Impact of Procurement Risks on Procurement Contract Management Performance in Tanzania: A Case of Dodoma City Council, 2020.

Abstract

This study focuses on examining the impact of procurement risks on procurement contract Management performance in Tanzania. Specifically, the study aimed to identify the key procurement risks affecting procurement contract Management performance at Dodoma City Council; and to recommend feasible procurement risks mitigation strategies for contract management performance at Dodoma City Council. The study adopted a cross-sectional research design. The selected area of study was Dodoma City Council. Respondents were selected purposively based on their competence and expertise in procurement contract management. 80 respondents were involved in this study, including Members of Tender Board, Procurement Management Unit, User departments and selected bidders. Questionnaire and interview were employed as data collection tools. Reliability and validity were taken into account by the researcher to ensure consistency and accuracy of data being collected. Informed consent, risks and benefits analysis, as well as confidentiality, were taken into account during data collection processes. Data were analyzed descriptively in terms of mean and standard deviations for objective one and two. The findings revealed that the common procurement risks which affect the contract management performance were a change in management, the inability of contractors to deliver the projects output, non –compliance to evaluation criteria, inadequate contract management training to contract management team, frequent contract variations, insufficient budget and presence of risk schedule. On the other hand, the appropriate strategies to eliminate the said risks are compliances to the legal and regulatory directive on ensuring contract management, undertaking capacity building to contract management team, avoiding contracting with unqualified contractors, adherence to contract management plan and financing the projects to avoid unnecessary delays. The study concluded that procurement contract management performance is highly affected by persistence procurement risks on the side of the buying organizations. Therefore contract management team comprised of both members from buying organization and contractors shall be established and vested with appropriate ities to execute contract management activities effectively. Inline to that, appropriate risk management strategies shall be developed and implemented throughout contract management operations to reduce the frequencies of mismanagement of procurement contract.