A study into the possibility of using electronic tendering in the Ghanaian construction industry

Abstract

Computerized systems are gradually overtaking manually driven systems. This move has been highly motivated by efficiency and convenience. The traditional system of tendering is time consuming and has cost implications. In the traditional system, the buyer as well as the seller has to go through manual system of tendering. This exposes the system to unfairness and as a result affects the construction industry in Ghana. The main aim of this research was to explore the benefits of electronic tendering over the traditional method of tendering and recommend the best practices for its implementation in Ghana. A literature review was undertaken which covered the inefficiencies in the traditional tendering process in the construction industry and the benefits of e-tendering. The survey approach was used in the investigation using questionnaires as the main tool of data collection. Focusing on the Kumasi Metropolis as the case study area, fifty four questionnaires were retrieved out of sixty distributed representing a ninety percent response rate. The data were analyzed and presented using descriptive statistics only. High levels of risk, abuse of tendering process, increased errors, low involvement of contractor at design stage, lack of adoption of new tendering methods and low level of professionalism were ranked to be the most severe challenges of traditional tendering. Furthermore, the findings also pointed out that potential for time saving; better financial control; reduced administrative costs; reduced manpower required and greater efficiency of activities were the most important benefits of e-tendering. The findings from the study are useful for construction stakeholders, helping them to know the benefits of electronic tendering over the traditional method of tendering and the best practices for its implementation in Ghana. In spite of the significance of these findings, there are unavoidable limitations and shortcomings due to the scope and manner in which it was undertaken. These limitations are intended to be the basis for recommendations for future research works. It is recommended that there is the need to develop a capacity building knowledge backbone to drive the adoption of e-tendering