Development of a framework for capacity building of sme building contractors in Ghana through public procurement

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Date
November, 2015
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Abstract
The importance of public procurement in achieving governments’ socio-economic objectives in both developed and developing countries are widely acknowledged among policy makers, professionals, and the academia. One of such objectives that governments have sought to use procurement to achieve is building the capacity of their local industries, especially those in the SME categories. The construction industry in Ghana is made up of a significant number of smaller construction firms and ensuring their effective capacity building will contribute enormously to the economy. Again, considering the government as a major stakeholder in the Ghanaian construction industry, a lot can be achieved if government uses its procurement to help build the capacities of these construction firms. However, there is a dearth in literature with regards to the use of public procurement for capacity building in the Ghanaian construction industry. This research work therefore sought to develop a framework for capacity building of SME Building Contractors (SMEBCs) in Ghana through public procurement. The specific objectives of the research included: identification of significant factors affecting the capacity of SMEBCs in Ghana; identification of public procurement policies and strategies that inure to building the capacity of SMEBCs; and development of a framework for establishing public procurement policies and strategies to enhance the capacity of SME Building Contractors in Ghana. The study employed both qualitative and quantitative data collection techniques. Data obtained through the questionnaire survey were analysed using descriptive statistics (percentages), one sample t-test, and factor analysis. The study revealed the following as factors affecting the capacity of SMEBCs in Ghana: delay in payment for work done, limited access to credit, non-payment of interest on delayed payments, and lack of fair competition. In addition, the study revealed the following public procurement to be relatively important for capacity building of SMEBCs in Ghana: strict adherence to payment schedules;streamlining procurement procedures to make them more transparent and standard; encouraging collaborations among various stakeholders; joint venture arrangements; and subcontracting arrangements. The framework for capacity building of SMEBCs was developed using the findings from the literature review, semi-structured interviews, and questionnaire survey and by employing key concepts of problem solving methodology. The study has made recommendations which, if adopted, will help build the capacity of SMEBCs in Ghana. The content of the research work is expected to be of interest to major stakeholders of public procurement, particularly public procurement entities such as Ministries, Departments, Agencies (MDAs), and District Assemblies (DAs).
Description
A thesis presented to the department of Building Technology, Knust, Kumasi in partial fulfilment of the requirements for a degree of Master of Philosophy in Procurement Management.
Keywords
Capacity Building, Ghana,, Public Procurement, SME Building Contractors, Procurement Policies, Strategies
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