The role of value management in sole sourcing method of procurement a case study of Ghana Highway Authority (GHA)

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Date
November, 2015
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Abstract
Value management is critical to cost saving in construction and other industries. However, the subject matter has hardly been linked with procurement, especially sole source procurement. This study therefore sought to investigate this issues with the Ghana Highway Authority as the case study. The researcher sought to identify the aspects of sole source procurement method that impedes the achievement of value for money as well as identify value management (VM) principles that could be applied to procurement. In addition, the study determined the VM principles that could promote value for money in sole source procurement process and identify and rank the challenges in integrating VM principles in sole sourcing in public procurement. The study was designed as a quantitative survey with questionnaire as the main tool in data gathering. Data was collected from a sample of 61, with 56 (representing 91.8%) recovered. It was concluded that though GHA knows about VM, it implements only three out of its several components, which are ‘having a job plan ’, ‘pre-study analyses and ‘implementation analyses. It was further concluded that VM is not effectively practiced in GHA’s ‘sole source procurement. The variables that impedes the practice of VM towards enhancing GHA’s operational efficiency and getting value-for-money were the absence of a national or international competitive tender, lack of competition, purchasing of urgently needed goods and the lack of planned, budgeted bids. These challenges implies respondents’ preference for the other sourcing methods as those where value management could be better practiced, relative to sole source procurement. Other pressing challenges faced in integrating VM in GHA’s sole source procurement are the lack of management support in implementation of value management, the poor understanding of the VM methodology, lack of trained independent facilitators, inadequate time to go through the VM processes in sole source procurement and the lack of motivation to even do so. The study recommended that GHA managers should show by action and words that they are interested in the implementation of VM in all procurement activities of the institution and also institute training programmes designed to educate and equip their employees on the VM principles and factors towards equipping them for the eventual implementation of VM in GHA operations.
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A thesis submitted to the Department of Building Technology, College of Art and Built Environment, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirement for the Degree of Master of Science in Procurement Management,
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