Effects of Procurement Methods on Project Execution
Public procurement is a key for ensuring a desired process for acquiring goods, works and services at the right cost, quality and appropriate time. Public procurement in Ghana has evolved overtime with the Government of Ghana coming up with the procurement Act 663 to guard the public procurement process and minimize the challenges of the system. A country assessment report by the World Bank in 2003 revealed wrong use of the procurement methods as some conditions and requirements put in place for using the methods were not adhered to and thus disrupting the process. Indeed single sourcing was identified to be the most often used method ahead of Competitive tendering which was considered as an ideal method. The study was thus required to further investigate into the methods of public procurement in Ghana to elucidate the most often used procurement method in Sekyere Central District in the Ashanti Region, the compliance of rules and regulations regarding the use of the methods and the effects the procurement methods had on project execution in the District. Five (5) main procurement methods are identified by the Procurement Act 663 for use at the District Assembly level. These include; National Competitive Bidding, Request for Quotations, Single Sourcing, Restricted Tendering and Two-Staged Tendering. These methods are all eligible for use at the District Assembly level and are managed by the Procurement Entity, Tender Review Board and Tender Evaluation Panel. These methods are to ensure the principles of value for money, competition amongst others. Data for the study were obtained from primary and secondary sources. Purposive sampling procedure was used to select the major people involved in using a particular method in the District. Data collected from the survey were collated, synthesized and analyzed to provide the reference point for analysis. The study adopted qualitative and quantitative analysis. The study came up with numerous findings. Key amongst them includes: 1.National Competitive Tendering was the most used method in the District. 2.Request for quotations was the second used method in the District contradicting World Bank’s study. 3.Corruption was identified as a major impediment to the entire procurement process and thus causing side stepping of some process hence the use of wrong methods. Based on the findings, recommendations were given which included: 4.Provision of resources for procurement entities to go through the right procurement processes. 5.Continuous monitoring and evaluation of procurement methods and procedures in the procurement process. 6. Enforcement of punishment on defaulters who side step the processes and procedure for their selfish gains. 7.The study recommends further research into the relationship between procurement methods and the quality of projects executed. A further study into this will help deepen knowledge on procurement methods and project execution.
A Thesis Submitted to the Department of Building Technology, Kwame Nkrumah University of Science and Technology in partial fulfillment of the requirements for the award of a degree of Master of Science in Procurement Management, 2014