An empirical study of assets structure of building construction contractors in Nigeria

Abstract

Purpose

The paper aims to report the research findings on the assets structure of medium‐sized building construction contracting firms in Nigeria and its implications on their operation.

Design/methodology/approach

The survey approach was adopted for the study. Two sets of data were collected: secondary source data from audited financial statements and primary source data using a structured questionnaire administered to management personnel of contracting firms. Descriptive statistical analysis and ratio analysis were employed for data analysis.

Findings

The results show that the assets structure of these firms comprise of fixed assets being less than half of the total assets, which imply that a greater portion of the total assets is current assets (held mainly as account receivables that sometimes may not be available within one year). There is generally a low investment in fixed assets from earnings over the years. The assets structure of these firms could impact on their ability to compete successfully on some project types especially where hiring options for plant and equipment are unavailable.

Originality/value

The research provides information on the assets structure of the medium‐sized building construction contractors in Nigeria. The study points to the need for adoption of a more proactive approach by building contractors in the face of a fluctuating workload.

Citation

Kehinde, J.O. and Mosaku, T.O. (2006), "An empirical study of assets structure of building construction contractors in Nigeria", Engineering, Construction and Architectural Management, Vol. 13 No. 6, pp. 634-644. https://doi.org/10.1108/09699980610712418