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Please use this identifier to cite or link to this item: http://hdl.handle.net/123456789/8077

Title: Relevance of Procurement Securities in the Procurement of Works in the Ghanaian Construction Industry: A Case Study of the Road Sector
Authors: Baiden, Afua Agyefua
Issue Date: 9-Nov-2015
Abstract: Procurement securities at any stage of the procurement cycle is given to the buyer by the seller as an assurance that the cycle would be completed and the purpose for that procurement exercise would be achieved. Guarantees securing can be very costly for the contractors depending on the institution’s risk rating of the contractor. The aim of the study is to assess the relevance of procurement securities in the procurement of works within the road construction sector of Ghana. Identifying the various types and effects of procurement securities, with challenges and relevance of procurement securities were the objectives taken under consideration. The main tool used in the data collection was questionnaires with the target population for the collection of data being professionals in the road sector engaged in accessing tender securities. Statistical package for social scientists (SPSS V 20), mean score ranking was employed to analyze data obtained. Bid, Performance, Advance Payment and Retention Guarantees are the main procurement securities accessed in the road sector. The findings revealed that transfer of performance and financial risk to the surety; provide an assurance of performance; guarantee against default at the end of the defect liability period and provide protection in the event that the contractor is unable or unwilling to perform were the main effect of procurement securities on the procurement process. On the challenges associated with procurement securities; organization and financial capability, prolong time required in investigating the defaults, narrow perspective of the surety response was identified as the main ones. Finally, the study identified the following relevance of tender guarantee; ensures bid is submitted in good faith, performance guarantee ensures that works will be executed per specifications, advance payment guarantee assures contract employer of proper utilization of funds for mobilization and retention securities protect clients against default at the end of the defects liability. It is recommended that the financial or surety institutions should make the accessing of these procurement guarantees less expensive and iii frustrating for contractors. The collateral demands should be reconsidered to allow contractors to access these guarantee. Contractors should also work towards building their financial capacity at all levels in order to improve their risk rating from time to time.
Description: A Dissertation submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfillment of the requirements for the degree of Master of Science, 2015
URI: http://hdl.handle.net/123456789/8077
Appears in Collections:College of Architecture and Planning

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