Effective Procurement Planning: A Tool for the Timely Delivery of Works Contract in the Roads Sector of Ghana

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November, 2015
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There has been the view that most of the agencies in the roads sector do not plan for their yearly procurement activities. The execution of their works contract and the procurement are done at the behest of politicians and mostly as emergency works. But, the Public Procurement Act 2003 (Act 663) states that all entities funded by state resources or partially funded by the state are to plan their activities for the preceding year latest one month to the close of the year. This study aimed at documenting the current procurement planning processes, the challenges that hinder those processes and to propose recommendations that will aid in effective procurement planning to ensure timely delivery of works contract in the roads sector. The case study approach was used to design the research, and the sampling technique used was the purposive sampling to select the units for the study. Because the study targeted the personnel who were directly involved with procurement planning at Ghana Highways Authority (GHA), a total of 46 questionnaires were distributed to Quantity Surveyors and Civil Engineers. Thirty (30) useable responses were obtained. The study revealed some challenges which hinder the effective procurement planning with respect to GHA. These included lack of adequate funding and poor performance of some contractors. Also the factors which emerged prominent with respect to enhancing timely delivery of works contract were the financial thresholds and the choice of contract type. The study recommends the provision of adequate funding which is the most challenging factor hindering effective procurement planning, frequent review of the procurement planning processes as stated in Section 21(3) of Act 663, effective contract management and adequate training for all personnel on procurement planning procedures and to enhance cooperation from implementing divisions.
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 in Procurement Management,