Constraints in Contract Claims in the Ghanaian Construction Industry: Study in the Western region.

Thumbnail Image
Journal Title
Journal ISSN
Volume Title
The competitive bidding system forces contractors to price their work in a way that will give them the best opportunity to be the lowest bidder. Sometimes, too much attention is placed on getting the work and not enough attention is given to how the work can be done profitability. From the scope and objectives of the study, different test have been conducted and the procedure used for this is the quantitative method through questionnaire. This was to solicit the experience of qualified personnel on site to identify the constraints in the construction contract claims in the Ghanaian construction industry. This case study, questionnaire was developed for the contractors who are registered to the Ministry of Water Resource Works and Housing classified under financial class D1K1, D2K2. The study was limited to contractors working in the Western region. It was revealed that almost all the contractors’ questionnaire used the standard condition of contract (P.P.A) Public Procurement Authority. On the part of dispute resolution mediation was rank first with expedient and litigation last with 1.5 percent. About eighty percent (80%) always notify the clients when they identify claims by writing while less than five percent (5%) communicate to the clients through telephone communication. It was shown that contractors who purchase contract document bid for contract work or project do not study the content of the document. This has given way for some of the client to argue their way out which leads to constrain on the part of the contractor. Documentation was also one of the major problems which bring about constraint, most of the contractors do not keep proper documents of failed activities when there are variations, valuation or any type of claims. To put in justifiable claims, to avoid constraints or misunderstanding between the client and the contractor, documentation is the key. To avoid constraints in the construction contract claim documents must be prepared by competent persons. The public procurement board should come out with a standard procedure administering claims and specifying days that the client should respond to notification of claims to avoid misunderstanding and conflict on site.
A Thesis Presented to the Department of Building Technology, College of Art and Built Environment, in partial fulfilment of the requirements for a degree of Master of Science,