The aim of this study was to assess the determination of factors influencing construction project performance in public institutions which was carried out at Musoma and Butiama District Councils. The study comprises individuals from Musoma District Council and Butiama District Council. The study was guided by four objectives which are the effect of project planning on construction projects, the effect of relationship management on construction projects, the effect of institutional factors on construction projects in public institutions and the challenges affecting construction project performance in Tanzania public institutions. The study adopted explanatory research design were 114 respondents obtained through random sampling and purposive sampling. Explanatory research design employed to determine the relationships between variables. Data were collected through questionnaire and documentary review to supplement the study, both quantitative and qualitative approach was used. The collected data were analyzed using factor analysis, linear regression analysis and correlation analysis. The study found a significant relationship between project preparation, project schedule, trust, communication, political interference, project supervision and technical competency with project performance as all predicators were < 0.05. Furthermore, the study revealed that lack of technical staffs, delay of project completion and inadequate fund are the major challenges facing construction projects in public institutions. The dissertation concluded that construction project performance in Tanzania public institution is influenced by project planning, relationship management and institutional factors, and revealed that 63% of the respondents agreed that lack of technical staffs is the main challenges facing construction project in public institution. The study recommended that public institutions should ensure proper preparation of projects; also project schedule should be prepared by skilled personnel in order to ensure VfM in public construction projects. Also the government needs to ensure that project funds are available before commencement of the projects. Additionally, the government should make sure that the public institutions equipped with adequate, skilled, competency and knowledgeable practitioners in order the public institutions to achieve VfM in construction projects.

A Dissertation to be Submitted to Mzumbe University in Partial Fulfillment of the Requirements for the Award of Master Degree of Science in Procurement and Supply Chain Management of Mzumbe University.