Construction Supply Chain Management Practice and Impact on Project Performance: Perspective From Nigerian Construction Firms

This paper investigates the awareness and extent of construction supply chain management (CSCM) practice by construction firms in Nigeria. In addition, the impact of CSCM on project cost and time performance was evaluated. Design/methodology/approach – A well structure questionnaire survey was administered on the ninety-two construction firms registered with the Bureau of Public Procurement of Oyo State in Southwestern Geopolitical Zone of Nigeria. Descriptive and inferential statistics were used to analyse the elicited data. The results show that construction firms in Nigeria are generally aware of CSCM. While the experience of small, medium and large-scale construction firms on CSCM practice differs, information acquisition and sharing (among other ten significant variables) was found to be the most important element. In determining the impact of CSCM practice on project cost, the eleven identified significant elements were used to develop a multi linear regression model equation Y = 3.654-0.053X1 – 0.036X2 – 0.041X3 - 0.065X4- 0.024X5 - 0.013 X6 - 0.021 X7- 0.021X8- 0.013 X9 - 0.035 X10 - 0.011X11. (Where Y is the cost of construction project and X1…X11 are elements of CSCM practice). In the same vein a model equation showing the impact of CSCM practice on project duration was developed as Y = 5.189-0.022X1 – 0.014X2 – 0.034X3 - 0.025X4- 0.060X5 - 0.011X6 - 0.036 X7 - 0.016X8 - 0.034 X9 - 0.014 X10 - 0.023X11. The generated model equations show an inverse relationship between cost and duration of construction projects and elements of CSCM practice. This implies that adequate utilisation of the elements of CSCM practice will lead to an appreciable reduction in project cost and time. Apart from the general impact of CSCM practice; the quantum effect of each of the elements can be evaluated from the model equations.