Effectiveness of procurement contracts management in achieving value for money in procurement of works: A case of Moshi University College of Cooperative and Business Studies (MUCCoBS)

Abstract

Contract management is an important activity in public procurement especially on the deployment of the procurement system to achieve value for money. On the contrary, reports from researchers, the CAG and PPRA have shown that public funds have been wasted and misused because of poor contract implementation and management. Generally, the study aimed at assessing the effectiveness of procurement contracts management towards achieving value for money in procurement of works. Specifically, the study intended to describe the nature of procurement contracts for works, evaluate the adequacy of formulated procurement contracts for works towards guaranteeing achievement of value for money, determine the effectiveness of procurement contracts for works implementation as per terms and conditions and determine the contribution of effective contract management on the achievement of value for money. Through taking the case of MUCCoBS, case study research design was used to undertake the study whereby purposive and random sampling techniques were used to pick a sample of 60 respondents while questionnaires, interviews, observations and documentary review were used to collect data. Data were analysed through applying qualitative techniques that involved the use of "interpretive" and "reflexive" approaches while quantitative techniques involved utilization of SPSS as a tool for data analysis. Findings showed that contracts contained all the necessary required terms and conditions to guarantee value for money and it was established that contracts were effectively executed and managed adequately when compared to the terms. Also, it was determined that management of time, quality, costs and risk control results in effective contract management which contributes highly to the achievement of value for money. However, in some contracts there were signs of ineffectiveness in terms of variations and lots of extensions of time which jeopardized the achievement of value for money. Thus, it was recommended that the college should enhance supervision, prepare quality plans, hire construction experts and perform defects inspection for completed works.