Strategies to develop the capacity of private Sector in Contract Management (case study of Ejisu – Juaben Municipal Assembly)

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
The Government of Ghana embarked on a reform to structure the country’s Procurement Processes in 1996. The reform culminated in the passage of the Public Procurement Law, Act 663 (2003). One of the key objectives of the law is to secure judicious, economic and efficient use of state resources. Consequently, the Act mandated the Public Procurement Authority (PPA), to assist the local business community including the Private Sector to become competitive and efficient Suppliers, Contractors and Consultants to the Public Sector, Act 663 section 3 (t), (2003). The World Bank (2007) has reiterated the effects of Public Procurement on the Ghanaian economy. The Bank accordingly has indicated that any improvement in procurement capacity yields greater value for money and increases in public service delivery. The Ghanaian private sector is perceived as having limited technical know-how on Contract Management processes. This often leads to contract cost overruns and non completion of contract on time, Afre (2010). Perceptions or concerns about performance tend to provide the entry point for thinking about capacity development. This works in both ways: under performance is associated with inadequate capacity and performance is associated with adequate and efficiently used capacity. The foregoing provided motivation for this study. The objective of the study was to review best practices of Private Sector engagement in Contract Management for local government institutions. A case study desk survey was conducted at the Ejisu- Juaben Municipal Assembly to assess performance of the Assembly and the Private Sector on implementation of key selected projects. The study showed inadequate performance by the Assembly in Contract Management in comparism with other themes for procurement performance assessment. The study further revealed delays in the implementation of key projects in the face of enhanced cash flows. The expected roles of key stakeholders in Contract Management were reviewed to provide lessons for effective and efficient service delivery. The study brought out the importance of public institutions investing in capacity building in Contract Management to improve on contract delivery. The study also highlighted on the need for monitoring and evaluation for successful contract implementation and achievement of targets. The study adopted a capacity development process and framework developed by the UNDP and the National Treasury of the Republic of South Africa to design strategies to build capacity of local government institutions including Education and Health on the Contract Management Process.
A thesis presented in partial fulfillment of the Requirements for a Degree of Master of Science in Procurement Management,November,2013