Public Contract Execution : A Critical Review of Performance Hindering Factors Among Small and Medium Enterprises (SMEs) In Lagos State, Nigeria

Buying from SMEs has been advanced as a positive measure towards ensuring the development and growths of SMEs. However, SMEs face myriads of challenges when it comes to contract performance after award has been made. The present study investigates and ranks factors perceived to have hindered the execution of public contract awarded to small and medium enterprises in Lagos State, Nigeria. Data were collected through structured questionnaire from two hundred and sixty-seven (267) SME suppliers who were randomly selected whilst the data collected was analyzed using ranking method. The findings revealed three most significant performance hindering factors among SMEs in public contract execution as: late and delay payment, short delivery duration and fluctuation in cost of items. The study concluded that SMEs operators could not deliver and perform optimally in public contracts because they are hindered by some factors which sometimes are caused by the clients, contractors or factors beyond the control of parties to the contract. In order to ensure effective and efficient public contract execution among SMEs suppliers the study recommends that: prompt fund mobilization must be ensured, contract duration must be reasonable and adequate, and contract renegotiation must be possible to accommodate unforeseeable circumstances that may prevent performance of a contract