CONTRACT MANAGEMENT AND PERFORMANCE OF ROAD MAINTENANCE PROJECTS IN ARUA MUNICIPALITY

Abstract

This purpose of this study was to establish the relationship between contract management and performance of road maintenance projects in Arua Municipality. Objectives of the study were to:- establish the relationship between contract administration, relationship management and contract closure, and performance. A cross-sectional survey design was used, with data collected from a sample of 102 respondents using questionnaire survey and interviewing methods. Data was analysed using the statistical package for social sciences (SPSS) 16 for appropriate transformation. The study found a significant relationship between contract administration and performance of the projects; a significant link between relationship management and performance of the projects; and a significant relationship between contract closure and performance of the projects with respect to the three objectives. The study concluded that improved payment mechanism and controlled contract variations lead to better performance, improved communication channels and disputes management improve projects performance and that thorough final inspection, prompt payment of dues and stakeholders’ involvement in contract management improve the projects’ performance. The study recommended that government of Uganda should increase the budget for road works; on objective two, penalties should be introduced in contracts to check laxity of all parties involved, internal audit function strengthened, contract management meetings regularly held and contract specifications clearly articulated and adhered-to; and on objective three, technical staff should be trained in contract management and stringent performance measures provided as controls to adequately punish errant officials.