TITLE:
Investigating Challenges in Financing Contractors for Public Sector Projects in Ghana
AUTHORS:
Prince Abrokwa Ofori, Kwadwo Twumasi-Ampofo, Joseph Agyei Danquah, Ernest Osei-Tutu, Safowaa Osei-Tutu
KEYWORDS:
Public Sector, Project Financing, Delayed Payments, Performance and Contractor Classification
JOURNAL NAME:
Journal of Building Construction and Planning Research,
Vol.5 No.2,
June
15,
2017
ABSTRACT: Contractors working with the Public sector encounter numerous challenges in financing projects in Ghana. The challenges which have persisted over the years are both financial and managerial. This paper seeks to ascertain the extent to which contractors’ challenges in acquiring funds to execute public sector projects have been solved. The study involved both qualitative and quantitative methods to ascertain the various strategies the contractors go through to obtain public sector projects focusing on the challenges associated with the project execution. The study revealed that delayed payments and inadequate cash flow on the part of government, lack of credit worthiness and inadequate collateral security from contractors are key determinants to challenges associated with financing public sector projects in Ghana. This paper recommends the establishment of a Construction Development Authority (CDA), within the Ministry of Works and Housing to develop financial plans, policies and laws for this important sector of the economy.