Assessment of the effects of procurement processes on the performance of construction contracts in local governments in Uganda: a case of Sheema district

Abstract

Globally, public procurement offers a framework used to implement initiatives and programmes for socio-economic development. Despite this, public sector procurement faces a number of challenges which include; lack of transparency and limited recognition of the strategic importance of the procurement function, among others. This study therefore focused on assessing the effects of procurement processes on performance of construction contracts in Local Governments in Uganda using Sheema district as a case study. The study assessed the effects of procurement planning, and contract monitoring and administration on the performance of construction contracts. The study adopted descriptive research design and used simple random sampling to sample 81 respondents out of a target of 86. These were selected using simple random and purposive sampling techniques. Both quantitative and qualitative and quantitative data were collected. Quantitative data were collected using questionnaires and analysed using SPSS while qualitative data were collected using interview and document review guides. The quality of the data collection instruments was assessed using Content Validity Index and Reliability analysis. Quantitative data were analysed using descriptive means and the hypotheses tested using multiple regression analysis while qualitative data were analyzed using narrative text. The study revealed that contingency plans were never developed, procurement checklists were not commonly prepared; and few stakeholders were involved, among others which indicated that there was poor procurement planning in Sheema District. Regarding contract monitoring and administration, the results revealed many deficiencies such as limited follow up monitoring, contractor performance was rarely cross checked; and timely monitoring reports were not regularly prepared for management to take action, among others all of which indicated gaps in the contract monitoring and administration activities in the District. The study concluded that procurement planning has a significant effect on the performance of construction contracts and equally, contract monitoring and administration has a significant effect on the performance of construction contracts in Sheema DLG On the basis of multivariate model relating performance of construction contracts, procurement planning(X1), and contract monitoring and administration (X2) as indicated below: Y=0.311+ 0.113X1 + 0.625 X2 + ε (where ε is the error term).The study also developed a framework to control procurement process in DLGs in Uganda. The study recommended that further research be carried out to improve the developed framework as well as explore the challenges of construction procurement in DLGs. Key Words: Procurement Planning, Contract Administration, Procurement Processes, Contract Performance, Construction Contracts, District Local Government.