Impact of construction contract type on project time and cost performance in Ugandan local governments: a case of Kiryandongo district

Abstract

The construction contract describes the number of works, obligations, rights, and highlighting risks between parties. The inability to fulfill the responsibilities described in the contract on time and budget has worsened globally hence becoming a chronic problem. The researcher therefore intended to examine the impact of construction contract type performance of project in terms of duration and cost in Ugandan local governments considering a case of Kiryandongo district. A research design that was adopted employed qualitative in cooperation with quantitative techniques. Collection of data was done in Kiryandongo district and analyzed using SPSS statistical application. The study established that the most common type of construction contract type is the old-style construction contract. In the same way, opinion of the respondents generally showed that there’s marginal to moderate impact of the two construction contract types on cost and time performance. Combining old-style and unified construction contracts offer a better time performance, as supported by 34 (54.8%) respondents. Traditional construction contract type in addition, gives a better cost performance evidenced by 35 (56.5%) respondents and as such over 32 (51.6%) of respondents recommended the use of traditional construction contract type as opposed to integrated construction contract type. The time and cost performance monitoring tool for construction contract projects was developed as: Z=-20.236+2.265CT+1.406CO+0.612BE; where Z is a time and cost performance, a dependent variable, CT is completion time, CO is cost overruns and BE is budget estimates. The developed model will assist in monitoring traditional in cooperation with integrated construction contract type projects. Key words: Construction, Contract, Time and Cost performance.