Ghana's public procurement reform and the continuous use of the traditional procurement system: The way forward

Abstract

Purpose

The purpose of this paper is to examine the performance of the traditional procurement approach (TPA) under Ghana's procurement reform and explore if other possible procurement strategies could help to improve value for money in the Ghanaian public sectors. The fundamental questions to be addressed are: “Is the procurement reform addressing the deficiencies in the public sector procurement?”; “Are clients and professionals satisfied with the present procurement system?”; “What are the possible alternatives?”; and “What procurement selection criteria should be adopted?”.

Design/methodology/approach

To answer the above questions, an extensive literature review was conducted which provides the background to public procurement reform and reveals the status of the TPA in the public sector. Based on the outcomes of the literature review, three rounds of questionnaire surveys and face‐to‐face discussions were undertaken. The targeted population was carefully selected from different sectors of the industry and regions of the country.

Findings

The results of the study reveal the deficiencies in contractors’ performance arising from the use of TPA with a focus on time, budget, buildability and relationships among participants. It also ranks the criteria for procurement selection and suggests the D & B method as the most favourable alternative procurement strategy. Suggestions were made in the area of tendering processes, collaborative working, contractors’ competence, government's work efficiency, and whole‐life performance criteria.

Practical implications

This study evaluates the TPA performance after Ghana's procurement reform in 2003 and provides guidelines to the industry and government for further procurement reform aimed at improving value for money.

Originality/value

This research provides a systematic study on the public procurement reform and the TPA adopted in Ghana's public sector. The essential problems associated with the TPA in the industry are identified and analyzed, the procurement selection criteria are examined and an alternative procurement approach is postulated.

Citation

Ren, Z., Kwaw, P. and Yang, F. (2012), "Ghana's public procurement reform and the continuous use of the traditional procurement system: The way forward", Built Environment Project and Asset Management, Vol. 2 No. 1, pp. 56-69. https://doi.org/10.1108/20441241211235053