CONTRACTORS’ PREQUALIFICATION CRITERIA AND CONSTRUCTION PROJECT COST PERFORMANCE

Purpose: Project failure in Nigeria could be linked to poor procedures for selection of contractors, among other causes. This study aimed at examining the impact of Contractor Prequalification Criteria (CPC) on cost performance of construction projects with a view to developing a model for predicting cost performance from prequalification criteria Design/methodology/approach: A well-structured questionnaire was used to gather data from the construction professionals who were registered members of their professional institutions, drawn from contracting, consulting and public client organisations in Ondo State, Nigeria. A sample size of 171 was calculated from the sample frame of 350 using Digeebird statistics sample size calculator at 10% confidence interval and 95% confidence level. Stratified random sampling technique was adopted for the administration of the research instrument. The data were analysed using frequency table and percentage, factor analysis, relative important index (RII), and regression model. Findings: The results indicate a strong relationship between contractors’ prequalification criteria and project cost performance as validated with F value significant at 0.000 Research limitations/implications: It is suggested that more emphasis should be placed on health and safety practices, management capability, organisation reputation, and work experience and capability as they have shown to have impact on cost performance. Originality/value: The study develops a useful model for predicting cost performance from prequalification criteria by construction practitioners and clients.