Benefits and Level of Using Retention Bond for Construction Projects in Nigeria

Abstract

This research work assesses the extent of usage of retention bond in construction projects in Nigeria using project characteristics such as procurement methods, contractual methods, as well as project risks and problems as basis. Collected data were analyzed using statistical tools such as frequency distribution, mean item score, mean gap, Mann-Whitney U test and T-test so as to determine the mean values, dierences in mean and significance of the dierence. The findings from the study indicated that retention bond reduces the level of risks and problems associated with construction project performance. More so, the usage of retention bond in construction projects is significantly aected by selected procurement method as well as identified problems and risks of such project. Professional bodies are therefore encouraged to lay down relevant laws to encourage the use of retention bond in order to improve the quality of projects in the construction industry.