Advances in Consumer Research
Issue 5 : 262-273
Original Article
Peculiar Barriers to the Implementation of Performance-Based Road Contracts in Emerging Economies: A Ghana Case Study.
 ,
1
University of Birmingham, School of Civil Engineering, Edgbaston, Birmingham, UK
2
Ministry of Roads and Highways, Ghana
Abstract

Contracts play a crucial role in shaping the quality, efficiency, and longevity of infrastructure projects. Conventional input-based contracts frequently lead to inefficiencies, increased costs, and early deterioration. Performance-Based Road Contracts (PBRCs) offer a results-focused alternative, yet they encounter implementation challenges in emerging economies. Although current research highlights the advantages of PBRC, there is a paucity of empirical evidence addressing the specific barriers in this context. This study examines the challenges to PBRC implementation in Ghana, aiming to inform more flexible contract governance and policy reforms. A cross-sectional design was used to explore expert views in Ghana's road sector. Data were gathered from 62 experts purposively sampled through a structured questionnaire designed based on existing literature. Mean ranking and one-sample t-tests were used to identify and evaluate the relative severity barrier hindering PBRC implementation. The analysis identified currency depreciation and price volatility (80.6%), a rising debt burden (77.4%), and a weak business climate with restricted access to finance (75.8%) as the primary constraints. Other significant obstacles comprised macroeconomic risks (72.6%), corruption (67.7%), weaknesses in contract enforcement (64.5%), and gaps in institutional capacity (61.3%). Skills shortages, high technology costs, and procurement risks were significant barriers. While political and governance instability barriers were ranked lower, they still held contextual importance. The findings emphasize the necessity for financial stabilization mechanisms, robust institutions, and enhanced governance frameworks to foster the scalability and resilience of PBRC in Ghana and comparable emerging economy settings. This study provides empirical evidence that enhances theoretical understanding and guides practical policy interventions for road infrastructure delivery in resource-limited environments.

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