Post- Award Contract Management and Performance of National Government Road Projects in Kenya

Abstract

Road construction projects in Kenya have been getting sustainability warning owing to poor quality standards. With a dearth of studies on the effects of contract management practices, especially post contract, this study sought to fill the gap by, establishing the impact of post award contract management on supplier performance in the road construction industry in Kenya. The study was guided by the following specific objectives; to assess the impact of contract monitoring and evaluation on performance in the road construction industry in Kenya; to establish the impact of post-contract relationship management on performance of national government road construction projects in Kenya; to find out the impact of post-contract administration on performance of national government road construction projects in Kenya; to determine the impact of contract closure on performance of national government road construction projects in Kenya; and to establish the moderating impact of Regulatory Framework on the relationship between post-award contract management and performance of national government road construction projects in Kenya. The study was guided by stakeholder theory, theory of constraints, the principle agent theory, contract theory and the Marxist theory on performance. Cross-sectional survey research design was adopted. The research paradigm for this study was positivist. The target population for the research was all 255 on-going road projects by road agencies in Kenya which are Kenya National Highway Authority (KeNHA), Kenya Rural Roads Authority (KeRRA) and Kenya Urban Roads (KURA). Therefore, the target population was 255 road projects. The overall sample size for this study was determined using the Nassiuma (2000) formula. The sample size for the study was 127 projects. This study used stratified random sampling technique to select the sample. Primary data was obtained utilizing a semi-structured questionnaire. Twelve projects from the three road authorities were given questionnaire samples or pilot tested. The Statistical Package for Social Sciences (SPSS) version 25 software was used to analyse the data. Qualitative data was analysed using content analysis and presented in prose form. Qualitative data was analysed using descriptive and inferential analysis. Descriptive statistics such as frequency, percentages, and means will be used. Pearson correlation coefficient was used for testing strength and direction between the independent and the dependent variables. A multiple regression model was used to test the significance of the influence of the independent variables on the dependent variable. The findings were presented in Tables and figures. The returned questionnaires for the pilot test were 12 (100%). From the pilot findings, the questionnaire was valid and reliable and was used to collect data for the actual study. The study found that a unit increase in contract monitoring and evaluation leads to a 0.924-unit (P < 0.05) improvement in project performance. A unit increase in post-contract relationship management resulted in a 0.782-unit (P < 0.05) improvement in project performance. Further, post-contract administration was found to have a positive effect on project performance, with a unit increase leading to a 0.651-unit improvement (P < 0.05). Further, contract closure positively influences project performance, with a unit improvement resulting in a 0.705-unit increase (P < 0.05). Finally, it was found that regulatory framework moderates the relationship between post-award contract management and performance, signifying that an improvement in regulatory frameworks positively influences the impact of contract management on performance. To improve project outcomes, it is recommended that national government road agencies prioritize contract management (contract monitoring and evaluation, post-contract relationship management, post-contract administration, and contract closure) and consider the regulatory environment's role.