Contract administration and contract performance in local governments of Uganda a case study of Mitooma district local government

Abstract

Contract administration is a key component of contract management that ensures that post award contract activities are hand led carefully and responsibly so that the real outcomes from the contract can serve and satisfy the intended users efficiently and effectively hence achieving value for money. In Mitooma District Local Government (DLG), almost 90% of the money spent under procurement is through contracting with different stakeholders. However, 40% of the contracts have not performed well due to poor post award stage management; records were not we ll managed, no clear mechanisms for handling claims, disputes and payments were not based on the agreed milestones (Mitooma DLG, 20 18). In order to understand the interplay between records management, dispute resolution, change management and contract performance, a research was conducted to examine contract administration as a key component of contract management and its influence on contact performance in Mitooma District Local Government. A mixed method approach was adopted by the researcher; a quantitative survey (using digital Kobo collect) was carried out on a sample size of 52 respondents of the targeted population randomly selected in Mitooma District Local Government. This was followed by semi structured interviews with 5 district officials purposively selected. The study findings revealed a correlation coefficient of 0.463 between records management and contract performance which implied that there was a positive relationship between records management and contract performance. The correlation was significant since the p-value 0.001 was less than 0.01. Further analysis revealed a 0.380 correlation coefficient between dispute resolution and contract performance which implied that there was positive relationship between dispute resolution and contract performance. The correlation was significant since the p-value 0.005 was less than 0.0 1. Abivariate analysis between change management and contract performance revealed a 0.583 correlation coefficient which implied that there was a positive relationship between change management and contract performance. The correlation was significant since the p-value 0.000 was less than 0.01. The study recommended that Mitooma DLG should put in place a central database where all contract records can be kept, ensure that the records are kept under key and lock. proper documentation be done to ensure that each party understands their roles. Risk projections should be assessed before contract implementation and risk mitigation strategies devised. Dispute resolution mechanism should be developed and agreed upon before conflicts arise.