Analysis of Tender Evaluation Practices in the Nigerian Oil and Gas Sector: A Study of Contractors in Port Harcourt

📖 ABSTRACT/OVERVIEW

Tender evaluation in the oil and gas construction sector involves complex technical, commercial, and compliance dimensions that demand specialised quantity surveying expertise. This study analyses tender evaluation practices among contractors and operators in the oil and gas sector in Port Harcourt, Rivers State. A descriptive survey design was adopted, with 85 respondents drawn from oil and gas construction firms, NNPC subsidiaries, and international operator procurement departments. Structured questionnaires and review of selected tender evaluation reports provided the data. Analysis was conducted using descriptive statistics and content analysis. Findings reveal that most major operators maintain structured tender evaluation systems with clearly defined technical and commercial weighting criteria, while smaller indigenous contractors rely on price-dominated evaluation with minimal technical scrutiny. The study finds that quantity surveyors are underrepresented in evaluation panels for oil and gas tenders relative to engineers, reducing the rigour of commercial analysis. Lowest price selection, without adequate commercial risk assessment, contributes to contractor defaults and cost overruns. Recommendations include mandatory multi-criteria evaluation frameworks incorporating technical capacity, financial health, and past performance, and the inclusion of experienced quantity surveyors in all evaluation panels above a defined contract value. This research contributes to procurement practice knowledge in Nigeria's oil and gas construction subsector. Keywords: tender evaluation, oil and gas, Port Harcourt, procurement, quantity surveying

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