Factors Influencing the Non-Participation of Indigenous Building Construction Firms (in Ghana) in International Competitive Tendering (ICT)

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Construction of major projects are mostly awarded to foreign construction companies over the indigenous construction firms in Ghana. The first question that arises is that what are the first class indigenous constructions firms in Ghana doing and the reasons why they are not being awarded such projects. This study attempts look into the factors which influence the non-participation of indigenous building construction firms in Ghana in international competitive tendering. In order to achieve this aim; the specific purposes were set: to identify factors influencing the non-participation of indigenous building construction firms in international competitive tendering; identify the effects of these factors from the non-participation of the indigenous building construction firms in international competitive tendering; and identify how these factors could be managed to enhance and develop the interest of the indigenous building construction firms in international competitive tendering. The study adopted quantitative research method and probability sampling approach in selecting its sampling size from a number of populations. Statistical Package for Social Sciences (SPSS) and Microsoft Excel were used in the analysis of the data. The discussion on the analysis was based on the researchers’ survey and other relevant literature employed for the study and was analysed using descriptive statistics and diagrams generated using Excel. The rest of the sections were analysed using Relative Importance Index and Mean Score Rankings. The study revealed that the indigenous construction firms in Ghana are not able to compete with international firms due to lack of technical skills, lack of logistics/resources, inability to secure adequate working capital and low productivity. Majority of the respondents proposed entering into joint-ventureships and alliances or partnership. They also wish to participate in workshops/seminars organized for building construction firms to enhance their knowledge and performance in the industry. It is recommended that there should be adequate up to date training for engineers working with indigenous construction firms in advance technology and complex project to upgrade their capacities, since indigenous building construction firms do not undertake or participate in international competitive project. Civil works such as road, complex buildings etc. are to be given out to local contractors other than foreign firms to increase their productivity and enable them secure adequate working capital. Building Construction Firms must seek to understand all Conditions of Contracts for International Competitive Tendering.
A dissertation submitted to the Department of Building Technology in partial fulfilment of the requirements for the degree of Master of Science (Msc) in Construction Management.
Indigenous Building Construction Firms, Non-participation, Factors, Influence, Ghana, International Competitive Tendering