Final Work

Table of Contents
CHAPTER ONE.....................................................................................................................................3
INTRODUCTION..........................................................................................................................3
1.0
Background Information.....................................................................................................3
1.1
Research Problem...............................................................................................................6
1.2
Research Question(s)..........................................................................................................7
1.3
Purpose of the study............................................................................................................8
1.4
Research Goal and Objectives............................................................................................8
1.5
Significance of Study..........................................................................................................9
1.6
Limitations of the study....................................................................................................10
1.7
Organisation of the study..................................................................................................11
CHAPTER TWO..................................................................................................................................12
LITERATURE REVIEW..................................................................................................................12
2.1
Introduction.......................................................................................................................12
2.2
Defining Procurement Management.................................................................................13
2.3
Importance of Procurement Management.........................................................................13
2.4
Procurement: Different Points of View.............................................................................14
2.5
Factors Affecting Procurement Management....................................................................15
2.6
The Procurement Management Process............................................................................16
2.6.1
Procurement Planning...................................................................................................18
2.6.2
Solicitation Planning....................................................................................................22
2.6.3
Solicitation....................................................................................................................23
2.6.4
Source Selection............................................................................................................24
2.6.5
Contract Administration................................................................................................25
2.6.6
Contract Close-out........................................................................................................26
2.7
Procurement on a National Level......................................................................................27
2.8
Supply Chain Management (SCM)...................................................................................28
2.9
Conclusion........................................................................................................................31
CHAPTER THREE..............................................................................................................................32
METHODOLOGY...........................................................................................................................32
3.1.
Introduction......................................................................................................................32
3.2
Research design................................................................................................................32
3.3
Population of the study.....................................................................................................33

1
3.4
Sample size and sampling procedure of study...................................................................33
3.5
Administration procedure..................................................................................................38
3.6
Sources of Data.................................................................................................................39
3.7
Data collection instruments..............................................................................................39
3.8
Data handling and analysis................................................................................................40
3.9
Ethical considerations.......................................................................................................40
CHAPTER FOUR................................................................................................................................42
DATA ANALYSIS AND INTERPRETATION.................................................................................42
4.1
Introduction.......................................................................................................................42
CHAPTER FIVE..................................................................................................................................58
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION...............................58
5.0
Introduction.......................................................................................................................58
5.1
Summary of Findings......................................................................................................58
5.2
Recommendations.............................................................................................................60
5.3
CONCLUSION.................................................................................................................62
REFERENCES.....................................................................................................................................63
APPENDIX..................................................................................................................................67
LIST OF FIGURES..............................................................................................................................77
LIST OF TABLES................................................................................................................................78
CHAPTER ONE
INTRODUCTION
1.0
Background Information
Over the years numerous large infrastructure and developmental projects in Accra-Ghana have
stalled or halted. These projects are stopped either due to lack of funds or the project
budget overruns. The owners of these projects are either private individuals,
organisations or the state. These construction projects and facilities such as office
complexes, hospitals, stadia and hotels require huge capital investment. Examples
include the newly built nine-storey Movenpick Ambassador Hotel, the ten-storey
Silver Star Tower office complex and the newly built LEKMA Hospital-Teshie all in
Accra. Some of these projects have also stalled due to improper contractual agreement
and documentations that does not allow new governments to proceed with works
immediately when they take over, such as the Ghana government affordable housing in
Kpone, Nungua and the GETFUND projects for Accra Polytechnic, the University of
Ghana and West Africa Examination Council (WAEC)s Head Office Complex at
Okponglo in Accra (Bagbin, 2011).
A change of government almost always causes state projects to stall in Ghana. This is because
the new governments manifesto promises to the electorates are totally different from
the predecessors. This may be blamed on the lack of a single unified set of national
development policies for Ghana. The transition periods are also not smooth enough to
allow continuity. More so, ministries and departments do not have enough information
on on-going projects.
In recent times, much talk about an affordable housing project, started during the erstwhile
New Patriotic Party (NPP) Government administration in 2007, has been abandoned by the
current Government. In December 2009, the current National Democratic Congress (NDC)
Government entered into a new joint venture agreement with a Korean Investment and
construction company called STX Engineering and Construction Limited. This the State did
by entering into a Public Private Partnership, to develop 300,000 housing units in all the ten
regional capitals of the country. This agreement was later revised on 23rd July, 2010 for the
construction of 200,000 housing units instead of the 30,000 units to begin with. (Bagbin,
2011). The estimated cost of USD 1,300,000,000 for the 30,000 housing units includes the
houses, as well as on-site infrastructure such as: roads, water, electricity, schools and other
related social infrastructures; this is according to a brief report by the Minister of Water
Resources, Works and Housing (MWRWH) to the parliament of Ghana in May 2011 (Bagbin,
2011).
Although the STX project has now come to a standstill, it is obvious that funds available for
such projects will be utilized and spent through procurement activities such as acquisitions,
contracting and outsourcing. Effective procurement requires the utilization of sound business
practices that maximize value to the organization through the acquisition of goods and
4
services (Sollish et al., 2007). The Procurement Departments role is to deliver the right
materials (or services) in the right quantities, to the right place, at the right time, and at the
right price. Unfortunately, it is rare that attention is paid to project procurement management
on building construction projects in Ghana. especially the state funded projects. Project
Procurement Management includes the processes required to acquire goods and services from
outside the performing organization. Procurement represents an operational process which
ensures that the necessary goods in the desired quality, at the desired place, at the desired
time, and at competitive prices are made available. The key project deliverables such as the
final products, completed office complexes, and finishing depends upon effective
management of resource acquisitions and allocations to meeting project timelines and budgets
(Schwale, 2007).
The Government of Ghana is the largest investor in infrastructural projects such as roads,
hospitals, office complexes, schools, communication, electrification and water projects in
Ghana. These constitute about 60 percent of the Governments annual budget according to the
2011 Budget Statement and Economic Policy of the Government. (Duffour, 2010). Therefore,
for all these facilities to be constructed in a timely manner as well as to meet the budget and
the scope requires an effective project procurement management process. This is clearly
crucial in achieving all these projects goals and objectives since the right acquisitions and
contracting must be made (Schwale, 2007).
The acquisition of a constructed facility usually represents a major capital investment,
whether its owner happens to be an individual, a private corporation or a public agency. Since
the commitment of resources for such an investment is motivated by market demands or
perceived needs, the facility is expected to satisfy certain needs within the triple constraints of
1) scope, 2) cost, and 3) time specified by the owner and relevant regulations (Schwale, 2007).
With the exception of the speculative housing market, where the residential units may be sold
as built by the real estate developer, most constructed facilities are custom made in
consultation with the owners. A real estate developer may be regarded as the sponsor of
building projects, just as a government agency may be the sponsor of a public project
although it hands it over to another government upon its completion (Duffour, 2010).
From the viewpoint of project management, the terms "owner" and "sponsor" are synonymous
because both have the ultimate authority to make all important decisions. Since an owner is
essentially acquiring a facility on a promise in some form of agreement, it will be wise for any
owner to have a clear understanding of the acquisition process in order to maintain a firm
control of the scope, time and cost of the completed facility (Schwale, 2007).
The Construction projects and facility can be in various forms such as residential housing
made up of single-family houses, multi-family dwellings, and high-rise apartments.
Institutional and commercial building construction encompasses a variety of project types and
sizes such as: 1) schools and universities, 2) medical clinics and hospitals, 3) recreational
facilities and sports stadiums, 4) retail chain stores and large shopping centres; 5) warehouses;
6) light manufacturing plants, and 7) skyscrapers for offices and hotels (Bagbin, 2011).
It is very important to know that government projects must go through a tendering process in
accordance with the public procurement act, PPA-2003, 663 of Ghana. The private investors,
who are not necessarily construction experts, also go through some procurement processes
such as requests for quotations (RFQ), bidding, and selection of the satisfactory contractor
(Bagbin, 2011).
Despite the fact that most of these projects go through tendering processes, it requires lot of
work to improve and empower procurement participation in monitoring continuous progress
as far as project procurement and its contract management is concerned (Schwale, 2007).
1.1
Research Problem
In many cases in Ghana, project managers are observed to be participating in project

procurement processes. However, because insufficient knowledge in that area, it is only
appropriate that this segment is handled by the specialist procurement team on the project
(Bagbin, 2011).
Project procurement management is not a totally new area. It has been well practiced in some
countries such as India, USA, UAE-Dubai, Italy, Great Britain, etc. (Jenniffer and Stallman,
2009). It is now gradually finding its way to Africa, and to Ghana at such. In project
procurement management, project deliverables are the major components, and products
expected as a result of any project. This is done effectively in coordination with the project
procurement team which ensures that all materials or services are dully delivered to
specification. The Procurement officer is seen in some instances doing few administrative
works on monitoring vendors performance progress and adherence to specifications
(PMBOK, 2008).
In the current trends where supply chain management is dominating these sectors to increase
competitive advantage, it is appropriate to place procurement at a management level to
strategically perform its roles. This will help in delivering projects effectively on time, within
7
scope, and within budget. Any contractual issues and conflicts that may arise from project
procurement will be reduced and managed, or resolved properly (it can delay the supplies to
the project if not managed). Checkpoints, metrics and key performance indicators (KPIs) are
inadequate in most project procurement contracts. At the checkpoints, the KPIs and the
metrics are evaluated against the baseline and trend analysis in order to identify variances. In
this way corrective actions are taken based on the actual metrics rather than hearsay
(PMBOK, 2008).
This paper seeks to investigate the key causes of project failures in Ghana. Specifically, it
seeks to discover cases of how effective acquisitions or procurement was not carried out. In
fact, a project can become successful if only the scope, time, the cost is achieved (Bagbin,
2011). Moreover, after the bottlenecks to procurement are established, best practices for
project procurement will be recommended for implementation. The inadequacy of qualified
procurement professionals to handle project procurements may be a big challenge to Ghanaian
projects, but other challenges are possible.
1.2
Research Question(s)
This research seeks to find answers to the following questions;

1. Are procurement activities considered to be critical to project deliverables in Ghana?
2. Is the procurement officers role significant in project decision-making within the
building construction sector?
3. Are the procurement professionals handling construction projects in Ghana
competently?
4. For procurement activities in Ghana, is there active coordination between different

project team members?
5. How effective is procurement as a project management tool in Ghana?
1.3
Purpose of the study
This research had its genesis from the interest in procurement as an effective tool in achieving
project deliverables to meet requirements, time, and budget. This research will look at what
has been done previously in this area and will also unearth what more should be done in this
area. However, the principal purpose of this study is to obtain an insight into project
procurement management within the public and private construction sectors in Ghana in order
to propose further recommendations for efficient project procurement management.
1.4
Research Goal and Objectives
The main objectives of the study were:

1. To examine the extent to which procurement contributes to deliverables.
2. To evaluate the efficiency of procurement practices in construction projects.
3. To identify and evaluate whether or not procurement professionals possess project
procurement knowledge.
4. To determine the relationship between procurement and project cost control.
1.5
Significance of Study
The fact that only few and relevant studies were conducted in this area of research, this study
unearthed intrinsic information on project procurement, and signalled to the procurement
professionals to be up to the task and also to show how they can contribute to cost saving by
ensuring quality and timely delivery. The study also adds to the body of knowledge within the
9
area of project procurement management. Furthermore, the study provides additional

knowledge to the already existing works done on how procurement enhances project success.
It also made available some best project procurement practices and their related activities with
regard to project sponsors, owners, project consultants and procurement managers.
Procurement involvement is very relevant at the early stages in selecting a consultant through
administering an expression of interest (EOI). At the early stages of strategic planning for a
capital project, an owner often seeks the services of financial planning consultants such as
certified public accounting (CPA) firms to evaluate the economic and financial feasibility of
the constructed facility; particularly with respect to various provisions of the government
regulations and local tax laws which may affect the investment decision (PPA act 663, 2003).
To select the contractors for the execution of the designed project, the procurement
contribution is also very relevant at this stage where procurement processes are administered;
more specifically, National Competitive Tendering (NCT), bidding, evaluation, and selection.
This research will enhance the understanding of the steering mechanisms in large complex
technical projects procurement, and the factors, such as available competence and experience,
that influence the procurement process.
A better understanding facilitates decision making and, ultimately, leads to better project
results. Decision making is about making the very best and most correct decision as often as
possible; and it is in the initial phases of a procurement project that decisions must be made.
Not making any decision is never an alternative, even if more and or better information is
required. It is at the initial stage of procurement that a need for methods and techniques to
handle uncertainty exists. With that said, this study provides insight into the needed tools for
10
better decision making in the critical initial stages of conducting procurements for complex
construction projects.
Lastly, the study also gives some guidelines for how to organise project procurements and
what competencies that may be needed.
1.6
Limitations of the study
To be able to gather enough data on this research required ample time; and time was not
adequate to reach all the chosen populations. The Literature review indicated that secondary
data was quite scanty for this problem, hence, lots of effort was put into gathering and
analysing these few pieces of literature. The collections of primary data, via questionnaire
administration, as well as interviews were quite difficult since the majority of the sampled
population did not have much information on this area of the study.
The cost of printing materials and the transportation to various respondents at different times
and in different locations posed as a very huge hindrance to this research. In fact, the majority
of the project sponsors and owners were not readily available to respond to some of the
critical questions.
In the government funded projects, such as the GETFUND projects, the top management felt
reluctant to answer the administered questionnaires. The beneficiary institutions did not also
have much knowledge regarding their projects since they were not involved in the decision
making aspect. Lastly, key vendors and suppliers to these projects were not adequately
equipped with enough documentation for references.
11
1.7
Organisation of the study
The study is divided into five chapters.
Chapter One comprises the: of the: 1) Background Information, 2) Research Problem,

3) Research Questions, 4) Purpose of the Study, 5) Research Goals and Objectives, 6)
Significance of the Study, 7) Limitations of the Study and
8)
Organization of the Study.
Chapter Two comprises of the Literature Review.
Chapter Three is made up of the Methodology and the Study Area Profile.
Chapter Four comprises of the Presentation and Analysis of Data.
Chapter Five contains the Summary of Findings, Recommendations for the Study, as
well as the Conclusion.
12
CHAPTER TWO
LITERATURE REVIEW
2.1
Introduction
Throughout the years, procurement management has been regarded as a key component in
supply chain management (SCM). Moreover, the procurement practices of firms during their
project execution phases have had huge implications on their project deliverables, and hence,
the overall success of their projects (Ward, 2008).
Traditionally, procurement was a function viewed by many as a simple clerical and reactive
task. However, in more recent times, it has been positioned among the core organizational
functions such as marketing, accounting, human resource management, etc. As a matter of
fact, its management is becoming increasingly critical to the well functioning of most
organizations in more recent times (Basheka, 2005). The success of procurement is often
imperative for a company in order to stay ahead of competition. In other words, if the
procurement does not succeed, then the company faces the risk of not succeeding as well
(Eriksson, 2005).
The enormity of procurement activities is one of the greatest challenges confronting many
organizations today; especially in its bid at coordinating the supply of key components to
match the demand for a product (Chung-Yee et al., 2008). Fortunately for most companies,
procurement management has emerged as a discipline that aims to smoothen out the
uncertainties in the project initiation, planning, implementation and evaluation processes
(What is Procurement, n.d.para. 1).
13
This section of the study will review literature that dealt with the issue of procurement
management and project deliverables. More specifically, studies relating to:
2.2
Defining Procurement Management

Importance of Procurement Management
Procurement: Different Points of View
Factors Affecting Procurement Management
The Procurement Management Process
Procurement on a National Level
Supply Chain Management (SCM)
Defining Procurement Management
Before delving into the different aspects of procurement management, it is first important to
explain what the term actually means. First off all, procurement is defined as the acquisition
and supply of goods necessary for the production and utilization of the products of an
enterprise (Marino, 2003). Procurement management, moreover, is the actual process
organizations go through for ensuring the procurement of resources from their suppliers (PMI
2008).
2.3
Importance of Procurement Management
When speaking of the importance of procurement management, Ward (2008) first indicates
how procurement management has the ability of reducing some of an organizations major
costs (mainly production and total acquisition costs). Moreover, that this decrease in costs
usually translates into increased profit for many organizations. Lastly, he explains how
approximately 40 percent of the total costs of major engineering and construction projects is
spent on the procurement of materials and equipment. And moreover, how this percentage is
14
even higher for civil engineering works where the cost of materials can go for as high as 65
percent. If one examines this point alone, there will be no question of how necessary it is for
an organization to control its procurement process, and also to manage it at the best value for
money spent.
Moreover, apart from the improved financial situation of the company, Kerkhoff (2005) also
indicates how effective procurement management can also contribute to a firms research and
development (R&D) and manufacturing processes optimization. Lastly, Cousins et al (2008)
states that procurement management highly affects the strategic development of an
organization. These are among the most prominent benefits of procurement management.
2.4
Procurement: Different Points of View
There are most likely more important aspects of procurement management than those that
were covered in Section 2.3.
Thus, to gain a better insight into them, one must first
understand the points of view of the major parties involved in the procurement management
process; namely, i) the client and ii) the supplier.
From a Client Point of View:

Usually, the vast amounts of money spent on these procurement projects are considerable
compared to the revenue earned. Hence, the project manager feels that he/she must succeed.
Nonetheless, when it comes to procurement management, it is often difficult to define exactly
what total success or total failure entails. Most projects end up in between these two options
the company is able to stay in business, but in retrospect the project could have been managed
more efficiently (Eriksson, 2005).
15
Eriksson (2005) concludes that in the long run, the decision to go forward with the investment
is often necessary for the company to stay competitive. The reasons for this may be because of
a, 1) need to improve quality, 2) increase the delivery security, or 3) increase productivity;
which then forces the client to make an investment.
From a Supplier Point of View:

Eriksson (2005) mentions that most of the time, suppliers must successfully meet or even
exceed the needs and expectations of their clientele. As such, they have the difficult task of
interpreting and transforming the request for proposal from the clients into a functional,
technical system. With that said, successful suppliers must be able to satisfy the client using a
reasonable amount of effort that has been put into the project.
2.5
Factors Affecting Procurement Management
In line with the importance of procurement management, a study was conducted which found
some factors that had an effect on its degree of importance.
The original intention of
Villanyi (2010)s study was to examine the procurement management of the vegetable and
fruit processing enterprises in the Northern Plain region of Hungary. Moreover, to reveal the
development processes available in that particular industry.
Furthermore, in the study, it was discovered that the importance of procurement management
in the corporate operation of vegetable and fruit processing companies mostly depended upon:
i) the companys total annual turnover; ii) the number of staff; and iii) the size of the
organization. This implies that, the larger the company, the larger the role of the procurement
16
function. Additionally, companies with a higher processing capacity, turnover, and staff
number were felt to most likely consider the applied strategy of procurement as indispensable.
In order to determine whether or not these factors were standard for all industries, other
studies were sought after. However, none were found. Therefore, the question still remains
concerning whether or not company size, processing capacity, turnover, and staff number are
all standard indicators of the importance of the procurement function in any industry.
On the other hand, Kimani, (2011)s study concentrated on the factors which affected the
efficiency (rather than the importance) of the procurement management process.
More
specifically, the main objective of his study was to identify the factors that affected the
procurement function of supermarkets in Nairobi in terms of how well they delivered
efficiency and effectiveness to the organization.
Through the study, it was discovered that i) staff skills, ii) the use of proper material storage,
iii) the application of proper ICT in procurement, and iv) the use of proper lead times
contributed significantly to the success of the procurement function.
In addition, Juzokaite et al (2009)s study involving pharmaceutical manufacturing companies
found that supplier relationship management had an important effect on efficiency. Lastly,
Dimitri, et al (2006)s study found that the design of the procurement management system
also had a major effect on the companys performance in both the short and long run.
2.6
The Procurement Management Process
Looking at the importance and effects of procurement management is not enough. Before one
can even gain an understanding of how to control or fine-tune the process, he or she must first
understand what the whole process entails. With that said, it is important to keep in mind that
17
the project procurement process can be divided into many stages. Moreover, it is not only
possible, but also recommended, to properly define in advance what must be accomplished in
each stage (Eriksson, 2005).
According to Quentin (2003), Project procurement management begins at the point
when the new project is initiated and detailed decisions are starting to be made as to
what portion of the project will be performed with ones own staff, and what
portion will be sent to another company for performance (Quentin, 2003).
Furthermore, PMBOK (2008) states that procurement management includes the processes
required to acquire goods and services from outside the performing organization; namely:
Procurement Planning- determining what to procure and at what time to procure it;
Solicitation Planning- documenting product requirements and identifying potential
sources;
Solicitation- obtaining quotations, bids, offers, or proposals as deemed appropriate;
Source Selection- choosing from among potential sellers;
Contract Administration- managing the relationship with the seller; and
Contract Close-out- the completion and settlement of the contract, including resolution
of any open items.
These processes interact with one other and with the processes in other knowledge areas as
well. Each process may involve effort from one or more individuals or groups of individuals
based on the needs of the project. Lastly, although the processes are presented here as distinct
elements with well-defined boundaries, in practice, they may overlap and interact in ways not
covered in this review (PMBOK 2008).
18
2.6.1
Procurement Planning
Procurement planning is the process of identifying which project needs can be best met by
procuring products or services outside the project organization (Newell, 2002).
Four different types of procurement plans are prepared simultaneously: according to Burnt
and Pinkerton (1996), the internal purchasing department operating plan, the material buy
plans for the next operating period, future strategic plans, and special projects. Another
common way of designating plans is strategically and tactically. Strategic plans are usually
long range, perhaps five years out, and represent broad objectives. They involve consideration
of: i) whether to procure, ii) how to procure, iii) what to procure, iv) how much to procure,
and v) when to procure it (PMBOK, 2008). Furthermore, procurement planning is one of the
major functions of procurement that has the potential of contributing to the success of
organizational operations and improving overall service delivery (Newell, 2002).
In addition, it sets in motion the entire acquisition and procurement process of organizations
and local governments (Basheka, 2005). This generally includes: i) deciding whether there is a
need for the particular goods or services; ii) ensuring that the purchaser has the legal powers
to undertake the transaction; iii) obtaining any relevant approvals within the organizational
hierarchy; and iv) arranging the necessary funding (Arrowsmith et al, 2000).
When an organization procures goods and services from outside its confines, the processes
from solicitation planning through contract close-out will most likely be performed once for
each product or service item. On the other hand, when it does not, these processes will not be
repeated. The latter often occurs in research and development projects when the performing
organization is reluctant to share project technology. It can also be in smaller, in-house
19
projects where the cost of finding and managing an external resource may exceed the potential
savings (PMBOK 2008).
The project life cycle also determine the need for procurement and its management in the
entire life of the project. The acquisition of a constructed facility usually represents a major
capital investment; whether its owner is an individual, a private corporation or a public
agency. Since the commitment of resources for such an investment is motivated by market
demands or perceived needs, the facility is expected to satisfy certain objectives within the
constraints specified by the owner and relevant regulations, (Hendrickson, 2000).
From the owners perspective, the project life cycle (PLC) for a constructed facility may be
illustrated schematically in Figure 2.1:
Figure 2.1: Project Life Cycle for a Constructed Facility
20
Source: Chris Hendrickson, 2000. Project Management for Construction

Inputs to Procurement Planning:
21
1) Scope statement describes the current project boundaries and provides important
information about project needs and strategies that must be considered during
procurement planning;
2) Product description provides important information about any technical issues or
concerns that would need to be considered during procurement planning;
3) Procurement resources the resources that support project procurement activities;
4) Market conditions- the procurement planning process must consider i) what products
and services are available in the marketplace, ii) from whom, and iii) under what terms
and conditions (PMBOK 2008).
Outputs from Procurement Planning:
Procurement management plan describes how the remaining procurement processes

will be managed. It answers the questions:
What types of contracts will be used?
Will independent estimates be needed as evaluation criteria? If so, who will

prepare them and when?
Will standardized procurement documents be needed? If so, where can they be

found?
Will multiple providers be managed?
How will procurement be coordinated with other project aspects such as

scheduling and performance reporting (PMBOK, 2008).
22
Statement of work describes the procurement item in sufficient detail to allow

prospective sellers to determine if they are capable of providing the item (PMBOK,
2008).
2.6.2 Solicitation Planning

Solicitation planning involves preparing the documents needed to support solicitation.
Inputs to Solicitation Planning:

1) The procurement management plan;
2) Statements of work;
3) Other planning outputs which may have been modified from when they were
considered as part of procurement planning should be reviewed again as part of
solicitation. In particular, solicitation planning should be closely coordinated with the
project schedule (PMBOK 2008 ).
Outputs from Solicitation Planning:
Procurement documents which are used to solicit proposals from prospective sellers;
The terms bid and quotation are generally used when the source selection
decisions will be price-driven; whereas, the term proposal is generally used
when non-financial considerations such as technical skills or approach are
paramount (PMBOK, 2008).
23
Evaluation criteria used to rate or score proposals:
They may be objective or subjective. Evaluation criteria are often included as

part of the procurement documents. Evaluation criteria may often be limited
to purchase price if the procurement item is known to be readily available
from a number of acceptable sources. When this is not the case, other criteria
must be identified and documented to support an integrated assessment.
Examples consist solely of the contract (PMBOK, 2008).
2.6.3
Understanding of need as demonstrated by the sellers proposal;

Overall or life cycle cost;
Technical capability;
Management approach; and
Financial capacity (PMBOK, 2008).
Solicitation
Solicitation involves obtaining information from prospective sellers on how project needs can
be met. Most of the actual effort in this process is expended by the prospective sellers;
normally at no cost to the project (PMBOK 2008).
Inputs to Solicitation:
1) Procurement documents, and
2) Qualified seller lists.
If such lists are not available, the project team will have to develop its own
sources (PMBOK, 2008).
Outputs from Solicitation:

24
1) Proposals seller-prepared documents that describe the sellers ability and willingness
to provide the requested product. They are prepared in accordance with the
requirements of the relevant procurement documents (PMBOK, 2008).
2.6.4
Source Selection
Source selection involves the receipt of bids or proposals and the application of the evaluation
criteria in order to select a provider. This process is notorious for being seldom
straightforward (PMBOK, 2008).
Inputs to Source Selection:

1) Proposals;
2) Evaluation criteria;
3) Organizational policies (PMBOK 2008).
Outputs from Source Selection:
A mutually binding contract which obligates the seller to provide the specified product
and obligates the buyer to pay for it (Project Management Institute, 2008).
2.6.5
Contract Administration
Contract administration is the process of ensuring that the sellers performance meets
contractual requirements. This process includes the application of the appropriate project
management process to the contractual relationship(s) and integration of the outputs from
these processes into the overall management of the project (PMBOK, 2008).
25
Inputs to Contract Administration:
Contract;
The sellers work results;
Change requests- may include modifications to the terms of the contract or to the
description of the product or service to be provided;
Sellers invoices- the seller must submit invoices from time to time to request payment
for work performed (PMBOK, 2008).
Outputs from Contract Administration:

1) Correspondence- contract terms and conditions often require written documentation of
certain features of buyer/seller communications (i.e. warnings of unsatisfactory
performance, contract changes or clarifications);
2) Contract changes- changes are routed back through the appropriate project planning
and project procurement processes, and the project plan or other relevant forms of
documentation are updated as appropriate;
3) Payment requests- this assumes that the project is indeed using an external payment
system (PMBOK, 2008).
2.6.6
Contract Close-out
Contract close-out refers simply to the finalization and delivery of the procurement contract
(PMBOK, 2008).
Inputs to Contract Close-Out:

26
1) Contract documentation includes the contract itself along with i) all supporting
schedules; ii) requested and approved contract changes; iii) any seller-developed
technical documentation; iv) seller performance reports; v) financial documents such
as invoices and payment records; and vi) the results of any contract-related inspections
(Project Management Institute, 2008).
Outputs from Contract Close-Out:

1) Contract file a complete set of indexed records included with the final project
records;
2) Formal acceptance and closure formal written notice that the contract has been
completed from the person or organization responsible for contract administration
(Project Management Institute, 2008).
2.7
Procurement on a National Level
In addition to procurement on an organizational level, it is also important for one to

understand some fundamentals concerning procurement on a national level so as to be able to
compare and contrast the two. On a national level, developing countries have come to realize
the importance of the effective management of the public procurement process (Basheka,
2005). This is because of the fact that all government departments charged with providing
services are all dependent on this process. With this in mind, reforming and strengthening
systems of public procurement must be given a high priority in the efforts to improve systems
27
of government, especially in African countries (Kabaj, 2003). And since the study takes place
in Ghanaan African countryit is of benefit to further explore this point.
When speaking of African countries, it is important to note that poor governance has been one
of the major obstacles blocking their economic development. It has also been obvious that a
substantial number of these countries have not paid adequate attention to the proper
management of public resources. With that being said, an efficient public procurement system
is one of the paramount factors to the advancement of these countries (Kabaj, 2003). In
Uganda, for instance, there has been a recent upsurge in the interest concerning the
management and planning of public procurement.
As a matter of fact, it is now even
appearing on the agenda of researchers, academics, policy makers, and practicing managers
(Basheka, 2005).
Furthermore, the significance of public procurement reform for developing countries is
increasingly being appreciated
by development agencies globallyrecognizing that the
social and economic costs of the weaknesses in public procurement governance are
compounded by increases in sovereign risk that this represents for foreign investment (Jones,
2002).
2.8
Supply Chain Management (SCM)
Over the past decade, there has been an increasing emphasis on supply chain management as a
tool through which firms can achieve competitive advantage in their respective industries
(Collin, 2003). The success of a project mostly depends upon the timely, accurate, quality, and
cost-effective delivery of materials, systems and facilities. There are many stakeholders,
contractors, and suppliers involved in a project. Thus, supply chain management
28
methodologies and processes are critical to ensuring that project resources are delivered as
required (Basu, 2011).
A primary objective of supply chain management is to optimize the supply capacity to fulfil
demand at any particular point in time (Basu, 2011). The scope of the supply chain spans the
entire set of organizations from procurement of material and product components to the
delivery of the completed product to the final customer (Scharry, 1998). Since it also involves
procurement activities, supply chain management is an important subject to look at.
A supply chain is defined as a set of three or more entities (organizations or individuals)
directly involved in the upward and downward movements of products, services, finances,
and/or information from a source to a customer. This may include internal divisions of a
company or external suppliers that provide input to a company. An interesting fact is that a
supplier for one company may as well have its own set of suppliers that provide input to them,
thereby resulting in the existence of multiple tiers of suppliers (Klemencic, 2006). In the
context of a major project, supply chain management can experience additional risks
appearing from these multiple tiers of suppliers as well as the intended linear process
becoming unreliable. In order to prevent this, there are certain skills and tools of supply chain
management that form essential support elements of project management (Basu, 2011).
Project procurement is often considered by many to be the focal point of a project supply
chain. The procurement activities in projects have two main subdivisions:
1) The buying of materials; and
2) The placing of contracts with suppliers and contractors. Hence, procurement and
supplier focus are interconnected (Basu, 2011).
29
For the project supply chain, the procurement of external capacity and resources can include:
1) construction materials; 2) part built-up assemblies; 3) contracting out utilities and
maintenance; 4) hiring casual labour; 5) selecting approved suppliers; and 6) outsourcing.
Furthermore, the selection of appropriate or preferred suppliers should definitely involve
alternative and complementary attributes between those suppliers and the receiving
organization (Basu, 2011).
There are supply chain building blocks in total supply chain management. These building
blocks consist of nine components:
1) Customer focus and stakeholders;
2) Resources and time management;
3) Procurement and supplier focus;
4) Supply management;
5) Building and installation;
6) Handover and closure;
7) Systems and procedures;
8) Regular reviews;
9) Quality and performance management (Basu, 2011).
In fact, the first six of these are for supply chain configuration, and the last three are for
supply chain integration. These building blocks will be applicable, to a varying degree, to all
types and strategies of supply chains. This is even regardless of whether they are in:
1) A major infrastructure project,
2) A change management project, or
30
3) An information technology project.

Basu (2011) insists that supply chain management building blocks and integrating methods
are absolutely necessary to ensuring that project materials and resources arrive as required,
thereby ensuring the success of a project.
The prominence of procurement in the Supply Chain Management hierarchy can be captured
in the definition of the SCM as given by the Council of SCM professionals (CSCMP, 2011).
They define SCM as follows:
Supply Chain Management encompasses the planning and management of all activities
involved in sourcing and procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with channel partners, which can
be suppliers, intermediaries, third-party service providers, and customers. In essence, supply
chain management integrates supply and demand management within and across companies
(CSCMP, 2011).
From the definition, it is evident that SCM have sourcing and procurement as integral
activities. This further involves the coordination and collaboration of suppliers,
intermediaries and other service providers. In essence procurement management involves
the expert coordination of these forces in order to provide the logistics in achieving project
deliverables (CSCMP, 2011).
2.9
Conclusion
Apart from properly defining the term procurement management, another key contribution of
the Literature Review was that it was able to provide an overall understanding of its
31
importance with regard to the clients (organizations) point of view. This is mainly due to the
fact that no studies were found which were conducted with regard to the suppliers point of
view. In addition to this, some factors affecting the degree of importance of procurement
management and its efficiency were also looked at. However, it was not clear whether these
factors concerned all industries or the industries to which the studies concentrated on.
Another important feature critically examined was the whole procurement process starting
from solicitation planning through contract close-out. The Literature Review then took a brief
look at the importance of procurement on a national level as opposed to on an organizational
level. Lastly, the research gave a broader picture of procurement management by examining
the overall supply chain management of an organization.
CHAPTER THREE
METHODOLOGY
3.1.
Introduction
The methodology of the study focuses on the research methods employed in collecting data
for the study. These include the research design, the population, sample and sampling
32
procedure, sources of data, administration procedure and the procedure for data collection.
Ethical considerations and data analysis have also been detailed here.
3.2
Research design
According to Stangor (2007), the basic research methods consist of descriptive research
designs, correlation research designs and the experimental research designs. The descriptive
research designs consist of surveys and interviews, naturalistic or field observations.
Considering all the above forms of research methods, taking into account their respective
advantages and disadvantages, and given the fact that opinions, feelings and reactions are not
easily amenable to field the survey was considered appropriate. This is with the fact that the
research work is seriously constrained by time and the availability of funds. The survey
research is the best method to describe the characteristics, perceptions and preferences of
investors, owners, project consultants and procurement experts in the study. In addition, it
enables a specific coverage area, giving respondents the opportunity to critically analyze the
issues under study from both the organizational and personal points of view (Stangor, 2007;
Opoku, 2007).
3.3
Population of the study
A research population is generally a large collection of individuals or objects that is the main
focus of a scientific query (Opoku, 2007). A research population is also known as a welldefined collection of individuals or objects known to have similar characteristics. All
individuals or objects within a certain population usually have a common, binding
characteristic or trait (Appiah-Agyekum, 2006). The population was selected in order to
achieve the research objective; which are:
33
To examine the extent to which procurement contributes to deliverables

To identify and evaluate procurement participation in projects and
To identify and evaluate if the procurement professionals have project procurement
knowledge.
With that in mind, the defined population FROM WHICH THE SAMPLE SIZE of fifty (50)
were workers on the Silver Star Tower in Airport City which is owned by Japan Motors Group
and the Ministry of Roads and Transport Office Building Complex. Participants in the
building of this project, including the contractors, suppliers, consultants and architects formed
the working population for the study.
3.4
Sample size and sampling procedure of study
According to Stangor (2007) sampling is selection of people to participate in a research

project, usually with the goal of being able to use these people to make inferences about a
larger group of individuals. It can be deduced from this definition that a sampling process
pre-supposes the existence of a population from which the sample will be drawn.
The sample for the study was chosen from two (2) main constructed facilities in Accra, one
being a private sector funded and the other being a public sector or state funded project.
According to Table 3.1, these are the Silver Star Tower which is owned by Japan Motors
Group and the Ministry of Roads and Transport which is owned by the Government of Ghana.
It must be emphasized here that these projects are all completed.
Table 3.1: Projects sampled for the study
Project Name Location
Client/Owner Type of Project
Silver Star Tower, Airport City
Status
Japan Motors Grp. Office Complex 100% Completed
34
Min. of Roads and Transport, Ministry State(GOG), Office Building
100% Completed
Source: Researchers Fieldwork 2012

These building and construction projects were selected with the purposive or the judgmental
sampling method, meaning that the projects that will serve the purpose of this study were
selected for the study. The pictures of the chosen projects are below;
Source: Researchers Field Work 2012, Ministry of Roads and Transport Office Complex
(WIP)
35
Source: Field Work 2012, Min. of Roads and Transports office complex
The Silver Star Tower at Airport City represents the privately sponsored project;
36
S
ource: Silver Star Tower Ltd. (WIP) 2004
37
Source: Field work, 2012
38
This non-probability sampling method was employed in accordance with observation of

Stangor (2007) that when dealing with populations that are difficult to get a sampling frame or
we cannot guarantee the accuracy of the sampling frame, and then we have to use the nonprobability sampling method.
The total sample for the study was fifty (50) which included Six (6) people from each project
team, three (3) contractors, two (2) stakeholders, one (1) each vendors and two (2) Consulting
firm for both private and state construction projects. The respondents were selected with the
purposive sampling method.
3.5
Administration procedure
Introductory letters were submitted to the selected projects and sample population sizes,
craving their indulgence to allow the researcher to gather the data for analysis. The letter
explained to these institutions that the information being sought will be for academic purpose
only and hence would not attract any financial commitments or rewards. The responding
institutions were also assured that the information disclosed will be for academic purposes
alone. After acceptance was granted, the researcher booked appointments with the responding
institutions and administered the questionnaires according to the purposive sampling method.
Since this were completed projects, some of the respondents, especially the suppliers,
consultants, architects, engineers had to be traced wherever they were and interviewed.
Needless to say, this was an onerous task and it negatively affected the duration of the project,
besides doing the initial budget envisaged to the enough to complete the project.
39
3.6
Sources of Data
The methodology applied by the study has been chosen in order to acquire information and
deduce conclusions about the procurement management as effective tool in project
deliverables. For the purpose of this research, and in order to achieve the objectives, data were
collected from both primary and secondary sources.
The secondary data contributed to the effective construction of the background of the study as
well as the literature review, upon which the discussion of the study was done. The secondary
data were gathered from books, journals articles, PMI articles, and magazine articles.
The primary data were collected in two ways. Firstly, a survey questionnaire was designed
and administered to stakeholders, being project sponsors or financiers, project procurement
specialist, suppliers and vendors, funding agencies and project managers on the two projects
captured in Table 3.1. Secondly, information observations and interviews were carried out
with vendors, contractors and services providers such as consultants and these were featured
in the analysis where the need arose. It must be emphasized that it is difficult to couch these
observations and interviews in a formal research format since they were not the main medium
of data collection.
3.7
Data collection instruments
A questionnaire was designed to solicit the primary information for the study. It was designed
to satisfy the objectives of the study as well as address the issues raised in the problem
statements. The questionnaire featured both close and open ended questions. The closed
40
ended questions enabled the researcher to direct the respondents towards the desired responses
whiles the open ended questions gave respondents the opportunity to express themselves,
without any restrictions. Appiah-Agyekum (2006).
3.8
Data handling and analysis
The data for the study was analyzed quantitatively. The Statistical Package for Social Sciences
(SPSS) software and Microsoft Excel were employed towards this end. The SPSS provided
information about the nature and meaning, as well as, the trend of the data. This software was
deployed in the bid to save time since the alternative, a manual analysis, besides wasting time,
is also wrought with avoidable mistakes. Towards this end, frequency tables, bar graphs and
pie charts were generated to help organize the data. These tables and bar graphs were later
interpreted and discussed in chapter four of this study.
3.9
Ethical considerations
Ethical considerations were adhered to in this study. Ethical issues such as confidentiality,
personal data protection, consent and respect of research respondents or subjects were
religiously observed.
Respondents, as well as their institution were, assured of confidentiality and personal data
protection of any information disclosed. Also, respondents consent was sought before
questionnaires were administered to them.
41
Figure 1: General organizational Chart of selected projects
42
Source: Researchers Fieldwork
CHAPTER FOUR
DATA ANALYSIS AND INTERPRETATION
4.0 Introduction
The broad objective of the study was to make a systematic effort to ascertain information
regarding the purpose, benefits and problems of procurement management in achieving
project deliverables. Furthermore, to provide relevant recommendations for improving project
procurement processes.
This chapter focuses on the analysis of the data gathered from the field. Two batches of
questionnaires were distributed to fifty (50) respondents within the construction and building
projects industry.
43
4.1 Clients Firm/Suppliers Questionnaire

The Clients Firm questionnaires were distributed to fifty (50) respondents. Of the fifty (50)
distributed, forty (40) (or 80%) were recovered. In the case of the Suppliers questionnaires,
of the fifty (50) distributed, forty-four (or 88%) were recovered.
Figure 4.1: Clients Firm Questionnaire Response Rate
Source: Fieldwork, 2012
Section A: Demographic Information

44
The following is an analysis of Section A of the questionnaires. This section deals with the
respondents demographic information. Different questions were asked to establish the biodata of respondents.
They included respondents gender, age, and education level. The
analyses have been illustrated below.

According to Figure 4.2, 70% (28) of the respondents of the Clients Firm questionnaire were
male, whereas, 30% (12) were females. For the Suppliers questionnaire, 68% (30) were male,
whereas, 32% (14) were female.
Figure 4.2: Gender of Respondents
45
According to Figure 4.3, in the case of the Clients Firm questionnaire, 10% (4) of the
respondents were between the ages of 26 and 35; 75% (30) were between the ages of 36 and
50; and 15% (6) of the respondents were over the age of 50.
In the case of the Suppliers questionnaire, 5% (2) of the respondents were between the ages of
26 and 35; 45% (20) were between the ages of 36 and 50; and 50% (22) were over the age of
50.
Figure 4.3: Age of Respondents

46
According to Table 4.1, with regard to the Clients Firm questionnaire, 28% (11) of the
respondents were graduates; 47% (19) of the respondents were post-graduates; and 25% (10)
of the respondents possessed professional certifications.
In the case of the Suppliers questionnaire, 85% (37) of the respondents were graduates; 12%
(5) of the respondents were post-graduates; and 3% (2) of the respondents possessed
professional certifications.
Table 4.1: Education Level of Respondents
Variables
MSLC
SSS/WASSCE
Vocational Skills
Graduate
Post-Graduate
Professional
Other
Frequency
0
0
0
11
19
10
0
Total
Percentage
(%)
0
0
0
27.50
47.50
25.00
0
100
47
Section B: Company Information

Figure 4.4 deals with how many years the respondents companies had been in operation. For
the Clients Firm questionnaires, 10% (4) selected 0 5 years; 45% (18) selected 6 10 years;
0% (0) selected 11 15 years; and lastly, 45% (18) selected 16 years and above.
For the Suppleirs questionnaires, 7% (3) selected 0 5 years; 32% (14) selected 6 10 years;
30% (13) selected 11 15 years; and lastly, 31% (14) selected 16 years and above.
Figure 4.4: Respondents Companies Years of Operation
48
Figure 4.5 deals with which sector the respondents companies were in. In the case of the
Clients Firm questionnaire, 43% (17) of the respondents chose the public sector, whereas,
57% (23) chose the private sector. This may indicate that firms in the private sector are more
involved in the procurement of goods from outside organizations. A reason for this might be
due to their having to be self-sufficient, unlike the public sector where they can lean on the
Government.
On the other hand, in the case of the Suppliers questionnaires, 100% (44) chose the private
sector, whereas, 0% (0) chose the public sector.
Figure 4.5: Sector of the Respondents Companies
49
Section C: Employment Information

The following is an analysis of Section C of the questionnaire. This section dealt with the
respondents employment information.
Figure 4.6 portrays how many years the respondents had been working with the organization
in question. In the case of the Clients Firm questionnaire, 10% (4) had been working for 0 4
years; 30% (12) for 5 8 years; 48% (19) for 9 12 years; and 12% (5) for 13 years and over.
With regard to the Suppliers questionnaire, 1% (1) had been working for 0 4 years;
65% (29) for 5 8 years; 33% (15) for 9 12 years; and 1% (1) for 13 years and over.
Figure 4.6: Years of Employment

50
Table 4.2 deals with the respondents positions within their respective companies (Clients
Firm questionnaire).
5% (2) selected Managing Director; 3% (1) selected Principal
Consultant; 5% (2) selected Partner; 3% (1) selected Architect; 10% (4) selected
Marketing Manager; 12% (5) selected General Manager; 62% (25) selected Other. In the
case of Other, some of the
positions respondents specified were: Accounts Manager,
Draftsman, Auditor, Designer, Mechanical Engineer, Electrical Engineer.

In the case of the Suppliers questionnaire, 5% (2) selected Managing Director; 3% (1)
selected Principal Consultant; 5% (2) selected Partner; 3% (1) selected Architect; 10%
(5) selected Marketing Manager; 12% (6) selected General Manager; 62% (27) selected
Other. In the case of Other, some of the positions respondents specified were: i) Project
Manager, ii) Accounts Manager, iii) Draftsman, iv) Designer, v) Mechanical Engineer, and
vi) Electrical Engineer.
Table 4.2: Respondents Positions within their Companies
Variables
Managing
Director
Principal
Consultant
Partner
Architect
Marketing
Manager
General Manager
Other
Total
Frequency
Percentage
(%)
1
2
1
3
5
3
4
5
25
10
12
62
40
100
51
Section D: Procurement Contributions to Project Deliverables

According to Figure 4.7, with regard to whether procurement was regarded as one of the core
functions of the respondents organizations, 33% (13) chose Yes and 67% (27) chose No
(Clients Firm questionnaire). This could mean that more companies have been improving
upon their planning, and thus have made available the majority of the materials/resources that
they need for business. Or rather, that the organizations are more service-oriented and rely less
on outside materials/resources.
As far as the Suppliers questionnaire was concerned, they were asked whether provision of
service or supplying was regarded as one of the core functions in their organization. 100%
(44) chose Yes and 0% (0) chose No.
Figure 4.7: Procurement as a Core Function of the Respondents Organizations
52
Table 4.3 shows the results gathered when respondents were asked the main types of items that
their organizations procured. [98% (39) of the respondents indicated tools and equipment;
90% (36) of the respondents indicated plant and machinery; 68% (27) of the respondents
indicated building materials; 99% (38) of the respondents indicated Labour; 90% (36) of
the respondents indicated Construction Hardware; 70% (28) of the respondents indicated
Building Substances; and 62% (15) of the respondents indicated Literature. It should be
noted that on some of the respondents questionnaires, some fields were left blank.]
It appears that for a lot of the companies, they appear to be procuring machinery and
equipment.
This is quite strange because, on average, to avoid excessive costs, many
companies would rather lease machinery/equipment than to buy it.
Table 4.3: Main Types of Items that the Respondents Organizations Procured
53
Variables
Tools and Equipment
Plant and Machinery
Building Materials
Labour
Construction
Hardware
Building Substances
Literature
Total
Frequency
39
36
27
38
Percentage
(%)
98
90
68
99
36
28
15
90
70
62
219
577
As for Suppliers, they were asked the main types of services or items that their organization
provided and were given the opportunity to provide six answers. Being categorically summed
up, the breakdown is as follows: 80% (35) of the respondents indicated Tools and
Equipment; 68% (30) of the respondents indicated Air Conditioners; 73% (32) of the
respondents indicated Cement; 48% (21) of the respondents indicated Iron Rods; 48% (21)
of the respondents indicated Ventilation Services; 70% (30) of the respondents indicated
Door/Window Frames; and 63% (28) of the respondents indicated Labour. It should be
noted that on some of the respondents questionnaires, some fields were left blank.
According to Figure 4.8, the percentages of the items in Table 4.3 that respondents from
Clients Firms indicated were imported by their organizations were as follows: 0% (0)
indicated 0 - 20; 0% (0) indicated 21 40; 2% (1) indicated 41 - 60; 17% (7) indicated
61 80; and 81% (32) indicated 81 - 100.
From the results, one can assume that many of the needs of the organizations are not readily
available in Ghana.
54
Figure 4.8: Percentages of Items Imported
As for the Suppliers questionnaire, it asked for the percentage of contributions that the
respondents companies provided in key project deliverables. 8% (4) chose 0 - 20; 23% (10)
chose 21 - 40; 40% (18) chose 41 - 60; 15% (7) chose 61 - 80; and 14% (5) chose 81 - 100.
The Clients Firms questionnaire asked respondents what informed importation decisions.
According to Table 4.4, the factors that influenced the importation decisions of the
respondents organizations were as follows:
Table 4.4: Factors that Influenced the Importation Decisions of the Respondents
Organizations
55
Variables
Management Discretion
Quality
Price
Quantity Available
Reputation of Supplier
Frequency
8
13
15
2
2
Total
Percentage
(%)
21
32
38
4
5
40
100
Table 4.5 shows the results when respondents were asked about the consistency of local
supplies to their projects. 43% (17) indicated Very Consistent; 50% (20) indicated Not
Consistent; and 7% (3) indicated Materials not Available.
The fact that 50% of the respondents indicated Not Consistent can be an indication that
many of the organizations involved in supplying companies in Ghana are not efficient.
Therefore, it leads the more serious organizations to rely on importation.
Table 4.5: The Consistency of Local Supplies to Respondents Projects
Variables
Very Consistent
Not Consistent
Materials not
Available
Total
Freque
ncy
17
20
Percentage
(%)
43
50
40
100
56
According to Figure 4.9, when respondents were asked how their firms stored the materials
procured for their projects, 86% (34) indicated that they were stored in a company-owned
warehouse/storage facility, whereas, 14% (6) indicated that they were stored in an outside
facility that was owned by someone other than their company. As a matter of fact, one of the
challenges with procurement management that was mentioned in the Literature Review was
material storage. From the survey, how organizations relied on outside storage could be a
reflection of this.
Figure 4.9: Firms Storage of Materials
Figure 4.10 deals with whether respondents companies insured their imported materials
stored for projects against theft or fire outbreaks. Of the 40 respondents, 100% (40) replied
Yes. It can therefore be assumed that theft and fire insurance has been a standard across
many industries in Ghana.
57
Figure 4.10: Insurance against Theft or Fire Outbreaks
Figure 4.11 deals with the percentage of the total cost of respondents companies projects that
procurement of materials and equipment accounts for. 10% (4) selected 0 - 20; 80% (32)
selected 21 - 40. 5% (2) selected 41 - 60; 5% (2) chose 61- 80; and 0% (0) chose 81 - 100.
This compares to the Literature Review how it explains that approximately 40 percent of the
total costs of major engineering and construction projects is spent on the procurement of
materials and equipment, and this percentage is even higher for civil engineering works where
the cost of materials can go for as high as 65 percent.
58
Figure 4.11: Percentage of Projects Costs that Procurement of Materials and Equipment
Accounted for
Section E of the questionnaires

Figure 4.12 deals with the extent to which respondents had been involved in procurement
management within their organizations. [10% (4) chose Very Involved; 13% (5) chose
Quite Involved; 60% (24) chose Not so Involved; and 17% (7) chose Not Involved.]
This is consistent with the above survey results that 2% of the companies regarded
procurement management as a major core function.
59
Figure 4.12: Extent to which Respondents have been Involved in Procurement

Management within their Organizations

When respondents for the Suppliers questionnaire were asked to what extent they were
involved in providing supply services to a project, 85% (37) responded Very Involved; 10%
(4) responded Quite Involved; 5% (3) responded Not so Involved; and 0% (0) responded
Not Involved.
According to Figure 4.13, the positions in the respondents companies that were the major
participants in procurement management were as follows: 68% (27) chose the Managing
Director; 32% (13) chose the General Manager; 0% (0) chose the Marketing Manager; 0% (0)
chose the Supply Chain Manager; and 0% (0) chose the Logistics Manager.
Figure 4.13: Positions in Respondents Companies who were the Major Participants in
Procurement Management
60

When respondents to the Suppliers questionnaire were asked which positions in their
company were the major decision makers in providing or supplying to projects to ensure
effective delivery, 75% (33) chose the Managing Director; 0% (0) chose the General Manager;
0% (0) chose the Marketing Manager; 0% (0) chose the Supply Chain Manager; 0% (0) chose
the Logistics Manager; and 25% (11) chose Other. When they specified other, all wrote the
Procurement Manager.
Figure 4.14 shows the results when respondents were asked what accounted for their
inclusion/exclusion in procurement activities. 23% (9) indicated Management discretion;
40% (16) indicated expertise; 30% (12) indicated specialized knowledge; and 7% (3)
replied I dont know.
Figure 4.14: What Accounted for Inclusion/Exclusion in Procurement Activities
61
When respondents were asked what accounted for their inclusion/exclusion in supply
activities, 56% (25) indicated Management Discretion; 41% (18) indicated some form of
expertise; and 3% (1) left that section blank.
According to Figure 4.15, the respondents who felt that their company utilized all possible
avenues to secure projects to serve were 87% (35). Those who did not were 10% (4). Those
who did not investigate were 3% (1).
Figure 4.15: Respondents who Felt that their Company Utilized all Possible Avenues to
Secure Projects to Serve
62
Furthermore, with respect to the Suppliers Questionnaire respondents who felt that their
company utilized all possible avenues to secure projects to serve, 58% (25) chose Yes; 34%
(15) chose No; and 8% (4) had not investigated.
Figure 4.16 deals with how many key projects respondents had been included in so far.
37% (15) indicated 0 5; 15% (6) indicated 6 10; 41% (16) indicated 11 15; and
7% (3) indicated 16 and over.
Figure 4.16: How many Key Projects Respondents had been included in
63

When Suppliers questionnaire respondents were asked how many key projects they had
provided services to or supplied so far, 33% (15) chose 0 5; 29% (13) chose 6 10;
29% (13) chose 11 15; and 9% (3) chose 16 and over.
Figure 4.17 deals with the results of when respondents were asked about the extent of their
knowledge about procurement management.
0% (0) chose Poor; 25% (10) chose
Average; 48% (19) chose Good; and 27% (11) chose Excellent.
Figure 4.17: Extent of Knowledge about Procurement Management

64
Table 4.6 covers what the respondents to the Clients Firm questionnaire knowledge base
entailed. Of the 40 respondents, 50% (20) indicated that their knowledge base entailed
purchasing; 35% (14) indicated that their knowledge base entailed plan contracting; and
15% (6) indicated that their knowledge base entailed contract closure.
Table 4.6: Knowledge Base
Variables
Purchasing
Plan Contracting
Contract Closure
Total
Freque
ncy
20
14
6
40
Percentage
(%)
50
35
15
100
65
When respondents to the Suppliers questionnaire were asked about the extent of knowledge in
their field. 0% (0) chose Poor; 8% (4) chose Average; 91% (40) chose Good; and 1%
(1) chose Excellent.
When asked what their knowledge base entailed, the most common responses were: General
administrative and management roles (33%) [13]; Technical aspects (45%) [18]; Human
Resource Management (5%) [2]; Marketing (13%) [5]; Finance (4%) [2].
According to Figure 4.18, when respondents were asked whether procurement knowledge
makes them competent, 40% (16) indicated Very Competent; 25% (10) indicated Quite
Competent; 35% (14) indicated Not so Competent; and 0% (0) indicated Not Competent.
Figure 4.18: Procurement Knowledge Creates Competence
66
When respondents to the Suppliers questionnaire were asked how their knowledge or
experience enhanced their overall performance, 76% (33) chose Good; 10% (5) chose
Averagely; 12% (5) chose Excellently; and 2% (1) chose Not at All.
Figure 4.19 deals with when respondents were asked whether they needed more education to
boost their procurement practices. 67% (27) chose Yes and 33% (13) chose No.
Figure 4.19: Need for more Education
Table 4.7 displays the results when respondents were asked about noticeable challenges that
their company has been facing regarding procurement management of key project
deliverables. When categorized, 35% (14) of respondents discussed on-time delivery; 25%
(10) discussed communication with suppliers; 13% (5) discussed reliability issues; and
the remaining 27% (11) discussed Management issues within the organization.
67
In the Literature Review, some of the challenges with procurement management ascertained
from other companies were staff skills, the use of proper material storage, the application of
proper ICT in procurement, and the use of proper lead times.
Table 4.7: Challenges

Variables
On-Time Delivery
Communication with suppliers
Reliability Issues
Management Issues
Total
Frequency
14
10
5
11
Percentage
(%)
35
25
13
27
40
100

When respondents to the Suppliers questionnaire were asked about some of the noticeable
challenges that their organization had been facing with regard to the provision of services or
materials supplied to projects, of the most recurring items, 43% (19) discussed delays. 98%
(43) discussed mismanagement of some sort; 67% (27) discussed payment issues; and
29% (13) discussed issues regarding corporate politics.
Figure 4.20 shows respondents opinions of whether procurement is effective in construction
projects. 45% chose Yes; 34% chose No; and 21% chose Not Sure. This indecisiveness
could imply that procurement management in construction projects in the country is not up to
par.
68
Figure 4.20: Procurement Effectiveness in Construction Projects
69
CHAPTER FIVE
SUMMARY OF FINDINGS, RECOMMENDATIONS AND CONCLUSION
5.0
Introduction
The preceding chapters of the study sought to discover the contributions and challenges of
procurement in projects for companies in the public and private sectors. Hence, this chapter
gives a summary of the findings from the study and also makes recommendation that would
help to improve upon the project procurement management in these organizations.
Summary of Findings
Procurement is seen in the majority of the project activities and much attention is paid
to it.
Project owners and sponsors depend highly on project consultants, project managers
and contractors for their procurement.

During the design stage of the building, it does not take into account Early Buyer
Involvement (EBI) and Early Supplier Involvement to make sure the materials are
available for the product designed.

Design and specifications are sometime ambiguous and difficult; do not make it clear
for contractors to execute.

Contractors and Sub-Contracting companies for mostly state projects are not
mobilised, or advanced payment to carry out the building project awarded and
measurements for payment certificates from the quantity surveyors are not regularly
forth coming; hence, most delays in state projects

Most building contractors and sub-contracting companies do not have procurement
departments to handle effective procurements; therefore ad hoc purchases are made,
70
poor quality of materials and high prices are charged, and shortages in delivery of
materials occurs.
Most modern construction materials, apart from cement, are all imported and during
high demand period prices escalate and contract prices overrun. This sometimes
results in huge budget and cost overruns, hence, delays to the project if the extra fund
is not immediately available.

The client or the owner organisation has a little input, since consultants; architect,
engineers and quantity surveyors are in-charge of the projects.

The project managers have minimal knowledge about project procurement
Project Procurement requires some technical knowledge. Moreover, it was realised
that some procurement officers do not have enough product knowledge of the building
construction materials such as quality of electrical switches and gears, plumbing,
glazing and cladding etc.

The supply chain management is gradually finding ways into projects and its
procurement management; this is by integration of all other functions and projects
activities such as human resource, communication, finance and cost.

Effective contractual agreement between the clients, consultants, sub-contractors and
suppliers is inadequate for efficiency and continuity of the projects.

Availability of funding for these building construction projects are limited and the
banks charges high interest and delays in the release of the fund some of the times due
to the owners inability to meet their requirements.

The Silver Star Tower has seen challenges and some similar problems above, lessons
are learnt and well documented for future development.

The Ministry of Roads and Highways has project consultants and the main contractor
on the project all the time; hence, management has not gotten too directly involved
inorder to see the major and detailed challenges apart from the funding of the project.
71
Generally, projects are completed satisfactorily, but are not on scope because of
changes in project scope called scope creep, time and cost. Projects in Ghana hardly
seen and achieved the three (3) constraints, scope, time and cost.
The consulting firm, including the Architect, Engineers (Electricals and Mechanical)
and the Quantity Surveyors do not relate well with procurement because there is most
items conflicts resulting from specification and cost of materials.

The PPA, 2003, Act 663 do not give enough responsibilities to the procurement
practitioner within the state owned projects and organization, and therefore,
procurement does not contribute significantly to the projects after they have gone
through tender and been evaluated and awarded to the contractors; hence, control and
monitoring is limited.
5.2
Recommendations
The private owners and procurement

The private sector as the engine of growth is obviously geared towards investment into real
estate and commercial building. The decision to invest is mostly influenced by how much
capital is required to invest as well as the availability of raw materials. Procurement as a value
adding activity is to be considered in making these capital investment decisions. Project
procurement is huge with respect to construction projects.
Procurement will ensure that quality products and materials are delivered on time and at price,
and a good relationship with the suppliers is encouraged. Early Buyer Involvement at the
designing stage of the project will bring about a collaborative and input on materials source
and its availability.
72
The contractual agreement between the clients firm and the supply organisation is drafted and
all issues captured to minimized conflicts that may arise.
Procurement departments will ensure continued improvement through monitoring, controlling
and evaluation of the outsourced services such as consultants, suppliers and contractors.
State Ownership Projects

The public procurement act 2003, Act 663 is now a guide to procurement and acquisition in
the public sector. Though inadequate, it is a point to start from.
The state projects relied mostly on external project consultants to carry out these building
projects. Procurement involvement at all level is important so that the interest of the state is
represented. Procurement practitioners should be trained appropriately to have technical
project procurement knowhow. Continuous monitoring and evaluation on the Government of
Ghana projects is to be ensured so that the sub-contractors and the vendors comply with the
projects specifications, quality, scope, time and cost.
To avoid poor quality materials, the introduction of insured mobilisation for the vendors and
suppliers will help the execution of the building projects to achieve its timeline, scope and
budget. This will then produce very satisfactory projects.
Consultants, Suppliers and Contractors
For every project to succeed, especially the building construction industry, there is the need
for the services of the above. An architectural design requires knowledge of materials and its
availability to achieve the deliverables. Hence, early supplier involvement will come a long
way to help the project to be realised.
73
Effective communication among the project team members must be encouraged and improved
upon the attainment of the desired project objectives.
5.3
CONCLUSION
Even though procurement activities are very often seen in building and construction projects,
they are usually done unplanned and without any attention to their relevance. Construction
projects in Ghana would have done better in achieving the three constraints of project; scope,
time and cost if effective project procurement practices were complied with.
Projects will be completed and handed over satisfactory to the benefactors and the other
stakeholders to benefit from only if due processes of procurements are followed.
In an effort to help improve the project procurement as a tool in achieving project
deliverables, a number of recommendations were made. These recommendations are not
suggestive of total solution for best procurement practices in the industry. From the study, it
also hoped that if the above recommendations suggested above are adopted and implemented,
most building and construction projects would see better results and improvements in Ghana.
REFERENCES
ARTH WARD (2008), The Project Managers Guide to Purchasing, Contracting for Goods
and Services
Chris Hendrickson (2008), Project Management for Construction, Fundamental Concepts for
Owners, Engineers, Architects and Builders
Michael G. Judd (2007), Project Procurement Management
74
Project Management Institute (2008), PMBOK 2008, A Guide to the project management
body of knowledge: 4th edition. Pennsylvania, U.S.A.
Greene Jennifer and Andrew Stellman (2009), Head First PMP. OReilly Media Inc. 2nd Ed
Arrowsmith, S, Linarelli, J, and Wallace, D. (2000). Regulating public procurement: National
and International perspectives. Kluwer Law Journal, 1(6), pp. 13-19.
Basheka, B. (2005). Procurement planning and local governance in Uganda: A factor
analysis approach. Unpublished masters thesis, Uganda Management Institute,
Kampala, Uganda.
Kevin R. Callahan and Lynne M. Brooks, (2004), ESSENTIALS of Strategic Project
Management ISBN 0-477-64985-6, USA.
Collin, J. (2003). Selecting the right supply chain for a customer in project business.
Unpublished masters thesis, Helsinki University of Technology, Helsinki, Finland.
Eriksson, M. (2005). Procurement of complex technical systems: Strategies for successful
projects. Unpublished doctoral dissertation, Royal Institute of Technology, Stockholm,
Sweden.
Jessop D. & Morison A. (1994) Storage and Supply of Materials, sixty ed.
Republic of Ghana.Public Procurement Authority."Procurement of works."Public
Procurement Act, 2003 (Act 663). Accra: Public Procurement Board, 2006.
Juzokaite, E. and Trainaviciute, L. (2009). Procurement optimization based on balanced
scorecard: Implementation guidelines for pharmaceutical industry. Unpublished thesis.
Denmark: Aalborg University.
75
Jones, D.S. (2002). Procurement practices in the Singapore civil service: Balancing control
and delegation. Journal of Public Procurement, 2(1), pp. 29-53.
Kabaj, O. (2003). The challenge of African development. Oxford University Press.
Kerkhoff, G. (2005) The Bermuda Triangle of Business Procurement: How to Exploit
Dormant Potential. Weinheim: WILEY-VCH Verlag GmbH & Co.
Kimani, M.T. (2011). Factors affecting procurement in the retail sector: A case study of
Nakumatt Lifestyle Supermarket. Nairobi. Unpublished thesis. Nairobi: Kenya Institute of
Management.
Klemencic, E. (2006). Management of the supply chain: Case of Danfoss District Heating
Business area. Unpublished thesis. Ljubljana: Ljubljana University.
David N. Burt and Richard L. Pinkerton (1996), A Purchasing Manager's Guide to Strategic
Proactive Procurement
Marino, V. (2003). Procurement outsourcing by the example of Unitec Germany GMBH.
Unpublished thesis. Augsburg: University of Augsburg.
Newell, M.W. (2002). Preparing for the Project Management Professional (Pmp)
Certification Examination: 2nd edition. New York: AMACOM.
Quentin W . F., (2003). Probject Procurement Management. FMC Press, CA.
Schary, P.B., Skjott-Larsen, T. (1998). Managing the global supply chain. Copenhagen,
Handelwhojskolens Forlag, pp. 10-385.
76
Ward, G., (2008). Project Managers Guide to Procurement; contracting for goods and
services. Gower Publishing Limited, Hampshire, England
Black and Champion 1976, Ability to measure consistently
Peter Baily et al, 2005. Purchasing Principles and Management, 9th ed,
Nigel J. Smith, Denise Bower, Peter Harpum, S. Male T. Merna, K. Moodley, I. Vickridge D.
Wright (2002), Engineering Project Management, Blackwell Science Ltd. Oxford Uk. 2nd Ed
Dr Trish Melton, Peter Iles-Smith and Jim Yates (2008), Project Benefits Management
Linking your Project to the Business. 1st ed, Elseview Ltd.
SCMP, Council of Supply Chain Management Professionals, (2011). CSCMP Supply Chain
Management Definitions. Lombard Illinois: CSCMP. Available from
http://cscmp.org/aboutcscmp/definitions.asp. (Accessed February 27, 2011).
Wisegeek, (n.d.).What is procurement management. [Online] http://www.wisegeek.com/whatis-procurement-management.htm
Kwabena Duffour 2010, Presentation of the 2011 Government of Ghana Budget
statement[online] www.mofep.gov.gh
Alban Babgbin 2011, Brief on the National Housing Project (MWRWH), [Online]
www.Ghana.gov.gh
Appiah-Agyekum, (2006), The impact of NGOs on decentralization and Local government in
Ghana the GAIT II example, (Unpublished MPhil Dissertation), UGBS, PAHSM.
Asika, N., (1991), Research methodology in the behavioural sciences, Longman, Nigeria
Opoku J.Y. (2005), A short guide to research writing in the social sciences and education, Ghana
Universities Press, Accra.
77
Villanyi, R.E. (2010). The examination of procurement management of the vegetable and
fruit processing enterprises in the Northern Plain region. Unpublished doctoral dissertation.
Hungary: University of Debrecen.
APPENDIX
UNSTRUCTURED QUESTIONNAIRE
QUESTIONNAIRE: PROCUREMENT MANAGEMENT IN ACHIEVING PROJECT

DELIVERABLES
Please answer the following questions to the best of your ability. The results will be used for
academic purposes only and will remain confidential. Please place a check mark
the appropriate answer. Thank you for participating in our questionnaire.
THE OWNER FIRMS, SPONSORS, PROCUREMENT EXPERTS TO ANSWER
78
next to
1. Please specify your gender:

Male
Female
2. Please specify your age?

18 25
26 35
36 50
50 and above
3. What is your highest level of education?

SSS
Vocational Skill
Professional
Graduate
Post-Graduate
Other Please specify

4.
Please indicate the name of your company?

____________________________________________________________________.
5. How many years has your company been in operation?

05
6 10
11 15
16 and over
6. Which sector is your company in?

Public Sector
Private Sector
Other

7. How many years have you been working for the company in question?
0-4
5-8
9 - 12
13 and over
8. What is your position in the company?

Managing Director
Procurement Manager
General Manager
Marketing Manager
Supply Chain Manager
Other:_______________________________.
(please specify)
79
Section D: Procurement Contributions to project deliverables

9. Is procurement regarded as one of the core functions in your organization?
Yes
No
10. What are the main types of items that your organization procures? (please specify)
__________________________________ ; ________________________________;
__________________________________; ________________________________;
_________________________________; _________________________________;
11. How many percentages of these items are imported?
0-20
12.
21-40
41-60
61- 80
81-100
What informs the importation decisions?

_____________________
13.
How consistence is the local supplies to your project

Very Consistence
Consistence
Not Consistence
Materials not available
14.
How do your firm stores these materials procured for the projects?
_____________________
15.
Do your company insure these materials stored for projects against theft or fire
outbreaks?_____________________
16.
What percentage of the total cost of your companys projects does procurement of
materials and equipment account for? (please estimate)
0-20
21-40
41-60
61-80
81-100
Section E: Procurement Participation in Projects

17. Do you think that Public Procurement is effective in construction projects?
Yes
No
Not Sure
18. Do you think that Public Procurement Act 2003 Act 663 is enough to ensure effective
procurements of works and services?
80
Yes
No
Not Sure
19. Do you think that the Act 663 facilitates procurements?

Yes
No
Not Sure
20. What is your opinion about the Act?

_____________________________________________________________________
_____________________________________________________________________
21. To what extent have you been involved in procurement management within your
company?
Very involved
Quite involved
Not so involved
Not involved
22. Which positions in your company are the major participators in procurement
management?
Managing Director
Procurement Manager
General Manager
Marketing Manager
Other:_______________________________.
(please specify)
23. What accounts for your inclusion or exclusion in procurement activities?
_____________________________________________________________________
_____________________________________________________________________
24. Would you say your company utilizes your procurement potentials?
Yes
No
Have not investigated
25. How many projects have you been included in so far?

05
6 10
10 15
16 and over
26. How can you be involved in procurement activities more than you are now?
_____________________________________________________________________
_____________________________________________________________________
81
Section F: Procurement Knowledge of Procurement Participants

27. How would you describe the extent of your knowledge of procurement management?
Poor
Average
Good
Excellent
28. Would you briefly explain what your knowledge base entails?
_____________________________________________________________________
______________________________________
29. Does your procurement knowledge make you competent?
Very competent
Quite competent
Not so competent
Not competent
30. Do you see the need for more education to boost your procurement practices?
Yes
No
Section G: Challenges and Suggestions

31. What are some of the noticeable challenges that your company has been facing
regarding the procurement management of key project deliverables?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
32. What are some of the suggestions that you would give your project team regarding
the procurement management to achieving project deliverables?
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
82
THANK YOU
CONSULTANTS, SUPPLIERS, VENDORS AND BUILDING CONSTRUCTION
FIRMS
QUESTIONNAIRE: PROCUREMENT MANAGEMENT IN ACHIEVING PROJECT

DELIVERABLES
83
Please answer the following questions to the best of your ability. The results will be used for
academic purposes only and will remain confidential. Please place a check mark
the appropriate answer. Thank you for participating in our questionnaire.
1. Please specify your gender:
Male
Female
2. Please specify your age?

18 25
26 35
36 50
50 and above
3. What is your highest level of education?

MSLC
SSS/WASSCE
Graduate
Post- Graduate
Other
Please specify
Vocational Skills
Professional

4.
Please indicate the name of your company or Enterprise?

______________________________________________________________
5. How many years has your company or enterprise been in business?

05
6 10
11 15
16 and over
6. Which sector is your company or enterprise in?

Construction
Supplies
Other
(Please specify)
Consultancy

84
next to
7. How many years have you been working for the company, enterprise or firm in
question?
0-4
5-8
9 - 12
13 and over
8. What is your position in the company?

Managing Director
Architect
Principal Consultant
Marketing Manager
Partner
General Manager
Other:_______________________________.
(Please specify)
Section D: Procurement Contributions to project deliverables

9. Is provision of service or supplying regarded as one of the core functions in your
organization?
Yes
No
10. What are the main types of services or items that your organization provides? (please
specify)
__________________________________;___________________________________
_________________________;____________________________________________
_________________;____________________________
11. What percentage of contributions does your company provide in key project deliverables?
(please estimate)
0-20
21-40
41-60
61-80
81-100
Section E: Supply Participation in Projects

12. To what extent have you been involved in providing supply services to a project?
Very involved
Quite involved
85
Not so involved
Not involved
13. Which positions in your company are the major decisions makers in providing or
supplying to projects to ensure effective delivery?
Managing Director
General Manager
Marketing Manager
Logistic Manager
Other:_____________________
(please specify)
14. What accounts for your inclusion or exclusion in supply activities?
_____________________________________________________________________
_______________________________________________________
15. Would you say your company utilizes all possible avenues to secure projects to
serve?
Yes
No
Have not investigated
16. How many key projects have you provided services or supplied to so far?
05
6 10
11 15
16 and over
17. Kindly mention three (3) public and private projects you have provided service or
supplied to?
_____________________________________________________________________
_______________________________________________________
18. How often do you receive payments for your services or materials supplied to state
financed projects?
_____________________________________________________________________
_______________________________________________________
19. How often do you receive payments for your services or materials supplied to
privately financed projects?
_____________________________________________________________________
_______________________________________________________
20. What would be your general comments on both state funded project and private
funded projects?
86
_____________________________________________________________________
_______________________________________________________
Section F: Product or services Knowledge of Professionals
21. How would you describe the extent of your knowledge in your field?
Poor
Average
Good
Excellent
22. Would you briefly explain what your knowledge base entails?
_____________________________________________________________
________________________________________
23. How does your knowledge or experience enhances your performance

Good
Averagely
Excellently
Not at all
Section G: Challenges and Suggestions

24. What are some of the noticeable challenges that your organization has been facing
regarding the provision of services or materials supplied to project?
______________________________________________________________
______________________________________________________________
______________________________________________________________
25. What are some of the suggestions that you would give to improve healthy supplier
and client relationship in achieving project goals?
______________________________________________________________
_____________________________________________________________
THANK YOU
87
LIST OF FIGURES
Figure 4.1: Clients Firm Questionnaire Response Rate

Figure 4.2: Gender of Respondents
Figure 4.3: Age of Respondents
Figure 4.4: Respondents Companies Years of Operation
Figure 4.5: Sector of the Respondents Companies
Figure 4.6: Years of Employment
Figure 4.7: Procurement as a Core Function of the Respondents Organizations
Figure 4.8: Percentages of Items Imported
Figure 4.9: Firms Storage of Materials
Figure 4.10: Insurance against Theft or Fire Outbreaks
Figure 4.11: Percentage of Projects Costs that Procurement of Materials and Equipment
Accounted for
Figure 4.12: Extent to which Respondents have been Involved in Procurement Management
within their Organizations
88
Figure 4.13: Positions in Respondents Companies who were the Major Participants in
Procurement Management
Figure 4.14: What Accounted for Inclusion/Exclusion in Procurement Activities
Figure 4.15: Respondents who Felt that their Company Utilized all Possible Avenues to
Secure Projects to Serve
Figure 4.16: How many Key Projects Respondents had been included in
Figure 4.17: Extent of Knowledge about Procurement Management
Figure 4.18: Procurement Knowledge Creates Competence
Figure 4.19: Need for more Education
Figure 4.20: Procurement Effectiveness in Construction Projects
89
LIST OF TABLES
Table 4.1: Education Level of Respondents
Table 4.2: Respondents Positions within their Companies
Table 4.3: Main Types of Items that the Respondents Organizations Procured
Table 4.4: Factors that Influenced the Importation Decisions of the Respondents
Organizations
Table 4.5: The Consistency of Local Supplies to Respondents Projects
Table 4.6: Knowledge Base
Table 4.7: Challenges
90

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Table of Contents

Purpose of the study............................................................................................................8

Research Goal and Objectives............................................................................................8

Limitations of the study....................................................................................................10

Organisation of the study..................................................................................................11

Defining Procurement Management.................................................................................13

Importance of Procurement Management.........................................................................13

Procurement: Different Points of View.............................................................................14

Factors Affecting Procurement Management....................................................................15

The Procurement Management Process............................................................................16

Procurement on a National Level......................................................................................27

Supply Chain Management (SCM)...................................................................................28

Population of the study.....................................................................................................33

Sample size and sampling procedure of study...................................................................33

Data collection instruments..............................................................................................39

Data handling and analysis................................................................................................40

In many cases in Ghana, project managers are observed to be participating in project

This research seeks to find answers to the following questions;

4. For procurement activities in Ghana, is there active coordination between different

Purpose of the study

Research Goal and Objectives

The main objectives of the study were:

area of project procurement management. Furthermore, the study provides additional

Limitations of the study

Organisation of the study

The study is divided into five chapters.

Chapter One comprises the: of the: 1) Background Information, 2) Research Problem,

Organization of the Study.

Chapter Two comprises of the Literature Review.

Chapter Four comprises of the Presentation and Analysis of Data.

Defining Procurement Management

Defining Procurement Management

Importance of Procurement Management

Procurement: Different Points of View

Thus, to gain a better insight into them, one must first

From a Client Point of View:

From a Supplier Point of View:

Factors Affecting Procurement Management

The original intention of

The Procurement Management Process

Figure 2.1: Project Life Cycle for a Constructed Facility

Source: Chris Hendrickson, 2000. Project Management for Construction

Outputs from Procurement Planning:

Procurement management plan describes how the remaining procurement processes

What types of contracts will be used?

Will independent estimates be needed as evaluation criteria? If so, who will

Will standardized procurement documents be needed? If so, where can they be

Will multiple providers be managed?

How will procurement be coordinated with other project aspects such as

Statement of work describes the procurement item in sufficient detail to allow

2.6.2 Solicitation Planning

Inputs to Solicitation Planning:

Outputs from Solicitation Planning:

Evaluation criteria used to rate or score proposals:

They may be objective or subjective. Evaluation criteria are often included as

Understanding of need as demonstrated by the sellers proposal;

Outputs from Solicitation:

Inputs to Source Selection:

Outputs from Source Selection:

Inputs to Contract Administration:

The sellers work results;

Outputs from Contract Administration:

Inputs to Contract Close-Out:

Outputs from Contract Close-Out: