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Article
Publication date: 9 April 2018

Akintayo Opawole and Godwin Onajite Jagboro

The purpose of this paper is to develop compensation mechanisms against risks factors that impact private party’s costs in concession-based projects as a basis for…

Abstract

Purpose

The purpose of this paper is to develop compensation mechanisms against risks factors that impact private party’s costs in concession-based projects as a basis for minimizing failure rate of concession contracts.

Design/methodology/approach

The study extended earlier work on the factors that impact private party’s costs in concession-based projects by developing compensation mechanisms against the risks factors. It commenced with semi-structured face-to-face interviews which were launched with different stakeholders organizations that had been involved in PPP contracts in the Southwestern Nigeria. Responses from the interview were analyzed using interpretative phenomenal analysis via ATLAS.ti6/7. The mechanisms identified from literature review were assessed through structured questionnaire which were administered on professionals selected from governmental-based organizations (ministries, agencies, corporations/parastatals, etc.), private developers/concessionaires, law firms, banks among others, using the respondent-driven sampling technique. The robustness of the quantitative data was achieved by including the initial respondents to the interview in the questionnaire survey. The quantitative data were analyzed using percentile for better understanding of the flexibility between “most” and “more” preferred mechanisms. The criterion for the selection of appropriate mechanism(s) for the factors was based on minimum average of 20.0 percent (the ratio of maximum percentage (100 percent) of the respondents to total number of variables) suggesting the five identified mechanisms. The results in both cases of qualitative and quantitative assessments were compared. Based on the convergences of the findings, preferred compensation mechanisms were developed against concession contract risk factors.

Findings

Options of mechanisms were developed against specific investment risks that are consequent to the defaults of the public party in PPP contracts. The findings indicate that the mechanisms in extant literature with respect to administration of traditional models are relevant for PPPs. The study, however, identified new concepts, including “compensative” “zero compensation,” “equitable sharing” and “adjustment of concession period,” which are suitable in specific cases of PPP contracts.

Practical implications

The study contributes to the body of knowledge on mechanisms for improving PPP project performance. Moreover, insights were provided on mechanisms that satisfy private investor in case of specific risk factors investigated. The findings are therefore expected to guide private party in the preparation of concession contract package that minimizes investments risks and thereby attracting more private investors both from local and international environments. The findings of the study would also contribute to the body of information for documenting standard conditions of concession contract in Nigeria.

Originality/value

Studies on critical performance factors on PPP were extended by developing compensation mechanisms against the investment risks that impact private party’s cost.

Details

International Journal of Building Pathology and Adaptation, vol. 36 no. 1
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 27 July 2018

Akintayo Opawole, Godwin Onajite Jagboro, Kahilu Kajimo-Shakantu and Betty Oluwafunso Olojede

The purpose of this paper is to evaluate critical factors that impact public sector organizations’ (PSOs) performance in PPP contracts with a view to improving their…

Abstract

Purpose

The purpose of this paper is to evaluate critical factors that impact public sector organizations’ (PSOs) performance in PPP contracts with a view to improving their capabilities toward efficient project delivery and attracting more private sector investments.

Design/methodology/approach

The research methodology is a quantitative approach which commenced with an in-depth literature review that provided the basis for identification of the variables that were evaluated through a structured questionnaire. Respondents were professionals from stakeholders’ organizations that had been involved in PPP contracts in the Southwestern region of Nigeria selected using respondent driven sampling technique. These include industrial practitioners from governmental-based organizations (ministries, agencies, corporations/parastatals, etc.), private developers/concessionaires, law firms, and banks, among others. Data collected were analyzed using mean, relative significance index) and factor analysis.

Findings

The critical performance factors of PSOs in concession contracts clustered under nine components. These were technical, legal, political, finance, market maturity, economic, procurement process, performance guarantee and degree of regulation. PSOs’ capability development measure in countries newly experimenting with concession model is expected to focus on these factors for improved project delivery.

Research limitations/implications

The study provided implications for capabilities improvement, legislation and policy making with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through the concession model.

Practical implications

The study provided implication for capabilities improvement, legislation and policing with respect to PPP transactions in countries newly experimenting with PPP contracts. This is highly significant to improving the capabilities of PSOs and attraction of more private sector partnership in infrastructure delivery through concession model.

Originality/value

Previous studies on PPP performance had either focused on the projects or generalized the performance assessment to PSOs and private investors. This study extended the researches on PPP performance by revealing factors specific to the public sector stakeholders.

Details

Property Management, vol. 37 no. 1
Type: Research Article
ISSN: 0263-7472

Keywords

Article
Publication date: 28 May 2021

Betty Oluwafunso Olojede, Akintayo Opawole, Godwin Onajite Jagboro and Oluwaseyi Olalekan Alao

The clarity of requisite roles of public sector organizations (PSOs) for successful procurement of public-private partnership (PPP) infrastructure in Nigeria is not…

Abstract

Purpose

The clarity of requisite roles of public sector organizations (PSOs) for successful procurement of public-private partnership (PPP) infrastructure in Nigeria is not well-established as the country is portrayed with the rising statistics on the haphazard pattern of operation of PPP model for infrastructure procurement. This has greatly beset the expected performance of a number of PPP projects which were intended to bridge the infrastructural deficit in the country. This study therefore examined roles the performed by PSOs in PPP infrastructure procurement with a view to delineate PSOs obligations and consequently improve project success.

Design/methodology/approach

The study was based on structured questionnaire survey of professionals in PSOs who have been involved in PPP infrastructure procurement in Southwestern Nigeria. The sampled professionals were drawn from a build-up of network through a referral chain by the adoption of respondent-driven sampling (RDS) method. The data collected were subjected to mean score analysis and Kruskal–Wallis test.

Findings

The study found that roles pertaining to management of variation, apportionment of penalties and abatements, select preferred bidders, establish management approaches for PPP risks are infrequently performed by PSOs in Nigeria. Whereas these roles are critical to successful procurement of PPP infrastructure as they are prerequisites for PPP infrastructural project success.

Originality/value

The study provides information that would be useful for developing countries with evolving PPP markets for enhanced project delivery.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 27 March 2020

Betty Oluwafunso Olojede, Akintayo Opawole and Godwin Onajite Jagboro

The purpose of this paper is to evaluate the measures practiced by public sector organizations (PSOs) to develop their capability and strength toward attaining the skills…

Abstract

Purpose

The purpose of this paper is to evaluate the measures practiced by public sector organizations (PSOs) to develop their capability and strength toward attaining the skills requirements for public-private partnership (PPP) program.

Design/methodology/approach

The study adopted a quantitative approach based on primary data obtained via questionnaire survey. The literature review provided the basis for identification of variables that were evaluated through structured questionnaire survey. The respondents were professionals in PSOs that have procured PPP projects in Southwestern Nigeria. These were sampled through the drawing of referral chain, involving respondents-driven sampling technique. The data collected were analyses using descriptive and inferential statistics.

Findings

The capability development measures of PSOs in PPP projects delivery clustered around five components: conventional practices, training and development, organizational practices, human capital enhancement and government-aided intervention. These five components of capability development measures are expected to be focused with adequate and equal interest and embraced by PSOs in countries with evolving PPP markets.

Social implications

The study provides implications for domestic human capital strengthening for enhanced infrastructure delivery in countries with evolving PPP markets.

Originality/value

This study contributes to the existing literature on capabilities improvement on PPP projects. This was achieved by providing empirical evidences with respect to human resource boost for enhanced performance of public sector organizations in their partnership with their private sector counterparts for PPP project success.

Details

Journal of Public Procurement, vol. 20 no. 2
Type: Research Article
ISSN: 1535-0118

Keywords

Article
Publication date: 6 February 2017

Akintayo Opawole and Godwin Onajite Jagboro

Notwithstanding the remarkable market potential of the Nigerian economy for private investment, the current sociopolitical characteristics had necessitated a careful…

Abstract

Purpose

Notwithstanding the remarkable market potential of the Nigerian economy for private investment, the current sociopolitical characteristics had necessitated a careful assessment to inform decisions in long-term investments. The purpose of this paper is therefore to evaluate the success factors that have a specific influence on private party’s performance in concession contracts in Nigeria.

Design/methodology/approach

Respondents involved in the study were participants in concession-based contracts in Southwestern Nigeria that included architects, estate surveyors, quantity surveyors, engineers and builders, accountants/bankers/economists and lawyers. These were selected using random and respondent-driven sampling (RDS) approaches. The research instrument adopted was a questionnaire that enlisted questions which were structured to ensure that the respondents have appropriate experience in concession-based projects and hold appropriate positions as decision-makers so as to give credence to collected data. The highest significant factors were identified through the relative significance index (RSI). By exploring factor analysis, the factors were condensed for discussion under appropriate component headings. The value of Kaiser–Meyer–Olkin (KMO, 0.755) measure of sampling adequacy tests carried out showed that the data collected were adequate for the factor analysis, and the Bartlett’s test of sphericity (χ2 = 1,799.339; df = 630; p < 0.001) was highly significant.

Findings

Factors influencing private party performance clustered under eight components, namely, technical, market maturity, political, legal, finance, procurement, incentive and regulation. However, component items including level of understanding of public–private alliance transactions, stability of exchange rate and provisions for reversion of policies were found to be highly significant. On the other hand, status of domestication and implementation of international laws/codes, predictability in legal regime and enforcement and extent of jurisdictional definition of land usage were least significant.

Originality/value

Findings would guide private investors in the preparation of robust investment packages that reduce risks and seemingly unavoidable opportunistic tendencies associated with public–private partnership projects in developing economies.

Details

Journal of Engineering, Design and Technology, vol. 15 no. 1
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 27 July 2018

Oluwaseyi Olalekan Alao, Godwin Onajite Jagboro and Akintayo Opawole

This paper aims to determine the effect of the period of abandonment on the final cost and duration of resuscitated tertiary educational building projects as a basis for…

Abstract

Purpose

This paper aims to determine the effect of the period of abandonment on the final cost and duration of resuscitated tertiary educational building projects as a basis for enhancing the performance metrics of the projects and improving the availability of facilities in tertiary institutions in Nigeria.

Design/methodology/approach

A structured questionnaire was administered on 47 professionals involved in the physical development of construction projects in Osun State public tertiary educational institutions to provide primary data for the study. Secondary data relating to initial and final costs, initial and final completion dates, dates of abandonment, period of abandonment, date of re-award, etc. were obtained from selected resuscitated projects. Data were analyzed using relative significance index and regression analysis.

Findings

The most significant effects of project abandonment were found to be disappointment of populace and over-stretching of existing facilities. The study showed a directly proportional and an exponential effect of period of abandonment on percentage cost overrun of resuscitated projects, which were represented by yc = −329.755 + 19.545x and yc = 6.1662e0.0506x, respectively. A linear relationship between period of abandonment and percentage time overrun was represented by yt = 0.467 + 0.816x.

Research limitations/implications

The fact that the regression equations could not be validated because of paucity of data was identified as a limitation of this study.

Practical implications

This study adds to the body of knowledge on abandonment of building projects from a quantitative perspective. Findings have implications for guiding long-term infrastructure development plans in public tertiary educational institutions.

Originality/value

Maximum threshold at which abandoned projects may be resuscitated at an economic cost was established as 16 months. Findings further suggest that the economy of new construction would outweigh resuscitation of abandoned projects beyond this period.

Details

Journal of Financial Management of Property and Construction, vol. 23 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 10 April 2017

Oluwaseyi Olalekan Alao and Godwin Onajite Jagboro

Abandonment of construction projects is still a burning issue in Nigeria. Beside the poor financing of educational infrastructure, abandonment of construction projects…

3357

Abstract

Purpose

Abandonment of construction projects is still a burning issue in Nigeria. Beside the poor financing of educational infrastructure, abandonment of construction projects remains a significant contributor to the inadequacy of facilities in Nigerian public tertiary educational institutions. The purpose of this paper is, therefore, to assess the causes of abandoned projects specific to public institutions of tertiary education in Nigeria, with a view to providing empirical data that are generalizable to enhancing successful delivery of teaching and research facilities.

Design/methodology/approach

Primary data used for the study were obtained through questionnaires administered to 47 professionals comprising 8 architects, 12 mechanical and electrical engineers, 15 civil/structural engineers, 4 builders and 8 quantity surveyors who were involved in physical development of construction projects in public tertiary educational institutions in Osun State. The data were analyzed using mean analysis, factor analysis and the Kruskal-Wallis (K-W) test.

Findings

The factors most significant to abandonment of tertiary educational institutional projects were delayed payments, fund mismanagement, inadequate budgetary allocation, inadequacy of finance, inflation and bankruptcy of the contractor. Findings also showed that not all factors causing abandonment were significant to tertiary institutional projects. The significant factors clustered under stakeholders’ response capacity, poor financial management, inadequate planning and monitoring, and unexpected occurrences. The K-W test showed significant differences among the categories of tertiary institutions on the ranking of the most significant causes of abandoned projects.

Research limitations/implications

The study was limited to public tertiary educational institutions in Osun State. Further studies could focus on public health institution projects and private tertiary educational projects to improve the body of knowledge on the subject of causative factors for project abandonment.

Practical implications

The study provided implications for effective contract management of public tertiary educational institutional projects, which is a significant step to improving the available teaching and research facilities in Nigerian tertiary institutions.

Originality/value

The study provides implications for effective contract management systems of projects for public tertiary educational institutions, thereby improving the available teaching and research facilities.

Details

International Journal of Building Pathology and Adaptation, vol. 35 no. 1
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 14 March 2016

Akintayo Opawole and Godwin Onajite Jagboro

Demand–supply matrices with adverse consequences has occasioned government response to concession initiatives in infrastructure in Nigeria. However, concession-based…

Abstract

Purpose

Demand–supply matrices with adverse consequences has occasioned government response to concession initiatives in infrastructure in Nigeria. However, concession-based projects have been trailed by administrative and legal controversies. While this scenario has negatively impacted the acceptability of a concession contract, there is, nevertheless, a paucity of research effort aimed at developing a sustainable framework. The purpose of this paper is to develop a conceptual framework for the evaluation and allocation of obligations of parties, thereby enhancing the synergy and cooperation between the public and private sector organization.

Design/methodology/approach

Data were obtained through a questionnaire administered to professionals in concession-based contracts in southwestern Nigeria, which included architects, estate surveyors, quantity surveyors, engineers and builders, accountants/bankers/economists and lawyers. The respondents were selected using random and respondent driven sampling approaches. The questions were structured to ensure that the respondents have appropriate experience in concession-based projects and hold appropriate positions as decision-makers so as to give credence to the collected data.

Findings

The study identified 47 contractual obligations in the specific context of developing countries. Based on “half-adjusting principle”, 13 of the obligations notably cost of land acquisition and cost of social disturbances were allocated to the public party; 18 of the obligations notably project design and cost of feasibility study were allocated to the private party; and 16 of the obligations including preparation of terms of a contract and relocation of third party facilities were shared by the parties.

Originality/value

The framework benchmarked the categorization of public and private parties’ obligations in concession-based public–private partnership (PPP) contracts. The study has the implication for the evaluation and allocation of obligations of parties, which could mitigate the risk of failure of PPP projects in relation to the specific context of developing countries.

Details

Journal of Place Management and Development, vol. 9 no. 1
Type: Research Article
ISSN: 1753-8335

Keywords

Article
Publication date: 1 October 2018

Joshua Oluwasuji Dada and Godwin Onajite Jagboro

The purpose of this paper is to develop a conceptual framework for assessing quantity surveyors’ competence level.

Abstract

Purpose

The purpose of this paper is to develop a conceptual framework for assessing quantity surveyors’ competence level.

Design/methodology/approach

Delphi survey research approach was adopted for the study. This involved a survey of panel of experts, constituted among registered quantity surveyors in Nigeria, and obtaining from them a consensus opinion on the issues relating to the assessment of quantity surveyors’ competence. In total, 27 out of the shortlisted 38 member panel provided valid results in the two rounds of Delphi survey conducted. A conceptual framework linking educational training, professional capability and professional development is developed.

Findings

The findings establish the ratings of the identified three competence criteria. On a scale of 0–100 percent rating, educational training was scored 34.04 percent, professional capability 45.22 percent and professional development 20.74 percent.

Originality/value

The proposed framework provide a conceptual approach in assessing quantity surveyor overall competence. Specifically, it demonstrates the significance of the identified three competence criteria groupings in the training, practice and development of quantity surveying profession. It could therefore serves as foundation of on how quantity surveyors are trained, developed and evaluated.

Details

Benchmarking: An International Journal, vol. 25 no. 7
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 11 July 2016

Akintayo Opawole and Godwin Onajite Jagboro

Little success had been recorded on concession-based public private partnership contracts in Nigeria for reasons attributable in part to poor assessment of the…

Abstract

Purpose

Little success had been recorded on concession-based public private partnership contracts in Nigeria for reasons attributable in part to poor assessment of the socio-cultural and economic factors that contribute to the parties’ costs while preparing contract packages. The purpose of this paper is to assess the factors which significantly influence the private party’s obligations and costs in a concession-based contract thereby enhancing the robust assessment of contract packages when bidding by private investors.

Design/methodology/approach

The assessment was based on primary data obtained through questionnaire survey. Structured questionnaire was administered on professionals comprising architects, estate surveyors, quantity surveyors, engineers and builders, accountants/bankers/economists and lawyers who had been involved in concession-based contracts in the Southwestern Nigeria, selected using respondent-driven sampling approach. Factors evaluated were those identified through in-depth literature review and brainstorming of those pertinent to concession transaction in Nigeria. Data collected were analysed using descriptive statistics including mean, relative significance index, impact weighting and factor analysis.

Findings

Significant factors that influence private party’s cost were found to be political interference, delay in land acquisition, variation to the contract and non-availability of supportive infrastructure.

Originality/value

Findings provided information for structuring concession contract for effective management of country-specific characteristics in concession contract. The understanding of the factors that affect private party’s obligations and costs would guide effective assessment of concession contract in developing economies by foreign investors. Moreover, the study provided implication for the understating of country-specific factors affecting concession contract in Nigeria which would contribute to robust assessment of contract packages when bidding by private investors.

Details

Structural Survey, vol. 34 no. 3
Type: Research Article
ISSN: 0263-080X

Keywords

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