Factors influencing the selection of procurement methods for construction works in Ghana
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Date
2015-11-01
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Abstract
Procurement according to the Aqua Group, (1999) is the procedure whereby goods and services are obtained or acquired from other sources which attracts some fee. The importance of selection of a procurement method has been pointed out by (Chan, 1996), who found out that the procurement method selected can influence the time performance of construction projects. The main intent of this study was to examine the various factors that influence the selection of the methods for procurement of works in Ghana. To achieve this goal, the study wanted to attain the research objectives, which are: to identify the various procurement methods frequently used for works in Ghana, to identify the key stakeholders who participate in the selection of procurement methods for works, and to identify the factors which are considered when deciding on the method of procurement to use for works. A review of literature identified six (6) procurement methods frequently used for construction projects in Ghana i.e. NCT, ICT, Two-Stage tendering, RFQ, Restricted tendering and Single Source. Seven (7) factors were also identified as having the tendency to persuade the method of procurement that will be considered for selection in construction projects in Ghana. These factors were speed, estimated value of the project, flexibility in accommodating design changes, quality specification, complexity of project, security reasons and tendency for disputes and arbitration. The strategy and method used was a questionnaire survey and a descriptive statistics (mean and standard deviation), non-parametric chi-square, cross-tabulation and frequency analysis with percentages were used to do the analysis. The study revealed that NCT method was frequently used for construction projects in Ghana. It was also observed that, there were seven (7) most significant factors that has an influence on the method of procurement to select for a project and also “the estimated value of the project” seem to have a strong influence on the method of procurement to be selected for a project. In conclusion, the NCT and RT were the most dominant methods used and both are deemed to be competitive. It is therefore highly recommended that the key stakeholders involved in the method selection for use should consider carefully all the available procurement methods for works; study them, analyze their pros and cons to know their effect on the project. They should also critically look at the selection criteria of the method to be adopted and know how it will effectively help the project. Lastly, the client’s project performance criteria must be established and match against the performance outcomes of the various methods to be considered before selecting it for the project.
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A Thesis submitted to the Department of Building Technology in partial fulfillment of the requirements for the award of Master Of Science (MSc) in Procurement Management