Factors influencing project selection decisions of contractors in Ghana

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
This research investigates the factors which General Building, category Dl and D2 contractors in Ghana consider when making project selection decisions through the use of questionnaire survey supplemented by interviews. Literature was used to identify the factors thought by authors to be most influential and this was used as part of the questionnaire to guide the contractors. The information obtained were analysed by ranking techniques (i.e. the use of relative importance indices). The results obtained indicated the strengths of the factors identified. Spearman’s correlation coefficient and coefficient of variation were also used to compare the results. Ten factors namely project payments, location of project, value of project, identity and reputation of client, contract profitability, physical resources necessary to carry out project, type of work, work load, project’s ability to promote contractor’s image and financial resources necessary to execute project were identified as the major factors influencing project selection decisions in Ghana The highest ranked factor is the ability of client to pay for work done (project payments). The research also established that contractors use mental judgement in arriving at bid –no - bid decisions and that the two category of contractors (D 1 and D2) differ significantly in outlook from each other, in attaching weightings to these factors. A structured methodology based on the techniques of decision analysis for modeling the bid-no-bid decision problem is also presented. The method is demonstrated with the help of a hypothetical example.
A thesis submitted to the Board of Postgraduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirement for the award of the Degree of Master of Science in Construction Management, 1999