Effect of contractor selection criteria and development on contractor performance in Mubende District Local Government of Uganda.
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As a result of decentralization, local governments are allocating more resources to their core functions and encouraging the outsourcing of non-core activities. This has increased the importance of effective contractor selection and development as these agencies exploit contractor’s capabilities. However, sparse evidence exists regarding the impact of contractor selection criteria and contractor development on contractor’s performance in the public sector environment. This research was aimed at investigating the effect of contractor selection criteria and development strategies on the performance of contractors in the delivery of construction services in Mubende local government. Quantitative techniques were used in collecting and analyzing the data. A questionnaire describing contractor selection criteria, development and performance was administered to members involved in the classroom acquisition for a randomly selected sample of 90 respondents. Descriptive, tests of hypothesis and multivariate measures of analysis were conducted to confirm the relationships between the variables. Findings indicated that there are variations in the level of importance attached to contractor selection criteria and contractor development and their effect on contractor performance. There is a strong positive and statistically significant relationship between contractor selection criteria and development and contractor performance. However, selection criteria impacts positively with only quality and delivery performance measures and negatively with rework and on-site conflicts. Contractor development impacts positively with quality, delivery and on-site conflicts and negatively with rework costs. This study revealed that contractor selection criteria and development has much to offer local governments who wish to improve their contractor’s performance. There is thus strong justification to promote contractor assessments across multiple dimensions and development efforts and to obtain the resources needed to implement them. Local governments should ensure that their human resource is developed to respond to the challenges of outsourcing. It is also recommended that effective contractor performance measurement systems are instituted to ensure continuous improvements and enhance contractor performance.