CERTIFICATION

I FELIX LAMPTEY hereby declare that this submission is my own work towards
HND and that to the best of my knowledge, it contains no material previously
published by another person nor material which has been accepted for the award of
any other degree of the Polytechnic, except where due acknowledgment has been
made in the text

FELIX LAMPTEY

(03130774)

Signature

.
Date

Certified by:
MR.ADZIVOR KODZO ERIC

(SUPERVISOR)

Signature

MR. ADZIVOR KODZO ERIC

(Head of Department)

Signature

ACKNOWLEDGEMENT
ii

.
Date

Date

While I fully accept my shortcomings and errors of this work, I wish to express my
unqualified gratitude to all who contributed in diverse ways to the successful
completion of this study. I am particularly indebted to my supervisor, Mr. Adzivor
Kodzo Eric for his tolerance, concern and co-operation. His expert advice and
suggestions greatly urged me on and actually shaped this study.
I also acknowledge with gratitude the understanding and co-operation of all
contractors in Ho Municipality for their support during data collection. Special
recognition is given to my study-mates and friends for gingering me and always being
there for me when they realised I was resigning into the doldrums. The material and
financial support of my friend Issac Akoto cannot be quantified and acknowledge
easily. God Bless them.
Finally, the glory, honour and greatest gratitude go to God the Almighty Father for
leading me through waves and storms to accomplish this feat.

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DEDICATION

Dedicated to my parents J. O. Lamptey and Mary Attipoe for the indelible role they
played in making me what I am today.

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ABSTRACT

The purpose of this study was to identify the challenges facing contractors; establish
the implications of these challenges faced and then identify ways of reducing the
challenges faced by contractors in Ho Municipality, Ghana. A descriptive cross
sectional survey was conducted among 50 purposively selected contractors. Both
descriptive and inferential statistics were the main analytical tools. Results show that
late and non-payment; lack of access to finance; material price escalation;
inefficient and ineffective planning and management; high tendering cost; lack of
book keeping systems and bribery and corruption were the challenges faced by
contractors. The study further indicates that the implications of these challenges faced
are delay in completion of contract by contractor, termination of contract by
contractor; create cash flows problems, and poor work performance. Finally, the study
also revealed that the development of work plan, government support in acquiring
funds, regular periodic payment by clients, undergoing in-service training, provision
of trade credit and entering into partnership agreement, are the ways of reducing the
challenges faced by contractors. However at the end of the study, it was recommended
that Government should play a key role by addressing the issue of access to finance
with reduced interest rate and ridiculous collateral requirement to enable contractors
have easy access to adequate finance. Also, contractors are expected take into
considerations the significant problems highlighted in the study in order to be guided
in making decisions that will rob on positively to the long term objectives of the
construction firms.

TABLE OF CONTENTS
Content

Page

Certification

ii

Acknowledgement

iii

Dedication

iv

Abstract

Table of Contents

vi

List of Table

ix

List of Figure

CHAPTER ONE

Introduction

1.1 Background of the study

1.2 Problem statement
1.3 Aim of the study
1.4 Objectives of the study
1.5 Significance of the study
1.6 Limitation of the study
1.7 Organization of the study

1
3
4
4
5
5
5

CHAPTER TWO

LITERATURE REVIEW

2.1The concept of contractor

2.2 Structure and organisation of Ghanaian construction industry

2.3 Clients perceptions on contractors performance

vi

2.4 Performance of Ghanaian contractors

10

2.5 Problems affecting Ghanaian contractors performance

11

2.6 Problems in the Ghanaian construction industry

13

2.7 Challenges faced by contractors

13

2.7.1 Problems on the management and technical aspects

13

2.7.2 Management incompetence

14

2.7.3 Lack of technical knowledge

14

2.7.4 Inefficient financial management

15

2.7.5 Lack of inventory control on building materials

17

2.7.6 Lack of building materials

18

2.7.7 Lack of systematic planning and scheduling

18

CHAPTER THREE

19

3.0 Introduction

19

3.1 Research design

19

3.2 Population of study

19

3.3 Sampling method and procedure

20

3.4 Data collection instrument

20

3.5 Validity and Reliability

20

3.6 Data collection procedure

21
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3.7 Data analysis

21

CHAPTER FOUR

23

Data presentation and analysis

23

4.1 Introduction

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CHAPTER FIVE

32

Summary of findings, conclusions and recommendations

32

5.1 Conclusion

32

5.2 Managerial Recommendations

33

5.3 Research Recommendations

34

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LIST OF TABLE
Table 4.1 Distribution of Respondents by Gender

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Table 4.2 Age Distribution of Respondents

24

Table 4.3 Distribution of Respondents by Marital Status

24

Table 4.4 Distribution of Respondents by Religion

25

Table 4.5 Response to Challenges Facing Contractors

26

Table 4.6 Relative Importance Rankings by Contractors

27

Table 4.7 Kendalls Coefficient for Challenges Facing Contractors

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Table 4.8 Implication of the Challenges Faced by Contractors

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Table 4.9 Response to ways of Reducing the Challenges Faced by Contractors

30

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LIST OF FIGURES
Figure 4.1 Proportions of Respondents by Level of Education

25