Developing a strategic procurement process for the Ghanaian Construction Industry

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A strategic procurement process is vital for the success of firms in terms of procuring goods, services and works. However, procurement in various organisations are entangled with challenges which cause delays in the entire procurement process. This quantitative study was conducted in some building and civil construction firms in the Accra metropolis in the Greater Accra region with an aim of developing a strategic procurement process for private entities in the Ghanaian construction industry. The study was conducted using survey questionnaires. The structured questionnaires were used to obtain data to ascertain the challenges associated with procurement processes and measures to improve procurement processes. A total number of sixty questionnaires were administered and fifty were retrieved representing a response rate of 83.33%. Relative Importance Index rankings was the main tool used for analysis. The findings of the research revealed that the main challenges encountered in the procurement processes were difficulties in long term strategic planning, long payment processes to suppliers, service providers cutting corners to limit losses, unnecessary delays and ad-hoc approaches to economic size projects. However, the main strategic measures to improve the procurement processes included ICT adoption, adoption of just-in-time procurement, effective records management, adequate controls to reduce corruption and high level of compliance with procurement regulations were also ascertained. Further studies have been recommended to improve procurement process practices in organisations such as effects of procurement processes on productivity.
A thesis submitted to the Department of Building Technology, College of Art and Built Environment in partial fulfilment of the requirements for the degree of Master of Science.
Procurement, Procurement processes, Challenges, Ghana, Measures