Winning a contract is one thing successfully executing it without falling into legal, financial, or operational traps is another. In Nigeria’s procurement space, many contractors get blacklisted, lose money, or damage their reputations due to avoidable mistakes.
Whether you’re bidding for your first contract or you’re a seasoned player, here are the major pitfalls to avoid and how to stay on the safe side.
Too many contractors skip through the terms and conditions of a contract, focusing only on the figures. That’s dangerous.
What to watch out for:
- Penalty clauses for delays
- Payment timelines and conditions
- Scope of work (is it clear or vague?)
- Termination clauses (some can be triggered too easily)
Tip: Always get a legal review before signing. Contracts are binding, even if you didn’t “fully understand” them.
2. Submitting Incomplete or False Documents
Whether it’s tax clearance, audited reports, or NSITF certificates, submitting:
- Expired
- Incomplete
- Or outright fake documents
can ruin your chances or worse, get you blacklisted.
Even if you win the bid, due diligence later in the process can expose document issues.
Pro Tip: Work with a compliance officer or legal advisor to maintain an up to date compliance file.
3. Underestimating Project Costs
Trying to beat competitors with unrealistically low bids often leads to:
- Project abandonment
- Poor quality work
- Delays
This is one of the fastest ways to lose credibility with procuring entities.
Lesson: Price realistically. Make room for inflation, logistics, and unforeseen costs.
4. Lack of Project Execution Capacity
Winning a contract without the manpower, equipment, or experience to deliver is a disaster waiting to happen.
Common issues include:
- No qualified team on ground
- Inability to mobilize early
- Dependence on third-party partners who underperform
Solution: Only bid for what you can handle or bring competent partners onboard officially (via JV or subcontract).
5. Neglecting Procurement Ethics
Bribes, kickbacks, and behind the scenes deals may offer short term wins, but they create long term risks:
- Investigations by EFCC or ICPC
- Blacklisting by BPP or international donors
- Loss of public trust
Stay clean. Many contractors have built thriving businesses through ethical, professional conduct.
6. Poor Record Keeping
Lack of proper documentation like invoices, delivery notes, letters of award, and minutes of site meetings can:
- Delay your payments
- Lead to disputes
- Make you vulnerable during audits
Pro Tip: Keep a digital and physical file for every contract. Treat it like an asset it is.
7. Failure to Follow Up on Payments Properly
Contractors often leave millions on the table simply because they don’t follow up smartly after project delivery.
Avoid:
- Aggressive or unprofessional communication
- Depending solely on verbal assurances
Instead:
- Track your payment schedule
- Write polite, formal reminders
- Engage your lawyer early if there’s a payment delay beyond agreed terms
8. Ignoring Dispute Resolution Mechanisms
If a contract goes south, don’t rush to court. Most contracts spell out preferred dispute resolution methods like arbitration or mediation.
Use them. They’re faster, cheaper, and less hostile than litigation.
Conclusion
Contract procurement is more than bidding and winning it’s about staying compliant, ethical, and prepared at every stage. Avoiding these common pitfalls could be the difference between building a thriving contracting business and becoming another cautionary tale.
