Skip to main content
SpringerLink
Log in

Killing What We Intend to Grow: The Challenges of the Local Construction Industry with the Public Procurement Systems in Ghana

  • Conference paper
  • First Online:
The Construction Industry in the Fourth Industrial Revolution (CIDB 2019)

  • 1958 Accesses

Abstract

Countries have used their public procurement systems, as a policy tool to grow their indigene construction industry by reviewing sections that are not favourable to the local construction firms. Ghanaian public procurement systems have gone through various reforms to date. This study, therefore, investigated the challenges faced by the local construction industry concerning the public procurement systems in Ghana. The qualitative research approach was used for this study. A structured survey questionnaire made up of closed and open-ended were distributed to randomly selected 65 construction firms registered and operating from Accra; of which 36 of them responded. Data received were analyzed by using content analysis method whereby similar responses were grouped together and sorted in terms of their frequencies and magnitude. The findings indicate that the local construction firms have major issues with the public procurement systems, some of which include; funding, bribery and corruption, foreign competition, lack of capacity to tender for some project, payment delays, cumbersome tender process, sole sourcing, and political influence. The implication is that the procurement systems in Ghana are still having major challenges in addressing issues faced by the local construction thereby limiting their growth. The limitation of this study is that primary data were solicited from only construction firms operating from Accra. It is therefore recommended that government of Ghana should institute measures such as local content policy, prompt payment, skill development and encourage joint venture to address these concerns in order to achieve the domestication and Ghana without aid policy in the near future.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 169.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 219.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. Schapper, P., Veiga Malta, J., Gilbert, D.: An analytical framework for the management and reform of public procurement. J. Pub. Procurement 6(1&3), 1–26 (2006)

    Google Scholar 

  2. OECD/DAC: Mainstreaming the Procurement Function into the Public Expenditure Policy and Effectiveness Dialogue (OECD/DAC). World Bank Roundtable, Paris, 22–23 January 2003. www.oecd.org

  3. Nicol, W.: Mainstreaming the procurement function into the public expenditure policy and effectiveness dialogue. Paper presented at the World Bank Roundtable, Paris, France, 22–23 January 2003. www.oecd.org

  4. Oppong, D.: The impact of the implementation of public procurement act 2003 (Act 663), on the timely delivery of goods and services: a case study of Ghana Water Company Limited (GWCL). Int. J. Appl. Innov. Eng. Manag. (IJAIEM) 2(8) (2013)

    Google Scholar 

  5. World Bank: Economic Report on Ghana, Washington, DC: Ghana Country Department, The World Bank (2003)

    Google Scholar 

  6. Adjei, A.B.: Message from the Chief Executive. Public Procurement Board, June 2006. http://www.ppbghana.org/about/ppbboard.asp. Accessed 20 June 2015

  7. Kotoka, F.A.: Assessing the Level of Compliance with the Public Procurement Act 2003, (ACT 663) in Public Entities in Ashanti Region of Ghana (2012)

    Google Scholar 

  8. Eyiah, A.K., Cook, P.: Financing small and medium-scale contractors in developing countries: a ghana case study. Constr. Manag. Econ. 21, 357–367 (2003)

    Article  Google Scholar 

  9. Odhiambo, W., Kamau, P.: Public Procurement: Lessons from Kenya, Tanzania and Uganda. OEDC. Development Centre, PDF file (2003)

    Google Scholar 

  10. Arrowsmith, S., Treumer, S., Fejo, J., Jiang, L.: Public Procurement Regulations: An Introduction (2010)

    Google Scholar 

  11. Trepte: Regulating Procurement: Understanding the Ends and Means of Public Procurement Regulations, pp. 18–19 (2004)

    Google Scholar 

  12. Public Procurement Board, Manuals - Public Procurement Act, 2003 (Act 663), Ghana

    Google Scholar 

  13. World Bank: Ghana Country Procurement Assessment Report Number 29055, Vol. 2. World Bank, Ghana Country Department, Africa Region (2003)

    Google Scholar 

  14. Ameyaw, C., Mensah, S., Osei-Tutu, E.: Public procurement in Ghana: The Implementation Challenges to the Public Procurement Law 2003 (Act 663). Int. J. Constr. Supply Chain Manag. 2(2), 55–65 (2012)

    Article  Google Scholar 

  15. Gnanih, E.L.: Investigating into the effect of the Public Procurement Law on the Ghanaian Education Sector. Thesis submitted in partial Fulfilment of Bachelor of Science Degree in Business Administration, Ashesi University College (2012)

    Google Scholar 

  16. Ofori, G.: The Construction Industries in Developing Countries: Strategic Review of the Book, pp. 1–15. Spon, Abingdon (2012)

    Book  Google Scholar 

  17. Laryea, S.A.: Challenges and opportunities facing contractors in Ghana, West Africa Built Environment Research Conference, Accra, Ghana, 27–28 July 2010. http://centaurreading.ac.uk/1682. Accessed 18 July 2014

  18. Amoah, C., Shakantu, W.: The effectiveness of the preferential policies in the Ghanaian procurement law in promoting the local construction industry. J. Constr. Proj. Manag. Innov. 7(SI1), 1859–1876 (2017). ISSN 2223-7852

    Google Scholar 

  19. Welman, C., Kruger, S.J., Mitchell, B.: Research Methodology, 3rd edn. Oxford University Press, Oxford (2005)

    Google Scholar 

  20. Reja, U., Manfreda, K.L., Hlebec, V., Vehovar, V.: Open-ended vs. Close-ended Questions in Web Questionnaires (2003)

    Google Scholar 

  21. Burgess, T.F.: A general Introduction to the Design of Questionnaires for Survey Research (2001)

    Google Scholar 

  22. Cassim, L.: An overview of research design and methodology. Chapter 3, ERS (2011)

    Google Scholar 

  23. Osei-Tutu, E., Badu, E., Owusu-Manu, D.: The level of compliance with the Public Procurement Act in Ghana. Int. J. Manag. Innov. Sustain. Built Environ. (2011)

    Google Scholar 

  24. Thai, K.V.: Public procurement re-examined. J. Pub. Procurement 1(1), 9–50 (2001)

    Article  Google Scholar 

  25. Wells, J., Hawkins, J.: Increasing local content in infrastructure procurement in low income countries, unpublished (2008). Accessed 3 Sept 2013

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Quantity Surveying and Construction Management, University of the Free State, Bloemfontein, 9300, South Africa

    Christopher Amoah

  2. Department of Construction Management, Nelson Mandela University, Port Elizabeth, South Africa

    Winston Shakantu

Authors
  1. Christopher Amoah
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Winston Shakantu
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Winston Shakantu .

Editor information

Editors and Affiliations

  1. Construction management and Quantity Surveying, University of Johannesburg, Johannesburg, Gauteng, South Africa

    Clinton Aigbavboa

  2. Construction management and Quantity Surveying, University of Johannesburg, Johannesburg, Gauteng, South Africa

    Wellington Thwala

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Amoah, C., Shakantu, W. (2020). Killing What We Intend to Grow: The Challenges of the Local Construction Industry with the Public Procurement Systems in Ghana. In: Aigbavboa, C., Thwala, W. (eds) The Construction Industry in the Fourth Industrial Revolution. CIDB 2019. Springer, Cham. https://doi.org/10.1007/978-3-030-26528-1_12

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-26528-1_12

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-26527-4

  • Online ISBN: 978-3-030-26528-1

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics

Search

Navigation