Developing the capacities of small-scale building contractors through management contracting procurement system

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November, 2015
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Small-scale building contractors are very important to the Ghanaian economy and the building construction industry as they account for over 95% of building contracting firms and over 90% of building and civil construction job markets in Ghana. However, they are confronted with various challenges that affect their development. Thus the aim of this study wasto explore the application of management contracting procurement system concept as a capacity-building strategy to develop small-scale building contractors in Ghana. The specific objectives were:to identify the critical capacity-needs of small-scale contractors; to identify the benefits of sub-contracting relationship; to identify the potential obstacles to the implementation of management contracting procurement;to identify the possible measures to promote the implementation of management contracting procurement; and topropose a capacity-building framework through the implementation of management contracting procurement system concept. Data generated from the survey was further analysed using mean score ranking, factor analysisand analysis of variance (ANOVA) through the use statistical package for social scientists (SPSS V 20). The three most important capacity-needs of small-scale building contractors identified from the study were; the managerial skills development, prompt payment system and lessening of political interference in awarding public contract. Additionally, the three main benefits obtainable from sub-contracting relationship by the small-scale building contractors were; transfer of technology, job opportunities and improved credit worthiness. Moreover, inadequate knowledge, absence of qualified personnel, lack of confidence in management contracting and absence of enabling law were identified as the potential obstacles to the implementation of management contracting procurement. But, the study identified developing a regulatory framework for management contracting practice, organising seminars on management contracting for stakeholders and revision of existing rule and documents to recognise other non-traditional procurement methodsas the most important measures to promote management contracting procurement. Using the obstacles, measures and the benefits of sub-contracting relationship identified from the study, a capacity building framework was developed based on the concept of management contracting procurement system. The study recommends for job opportunities, business development programmes and awareness creation on the management contracting procurement to facilitate the development of the small-scale building contractors in Ghana.
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A thesis submitted to the Department of Building Technology, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the Degree of Master of Science in Construction Management, 2015
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