The effect of systemic factors on contract services in Nigeria

The productivity of the Nigerian construction industry is significantly lower than that of its foreign counterparts. Structural factors contribute to this poor performance and are dealt with in Aniekwu and Okpala (1987). This paper deals with another set of factors which are termed systemic, and which can be defined as problems arising from the application of systems not suitable to a particular environment. Through a survey, a set of these factors were identified, analysed and related to specific provisions in the conditions of contract in use. Their effects on the performance of contractors, especially local contractors, are also reviewed. It was observed that the provisions of the contractual arrangements in use are of a general nature and hence are not directed at the peculiar situations in a developing economy like Nigeria; consequently a gap exists between the basic premises on which the provisions are based and the prevalent situation in the industry. It is therefore suggested that government shoul...