.     Does due process improve liquidity? Management of public fund.

4.     How will due process enhance transparency and accountability of government?

1.4    Research Hypotheses

For the purpose of this study, the following research hypothesis were formulated:

Ho:   Effective administration of project cannot be achieved using due process mechanism in contract award.

Hi:    Effective administration of project can be achieved using due process mechanism in contract award.

Ho:   Due process in contract award improves system planning and project preparation work do not lead to transparency and accuracy of costing.

Ho:   Due process does not improve liquidity management of public fund.

Hi:    Due process improves liquidity management of public funds.

Ho:   Due process enhances transparency and accountability of government.

Hi:    Due process does not enhance transparency and accountability of government.

1.5    Objectives of Study

The purpose of this study is to know the relevant of the budget monitoring and price intelligence unit (BMPIU) and analyses how they have used the due process mechanism to re-establish and sustain an open, transparent and competitive federal government procurement system that is integrity driven, uphold spending in order to achieve value for money and to ensure efficiency and integrity based monitoring of the implementation of all federal government project on time with due principles.

1.6    Significance of the Study

It is envisaged that at the end of this study various interest group will benefit from the research.

1.     To contractors, this work will provide adequate information on various way of seeking for contracts and its implementation.

2.     It will equally form the basis for policy formulation and implementation.

3.     The academic world will finds this work equally useful for legislative decision on issues relating to the awarded contract and its implementation. The general public who happens to come across this will know the relevance of the federal government contract document and due process bureau in the award of government contract, thus acting as an eye opener to them.

1.7    Scope of the Study

The scope of our study is limited both in variables (operational management and coverage of sector). This research particularly covers both private and public sector of the economy.

This is necessary to ensure a wide coverage of all interest in the organization.

1.8    Limitation of the Study

    Generally, people dose not like to volunteer information especially when it is to unveil a secret. Thus sufficient information needed in my area of study was not gotten:
    Financial constrain: Money as the saying goes answers all thing: this work is limited due to financial constrain encountered by the researcher in the course of sourcing for information and other relevant areas in the study.

1.9    Definition of Terms

    Contract: The process of undertaking a venture. It is an agreement that creates an obligation binding upon the parties there to.
    Due process: An analyzed or systematic way of doing things. As defined by (BMPIU) (2005 Vol 1). Due process is a mechanism for ensuring strict Compliance with the openness competition and cost, accuracy rules and procedures that should guide contract award with federal government of Nigeria.

    Contract Document: A federal government Document that state how a project is to be awarded and implemented.
    Award of Contract: The process of giving out a contract.

 REFERENCE.

Budget Monitoring and Price Intelligence Unit (BMPIU) The ABC of The Contract Of Due Process Policy. State House Presidential Villa Abuja WWW.BMPIU. Gov. Org.