Evaluation of public procurement procedures for construction projects in Kenya: A contractor selection system based on project performance.

Abstract

Contractor selection is one of the main activities undertaken by state-procuring entities. Without a proper and accurate method for selecting the most appropriate contractor, the performance of the construction project will be affected. It is indeed important that capable contractors with appropriate attributes are selected to ensure that construction project performance is not put at risk. This study is aimed at evaluating the contractor selection procedures that are used during the tender evaluation process. The significance and the relationship between the contractor’s selection procedures and project success performance were determined based on a questionnaire survey. A quantitative and qualitative research strategy and a cross-sectional survey design were used. A stratified random sampling was adopted to determine the proportion of each stratum for the 263 sample size from a target population of 841 public projects that formed the unit of analysis. The data was analysed for multicollinearity, descriptive, multiple regression, and a test of significance computed at 0.05 level of significance. Descriptive statistics results revealed that financial soundness, technical capacity, experience, quoted tender price, management capability, and government statutory requirements are the most appropriate variables in tender evaluation. The hypothesis was stated in null form, for which the following results were recorded: (F(2,155)=17.218, p=0.000) and (F(2,154=10.828,p=0.000) thus rejected hypothesis. A stepwise multiple regression model was derived based on dependent variables and independent variables to determine whether there is a relationship between the variables. The goodness fit of the model, as defined by the value of R-square (0.123), was found to be 12.3%. It was therefore, concluded that financial soundness and technical capacity are statistically significant variables that suggest that the variables explain the construction project success. The study is significant in that it provides specific variables to procuring entities and construction contractors with recommendations of better evaluation of tenders both financially and technically.

Keywords: construction project; contractor selection; selection procedures