Appraising the use of labour-only procurement system for building construction in Nigeria

Abstract Labour-only procurement system is gaining fast popularity among construction clients who want to make savings by procuring materials themselves, leaving the contractor to provide only the labour needed. This study, therefore, appraised this procurement system by assessing its cost performance, its suitability, construction participant’s willingness to use it for subsequent projects and its merits and demerits. Using a survey design approach through the use of questionnaire and a pro forma, data were gathered from a total of 98 construction professionals and contractors who have been involved in the use of this procurement system. Analyses of data were done using percentage, mean item score, Mann–Whitney U test and paired samples t-test. The study revealed that this procurement system is best for procuring residential buildings and minor alteration works. Construction participants who have used this system before are willing to still use it for subsequent works, as it delivers projects within budget and discourages short-changing of specifications and standard by contractors. However, the need for the time commitment and reduction in contractor’s profit are its major disadvantages. For its cost performance, an overall cost saving of about 2% was discovered for the assessed 32 projects. The findings of this study will be beneficial to various interest groups such as clients and estate developers in selecting the right procurement option to use.