Factors affecting delayed payments on donor funded road projects in Ghana

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Date
2011
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Abstract
Payment for donor funded road projects to Contractors in Ghana delays and the Government spends huge sums of money to pay interest due to this delay. Attempt to find solution to this problem is laudable. The aim of this research was to identify the significant factors that affect delayed payments on donor funded road projects in Ghana and offer recommendations to minimise or curtail them. To achieve this aim, a survey questionnaire was designed to elicit opinions from Pubic/Civil Servants, Contractors, Civil Works Consultants and Donor Agencies. Purposive sampling technique was used and out of the 304 questionnaires distributed, 130 were received representing a response rate of 42.76%. Exploratory Factor Analysis (EFA) was run for dependent variables using the principal component analysis as the extraction method and the varimax criterion as the rotation method to eliminate variables that are not factorially pure. This resulted in fourteen (14) dependent variables which were grouped under four principal factors i.e. Project Management, Coordination among Contracting Parties, Client’s Financial Management and Client’s Administration. The fourteen (14) significant variables were subjected to Kendall's Concordance Coefficient and Chi-Squared Tests to ascertain the agreement among the four respondent groups. It was found that the respondents were in agreement to the significance of the entire fourteen (14) variables. It is recommended that contracts should be awarded to competent Consultants and Contractors with qualified personnel; Clients, Consultants and Contractors should all see the project as their own and coordinate effectively among themselves, Government should show serious financial commitment to every donor funded road project and personnel involved with the processing of the certificate should be trained more especially in the conditions of contract regarding payment, either in-house or through seminars.
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A Dissertation Presented to the Department of Building Technology, Faculty Of Architecture And Building Technology College of Architecture and Planning Kwame Nkrumah University Of Science and Technology in partial fulfilment of the requirements for the Master of Science Degree in the Construction Management Programme
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