SUCCESS FACTORS IN THE IMPLEMENTATION

OF E-TENDERING
IN THE
CONSTRUCTION INDUSTRY
IN NIGERIA

BY GROUP 2
 ABSTRACT

The Nigerian construction industry is gradually embracing electronic tendering (e-tendering) to

streamline procurement processes. Factors such as human resources, technological and
management capabilities, and organizational readiness are crucial for successful e-tendering
implementation. This research involved stakeholders, including consultants, contractors, and
project owners, to identify and rank the factors influencing e-tendering success. The study
employed a robust methodology, including literature reviews and stakeholder surveys, to provide
practical insights for policymakers and industry practitioners in Nigeria's construction industry.
 INTRODUCTION

This study was aimed at evaluating the critical success factors (CSFs) for e-Tendering adoption in
the Nigerian construction industry. The research sought to examine the use of e-Tendering in the
Nigerian building industry, the different kinds of e-procurement tools and technologies used, and
the extent of its adoption. The study also highlighted the challenges and associated risks of e-
tendering in the Nigerian construction industry, emphasizing the need for a benchmark study to
underpin the adoption process and measure up to technologically advanced nations.
 STATEMENT OF RESEARCH PROBLEM

This research came from need to conduct a study to assess the challenges and benefits of e-
tendering in the Nigerian construction industry and to examine the factors affecting its
implementation, in order to contribute to policy debates and fill the existing knowledge gap in this
area of technological innovation in the construction sector.
 AIMS AND OBJECTIVES
Aims
The research is to establish the success
factors in the implementation of e-
tendering in the construction industry in
Nigeria with a view to improve the
implementation process.
Objectives
i. Assess the challenges faced by contractors in adopting e-
tendering for construction projects in Nigeria
ii. Determine the effects of e-tendering on contractors in Nigeria
iii. Examine the level of knowledge about e-tendering among
Nigerian construction industry professionals
iv. Evaluate the state of the art of e-tendering in the Nigerian
construction industry including the availability of necessary
facilities and the proficiency of industry professionals in utilizing e-
tendering
v. Identify the critical success factors (CSFs) for the adoption of e-
tendering in the Nigerian construction industry
AIMS AND OBJECTIVES

Objectives
i. Assess the challenges faced by contractors in adopting e-
tendering for construction projects in Nigeria
ii. Determine the effects of e-tendering on contractors in Nigeria
iii. Examine the level of knowledge about e-tendering among
Nigerian construction industry professionals
iv. Evaluate the state of the art of e-tendering in the Nigerian
construction industry including the availability of necessary
facilities and the proficiency of industry professionals in utilizing
e-tendering
v. Identify the critical success factors (CSFs) for the adoption of
e-tendering in the Nigerian construction industry
 SIGNIFICANCE OF STUDY

This study will help identify the success factors for the implementation of e-tendering in the
Nigerian construction industry, which will inform policy decisions aimed at improving tendering
processes in the sector.
 LITERATURE REVIEW

According to (Croom and Johnston, 2003), e-tendering systems are simply the application, tools, and
technologies used to carry out tendering activities via the Internet. The adoption of e-tendering
systems in the construction industry represents a significant shift towards digital procurement
processes, promising increased efficiency and transparency.
When the statistics of use of Nigeria was compared with other developed countries in (Aduwo et al,
2016), they found out that the major barrier in the use of e tendering systems was the cost of
providing the physical infrastructure and skill to run it.
(Laryea and Ibem, 2015) also showed that another major inhibitor to the full utilization of e
tendering systems in the public sector is mainly attributed to policies, reliability, cost and impact on
small firms which may not have the full capabilities to utilize these processes.
 LITERATURE REVIEW

In a study done by (Donny M. Maitung et al 2022) on "Important factors influencing the successful
implementation of electronic tenders based on the perceptions of consultants, contractors and project
owners in Palu" emphasizes the importance of factors such as system reliability, security, and ease of
use in the successful implementation of E tendering systems.
Furthermore, a study published in the LAUTECH Journal of Civil and Environmental Studies,
(Galadima, H. B. and Waziri, A. Y. 2022) underscores the importance of aligning technology,
organization, and environmental variables for the successful adoption of e-tendering in the Nigerian
construction industry, recommending construction managers consider top management support, user
training, and system compatibility among other factors to ensure the successful adoption of e-
tendering systems.
 LITERATURE REVIEW

The overall summary of the Literature review shows that the success of the implementation of e-
tendering in Nigeria is dependent on multiple factors ranging from government support to
technological infrastructure of the country. It highlights the critical success factors and barriers to the
implementation of e tendering in the construction industry in Nigeria. The findings suggest that top
management support, user training, security and ease of use, user experience and system reliability
are critical factors that play a major role in the successful adoption of E-tendering systems in the
Nigerian construction industry.
By addressing these key success factors, construction consultants and stakeholders, policy makers and
academics can effectively contribute to the development of a thriving e-tendering system which
fosters transparency, accountability and efficiency in the Nigerian construction sector.
 RESEARCH METHODOLOGY
The descriptive survey research design was adopted for the study. Descriptive survey
research design involves observing and describing the behavior of subjects without
influencing it in any way (Madumere, 2012). This is a type of research design that describes a
population, situation or phenomenon that is being studied.
Simple random sampling technique was used in the selection of the population and the targeted population
comprises quantity surveyors, contractors, procurement managers, etc (construction professionals).
 RESEARCH METHODOLOGY

The data collection instrument used was a self-developed questionnaire

titled, “Questionnaire on Success Factors in the Implementation of E-
tendering Process in the Construction Industry in Nigeria”.
26 questionnaires were distributed and 19 were returned and used for
the analysis. It gives a response rate of 73%.
Table 1: Demographic Data

Demographic Data Frequency Percentage %

Gender
Male 13 68.4
Female 6 31.6
Total 19
Role in Construction
Industry
Contractor 1 5.3
Project Manager 6 31.6
Quantity Surveyor 10 52.6
Procurement Officer 1 5.3
Site Supervisor 1 5.3
Total 19 100
Table 1: Demographic Data

Demographic Data Frequency Percentage %

Years of Experience
Less than 1 year 3 15.8
1-5 years 6 31.6
6-10 years 5 26.3
11-15 years 1 5.3
More than 15 years 4 21.1
Total 19 100
 TABLE 1 ANALYSIS

From Table 1, it is shown that out of 19 respondents, 13 (68.4%) were males and 6 (31.6%) were females.
This means that both genders participated but there were more males than females. Table 1 also shows that
1 (5.3%) of the respondents was a contractor, 6 (31.6%) were project managers, 10 (52.6%) were quantity
surveyors, 1 (5.3%) was a procurement officer, and 1 (5.3%) was a site supervisor. It can be concluded that
a good number of construction professionals are represented in this study. However, the majority of the
respondents are quantity surveyors.
In addition, table 1 shows that 3 (15.8%) of the respondents have less than a year of experience as
construction industry professionals, 6 (31.6%) have 1 to 5 years of experience, 5 (26.3%) have 6 to 10 years
of experience, 1 (5.3%) has 11 to 15 years of experience. In comparison, 4 (21.1%) have more than 15 years
of experience. It can be concluded that data were collected from respondents with enough work experience.
 Technological Proficiency Frequency Percentage %
and Digital Literacy
Table 2:
Technological Familiar with Computer
Usage
Proficiency and
Not Familiar 0 0
Digital Literacy
Somewhat Familiar 1 5.3
Moderately Familiar 4 21.1
Very Familiar 12 63.2
Extremely Familiar 2 10.5
Total 19 100
Ability to evaluate and
utilize information from
online sources
Not Skilled 0 0
Somewhat Skilled 0 0
Moderately Skilled 6 31.6
Very Skilled 11 57.9
Extremely Skilled 2 10.5
Total 19 100
 TABLE 2 ANALYSIS

According to Table 2, the findings regarding respondents' familiarity with computer usage and their ability to evaluate and utilize
information from online sources are as follows:
1. Familiarity with computer usage:
- 0% of the respondents are not familiar with computer usage.
- 5.3% are somewhat familiar, 21.1% are moderately familiar, 63.2% are very familiar, and 10.5% are extremely familiar with
computer usage.
2. Skill in evaluating and utilizing information from online sources:
- 0% of the respondents are not skilled in evaluating and utilizing information from online sources.
- 31.6% are moderately skilled, 57.9% are very skilled, and 10.5% are extremely skilled in this area.
In conclusion, a good number of the respondents are familiar with computer usage and possess the necessary skills to evaluate and
utilize information from online sources.
 Respondent’s awareness of E- Frequency Percentage %
Table 3: tendering Process in the
Respondent’s Construction Industry
Awareness of the Familiarity with the concept of
E-tendering
E-tendering
Not Familiar 0 0
Process in the
Construction Somewhat Familiar 7 36.8

Industry Moderately Familiar 5 26.3

Very Familiar 6 31.6

Extremely Familiar 1 5.3

Total 19 100

Awareness of challenges and

barriers associated with E-
tendering adoption in the
Nigerian construction industry
Not Aware 0 0

Somewhat Aware 3 15.8

Moderately Aware 8 42.1

Very Aware 8 42.1

Extremely Aware 0 0

Total 19 100
Table 3:
Respondent’s
Awareness of the
E-tendering
Process in the
Respondent’s awareness of E- Frequency Percentage %
Construction tendering Process in the
Industry Cont’d Construction Industry
Understanding of the benefits of
implementing E-tendering
processes in the construction
industry
Do not understand at all 2 10.5

Somewhat understand 3 15.8

Moderately understand 6 31.6

Almost fully understand 4 21.1

Fully understand 4 21.1

Total 19 100
 Familiarity with the
Table 3: technological and infrastructure
Respondent’s requirements for successful E-
tendering implementation
Awareness of the
Not Familiar 5 26.3
E-tendering
Process in the Somewhat Familiar 3 15.8

Construction Moderately Familiar 5 26.3

Industry Cont’d Very Familiar 5 26.3

Extremely Familiar 1 5.3

Total 19 100
 TABLE 3 ANALYSIS

Table 3 presents the findings regarding respondents' familiarity with the

concept of e-tendering, awareness of associated challenges and barriers,
understanding of the benefits of implementing e-tendering processes, and
familiarity with the technological and infrastructure requirements for
successful e-tendering implementation. Here are the key takeaways from
the table:
 TABLE 3 ANALYSIS

1. Familiarity with e-tendering:

- 0% of the respondents are not familiar with the concept of e-tendering.
- 36.8% are somewhat familiar, 26.3% are moderately familiar, 31.6%
are very familiar, and 5.3% are extremely familiar with e-tender.
Awareness of challenges and barriers:
- 0% of the respondents are aware of the associated challenges and
barriers.
- 15.8% are somewhat aware.
 TABLE 3 ANALYSIS

2. Awareness of challenges and barriers:

- 0% of the respondents are aware of the associated challenges and
barriers.
- 15.8% are somewhat aware, 42.1% are moderately aware, and 42.1%
are very aware of the challenges and barriers associated with e-tendering.
 TABLE 3 ANALYSIS

3. Understanding of benefits:
- 10.5% of the respondents do not understand the benefits of
implementing e-tendering processes.
- 15.8% somewhat understand, 36.1% moderately understand, 21.1%
almost fully understand, and 21.1% fully understand the benefits of e-
tendering.
 TABLE 3 ANALYSIS

4. Familiarity with technological and infrastructure requirements:

- 26.3% of the respondents are not familiar with the technological
and infrastructure requirements for successful e-tendering
implementation.
- 15.8% are somewhat familiar, 26.3% are moderately familiar,
26.3% are very familiar, and 5.3% are extremely familiar with the
requirements.
In conclusion, a significant number of respondents are familiar with
the concept of e-tendering, aware of the associated challenges and
barriers, understand the benefits of implementing e-tendering
 Success factors in the Relative importance index Rank
Table 4: Level of implementation of the e- (RII)
importance of success tendering process in the
construction industry
factors in the
implementation of the Ease of use of e-tendering systems 0.842 1

E-tendering process in
Availability of technological 0.832 2
the construction resources
industry Security of the e-tendering process 0.832 2
in the construction industry

Compliance with regulations and 0.821 4

standards

Cost-effectiveness of e-tendering 0.821 4

processes

Understanding of the benefits of e- 0.811 6

tendering in the construction
industry

Deployment of innovative 0.811 6

information and communication
technology (ICT) facilities within
construction organizations

Top management support 0.800 8

Addressing the challenges and 0.779 9
barriers associated with e-tendering
adoption in the Nigerian
construction industry
Table 4: Level of importance of success factors in the implementation
of the E-tendering process in the construction industry cont’d

Success factors in the Relative importance index (RII0) Rank

implementation of the e-tendering
process in the construction
industry
Readiness of management 0.758 11
capabilities
Alignment of organizational variables 0.768 10
like availability of resources and
skilled personnel
Readiness of human resources 0.758 11
Alignment of environmental 0.705 13
variables
 TABLE 4 ANALYSIS

From Table 4, the relative importance index (RII) is calculated for each of the related factors for the successful
implementation of e-tendering in the construction industry. The highest rank is the ease of use of e-tendering
systems (RII = 0.842), followed by availability of technological resources (RII = 0.832), and security of e-
tendering processes in the construction industry (RII = 0.832). The lowest rank success factor is the alignment of
environmental variables (RII = 0.705).

The analysis shows that many factors contribute to the successful implementation of the e-tendering process in the
construction industry.
The most important success factor for the implementation of e-tendering in the construction industry in Nigeria is
the ease of use of the proposed e-tendering system. The second most important factor is the availability of
technological resources for implementation. The alignment of environmental variables is the least important factor
for the successful implementation of e-tendering systems.
 SUMMARY AND FINDINGS

Summary
The study examined factors for successful e-tendering implementation in Nigeria's
construction industry. Objectives included assessing challenges faced by
contractors, determining e-tendering effects on contractors, and examining
professionals' knowledge. 19 Nigerian construction industry professionals
participated, using a structured questionnaire. The data were analyzed using the
relative importance index (RII).
 SUMMARY AND FINDINGS

Findings
1. It was observed that a large majority of construction industry professionals are males. (table 1)
2. It was observed that most construction industry professionals are proficient in the use of computers, and
analyzing information obtained from online sources. (table 2)
3. It was observed that a good number of the construction industry professionals are familiar with the concept
of e-tendering, are aware of the barriers to the implementation of e-tendering systems, and understand the
benefits of e-tendering systems as opposed to traditional methods. (table 3)
4. Ease of use of e-tendering systems, availability of technological resources, and security of e-tendering
systems are the most important factors for successful implementation.
 CONCLUSION AND RECOMMENDATION
Conclusion
To ensure successful e-tendering implementation in the Nigerian construction industry, critical
factors such as technological readiness, legal and security considerations, management capabilities,
collaborative environments, and organizational readiness must be emphasized. Human resources,
technological capabilities, and organizational readiness are crucial. Security and legal issues are
important for e-procurement adoption. Management capabilities and collaborative environments also
play significant roles. Future research and practical efforts should prioritize addressing these critical
success factors for effective e-tendering implementation in Nigeria's construction industry.
 CONCLUSION AND RECOMMENDATION

Recommendation
1. Firms and construction companies should organize regular workshops and seminars on e-
tendering for their workers.
2. Empirically investigate the perceptions of consultants, contractors, and project owners in Nigeria
to identify the factors that influence the successful implementation of electronic tenders.
3. Validate the identified critical success factors (CSFs) through expert opinions and case studies of
successful e-tendering implementations in the Nigerian construction industry.
4. Firms and construction companies should ensure motivation by investing in e-tendering tools and
software.
 APPRECIATION
We thank everyone, most especially our lecturer; Dr (Mrs) O. M. Ajayi, for
listening to our presentation.
-Group 2 Members

Adebayo Heritage Mofetoluwa

Fabusiwa Funmilayo Comfort
Ajayi Winner Motolani
Ikpeme Akambadavid
Eyiaro Emmanuel Tunmise
Akindele Emmanuel Tosin