Contracts management and procurement performance in centenary development bank limited in Uganda.

Abstract

This research assessed contracts management and procurement performance in Centenary Rural Development Bank Limited in Uganda and examine the relationship between Contract Management Planning and Procurement performance, the relationship between Contract Monitoring and Procurement performance and the relationship between Contract Administration and Procurement performance. Using a case study design, the response rate of 83.33%of the expected 144 respondents to self-administered questionnaires and interview guides was used for data analysis. Findings showed that there was a weak positive correlation coefficient (r = 0.300) between contract management planning and procurement performance, a strong positive correlation coefficient (r = 0.502) between contract monitoring and procurement performance and a strong positive correlation coefficient (r = 0.389) between contract administration and procurement performance. From the findings of the study it is recommended that there is great need for CERUDEB to improve its procurement performance through proper contracts management as described by the respondents on the contribution of contracts management to procurement performance. Although contracts management may not be the only contributing factor to procurement performance, it accounts for a high percentage of 70.8% and therefore it is imperative that CERUDEB reviews its existing contracts management systems in order to identify the weak points and fasten them accordingly as this directly affects the procurement performance. It was established that resources, service level agreements and timely payments are key areas for procurement performance in CERUDEB. It was thus recommended that the above areas be given greater attention in the contractual process, while at the same time enforcing the other recommendations made in this study.