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THE IMPACT OF PROCUREMENT METHODS IN AWARDING ROAD PROJECTS ON DOMESTIC CONTRACTORS

GETACHEW G/TSADIK


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{
  "@context": "https://schema.org/", 
  "@id": "https://doi.org/10.20372/nadre/4495", 
  "@type": "ScholarlyArticle", 
  "creator": [
    {
      "@type": "Person", 
      "affiliation": "ADDIS ABABA SCINCE AND TECHNOLOGY UNIVERSITY", 
      "name": "GETACHEW G/TSADIK"
    }
  ], 
  "datePublished": "2020-01-17", 
  "description": "<p>The participation of domestic contractors in the road construction industry has many impacts<br>\non the industry as well as in the economic development of the country. However, most of the<br>\nprojects are awarded for foreign contractors and the participation of domestic contractors in<br>\nthe road sector has much less than the foreigners. There are problems that contributing to this<br>\nlow participation of domestic contractors.As indicated by different writers, the problems emerge<br>\nthose related with the procurement process. Accordingly, this research attempts to assess the<br>\nconstruction works procurement practices in federal road project and to investigate problems,<br>\nimpacts of construction works procurement practices toward the domestic contractors and<br>\nfinally to show directions in improving domestic contractors&rsquo; participation in federal road<br>\nprojects construction work. To achieve this objective, the research work had been developed<br>\nthrough the literature review of different organizational report, questionnaire survey and case<br>\nstudy. The outcome of these research shows that the procurement process has impact on the<br>\nparticipation of domestic contractors in road projects. The impacts were identified and high<br>\nAnnual turnover requirement and performance requirement has been the main problem for low<br>\nlevel participation of domestic contractors on tenders as it has the first rank among all with RII<br>\n= 0.92 and 0.9 respectively. Also Past projects experience (RII=0.87) and cash flow requirement<br>\n(RII=0.86) are identified as the most demanding problems to local contractors that impede their<br>\nparticipation in road projects. Due to this problem, the domestic contractors are not capable to<br>\nqualify technically due to Annual turnover requirement, past projects experience, cash flow<br>\nrequirement and performance requirement. Since they are not qualified for technical<br>\nrequirement they will not be able to participate financial requirement, this affects the<br>\ncontractors not to succeed on the tender. Simply stated, contractors go out of business because<br>\nthey run out of money. Finally, the study recommends for enhancing the development of<br>\nDomestic contractors: by building Capacity of local contractors: Technology transfer through<br>\njoint ventures. Also the Public Procurement and Property Administration Agency should be open<br>\nto see and study the different alternative procurement methods applicable in the world which<br>\nwill be suitable for domestic contractors and reforming the contract documents of Government<br>\nfinanced projects as required</p>", 
  "headline": "THE IMPACT OF PROCUREMENT METHODS IN AWARDING ROAD PROJECTS ON DOMESTIC CONTRACTORS", 
  "identifier": "https://doi.org/10.20372/nadre/4495", 
  "image": "https://zenodo.org/static/img/logos/zenodo-gradient-round.svg", 
  "inLanguage": {
    "@type": "Language", 
    "alternateName": "eng", 
    "name": "English"
  }, 
  "keywords": [
    "Procurement  Ethiopian road authority Domestic Contractors Road Construction"
  ], 
  "license": "http://www.opendefinition.org/licenses/cc-by", 
  "name": "THE IMPACT OF PROCUREMENT METHODS IN AWARDING ROAD PROJECTS ON DOMESTIC CONTRACTORS", 
  "url": "https://nadre.ethernet.edu.et/record/4495"
}
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