Track: Construction Management

Abstract

Various problems interconnected with traditional procurement methods have generated more pressure to the stakeholders and end user in the construction sector to seek for new and latest operational procurement methods. Project alliance is one of the acceptable methods of procurement, this is an incentive based relationship contracts where parties agree to work together as one integrated team in a relationship. So therefore, this study aimed to quantitatively assess the benefits of project alliance among contractors in Nigerian construction industry. This study is a survey research that used questionnaires to gathered information from selected contractors. Mean Item Score (MIS) and Standard Deviation (SD) were used in analyzing data retrieved from the respondents. Results indicated that achieving synergy and competitive advantage, risk- sharing, ease entry of new environment, reduction in the threat of competition among contractors were the top benefits of a successful project alliance among construction contractors in Nigeria. The study therefore recommended that contractors in the construction industry need to be well enlightened through conferences, seminars and workshops on how to fully embrace project alliance within and outside the industry, strong contractual mechanism/legal backing should be made when entering into project alliance, the Nigerian government should develop policies that will encourage the formation of project alliances by given one main project to three or more construction firms which are ready to form an alliance. Recommendations from the study can also be applicable to other developing countries with similar way, method and style of project execution as Nigeria.