The impact that regulatory policies might have on the performance of small contractors in the construction industry of Ghana is considered. The aim of this paper is to explore the link between classification of contractors and constraints and investment decisions. The objective is to demonstrate that while the purpose of the classification exercise is not achieved, at least in Ghana, the system has the potential of threatening the development and survival of small contractors. The remainder of the paper contains: definition of small contractor; justification for supporting small contractors; review of regulation literature with emphasis on small businesses; regulation in the context of the construction industry; appraisal of the classification system in Ghana, formulation of hypotheses and testing; conclusion and questions for further investigation.
Manchester, UK, CRC Working Paper, No. 80, 25 pp.