RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA

Retention bond guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor. This research work assesses the effects of retention bond on cons...

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Main Authors: Ayodeji Oke, Peter Ogunmola
Format: Article
Language:English
Published: UJ Press 2014-05-01
Series:Journal of Construction Project Management and Innovation
Subjects:
Online Access:https://journals.uj.ac.za/index.php/JCPMI/article/view/57
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author Ayodeji Oke
Peter Ogunmola
author_facet Ayodeji Oke
Peter Ogunmola
author_sort Ayodeji Oke
collection DOAJ
description Retention bond guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor. This research work assesses the effects of retention bond on construction project performance in Nigerian construction industry. Cost data were collected through the distribution of sixty (60) questionnaires of which fifty-seven administered questionnaires were retrieved. Data were analysed using correlation and regression methods of analysis. The findings from the study indicated that there is a significant relationship between retention bond and construction project performance in terms of cost and time. The study recommends that professional bodies should encourage the use of retention bond in the Nigerian construction industry by sensitizing professionals of its importance which is to enable effective delivery of projects within its initial cost and time. Also, contractors should encourage their clients to always include sum to cover up for retention bond in their contract sum.
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series Journal of Construction Project Management and Innovation
spelling doaj-art-b17851437b11444d98c553681281bd1c2025-01-08T06:14:27ZengUJ PressJournal of Construction Project Management and Innovation2223-78522959-96522014-05-014110.36615/jcpmi.v4i1.57RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIAAyodeji Oke0Peter Ogunmola1Department of Quantity Surveying, Federal University of Technology AkureDepartment of Quantity Surveying, Federal University of Technology Akure Retention bond guarantees that the contractor will carry out all necessary work to correct structural and/or other defects discovered immediately after completion of the contract, even if full payment has been made to the contractor. This research work assesses the effects of retention bond on construction project performance in Nigerian construction industry. Cost data were collected through the distribution of sixty (60) questionnaires of which fifty-seven administered questionnaires were retrieved. Data were analysed using correlation and regression methods of analysis. The findings from the study indicated that there is a significant relationship between retention bond and construction project performance in terms of cost and time. The study recommends that professional bodies should encourage the use of retention bond in the Nigerian construction industry by sensitizing professionals of its importance which is to enable effective delivery of projects within its initial cost and time. Also, contractors should encourage their clients to always include sum to cover up for retention bond in their contract sum. https://journals.uj.ac.za/index.php/JCPMI/article/view/57bond; construction project; Nigeria; performance; retention bond
spellingShingle Ayodeji Oke
Peter Ogunmola
RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
Journal of Construction Project Management and Innovation
bond; construction project; Nigeria; performance; retention bond
title RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
title_full RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
title_fullStr RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
title_full_unstemmed RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
title_short RETENTION BOND AND PERFORMANCE OF CONSTRUCTION PROJECTS IN NIGERIA
title_sort retention bond and performance of construction projects in nigeria
topic bond; construction project; Nigeria; performance; retention bond
url https://journals.uj.ac.za/index.php/JCPMI/article/view/57
work_keys_str_mv AT ayodejioke retentionbondandperformanceofconstructionprojectsinnigeria
AT peterogunmola retentionbondandperformanceofconstructionprojectsinnigeria