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

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.