Edward Badu

Assessment and enforcement of liquidated and ascertained damages in construction contracts in Ghana

Purpose – The enforcement of liquidated and ascertained damages (LADs) can be problematic when the amounts are poorly assessed and there are lapses in the administration of contracts. This paper seeks to investigate the relevance of LAD clauses in construction contracts in Ghana, as well as the methods employed in their assessment and enforcement.Design/methodology/approach – A parallel survey method was adopted. Three sets of similar questionnaires (slightly modified) were administered to professionals in client, consultant and contractor organisations in contract administration roles, to explore their experiences in the assessment and enforcement of LADs.Findings – LADs are not serving their purpose in construction contracts in Ghana. Clients have created situations that render LADs unenforceable. LAD amounts are also not genuine pre‐estimates of expected loss to be incurred, as assumptions and guesses rather than genuine calculations on a case‐by‐case basis are adopted in their assessment.Originality/v...

Rural infrastructure development in the Volta region of Ghana: barriers and interventions

Purpose – Although a high proportion of the Ghanaian population live and work in under‐developed areas, research on rural infrastructure development is scarce. The purpose of this paper is to explore the challenges confronting rural infrastructure development and the requisite incentives needed to boost it.Design/methodology/approach – An inductive methodological approach was adopted using a structured questionnaire to survey the perceptions of rural contractors.Findings – Incentive systems identified include the provision of mobilization funds for projects; a plant pool for rural contractors; special allowance for rates of project items; and provision of letters of credit to secure loans for projects. Key challenges confronting rural construction were identified as a lack of financial institutions willing to support projects with funds; lack of potable water; lack of good health care systems; and lack of a goods market to supply materials.Research limitations/implications – Identification of challenges a...

Barriers to the implementation of innovative financing (IF) of infrastructure

Purpose – Failure to resolve Ghanas infrastructure deficit, coupled with inability of traditional financing methods to meet current infrastructure demand, have triggered recent studies to explore strategic issues underpinning innovative financing (IF) of infrastructure. The purpose of this study is to explore potential impediments inherent in IF tools available to Ghana.Design/methodology/approach – The empirical aspect of the investigation used structured interviews and a survey questionnaire to gather data from project implementation agencies with experience of infrastructure IF. Factor analysis (principal component analysis) established which variables measured aspects of the same underlying dimensions.Findings – A total of three key challenges were identified, and explained in terms of: investment capacity; implementation and revenue mobilization. Findings provide an early failure signal when implementing IF.Practical implications – Conclusions and recommendations are of benefit to various internatio...

Corporate social responsibility architecture and project alignments: A study of the Ghanaian construction industry

Purpose – The developed world increasingly expects corporations to support the community under the corporate social responsibility (CSR) banner. For developing countries, the situation differs and CSR has yet to be fully embraced. This study aims to examine the CSR in the Ghanaian construction industry (GCI). Design/methodology/approach – A multi-stage methodology employs descriptive statistics, the t-test and χ2-test to analyse survey data. Findings – Results highlight three broad classifications of CSR project typology: social; infrastructure; and environmental. Ghanaian firms are found more aligned to social/intangible CSR projects than tangible ones. Research limitations/implications – The study is geographically focussed, but the findings hold relevance to all the developing countries. The findings hold implications for policy making and planning in terms of how Ghanaian communities might integrate corporations within their geographical catchments, to enhance sustainable, local development. Originali...

Innovative financing (IF) of infrastructure projects in Ghana: conceptual and empirical observations

Traditional methods of financing have failed to resolve Ghanas infrastructure deficit. Innovative financing (IF) solutions are being encouraged to alleviate this, but presently IF knowledge is limited. This study provides an overview and maps the evolution of IF solutions to conceptually model their characteristics and application to major infrastructure projects, especially in the context of LDCs. An inductive methodology draws extensively on extant literature and published data from Ghanaian ministries, departments and agencies who procure infrastructure works. The study highlights how the IF concept stems from a plethora of public finance issues including reform of government service delivery, new tax tools, public–private partnerships and alternative financing arrangements and further how IF has been focused at educational, road, water infrastructure, housing and district assemblies. Through illumination of the Ghanaian IF concept, the study will be of utility to policy makers and international devel...

Conceptualisation of the consultancy pricing paradox

Purpose – Despite widespread demand for consultants and especially within the surveying profession, driving forces of service/pricing/quality are not fully understood and have received minimal research attention. The purpose of this paper is to review contemporary knowledge in this field, highlighting en route the dilemmas of the consultancy pricing paradox.Design/methodology/approach – Methodology is of axiological, philosophical tradition – induction and inference, generalized concepts and theories. A critique of extant literature underpins a theoretical pricing problem framework, a future research agenda, and a model of the pricing paradox.Findings – The study elucidates paradoxical aspects regarding value perceptions, objectives, strategies, cost recovery, competition and systematic processes. It conceptually models the dilemma of service pricing and suggests a research agenda based on process and value, nature of service, competence and branding.Research limitations/implications – The formalisation o...

Development of a Procurement Management Framework in Ghana A New Paradigm for Interdisciplinary Postgraduate Education

Procurement in the corporate world is increasingly complex, multi-faceted and interdisciplinary. This paper explores existing knowledge specifications relating to procurement management competencies and proposes a new procurement management competency framework (PMCF) and a competency-based postgraduate programme for postgraduate students in Ghana. A three-tier iterative and inductive methodology was used to develop the proposed framework and a literature survey and focus group discussions were used to explore the competency requirements for procurement management practice. The reliability, consistency and applicability of the framework were each tested using a modified single-phase Delphi survey. Five logical knowledge constructs were identified as providing the foundations for a modern public procurement system: financial; social; corporate governance; technology and globalization; and research and teamwork. The PMCF combines strategical, managerial and technical competencies and incorporates economic and social dimensions of procurement functions. It is hoped that the research findings will be of use to academics and those in industry involved with the education and training of future generations of procurement professionals.

Financial distress and highway infrastructure delays

Purpose In developing countries, delays in highway infrastructure projects caused by financial distress-related factors threaten the construction industry’s capacity to contribute optimally to economic development. Against this backdrop, this paper aims to determine factors contributing to financial distress and develops a conceptual framework to illustrate the relationship between financial distress and project delay. Design/methodology/approach A questionnaire survey collected data on factors that contributed to financial distress and delays in highway infrastructure delivery. In total, 78 responses were obtained, and factor analysis revealed that factors associated with payment, project financing, cash flow, economic issues, project planning and cost control influenced project delays. Findings The research identifies the importance of efficient public and private policies to engender financial sustainability among construction firms in developing countries. Originality/value This work presents the first research of its kind and strives to engender wider academic debate and renewed economic development in some of the world’s most impoverished nations.

Factorial analysis of capacity-building needs of small- and medium-scale building contractors in developing countries: Ghana as a case study

Purpose The needs assessment is the heart of any capacity-building strategy since it determines the design of any intervention, and also helps to prioritise the allocation of resources. Whereas there is a considerable amount of literature on the challenges faced by small- and medium-scale building contractors (SMBCs), very little is known about the needs (support) required by SMBCs. But given the critical role played by SMBCs in the construction industry demands, an understanding of how this sector can be assisted is required. The purpose of this paper is to contribute to the literature relative to capacity building of SMBCs by exploring and examining the needs with the objective to extend the understanding on how to promote and sustain SMBCs to continue their infrastructural delivery at the local and rural areas in Ghana. Design/methodology/approach A questionnaire with five-point Likert scale is administered to 416 respondents, including local government authorities, consultants, first-class contractors and SMBCs using simple random and purposive sampling techniques. Data generated from the survey are analysed using mean score ranking and principal component analysis, thus enabling the findings of the study to be examined under six thematic areas. Findings The SMCs needs identified include anti-corruption measures, job accessibility, technical and technological assistance, favourable fiscal policy, business development support and financial assistance. The findings of the study bring to the attention of policy makers the critical areas that required support by the assistance of SMBCs. In the interim, the study recommends the extension of business advisory services to the SMBCs by National Board of Small-Scale Industries, whilst in the long term, the government must create the necessary business operating environment to promote SMBCs pertaining to the industrial sector of the economy. The SMBCs must also factor the needs into their business operations that can be addressed from within. Originality/value The study suggests the need of SMBCs in building a robust construction industry in developing countries.

Tertiary Educational Infrastructural Development in Ghana: Financing, Challenges and Strategies

ABSTRACT Education is the mainstay of the development of any nation; and in developing countries it has become the backbone of human resource development, ensuring effective growth of the economy; however, its corresponding infrastructure development is lacking. Governments around the globe are finding it difficult to provide the needed infrastructure. Arguably, infrastructure development has become a benchmark for the measurement of the level of growth of the economy of developed and developing countries. Consequently, this study aimed to explore the financing mechanisms, challenges and strategies for educational infrastructural development in tertiary education in Ghana. The study adopted the quantitative paradigm to gather data from educationists, finance officers and students. Data generated from the survey was analysed, using descriptive statistics. Findings from the analysis indicated public private partnerships such as build-operate-transfer, build-own-operate, management contracts, service contracts, leases, traditional design-build and turnkey operations are among various options for which educational infrastructure development can be administered. This article suggests that the need to adopt these forms of finance approaches to cater for the growing population is desirable for effective management and administration of tertiary educational infrastructure in developing countries.