The effect of significant securities in procurement processes in Ghana

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All nations and organizations need inputs of good, works and services from external suppliers or providers. Procurement represents a very large fraction of total economic activity. Procurement is considered to represent a major aspect of the Gross Domestic Product (GDP) of developing and developed countries which occupies a considerable portion of private and public sector employment. Therefore, this study was conducted to assess the effects of significant security on the procurement process in Ghana. The study used the descriptive and cross-sectional design and with the incorporation of closed ended questions to gather information from respondents. The research design was quantitative data. The purposive non-probability and systematic sampling techniques were used in selecting subjects for the study. The data obtained from the questionnaires was analysed using Microsoft Excel and The Statistical Package for the Social Sciences (SPSS). Also, the SPSS was used to highlight the various relationships between variables using ANOVA/T-test for significant. The study revealed that, there are several significant securities that are being employed in the procurement of public goods and services. Payment securities, retention securities, performance securities, builders risk insurance, bid securities and worker‟s compensation securities were determined to be the types of securities employed in the procurement of public goods, works and services. The results of the study showed a direct positive relationship between the provision of significant securities and its influence on the procurement processes in procuring public goods, works and services. Another significant finding is that, „Financial institutions and other related parties charges high on securities‟, „remedy does not cover the full cost of loss‟, „it takes longer period for surety of security be realised‟, „limited scope of responding to surety‟, „satisfying bid security delays as a result of investigating default in meeting project requirement‟ were identified as the main challenges in using significant securities in the procurement processes in Ghana.
A thesis submitted to the Department of Construction Technology and Management, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfilment of the requirements for the Award Degree of Master of Science in Procurement Maanagement.
Effect, Significant Securities