Thesis Open Access

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

GETACHEW G/TSADIK


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    <subfield code="a">&lt;p&gt;The participation of domestic contractors in the road construction industry has many impacts&lt;br&gt;
on the industry as well as in the economic development of the country. However, most of the&lt;br&gt;
projects are awarded for foreign contractors and the participation of domestic contractors in&lt;br&gt;
the road sector has much less than the foreigners. There are problems that contributing to this&lt;br&gt;
low participation of domestic contractors.As indicated by different writers, the problems emerge&lt;br&gt;
those related with the procurement process. Accordingly, this research attempts to assess the&lt;br&gt;
construction works procurement practices in federal road project and to investigate problems,&lt;br&gt;
impacts of construction works procurement practices toward the domestic contractors and&lt;br&gt;
finally to show directions in improving domestic contractors&amp;rsquo; participation in federal road&lt;br&gt;
projects construction work. To achieve this objective, the research work had been developed&lt;br&gt;
through the literature review of different organizational report, questionnaire survey and case&lt;br&gt;
study. The outcome of these research shows that the procurement process has impact on the&lt;br&gt;
participation of domestic contractors in road projects. The impacts were identified and high&lt;br&gt;
Annual turnover requirement and performance requirement has been the main problem for low&lt;br&gt;
level participation of domestic contractors on tenders as it has the first rank among all with RII&lt;br&gt;
= 0.92 and 0.9 respectively. Also Past projects experience (RII=0.87) and cash flow requirement&lt;br&gt;
(RII=0.86) are identified as the most demanding problems to local contractors that impede their&lt;br&gt;
participation in road projects. Due to this problem, the domestic contractors are not capable to&lt;br&gt;
qualify technically due to Annual turnover requirement, past projects experience, cash flow&lt;br&gt;
requirement and performance requirement. Since they are not qualified for technical&lt;br&gt;
requirement they will not be able to participate financial requirement, this affects the&lt;br&gt;
contractors not to succeed on the tender. Simply stated, contractors go out of business because&lt;br&gt;
they run out of money. Finally, the study recommends for enhancing the development of&lt;br&gt;
Domestic contractors: by building Capacity of local contractors: Technology transfer through&lt;br&gt;
joint ventures. Also the Public Procurement and Property Administration Agency should be open&lt;br&gt;
to see and study the different alternative procurement methods applicable in the world which&lt;br&gt;
will be suitable for domestic contractors and reforming the contract documents of Government&lt;br&gt;
financed projects as required&lt;/p&gt;</subfield>
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    <subfield code="a">Wubishet Jekale Mengesha  (PhD)</subfield>
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    <subfield code="a">Procurement  Ethiopian road authority Domestic Contractors Road Construction</subfield>
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