Impact of the Use of Financial Incentives on Project Delivery in Ghana.
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Date
2018-10
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KNUST
Abstract
Financial inventive systems are mitigating measures that are neither against the contract nor
obligatory, but the client does it to boost productivity. The usage of one or more of the existing
incentive schemes to improve contractor’s performance and enhance timely completion of
projects remains recommended for good practice in the Construction industry. However, projects
in Ghana continue to face great challenges resulting in cost and time overruns and quality
deficiencies. Although an appropriate use of incentive schemes on any given project is known to
result in successful project performance (and vice versa), very little is known about the nature of
this relationship from literature. Having persistently suffered a great deal of project failures over
the years, the Ghanaian Construction Industry stands to benefit from detailed knowledge and
understanding of how exactly financial incentives impact on project delivery. Stimulated by the
depth of this information, this research aims at investigating the impact of the use of financial
incentives on project delivery in Ghana. The methodological approach adopted for this research
was the multi-method qualitative study, ie using either two or more qualitative techniques
(interviews and archival records). The respondents of the research involved Consultant’s and
Contractor’s team who executed the three cases selected from the Directorate of Physical
Development and Estate Management (DPDEM) of the University of Cape Coast (UCC). With
the aid of framework analysis, the collected data were analysed. The key findings of the research
show that contractors’ access to credit is improved when clients and consultants grant them
financial incentives which in turn boost their performance. It also motivates them at the various
phases of the project life cycle. The distinct contribution to knowledge arising from this research
includes the affirmation of the impact of financial incentives on project delivery. Hence, it is
suggested that proper background checks (audited accounts, history of precious works, etc.) of
the Contractor must be done before giving him any financial incentives and Stakeholders
(Clients and consultants) must monitor the use of the incentive by the contactor. Implications for
future research include assessment the risk factors in giving financial incentives and the effect of
financial incentives on project delivery teams.
Description
A Thesis submitted to the Department of Construction Technology and Management, College of Art and Built Environment in partial fulfillment of the requirement for the degree of MASTER OF PHILOSOPHY