Government has said it is no longer permitted for contractors in the public sector to vary the cost of projects awarded to them by more than 10 percent.
The ceiling was captured in the new e-procurement initiative recently launched.
The cap on the allowable cost for project variation comes after incidents of costs of projects ballooning to sometimes exceeding 100 percent the original cost of the contract awarded.
Minister for Communications, Ursula Owusu-Ekuful, speaking at the launch of the initiative further added that underbidding for projects within the public sector will also no longer be accepted.
“I am particularly happy about the post-contract awards; the platform has reduced the variation that sometimes you get in contracts which probably exceeds the contract price and doubles it on some occasions.
Some people may underbid to get the contract knowing very well that they will need more money than quoted in the contract and so they come back with variation, sometimes 100% of the contract price. Following the introduction of e-procurement platform, the Allowable limit of variation in government contracts is 10%. All of this will help save the government money,” she said.
