Title: Risk accountability in the tender process of contractors in Ghana and UK

Authors: Samuel Laryea

Addresses: School of Construction Management and Engineering, University of Reading, P.O. Box 219, RG6, 6AW, UK

Abstract: The process of how contractors take account of risk when calculating their bids for construction work is investigated based on preliminary investigations and case studies in Ghana and UK. Ghana and UK were chosen, more or less arbitrarily, for the purpose of case studies, and to test the idea that there are systematic differences between the approaches in different places. Clear differences were found in the risk pricing approaches of contractors in the two countries. The difference appeared to emanate from the professional knowledge and competence of the bid team members, company policy, corporate accountability and the business environments in which the contractors operate. Both groups of contractors take account of risk in estimates. However, risk accountability was found to be higher on the agenda in the tender process of UK contractors, documented more systematically, and assessed and managed more rigorously with input from the whole bid team. Risk accountability takes place at three levels of the tender process and is dictated strongly by market forces and company circumstances.

Keywords: contractors; Ghana; risk accountability; tendering; UK; United Kingdom; risk management; construction projects; construction industry; professional knowledge; professional competence; company policy; corporate accountability; business environments.

DOI: 10.1504/IJPOM.2011.042034

International Journal of Project Organisation and Management, 2011 Vol.3 No.3/4, pp.290 - 306

Received: 01 Oct 2009
Accepted: 20 Sep 2010
Published online: 14 Jan 2015 *

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