Outsourcing in the Procurement of Building Structures and its Effect on Project Delivery in Ghana

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Construction has become very sophisticated and diverse with new designs, technology and products being adopted in the procurement of contemporary building structures. Construction organisations in their bid to be competitive and meet their clients demand outsource various services to able external vendors. The organisations outsource primarily because it may not be their core function or they lack the necessary requisite technical expertise and resources. This study identifies the various resources and services construction organisations outsource and the effect on project delivery in Ghana. Open ended, Close ended and Likert type questionnaire were developed and distributed to construction organisations in the Ministry Of Water Resources, Works and Housing category D1K1 to D4K4 in Accra. Each questionnaire had 22 questions with the Likert Type having a maximum magnitude of 5. SPSS version 17 was used to analyze the data. The result indicated that skilled labour were predominantly outsourced in Accra compared to the unskilled in the labour category. Excavators were outsourced more in Accra in the earthmoving equipment category as compared to bull dozers, backhoe/site master and trenchers in that order. The most outsourced concreting plant in Accra was the truck mounted concrete mixers in that category. Architectural Services were outsourced more in the consultancy service category with contract management being the least outsourced. Electrical works was the most outsourced services with tiling/terrazzo being the finish most outsourced in their respective categories. External vendors predominantly met their completion schedules. There is the need for appropriate measures to be taken to enhance outsourcing in Ghanaian Construction to ensure value for money to client and maximum productivity to construction organisations. This can be done through efficient and effective outsourcing and proper monitoring and supervision of outsourced external vendors. Keywords: Outsourcing, Procurement, Building Structures, Effect, Project Delivery, Ghana.
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