Principal component analysis of factors influencing the choice of procurement methods for the procurement of construction materials in Ghana

Purpose – Procurement and supply of construction materials are crucial aspects of the construction sector and therefore require attention for their development. Project objectives are fulfilled through the appropriate selection of procurement methods, thereby ensuring value for money. This research aimed to analyse the factors that influence the choice of procurement methods for the procurement of construction materials in Ghana. Design/methodology/approach – Data from building construction professionals in Ghana was collected for the study, with a total of 360 usable data received and used in the study's analysis. Factor analysis was employed to summarize the variables into components. Four main factors were identified: project specification factors, project tendering factors, project risk management considerations and client and stakeholder factors. Correlation analysis was conducted to establish the relationships among these variables and their impact on the corresponding factors. Findings – The study identified four main factors influencing the choice of procurement methods: project specification factors, project tendering factors, project risk management considerations and client and stakeholder factors. These factors correlated positively and significantly. The findings suggest that these factors play a crucial role in the effective selection of procurement methods. Practical implications – Generally, this research contributes to the understanding of the factors influencing the choice of procurement methods in Ghana. The Ghanaian government can utilise these findings to develop programmes aimed at addressing the factors that mitigate the negative consequences of inefficient procurement procedures for building materials. Procurement entities could incorporate this study into their decision-making processes regarding the selection of procurement methods to ensure effective project outcomes. Originality/value – This study provides novel insights into the factors influencing procurement method selection in Ghana's construction sector. By identifying and analysing these factors, the research offers valuable information for policymakers and practitioners to enhance procurement practices and achieve better project outcomes.