Effect of Contract Management Practices on The Performance of Contracts for Road Construction at Tarura Head Quarter in Dodoma- Tanzania

Abstract

This study assessed the effect of procurement contract management practices in contract performance at Tanzania Rural and Urban Road Agency (TARURA). The specific objectives included; to determine the effect of contractor selection on the procurement contract performance, examine the influence of monitoring and evaluation on procurement contract performance, and the effects of remedies for breach of contracts on procurement contract performance Purposive and Stratified sampling techniques were used to select the study area and key informants. The study used both In-depth interviews and questionnaires in the collection data. The study indicates that on the effect of contractor selection on procurement contract performance, different variables of contractor selection such as tendering, pre-qualification and contractor relationship positively and significantly affected procurement contract performance at TARURA. On the effect of monitoring and evaluation on procurement contract performance and the effect of remedies for breach of contracts on procurement contract performance, a coefficient of 0.624 was obtained implying that, leaving other factors constant, a unit change in specific performance of the contract would on average lead to an increase in the procurement contract performance by 62.4%. It was further observed that other variables such as; rectification of instrument, rescission of contracts, cancellation of instruments and injunctions had a positive and significant relationship with the timeliness of procurement. Transparency had a positive and significant relationship with the procurement contract performance (timely delivery). On the effect of Monitoring and Evaluation on TARURA’s procurement contract performance; availability of technical personnel, work schedule, progress report, inspection and testing of executed works and completion certificate had a positive and significant relationship with the procurement contract performance. In conclusion, procurement contract management at TARURA had a significant and favorable impact on the performance of contracts. The study recommends that TARURA should continue to monitor tendering procedures to ensure that the law is strictly used as a guide. The procurement oversight committee of TARURA should continue to properly supervise the application of the law and regulations on procurement to improve the level of contractor selection, efficiency, and resource management efficiency.