1.1 Introduction
Procurement is a central function in project management, involving the acquisition of goods, services, and resources necessary for the successful execution of a project. According to Kerzner (2017), effective procurement management ensures that materials are available at the right time, in the correct quantity, and at the required quality, which directly influences project outcomes. In the construction industry, timely procurement is especially critical because delays in obtaining materials or services can cascade into delays in project schedules, increased costs, and compromised quality of deliverables.
Julius Berger Nigeria Plc, as a leading construction firm, engages in large-scale and complex infrastructure projects across Nigeria. Reported challenges within the company, including approval bottlenecks, coordination gaps, and supplier performance issues, suggest that procurement delays are a tangible problem affecting project delivery. According to Thai (2001), both public and private construction projects face procurement-related obstacles that impede efficiency, which aligns with experiences reported within large Nigerian construction firms.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of the Study
Historically, procurement is closely tied to the evolution of project management and organizational development. Procurement, in its modern sense, emerged as a formalized process during the industrial revolution when the demand for large-scale production and organized supply chains required systematic acquisition of goods and services (Thai, 2001). Over time, procurement evolved from simple purchasing practices into a strategic function that is integral to the success of projects across industries.
Procurement is a critical aspect of project management that involves acquiring goods, services, and works necessary for the successful completion of a project. According to Kerzner (2017), effective procurement ensures that resources are available at the right time, in the right quantity, and at the desired quality, which directly influences project outcomes. In large-scale construction projects, such as those undertaken by Julius Berger Nigeria Plc, delays in procurement have been observed to affect project timelines, increase costs, and compromise the quality of deliverables.
Assaf and Al-Hejji (2006) reported that procurement delays are a major cause of schedule overruns in construction projects, often resulting from bureaucratic procedures, inadequate planning, and poor communication among project stakeholders. Similarly, Aibinu and Jagboro (2002) asserted that the failure to accurately forecast material requirements and delays in supplier delivery often contribute to project inefficiency and cost escalation. On the other hand, Ghaffar, Aziz, and Nasir (2013) stated that insufficient monitoring of procurement processes and lack of stakeholder coordination exacerbate delays and negatively affect project performance.
Mahamid (2013) affirmed that external factors such as regulatory compliance, market fluctuations, and unreliable suppliers significantly impact procurement timelines, thereby affecting the overall success of projects. Elazim, Emam, and Saleh (2017) contend that delayed procurement often forces project managers to compromise on quality or expedite certain activities, which may result in rework and additional expenses. These findings indicate that both internal organizational inefficiencies and external environmental factors contribute to procurement challenges, making it a crucial area of study for construction firms operating in Nigeria.
Akinleye and Adeyemi (2017) asserted that poor infrastructure, insufficient berthing space, and limited cargo handling equipment are major contributors to congestion at Nigerian ports. On the other hand, operational inefficiencies such as inadequate coordination among port authorities, customs delays, and inconsistent documentation procedures also exacerbate congestion, creating bottlenecks that hinder the smooth movement of vessels and goods. Researchers have reported that these issues collectively reduce shipping efficiency, increase waiting time for vessels, and elevate costs for importers, exporters, and shipping companies (Olufemi & Ojo, 2019).
Julius Berger Nigeria Plc is a leading construction company in Nigeria, engaged in complex and large-scale infrastructure projects. Reported challenges in procurement processes within the company, including approval bottlenecks, coordination gaps, and supplier management issues, suggest that procurement delays have tangible effects on project delivery outcomes. According to Thai (2001), public and private construction projects often face procurement-related obstacles that impede efficiency, and similar patterns have been observed within large Nigerian construction firms. This study is set against the backdrop of understanding how procurement delays specifically affect project delivery at Julius Berger Nigeria Plc.
1.3 Statement of Problems
Investigation revealed that port congestion is a critical challenge affecting the efficiency of shipping operations in Nigeria. According to Notteboom and Rodrigue (2005), port congestion is defined as a situation where vessels experience significant delays at berth or anchorage due to inadequate handling capacities, or delays in cargo clearance. Port congestion is reported to result in increased turnaround times for vessels, elevated operational costs, and reduced reliability of shipping schedules (UNCTAD, 2018).
Furthermore, the impact of port congestion is particularly severe in major Nigerian ports such as Apapa and Tin Can Island, where high traffic volumes, coupled with insufficient infrastructure and operational challenges, lead to prolonged vessel berthing delays. According to Oke et al. (2020), such congestion disrupts supply chains, affects timely delivery of goods, and negatively influences trade efficiency.
On the other hand, congestion at ports also increases fuel consumption and demurrage charges, which ultimately raises the cost of doing business for shipping companies and traders operating within the Nigerian maritime sector. It is against this backdrop that this study seeks to investigate the impact of port congestion on shipping efficiency.
1.4 Aim and Objectives of the Study
The aim of this research is to examine procurement delays and their impact on project delivery in selected projects in Nigeria. The specific objectives of this study include:
- To identify the existing system issues that contribute to procurement delays in project execution in the study area.
- To assess the impact of procurement delays on project delivery timelines, costs, and quality in the area under study.
- To evaluate the role of stakeholders in mitigating procurement delays.
- To propose strategies to enhance procurement efficiency and ensure timely project completion in the area under review.
1.5 Research Questions
Based on the stated objectives, the study will address the following research questions:
- What are the existing system issues that contribute to procurement delays in project execution?
- How do procurement delays affect project timelines, costs, and quality?
- What role do stakeholders play in mitigating procurement delays?
- What strategies can be implemented to improve procurement efficiency and project delivery?
1.6 Significance of the Study
It is believed that at the completion of the study, the findings will serve as a guide for policymakers and stakeholders in formulating regulations and procedures that will minimize bureaucratic hurdles and improve coordination across project teams.
Furthermore, organizations will improve their procurement policies and processes, which will enhance overall project performance. In addition, policymakers will be informed about systemic issues affecting procurement and will develop regulations that will streamline procedures.
Lastly, researchers and academicians will gain empirical evidence that will inform future studies on project management and procurement efficiency.
1.7 Research Hypotheses
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
- H0: Procurement delays do not significantly affect project delivery in terms of timelines, costs, and quality.
- H1: Procurement delays significantly affect project delivery in terms of timelines, costs, and quality.
1.8 Scope of the Study
The scope of this study focuses on procurement delays and their impact on project delivery within Julius Berger Nigeria Plc, one of the leading construction companies in Nigeria. The research is geographically limited to projects executed by the company in Lagos State, which serves as a major hub for infrastructure development and construction activities in Nigeria.
1.9 Limitations of the Study
The study was limited by several factors that affected the research process and data collection.
- Access to detailed and proprietary company records was restricted, which was a significant constraint in obtaining comprehensive data on procurement processes and project delivery outcomes.
- Insufficient data on certain projects was reported, and some records were incomplete, which was a challenge in achieving a fully representative analysis.
- Additionally, delays from respondents in completing questionnaires and providing responses was observed, which extended the time needed to gather sufficient information.
- Financial constraints was also a limiting factor, restricting the resources available for extensive fieldwork, while time limitations was significant because the research needed to be completed within the academic schedule.
1.10 Definition of Terms
Procurement:
Procurement is defined as the process of acquiring goods, services, or works from external sources through a structured process to meet project objectives (Thai, 2001). It is a strategic function in project management that affects timelines, costs, and quality.
Procurement Delay:
Procurement delay refers to any interruption or postponement in the planned acquisition of goods, services, or materials required for project execution (Assaf & Al-Hejji, 2006). Such delays are often caused by bureaucratic inefficiencies, poor planning, or supplier issues.
Project Delivery:
Project delivery is the completion of a project according to its defined scope, schedule, and budget, ensuring quality standards are met (Kerzner, 2017). Procurement delays directly affect this outcome by causing cost overruns and extended timelines.
…
