Construction Procurement Decision in Ghana

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Construction works in almost every country are procured via a number of tendering systems examples being open competitive, selective, negotiated tendering to mention but a few. The choice of the most appropriate system for a particular project is dependent on factors such as type of client, level of risk, time availability, etc. The basis for the selection of such systems has been branded by many as by experience which is tied to an individual and not available to others via documentation. The development of a scientific tool which facilitates the selection of procurement routes for projects is therefore seen by this work as a means to enhance the quality of management decisions on projects. This work developed such a tool by: • Reviewing literature on procurement systems and tracing the path of development of such systems; • Reviewing the current practice of construction procurement in Ghana; • Identifying the key factors affecting the choice of procurement systems in Ghana: • Developing a performance weightage system of the key procurement factors as mentioned above: • Proposing and developing a novel approach towards construction procurement decision-making in Ghana; • Demonstrating the feasibility of this approach by applying the model to a made-up case. The model comprises three main sections: Input, processing and output sections. The user reads certain priority questions and enters the relative importance of each variable into the system via a scale of 1-20. The processing section computes what is termed rationalized priority ratings. These ratings are again used for the computation of another quantity by a simple multiplication with certain simple multiplications are added up for each procurement system and ranked with the system presenting the highest result being the most appropriate for a particular project. This research shows among other things that procurement decision-making can be modeled for management use. It also shows that although many factors can be identified as having inputs in such decisions, a few can be identified as very important, rated, ranked and manipulated into a practical system. Finally the study concluded that the choice of procurement system is very crucial in determining the success or otherwise in project delivery, as such the model developed will guide all stakeholders in the choice of the right procurement method in any given circumstances.
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 Master of Science in Construction Management, 1999
Procurement Systems, Project Management, Decision Matrix, Value - for - Money, Performance Capacity