Home⇛Journal of Education, Management, and Development Studies⇛vol. 5 no. 1 (2025)

Contractual Payment Terms: A Procedural Study in the Mining Industry of Ghana

Charles Adusei | Jacob Bannerman | Hollack Obeng | Akosua Kosei K. Asamoah

Discipline: management studies

 

Abstract:

Contracts play a significant role in facilitating business activities and commercial transactions by determining the rights and obligations of each contracting party. This qualitative study seeks to explore the procedures on contractual payment terms of Newmont Ghana as mining companies procure their goods and services through contractors/suppliers. Interviews were conducted with the three contract administrators and complemented with archival records, and the data analysis was inductive, using thematic analysis from a constructivist viewpoint. In addition, the result reveals that contract requests, negotiations, and evaluation were the basis for awarding a contract. However, the challenges have their root in non-compliance and communications gaps in the processes and procedures on contractual payment terms. The study concludes that there is a comprehensive laid-down procedure for how Newmont Ghana arrives at its payment terms. It also proposes that there must be effective coordination and collaboration between the contracts department and the accounts payable office internally while externally Newmont must improve its supplier relationship management through best practices on account payables. Lessons learned with the prescription of four generic points to improve contractual payment terms of any organisation. Furthermore, this is one of the very few papers of a procedural study on contractual payment terms of contractors in the mining industry of Ghana using in-depth interviews and documentation reviews.



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