Share:


Assessing procurement irregularities in the supply-chain of Ghanaian construction projects: a soft-computing approach

    Emmanuel Kingsford Owusu Affiliation
    ; Albert P. C. Chan Affiliation
    ; M. Reza Hosseini Affiliation
    ; Bahareh Nikmehr Affiliation

Abstract

This study examines procurement irregularities, as one of the most unexplored threats in the procurement process of construction projects. It also tests the suppositions associated with the contributions of irregularities to corruption in construction procurement. An expert survey is conducted with 62 construction-related practitioners selected via non-probabilistic sampling in the context of a Ghana, to assess the criticalities of the irregularities. Eighteen irregularities were identified within the context selected for this study. A soft computing technique known as the Fuzzy Synthetic Evaluation (FSE) method is employed to examine the identified irregularities. Other relevant techniques including factor analyses, normalization, and descriptive tools are employed to factorize the identified irregularities and test the hypotheses. Out of the 18 irregularities, 11 were revealed to be critical. The findings reveal that the top three irregularities were: payments for uncompleted works, sourcing of proforma invoices from the same supplier and the lack of proper coordination among key departments. Moreover, four constructs were developed using the identified measurement items. They are administrative-specific, procedural, compliance and contract monitoring irregularities. Out of the four, the topmost critical construct turns out to be compliance irregularities. Theoretically, this study advances the scholarship of construction by shedding lights on the irregularities associated with the procurement processes of construction projects. It also contributes to an in-depth understanding of the noted irregularities. In practical terms, this study contributes to the procurement planning and policy-making process, it assists decision makers in putting in place measures to prevent or extirpate the likelihood of any of the irregularities’ occurrences.

Keyword : procurement, irregularities, building, civil engineering, projects, corruption, soft computing

How to Cite
Owusu, E. K., Chan, A. P. C., Hosseini, M. R., & Nikmehr, B. (2020). Assessing procurement irregularities in the supply-chain of Ghanaian construction projects: a soft-computing approach. Journal of Civil Engineering and Management, 26(1), 66-82. https://doi.org/10.3846/jcem.2020.11659
Published in Issue
Jan 17, 2020
Abstract Views
2128
PDF Downloads
1333
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Ameyaw, E. E., & Chan, A. P. (2016). A fuzzy approach for the allocation of risks in public–private partnership water-infrastructure projects in developing countries. Journal of Infrastructure Systems, 22(3), 04016016. https://doi.org/10.1061/(ASCE)IS.1943-555X.0000297

Ameyaw, E. E., Chan, A. P., Owusu-Manu, D. G., & Coleman, E. (2015). A fuzzy model for evaluating risk impacts on variability between contract sum and final account in government funded construction projects. Journal of Facilities Management, 13(1), 45-69. https://doi.org/10.1108/JFM-11-2013-0055

Ameyaw, E. E., Pärn, E., Chan, A. P., Owusu-Manu, D. G., Edwards, D. J., & Darko, A. (2017). Corrupt practices in the construction industry: Survey of Ghanaian experience. Journal of Management in Engineering, 33(6), 05017006. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000555

Bing, L., Akintoye, A., Edwards, P. J., & Hardcastle, C. (2005). The allocation of risk in PPP/PFI construction projects in the UK. International Journal of Project Management, 23(1), 2535. https://doi.org/10.1016/j.ijproman.2004.04.006

Brown, J., & Loosemore, M. (2015). Behavioural factors influencing corrupt action in the Australian construction industry. Engineering, Construction and Architectural Management, 22(4), 372-389. https://doi.org/10.1108/ECAM-03-2015-0034

Chan, A. P., & Owusu, E. K. (2017). Corruption forms in the construction industry: Literature review. Journal of Construction Engineering and Management, 143(8), 04017057. https://doi.org/10.1061/(ASCE)CO.1943-7862.0001353

Chan, J. H., Chan, D. W., Chan, A. P., Lam, P. T., & Yeung, J. F. (2011). Developing a fuzzy risk assessment model for guaranteed maximum price and target cost contracts in construction. Journal of Facilities Management, 9(1), 34-51. https://doi.org/10.1108/14725961111105709

Darko, A., Chan, A. P. C., Yang, Y., Shan, M., He, B. J., & Gou, Z. (2018). Influences of barriers, drivers, and promotion strategies on green building technologies adoption in developing countries: The Ghanaian case. Journal of Cleaner Production, 200, 687-703. https://doi.org/10.1016/j.jclepro.2018.07.318

Field, A. P. (2005). Discovering statistics using SPSS (2nd ed.). London: Sage.

Ghana Audit Service (GAS). (2005a). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2005 (for 2005 and 2004). Retrieved from www.ghaudit.org/gas/site/reports/download_report/475

Ghana Audit Service (GAS). (2005b). Report of the Auditor-General on the Public Accounts of Ghana – public boards, corporations and other statutory institutions for the period ended 31 December 2005. Retrieved from www.ghaudit.org/gas/site/reports/download_report/436

Ghana Audit Service (GAS). (2006a). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2006. Retrieved from www.ghaudit.org/gas/site/reports/download_report/437

Ghana Audit Service (GAS). (2006b). Report of the Auditor-General on the Public Accounts of Ghana – public boards, corporations and other statutory institutions for the period ended 31 December 2006. Retrieved from www.ghaudit.org/gas/site/reports/download_report/28

Ghana Audit Service (GAS). (2007a). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2007. Retrieved from www.ghaudit.org/gas/site/reports/download_report/439

Ghana Audit Service (GAS). (2007b). Report of the Auditor-General on the Public Accounts of Ghana – public boards, corporations and other statutory institutions for the period ended 31 December 2007. Retrieved from www.ghaudit.org/gas/site/reports/download_report/23

Ghana Audit Service (GAS). (2008a). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2008. Retrieved from www.ghaudit.org/gas/site/reports/download_report/431

Ghana Audit Service (GAS). (2008b). Report of the Auditor-General on the Public Accounts of Ghana – public boards, corporations and other statutory institutions for the period ended 31 December 2008. Retrieved from www.ghaudit.org/gas/site/reports/download_report/21

Ghana Audit Service (GAS). (2011a). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2011 (for 2011 and 2010). Retrieved from www.ghaudit.org/gas/site/reports/download_report/473

Ghana Audit Service (GAS). GAS (2011b). Report of the AuditorGeneral on the Public Accounts of Ghana – public boards, corporations and other statutory institutions for the period ended 31 December 2011. Retrieved from www.ghaudit.org/gas/site/reports/download_report/451

Ghana Audit Service (GAS). (2013). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2013 (for 2013 and 2012). Year of release 2014. Retrieved from www.ghaudit.org/gas/site/reports/download_report/503

Ghana Audit Service (GAS). (2014). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2014. Year of release 2016. Retrieved from www.ghaudit.org/gas/site/reports/download_report/518

Ghana Audit Service (GAS). (2016). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2016. Year of release 2018. Retrieved from https://ghaudit.org/web/download/34/central-government-audits/515/the-public-accounts-of-ghana-ministries-departments-andother-agencies-mdas-2016.pdf

Ghana Audit Service (GAS). (2017). Report of the Auditor-General on the Public Accounts of Ghana ministries, departments and other agencies (MDAs) for the financial year ended 31 December 2014. Year of release 2018. Retrieved from https://ghaudit.org/web/download/34/central-government-audits/583/the-public-accounts-of-ghana-ministries-departments-andother-agencies-mdas-2017.pdf

Hoxley, M. (2008). Questionnaire design and factor analysis. In A. Knight and L. Ruddock (Eds.), Advanced research methods in the built environment. Chichester, UK: Wiley-Blackwell.

Hsiao, S. W. (1998). Fuzzy logic based decision model for product design. International Journal of Industrial Ergonomics, 21(2),
103-116. https://doi.org/10.1016/S0169-8141(96)00072-8

Jain, A. K. (2001). Corruption: A review. Journal of Economic Surveys, 15(1), 71-121. https://doi.org/10.1111/1467-6419.00133

Kim, D. (2016). Why should you care about public procurement reform? Retrieved from https://www.undp.org/content/undp/en/home/blog/2016/12/15/Why-should-you-care-about-public-procurement-reforms-.html

Krishnan, C. (2010). Tackling corruption in the construction. Retrieved from https://www.transparency.org.uk/wp-content/plugins/download-attachments/includes/download.php?id=1032

Le, Y., Shan, M., Chan, A. P., & Hu, Y. (2014a). Investigating the causal relationships between causes of and vulnerabilities to corruption in the Chinese public construction sector. Journal of Construction Engineering and Management, 140(9), 05014007.
https://doi.org/10.1061/(ASCE)CO.1943-7862.0000886

Le, Y., Shan, M., Chan, A. P., & Hu, Y. (2014b). Overview of corruption research in construction. Journal of Management in Engineering, 30(4), 02514001. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000300

Li, T. H., Ng, S. T., & Skitmore, M. (2013). Evaluating stakeholder satisfaction during public participation in major infrastructure and construction projects: A fuzzy approach. Automation in Construction, 29, 123-135. https://doi.org/10.1016/j.autcon.2012.09.007

Lo, S. M. (1999). A fire safety assessment system for existing buildings. Fire Technology, 35(2), 131-152. https://doi.org/10.1023/A:1015463821818

Neupane, A., Soar, J., & Vaidya, K. (2014). An empirical evaluation of the potential of public e-procurement to reduce corruption. Australasian Journal of Information Systems, 18(2), 21-44. https://doi.org/10.3127/ajis.v18i2.780

Nunnally, J. C. (1978). Psychometric theory. McGraw-Hill Book Company.

Nurmandi, A., & Kim, S. (2015). Making e-procurement work in a decentralized procurement system: A comparison of three Indonesian cities. International Journal of Public Sector Management, 28(3), 198-220. https://doi.org/10.1108/IJPSM-03-2015-0035

Osei-Tutu, E., Badu, E., & Owusu-Manu, D. (2010). Exploring corruption practices in public procurement of infrastructural projects in Ghana. International Journal of Managing Projects in Business, 3(2), 236-256. https://doi.org/10.1108/17538371011036563

Osei-Kyei, R., Chan, A. P., & Dansoh, A. (2019). Project selection index for unsolicited public–private partnership proposals. International Journal of Construction Management. https://doi.org/10.1080/15623599.2019.1573480

Owusu, E. K., & Chan, A. P. (2019). Barriers affecting effective application of anticorruption measures in infrastructure projects: Disparities between developed and developing countries. Journal of Management in Engineering, 35(1), 04018056. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000667

Owusu, E. K., Chan, A. P., & Shan, M. (2017). Causal factors of corruption in construction project management: An overview. Science and Engineering Ethics, 25(1), 1-31. https://doi.org/10.1007/s11948-017-0002-4

Owusu, E. K., Chan, A. P., DeGraft, O. M., Ameyaw, E. E., & Robert, O. K. (2018). Contemporary review of anti-corruption measures in construction project management. Project Management Journal, 50(1), 40-56. https://doi.org/10.1177/8756972818808983

Owusu, E. K., Chan, A. P., & Ameyaw, E. (2019). Toward a cleaner project procurement: Evaluation of construction projects’ vulnerability to corruption in developing countries. Journal of Cleaner Production, 216, 394-407. https://doi.org/10.1016/j.jclepro.2019.01.124

Pallant, J. (2011). SPSS survival manual: A step by step guide to data analysis using SPSS version 18 (4th ed.). Maidenhead, UK: Open University Press.

Sadiq, R., & Rodriguez, M. J. (2004). Fuzzy synthetic evaluation of disinfection by-products – a risk-based indexing system. Journal of Environmental Management, 73(1), 1-13. https://doi.org/10.1016/j.jenvman.2004.04.014

Shan, M., Chan, A. P., Le, Y., & Hu, Y. (2015). Investigating the effectiveness of response strategies for vulnerabilities to corruption in the Chinese public construction sector. Science and Engineering Ethics, 21(3), 683-705. https://doi.org/10.1007/s11948-014-9560-x

Shan, M., Hwang, B. G., & Wong, K. S. N. (2017). A preliminary investigation of underground residential buildings: advantages, disadvantages, and critical risks. Tunnelling and Underground Space Technology, 70, 19-29. https://doi.org/10.1016/j.tust.2017.07.004

Shao, R. (2004, May). A multi-level fuzzy synthetic evaluation on investment programs in shipping. In Eighth International Conference on Applications of Advanced Technologies in Transportation Engineering (AATTE) (pp. 497-502). Beijing, China. https://doi.org/10.1061/40730(144)93

Sohail, M., & Cavill, S. (2008). Accountability to prevent corruption in construction projects. Journal of Construction Engineering and Management, 134(9), 729-738. https://doi.org/10.1061/(ASCE)0733-9364(2008)134:9(729)

Stansbury, C., & Stansbury, N. (2008). Examples of corruption in infrastructure. Global Infrastructure Anti-Corruption Centre. Retrieved from http://www.giaccentre.org/documents/giacc.corruptionexamples.pdf

Tabish, S. Z. S., & Jha, K. N. (2011). Analyses and evaluation of irregularities in public procurement in India. Construction Management and Economics, 29(3), 261-274. https://doi.org/10.1080/01446193.2010.549138

Tanzi, V. (1998). Corruption around the world: Causes, consequences, scope, and cures. Staff Papers, 45(4), 559-594. https://doi.org/10.2307/3867585

Transparency International. (2019). Corruption perceptions index 2018 (CPI 2018). Retrieved from https://www.transparency.org/cpi2018

Vee, C., & Skitmore, C. (2003). Professional ethics in the construction industry. Engineering, Construction and Architectural Management, 10(2), 117-127. https://doi.org/10.1108/09699980310466596

Worthy, B., John, P., & Vannoni, M. (2017). Transparency at the parish pump: a field experiment to measure the effectiveness of freedom of information requests in England. Journal of Public Administration Research and Theory, 27(3), 485-500.

Xu, Y., Chan, A. P., & Yeung, J. F. (2010). Developing a fuzzy risk allocation model for PPP projects in China. Journal of Construction Engineering and Management, 136(8), 894-903. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000189

Zhang, B., Le, Y., Xia, B., & Skitmore, M. (2016). Causes of business-to-government corruption in the tendering process in China. Journal of Management in Engineering, 33(2), 05016022. https://doi.org/10.1061/(ASCE)ME.1943-5479.0000479