Contract Management, Inter Functional Coordination, Trust and Contract Performance of Works Contracts in Ugandan Public Procuring and Disposing Entities

Abstract

Purpose – The paper aims to improve upon the highly unconcretised works contract performance research, by examining the relationships between contract management, inter-functional coordination, trust and works contract performance and whether these variables have an effect on the contract performance.

Design/methodology/approach – This study is cross-sectional and correlational. It also takes the descriptive and analytical design.  Data were collected from a representative sample of 108 completed and fully documented works contracts in the central government procuring and disposing entities in Uganda, in the financial year 2013/2014. Out of these, responses from 64 were used for analysis, using the Statistical Package for Social Scientists (SPSS).

Findings – The results suggest that delivery management is relatively more important than relation management and contract management and that in a rules based system, the importance of inter-functional coordination to contract performance is minimal, further expounding on the critical difference between private and public procurement systems.

Originality/value – This study, unlike other studies in developing countries, considers individual issues of contract performance rather than holistic performance of a procuring and disposing entity. Works contracts considered in this study, have unique inherent challenges that deserve being isolated and studied. The study also makes an original contribution that whereas inter-functional coordination has been in general terms recognized by literature as important determinant for contract performance, in a rules based system, inter-functional coordination is not as important as in a best practices system in enhancing performance of a works contract. Insights from our findings provide a platform for subsequent academic research.

Practical implications – From the results, practitioners appreciate the need to pay for certified completed works in reasonable time, and to effectively manage the relationship between the functions in a procuring and disposing entity and contractors. Insights for the study demonstrate the need for policy makers to adjust laws governing public procurement to allow reasonable interaction between the procuring and disposing entities contract management teams and contractors.

Type of paper – Research paper

Keywords – contract management, Inter-functional coordination, Trust, Contract performance.