Effect of the Public Procurement Act 2003, (Act 663) on the Use of Non-Traditional Works Procurement Systems by MMDAs in Ghana.
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Date
2015-03-03
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Abstract
There are two main key terms in construction procurement: procurement systems and procurement
methods. The methods embraced by the Act are International Competitive Tendering, National
Competitive Tendering, Restricted Tendering, Price Quotation etc. Based on the type of project and
certain characteristics, the procurement system of the project need to be considered. The most
suitable procurement system selection is critical for both the client and other project participants as
it is an essential factor that significantly affects the success of the project. The selection and use of a
particular system are dictated by factors such as size, complexity facility and time-scale of the
project, etc. There are currently changing client demands (cost, quality and time, etc.) in the
construction industry. Traditional procurement system has however failed to meet these
requirements. This provides as an opportunity to consider non-traditional procurement systems as
an alternative. It is also not yet established if the Public Procurement Act 2003, Act 663 has some
influence on this pattern of choice. Hence this study synthesizes the role played by the PPA 2003,
Act 663 in the non-utilisation of the non-traditional procurement systems by Metropolitan
Municipal and District Assemblies in Ghana. The objectives of the study among others included
identifying the processes and procedures adopted by MMDAs in the selection of construction
procurement systems, identify any specific clauses in the PPA 2003, Act 663 which consider the
selection of works procurement systems by public procurement entities and factors militating
against the choice of non-traditional procurement systems by MMDAs for public works. The main
tool for the collection of data was questionnaires. The target population for the data collection
included architects, quantity surveyors, engineers and procurement officers in the Metropolitan and
Municipal Assemblies in Ashanti region. Census sampling technique was employed in the
identification and selection of the public entities. Statistical package for the social sciences (SPSS)
version 20 was employed to analyse data obtained. Mean score rankings was adopted to analyse
data on the role of PPA 2003, Act 663 and factors militating against the choice of non-traditional
procurement systems. The results indicate that the PPA 2003, Act 663 plays an important role in the
non-utilisation of traditional procurement systems. One of the main recommendations of this
research is for public procurement entities to have a formalised and rationaled procurement system
selection structure to assist them in taking procurement decisions.
Description
A Thesis Submitted to the Department of Building Technology, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of a degree of Master of Science in Procurement Management.
Keywords
Public Procurement Act 2003, (Act 663), Procurement Methods, Procurement Systems, Traditional and Non-Traditional)