Contemporary challenges facing small and medium scale building construction firms in Ghana. (a case study of some small and medium scale building construction firms in Kintampo South and North assemblies)

Abstract

The building construction industry provides employment to the citizenry in Ghana, as they employ both skilled and unskilled labour in their operations, thereby reducing the unemployment situation facing this country. Most of the Contractors in the industry are Small and Medium Scale Building Construction Firms whose impact in the nation’s development cannot be underestimated. The main aim of this research was to identify the contemporary challenges facing small and medium scale building construction firms in Ghana. The methodology used included an extensive literature review and field survey conducted on ninety-seven (97) small and medium scale firms in the Kintampo South and North Municipal Assemblies. The field survey used the questionnaire instrument and random sampling. The critical findings from the literature were that there are binding constraints in the operations of small and medium scale firms. The report shows that these firms are faced with numerous challenges, which include: late payments of certified works done, Contractor’s lack of managerial and technical capability to make profit on projects, challenges in job procurement, financial challenges, firm’s registration challenges, site management and Leadership challenges. It was recommended that: Regular training for managerial and supervisory staff of small and medium scale construction firms is a positive index for improved output. Formulating of friendly financial policy for these contractors will go a long way to ensure their existence. There should be clear-cut or well defined standards for the registration of contractors which will reduce the proliferation of all sorts of incompetent contractors in the construction industry. Delays with interim and final payments, as well as onerous contract conditions faced by small and medium scale building construction firms, should be eradicated, as this can also impose huge constraints on the industry.