Abstract
A fundamental principle of project quality management is that quality is planned into project and not inspected through project. In the context of host communities in developing countries with mineral exploration activities construction projects and contracts generally is a key provider of employment in both short, medium and long term and particularly for the locals, therefore the incorporation of quality management systems in project life cycle is paramount for sustainable development. Ensuring project quality plays an important role in socio-economic development of people as it provides the most basic infrastructure that promotes economic activities. Quality management systems (QMS) has significant value relating to project quality and cost reduction and a comprehensive quality management culture can promote project success, mutual beneficial relationship and organisational sustainability. This study provides empirical findings emanating from local vendor(s) understanding, compliance and implementation of quality management systems in a multinational oil company (MNOC) community assisted projects. The study utilised SPSS version 22 for the statistical data analysis and Goodness-of-fit-test interrogated the assumption that contractors are not complying with quality management systems in project execution. The study found inter alia that 65% of the vendors are registered as closed corporation (sole proprietorship), 15% were limited liability companies, while 20% belong to other category such as subcontractors. Furthermore, 98% of the 222 respondent are yet to develop a quality manual and a conceptual nominated vendor system (NVS) project quality model was developed to improve the contract award and project management status quo, with emphasis on the need for integration of quality management systems in project life cycle for the oil and gas host communities.
Highlights
In the context of host communities in developing countries with mineral exploration activities construction projects and contracts generally is a key provider of employment in both short, medium and long term and for the locals, the incorporation of quality management systems in project life cycle is paramount for sustainable development
Construction projects and contracts generally is a key provider of employment in both short, medium and long term and in oil and gas host communities, the incorporation of quality management systems in project life cycle is paramount for sustainable development
In the study 145 contractors are registered as closed corporation, this indicate that most business representing 65% are run by an individual, quality manual and clearly articulated quality policy were not found in the profile reviewed; 33 contractors representing 20% are limited liability companies with directors, some companies in this set follow the same trend as the closed corporation with regards to quality manual; while 15% representing other categories are individuals that are doing businesses in the area under research but uses their personal names or executing contracts as sub-contractors
Summary
Most project participants have adopted different management practices for project execution targeted exclusively towards completion and commissioning without developing, managing and implementing quality management systems (QMS) (Othman, 2011, pp. 31-54; Ahmed, Aoieon, Tang, & Zheng, 2005, pp. 149-161; Xiao & Proverb, 2002, pp. 672-687) from the project initiation phase that will guide the development of clients’ objectives towards improved service quality, faster project execution and innovations (Andrew & Lau-Tang, 2009, pp. 410-425; Low & Teo, 2004, pp. 8-15) and the quality management practices are designed to meet clients’ views of quality, as well as, complying with specifications (Tang, Poon, Ahmed, & Wong, 2003; Tang, Ahmed, Aoieong, & Poon, 2005). Vol 7, No 4; 2017 relative peace in Egi Kingdom; it is noteworthy that socio-economic engagement between the host communities and TEPNG including their vendors has been sporadic and characterised by gross neglect for community project quality by some local vendors; contractors are not held accountable for poor quality projects by their respective communities including deviation from specifications; and this has led to unaccounted community funds, project failure and over budgeting in projects as in the case of Obite community where a community guest house project has been funded annually by TEPNG, yet remained uncompleted year-on-year, partly due to deviations from the original specification and insufficient knowledge of project quality management structures by some of the contractors, this trends can be linked to inter alia nomination of contractor(s) (Figure 1) which are mostly awarded on the grounds that vendors are indigenous or in the community leadership. In this paper the author developed a nominated vendor system (NVS) project quality model presented in (figure 2) and findings were based on the level of compliance to quality standards and project specifications from a quality management perspective; and recommendations were proffered on improving project quality in host communities in the area under research
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