Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems

Joseph Ignatius Teye Buertey; Emmanuel Dadadzogbor; Felix Atsrim

doi:doi:10.11648/j.ajce.20160404.12

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Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems

Joseph Ignatius Teye Buertey, Emmanuel Dadadzogbor, Felix Atsrim

Published in American Journal of Civil Engineering (Volume 4, Issue 4)

Received: 21 April 2016 Accepted: 3 May 2016 Published: 1 June 2016

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Abstract

Procurement is a very important aspect of the chain link process of infrastructural delivery. Through procurement choices in terms of project delivery and construction technology is agreed by key stakeholders. Irrespective of the concomitant challenges of the traditional Design Bid Build (DBB) method of project delivery commonly employed in Ghana, which has been noted for schedule delay, corruption, cost overrun and low quality; project stakeholders still employ this method in the delivery of over 90% of infrastructural project. The purpose of this review is to advance the reasons for the continuous use of the traditional method of procurement, factors hindering the adoption of other procurement methods and explore the possibility of stakeholders embracing other producer-led procurements. As a qualitative based study, the work was based on extensive desktop literature review from journal, periodicals, articles and previous related works. Findings from the study pointed out that the use of the DBB was basically due to familiarity by stakeholders, the small scale of projects executed in Ghana, the competence and capacity characteristics of the local contractor and the form of contract used in the delivery of construction projects. The study concludes that the construction industry in Ghana is not fully ready for a switch to producer-led system as an alternative to DBB since less than 10% of local contractors have the capacity. Again, most of the high profile firms ready for the adoption of DB are foreign-based firms; a switch would disadvantage the local contractor who lacks the necessary capacity. In conclusion, the Ghanaian contractor needs to build capacity in terms of human and technical skills to help position on the right pedestal.

Published in	American Journal of Civil Engineering (Volume 4, Issue 4)
DOI	10.11648/j.ajce.20160404.12
Page(s)	127-142
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Local Contractor, Design and Build, Design Bid Build, Procurement, Designer-Led, Contractor Led, Relationship

References

[1]	Osei-Tutu, E. (1999) Construction Procurement Decision in Ghana. Unpublished MSc Thesis, Department of Building Technology, KNUST-Kumasi
[2]	Kyei, K. A. (2009) Procurement Systems and Project Success in Ghanaian construction industry. Unpublished Masters Thesis, KNUST-Kumasi
[3]	Coles, D. (2009) Lecture Notes on Project Evaluation and Development. HAN University
[4]	Buertey, J. T. I., Asare S. K. (2014), Public Private Partnership in Ghana: A Panacea to the Infrastructural Deficit? International Journal of Construction Engineering and Management 2014, 3(5): 135-143
[5]	Buertey, J. Dadadzogbor E. (2015). The Design and build Procurement system: An elixir of Project failure? (1^st Edition) Lambert Publications.
[6]	Murdoch, J., and Hughes, W. (2008) Construction Contracts, Law and Management. (4^th Edition). London and NY: Taylor & Francis.
[7]	Masterman, J. W. E. (2008) Introduction to Building Procurement Systems. (2^nd Edition). London: Taylor & Francis
[8]	Hackett, M., Robinson, I., and Statham, G. (2007) Procurement, Tendering & Contract Administration. Oxford: Blackwell Publishing
[9]	Abudey, W. (2005) The Use and Effectiveness of Construction Management as a Procurement System in the Delivery of Building Projects on Ghanaian Construction Industry. Unpublished BSc. Thesis, Department of Building Technology. Kwame Nkrumah University of Science and Technology (KNUST)-Kumasi
[10]	Rowlinson, S. (2006) Procurement: Develop and Construct. The Building, February 8, pg 68
[11]	Hughes, W. P. (1992) An Analysis of the JCT D&B Contracts. Chartered Institute of Building (CIOB) Construction Paper, No. 6
[12]	Murdoch, J., and Hughes, W. (2008) Construction Contracts, Law and Management. (4^th Edition). London and NY: Taylor & Francis.
[13]	Engineering and Construction Contracts, (2005) The New Engineering Form of Contracts. (3^rd Edition) (NEC3). Office of Government Commerce, UK
[14]	Kwakye, A. A. (1997) Construction Project Administration in Practice. Addison Wesley
[15]	Hoggs, K. and Morledge, R. (1995) Risks and Design & Build and build: keeping a meaningful perspective, CSM, Monthly, May, 1995, Vol 14, No. 7. 32-33
[16]	Chevin, D. (1996) Keeping up Appearances. The Building, June 14, page 38-41
[17]	Rimmer, B. (1996) Keeping up Appearances. The Building, June 14, pg 38-41
[18]	Siddiqui W. A. (1996) Novation: and its comparison with common forms of procurement. (CIOB) Construction Paper, issue No 60
[19]	Minogue, A. (1999) Clash Points. The Building, (October, 29)
[20]	Ashworth, A. (2008) Pre-Contract Studies, Development Economics, Tendering and Estimating. (3^rd Edition). Oxford: Blackwell Publishing
[21]	Winch, G. M. (2000). Institute reform in the British construction: Partnering and private finance Building research and information, 28, 141-155
[22]	Winter, C. H. H. (2002). On the appropriateness of contractor-led procurement-an investigation of the circumstance and consequences. Von der Fukult Fur Wirtschaftswissschaften der Technischen Universitat Bergakademic
[23]	Adu-Poku, P. O. (2006) Project Management as an Alternative to the Traditional Procurement Method in Project Delivery in Ghana. Unpublished BSc. Thesis, Kwame Nkrumah University of Science and Technology (KNUST) - Kumasi
[24]	Ameyaw, C. (2009) Design and Build verses Design-Bid-Build Method in Ghana. Unpublished MSc. Thesis, Department of Building Technology. Kwame Nkrumah University of Science and Technology (KNUST) - Kumasi
[25]	Articles of Agreement and Conditions of Contract for Building Works (2000). 7^th Edition. (The Pink Form)
[26]	Ghana Government’s Public Procurement Act, Act 663 (2003)
[27]	Kojo, M. A. (2005) Procurement of Contracts in the Informal Sector of the Construction Industry of Ghana. Unpublished BSc. Thesis, Department of Building Technology, (KNUST) - Kumasi

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APA Style

Joseph Ignatius Teye Buertey, Emmanuel Dadadzogbor, Felix Atsrim. (2016). Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. American Journal of Civil Engineering, 4(4), 127-142. https://doi.org/10.11648/j.ajce.20160404.12

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ACS Style

Joseph Ignatius Teye Buertey; Emmanuel Dadadzogbor; Felix Atsrim. Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. Am. J. Civ. Eng. 2016, 4(4), 127-142. doi: 10.11648/j.ajce.20160404.12

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AMA Style

Joseph Ignatius Teye Buertey, Emmanuel Dadadzogbor, Felix Atsrim. Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. Am J Civ Eng. 2016;4(4):127-142. doi: 10.11648/j.ajce.20160404.12

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@article{10.11648/j.ajce.20160404.12,
  author = {Joseph Ignatius Teye Buertey and Emmanuel Dadadzogbor and Felix Atsrim},
  title = {Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems},
  journal = {American Journal of Civil Engineering},
  volume = {4},
  number = {4},
  pages = {127-142},
  doi = {10.11648/j.ajce.20160404.12},
  url = {https://doi.org/10.11648/j.ajce.20160404.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20160404.12},
  abstract = {Procurement is a very important aspect of the chain link process of infrastructural delivery. Through procurement choices in terms of project delivery and construction technology is agreed by key stakeholders. Irrespective of the concomitant challenges of the traditional Design Bid Build (DBB) method of project delivery commonly employed in Ghana, which has been noted for schedule delay, corruption, cost overrun and low quality; project stakeholders still employ this method in the delivery of over 90% of infrastructural project. The purpose of this review is to advance the reasons for the continuous use of the traditional method of procurement, factors hindering the adoption of other procurement methods and explore the possibility of stakeholders embracing other producer-led procurements. As a qualitative based study, the work was based on extensive desktop literature review from journal, periodicals, articles and previous related works. Findings from the study pointed out that the use of the DBB was basically due to familiarity by stakeholders, the small scale of projects executed in Ghana, the competence and capacity characteristics of the local contractor and the form of contract used in the delivery of construction projects. The study concludes that the construction industry in Ghana is not fully ready for a switch to producer-led system as an alternative to DBB since less than 10% of local contractors have the capacity. Again, most of the high profile firms ready for the adoption of DB are foreign-based firms; a switch would disadvantage the local contractor who lacks the necessary capacity. In conclusion, the Ghanaian contractor needs to build capacity in terms of human and technical skills to help position on the right pedestal.},
 year = {2016}
}

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TY  - JOUR
T1  - Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems
AU  - Joseph Ignatius Teye Buertey
AU  - Emmanuel Dadadzogbor
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T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 127
EP  - 142
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20160404.12
AB  - Procurement is a very important aspect of the chain link process of infrastructural delivery. Through procurement choices in terms of project delivery and construction technology is agreed by key stakeholders. Irrespective of the concomitant challenges of the traditional Design Bid Build (DBB) method of project delivery commonly employed in Ghana, which has been noted for schedule delay, corruption, cost overrun and low quality; project stakeholders still employ this method in the delivery of over 90% of infrastructural project. The purpose of this review is to advance the reasons for the continuous use of the traditional method of procurement, factors hindering the adoption of other procurement methods and explore the possibility of stakeholders embracing other producer-led procurements. As a qualitative based study, the work was based on extensive desktop literature review from journal, periodicals, articles and previous related works. Findings from the study pointed out that the use of the DBB was basically due to familiarity by stakeholders, the small scale of projects executed in Ghana, the competence and capacity characteristics of the local contractor and the form of contract used in the delivery of construction projects. The study concludes that the construction industry in Ghana is not fully ready for a switch to producer-led system as an alternative to DBB since less than 10% of local contractors have the capacity. Again, most of the high profile firms ready for the adoption of DB are foreign-based firms; a switch would disadvantage the local contractor who lacks the necessary capacity. In conclusion, the Ghanaian contractor needs to build capacity in terms of human and technical skills to help position on the right pedestal.
VL  - 4
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Author Information

Joseph Ignatius Teye Buertey

Department of Built Environment, Pentecost University College, Accra, Ghana
Emmanuel Dadadzogbor

School of Engineering, Accra Institute of Technology, Accra, Ghana
Felix Atsrim

Department of Built Environment, Pentecost University College, Accra, Ghana

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APA Style

Joseph Ignatius Teye Buertey, Emmanuel Dadadzogbor, Felix Atsrim. (2016). Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. American Journal of Civil Engineering, 4(4), 127-142. https://doi.org/10.11648/j.ajce.20160404.12

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ACS Style

Joseph Ignatius Teye Buertey; Emmanuel Dadadzogbor; Felix Atsrim. Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. Am. J. Civ. Eng. 2016, 4(4), 127-142. doi: 10.11648/j.ajce.20160404.12

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AMA Style

Joseph Ignatius Teye Buertey, Emmanuel Dadadzogbor, Felix Atsrim. Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems. Am J Civ Eng. 2016;4(4):127-142. doi: 10.11648/j.ajce.20160404.12

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@article{10.11648/j.ajce.20160404.12,
  author = {Joseph Ignatius Teye Buertey and Emmanuel Dadadzogbor and Felix Atsrim},
  title = {Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems},
  journal = {American Journal of Civil Engineering},
  volume = {4},
  number = {4},
  pages = {127-142},
  doi = {10.11648/j.ajce.20160404.12},
  url = {https://doi.org/10.11648/j.ajce.20160404.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajce.20160404.12},
  abstract = {Procurement is a very important aspect of the chain link process of infrastructural delivery. Through procurement choices in terms of project delivery and construction technology is agreed by key stakeholders. Irrespective of the concomitant challenges of the traditional Design Bid Build (DBB) method of project delivery commonly employed in Ghana, which has been noted for schedule delay, corruption, cost overrun and low quality; project stakeholders still employ this method in the delivery of over 90% of infrastructural project. The purpose of this review is to advance the reasons for the continuous use of the traditional method of procurement, factors hindering the adoption of other procurement methods and explore the possibility of stakeholders embracing other producer-led procurements. As a qualitative based study, the work was based on extensive desktop literature review from journal, periodicals, articles and previous related works. Findings from the study pointed out that the use of the DBB was basically due to familiarity by stakeholders, the small scale of projects executed in Ghana, the competence and capacity characteristics of the local contractor and the form of contract used in the delivery of construction projects. The study concludes that the construction industry in Ghana is not fully ready for a switch to producer-led system as an alternative to DBB since less than 10% of local contractors have the capacity. Again, most of the high profile firms ready for the adoption of DB are foreign-based firms; a switch would disadvantage the local contractor who lacks the necessary capacity. In conclusion, the Ghanaian contractor needs to build capacity in terms of human and technical skills to help position on the right pedestal.},
 year = {2016}
}

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TY  - JOUR
T1  - Procurement of Developmental Projects in Ghana: A Literature Review of the Designer-Led System Verses the Producer-Led Systems
AU  - Joseph Ignatius Teye Buertey
AU  - Emmanuel Dadadzogbor
AU  - Felix Atsrim
Y1  - 2016/06/01
PY  - 2016
N1  - https://doi.org/10.11648/j.ajce.20160404.12
DO  - 10.11648/j.ajce.20160404.12
T2  - American Journal of Civil Engineering
JF  - American Journal of Civil Engineering
JO  - American Journal of Civil Engineering
SP  - 127
EP  - 142
PB  - Science Publishing Group
SN  - 2330-8737
UR  - https://doi.org/10.11648/j.ajce.20160404.12
AB  - Procurement is a very important aspect of the chain link process of infrastructural delivery. Through procurement choices in terms of project delivery and construction technology is agreed by key stakeholders. Irrespective of the concomitant challenges of the traditional Design Bid Build (DBB) method of project delivery commonly employed in Ghana, which has been noted for schedule delay, corruption, cost overrun and low quality; project stakeholders still employ this method in the delivery of over 90% of infrastructural project. The purpose of this review is to advance the reasons for the continuous use of the traditional method of procurement, factors hindering the adoption of other procurement methods and explore the possibility of stakeholders embracing other producer-led procurements. As a qualitative based study, the work was based on extensive desktop literature review from journal, periodicals, articles and previous related works. Findings from the study pointed out that the use of the DBB was basically due to familiarity by stakeholders, the small scale of projects executed in Ghana, the competence and capacity characteristics of the local contractor and the form of contract used in the delivery of construction projects. The study concludes that the construction industry in Ghana is not fully ready for a switch to producer-led system as an alternative to DBB since less than 10% of local contractors have the capacity. Again, most of the high profile firms ready for the adoption of DB are foreign-based firms; a switch would disadvantage the local contractor who lacks the necessary capacity. In conclusion, the Ghanaian contractor needs to build capacity in terms of human and technical skills to help position on the right pedestal.
VL  - 4
IS  - 4
ER  -

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