PROCUREMENT: Assessment of the Procurement Contracts Implementation and Management in Local Governments

CHAPTER ONE

OVERVIEW OF THE STUDY

1.0 Introduction

This chapter gives brief tracks of the organization and an overview of the research study, which covers the background of the study, statement of the problem, general and specific research objectives, research questions, significance of the study and organization of the study.

1.1 Background of the study

The Tanzania government like any other developing countries has been providing social services to her people. The contribution of the government in development cannot be marginalized towards improvement of people’s living standards. In deed one of the means for improved economic performance of her people, the government through financial year budget has been funding various procurement contracts. In order to have highly enriched nation the government uses resources endowment to make sufficiently equipped environment that allows people to solve society’s problems and to meet challenges of development.

Although the government has good plan, it has been constrained to achieve her goal due to unsatisfactory implementation of procurement contracts. The rationale for the situation is that, improperly managed contracts that are funded directly by government or indirectly by donors lack proper orientation to contract management team towards enhanced and harmonized systems and mechanisms of contract management to deliver high value.

To solve this problem, the government introduced The Public Procurement Acts and The Public Procurement Regulations. The Acts and Regulations have been changing with time to reflect societal needs to the recent one that is The Public Procurement Act, 2011 and The Public Procurement Regulations, 2013. The Procurement Acts and Regulations is a clear tool and is necessary to guide stakeholders on effective and efficient contract management. This Act and Regulations are geared to strengthen the country’s effort towards increased contracts that are well implemented to bring about peoples’ innovation to available opportunities of entrepreneurship, value addition to individual’s products, increased service efficiency, effectiveness and improved national performance at the International Market.

There is also the question of public procurement practices gaining prominence across developing countries as it is difficult to imagine how a government can deliver substantial improvements in the well-being of its citizens without public expenditures systems that includes effective public procurement policies (Evenett et al, 2005).

Public Procurement is a comprehensive process stretching from procurement planning, budget allocation, bids invitation, bids evaluation, contract award, contract management, performance evaluation, auditing and reporting. It is an activity that must support the delivery of a public body’s strategic objectives at the same time live up to the expectations of the targeted public and taxpayers at large. With procurement accounting for about 20% of government expenditure in most developing countries, proper management of the activity is of paramount importance (Kirway, 2006).

On the other hand, the government has succeeded in improving its budget allocations and disbursement of fund to local government but the questions arise on the problems encountered during the contracts implementation and management. To mention a few the following challenges are gaining significant attributes to most of contracts in Tanzania, these includes delay in effecting payment to suppliers, contractors and service providers; ineffective quality of contract output, delayed implementation of contracts thus failure to meet deadline set for contract completion; contracts with a lot of variations and additions; unclear channel of communication and delayed solutions to arising matters during contracts implementation.

There has been a series of United Kingdom government reports, for example, investigating the construction industry, and findings from these indicate that the traditional construction procurement system is a root problem, driving fragmentation and an adversarial project culture that fails to deliver best value, Murray and Langford (2003).

Survey on procurement undertaken by Rooks and Snijder (2001) of 1252 IT purchasing transactions of Dutch Small-and Medium-sized Enterprises revealed that only 28% transactions for software, hardware and systems between IT providers and customers do not have some problems associated with them. Their findings show that 45% of transactions had inadequate documentation supplied, and 25% of transactions had ‘incompatibility’ or ‘budget’ issues. Although this was associated with the delivery of projects, we can relate the process of procurement (understanding deliverables, managing relationships, defining service levels and expectations, penalty clauses, liquidated damages, etc) to the success rates.

Barrett (2000) stated that a common theme of audit reports produced by Australia National Audit Office (ANAO) has been the deficiencies in project management skills of agency decision makers, which is of concern given that some of these projects involve substantial resources and complexity. These report has address a need for care in assessing value for money and negotiating, preparing, administering and amending major contracts. The parliament and the media have also paid particular attention to these issues during recent years with several agencies receiving significant adverse comments and publicity. Therefore, this situation has to be addressed in a matter of urgency.

One of the Policy issue in The National Public Procurement Policy 1^st Draft of September 10^th, 2012 of The United Republic of Tanzania is that projects have been initiated without planned follow-up or close monitoring of the implementation process. This leads to entering into a project agreement without PEs management commitment to ensure a return on investment.

PMO-RALG report of the financial year 2011/2012 on the assessment of CDG showed that four LGA failed to meet all minimum conditions as stipulated in the performance measures which includes among others procurement contracts implementation and management. Kishapu DC, Kilosa DC and Bagamoyo DC failed due to financial irregularities that had led to suspension of some staff while Rombo DC failed due to failure to provide evidence of approval of the CTB by the Finance and Planning Committee.

The CAG report stated that in the financial year 2007/2008 a number of 61 Councils obtained Qualified Opinion and in the financial year 2008/2009 a number of 54 obtained Qualified Opinion and only 1 Council namely Kilosa DC, obtained an adverse opinion.

Section 9(1) of The Public Procurement Act, 2011 gives power to PPRA to institute procurement audits in the course of execution of awarded contracts and performance audits after the completion of the contract in respect of any procurement as may be required. The objective of these audits is to determine whether contracts entered by PE have been/were being implemented in accordance with the provided contract terms and conditions and whether the government obtained value for money in spending public funds in the audited construction projects.

PPRA Report of Procurement Audit for Eighty PEs in the financial year 2014/2015 states that Muleba District Council is among PE with poor performance. The assessment of value for money audits results in terms of performance indicates that four (4) out of 35 audited PEs equivalent to 11.4% were assessed to have poor performance (below 50%). The PEs were with poor performance are Kigoma District Council, Kibondo District Council, Iramba District Council and Muleba District Council. Twenty three (23) PEs equivalent to 65.7% were assessed to have fair performance while eight (8) PEs equivalents to 22.9% were assessed to have satisfactory performance.

The list of audited projects with poor or unsatisfactory performance for Muleba District Council is indicated in table below:

Table 1.1: Projects Audited by PPRA in the financial year 2014/2015 in Muleba DC

Procuring Entity	Project Description	Contract Amount	Score
Muleba District Council	Construction of concrete decks and culvert	136,941,000.00	35.00%
	Construction of gravity piped water at Ruhanga Village in Muleba District	846,941,000.00	39.00%
	Construction of District Council Fence-Phase II at Muleba Head Office	50,000,000.00	31.60%
	Construction and Supply of pumps at Kyota Irrigation Scheme and Supply of Pumps and pipe works at Buyaga Irrigation scheme in Muleba	234,744,196.64	26.80%
	Construction of piped water supply network and associated appurtenances at Kangaza Village	579,884,266.00	23.30%
	Construction and renovation of water supply system for Kangaza Village in Muleba District	746,013,199.76	23.50%
	Construction of Karutanga Water supply networks and associated appurtenances structures in Muleba District Council	614,149,540.29	30.40%
	Routine maintenance of Kamishango-Nyawaibaga 21km and Periodic maintenance of Kamishango-Nyawaibaga 5km	84,610,000.00	41.20%

Source: PPRA Audit Report for the financial year 2014/2015

Table 1.2: Interpretation of Scores:

Score	Description	Detailed Explanation of description
0%-49%	Unsatisfactory	ü  Most of the project objective are unlikely to be achieved (or have not been achieved) hence value for money is unlikely to be achieved (or have not been realized) ü  Key risks were/are not being managed effectively or were/are not being managed at all ü  Urgent and significant management action is/was required to address the observed weaknesses to minimize the effects
50%-74%	Fair/Satisfactory with significant reservations
75%-100%	Satisfactory

From the above observation the researcher was directed towards generating knowledge and building skills deemed to be most important towards proper implementation of contracts that address important gaps built by improperly managed contracts to the society.

Some of the richer and more fine-grained research work into project procurement can be found in construction management literature. It is for this reasons that researcher summarized highlights from that wide body of work. The research was concerned with constructional contracts which form a major part of the total procurement expenditure and not with the purchase of material and equipment.

1.2 Statement of the Problem

Effective procurement contract management in public sector is of importance in ensuring that the best value for money is obtained in public entities. Weaknesses in contract management and implementation are considered to be one of the causes that slow down the speed of development in Tanzania. With increased grants from the Central Government to LGAs as a result of decentralization policy, the procurement function in LGAs has become even more important as LGAs engage in the procurement of works, goods and services required to implement nationally funded programme. LGAs now handle large amounts of funds to procure contracts like feeder roads construction, water supply, construction of health units and primary schools, supplies to district hospitals and lower health units, school furniture and many others.

Report of procurement audits for eighty PE in the financial year 2014/2015 justifies presence of weaknesses in implementation of procurement contracts. The audit result indicated a compliance level of 70% on contracts management and implementation. The audit revealed the following weaknesses; weakness of management of performance securities, advance payment securities and insurance covers which was observed in 33% of the reviewed contracts; untimely issuance of instructions to contractors observed in 31% of the reviewed contracts, negligence of enforcing remedies for delays stipulated in the contracts which was observed in 33% of the reviewed contracts; extending contract duration without justifications, weak quality controls and quality assurance observed in 58% of the reviewed contracts; making payment to service provider without following procedures for inspections and measurements observed in 17% of the reviewed contracts; weak management of contract close out observed in 31% of the reviewed contracts.

The interest of this study was to find out whether implementation of procurement contracts in LGAs meets the required level of outputs.

1.3 Research Objectives;

1.3.1 General objective

 To describe the effectiveness of procurement contracts implementation and management in LGAs.

1.3.2 Specific Objectives

The specific objectives of the study are:

1. To explore the adherence to procurement contract management procedures in LGAs
2. To find out the factors leading to ineffective procurement contracts implementation and management in LGAs

• To investigate impact of motivation to procurement contracts implementation and managements in LGAs.

1.4 Research Questions

1.4.1 General research question

Do procurement contracts implementation and management in LGAs effective?

1.4.2 Specific research question

Specific research questions of the study are;

1. Do LGAs adhere to procurement contract management procedures?
2. What are the factors leading to ineffective implementation of procurement contracts in LGAs?
3. State effects of motivation in procurement contracts implementation and management in LGAs.

1.5 Significance of the Study

It is regarded that the study will make a theoretical and practical contribution that are suitable to the body of knowledge related to the study discipline with a particular emphasis on effective implementation of procurement contracts. In particular, the study is expected to be among of the important driver of national development and public welfare.

To LGAs and Public/Private Institutions

It is appreciated that the demand by LGAs for project implementation strategies and techniques of procurement contracts is extremely large and complex. Requirements are varied depending on the characteristics of the project such as large and complex undertakings and how much experience, training and competencies do contract managers have. Through this study LGAs in Tanzania will be assisted in preparation of well-structured procurement contracts which will lead to public accountability by effective control of implementation of procurement contracts. Colin Turpin (1972) asserts that ‘Every expenditure on the procurement of goods or services is expenditure of money that might have been applied to different public purpose. Decision on procurement expenditure are therefore of public concern and should be under effective public control.

To Academicians and other Education Stakeholders

As it comes to the end, the study will significantly add knowledge and insight, further will keep an open track for further investigations and knowledge demonstrations.

To the government

Findings of this research will help the government in improving, amending existing and formulating new active procurement rules, regulations and policies. For present significant, well-known and formulated rules, regulations and policies increases efficiency, effectiveness, economy, transparency, equality and competition hence value for money will be obtained from procurement contracts.

To Researcher

The study will provide the researcher with an opportunity to integrate knowledge acquired, skills and practical experience about procurement contracts implementation and management with daily professional undertakings. On the other hand, the study is a partial fulfillment for an award of Certificate of Procurement and Supplies Professional.

1.6 Organization of the proposal

The research paper is organized in five chapters whereby; Chapter one in particular deals with background to the study, statement of the problem, research objectives and research questions, significance of the study, and organization of the proposal. Chapter two covers literature review, which provides theoretical bases to the study, empirical studies comprises of previous international and regional studies and conceptual framework for the study. Chapter three is concerned with research methodology showing research Paradigms, design, type of measurement, data collection method, sample and sample size, sampling procedure, area of the study, reliability and validity of data, management of data and analysis techniques as well as limitations of the study. Chapter four includes the fact findings, analysis and discussion. Chapter five are summary of the study objectives, conclusion and recommendation to the research topic.

 

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

The topic for this study cuts across more than one substantive area in the review of the literature. The research study used already written findings as the way to obtain more information in the process of finding answers and solutions of this research problem. In literature review information from books, pamphlets, newspapers, academic journals, published or unpublished bibliographies, government reports and conference proceedings were considered, the researcher’s intention was to see how this topic has been worked upon by various researchers and also to see their options, opinion, method used to collect information and conclusions relevant to the topic under study.

This chapter describes the theoretical and empirical studies which researcher used in the study; also it gives attention to more on what some authors have done or reacted about various issues on procurement contract implementation and management.

2.1 Theoretical Literature Review

2.1.1 Conceptual Definitions

 Procurement

According to PPA, (2011) procurement means buying, purchasing, renting, leasing or otherwise acquiring any goods or work or service by a procuring entity and includes all functions that pertain to the obtaining of any goods, works or services including description of requirements, selection and invitation of tenderers, preparation and award of contracts.

The International Council for Building (CIB) Working Commission 092-W092 adopted a general definition of Procurement term as ‘the act of obtaining by care or effort, acquiring or bringing about, from the standpoint that such a conceptualization of procurement would raise awareness of the issues involved in both challenging generally accepted practices and in establishing new strategies.

According to Mohsini and Davidson (1989:86) defined procurement as ‘the acquisition of new buildings, or space within buildings, either by directly buying, renting or leasing from the open market, or by designing and building the facility to meet a specific need.

‘Procurement is a strategy to satisfy client’s development and/or operational needs with respect to the provision of constructed facilities for a discrete life-cycle’ Lenard and Mohsini (1998:79). Thus the CIB-Working Commission’ view to this definition was that the procurement strategy must cover all of the process in which the client has an interest, indeed the whole lifespan of the building.

There has been several debate on coming up with the working definition of procurement whereas CIB-W092 at its meeting in 1991, defined procurement as ‘framework within which construction is brought about, acquired or obtained. McDermott argues that this definition serves a useful purpose as it is both broad encouraging a strategic interpretation, and neutral, being applicable to developed and market economies. (Walker and Rowlinson, 2008).

Procurement Contracts

PPA, (2011) states that procurement contract means any license, permit, or other concession or authority issued by a public body or entered into between a public body and a supplier, contractor or consultant, resulting from procurement proceedings for carrying out construction or other related works or for the supply of any goods or services.

Local Government

Local Government is an administrative body for a small geographic area, such as a city, town, county, or state. A local government will typically only have control over their specific geographical region, and cannot pass or enforce laws that will affect a wider area. Local governments can elect officials, enact taxes, and do many other things that a national government would do, just on a smaller scale (Eugene, 2010).

In 1982, Local Government Authorities (LGAs) were re-established after ten years of decentralization of government administration under the Decentralization Act, 1972. The re-establishing laws, that is, Local Government (District Authorities) Act No. 7 of 1982 and the Local Government (Urban Authorities) Act No. 8 of 1982 gave the Local Authorities objectives among others of promoting economic development within their area of jurisdiction. The Local government has was issued with the Local Government (Finances) Act No. 9 of 1982 to direct and regulate Local Government operations.

The Public Procurement Act, 2011 and The Public Procurement Regulations, 2013 shows some of the reservation that left to be practiced by Local Government, such as PPA Section 60 (4) states that Subject to subsection (3), the accounting officer of a local government authority shall, before issuing a notice of intention to award a contract, submit the award decisions to the Committee responsible for finance and planning, for scrutiny, and where the Committee is dissatisfied with the decisions of the tender board, it shall request the authority to conduct an investigation pursuant to section 33(3).

Contract and Contract Management

Institute of Procurement and Supply, Chanika-Dar es Salaam (2006) states that contract management are the day to day management issues required to make the contract success. Contract are to be supervised to ensure that the supplier/ tenderer performs according to the contract and that delivery schedules are met, opposite to this is ineffective supervision of contracts that leads to serious losses for the local government.

Goodrich (2013) defines contract management as the process of managing contract creation, execution and analysisi to maximize operational and financial performance at an organization, all while reducing financial risk. Effective contract management can ultimately create a powerful business relationship and pave the road to great profitability over the long-term, but only when managed correctly.

 Work contracts

According to finance Act, 2012 section 65 B, provides definition of works contract, which means a contract where in transfer of property in good involved in the execution of such contract is leviable to tax as sale of goods and such contract is for the purpose of carrying out construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, alteration of any movable or immovable property or for carrying out any other similar activity or a part thereof in relation to such property.

Project and Project Management

A project may be defined as a series of related jobs usually directed towards some major output and requiring a significant period of time to perform.

Project Management can be defined as planning, directing and controlling resources (people, equipment, material) to meet the technical, cost and time constraints of the project.

A contractor building houses or a firm producing low-volume products such as supercomputers, locomotives, or linear accelerators can effectively consider these as project.

2.1.2 Textual Literatures

2.1.2.1 Procurement Contract and Contract Management

The questions and answers booklet for Professional Stage IV of PSPTB (November, 2010 and May, 2011) defined procurement contract as a license, permit, or other concession or authority issued by a public body or entered into between a public body and a supplier, contractor or consultant. The other definition of contract is that ‘ Contract is an agreement between two or more parties intended to have legal consequences. It is enforceable by law. A contract is formed by agreement between parties which involve set of promises forming the consideration for each other. Contract management is the process that enables or ensures both parties to the contract meet their respective obligations in order to deliver the objective required from that contract.

(Walker and Rowlinson, 2008) argued that procurement is viewed in various perspectives; ‘Procurement has long been, and remains, one of the most complex business processes. It can be approached in many different ways. It is characterized by its novel cross-disciplinary project management approach’.

In many businesses process of project management, project managers mainly perceive procurement as a make-or-buy decision from a choice of in-house sourcing or from an outsourcing perspective.

Traditionally project management theory and practice have poorly addressed the wider issues of procurement as being a key activity to achieve value for money. The USA-based Project Management Institute (PMI) has close to 250,000 members and for many decades has invested much effort in developing competency, standard; however, it only recently expanded its focus on procurement as an important project management process.

The researcher on other hand along with many other requirement of procurement contracts management, addresses that along with procurement must come up the considerations of sustainability. Sustainability is viewed in terms of social, economic, environmental and safety and health issues that are an essential prerequisite for the continuance of development. Indeed, sustainability is embedded in procurement systems through the concepts of community development benefit (Donnaly, 1999).

2.1.2.2 Procurement Contracts Implementation and Management Procedures

Johannessen and Penh (1999) in their Contract Manual titled Contracts Management Labour-Based Road Construction Works and Rural Infrastructure Improvement Project- ADB loan no 1385 provides the following procurement contract management procedures that researcher has tried to fit them into the LGAs contract management procedures in Tanzania:

 

• Preparation of Contract Documents:

Contract document for works comprises of bidding, evaluation and payment certificates.

• Bidding includes invitation to bid, work specifications, technical drawings, and bill of quantities, instruction to bidders, general conditions of contracts, specific conditions, and appendix to conditions of contract-contract data, form of bid, and form of agreement.
• Evaluation of bid
• Payment certificate includes payment breakdown, interim payment certificate, certificate of practical completion and final certificate of completion.

Bidding document for specific contracts are prepared by three parties that are user department, engineering department and procurement management unit-PMU, the exercise should be controlled and verified by PMU.

It is important that a time schedule is fixed and agreed with the user department and project manager before commencing on contract preparation. Important date includes date of announcement, bid closure, commencement and completion of work.

• The Bidding Process

All works contracts follow a set of procedures which clearly defines the role and responsibilities of the User Department, Project Manager as well as the PMU. Contracts for works are prepared by PMU including announcement of bids, bid opening, bid evaluation by proposing composition of the EC, award of contract, inspection and supervision of works, certification and payment of works and finally issue of final completion certificate.

The Council Tender Board-CTB is responsible for the approval of the budget of each of the projects, approving the Engineer’s Estimate and final approval of the findings of bid evaluation carried out by the EC.

The bidding process is regulated by the PPA. Depending on the size of the contracts to be issued, PPA prescribes different methods for the bidding process; they include International Competitive bidding, National Competitive bidding, Restricted bidding, Competitive Quotation(Shopping), Single Source Procurement, Minor Value Procurement, Micro Value Procurement.

• Bid Evaluation

Bid evaluation should be carried out immediately after the bid opening. It is important to bear in mind that the bid evaluation is a distinct exercise, which is separate from bid opening exercise. The bid evaluation is an internal management meeting in which all discussions are confidential. This implies that only members of the Bid Evaluation Committee are present during this exercise and their final selection of the most successful bidder should not be announced before a final approval of the evaluation has been obtained from the CTB.

The most important duties before conducting the bid evaluation are; (i) to prepare the Engineer’s Estimate, and (ii) check the bids for arithmetic errors in the calculation of the total bid value.

In addition, there may be a demand for verifying the firms’ qualifications, whether they have the necessary capacity to carry out the works, their past performance, their staff availability, condition of equipment and the like. This information assists the individual member of the EC in making the right assessment of bidders and finally taking the correct decision in terms of the best bid. The selection of the most successful bid should be based on several factors, bid price, past performance, staff qualifications, present capacity and the like. Of particular importance is contractor’s current capacity and availability to carry out the works during the period envisaged in the physical work plan. If it is evident that a firm cannot carry out the works between the start and completion dates envisaged in the bidding documents, the bid should be given lower rating or rejected.

• Award of Contract

After final approval of CTB of the findings of the bid evaluation, the contract is awarded to the most successful bidder. The client should notify the contractor immediately after obtaining CTB approval of the evaluation, thereby allowing the contractor to mobilize as soon as possible. It is important to note that once the bid evaluation has been approved, the contractor is expected to mobilize immediately up on receiving the notification of award. In other word the contractor is expected to commence works even before contractor agreement has been signed.

When issuing the contract agreement, the following documents should be included:

• Form of agreement
• General Conditions of Contract
• Specific Conditions
• Appendix to Conditions of Contract-Contract Data
• Works Specifications
• Technical Drawings
• Form of Bid signed by the bidder
• Bill of Quantities including unit rates offered by the bidder

It should be noted that when issuing the contract agreement, no changes should be made to the conditions contract. The contract agreement serves as supporting evidence for any payments processed under the contract. The original copy should be kept by the PEs until works as defined in the contract have been completed, including the defect liability period.

• Contract Management

Within two weeks of notification of award, the contractor is obliged to submit a works programme to client covering the entire construction period. The client requires to carefully make a logical coordinated activities of a given contracts with delivery. The client (Project Manager) should on a weekly or monthly basis arrange progress meeting/site meeting with the contractor where implementation issues are discussed in detail. This should be one of the obligations included in the Special Conditions of Contract that the client/project manager is responsible for calling meeting and the contractor is obliged to attend these meetings.

Written minute should be maintained on all the decisions made during the progress meetings by both client and contractor. In addition, all information issued to the contractor on site should be made in writing. This is best organized by requesting each contractor to have a note book on site which all instructions are entered.

Site instructions includes the quantities agreed on, which deviates from the original BOQ and volume tables in the contract, as well as instructions issued relating to improved methods of construction, quality, replacement of staff, changes in work programme and the like. During the next site visit of engineer, it is important that the instructions of the previous site visit are carefully reviewed before new instructions are issued.

• Payment Certificates

Any payment made to the contractor should be based on completed works, which have been measured and approved by the Engineer and deemed compliant to the quality standards established by the project.

Under no circumstances shall the contractor be paid for works, which have not been completed or have been carried out to sub-standard quality.

During the course of works implementation, it is expected that deviations may occur from Engineer’s Estimated Quantities. However, the payments are based on the actual measured quantities-not the amount as listed in the BOQ.

Before contractor carries out any works, which deviates from the BOQ and the Technical Drawings, written approval should be obtained from client/project manager. Any additional works which have not received prior approval, request for its payment will not be approved.

There are three different types of payment certificate issued during the course of contract. The Interim Payment Certificate is used for partial payments during the course of works implementation. The numbers of Interim Payment Certificates to be issued depend on the duration of the contract and the payment schedule as agreed to in the Appendix to Conditions of Contract.

When all works have been completed, the final remaining payment will be processed with the Certificate of Practical Completion. This will also be the start of the Defect Liability Period. At the end of the Defect Liability Period and after the contractor has completed any remedial works, the Final Certificate of Completion is issued.

• Contract Register

It is important that all contracts awarded are recorded in the Contract Register of the PEs. Not only is the contract register an important tool for expenditure forecasting- it also provides an excellent overview of all the contracts which in the past have carried out works for the project, as well as providing a summary of all construction companies currently engaged by the project.

It helps in bid evaluation to make aware the EC whether a bidder has carried out works previously for the project; help the assessment of the contractor’s capacity to take on a new work, showing contractor’s experience of similar project and showing contractor’s past performance information.

Goodrich (2013) states that contract management can be broken up into stages that can be typically considered as contract process. Creating a contract can prove quite time consuming. The process includes the following steps:

• Initial requests: The contract management process begins by identifying contracts and pertinent documents to support the contract’s purpose.
• Authoring contracts: Writing a contract by hand is a time-consuming activity, but though the use of automated contract management systems the process can become quite streamlined.
• Negotiating the contracts: Up on completion of drafting the contract, employee should be able to compare versions of the contract and note any discrepancies to reduce negotiation time.
• Approving the contract: The instance in which the bottlenecks occur is getting management approval. User can preemptively combat this by creating tailored approval workflows, including parallel and serial approvals to keep decisions moving at a rapid pace.
• Execution of the contract: Executing the contracts allows users to control and shorten the signature process through the use of e-Signature and fax support.
• Obligation management: This requires a great deal of the project management to ensure deliverables are being met by key stakeholders and the value of the contract isn’t deteriorating throughout its early phases of growth.
• Revisions and amendments: Gathering all documents pertinent to the contract’s initial drafting is a difficult task. When overlooked items are found, systems must be put in place to amend the original contract.
• Auditing and Reporting: Contract management doesn’t simply entail drafting a contract and then pushing it into the filing cabinet without another thought. Contract audit are important in determining both organizations’ compliance to the terms of the agreement and any possible problems that might arise.
• Renewal: Using manual contract management method can often result in missed renewal opportunities and business revenue lost. Automating the process allows organization to identify renewal opportunities and create new contracts.

2.1.2.3 Procurement Contracts Implementation and Management in LGAs

Keeling (2000) in his study on factors in project failure pointed out that studies in the United States show prime factors in project success include ‘an adequate and appropriate organizational structure’. Went further by stating that United Kingdom studies found problem such as part-time management, inappropriate organization, and lack of direction and control are amongst the principal causes of project failure and highlighted the importance of clear and logical organization structure’.

Chandra (2007) argues that no sooner the project launched, control becomes the dominant concern of the Project Manager. Indeed, once the launch phase is over, planning and control become closely intertwined in an integrated managerial process.

Project control involves a regular comparison of performance against targets, a search for the causes of deviation and a commitment to check adverse variances. Project control service two major functions that are; to ensure regular monitoring of performance and to motivate project personnel to strive for achieving project objectives.

He mentioned three reasons for poor control of projects:

• Characteristics of the project; Most of the projects are large, complex undertakings involving many organizations and people making the task of control more difficult because of having non-routine activities. In addition to this, coordination and communication problems multiply when several organizations are involved in the project.
• People problem; to control non-routine project, a manager requires an ability to monitor a wide range of disparate factors. Naturally, most of Operational Managers, used to the steady rhythm of normal operations and routine work lack the experience, training, competence and inclination to control projects.
• Poor control and information system; One of the factors which inhibit effective control is poor quality of control and information system. There is delay in reporting of performance this prevents effective monitoring of the project and taking actions on time. Projects also receives unreliable and inaccurate data and information, reports received by employer suggests that ‘everything is okay’ or things are ‘reasonably within the control’ when the reality is otherwise.

According to Baily and Farmer (1977) states that quality failure may be due to poor tooling provided by the buying company as much as to poor source selection, delivery failure may result from production control changing schedules frequently, or from late requisitioning; then poor general supplier performance might stem from the buying company being slow payers.

Barrett (2000) pointed out that managing a contract starts before any decision has been taken on the selection process of supplier/contractor/service provider. For this reason, proper project planning is essential to successful contracts.

As stated by Barrett (2000) that the idea of Seddon when responding to inquiry into contract management in the Australian Public Service-APS was that: One of the principle difficulties that have faced management in the era of contractualisation of government is that public servants are not trained to be contract managers. Yet, there are many public servants who are doing just that. Over time do doubt, this deficiency will be rectified, but it is my impression that there is inadequate attention being paid to the lack of skills of public servants who are expected to administer contracts.

2.1.2.4 Motivation in procurement Contracts implementation and management

Walker and Rowlinson (2007) states that rewards in project environment need to attract, motivate and retain top performers at the individual and team level. Recent research has revealed that potential employees are seeking employers who offer a range of benefits, and a higher than average salary won’t make up for not addressing some of their wants. Job securities is desired Rabey (2005) and, for young workers in particular, ‘poor quality’ employment which lacks a career path or learning opportunities, has been found to be de-motivating (Loughlin and Barling, 2001).

Project managers need to consider the combination of knowledge, skills, abilities and other attributes that will be required to deliver their project on time and on budget. Motivating the team to perform becomes the next challenge.

Motivation caused by work design was discussed as; Employees seek challenging and interesting work (Rodrigues, 2001) that is rewarding. Performing challenging work and different roles enables employee to demonstrate their potential to work in higher level roles.

In project environment, project placements providing new and different tasks to perform, enabling people to work with experienced successful Project Managers, and being supported to gain new skills and knowledge can form a large part of individual’s to rewards.

For many employees these opportunities for new experiences and to gain new skills and knowledge to advance their career may be seen as more important than higher level of pay (Gross and Friedman, 2004). This is especially for early career employees.

Motivation caused by Job Security was discussed as; Project work inevitably involves temporary employment, which leads to lack of job security. There may be no guarantee of continued employment on completion of the current project. Research has found that limited term employees have reduced levels of commitment to managerial goals, and are likely to demonstrate lower level of effort and cooperation (Boswell, 2006). This can be because temporary employees feel like ‘outsiders’.

2.2 Empirical Literature Review

Empirical literature review outlines readings of current researches related to the topic under study. The researcher traced those works and found that are related with the current study as they were segmented to reflect each specific objective in order to make the work more meaningful. The researcher reviewed articles, journals, newspapers and materials found on the internet for the purpose of Assessment of Procurement Contracts implementation and management in Local Government.

Griffiths and Marsh, (2000) in Supply Management Magazine put comments on variations which are made in the contract that it is easy to order a contractor to vary its work but agreeing a price for variation is another matter. The framework for setting charges in the sixth edition of the Institute of Civil Engineers ‘condition of contract Clause 52(1) (a) states that where varied work is of a similar character and executed under similar conditions to work priced in the Bill of Quantities, then it will be valued at the applicable rate and prices contained in the bill. If the work is not similar or not executed under similar conditions, then the rates and prices in the bill of quantities shall be used as the basis for valuation, only so far as it is reasonable. Failing this, a ‘fair’ valuation will be made. Therefore, it is better to note that there is no total contract price and each rate must be scrutinized to check that it has not been set at a level that allows the contractor to exploit changes in quantities or item description.

Tesha (2015) as written in Tanzania Procurement Journal, states that it is recommended that PEs should use the services of the legal and technical professionals when making major decisions in contract administration.

Omollo (n.d) in his research has written and demonstrated that staff members are one of the most valuable asset. Motivated employees are more likely to stay and help building your business. Retaining motivated staff builds your business and also reduces the cost of recruitment and training.

Ludhans (1992) as written in International Journal of Human Resource Studies (2015, Vol.5, No.2) found that motivation is about giving your staff the right mixture of guidance, direction, resources and rewards so that they are inspired and keen to work in the way that you want them to do.

Mejia (2014) stated that small projects are in risk of big changes in climate, when it rains before the bridge are built, the area would be cut off. The project area vulnerability to climate changes increases with causing enormous damage to infrastructures. When planning a contract, mitigation works, large and small has to be done to reduce the levels of risks and challenges for project execution.

D’Itri and Fizel (1999) in their research about firing and hiring managers’ states that manager perform several functions that are often deemed critical to the performance of the organization. Therefore, a more appropriate guide to hiring decisions is an evaluation of efficiency. If new project manager is more efficient than the dismissed Project Manager, short-run post-succession performance increases. Therefore, relative efficiency would be expected to a good benchmark for personnel decisions in managers’ turnover when implementing contracts. With roots in the population ecology theory of Aldrich (1979), this position sees organizational success as solely the result of environmental forces and not manager replacement.

2.3.0  Conceptual Framework

The researcher attempted to assess the effectiveness in procurement contracts implementation and management and hence the assessment showed the light on what contributes to ineffective contract management. Basing on variables, the researcher identified what variables were either independent or dependent in relation to the topic.  If one variable depends up on or is a consequence of the other variable, it is termed as a dependent variable. The variable that is antecedent to dependent variable is termed as an independent variable. In this study the relationships between variables were the aspects of well prepared contract documents including designed specifications such as engineering drawings and blue print, availability of approved budget/source of fund for project, motivation to contract implementation and management team such as training to engineers, technicians, other relevant stakeholders and beneficiaries, availability of contractor/client’s equipment, good information flow systems between contract parties, contract manager’s ability to monitor a wide range disparate factors as well as availability of sufficient number of technical staff; therefore, these were considered independent variables while procurement contracts implementation and management was dependent variable. The conceptual is summarized in table 1 below:

Table 2:1 Conceptual Framework Variables

Independent Variables: Attributes in procurement contracts implementation and management	Dependent Variables	Outcome
Well prepared contract documents including designed specifications such as engineering drawings and blue print Availability of approved budget/source of fund for project Motivation to contract implementation and management team such as training to engineers, technicians, other relevant stakeholders and beneficiaries Availability of contractor/client’s equipment Good information flow systems between contract parties Contract manager’s ability to monitor a wide range disparate factors Availability of sufficient number of technical staff	Procurement contracts implementation and management	Enhanced quality and VFM of the contracts

Source: Researcher’s model, (2016).

  

CHAPTER THREE

RESEARCH METHODOLOGY

3.0 Introduction

This part covered the methodology which the researcher used to collect data and information. The methodological part of this research report shows how the researcher made findings to acquire knowledge towards appropriate research results. Wainright (1977) states that research methodology is researcher’s strategic approach, rather than techniques and data analysis. Under this chapter, the researcher covered research design, description of the study area, data collection method, sample size and sampling techniques, expected result and limitation of the study.

3.1     Research Paradigms

Guba et al (1990) defined the meaning and explained the different research paradigms as follows: that the research paradigm is simply a belief system (or theory) that guide the way we do things, or more formally establishes set of practices. The disciplines are governed by particular paradigms such as: positivism applicable in experimental testing, post positivism, critical theory and constructivism. The researchers’ discipline is guided by a paradigm and through previous research papers the researcher read about the topic under study, the researcher began to identify through the methodology the kind of paradigm that will be used.

When researchers talk about different approach to research, they talk about paradigm. Quantitative and qualitative research methods involve very different assumptions about how research should be conducted and the role of researcher. This study uses qualitative research approach therefore the best type of research paradigm to this study is constructivism/ anti-positivism paradigm. Miller & Crabtree (1999, p.10) found that this paradigm recognizes the importance of the subjective human creation of meaning, but doesn’t reject outright some notion of objectivity. Most qualitative research emerges from the ‘interpretivist’ paradigms. Constructivism is built upon the premise of a social construction of reality.

One of the advantages of this approach is the close collaboration between the researcher and the participant, while enabling participants to tell their stories Crabtree & Miller, (1999). With participants, by working under this paradigm the researcher was able to increase knowledge about people or situations that were not usually studied especially the experiences of procurement contract implementation and management and contract management systems which are often marginalized in LGAs. The researcher was provided with information that can be used for social change through improved contract outputs.

3.2 Research Design

Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. The research design is a conceptual structure within which research is conducted; it constitutes a blue print for the collection, measurement and analysis of data (Kothari R.C 2004).  The researcher used a case study design. Kombo et.al (2009) demonstrated that a case study design seeks to describe a unit in details in context and holistically. A case study is a detailed intensive study of a unit, such as a corporation or a corporate division that stress factors contributing to its success or failure (American Heritage Dictionary of the English Language, 2000). The researcher preferred a case study design because this research intends to address “how” and “why” questions, while taking into consideration how a phenomenon is influenced by the context within which it is situated. The study at Muleba District Council was used to make generalization about other LGAs in Tanzania as it was studied in details.

3.3 Research Measurements

Trochim (2008) defines measurement as the process of observing and recording the observations that are collected as part of a research effort. The study applied both nominal and ordinal measurement scale which falls under Non-Parametric Measurements. The use of non-parametric methods is necessary when data have a ranking but no clear numerical interpretation, such as when assessing preferences. This research study falls under qualitative category which provides an overview of the broad range of non-numerical measurement approaches.

The justifications for the use of non-parametric measurement are; simplicity- in certain cases, even when the use of parametric methods is justified, non-parametric methods are easier to use, leave less room for improper use and misunderstanding, and suitable for qualitative research studies.

3.4 Area of Study

The study was conducted at Muleba District Council which is among the least developed districts in the country. Muleba is one of the 7 districts of Kagera Region in the North West of Tanzania Mainland.  The district is located between latitudes 31^o 30` and 32<sup>o</sup> 5` East and latitudes 1^o 30` and 2<sup>o</sup> 20` South.  It is bordered in the North and North West by Bukoba Rural District, by Lake Victoria in the East, by Karagwe District in the South West and by Biharamulo district in the South.

The district covers an area of 10,739 km² of which 3,444 km² is land-surface area and 7,295km is covered by water, mostly Lake Victoria.  The water surface area includes more than 26 inhabited islands all in the Lake Victoria. Administratively Muleba is divided into 5 divisions, 31 wards, 156 villages and 728 hamlets (sub-villages).

The Muleba District Council was selected to be the study area of this research because it is among the PEs with problems in procurement contracts implementation and management that need solutions through various study. The study covered the following departments; Human Resource and Administration, Planning, Procurement Management Unit, Engineering, Finance, Health and Education of Muleba DC.

3.5 Types of Data

The data collected was from two main different sources which included direct responses from respondents termed as primary data and others from documentary sources termed as secondary data. Research data were collected through conducting interviews and observation as the researcher observed how procurement contracts implementation and management is effectively undertaken at Muleba District Council.

3.5.1 Primary Data

Kothari (2004) stated that primary data are those data which are collected a-fresh and for the first time and thus happen to be original in nature. Primary data were collected from Human Resource and Administration Department, PMU, Engineering Departments, other User Departments and Village Councils where projects are implemented.

3.5.2 Secondary Data

Kothari (2004) stated that secondary data are those data which have been collected by someone-else and which have been passed through statistical process. Secondary data were taken and noted from available documents including Muleba District Council regular reports, contract files, procurement reports, journals, books, internet search and websites, manuals and research papers.

3.6 Data Collection Methods and approach

A good case studies use a number of different research tools to increase validity. The research falls under qualitative approach and different data collection instruments were used. Appropriate methods for the study are those which allow direct interaction with individuals on a one to one basis or direct interaction with individuals in a group setting. The study used the interviews and observation methods during data collection to obtain richer and deeper insight into the problem under study.

1. Interviews

Kothari, (2004) says that ‘Interview method involves the presentation of oral verbal stimuli and reply in terms of oral-verbal responses’. Therefore, from it, is concluded that an interview is a set of questions asked orally through personal interviews or through telephone interviews. Interviews fall into three types which are structured, semi-structured and unstructured interviews but the researcher used structured interview. Respondents were asked predetermined questions, laid down procedure and questions which were similar in the order that allows respondents give enough explanations on the questions. Also structured interview was used to collect data from respondents more quickly because respondents were more involved and motivated to give more information about the problem. The study got extra information from the interviewee voice, intonation and even the body language.

                                                               

1. Observations

This is one of the primary data collection methods.  Observation becomes a scientific tool and the method of data collection for the researcher, when it serves a formulated research purpose, is systematically planned and recorded and subjected to checks and controls on validity and reliability (Kothari, 2004).  Under the observation method, the information is sought by way of investigation’s own direct observation without asking from the respondents (Kothari, 2004). The researcher visited the natural setting of the study area and took descriptive notice of what is happening. Data were collected from written descriptions and on site real pictures of buildings and other infrastructures. The researcher made observation on daily activities relevant to procurement contracts implementation and management in Muleba District Council towards value creation.

3.7 Sampling techniques

3.7.1 Sample and Sample Size

More often in research, only a few items from the universe around the study is selected. Items selected are called a sample. Decision of the way of selecting a sample is known as the sample design. Sampling is the process of obtaining data about the entire population by examining only part of it (Kothari, 2004). There are two types of sampling techniques namely, probability and non-probability sampling.

Probability (Random) Sampling; is the sampling technique where by every item in the population has an equal chance of being included in the sample.

Non-Probability (Purposive) Sampling; is the sampling technique which involve deliberate selection of particular units for a sample. It is the sampling method in which elements are chosen based on purpose of the study.

In this study the researcher used non-probability sampling method because it is appropriate for the research study which falls under qualitative approach and less expensive than doing probability sampling.

3.7.2 Sampling Frame

Under this study, population comprised of Procurement Management Unit (PMU) staff, Top management staff including Human Resource Department, staff from other departments like Planning, Finance, and Engineering, other employees of Muleba District Council, Contractors and Village Administrators.  This group enabled researcher to access procurement reports, management report concerning performance of the project, user department reports and report of beneficiaries. This sampling frame has been chosen and provided researcher with relevant information. The total population of Muleba District Council is 218 staff whose work station is the Council Headquarter from this number; the sample was obtained resulting to the accuracy of the study.

3.7.3 Sample Size

Webster (1985) defined sample as finite part of a study population whose properties are studied to gain information about the whole. This study had sample size derived from population shown in the sample frame. The sample size comprised of 40 respondents, the number of the sample size has been arrived at as shown in table 3.1 below. The choice of these respondents was for the reason that staffs from these departments are directly involved in procurement contracts implementation and management. Subject to the budget constraints, time frame of the study, size of population and research approach, the sample size for the study resulted into valid and reliable data.

Table 3.1: Sample size

Respondent	Number of respondents	Percentage (%)
Procurement Management Unit staff	04	10.00
Top management staff	03	7.50
Engineering Departments Staff (Water, Works, Irrigation)	10	25.00
Planning department staff	03	7.50
Finance department staff	05	12.50
Health Department (MMAM)	04	10.00
Education Departments (Primary & Secondary)	04	10.00
Contractors	02	5.00
VEO’s and WEO’s	04	10.00
Total	40	100.00

Source: Compiled by the Researcher 2016

3.7.4    Sampling Technique

The researcher considered convenience towards attainment of the objective in designing the research procedure, because of this consideration, the researcher opted to deliberate sampling procedure.

3.7.4.1 Deliberate sampling

This technique under non-probability sampling is also known as purposive sampling; it involves purposive or deliberate selection of particular unit in a given population for constituting a sample which represents whole population. The researcher was in position to use deliberate sampling because of resources available at hand and time allowed to complete research paper to interact with respondents from selected departments of Muleba District Council. The researcher willfully decided to include the respondents from selected sections in the study so as to provide valid and reliable data relevant to factors affecting procurement contracts implementation and management.

3.8  Reliability and validity of data

3.8.1 Reliability 

Saunder et al (2003), defines reliability as the extent to which an experiment, test or any measuring procedure yields the same result on repeated trial. Further definition of reliability is that of Phelan & Wren (2005) who stated that reliability is the degree to which an assessment tool produces stable and consistent results. This produces the same results in various measurements. To ensure reliability of data the researcher used inter-rater reliability orientation which is a measure of reliability used to assess the degree to which different judges or raters agree in their assessment decisions.

3.8.2 Validity

Phelan and Wren (2005) states that validity refers to how well a test measure what it is purported to measure. While reliability is necessary, it’s alone not sufficient. Sampling validity ensures that the measure covers the broad range of areas within the concept under study. The study needs panel of experts to ensure that the content areas are adequately sampled. The test reflecting what an individual personally feels is considered the most important or relevant area. The researcher ensured that the study obtains ability to show results which are verified against the stated objectives. Therefore, the validity of this study was verified by matching research objectives with actual observed outcome of the research tools.

3.9 Management and Analysis of Data

3.9.1 Data Management

Data management involved researcher’s execution plan of controlling information generated during a research project. The plan put into consideration the types of data, methods of collecting and storing data and the usefulness of data in lifecycle of research. The use of Research Data Management files enabled researcher to store data that were used in the study. This involved systematically organizing mass of raw data collected in a manner that facilitated analysis of data. The researcher assigned numbers directly for closed ended questions in the questionnaires and for open ended questions the researcher categorized all responses given and assigned numbers to them.

3.9.2. Data Analysis

The initial analysis  involved noting patterns and consistencies in the subjective data, while also observing similarities and differencies between individual narratives. The techniques for qualitative data analysis were used consistently with interpretivist approach. Therefore, qualitative techniques were used in analyzing data that do not require numeric figures.

The researcher put in place the use of descriptive codes by applying initial coding that involved putting tags, names and labels against the pieces of data. The researcher also applied memoing an operation that happens simultaneously with coding, it is substantive and theoretical. These memos were used in elaboration of concepts or suggesting ways of doing things, or were relating different concepts to each other. Ideas were constantly recorded as they occurred as memos. By analysing data made it possible for researcher to gain insights into the process involved in procurement contracts implementation and management through the categories and concepts put forward by the participants. The use of Microsoft Excel assisted in analyzing data, and producing figures and tables, and simple percentage thus, meeting objectives of the study.

3.9.3 Expected Results

The study is expected to be among of the important drivers of national development and improved peoples’ living standards from value that are created by contract worth. The targeted population on the effective procurement contracts implementation and management provided researcher with relevant information pertaining with the study. The researcher narrated out the best and recommendable proper contract implementation and management practices learned on the journey to accomplishment of research tasks.

Finally, the output of this study is an advantage to the researcher by meeting requirement for partial fulfilment of the requirement for the award of Certified Procurement and Supplies Professional by the Procurement and Supplies Professionals and Technicians Board.

3.10  Limitations of the Study

Murnan and James (2004) states that limitations of the study are those characteristics of design or methodology that impact or influence interpretation of the findings from the research. They are constraints on generalizability, applications to practice, and/or utility of findings that are the result of the ways in which researchers initially chose to design the study and/or the method used to establish internal and external validity. The researcher  consulted a librarian in order to avoid limitations that results from lack of prior research studies on the topic. The researcher applied well the methods chosen to collect data in order to avoid insufficiency of reliable data of which can limit the scope of researcher’s analysis to data.

 

CHAPTER FOUR

FACTS FINDINGS, ANALYSIS AND DISCUSSION

4.0  Introduction

The main objective of this research was to examine the effectiveness of procurement contracts implementation and management in LGAs. This chapter presents and analysis the findings of the research work. The researcher managed to collect data across different departments using various methods which included interviews, observations and review of various documents. The collected data were edited, coded and entered into computer software for analyses. Below are the analysed findings:

4.1 Profile of respondents

The researcher had wanted to first of all know about personal information regarding the respondents as this would help in analysis of the data. The researcher’s intention is supported by Schmidt and Hunter (1998) who investigated how different individual characteristics, such as education, work experience and general mental abilities relate to job performance. The following areas were covered:

4.1.1 Response Rate and Coding of Respondents

A total of 40 respondents were expected to participate in research study by being interviewed. It was successful that the intended number of respondents were reached, interviewed and responded to various interview questions. Therefore the response rate in this study was 100% which is considered excellent hence it allowed further analysis.

Table 4.1 Response rate

Respondent	Expected number of respondents	Actual number of respondents	Percentage (%)
Procurement Management Unit staff	04	04	10.00
Top management staff	03	03	7.50
Engineering Departments Staff (Water, Works, Irrigation)	10	10	25.00
Planning department staff	03	03	7.50
Finance department staff	05	05	12.50
Health Department (MMAM)	04	04	10.00
Education Departments (Primary & Secondary)	04	04	10.00
Contractors	02	02	5.00
VEO’s	02	02	5.00
WEO’s	02	02	5.00
Total	40	40	100.00

Source : Field Data, 2016

To make it simple in recording and analysing findings the researcher labelled interview question as P as shown in appendix III and responses as R. Respondents were numbered from number 1-40, this pattern of coding is as shown in table 4.2 below:

Table 4.2 Coding of respondents

Department of respondents	Code of response and label of respondents
Procurement Management Unit staff	R-1 to 4
Top management staff	R-5 to 7
Engineering Departments Staff (Water, Works, Irrigation)	R-8 to 18
Planning department staff	R-19 to 21
Finance department staff	R-22 to 26
Health Department (MMAM)	R-27 to 30
Education Departments (Primary & Secondary)	R-31 to 34
Contractors	R-35 to 36
VEOs	R-37 to 38
WEOs	R-39 to 40

Source : Researcher’s model, 2016

From table 4.2 above, when written such as R-16, R stands for response and 16 stands for interviewee labelled sixteen who is found in engineering department.

4.1.2 Age of Respondents  and Working experience with the institution

The field data revealed that respondents are in different age categories. This is as indicated in table 4.3 below that 7(17.5%) of respondents belong to the age group of 21-30 years, 16(40%) of respondents were between 31-40 years, 10(25%) of respondents fall under 41-50 years and 7(17.5%) of the respondents were between 51-60 years.

Table 4.3 : Distribution by age group

Age group	Frequency	Percentage(%)
21-30 years	7	17.5
31-40 years	16	40.0
41-50 years	10	25.0
51-60 years	7	17.5
Total	40	100

Source : Field Data, 2016

The finding in table 4.3 above shows that 82.5% of respondents involved in contract implementation and management at Muleba District Council their age are between 21-50 years. This implies that Muleba District Council has the most economic active workforce for accomplishment of integrated work of the organization that includes all activities of contract implementation and management. This is supported by previous researchers as follows; Hernandez, Ping and Mac Whinney (2005, p.220) pointed out that the idea of biologically determined critical period plays a pivot role not just in linguistic theory, but in cognitive science as a whole.

Verhaegen and Salthouse (1997) stated that cognitive abilities decline from some stages in adulthood. Their studies show that important cognitive abilities, such as reasoning, speed, and episodic memory decline significantly by the age of 50. On the other hand; the study done by Migino (1988) observed that active aging reflects the desire and ability of many to remain engaged in economically and socially productive activities while the risk of chronic illness and disability increase with age, means that it have direct relationship.

The researcher designed an interview guide question to understand how long respondents have been working with the institution; To make it get known by researcher the respondents were asked to state how long they have served in Muleba District Council. The results are presented in table 4.4  below of which 5(12.5%) of the total respondents had worked for only 0-1 years, 18(45%) had worked for 2-5 years, 14(35%) had worked for 6-10 years while only 3(7.5%) had stayed for 10 years and above. The findings show that many respondents have worked with the organization for 2- 10 and above years.

Table 4.4 Duration of employment at Muleba District Council

Year of Working Experience	Number of Respondents	Percentage(%)
0-1 year	5	12.5
2-5 years	18	45.0
6-10years	14	35.0
Above 10 years	3	7.5
Total	40	100

Source: Field Data 2016.

The length of stay at the organization could easily support that contract implementation and management stakeholders at Muleba district council are efficient and confident to their work. Bastien (2006) by pointed out benefits of hiring old workers which supports the findings as here under mentioned:

• Efficient and the confidence to share their recommendations and ideas make older workers ideal employees. Their year of experience in the work place give them a superior understanding of how jobs can be done more efficiently which saves companies money. Their confidence built up through the years means they won’t hesitate to share their ideas with management.
• Maturity comes from years of life and work experience and makes for workers who get less rattled when problems occurs.
• Setting an example for other employees is an intangible value many business owners appreciate. Older workers make excellent mentors and role models which makes training other employees less difficult.

While supporting experience towards organization productivity, Erickson and Gratton (2007) pointed out that people will become long-term, deeply engaged employees of the company if their work experience is what they expect it to be and if the firm’s values and attributes match theirs.

4.1.3 Education Level of Respondents

Table 4.5: Educational level of respondents

Level of Education	Number of Respondents	Percentage (%)
Primary Education	1	2.5
Ordinary & A-Level of Secondary Education Level	1	2.5
Certificate Education Level	3	7.5
Diploma Level	12	30.0
Bachelor Degree Level	21	52.5
Masters Degree Level	2	5.0
Total	40	100

Source: Field Data, 2016

Table 4.5 above reveals that 2(5%) of respondents had below certificate level of education while 3(7.5%) had a certificate level of education, 12(30%) of the total respondents had diploma and majority of the respondents 21(52.5%) had degree qualification. Only 2(5%) had masters degree qualification. This shows that procurement contracts implementation and management in Muleba District Council are dealt by employees (stakeholders) with sufficient academic and professional qualifications. This is also a healthy situation for the organization because educated people have knowledge and skills to perform their jobs efficiently and effectively.

Moreover, among 23 respondents identified by researcher to have possessed bachelor degree and masters degree comprises of 9 Engineers, 2 Procurement Officers and 2 Planning Officers. These 13 staff are mostly engaged in contract management issues, therefore this shows that the contract management team is academically and professionally sound at Muleba District Council. From the findings in table 4.5 above, it is clear with no doubt that academically active respondents will effectively provide best data when interviewed or observed by researcher. This also supports the study done by Sitthy (2001) who said that education level of an employee determines his/her ability in day to day activities.

4.2 Adherence to procurement contract management procedures in LGA’s.

Putting into consideration the research question resulting from the above objective, the researcher wanted to know whether there is effectiveness in procurement contracts implementation and management in LGA’s. This was put so because wherever there is effectiveness implied that layed down procedures are adhered to and implemented accordingly.

Table 4.6 summarizes the findings from the field data about effectiveness in contract implementation and management in Muleba district council effectiveness in procurement contracts implementation and management.

Table 4.6 Effectiveness representation in the organization

Presence of effectiveness	Interviewee response and suggestion of level of effectiveness
Agree with reservation	The respondents described how contract implementation and management are undertaken at their organization, they were able to draw various examples of works contracts. They demonstrated that:  “effectiveness at Muleba District Council can not be termed to be excellent because not at every step of contract execution after site possession engineers are present (interviewee 14)”  “I can not say that there is effectiveness at my organization while still there are works of the contracts which were not completed within agreed time from the date the contract was signed (interviewee 3)”. “Effectiveness in contract management in my organization is affected by inconsistence in flow of fund for supervision and payment of contractors(interviewee 21 & 24 ) The number of respondents that fall under this category were observed to be thirty three out of fourty.
Observed as they have agreed	Respondents presenting their opinion on effectiveness that at “Muleba District Council procurement processes such as tender documents preparation, tender advertisement, receiving of bid, evaluation of tender, preparation and issuing of contracts documents to contractors are done and many projects are completed on time but those which are timely completed their contract sum falls below TZS 200,000,000/= (interviewee 1)”. The number of respondents that fall under this category were four out of fourty.

        Source: Field Data 2016

From Table 4.6 above finding shows that majority of the respondents, their opinion to procurement contracts implementation and management  is that it is not much effective because the interviewed staff agreed with reservations. A small number of the respondents didn’t put reservation when responding to effectiveness of contract implementation and management in their organization. The response from that small number of respondent shows weakness within itself, it demonstrates that the council is incapable in managing contracts with large sums of money which mostly are complex projects.

The interviewed staff mentioned causes and justifications of ineffectiveness at Muleba District Council to be the presence of works contracts not completed in time.

The ratio of delayed completion can be to every ten(10) site handled over to contractors, one(1) is not completed within agreed time in each financial year (interviewee 17).

Furthermore, respondents states reasons for  ineffectiveness are problems encountered in flow of fund from central government and donors to fund projects, deficiency in required skills and facilities such as internet service, transport and the like to ensure effective transportation, communication and information flow. Also some respondents pin pointed the presence of employees at Muleba District Council who are not time conscious when dealing with issues related to contracts implementation and management and finally are the bureaucratic procedures set down in laws and regulations governing contracts issues are factors leading to ineffectiveness.

From the field data the researcher found that majority of the respondents indicated that procurement contracts implementation and management at Muleba District Council is weak, this is taken by researcher as model for and also true for most of the LGAs in Tanzania.

This view has been supported in Tanzania Third Social Action Fund Operational Manual, (2013, Chapter 8 pp.47) that strong procurement procedures will improve the efficiency and effectiveness of the implementation of Tanzania Third Social Action Fund- TASAF III programme through:

• The timely purchase of needed goods and services which ensures they are available when needed.
• The ability to achieve value for money through the use of competitive processes; and
• The use of transparent and accountable systems which both engender trust by programme stakeholders, and safeguard the reputations of the programme and its implementers.

The researcher also required the respondent to state about the presence of contract review system at Muleba District Council and to state what are reviewed together with the findings of the review. This question was purposely set to enable researcher understand whether Muleba District Council adhere to contract management procedures because contract review is among those procedures. Goodrich (2013) states that one of the steps in contract management is contract revisions and amendments. When overlooked items are observed during review, systems must be put in place to amend the original contract.

Table 4.7 Patterns of responses on contract review:

Patterns of Responses	Response of interviewee to interview guide questions
There is no formal system for review of contracts at Muleba District Council	“Review is done when it is observed that there is a problem within a given contract document or undertakings” “I can say that it is there but it is done informally, to date there is no proper time table or formal arrangement set down for contract review (interviewee 6)” “Done when need arises, it is situational. When it happen so staff within our organization or hired staff to enrich expertism are involved. I remember we did it in past years, we reviewed the BOQ, drawings and work programme for contracts under our departments because several concerns was rised by contractors (interviewee 9)” The number of respondents observed to fall under this category were twenty seven out of fourty.
Contract management review is done when preparing for answering audit querry and arising matters in CMT and Full Council Meetings	“We review contract as preparation for answering audit querry and arising matters in CMT and Full Council Meetings (interviewee 16)” “In case no challenges, problems or misunderstanding between project managers and contractors management doesnot call for contract review. Despite that this factor makes us review the contract implementation or management procedures, we see the review exercise as disturbance especially when it comes time for auditing at our council (interviewee 19)” The number of respondents observed to fall under this category were ten out of fourty.
Contract management review system is not existing at Muleba District Council	“Well it has been two years and some months of my work experience at this organization. But I cant remember when my Head of Department or District Executive Director told us that certain date or certain week will be date for making review of ongoing project contracts. Because of this I assure you that no contract review system here! (interviewee 10)” The number of respondents observed to fall under this category were three out of fourty.

Source: Field Data 2016

From table 4.7 above, majority of the respondents stated that there is no formal system of contract review at Muleba District Council while minority of the total respondents said that contract management review is done when preparing for answering audit querry and arising issues in CMT and Full Council Meetings. Following these responses it is clearly shown that Muleba District Council lack enough time to review the contract, therefore there should be regular and improved audit exercise and recommendations to management that contracts management team are required to undertake formal contract review. This situation also signifies that the Contract Management Team lack knowledge on the benefits of contract review and understanding of contract management procedures.

A very low number of respondents answered that contract management review system does not exist at Muleba District Council. These comments clearly show that the respondents experience does not indicate whether organization follows proper procedures of contract management as stipulated in PPA(2011) and PPR(2013), where by the law requires each contract management procedure to be given equal treatment when each project is implemented.

Findings in table 4.7 above shows that, contract management review is done informally. There is no proper pattern and timetable for contract review prepared for the exercise. This implies that in case the contractor or client does not meet the challenges the contract execution continues to the end.

The researcher also wanted to know weather are changes which are made to contracts. All respondents agreed that there are changes termed as variations, additions, time extensions that appears mostly during contract execution. Since local government does not have formal contract review system as indicated in table 4.7 above, it can be assumed that both contractors and clients come to comprehend the need for changes in contracts accidentally. It should be noted that wherever there is formal system of contract review it is easy to forecast changes of what, how and when to be changed in contract document. By prior forecasting of the changes in contract undertakings, contract implementation schedule is not subjected into risks because there are some of the changes which makes the execution of works of contract stop for sometime waiting approval and solutions to observed changes.

Breedon (2013) pointed out issues that has to be reviewed in contract management.The category and their definitions are as shown in table 4.8 below:

Table: 4.8 Issues reviewed under contract implementation and management

Contract Management Review Category	Issues reviewed under each category
Planning and governance	Clear governance structure, roles and responsibilities and reporting line Evidence of strategic plannning
People	Appropriate level of resource and relevant skills within the contract management team Clear objectives and appropriately delegated authority
Administration	All agreements are appropriately documented Contracts, variations and related documents are well organized There are established procedures, reporting routines, regular meetings
Managing Relationships	Clarity of responsibilities as between department and contractor Effective communication between the parties Effective issue resolution procedures
Managing Performance	Performance management framework is in place Performance is effectively monitored Feedback to contractors and ‘fix first’approach to issue resolution Clarity of service levels Audit rights are invoked
Payment and incentives	Clarity of payment processes Effective validation of charges, service credits, etc Incentives and properly aligned to desired outcomes
Risk	A formal risk assessment/risk matrix is in place Risk is regularly reviewed Contract management staff are aware of of risk management provisions of the contract
Contract Development	There is appropriate governance and authorisation around contract changes Changes are clearly communicated and understood by both parties

Source : Breedon, (2013)

By considering the above presentation in table 4.8 and the field data collected it justifies that there is no formal system at Muleba District Council which has been arranged similarly to the pattern presented in table.

There are some of the project improvement that can be envisaged in the course of contract execution. These improvements are some times born by changes in technology that necessitate changes to be made in contract. On the absence of formal review of the contract, it is difficult for the client to understand technological worthiness and what part of the contract need adjustment towards improved project quality.

A good contract implementation and management procedures requires regular contract management review system, due to responses obtained from field work it can be concluded that Muleba District Council has no proper arrangement for contract management review prepared to suit all contracts, the situation can be generalized to exist in many of the LGAs in Tanzania. The implication for lack of contract management review system is that local government does not follow all contract management procedures.

Under this research study objective the researcher also wanted to discover either there are contract termination events or there is no termination events and reasons for such termination at Muleba District Council. All respondents mentioned that at Muleba District Council there are events of contract termination.

"Well, there was time the management decided to terminate contracts. I remember only four contract which resulted to termination. Major reasons for these termination was due to contractor’s failure to fulfill their obligations and to meet project deadline (interviewee 2)”.

The researcher requested respondents to mention at what extent; how many events of termination. Respondents mentioned as follows; fourteen respondent mentioned that they remember only one contract was terminated, nineteen respondent mentioned that they remember only two contracts that was terminated and only seven respondent mentioned that they remember more than three contracts that was terminated.

The researcher went further by asking the respondents what they think to be major reasons for termination. Majority of respondents mentioned that one part of the contract proved failure when performing their contractual obligations. They mentioned that part mostly showing weakness are contractors that they fails to adhere to the provisions of contracts.

From this finding the researcher summarizes that during development of contract which resulted to termination there was certain procedure that was partially done or not done at all. Presence of termination events to contracts means there is something wrong that was not clearly addressed in implementation and management of contracts.

4.3 Factors leading to ineffective procurement contracts implementation and management in LGAs.

Under  this objective the researcher designed the question which required respondent to mention areas which mostly lead to contractor’s failure in fulfilling their contractual obligations. Under this interview guide question, the researcher wanted to know to what extent do contractors fulfill their contractual obligations and the impedance therein towards achieving effectiveness in contract implementation and management in LGAs.

Presentation below are explanations of the causes of contractor’s failure in fulfilling their obligations hence ineffective procurement contracts implementation and management in LGAs as they were described by respondents. The findings were as follows:

From the field data, factors leading to ineffectiveness born by the contractor ranges from contractors lack of capital was observed as to be a major weakness on the side of contractors because majority of respondents raised their concern towards this factor. Respondents described how financial constraints had a deep impact on contract management.

“Most contractors lack capital and financially unstable. They depend on loans from financial institutions and payments of the project previous milestone in order to proceed with next milestones (interviewee 35)”

From this findings majority of respondents said that lack of capital on the side of contractor is a major factor that need to be addressed towards improved procurement contracts implementation and management in LGAs.

Following this finding of research, Penh (1999) stated that as one of the qualification of the bidder, the bidder is advised to visit and examine the site of works and its surroundings and obtain for himself on his own responsibility all information that may be necessary for preparing the bid and entering into a contract for construction of the works. The cost of visiting the site shall be at the bidder’s own expenses.

The respondents revealed that most of the bidder does not conduct pre-site visit during bidding stage, the reasons for this was regarded by researcher to be lack of capital and issues of profit maximization on the side of contractors. The permission to visit site is granted with conditions of financial implications as further stated that the bidder and any of his personnel or agents will be granted permission by the principal to enter upon his premises and land for the purpose of of such inspection, but only upon the express condition that the bidder, his personnel and agents, will release and indemnify the principal and his personnel and agents from and against all liability in respect thereof and will be responsible for death or personal injury, loss of or damage to property and any other loss, damage, costs and expenses incurred as a result of the inspection. In order to ensure that there is maximization of profit and expenditures are cut down, contractors wave pre-site visit step but skipping this procedure impact negatively contract implementation and management at certain stages of project execution.

From the field data it is indicated that the Muleba District Council awards contracts to contractors with financial difficulties because contractors skip some stages during bidding and other stage of contract implementation to add on their profit.

Again, failure of contractor to adhere to contract implementation schedule and the revised work programmes considered to be minor issue since it was stated by very few interviewee as compared to other factors.

“During bidding stage contractors do suggest, develop and offer the project implementation schedule and the revised work programme soon after site possession but the said schedule and programme are not honoured (interviewee7)”.

 The findings about implementation schedule and work programme also supported by  Locke, Shaw, Sarri and Latham (2008) who has contribution in goal-setting theory by defining a goal as what an individual attempts to accomplish; it is the object or aim of certain action. Locke et al, (2008) stated that the basic assumption of goal-setting is that goals are immediate regulators of human action. Therefore, since contractors do not follow the working schedule properly, their contractual actions are not properly regulated and can lead into failure to accomplish goals set out.

Regarding this interview guide question respondents described a number of their experiences about contractor’s employees based on their sufficiency in terms of number, qualifications  availability and their terms of employment.

“Contractors use temporary employment which is characterized by lack of job security. Temporaly employed labours and casual labours lack guarantee of continued employment after completion certificate of the current project is issued. Because of this there is ineffectiveness towards implementation of some contract procedures by contractors (interviewee 15)”.

“In the bid documents from contractors there are sufficient list, academic and professional certificates and curriculum vitae of contractor’s personnel but these suggested personnel can not be found on site during contract implementation forcing clients to take actions towards appropriate substitutions of personnel (interviewee 2)”.

Boswell (2006) demonstrated that research has found that limited term employees have reduced levels of commitment to managerial goals, and are likely to demonstrate lower level of effort and cooperation. This can be so because they feel like ‘outsiders’.

Going further to the finding of the research, some other respondents found that contractors have insufficient number of skilled personnel and personnel with advanced professional level. Due to this finding it can be interpreted that contractors in Muleba District Council use limited term employees that is why there are delays in completion of the contracts, terminations of contracts and absence of training programme to contractor’s personnel.

Many contractors lack sufficient number of skilled personnel with advanced professional level personnel required to carryout pricing of BOQ, provision of guidance when preparing bid document that will be regarded responsive, to conduct pre-bid site survey and supervision of all works of the contract for the project (interviewee 11).

The study further revealed that some contractors are not in position to accept low profit or loss in most of their work.Therefore, contractors are usually thinking on how they can generate a maximized profit, sometimes ideas coming out of their mind are detrimental to client.Because of this situation, it can make contractor’s failure to accomplish project objectives accordingly. The respondents showed this as it is presented here;

Large number of contractor’s are for profit maximization motives, they can detriment some elements of quality. Because of this element of some of the contractor’s trustfulness nature, contract implementation requires closely supervision to overcome changes of concrete ratio, gauge of iron sheet and the like (interviewee 8)

The study findings also revealed that contractors does not possess their own tools, equipment and plants. They use most of hired equipment.

 A large number of contractor uses plants and equipment that are hired from other companies to carryout their contractual assignment. The whole district, I mean Muleba District there are only two companies known to me with own equipments and those equipment are getting older (interviewee 36)

Under this research objective, the researcher also wanted to know and generate knowledge on factors that can lead into success or failure to implement and manage procurement contracts. From the findings these can be presented as follows:

Table 4.9 Researcher’s Model of Factors for Success

Response Level	Suggested Factors by respondents (interviewee)
Very Essential	i)                    “I think that the idea of effecting all payments required for the contract undertakings on time (interviewee, 22) ii)                  “there are some of the challenges towards success, no matter what type of challenge if both contractors and clients put commitments on fulfilling their contractual obligation including time management in all aspects such as timely contractual correspondents, timely approval of contract issues by CTB and other approving authority are done accordingly expect success (interviewee 27) ” iii)                “The first thing is contractor and client stable capital flow from either central government, donors or financial institutions (interviewee 20)” iv)                “You have got to take it seriously to do things in the most efficient way that require availability of working equipment and tools for work efficiency and safety (interviewee 9)”
Essential	i)                    “But I don’t have much to say, well precence of required number of technical personnel to both contractors and client grant success (interviewee 7)” ii)                  “Find what you can do to motivate contract management team such as buying them means of transport (interviewee 31)”
Moderately essential	i)                    “Yeah! I did’t say that they are similar, but you need to have some mechanisms that fight against individual interest to the interest of the organization pertaining projects (interviewee 13)” ii)                  “In the academic world people tend to be more reflective and more analytical managers should arrange training programmes about new changes in experiences and technology to contract implementation and management team (interviewee 2)”

Source: Field data 2016

From table 4.9 above, factors that were mentioned by majority of respondents were grouped to be at a very essential level as they were considered by researcher to be crucial factors that every contractor and client should make sure that he/she treats them in a way that each element fill of being influenced by those factors to attract effectiveness in contract undertakings.

Picton (1986) also supported the findings of this research study on the part of availability of transport that is essential by stating that transport are so essential so that people and goods can be moved from one place to another. Without transport it would be difficult to travel to work or go shopping. People in village will be cut off from the amenities and services provided by towns and cities, and industry would not be able to obtain raw materials or move finished goods to warehouses and then to the shop.

Almost all respondents mentioned the vice versa of the findings in table 4.9 to be the factors for failure in implementation and management of contracts. One respondent also pointed out that the purpose lowering of rates when pricing items of the BOQ with the intention of winning tender is another factor that cause failure in implementation and management of contracts.

The findings in table 4.9 is supported by Hallman (2011); that factors proved to be key contributors to the success of the projects are solid testing, communication and involvement by key staff members, but these are often under utilized in favour of saving time. When clarifying solid contract; stated that a verbal agreement won’t cut the paper it’s written on. The components that will have to be well defined are; a payment schedule, outline system performance criteria, penalties related to performance issues and delivery delays, documentation requirements, training which is provided and issues resolutions. Furthermore, when projects skimp on these key items; solid testing, communication and involvement by key staff members, it is likely to result in delay in meeting project dates, disagreement on what the project is expected to deliver, difficulty in solving issues, confusion on direction, work requirements, and status of the project, additional stress and demands on the time of team members and end users, less satisfaction from the client on the final delivered product.

From the findings obtained under this research objective the researcher can justifies that many ongoing works contracts in Muleba District Council are vulnerable. Vulnerability is about likelihood of each individual contract to fall below a minimum required level of objectives of their procurement which are right quality, right time, right quantity, right source and right place. Vulnerability is therefore the result not only of individual mishap, but also the social conditions which follow from systematic differences in the flows of resources and opportunities which themselves influences capabilities.

4.4 Effects of motivation in procurement contracts implementation and management in LGA’s.

Table 4.10 below shows distribution of respondents on whether the organization motivates contracts implementation and management team.

Table 4.10 Level of Motivation

Level of Motivation	Frequency	Percentage
High	0	0.0%
Average	09	22.50%
Low	13	32.50%
No	18	45.00%

Source: Field data 2016

Table 4.10 above shows that eighteen 18(45%) of the total respondents declared that there is no motivation at Muleba Distict Council to contract implementation and management stake holders, while 13 (32.50%) respondents stated that the level of motivation is very low.

The researcher also wanted more clarifications and understanding of contract management team such as PMU Members, Engineering Departments, Planning what do they regard as motivating factors towards improved contract implementation and management in LGAs. The research findings to this concern was as shown in table 4.11 below:

Table 4.11 Motivating Factors to Contract Management Team

Factors of Motivation	Number of respondents who stated this factor	Percentage
Timely payment of salaries, wages and allowances to contractor’s skilled and non skilled labour, engineering staff supervising the project and the council tender board members approving contract matters	40/40	100%
Availability of working tools, equipment and protective gears for safety and security to engineers who are supervising the implementation of the project	40/40	100%
Availability of means of transport such as vehicles, motorcycles to access project site for monitoring and inspection	38/40	95%
The nature of work itself, some respondents stated that are motivated when does not stay idle in the office and when they see project supervised by them are finished on time at required quality that followed laid down specifications.	28/40	70%
Conducive working environment such as office with enough space, well ventilated, supplied with furniture and installed with internet systems	19/40	47.5%
Availability of formal programme for in-service training either by moving out of their working station or in-house training	18/40	45%
Provision of letter or certificate of appreciation to engineers or project managers who manage to perform or supervise contract to certain level of successiful.	15/40	37.5%
Provision of living houses by the council to subordinates which is opposite to the current situation whereby only Heads of Departments are eligible for houses and house allowances	12/40	30%

Source: Field data 2016

From table 4.11 above it is shown that motivation of contract management team during contract implementation and management is one among the vital principles governing effective contract implementation and management in LGAs. From the table 4.11 above four factors have higher scores between 70%-100% these firstly includes timely payment of salaries, wages and allowances to contractor’s skilled and non skilled labour, engineering staff supervising the project and the council tender board members approving contract matters. Secondly, availability of working tools, equipment and protective gears for safety and security to engineers who are supervising the implementation of the project. Thirdly, the nature of work itself whereby some of respondents stated that are motivated when does not stay idle in the office and when they see project supervised by them are finished on time at required quality that followed laid down specifications.

The study also intend to determine and rank factors according to which mostly motivates contract management team in implementing and managing the contract. The results are as ranked in table 4.12 below:

Table 4.12: Ranking of factors of motivation

Group A	High Motivating Factor	(a)    Timely payment of salaries, wages and allowances to contractor’s skilled and non skilled labour, engineering staff supervising the project and the council tender board members approving contract matters (b)   Availability of working tools, equipments and protective gears for safety and security to engineers who are supervising the implementation of the project (c)    Availability of means of transport such as vehicles, motorcycles to access project site for monitoring and inspection
Group B	Moderately High Motivating Factor	(a)    The nature of work itself, some respondents stated that are motivated when does not stay idle in the office and when they see project supervised by them are fineshed on time at required quality that followed layed down specifications.
Group C	Moderate Motivating Factor	(a)    Conducive working environment such as office with enough space, well ventilated, supplied with furnitures and installed with internet systems (b)   Availability of formal programme for in-service training either by moving out of their working station or in-house training
Group D	Low Motivating Factor	(a)    Provision of letter or certificate of appreciation to engineers or project managers who manage to perform or supervise contract to certain level of successfulness (b)   Provision of living houses by the council to surbodinates which is opposite to the current situation whereby only Heads of Departments are eligible for houses and house allowances

Source: Field data 2016

From table 4.12 above, motivating factor can be grouped into four categories which are high motivating factors, moderately high motivating factors, moderate motivating factors and low motivating factors. Here, the field data put out lesson that in order to ensure procurement contracts implementation and management is effective, the employer should follow the rank of motivation as stated above to motivate their project management team.

The findings in table 4.11 and 4.12 above has been supported by Picton (1986); stated that job satisfaction is the pleasure and enjoyment derived from work, and often involves the status of an occupation rather than the money which is earned. Interesting employment which offers some responsibility and the prospect of promotion is more likely to give job satisfaction than a dull, routine, repetitive job with less security. There are many reasons why a man (employees) decides to add knowledge and skills (improve professional status). Very often the desire to make a good living is one motive, but is hardly ever the only motive. Most employee gain a great deal of satisfaction from working with employer who offer training needs to employees.

By aligning the above citation and the findings in table 4.11 and table 4.12 the researcher encourages employers to note that payment of money to employees engaged in the contract implementation and management is not the only solutions to satisfy them. Also the findings shown in table 4.11 and 4.12 are supported by Mc Cornick and Tifflin (2007) ; stated that motivation can be either extrinsic or intrinsic. Extrinsic motivations are those that are external to the task of the job, such as pay, work condition, fringe benefits, security, and promotion, contract of service, the work environment and conditions of work. While intrinsic motivation on the other hand are those rewards that can be termed psychological motivations and examples are opportunity to use one’s ability, a sense of challenge and achievement, receiving appreciation, positive recognition, and being treated in a caring and considerate manner.

Therefore according to these field data obtained from majority of respondents, the researcher insists that the management of LGAs should find out means of motivating the contract management team in order to attract effectiveness in contract implementation and management. Also, the study reveals that LGAs must understand what motives are required by its workers and identify its outstanding workers as one of motivating factor, those who need additional training and those not contributing to the efficiency and welfare of the organization.

 

CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

5.0 Introduction

This chapter is divided into four sections, the first part presents summary, the second part contains conclusion, the third part contains recommendations and lastly the fourth part are suggestions for further research. The chapter presents summary of the finding as explained in the preceding chapters leading to conclusion. Recommendation from the study and suggestions for further research are also included in this chapter. Objectives of the study and the research questions that were to be answered by the study were considered as the basis towards making conclusions and recommendations.

5.1 Summary

The researcher made summary of this work out of the findings to every research objectives as follows:

5.1.1 Procurement contracts management procedures in LGAs

According to the respondents, following all contract management procedures by the LGA’s is crucial for the well being of the organization. It avoids unnecessary delays and poor quality of the products expected out of the contract. A majority of respondents felt that procurement contracts implementation and management in Muleba District Council is not much effective. This is summarized as ineffectiveness is the implication that the stipulated procedures for contract management are not worked upon accordingly. The respondents also commented that contract management review system at Muleba District Council is done informally especially when it is time for auditing. However, right and regular review of the contract implementation and management provides better overview of all works required to a project, allowing improvements and amendments and finally is ensuring quality of the project in turn the well being of the community.

Therefore, the implication for ineffectiveness in contract and lack of contract management review system is that LGA’s does not follow all contract management procedures.

5.1.2 Factors leading to ineffective in procurement contract implementation and management in LGA’s

Regarding this research objective, the findings revealed that there were factors leading to ineffectiveness of procurement contracts implementation and management at Muleba District Council. Causes of ineffectiveness entails so many things in this context. It had to do with weakness born by contractors whereby many respondents felt that most contractors lack capital and they are financially unstable. Contractor have no proper number of skilled personnel, uses plants, equipment and tools that are hired, some contractors are untruthful in nature to their work, provide temporally employment to their labour and finally do not honour project implementation schedule, work programme.

On the side of client it was noted from respondents that in order to succeed, client should ensure timely payments of contractors bills, regular contractual correspondences, timely approval of contractual issues by approving authority, constant flow of project funds from central government and donors, provision of working equipment and safety tools to supervisors of the contract and motivating contract management team.

Therefore, any under performance related to these factors of success leads into ineffectiveness in procurement contracts implementation and management in LGAs.

5.1.3 Effects of motivation in procurement contracts implementation and management in LGAs

From the study a majority of respondents felt that monetary rewards was one among other motivators. Under monetary rewards, respondents didn’t suggest what amount of pay is required instead they suggested that payment of salaries, wages and allowances should be made on time to all parties and stakeholders in a given contracts with right for payment. However, on the other hand majority of respondents noted that availability of working tools, equipment and protective gears for safety and security at work are another motivators.

Again a majority felt other factors to be very good motivating strategy in order to achieve project objectives. These also includes; conducive working environment, availability of training opportunities to employees, provision of letters or certificates of appreciation to project management stakeholders showing outstanding performance and provision or payment for living houses of subordinates.

Therefore in order to ensure effective procurement contracts implementation and management in LGA’s the management should be keen on having good scheme for rewarding hence motivating the employees.

5.2 Conclusion

The researcher concluded that there are number of challenges so far to improve the procurement contract implementation and management at Muleba District Council. These challenges are such as some employees and politicians to have vested interests in projects, irregularly fund flow from central government and donors, climatic conditions since most areas of Muleba District receives high rainfall and the district is endowed by islands, insufficient working tools and equipment such as vehicles, motorcycles, boats for navigation to islands and quality test tools, poor infrastructures such as rural roads, engaging of contractors with weakness and lack of clear line within which contract management procedures are exercised.

Moreover also researcher concluded that still there are opportunities at Muleba District Council that can be utilized towards effective procurement contracts implementation and management. Available opportunities are such as availability of employees with high qualifications, presence of older employees/workers that can make excellent mentors and be role model to workers who lack work experiences and new hire and finally is the presence of clearly defined departments within an organization. These opportunities are within an organization, under systematically built out team split and a very good motivation strategy Muleba District Council can be seen as a great achiever in contract implementation and management.

Opportunities for Muleba District Council found in outside environment are such as establishment of procurement authority, contract management guidelines provided by PPRA, availability of programmes from development partners such as WSDP and DADPs, central government role pertaining major policy decisions on such things as the law which includes PPA 2011 and PPR 2013.

It is time for Muleba District Council and other LGAs to ensure opportunities are utilized towards effective procurement contracts implementation and management so as to provide the services and amenities which most directly affect day to day lives of individuals and community as a whole.

5.3 Recommendation

Following the findings of this research study, the researcher put forward recommendations as explained here under;

5.3.1 To the government

The interviewed people notified that most contractors have financial difficulties that cause ineffectiveness in contract implementation and management in Muleba Disrtict Council and other similar organizations. The government should put in place the mechanism of how to boost contractors cadre for sustainable national development. It is suggested that a government bank to be inaugurated to allow contractors access loan with small amount of interest.

5.3.2 To the employees

The study revealed that there are some opportunities at Muleba District Council such as presence of older workers and employee with sufficient qualifications. Employee should apply available opportunities towards improved customer services hence effective procurement contracts implementations and management.

 5.3.3 To management

The researcher’s recommendation to management fall under four categories following the findings of the study.

Firstly, management should ensure that to every financial year budget purchase of quality measurement tools and equipment that simplify contract execution are included and the budget set forth is honoured.

Secondly, management should note that there is a need to have a comprehensive motivation scheme in all aspects related to contract implementation and management in an organization. Motivation to employees works directly proportional to their output hence improved organizational productivity.

Thirdly, from observation in some offices of Muleba District Council the researcher revealed that there is no enough offices space and are not supplied with required furniture and other working facilities. Management of Muleba District Council and other LGAs should ensure that they are providing employees with offices with enough space and supplied with furnitures.

Fourthly, management should provide proper training at work to employees to match with changing world on contract implementation and management. Trainers can be obtained from employees of the organization, hired from other government or private institutions such as PPRA, PSPTB, higher learning institutions or consultant firms.

5.4 Areas for Further Study

According to researcher, further studies should be undertaken on the reasons why contract management procedures are not properly followed by the LGAs. Under this area also further study should establish reasons for improperly implemented and managed contracts and finally establishment of what factors motivates employees to work in an organization. These topics have been suggested as they are since the study pointed out that there are weakness in implementation and management of contracts in Muleba District Council. The areas studied to have weakness are  regarding to contract management procedures, effective contract implementation and management and motivation factors.

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