FLASHBACK: 80% of contractors unable to meet deadlines – Minister

Former Deputy Minister of Roads and Highways, Isaac Adjei-Mensah in 2016 stated that 80% of road contractors do not meet their deadlines.

He attributed this to the inability of local contractors to purchase some high grade equipment needed for work.

Mr Adjei-Mensah said “there is also currently no plausible and reliable plant hire system to support the industry.”

He said this during the Second CAT Road Construction Seminar in Accra.

Read the full story originally published on May 28, 2016 by GNA.

Eighty per cent of local contractors could not reliably meet the completion dates for projects that were let out to them, Mr Isaac Adjei-Mensah, the Deputy Minister of Roads and Highways, said.

He said this could largely be attributed to the inability of some local contractors to acquire high grade equipment due to its exorbitant cost which were beyond the capabilities of the average local contractor in Ghana.

“Furthermore, there is also currently no plausible and reliable plant hire system to support the industry,” Mr Adjei Mensah said on Thursday during the Second CAT Road Construction Seminar in Accra.

The seminar, on the theme: “Complete Solutions,” was organised by Mantrac Ghana Limited, the sole authorised dealer for Caterpillar products in Ghana.

It brought together stakeholders in the road construction industry namely the Road Contractors Association of Ghana and the Progressive Contractors Association, the two major bodies in the industry.

Mr Adjei-Mensah said: “Most local contractors, therefore, generally acquire their equipment at auctions in Europe and the United States.

“The average age of heavy earthmoving equipment acquired through this process is about 10-15 years; as you can imagine, there is no reliable spare parts and after sales support for such equipment,” he said.

Mr Adjei-Mensah said such equipment, therefore, tended to break down frequently and ultimately led to delays in implementation of projects, adding that the cost implications of such situations were not desirable for the Ghanaian economy.

He hailed Mantrac Ghana for maintaining its dominance in dealing in earthmoving and construction equipment for the past 78 years.

Mr Adjei-Mensah, however, appealed to Mantrac Ghana to explore the business opportunities and arrange for flexible terms for the road contractors to own construction equipment and improve on their delivery.

He urged the company to strengthen its presence nationwide and continuously improve on its after sales services to ensure that contractors who bought their products benefited from its rich experience and expertise.

He said most earth-moving operators did not possess the relevant skills and expertise to properly operate the machinery, which often led to their frequent breakdown requiring huge financial outlays to fix.

To address this situation, Mr Adjei- Mensah said the ministry had established a fully equipped training centre in Koforidua to train industry players.

He said the Government was, therefore, leaving no efforts at encouraging and partnering with the private sector to fund and manage road sector needs, adding; “road transport is the dominant mode of transport in Ghana and accounts for 97 per cent of passenger traffic and 95 per cent freight”.

Mr Emad Adeeb, the Managing Director of Mantrac Ghana, said: “In today’s competitive world of construction, contractors are facing a lot of challenges to maximise their productivity and lower their operating cost.”

“New technologies in machinery and production can significantly improve your bottom-line profitability and your projects’ overall success,” he said.

He said the seminar would introduce participants to the latest machinery and the upgraded technology available in today’s market place.

Mr Adeeb said it was also the company’s quest to position itself for the mining and oil and gas sectors and had invested 40 million dollars for the construction CAT’s Engine Center to support Ghana and the West African sub-region.

“This project comprises over 26 acres of land with 10,000 square metre repair centre and 5,000 square metre warehouse. It is expected to be completed by close of the year,” he said.