CONTRACT MANAGEMENT PRACTICES AND COMPLETION OF ROAD

CONSTRUCTION PROJECTS BY THE COUNTY GOVERNMENT OF

MACHAKOS, KENYA

GLORIA SYOMBUA MULINGE

D53/NKU/PT/33337/2014

A RESEARCH PROJECT SUBMITTED TO THE BUSINESS SCHOOL IN

PARTIAL FULFILMENT OF THE AWARD OF A MASTERS OF BUSINESS
ADMINISTRATION (PROJECT MANAGEMENT OPTION) OF KENYATTA
UNIVERSITY

JULY, 2017
 DECLARATION

This research project is my original work and has not been submitted for a degree

course or any other award in any other University.

Student’s Sign __________________ Date _________________________

Gloria Mulinge

D53/NKU/PT/33337/2014

This research project has been submitted for examination with my approval as the

university supervisor.

Signature ……………………………… Date ………………………………………..

Ms. Gladys Kimutai

Lecturer,
School of Business,
Management Science Department

ii
 DEDICATION

I dedicate this research project to my family for their moral and financial support

accorded to me during my studies. May God bless them all abundantly.

iii
 ACKNOWLEDGEMENT
I would like to acknowledge the efforts of my supervisor for the support and guidance
while writing this research project. My appreciation goes to my college colleagues
who also offered me encouragement and support during my studies. I give thanks To
God Almighty for His mercy and good health and the spirit for enabling me write this
project.

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 TABLE OF CONTENTS
DECLARATION................................................................................................................. ii
DEDICATION.................................................................................................................... iii
ACKNOWLEDGEMENT ................................................................................................. iv
LIST OF TABLES ............................................................................................................ vii
LIST OF FIGURES ......................................................................................................... viii
ABBREVIATIONS AND ACRONYMS .......................................................................... ix
OPERATIONAL DEFINITION OF TERMS .................................................................. x
ABSTRACT ........................................................................................................................ xi
CHAPTER ONE ................................................................................................................. 1
INTRODUCTION............................................................................................................... 1
1.1 Background of the Study ........................................................................................ 1
1.2 Statement of the Problem ..................................................................................... 10
1.3 Research Objectives ............................................................................................. 11
1.4 Significance of the Study ..................................................................................... 12
1.5 Scope of the Study................................................................................................ 13
1.6 Limitations of the Study ....................................................................................... 13
CHAPTER TWO .............................................................................................................. 15
LITERATURE REVIEW ................................................................................................ 15
2.1 Introduction .......................................................................................................... 15
2.2 Theoretical Review .............................................................................................. 15
2.3 Empirical Literature ............................................................................................. 19
2.4 Summary of Literature Review and Gaps ............................................................ 29
2.5 Conceptual Framework ........................................................................................ 31
CHAPTER THREE .......................................................................................................... 32
RESEARCH METHODOGY .......................................................................................... 32
3.1 Introduction .......................................................................................................... 32
3.2 Research Design ................................................................................................... 32
3.3 Target Population ................................................................................................. 33
3.4 Sampling Techniques and Sample size ................................................................ 33
3.5 Data Collection Procedure ................................................................................... 35
3.6 Validity of Instruments......................................................................................... 36
3.7 Reliability of Instruments ..................................................................................... 36
3.8 Data Analysis Procedure and Presentation........................................................... 36
3.9 Ethical Considerations.......................................................................................... 38
CHAPTER FOUR ............................................................................................................. 41
RESEARCH FINDINGS AND ANALYSIS ................................................................... 41
4.1 Introduction .......................................................................................................... 41
4.2 Response Rate ...................................................................................................... 41

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4.3 Respondent’s Characteristics ............................................................................... 42
4.4 Contractor Management Practices ....................................................................... 44
4.5 Contractor Prequalification .................................................................................. 49
4.6 Contractor Payment Methods ............................................................................... 52
4.7 Contract Change Management Practices.............................................................. 58
4.8 Road Projects Completion .................................................................................... 67
4.9 Regression Model ................................................................................................. 70
CHAPTER FIVE .............................................................................................................. 73
SUMMARY, CONCLUSIONS AND RECOMMEDATIONS ..................................... 73
5.1 Introduction .......................................................................................................... 73
5.2 Summary .............................................................................................................. 73
5.3 Conclusions .......................................................................................................... 75
5.4 Recommendations ................................................................................................ 76
5.5 Recommendations for Further Studies ................................................................. 77
REFERENCES .................................................................................................................. 78
APPENDIX ONE; INTRODUCTORY LETTER ......................................................... 71
APPENDIX TWO; QUESTIONNAIRE ......................................................................... 72
APPENDIX THREE; NACOSTI AUTHORIZATION LETTER ............................... 78

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 LIST OF TABLES
Table 3.1:Sampling Frame ............................................................................................... 35
Table 3.2; Operational Definition of Variables ............................................................... 38
Table 4.1: Contract Management .................................................................................... 49
Table 4.2: Contractor Prequalification ............................................................................. 52
Table 4.3: Factors Affecting Payment to Contractors...................................................... 56
Table 4.4: Contractor Behaviour over Non-payment...................................................... 58
Table 4.5: Contract Change Management Practices ........................................................ 61
Table 4.6: Contract Change on Road Projects ................................................................. 64
Table 4.7: Supervision of contracts.................................................................................. 67
Table 4.8: Road Performance Metrics ............................................................................. 69
Table 4.9: Model Summary ............................................................................................. 70
Table 4.10: ANOVA ........................................................................................................ 70
Table 4.11: Linear Relationship Coefficients .................................................................. 72

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 LIST OF FIGURES
Figure 2.1; Conceptual framework Source ...................................................................... 31
Figure 4.1: Employee Distribution by Gender................................................................. 42
Figure 4.2: Length of Time Employed ............................................................................ 43
Figure 4.3: Level of Employee Education ....................................................................... 44
Figure 4.4: Completion Rate of Contractors .................................................................... 45
Figure 4.5: County Government Supervision .................................................................. 46
Figure 4.6: Prequalification of Contractors...................................................................... 49
Figure 4.7: Reasons for Delay ......................................................................................... 52
Figure 4.8: Contract Change Management Practices....................................................... 59
Figure 4.9: County Supervision of Contractors ............................................................... 64
Figure 4.10: Rate of Completion ..................................................................................... 67

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 ABBREVIATIONS AND ACRONYMS

CIPS Chartered Institute of Purchasing and Supply

CM Contract Management
CSC Contract Selection Criteria
GNP Gross National Product
HSSE Health Security Safety and Environment
KPI Key Performance Indicators
KURA Kenya Urban Roads Authority
NACOSTI National Council of Science and Technology
PSFs Project Success Factors

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 OPERATIONAL DEFINITION OF TERMS

Contractor Screening of construction contractors by project owners or

prequalification their representatives according to a predetermined set of
criteria deemed necessary for successful project
performance

Contractors’ payment The approach in which construction products and services

practices
are priced and paid for.

Contract Change Alteration on conformance of contractor or supplier with

Management Practices contract terms, specifications, service level agreements

Contractor Monitoring and evaluating contractor performance

Supervision Activities

Contract Management The process of systematically and efficiently managing

contract creation, execution, and analysis for the purpose
of maximizing financial and operational performance and
minimizing risk

Project Completion The degree of achievement of certain effort or undertaking

which relates to the prescribed goals or objectives that
form the project parameters

Construction projects Involves coordination between separate enterprises and

workers with varied responsibilities, skills and roles
making the management complex

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 ABSTRACT
There has been poor performance of road contract due to diverse challenges such as
poor management of funds and poor delivery of services to the road user. In addition,
the performance measurement systems aren’t efficient or effective to overcome this
problem. Road contractor’s performance problem appears in many aspects, ranging
from fail in time performance, cost performance and others fail in other performance
indicators. This study sought to establish and investigate the influence of contract
management practices on the completion of road projects by the County Government.
The specific objectives were the effect of contractor pre-qualification process,
contractors’ payment practices, contract change management practices and contractor
supervision activities on the completion of road projects by the County Government
of Machakos County. The completion of road projects was measured by time, cost,
quality, accuracy and speed. The county government has a total population of 458
staff who were the target respondents of this study. Sampling was done using
purposive sampling and stratified sampling to come up with a size of 145 respondents.
Data were collected using questionnaires deployed using drop and pick method. Data
were analyzed using descriptive techniques aided by SPSS software version 21. The
regression analysis results showed that Prequalification, Contractors’ payment
practices, Contract Change Management and Supervision statistically explained
completion of road construction in Machakos. All the independent variables were
found to have a positive linear correlation with the performance of road construction.
The findings of this research showed that the county government of Machakos was
successful in implementing some of the key factors required for effective and timely
completion of roads projects. Of the recommendations suggested in this study, the
most crucial one is the emphasis of professional ethics in contract awarding, contract
supervision and payment methods for continuing county contracts. From this study it
was clear that corruption still needs to be addressed with serious and effective
strategies that involve structural and social changes in approaching the vice. This
study found out that contactor prequalification is an important aspect in predicting
road completion. As was one of the significances of this study, the county government
ought to emphasize on contractor prequalification documentation. Payment practices
were found to have a strong linear correlation with completion of road project
outcomes. This implies that if contractor services are not compensated within the pre-
agreed time then road completion outcomes are bound to suffer. With that in mind, it
is important that the county officials ensure timely and competitive payment packages
that are also less bureaucratic. While contract change Management practices had a
significant role in the completion of roads, its overall effect on the regression model
was the least. However, the fact that contract Management practices is positively
correlated with completion of roads projects at county level, it is imperative that
county officials in charge of procurement stop premature contract termination and
other contract management issues in order to encourage road completion.

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 CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Project management in the construction industry has been a key component in

efficient and sustainable construction methods especially in developing countries. The

area of construction industry is very important in the economic development of any

nation especially in developing countries such as in expanding economy like in Sub

Saharan countries (Ibironke, 2008). An efficient construction sector is a pre- requisite

to operative national development since building civil and industrial engineering

works are usually a major contributor to Gross Fixed Capital Formation, Gross

Domestic Product and National Employment (Oyewobi & Ogunsemi, 2010). The

concerns on performance of road construction and its effect on the economy continues

to be a concern globally with more prominence in the developing countries of Africa

and Asia. For the past two decades the growth of the Nigerian construction industry

has indicated its success on the great contribution to the gross national product of the

country, which was 1.72 as per 2007(Federal Bureau of Statistics). Aminudin (2006)

indicated that up to 30% of construction is rework, labour being at only 40% to 60%

of efficiency in potential and at least 10% of materials get wasted. It is suggested that

rework costs could be ominously higher than figures reported in the previous

literature (Love & Smith, 2006).

The road construction industry plays a major role towards the development and

realization of goals in a society. Construction industry is among the major industries

and adds to about 10% of the gross national product, in industrialized countries

(Navon, 2005). There are numerous complexities associated with the construction

1
industries in its nature as it contains a large number of parties as consultants, cents,

contractor’s shareholders, stakeholders and regulators. Performance of the

construction industry is normally affected by factors such as insufficient funds,

shortage of foreign exchange , political priorities inappropriate contract conditions,

poverty, withdrawal by donors, human capacity social-cultural conditions , corruption

and occurrence of unexpected events for instance wars and draughts , are considered

to the major factors towards poor performance of the projects more so in the

developing countries (Idoko, 2008), (Jekale, 2004), (Andersen, 2008). In many ways,

the pace of the economic growth of a given nation can be measured by physical

infrastructures development, for instance buildings, roads and bridges. The failure of

any construction project is mainly related to the problems and failure in performance

(Hough, 2007) Moreover, there are many reasons and factors that attribute to such

problems.

The challenges facing the construction industry can be grouped. The performance

problems of construction industries in developing economies can be categorized into

three layers: problems of shortages or inadequacies in industry infrastructure

especially in supply of resources, problems caused by clients and consultants and

problems caused by contractor incompetence/inadequacies. Okuwoga (2008)

identified that the performance problem is related to poor budgetary and time

regulation. Long et al (2004) observed that the performance problems arise in large

construction projects resultant to many reasons for instance: incompetent designers or

contractors, poor estimation and change management, social and technological issues,

site related issues and improper techniques and tools. Becerik (2004) stated that the

main performance problem can be divided into two major groups: these are the

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unrealistic target planning, setting or causes originating from the definite construction

normally in most cases the problems arise from both.

It is significant that the Kenyan road construction projects history is marked by ups

and downs with high performance by the national government being perceived today

and a decade ago as apprehended in the succeeding empirical studies. The Kenyan

construction industry has performed relatively well, not accidentally (Wels, 2007),

amongst others. The dominance of small scale contractors is uttered by specific

characteristics of the industry, for instance the wide dispersion of the flexibility in

scale of production, demand, standardization of materials and climatic control on use

of materials, of which some can be immense. Low quality capital demand for entry,

more so for crafted-based jobs (Chan, 2001). This study sought to establish how the

road construction and contract management practices are faring in the devolved

system of governance.

There is always a need to measure performance of roads in a developing economy.

The significance of recognizing road construction performance is apparent all over the

world-wide markets, the results of which are to attract future investment, increase

share value and attract high caliber employees (Kumaraswamy, 2009). Consequently,

it is of importance to deliberate on how a performance of that nature is measured and

how it can be communicated to the wider market, that is, how can it be

comprehended and interpreted by the latent investors, customers and employees. The

basis of expressing performance indicators that attain the latter have been in action as

early as the beginning of our century, Creswell (2008). Equally, some of those

3
indicators have been evaded because as appraisals concentrate on finances Ibironke

(2008).

Good reputations of companies build by project success and also initiating new

projects. The penalties may rather be in terms of productivity loss, surplus

expenditures via means of repair and rework, retest in the short term and re-

inspection. At the long term, deprived efficient can offend reputation. If the company

continues with the same trend it might have to close its shop as well for want of new

projects. When a number of construction companies start to neglect the efficient

facets of their projects, they begin to reflect on the country’s reputation (Hyvari,

2006). Assisting the construction companies to recognize the crucial aspects

responsible for acquiring the desired efficient level success aspects and also to find

the attributes unpleasantly affecting the project efficient, has been the motivating

aspect behind this study. It is comprehended that intensification of the success factors

and minimization of failure aspects ensure the construction industry realizes its

efficient goals (Iyer and Jha, 2006). In Nyeri County, effectual construction projects

can deliver a solid platform for reviving the economy and for building a more balance

and self-determining economy during stable political conditions. In 2013, negligence

of such services, systems and institutions, however, has affected the efficient of life of

the residents and their environment and health (Kemps, 2012).

1.1.1 Completion of Projects

An effective project is delivered in time and has a right quality. There are several

definitions, metrics, determinants and indicators of a complete project. A project is

considered effective if the project is delivered on time, on schedule and acceptable

4
quality. Nonetheless, measuring project success is a composite task since success is

tangible and can barely be agreed upon (Xiao & Proverbs, 2003). A comprehensive

project is a product of complex series of activities that integrate skills and knowledge

to produce a valuable result (Elger, 2008). Project completion has been well-defined

as the degree of accomplishment of certain effort or activity which relays to the

prearranged goals or objectives that form the project restraints (Ahmad, Ismail, Nasid,

Rosli, Wan &Zainab, 2009).

Projects activities are blended by several factors. Timely activities of projects is a

concoction of many important issues influencing cost accounting, repairs, quality

control and maintenance, production management, supply chain, stores, safety and

health (Amin, 2011). It is the completion of a project that enables achievement of the

desired performance indicators in three key areas: scope, schedule and budget

(Alvarado, Silverman & Wilson, 2005). A project is fruitful if it contents all three legs

of the triple constraint, explicitly, specification/performance, cost and time, Greer

(1999). Thomsett (2002) in an broad scrutiny of 20 failing projects over a period of 18

years extended this norms of success as: satisfies stakeholder groups, meets functional

necessities, meets quality requirements and prospects, within cost and deadline,

delivers continued and definite benefits and provides the team with skilled satisfaction

and learning.

Performance dimensions may have one or more indicators, and could be influenced

by various project characteristics. Completion of roads and determinants of

performance of road contractors is complex issues just like are the factors militating

against timely completion of road projects. This was corroborated by Kemps (2012)

who described project delivery as the world’s oldest documented profession with

5
challenges in project efficiency, road contractor’s performance metrics and other

contextual problem that appear in many aspects of road construction more so in

developing countries. Most of the road projects fail in performance of time, others in

cost performance whereas other fail in other performance indicators. There are

additional indicators for problems of road contractor’s performance in developing

countries for instance project management, management between participants,

feedback, and monitoring and leadership skills. In addition, cultural, economic and

political issues are three vital indicators correlated to failures of road projects'

performance in the Country (Becerik, 2007).

Contractors are major determinants of road completion projects. A feature of road

Construction Firms in the developing countries is that, often they are thought to be

one-man enterprises, having low capital and financial base and also lacking the

necessary managerial skills to sufficiently face up to the many and problematic

challenges they continually have to encounter in a distinctive developing economy

such as Kenya’s Bundi(2011). Despite the shortfalls, the contractors in the developing

countries play a major role in the economy. It is contended that, given that these so-

called small firms provide a structural base to the economy and also determine the

productivity of investment and, accordingly, the rate of development in decentralized

and rural areas of the economy, their evaluation of the factors influencing effective

and efficient delivery of road construction projects would go a long way in helping to

develop a useful framework for improving construction performance in the sector

(Ganessan, 2003).

Reworks contribute to time and cost overruns in projects. There are diverse

constraints to the completion of road construction projects as cited by Figueira(2010)

6
who described the main categories of constraints during construction process as

reworks/repairs, defects, material allocation, unnecessary handling and waste of

materials. Rework in construction projects is mentioned to as the unnecessary effort

of rebuilding a process or activity that was erroneously applied in the first instance.

Rework can result from an array of factors such as omissions, failures, errors,

changes, poor coordination and communication and ultimately the profit margins as

well.

1.1.2 Contract Management Practices

It is a common practice for organizations to involve contractors or suppliers in one

way or another to support in providing service or product to meet its intended

requirements in some form of contracts that require being managed (Kumar and

Markeset, 2007). Contract management can be summarized as the process of

systematically and efficiently managing contract formation, implementation, and

analysis for the purpose of exploiting financial and operational performance and

minimizing risk. (Bhardwaj, 2011). Contract management practice is a continuous

concept with many features. It refers the conformance of contractor or supplier with

contract terms, specifications, service level agreements or Key Performance

Indicators and other elements of the commercial agreement (CIPS, 2012). You cannot

achieve completion of contracted projects without contract management practices in

place. This is so because performance key outcome priority is cost, quality, speed and

flexibility which also inform contract management (Ketchen and Hult, 2006).

Contractors should perform their obligations in a conducive environment. It is a major

duty for operating company to ensure contractors perform their duties safely and

timely through suitable contract management procedures (Hotteebex, 2013). Actually,

7
effective contract management has emerged as a crucial function to advance

profitability, support acquiescence and manage risks (Prosidian consulting,

2011).Contract management has attracted attention because while some risks can be

transferred to the contractor/sub-contractors in terms of financial compression for not

finishing a project, the ultimate risk still lies with the operating organization to convey

positive aftermaths which limit exposure to liability (Limberakis, 2012).Bautista and

Ward (2009) commends that, the whole of procurement team should also be involved

in managing the post award contracting activities.

Contract Administration processes and activities such as monitoring and measuring

contractor performance, handling contract change and contractor payment process

should be combined with other departmental essential processes such as financial

management, customer service, schedule management, performance management and

risk management (Hotterbeekx, 2013). Studies have shown that organizations that

have established developed contract management processes are able to produce a

great deal in surplus savings and have a distinctive competitive advantage over their

competitors (Rendon, 2007). On the other hand, incompetent management of

contracts eventually lead to poor operational control, high risks, low customer

satisfaction and unwanted costs (Saxena, 2008). This study evaluated if this is the

situation with road construction projects in the County of Machakos

1.1.3 Road Construction in Machakos County

Machakos County with a population of 1,084,129 million people has seen an un-

preceded upsurge in road construction projects occasioned by the need to create

enough office space as well as improvement of existing public road infrastructure to

cater for the new devolved governments. This has seen the country commit up to 30%

8
of its budget to development, a big percentage of which is going to new roads.

According to the governor of Machakos the county government has a determined

master-plan that will ensure the face of the county lifted by the envisioned planned

Machakos City that provided at attractive lease terms to develop housing to cater for

Nairobi city and Konza techno city which is 15 Km from Machakos. Machakos is set

to become the dormitory for those two cities and therefore there is certainly a high

increase in roads construction activities (Machakos County report, 2013).

However, like any other part of the world Machakos County has had its own share of

challenges in meeting the time deadlines of its construction projects. Indeed most of

projects currently on-going have not been performing to expectations in terms of

timeliness. Indeed most of the projects started in the last two years are way behind the

set time schedules they were meant to be completed (Department of public works and

Housing, 2014). Olatunji, (2010) avers that most projects are finally completed to

specification more or less, although they are seldom on time. Cokins, (2006), Chai

and Yusuf (2013), while stressing the importance of completing construction projects

on time and within budget contends that “time is essence” and that time is “revenue”.

This indicates that any delay in meeting the project completion time certainly

interprets to loss of revenue.

The local studies haven’t focused on factors influencing roads Construction Projects

provision in Machakos County. Musa (2012) sort out a study on the effects of total

quality management towards the performance of Companies in Kenya, a case study of

the Inter build Company Limited. Musa (2012) found that resource management and

human resource management affects performance of the building company to a great

9
magnitude. Bundi (2011) did a survey on encounters in the management of

procurement facilities within the Kenya Urban Roads Authority. She found that

political interventions and insufficient allocations of funds obstruct accomplishment

of KURA activities although the authority fully implements procurement policies.

Nyamwaro (2011) did a study on the analysis of encounters facing the project

enactment a case study of Ministry of Roads Projects. The study comprehended that

lack of awareness and poor communication on POA used in the enactment of the

Ministry's Projects were the major challenges facing project implementation.

1.2 Statement of the Problem

According to government of Kenya (2012) the poor performance of the road contracts

is due to poor management of funds and poor delivery of services to the road user. In

addition, the performance measurement systems aren’t efficient or effective to

overcome this problem. Road contractor’s performance problem appears in many

aspects, ranging from fail in time performance, cost performance and others fail in

other performance indicators. Ugwa and Haupt (2007). The performance and

completion of road construction projects is littered by cases of impairing challenges

mostly attributed to construction contractors. In the past, many road projects were

completed with poor performance as a resultant of many contractors motives for

instance: non-availability of materials, obstacles by client , roads closure, amendment

of the drawing and design, additional works, waiting the decision, variation order,

handing over, changes in Bill of Quantity and delay of getting the drawings

Garel(2004). Nonetheless, the overall situation on the state of road construction

contract management and their efficacy was captured by an empirical study conducted

on the same subject in Nigeria which established that corruption in the contract

10
management practices by the government in the developing world resulting in poor

workmanship by contractors and engineers (Okuwoga & Adeyinka, 2008).

This has been reinforced by studies in the Kenyan construction industry that have

made findings to the effect that cost overrun, delayed completion period, conflicts in

the complicated vendor relationship, poor contract management practices, extortion

and bribery, poor risk mitigation and poor quality work are the norm rather than

exception in the undertaking of contracted construction projects (Kibuchi and

Muchungu, 2012; Cleland and Bidanda, 2009; Lepartobiko, 2012; Chuah et al., 2010).

With a dearth of studies on the effects of contract management practices on the

completion of road projects, this study not only sought to fill the gap but, establishes

the contract management practices by the nascent county government with reference

to Machakos County.

1.3 Research Objectives

The following are the general and specific research objectives of this study.

1.3.1 General Objective

The study sought to investigate the effects of contract management practices on the

completion of road projects by the County Government of Machakos.

1.3.2 Specific Objectives

i. To determine the role of contractors’ pre-qualification process on the

completion of road projects by the County Government of Machakos,

Kenya

11
 ii. To find out the role of contractors’ payment practices on the completion of

road projects by the County Government of Machakos, Kenya

iii. To assess the influence of contract-change management practices on the

completion of road projects by the County Government of Machakos,

Kenya

iv. To determine the effects of contractors’ supervision activities on the

completion of road projects by the County Government of Machakos,

Kenya

1.3.3 Research Questions

Of particular interest to this study were answers to the research questions;

i) How does contractor pre-qualification process affect the completion of road

projects by the County Government of Machakos, Kenya?

ii) How do contractors’ payment practices affect the completion of road projects

by the County Government of Machakos, Kenya?

iii) Which is the effect of contract change management practices on the

completion of road projects by the County Government of Machakos, Kenya?

iv) Which is the effect of contractor supervision activities on the completion of

road projects by the County Government of Machakos, Kenya?

1.4 Significance of the Study

The study findings and recommendations are helpful to many parties. The

management of County Government of Machakos may gain insights on the major

effects of contract management practices on completion of road projects and take

necessary measures to ensure timely completion. The project also helps the

12
government understand the challenges and the needed critical success factors in order

to boost project completion rates and increase the number of customers, revenues and

profitability. The general public, who are the beneficiaries of the projects are likely to

get nuanced details and challenges affecting the construction of roads of in this

county. This study provides reference point to future researchers and academicians in

the area of construction and factors affecting completion of projects.

1.5 Scope of the Study

Due to development efforts road construction in the County of Machakos was

selected. Only tarmacked roads were considered that were constructed under the

commissioning of the county government of Machakos. The respondents to the study

were the county government officials with knowledge on contract management

practices by the County government and completion of road projects by virtue of the

positions they occupy in the county government. The investigation of effects of

contract management practices on completion of road projects were limited to the

study variables contract prequalification process, contractors’ payment practices,

contract change management practices and contractor supervision activities. Other

factors that affect both the construction of roads and contract management practices

were not investigated.

1.6 Limitations of the Study

Challenges and limitations in data collection were faced in course of the research

since most of the relevant information required is usually protected due to its sensitive

nature. The researcher used an introductory letter from the university as well as

assuring the respondents that the information cannot be used for any other purpose

13
apart from the study. Most of the respondents might be expected to be busy

executives who might not have the time to respond to the research instruments in an

instance and so the study adopted a drop and pick method of collecting data using

questionnaires with a follow up visit in between to increase the response rate.

14
 CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

The chapter contains a review of literature arranged as follows; theoretical review in a

framework that outlines the theories to guide the study, an empirical review based on

study variables, a conceptual framework outlining the graphic relationship between

variables and a summary of literature review that expose gaps to be filled by the

study.

2.2 Theoretical Review

2.2.1 Critical Chain Project Management Theory

This study was based on the Critical chain project management theory. It is named

after the crucial element; the extended chain of dependent resourced errands in the

project. The goal of the solution is to safeguard the period or rather the duration of the

project, and thus completion date, beside the effects of individual task resource and

structural dependency, variation, and uncertainty. The road construction projects by

County Government are afflicted by this structural, resource dependence on principal

and variation constrains making this theory ideal.

The outcome is a vigorous and reliable approach that permits teams to accomplish

projects on due time, every time, and most significantly within at most 75% of the

current period for single projects and much less for individual projects in multi-

project environments. The shorter period provides a genuine chance in the

marketplace to distinguish from competitors who deliver worse outcomes, and late at

that, through other methods of project management. It also offers an opportunity to

15
deliver additional projects over all, in the same extent of time, and at no escalation in

operating expense, therefore significantly refining the bottom line (Youngman, 2009).

2.2.2 Principal-Agency Theory

According to Chiappori and Salanie (2003) as cited by Salim (2013); and Oluka and

Basheka (2012) the underlying principle of the principal-agency theory is that there

should be a clear understanding of the needs of the principal and ability of the agent to

meet these needs to reinforce desired performance (Ketchen and Hult, 2006). This is

the expected arrangement between County Government and the multitude of

contractors engaged in the Government construction value chains.

Indeed, when procurement contract is well defined and planned, the principal and

agents find it easy to meet needs of each other in an effectual way resulting to timely

implementation of the contract (Oluka and Basheka, 2012). The principal-agent

theory can proudly be applied to this study with a case as a principal and contractors

or service providers or suppliers as agents. The theory becomes significant to the

study as it highlights the need for robust contract requirements and specifications as

well as the objective process of monitoring contractors’ performance. When contract

requirements roles and responsibilities are well defined, the agents and principals find

it easy to meet needs of each other in a more effective way resulting to timely

execution of the contract in determined performance level.

2.2.3 Bureaucratic Approach Theory

This theory was propounded by Marx Weber in 1947 in order to explain the

happenstance in formal organizations that invariably have bureaucracy a necessary

16
evil. Weber’s bureaucratic approach which considers the organization as a portion of

the wide society based on principles for instance specialization, structure,

stability/predictability, democratic and rationality is seen here as the most significant

and practical model to this study. Weber listed various preconditions for the

occurrence of bureaucracy. These include the growth in population and space being

ran, and the convolution growth of administrative tasks being carried out and the

existence of a financial economy resulting in a necessity for a more effective

administrative system.

Development of communication and technologies has made more efficient

administration possible but also the rationalization and democratization of culture

resulted in demands that the new system delights everyone equally (Weber, 1947).

Weber’s supreme bureaucracy is categorized by hierarchical organization with

defined lines of authority in a stable area of activity, inaction taken on the grounds of

unrecorded and written rules, bureaucratic representatives demanding expert training,

rules executed by neutral officials and carrier development depending on technical

recommendations. In large organizations, and under well distinct conditions, the

organizational structure may be bureaucratic. The crucial elements of a bureaucratic

organization include the use of standard procedures and methods for performing work

and high degree of control to safeguard standard performance.

In agreement with Weber, Mintzberg (1981) identified two types of bureaucracies.

They are standard and professional bureaucracies. The standard bureaucracy is

grounded on efficient enactment of routine work. Professional bureaucracy is

dependent upon effective performance of standardized, however complex works that

17
entails high levels of specialized skills. The standard bureaucracy structure is based

on functions, span of control and specialization. According to Luthens (1986), each

organization structure contains both de-centralization and centralization. The modern

organizational structures show quite a strong propensity to decentralization. While

identifying bureaucracy as the most effective form of organization, and even crucial

for the modern state, Weber, nonetheless saw it’s weakness being impersonal, rigid,

self-perpetuating and empire building, dislocation of objectives, cost of controls, and

concern to improve status (Hicks and Gullet, 1975).

Subsequent to the above faults of the bureaucratic theory, modern theories are thus

preferred. In modern theory, an organization is defined as a structured and designed

process in which individuals interact for objectives (Hicks and gullet, 1975). The

modern approach to the organization is multi-disciplinary as several scientists from

diverse fields have funded to its development stressing on the dynamic nature of

communication and importance of integrating the individual and organizational

interests. The structure of this study evaluates the role of both the County Government

and the contractors in their roles on completions of projects as defined by the study

variables. This theory is significant in assessing the extent to which County

Government has cut the red tape and adjusted the bureaucratic formalize tall structure

into a matrix project structure not only to accommodate the interests of the contractors

but also hasten completion of projects. The theory is important in assessing the

efficiency of County Government in undertaking its contract management duties like

site visits, pre-qualification, supplier relations, stores management and appraisal and

payment of contractors.

18
2.3 Empirical Literature

Empirical literature is organized according to the study objectives as show below;

2.3.1 Completion of Projects

A successful road construction project is measured by timely completion of projects.

The completion of road construction projects in a timely manner is often a critical

factor and measure of project success. In the recent years, there has been a growing

interest in the use of projects as the building blocks in strategic management of

organizations (Weiss & Potts, 2012). The achievement of any road construction

project is highly reliant on its completion time from start to delivery of results. This

has a straight or rather bearing on management decisions for instance budgets, targets

and standards (Seddon, 2008). There is available proof from literature on ways to use

projects for the controlling of organizational process to organize the organization for

its competitive survival and future (Cleland& Ireland, 2007). Today, project

management techniques are basically used as the principal means by which strategic

and operational issues are managed.

Outsourcing leads to effective service delivery. Adoption of outsourcing and

subsequent contract management activities were meant to enable effective service

delivery which refers to producing work that is of high quality and recognized as

efficient (Cole, 2002). The long-term objective of any organization is to produce high

quality road construction projects measured against the traditional measures of time,

cost and scope (Basu, 2014). There are different dimensions of measuring the success

of completed road construction projects. Road construction project success is

measured by time, cost and quality. Cookie and Davies (2002) distinguishes between

19
project management success and project success (measured against the objectives of

the project). He further distinguishes success criteria as the measures against which

success or failure of a project is measured while success factors are the inputs that

lead either directly or indirectly to the success of the project.

Construction works involve high daily expenses that can’t be met by the contractors

when progress payments by the owners are delayed. Hasseb et al., (2011) noted that a

road construction project’s success depends on meeting objectives within time and

budget limits. s a result of this, there are several road construction projects that are

delivered within time and budget but fail to meet the expectations of end users.

Equally, the challenge of timely road construction project delivery can take multiple

dimensions depending on the road construction project’s environment. n hana,

Frimpong et al., (2003) identified five factors as the major causes of delays to road

construction projects. These include monthly payment difficulties to contractors,

material procurement difficulties, poor contract management, poor technical

performance and material price rises.

Delay in road construction project completion time can be can be caused by several

problems. Poor specialized management, rising cost of materials, fluctuation of prices

and poor site management have also been recognized as factors triggering a delay in

road construction project completion time. In order to anticipate the encounter of

timely road construction project delivery, Samuel (2008) endorses that project time

management be an important or rather key priority for the contractors and that the

nomination of a registered project manager for each contract should be a compulsory

condition of qualification, track record, past assignments, endorsement and capacity

20
in the tendering process. Delays in road construction projects can be avoided by use

of effective contract management. The major challenges impeding completion of road

construction projects can be resolved through the use of effective contract

management because they are basically human, materials and logistics trinity.

According to Frimpong et al., (2003) major delay occur during road construction

project implementation stage, therefore factors like poor contractor management,

monthly payment difficulties, poor technical performances material procurement and

escalation of material prices donated during construction of groundwater road

construction projects in developing countries. In most of Kenyans construction

setting, delays. In completion of road construction projects are widespread more so

due to poor reporting structures and prevalent corruption (DFID, 2013). This study

built on these past studies by examining the role of contract management in

completion of construction road construction projects.

2.3.2 Contract Prequalification Process

Contract initiation activities have many activities. Rendon (2010) explained that at pre

– qualification phase, there should be preparation of workforce, clear processes of

engagement, relationships building, resource allocation to road construction projects,

leadership and policies all of which have direct impact on resulting contractors’

performance outcomes. The contract creation activities set up the performance

expectations for the road construction project. According to business dictionary,

Performance is the achievement of a given task measured against the present known

standards of accuracy, completeness, cost, and speed. In contract, performance is

thought to be the contentment of requirement in a manner that releases the performer

from all liabilities under the contract. It refers the conformance of contractor or

21
supplier with contract terms, specifications, service level agreements or Key

Performance Indicators (KPI) and other elements of the commercial agreement (CIPS,

2012). Performance key outcome priority is cost, quality, speed and flexibility

(Ketchen and Hult, 2006). According to BG Group (2014) Contractor performance

management include the following areas: Health Security Safety and Environment

(HSSE); Operations; Quality; Delivery; Payment; Receipt; Expediting and inspection.

Prequalification is defined as the screening of construction contractors by road

construction project owners. Quite interesting are the criteria presented by the

Palaneeswaran and Kumaraswamy (2001). The following groups of criteria have been

suggested: Responsiveness, promptness, realism, completeness, Meeting deadlines,

correctness and valid information, totality in providing information, Responsibility,

obeying the law and complying with local government regulations, standards and

bylaws, quality system, safety system and Competence, resourse (financial,

machinery, plant and equipment, human resources), experience, constraints (current

workload, subcontracts, guarantees).

Prequalification systems seek to decrease construction road construction project

threats. Prichard (2000) offers that prequalification systems allow contractors and

clients to focus on the tendering process than be weighed down by issues of

competence and suitability. Nonetheless, previous research has tended to focus more

on process than people. Prequalification is often viewed in client terms. However, it

would be worthwhile for clients to consider the perspective of other stakeholders.

Holt and Jennings (1998), Mills (2005) and Minchin and Smith (2001) research

moved away from concentrating on client perspectives without acknowledging

22
contractor sentimentality. Criteria can be followed in selection of contractors. Mills

(2005) found that the apparent importance of various selection criteria between

contractor and client diverges greatly. Furthermore, Ng, Skitmore and Smith (1999)

found that several consultants’ perceptions of which selection criteria were significant

differed ominously to each other and the client. As such, industry stakeholders were

shown to think contrarily in respect to the significance of various selection criteria.

This variety of thought should be valued. It also suggests that industry people

originating from different disciplines are possibly biased towards their own

objectives. Broader stakeholder involvement allows for a greater understanding of

prequalification systems and how they affect people.

Prequalification systems affect competition in the marketplace. Li, Foulger, and

Phillips (2008) suggest that prequalification can limit the number of available

tenderers creating reduced competitive behavior from those invited to tender.

Prequalification systems need to appeal to capable contractors particularly in boom

times. Ngai, Drew, Lo and Skitmore (2002) say the two prime factors affecting the

degree of competition are the number of contractors able to tender a road construction

project and market conditions at the time. Larger contractors felt that prequalification

systems with stringent multi-criteria selection decision making improves their chances

of winning contracts. However they did also find that contractors are generally

dissatisfied with prequalification possibly leading to Minchin and Smith (2001)

assertion that there are good contractors who elect not to participate.

23
2.3.3 Contractors’ Payment Practices

A growing number of incomplete road construction projects have led many to pose

many questions as to what is behind the failure in providing such an extremely needed

commodity. One may wonder whether such a failure is in anyway concerned with

architecture, practices and attitudes of the people or is it just a thing to be attached on

socio-economic platform of the society that is cost escalation and unethical practices

by players (Mirema & Mhando, 2005). Road construction projects should be

finalized within estimated budget. Abdullah, Aftab, Azis & Rahman, (2010) examined

that construction cost is one of the most important criteria of success of road

construction projects throughout the maturation of the road construction project and is

of high apprehension to those who take part in the construction industry. In order to

successfully manage construction project, various procurement strategies have been

presented.

Maintaining a steady cost forecast on construction projects had been implemented

until recently an issue of severe concern, both to the client and project contractors.

Amusan, (2010) reported that cost deviation from initial cost plan, had been prevalent

on construction sites. Every year, large companies spend large sums on the research

and development about the most optimal amalgamation of production or the most

favorable function and feature of their products and services. Amin, (2011) examined

that the impact of poor quality on the price of products and organization earnings and

the expanse of cost should be paid for high quality has elevated many important issues

influencing quality control, cost accounting, repairs and maintenance, supply chain,

stores, production management, safety and health, improvement on cost and

education .

24
It is always necessary to define ways and processes in the contract to penalize or

award on the basis of compliance with the agreement. Choy, Chow, Lee and Chan

(2007) state that conflicts regarding payments hinders an organization from practicing

proper contract management. It is significant to devise ways of measuring progress

and set actual acceptance standards. A study by Njie et al. (2005) reviews relevant

literature and recognizes several pricing and payment schemes used in the global

building industry. This research road construction project assumes payment systems

to refer to the method in which construction products and services are priced and paid

for. Standard forms of contracts for building works frequently require the client to

make intermittent payment of the sum agreed with the contractor. It is the principles

behind these contracts with respect to their tender/pricing and payment processes.

Njie et al. (2005) demonstrates the most common standard forms of building contracts

with their related existing payment systems. The original payment systems such as the

incentive contracting, stage payments, trust funds/accounts, direct payment,

mobilization advance payment and the mechanic’s lien can be used with any

contracting system. Ordinary forms for civil engineering projects, notably the FIDIC

and ICE, use the same payment systems as their equivalent JCT contracts.

2.3.4 Contract Change Management Practices

Contract termination can either be at maturation or prematurely. Some of the

premature causes of contract terminations are anticipated in contracts like poor quality

works, health and safety incidents and late completion of works (Nassar & Salim

2013; Mturi 2013; Mkose 2012). On other hand, some members of the CM team

especially the end users, have not been taking ownership of the contract as the result

no control of cost, late invoice payments for service delivered/completed, which

25
causes cost overrun and complains to contractors which could affect the relationship

and contractor’s performance. t has cited that the threat of contract termination

significantly improves the completion of road construction projects (Hassan, 2009).

There is a growing body of knowledge emphasizing the presence of contract

termination clauses in construction for diverse reasons. According to study by

Grimsey and Lewis (2004) contract termination clauses can be defined as the

processes undertaken to maintain the integrity of the contract, and ensure that the

roles and responsibilities contractually demarcated are fully understood and carried

out to the contracted standard. Termination is the process that ensures that process

that safeguards that all involved parties to a contract fully meet their responsibilities,

in order to satisfy the strategic business goals and the operational objectives of the

contract of the customer (Weele and Puil, 2013).

Premature contract termination has gained frequency and traction in the construction

industry and several mitigating measures have been suggested. According to a study

by Bhardwaj (2011), contract terminations can be avoided if both parties to a contract

do not fail to meet their obligations in order to convey the objectives obligatory from

the contract and are allowed to do so by the other party. It also involves building a

good working relationship between company and contractor. It continues throughout

the life of a contract and entails managing proactively to anticipate future needs as

well as reacting to situations that rises. Rendon (2010) observes that the greatest guard

against contract termination by the contractor should be availing of qualified

workforce, clear processes, resources, relationships policies and leadership all of

which have direct impact on resulting contractors’ performance outcomes.

26
Effective change management process has to look into the cost, time and quality

considerations for the road construction project. According to Zhao,Lv,Zuoand

Zilante (2009) contract change management is one of the project management

practice that determine problems when change occurred in a road construction project

or lessen change that may occur and upset the movement of the road construction

project. Also Hwang and Low (2012) outlined the process of change management to

encompass of four indispensable principles to identify changes, to evaluate changes,

to implement changes and to learn from past experiences. In other words a change

management process should seek to anticipate possible change, identify change that is

before now occurred, arrange for preemptive measure and synchronize changes across

the entire project stakeholders, which can be achieve by an integrated solution for

coordinating everything involved for the purpose of the change.

Contractor’s management capability has a positive effect on successful road

construction projects. Aje, Odusami and Ogunsemi (2009) showed that contractors'

management capability has significant impact on cost and time performance of

building projects. Wiguna and Scott (2005) showed the critical risks affecting both

project time and cost perceived by the building contractors were related. They were:

high increased/inflation material price, design change by owner, weather conditions,

defective design, delayed payments on contracts and defective construction work.

Regarding to time delays the most important causative factor for global road

construction projects was late delay in payments while for the stadia road construction

projects design-related factors caused the most delays (Baloyi & Bekker, 2011).

Iyagba (2010) identified the factors that contribute substantial negative effect to road

27
construction project performance, hence affecting the integrity of the construction

industry.

2.3.5 Contractor Supervision Activities

Performance pointers measure and evaluate success against a specific goal. No

contract arrangement can guarantee a problem free in road construction project

execution; it is the quality of the people, management system of the company and

contractor that are the best guarantor of success according to a study by (Bhardwaj,

2011). These need to be continuously monitored and evaluated. Key performance

indicators are used to track and evaluate the Contractor’s performance in conforming

to the contract requirements. The process begins by selecting performance indicators

that are relevant for the procurement environment. This is followed by identifying and

collecting appropriate data for each performance indicator to establish a baseline on

the level of performance (Path, 2012).

range of performance indicators can be developed to monitor a contractors’

performance, and the particular indicators used differ in accordance to the contract

specifications, the level of risk associated with contract failure by the supplier, and the

worth of the procurement (Path, 2002). This has been supported by Miller (2005) who

observes that, just because everything can be measured doesn’t mean that everything

has to be measured. Performance measurement entails the measuring of the right

things for the right people at the right time. t’s about measuring what’s significant to

the business. t’s about the quality of the measures and not the quantity (Miller, 2005).

Building road construction projects are the fundamental factors influencing contractor

performance. Hatami and Behsan (2012) found that contractors are more compliant of

28
risks that are mentioned in contracts than of other types of risk. Contractor

performance is focusing on the characteristics of each road construction project, the

contractor’s degree of participation, and how that influences contractor performance.

Abbasnejad and Moud (2013) found that most road construction projects writhed

from delays, imposing major damage on contractors, and that these damages were

intolerable and deeply influenced the contractor performance, which has been found

to vary among nations for a long time.

2.4 Summary of Literature Review and Gaps

Based on local studies that have been done in Kenya; most of them did not focus on

key performance indicators of construction projects in Kenya. Nyangilo (2012) did a

research on an assessment of the organization structure and leadership effects on

construction projects' performance in Kenya. Lepartobiko (2012) studied the factors

that influence success in large construction projects. Kigari and Wainaina, studied

emerging trends in economics and management sciences time and cost overruns in

power projects in Kenya by closely relating the factors to the various variables. From

these studies there is no a guideline for the contractors who want to correct their

previous mistakes and improve on their current situation. Therefore, this research

focused on key performance indicators of construction projects in Nairobi Central

Business District which shall be used as a benchmarking for the contractors. Kibuchi

and Muchungu (2012) studied the involvement of human factors in the performance

of construction projects in Kenya. Nyangilo (2012) did a research on an assessment of

the organization structure and leadership effects on construction projects' performance

in Kenya. Lepartobiko (2012) studied the factors that influence success in large

construction projects. From these studies that have been done on performance of

construction projects, there is a need for future studies to focus on the following areas:

29
The effects of construction project manager’s skills on projects performance. Find out

between public and private construction projects, which one has got higher

performance level. It is also recommended to develop modelling system and

performance measurement framework in order to measure performance of

construction organizations and projects. In addition, it is recommended to study and

evaluate the most important factors as a case study of construction projects in Nairobi.

30
 2.5 Conceptual Framework

The schematic diagram below represents the diagrammatic representation of the

relationship between the study variable

Independent variables Dependent variable

Contract prequalification
process
 Fairness
 Capacity
 Rules/policies
 Workforce preparation

Contractors’ payment practices

 Schedule of payment
 Mode of payment
 Promptness Completion of road projects
 Payment schemes  Time
 Cost
Contract change management  Quality
practices  Accuracy
 Policies on contract change
 Speed
 Ease of change
 Bureaucracy involved
 Cost overrun

Contractor supervision activities

 Promptness of supervision
 Templates of supervision
 Number/quality of
supervisor
 Contract requirements
 Contract failures

Figure 2.1; Conceptual framework Source: Researcher (2016)

31
 CHAPTER THREE

RESEARCH METHODOGY

3.1 Introduction

The study sought to assess the effects of contract management practices on the

completion of road construction projects by the county government of Machakos,

Kenya. This chapter provides a framework of methodology that be used in the study.

It gives an insight into the research design, target population, sample size, data

collection instruments and procedures, data analysis and presentation.

3.2 Research Design

A research design is a proclamation of the essential elements of a study and

constitutes the blue-print for the collection, measurement and data analysis (Cooper &

Schindler, 2008) hence a logical and systematic plan prepared for directing a research

study (Shajahan, 2005). The study adopted a descriptive survey design. Sekran (2007)

observed that descriptive survey research is projected to produce statistical

information about aspects of a phenomenal being studied by running a questionnaire

to a sample of individuals. The descriptive design was particularly ideal because all

the data on the indicators of contract management practices and completion of road

construction projects was in numerical form suitable for quantitative description. The

likert scale that was utilized provided quantitative data that was analyzed in a

quantitative manner.

Descriptive surveys are designed to obtain information about the current status of a

phenomenon or to answer questions like where, what, how, why, when, and who. The

study used descriptive research which refers to the investigation in which data is

32
collected and analyzed in order to describe the specific phenomena in its current

trends, current events and linkages between different factors at the current time

(Kothari, 2004). Descriptive research design was used because it enables the

researcher to generalize the findings to a larger population. The design not only

enables the description of activities that delay the completion of road construction

projects by the county government of Machakos, Kenya but also describe the exact

phases and processes affected by the process.

3.3 Target Population

A population or universe for a study is any group of persons or institutions which

have one or more characteristics in common that are of interest to the researcher

(Saunders, 2008). The study was conducted in the area administratively delineated as

Machakos County. The study was conducted in the Machakos County because of

rapid urbanization, industrial activities and high population density. This enabled

gathering of comprehensive information needed by the study. The staff of county

government in the management cadre and with knowledge due to their work

experience on the completion of road construction projects forms the focus of this

study. The respondents included the staff of the County government. There are 458

members of staff in the management cadre of Machakos (Human Resources

Department, 2016).

3.4 Sampling Techniques and Sample size

The following sampling techniques and sample size were used;

33
3.4.1 Sampling Techniques

In the selection of respondents to the research instruments, the researcher intends to

use stratified sampling and simple random sampling techniques. Stratified sampling

ensures that all categories of the study case are included in the sample (Kothari,

2004). Stratified sampling was used to ensure that officials from all the departments in

the county government that have a direct impact on completion of road construction

projects are included in the sample. This ensured that some comprehensive data on the

effects of contract management practices on the completion of road construction

projects by the county government of Machakos, Kenya is collected with respondents

equitably represented from all the departments of the County government. Stratified

sampling ensured that members of staff from the projects department, finance

department, monitoring and evaluation department and quality assurance department

of the County government were represented in the sample. After the stratification,

simple random sampling based on the first letter on the names of the officials was

used to ensure objectivity and equal opportunity for participation in the study (Nondu,

2010). Simple random sampling was used to ensure that all the members of staff have

an equal chance of participating in the study.

3.4.2 Sampling Frame and Sample Size

inition also encompasses the purpose of sampling frames, which is to provide a means

for choosing the particular members of the target population that are to be interviewed

in the survey. More than one set of materials may be necessary and this is generally

the case in a multiple survey with a multi-stage nature. Upagade and Shende (2012)

also refers to a sampling frame as a source list containing all names of the universe.

Specifying the sample frame is crucial as it itemizes all items in the population from

which a sample is obtained for analysis so as to test the research hypotheses. The

34
sample for this study was of size 145 respondents. The sample size represents a

threshold of 30% of the population to enable their statistical representation in the

sample as advised by Mugenda & Mugenda (2003).

Table 3.1:Sampling Frame

Designation Sample Size
Project managers 12
Project Engineers 21
Designing engineers 25
Construction engineers 28
Finance officers 18
Operations and Maintenance Officers 13
Compliance officers 15
Procurement officers 10
Store officers 11
TOTAL 137

3.5 Data Collection Procedure

Data was collected using interview schedules and questionnaires which was delivered

to each of the Respondents. The questionnaire were ideal just as they were appraised

by Orodho (2009) who defined a questionnaire as an instrument used to gather data,

which allows a measurement for or against a particular viewpoint. He emphasizes that

a questionnaire has the capability to collect a bulky amount of information in a

reasonably quick space of time. Questionnaires are easy to administer, gives the

respondent sufficient time to arrive at a well thought response and are free from the

researcher’s bias. The drop and pick method was used where the respondent is very

busy or not available. Interview schedules were administered to key staff in

departments such as legal department, compliance departments and procurement

departments to enable the researcher to collect even the detailed and qualitative data

that would be difficult to collect using questionnaires.

35
3.6 Validity of Instruments

Face and content validity were administered on the questionnaires. Kothari (2004)

points out that validity is the degree to which a test measures what it is supposed to

measure. After piloting the questionnaires were edited to ensure that it measures up to

high degree of face and content validity. Additionally, the expert opinions of the

project supervisor further refined the validity of the instrument.

3.7 Reliability of Instruments

Reliability is the level of internal steadiness or stability of the measuring device over

time. According to Orodho (2009) reliability is the ability of a research instrument to

steadily induce the same responses from respondents in a study. The ultimate

initiative in ensuring reliability is to providing simple and clear instructions to the

respondents. A pilot study was carried out to correct any mistakes in the measuring

tool. After the pilot study, the instruments were edited to eliminate inconsistencies,

ambiguities and other grey areas that might hinder the consistency of responses from

the instruments among the many respondents. Cronbach alpha co-efficient was used

to determine the reliability of the research instrument with a co-efficient of 0.8

deemed sufficient.

3.8 Data Analysis Procedure and Presentation

Zikmund (2003), define data analysis the whole process which starts immediately

after data collection and at the point of interpretation of results. It involves coding,

classifying, analyzing as well as editing gathered data to ensure completeness and

accuracy. Quantitative approach to data analysis was employed in data analysis.

Primary data from the questionnaire was coded and entered into the computer for

36
computation of descriptive statistics which was analyzed with the support of

Statistical Package for Social Sciences (SPSS) version 20.

The descriptive analysis yielded tables, charts, mean and standard deviation to

describe the data and enable making of meaning from the data. Additional analysis

was conducted using a multiple linear regression analysis which enabled

establishment of the exact strength of the association among the variables under

study. The model for the multiple regression analysis was as follows;

Y =β0+ β1X1+ β2X2+ β3X3+ β4X4 + ε

Where,

Y = Completion of roads project

X1= Contract prequalification process

X2 = Contractors payment practices

X3 = Contract change management

X4 = Contractor supervision activities

ε = Error term

Since both quantitative and qualitative data were collected and analyzed, quantitative

data was presented using tables, charts, and bar graphs and written discussions. Data

were presented in tables, charts, graphs and any other appropriate presentation

method.

37
3.9 Operationalization of the Variables

Table 3.2; Operational Definition of Variables

Objectives of the Study Variables Indicators Measurement Type of Tools of Analysis
Scales analysis
To determine the role of contractors’ Contract  Fairness Interval Descriptive -Frequency
pre-qualification process on the Prequalification  Capacity Measurement Analysis Distribution
completion of road projects by the Process  Rules/Policies Scale -Means
County Government of Machakos,  Workforce -Standard Deviations
Kenya Preparation
Inferential Regression Analysis
Statistics
To find out the role of contractors’ Contractors’  Schedule of Interval Descriptive -Frequency
payment practices on the completion Payment Payment Measurement Analysis Distribution
of road projects by the County Practices  Mode of Scale -Means
Government of Machakos, Kenya Payment -Standard Deviations
 Promptness
 Payment Inferential Regression Analysis
Schemes Statistics
To assess the influence of contract- Contract Change  Policies on Interval Descriptive -Frequency
change management practices on the Management Contract Measurement Analysis Distribution
completion of road projects by the Practices Management Scale -Means
County Government of Machakos,  Ease of -Standard Deviations
Kenya Change
 Bureaucracy Inferential Regression Analysis
Involved Statistics
 Cost Overrun

38
To determine the effects of Contractors’  Promptness of Interval Descriptive -Frequency
contractors’ supervision activities on Supervision Supervision Measurement Analysis Distribution
the completion of road projects by the Activities  Templates of Scale -Means
County Government of Machakos, supervision -Standard Deviations
Kenya  Number/qualit -Correlation
y of Analysis
supervisors Inferential Regression Analysis
 Contract Statistics
requirements
Completion of  Time Interval Descriptive -Frequency
Road Projects  Cost Measurement Analysis Distribution
 Quality Scale -Means
 Accuracy -Standard Deviations
 Speed
Inferential Regression Analysis
Statistics

39
3.10 Ethical Considerations

For the purpose of this study, approval was sought from Kenyatta University and a

letter granted by the National Council of Science and technology (NACOSTI) to

allow the researcher to carry out the research. The researcher further sought approval

from the management of county government where the officials are concerned to

carry out the study. The researcher explained the purpose of the study to the

respondents and assured them of confidentiality of their responses and identities. The

researcher adhered to appropriate behavior in relation to the right of the respondents

to voluntarily participate in the study. A verbal consent was sought from the

respondents before questionnaires were administered. The findings of the study were

not doctored to meet any preconceived or commercial ends. Materials and citations

from other scholars were duly acknowledged by the researcher.

40
 CHAPTER FOUR

RESEARCH FINDINGS AND ANALYSIS

4.1 Introduction

This chapter examined the research findings and thereafter data analysis. The study

sought to examine contract management practices and completion of road

construction projects by the county government of Machakos, Kenya. In order to

address the general research objective, three research objectives were formulated. The

study’s specific research objectives included examination of the role of contractors’

pre-qualification process, contractors’ payment practices, and contract change

management practices on their influence of completion of road projects by the

County. The research findings were examined using descriptive statistics such as

frequency distribution, means and standard deviation. These results were presented in

pie charts, bar graphs and tables. In order to make conclusions on the relationship

between diverse variables then the inferential statistics were used. The inferential

statistics used in the study is multiple linear regressions.

4.2 Response Rate

The sample size of this study was 137 respondents and therefore 137 questionnaires

were distributed. The questionnaires that were returned were 113 therefore making a

response rate of 82.5%. This response rate was deemed sufficient in the context that

Orodho (2009) indicates that a response rate of over 85% being excellent, 70-85%

very good, 60-70% acceptable and below 50% not acceptable. The high response rate

was achieved due to the fact that the researcher engaged the respondents for the

purposes of reminding them to fill on the questionnaires. The high response rate

41
indicates that the results are sufficient for generalization as they can be considered a

representative of the study population.

4.3 Respondent’s Characteristics

The respondents’ characteristics were examined using gender distribution, age

distribution, and education levels.

4.3.1 Gender Distribution

The gender distribution results were illustrated through figure 4.1 below. The results

indicated that 55.80% of the respondents were male while 44.2% of the respondents

were female. The high number of the male respondents was attributed to the fact that

construction industry is often and generally male denominated. This is due to the

nature of work that makes it more attractive to the male gender. The gender aspect is

critical in the road construction projects completion rates in the sense that levels of

commitment and availability to supervise the road construction projects may vary

across the gender.

Gender
,0 ,0

Female, 44.20%
Male, 55.80% Male
Female

Figure 4.1: Employee Distribution by Gender

Source: Research Data (2016)

42
4.3.2 Length Worked at Machakos

In the context of the length of period worked at Machakos, the results were illustrated

using figure 4.2 below. The results indicated that 52.2%, 38.10%, 5.30% and 4.40%

of the respondents had worked for 0-2 years, 3-5 years, 6-8 years, and more than 8

years respectively. The length of the period worked in their respective institutions is

an indication of their experience levels in their functions and therefore the validity of

their results. The results indicated that slightly less than half of the respondents had

worked for more than 2 years and were therefore highly knowledgeable on the aspects

addressed by the research. It is also worth noting that the county governments have

only been in existence for a fairly short period of less than four years. The length of

time worked at Machakos County is critical for the completion of the road projects in

the county in the context that the persons who have stayed longer in the county are

well familiar with the road network in the county and have also networked with

diverse stakeholders.

60.00%
52.20%
50.00%

40.00% 38.10%

30.00%
Length of Period
20.00% Worked at The
Institution
10.00% 5.30% 4.40%

0.00%
0-2 Years 3-5 Years 6-8 Years More than 8 Years
Figure 4.2: Length of Time Employed

Source: Research Data (2016)

43
4.3.3 Education Level

The educational level was examined using figure 4.5 below. The results indicated that

4.4%, 16.8%, 54.0%, and 24.8% of the respondents had PhD, Masters, Degree and

Diploma level educational levels. The level of education is critical in ensuring that the

respondents have the required technical know-how on the aspects being asked. In this

context it was worth noting that 75.2% of the respondents had degree level education.

Education Level
PhD, 4.40%

Diploma, 24.80% Masters, 16.80%

PhD
Masters
Degree

Degree, 54.00% Diploma

Figure 4.3: Level of Employee Education

Source: Research Data (2016)

4.4 Contractor Management Practices

The contract management levels were examined through use of completion rate of

roads, road supervision rates, engagement of unqualified contractors, delay in paying

contractors, changing of contract documents, and failure to supervise contractors.

44
4.4.1 Completion Rate of Roads

The results for the completion rates of roads were examined through figure 4.4 below.

The results indicated that 58.40% of the respondents agreed that there was delay in

completion of roads at Machakos County while 41.6% of the respondents disagreed.

The road constructions are often faced by diverse challenges that affect their

completion rates including stakeholder management, funds availability, equipment

availability and the general work pace of the contractor.

Road Contractors in Machakos County delay in completion of

roads

,0 ,0

No, 41.60%

Yes, 58.40% Yes

No

Figure 4.4: Completion Rate of Contractors

Source: Research Data (2016)

4.4.2 Road Contractors Supervision

In the context of supervision levels, the respondents were asked on the diverse levels

in which County Government of Machakos undertook supervision levels. In this

context, 9.7%, 8.8%, 43.4%, 18.6%, and 19.5% of the respondents indicated that there

was no supervision, very related supervision, related supervision, close supervision

45
and very close supervision respectively. Supervision of the contractors is a key

element of the work being completed on time as it ensures that the work

developmental milestones are met on time and with the required quality. Therefore,

supervision ensures on the timeliness of the work development as well the quality of

the delivered work.

50.00%
43.40%
45.00%
40.00%
35.00%
30.00%
25.00%
18.60% 19.50%
20.00%
15.00% 9.70% How would you rate how the
8.80% county government of
10.00%
Machakos supervises road
5.00%
contractors?
0.00%

Figure 4.5: County Government Supervision

Source: Research Data (2016)

4.4.3 Contract Management Practices Effect on Road Construction Projects

In the context of the delays in the payment of contractors, 7.1%, 19.5%, 32.7%, and

40.7% of the respondents indicated that county government of Machakos delayed in

payment of contractors to a small extent, average extent, great extent and very great

extent respectively. The delays in the payment of the contractors have an effect of the

completion of the construction projects. This is due to the fact that contractors may go

slow or compromise the quality of work and then arm twist the county government to

pay them. In the context of the changing of contract documents, 17.7%, 38.9%,

46
29.2%, and 14.2% of the respondents indicated that county government of Machakos

changed contracts to a small extent, average extent, great extent and very great extent

respectively. Finally, 20.4%, 52.2%, and 27.4% of the respondents indicated that the

county government of Machakos failed to supervise contractors to no extent, small

extent, and average extent respectively.

Upon the prompt that whether they engaged unqualified contractors, 49.6% responded

they never engaged them, 30.1% agreed they engaged them at small extent, while

20.4% agreed they averagely engaged unqualified contractors. None of the subjects

responded to engaging them to either a great extent or very great extent. On average

most respondents felt that project managers engaged unqualified contractors at a small

extent, with a mean score of 1.7080 and a deviation of .78696. The information in the

table shows a relatively strict adherence to definition of procurement and planning

which by the Principal-Agent results to timely implementation of the contract (Oluka

and Basheka, 2012). 38.9% of the respondents felt that the project managers

considered on average changing contract documents, 17.7% at small extent, 29.2%

great extent and 14.2% at a very great extent.

The means (denoted by µ) and standard deviations (denoted by σX) of indicators of

contract management practices were calculated. The interpretation was undertaken as

follows. The scores of the mean 1<µ<1.5,1.5< µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5

to be interpreted as the respondents on average perceived that there was no extent, small

extent, average extent, great extent and very great extent of influence of the indicator on

road construction projects in relations to the given metric respectively. The standard deviation

(σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be interpreted as responses clustered around

the mean, responses moderately distributed around the mean, and responses widely

47
distributed around the mean implying high consensus, moderate consensus and lack of

consensus on a given metric respectively.

The mean score for engaging unqualified contractors was 1.708, for delay in paying

contractors was 4.070, for changing of contract documents was 3.398, and for failure

to supervise contractors was 2.070. On average, the respondents perceived that delay

in paying contractors had a great extent of influence (3.5<µ<4.5) on road construction

projects. On the other hand, the respondents on average perceived that changing of

contract documents had an average extent of influence (2.5<µ<3.5) on road

construction projects. The respondents’ average perception of the influence of failure

to supervise contractors as well as engaging unqualified contractors on road

construction projects was that to a small extent (1.5< µ<2.5), each indicator had an

influence on the road construction projects.

In the context of distribution of responses around the mean and consensus levels, all

the metrics had moderately distributed responses around the mean. This implies that

there was moderate consensus (0.5<σX<1) on the extent of influence of each indicator

on road construction projects. The respective standard deviations were 0.78696 for

engaging unqualified contractors, 0.94223 for delay in paying contractors, 0.94055 for

changing of contract documents, and 0.69071 for failure to supervise contractors.

48
Table 4.1: Contract Management
Percentages Mean Std.
1 2 3 4 5 Dev.
Engaging unqualified 49.6 30.1 20.4 0 0 1.708 .78696
contractors
Delay in paying 0.0 7.1 19.5 32.7 0 4.070 .94223
contractors
Changing of contract 0.0 17.7 38.9 29.2 0 3.398 .94055
documents
Failure to supervise 20.4 52.2 27.4 0 0 2.070 .69071
contractors
1. No extent 2. Small Extent 3. Average Extent. 4. Great extent 5. Very great
extent
Source: Research Data (2016)

4.5 Contractor Prequalification

The respondents were asked whether they thought the county government issued

contracts fairly based on the merit and qualifications brought forward to them. The

following figure is a graphical representation of the results.

Fairness of Prequalification of the

Contractors

No, 47.80%
52.20% Yes
No

Figure 4.6
Fairness of Prequalification of Contractors
Source: Research Data (2016)

4.5.1 Emphasis of Different Contractor Prequalification Process

Half of the subjects of this study were of the opinion project managers emphasized on

the contractor’s training at 50.6%, while 41.6% thought project managers did so at a

small extent. Only 2.7% of the respondents felt the managers did so on rare occasions

as those who thought the managers did so at very great extent were represented by

49
1.7% of the respondents. 3.5% were of the opinion that training of the contractor was

important to the project manager.

Clearance with government bodies bore significant effect on the procuring entity as

none of the respondents thought it was not important or has very minimal importance.

45.1% of the respondents greatly thought clearance with government entities was

important, 31.9% thought they were important only on average and 23% thought very

crucial to have clearance with government entities. Machinery is also important to the

procurer as none of the respondents disagreed or agreed to a small extent. 38.9% of

the subjects thought capacity of the contractor was either greatly important or very

greatly important to the procurer. Only 22.1% of the respondents felt that capacity of

the contractor was important to an average extent. Table 4.2 is a summary of the

percentages.

The study sought to find out the extent to which respondents on average perceived

various indicators are emphasized in the contractor prequalification process. The

means (denoted by µ) and standard deviations (denoted by σ X) of indicators of

contractor pre-qualification process were calculated. The interpretation was

undertaken as follows. The scores of the mean 1<µ<1.5, 1.5< µ<2.5, 2.5<µ<3.5,

3.5<µ<4.5, and 4.5<µ≤5 to be interpreted as the respondents on average perceived

that there was no extent, small extent, average extent, great extent and very great

extent of emphasis on the indicator in the contractor prequalification process of road

construction projects respectively.

The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be interpreted

as responses clustered around the mean, responses moderately distributed around the

50
mean, and responses widely distributed around the mean implying high consensus,

moderate consensus and lack of consensus on a given metric respectively.

On average, the respondents’ perception was that a great extent of emphasis

(3.5<µ<4.5) is put on the capacity of the contractor (machinery owned) in the

contractor prequalification process of road construction projects (mean score=3.684).

The mean scores for training of the contractor, experience of the contractor, past

performance of the contractor, clearance with other government bodies (KRA, HELB,

PPOA) were 3.051, 3.384, 3.347 and 3.461 respectively. These mean scores were in

the range 2.5<µ<3.5, which implied that on average, the respondents’ perception was

that an average extent of emphasis is placed on training of the contractor, experience

of the contractor, past performance of the contractor, and clearance with other

government bodies (KRA, HELB, PPOA) in the contractor prequalification process of

road construction projects.

The standard deviations for all the metrics on contractor prequalification were

moderately distributed around the mean implying moderate consensus (0<σX<0.5) on

the extent of emphasis placed on each indicator in the contractor prequalification

process of road construction projects. Therefore, there was moderate consensus

amongst respondents on the extent of emphasis placed on training of the contractor

(σX=0.956), experience of the contractor (σX=0.874), and past performance of the

contractor (σX=0.851) in the contractor prequalification process of road construction

projects. Similarly, there was moderate consensus on the extent of emphasis placed on

clearance with other government bodies like KRA, HELB, and PPOA which had a

51
standard deviation of 0.615, as well as capacity of the contractor (machinery owned)

which has a standard deviation of 0.518.

Table 4.2: Contractor Prequalification

Percentages Mean Std.Dev
1 2 3 4 5
Training of the contractor 2.7 41.6 50.6 3.5 1.7
3.051 0.956
Experience of the contractor 0.0 11.5 23.9 34.5 30.1
3.384 0.874
Past performance of the 0.0 14.2 21.2 37.2 27.4
3.347 0.851
contractor
Clearance with other 0.0 0.0 31.9 45.1 23.0 3.461 0.615
government bodies ( KRA,
HELB, PPOA)
Capacity of the contractor 0.0 0.0 22.1 38.9 38.9 3.684 0.518
(machinery owned )
1. No extent 2. Small extent 3. Average extent 4. reat extent 5. “Very great
extent”
Source: Research Data (2016)

4.6 Contractor Payment Methods

Delayed payments are the money amount not delivered to the contractors in the pre-

agreed upon time between the procurer and the contractor.

Bureaucracy in the
government,
28.30%
Lack of Cash,
31.90%
Lack of Cash
Delay in inspecting roads
Delay in inspecting
roads, 39.80% Bureaucracy in the government

Figure 4.7: Reasons for Delay

Source: Research Data (2016)

52
From the pie-chart in figure 4.7, the biggest contributing factor is delays in inspecting

the completed projects at 39.8% followed by unavailability of funds 31.9% and too

much bureaucratic procedures in availing money to the contractors.

4.6.1 Factors Affecting Payments to Contractors

Factors affecting payments in the county governments include all issues that arise in

the processes of compensating contractors. This issues include payment in time,

payment in full or as per the agreed upon installments corruption complaints among

other factors. The following table represents some of the factors and response

percentages of subjects contacted. 38.9% of the respondents agreed at a ”great extent”

the delays in release of moneys by the central government hindered payments, while

24.8% agreed to an average extent. None of the respondents disagreed while 17.7% of

the respondents agreed to a “small extent” and 18.6% agreed to a “very great extent”.

Respondents on average tended to report to a “great extent” that release of monies by

the central government hinders payments with a score of 3.5841 and deviation of

.98856. The cycle of releasing monies by the central government falls under

organizational bureaucracy and laid down procedures of doing what is needed by the

government procuring officials.

While it would be expected that bribery by county officials would get great response

from the respondents those who agreed to a “very great extent” were only 4.4%

almost four times as smaller as those who completely disagreed at 16.8%. Most

respondents were of the opinion that the central government’s budgetary cycle created

a bottle neck in the payment processes as 41.6% of them agreed to a “very great

extent”” and 30.1% agreed to a “great extent”.

53
The study sought to find out the extent to which respondents on average perceived

factors affect payment to contractors. The means (denoted by µ) and standard

deviations (denoted by σX) of indicators of affecting payment were calculated. The

interpretation was undertaken as follows. The scores of the mean 1<µ<1.5, 1.5<

µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5 to be interpreted as the respondents on

average perceived that the indicators affected payment to contractors to no extent,

small extent, average extent, great extent and very great extent in road construction

projects respectively. The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and

σX≥1 to be interpreted as responses clustered around the mean, responses moderately

distributed around the mean, and responses widely distributed around the mean

implying high consensus, moderate consensus and lack of consensus on a given

metric respectively.

The average opinion on demand for bribes by county government officials as a source

of delayed or poor payment practices was 2.7788 with a deviation from the mean of

1.0668. The score falls in the bounds of “average extent” with there being no

consensus on the metric. The average perception of the respondents was that to a great

extent (3.5<µ<4.5), release of monies by the central government, bureaucracy in the

finance department, the government budgetary circle, disagreements over contractual

obligations affected payment to contractors in road construction projects. The mean

scores for the individual metrics were 3.5841 for release of monies by the central

government, 3.6991 for bureaucracy in the finance department, 4.0354 for the

government budgetary circle, and 3.8319 for disagreements over contractual

obligations.

54
While no response was recorded for “No Extent” in the questionnaire prompt of

whether disagreements over contractual obligations, the average opinion on the matter

was “great extent” marked by a mean of 3.8319 and deviation of 0.9811. Going by

expectations of this study, conflicts in the payments of contactors draws a significant

amount of study. Bottle necks in the government budgetary allocations and too much

bureaucracy are some of the issues that rock payments of contractors (Nguyen, 2013).

The responses for bureaucracy in the finance department (σX=1.328) and the

government budgetary circle (σX=1.008) were widely distributed around the mean

which implied that there was no consensus (σX≥1) amongst respondents on the extent

of effect of each metric on the payment to contractors in road construction projects.

On the other hand, responses for release of monies by the government (σX=0.9885),

and disagreements over contractual obligations (σX=1.9811) were moderately

distributed around the mean. This implied that there was moderate consensus

(0<σX<0.5) on the extent of effect of both metrics on the payment to contractors in

road construction projects.

The respondents on average perceived that the demand for bribes by county

government officials to an average extent affected payment to contractors in road

construction projects. This is beacause the metric had a mean score of 2.7788 which

was in the range 2.5<µ<3.5. The responses on the demand for bribes by county

government officials were widely distributed around the mean (σX=1.066) which

implied there was no consensus amongst respondents on the extent of effect that this

metric had on payment to contractors in road construction projects. Bribery is one of

the biggest stumbling blocks to development in developing countries which is not

only seen in the government contracts but also in the almost every arm of the

government. While it is expected that demand for bribes would affect allocation to a

55
great extent, even a moderate extent is not good enough in ensuring contracts are

carried to term.

Table 4.3: Factors Affecting Payment to Contractors

Percentages Mean Std.
Dev.
1 2 3 4 5
Release of monies by the 0.0 17.7 24.8 38.9 18.6 3.5841 .9885
central government
Bureaucracy in the finance 8.0 14.2 16.8 22.1 38.9 3.6991 1.328
department
Demand for bribes by 16.8 19.5 32.7 26.6 4.4 2.7788 1.066
county government
officials
The government budgetary 0.9 8.0 19.5 30.1 41.6 4.0354 1.008
circle
Disagreements over 0.0 11.5 23.0 36.3 29.2 3.8319 .9811
contractual obligations
1. No extent 2. Small extent 3. Average extent. 4. Great extent 5. “Very great
extent”
Source: Research Data (2016)

4.6.2 Contractors’ Behavior over Non-Payment

This subsection of this paper gives the actions taken by the contractors when their

payments are either delayed, completely not paid or other complaints by the

contractors. From the Table 4.4, most contractors (38.9%) “Never” pursue legal

options when procurers fail to pay them, sharply contrasting the .9% of the

respondents who “ lways” use legal means to get their pay. Most respondents on

average felt that contractors “usually” pursued litigation over non-payment issues

with an average score of 3.3805 out of 5 and a deviation from the mean of 1.0633.

Most respondents reported that contractors “Regularly” complain over delayed

payments at 40.7%, while those who “Never” or “Rarely” complain were represented

by 2.7%. The respondents also reported that those who “always” complained over

delayed payments were at 24.8%, 4.4% higher than those who “Usually” complain.

56
The study sought to find out how frequently the respondents perceived litigation by

contractors over non payment, complains by contractors over delayed payment, and

complaints by contractors over the amount to be paid occurred. The means (denoted

by µ) and standard deviations (denoted by σX) of indicators of contract payment

systems were calculated. The interpretation was undertaken as follows. The scores of

the mean 1<µ<1.5, 1.5< µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5 to be interpreted

as the respondents on average perceived the indicators never, rarely, usually,

regularly, always occurred over no payment in the road construction projects

respectively. The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be

interpreted as responses clustered around the mean, responses moderately distributed

around the mean, and responses widely distributed around the mean implying high

consensus, moderate consensus and lack of consensus on a given metric respectively.

The average feeling about contractors complaining over delayed payments was that

they did so “regularly” as indicated by a mean score of 3.823 and a deviation of

0.92804. Similarly, the respondents on average felt that complaints by contractors

over the amount to be paid occurred regularly as indicated by a mean score of 3.8319

which was in the range (3.5<µ<4.5). The responses for complains by contractors over

delayed payment and complaints by contractors over the amount to be paid were

moderately distributed around the mean with standard deviations of 0.92804 and

0.95340 respectively. This implied that there was moderate consensus (0<σX<0.5) that

complains by contractors over delayed payment and over the amount to be paid

occurred regularly in the road construction projects. The respondents on average felt

that litigation by contractors over non payment usually occurred (2.5<µ<3.5) in the

road construction projects as it had a mean score of 3.3805. However, there was no

57
consensus (0<σX<0.5) amongst respondents that litigation by contractors over non

payment usually occurred in the road construction projects (σX=1.0633).

Table 4.4: Contractor Behaviour over Non-payment

Percentages Mean Std. Dev.

1 2 3 4 5
Litigation by contractors 38.9 27.4 18.6 14.2 0.9 3.3805 1.0633
over non payment
Complains by contractors 2.7 2.7 29.2 40.7 24.8 3.8230 .92804
over delayed payment
Complaints by contractors 0.0 11.5 20.4 41.6 26.5 3.8319 .95340
over the amount to be paid
1. Never 2. Rarely 3. Usually 4. Regularly 5. Always

Source: Research Data (2016)

4.7 Contract Change Management Practices

In the realm of project management, changing contactors is not an unusual affair.

However, the frequency of changing contractors is what draws the most attention. The

following is a graphical representation of the trends in changing contractors as

reported by the respondents.

4.7.1 Changes in the Contracts

Most respondents felt that contracts were changed “Regularly” at 36.3%. Those who

felt that the contracts were changed “usually” were represented by 26.5%, “Rarely”

and always both at 18.6%.

58
 Changes in the Contracts
Always, 18.60% Rarely, 18.60%

Rarely
Usually, Usually
Regularly, 26.50%
36.30% Regularly
Always

Figure 4.8: Contract Change Management Practices

Source: Research Data (2017)

4.7.2 Contract Change Process

In the below table the main variables in the processes of changing contracts were

posed to the respondents. 36.3% of the respondents were of the opinion that adequate

provisions in contract document for change are used at both “great extent” and “very

great extent”. 19.5% of the subjects responded at “average extent”, 6.2% at “small

extent” and 1.8% at “no extent” as summarized in the table below. Generally,

respondents agreed to an average extent that adequate provisions in contract

documents for change were included at an average score of 3.9912 and a mean of

.98648. Ketchen, & Hult (2006) noted that

termination of contracts and due to incompetence of the contractors or inflated prices

of goods, very little has been documented on the causes contract change when the

client is a government. The reasons highlighted here therefore add to the existing

literature of the factors that influence contract termination at local government levels.

The below table summarizes this information.

59
The study sought to find out the extent to which respondents on average perceived

due diligence is conducted to ascertain the authenticity of change, the government and

contractor agree on the cost of change, and there are adequate provisions in contract

document for change done during the contract change process. The means (denoted

by µ) and standard deviations (denoted by σX) of indicators of contract change

process were calculated. The interpretation was undertaken as follows. The scores of

the mean 1<µ<1.5, 1.5< µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5 to be interpreted

as the respondents on average perceived that to no extent, small extent, average

extent, great extent and very great extent is the respective metric done during the

contract change process in road construction projects.

The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be interpreted

as responses clustered around the mean, responses moderately distributed around the

mean, and responses widely distributed around the mean implying high consensus,

moderate consensus and lack of consensus on a given metric respectively.

All the indicators on the contract change process in road construction projects had

mean scores in the range of 3.5<µ<4.5. This implied that on average the respondents

felt that to a great extent, due diligence is conducted to ascertain the authenticity of

change (µ=3.7611), the government and contractor agree on the cost of change

(µ=3.6726), and there are adequate provisions in contract document for change

(µ=3.9912).

There was moderate distribution of responses in regards to there being adequate

provisions in contract document for change as the standard deviation was 0.9864. This

60
implied that there was moderate consensus (0.5<σX<1) amongst respondents that to a

great extent there are adequate provisions in contract document for change during the

contract change process of road construction projects.

Table 4.5: Contract Change Management Practices

Percentages Mean Std.
Dev.
1 2 3 4 5
Due diligence is conducted to 0.0 16.8 16.8 39.8 26.5 3.7611 1.028
ascertain the authenticity of
change
The government and contractor 0.0 15.9 24.8 35.4 23.9 3.6726 1.012
agree on the
cost of change
There are adequate provisions 1.8 6.2 19.5 36.3 36.3 3.9912 .9864
in contract
document for change
1. No Extent 2. Small Extent 3. Average Extent. 4. Great extent 5. Very great

extent

Source: Research Data (2016)

On the other hand, the responses for due diligence is conducted to ascertain the

authenticity of change (σX=1.028) and the government and contractor agree on the

cost of change (σX=1.012) were widely distributed around the mean. This implied that

there was no consensus (σX≥1) whether due diligence is conducted to ascertain the

authenticity of change and the government and contractor agree on the cost of change

during the contract change process of road construction projects.

4.7.3 Effect of Contract Changes on Road Projects

The following are the potential responses to effects of contract change in cost of roads

projects and the corresponding responses. 0.0% of the respondents felt that contract

changes had no effect on cost of roads projects as compared to 52.2% who thought that

contract changes “Regularly” changes the cost of roads projects. 23.9% of the respondents

61
chose to say that contract changes “always” bring about changes in cost of roads projects,

8% chose “rarely” while 15.95 felt that contract changes “usually” altered the cost of road

construction. On average, respondents felt that contract changes “Regularly” caused a

change in cost of roads projects at a mean Likert score of 3.9204 with a standard deviation

of .84665. The degree of pinch in terms of cost, time for completion, quality of work done

and complete termination of contractor due to change in contract management is well

documented. Aje, Odusami and Ogunsemi (2009), strengthen the evidence that change in

contract management definitely affects the time taken to complete the project as well as

increase the cost of the entire project in the long run.

An equal percentage of respondents were of the opinion that contract changes altered

completion time of road projects “ lways’ and “Never” respectively at 8%. Most

respondents believed that contract changes “always” altered the quality of roads

projects at 38.1%, while 29.2% believed the changes “Regularly” changed the quality

of roads projects.. 25.7% of the respondents thought that the changes in contract

“usually” changed quality of roads.

The study sought to find out how frequently the respondents perceived change in cost

of roads project, change in completion time of roads projects, change in quality of

road projects, and termination of contractors work occurred during contract change

process of road construction projects. The means (denoted by µ) and standard

deviations (denoted by σX) of indicators of contract change process were calculated.

The interpretation was undertaken as follows. The scores of the mean 1<µ<1.5, 1.5<

µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5 to be interpreted as the respondents on

average perceived the indicators never, rarely, usually, regularly, always occurred

during contract change process in the road construction projects respectively.

62
The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be interpreted

as responses clustered around the mean, responses moderately distributed around the

mean, and responses widely distributed around the mean implying high consensus,

moderate consensus and lack of consensus on a given metric respectively.

On average, the respondents tended to think that change in cost of roads project

(µ=3.9204), change in quality of road projects (µ=3.9823), and termination of

contractors work (µ=3.7522), regularly occur during contract change process in road

construction projects. This is because their mean scores were in the range of

3.5<µ<4.5. There was moderate consensus (0<σX<0.5) amongst respondents that

change in cost of roads project (σX= 0.84665), change in quality of road projects (σX=

0.96346), and termination of contractors work (σX= 0.92129), regularly occur during

contract change process in road construction projects. This is because the responses

on these metrics were moderately distributed around their respective means.

On the other hand, there was no consensus (σX≥1) on the average perception of

respondents that change in completion time of roads projects usually occurs

(2.5<µ<3.5) during contract change process in road construction projects. This is due

to the high standard deviation of 1.1361 which meant responses were widely

distributed around the mean for this metric as well as a mean score of 2.9381.

63
Table 4.6: Contract Change on Road Projects
Percentages Mean Std. Dev.
1 2 3 4 5
Change in cost of 0.0 8.0 15.9 52.2 23.9 3.9204 .84665
roads project
Change in completion 8.0 35.4 19.5 29.2 8.0 2.9381 1.1361
time of roads projects
Change in quality of 0.0 7.1 25.7 29.2 38.1 3.9823 .96346
road projects
Termination of 0.0 12.4 20.4 46.9 20.4 3.7522 .92129
contractors work
1. Never 2. Rarely 3. Usually 4. Regularly 5. Always
Source: Research Data (2016)
4.7.4 Engineers Supervision of Contracts

More respondents felt that the county governments did not have enough engineers to

supervise contractors as compared to those were for the opinion that county

government had enough engineers for supervision.

Sufficiency of County Government

Engineers to supervise Contractors
,0 ,0

Yes, 35.40%
No
No, 64.60%
Yes

Figure 4.9: County Supervision of Contractors

Source: Research Data (2016)

4.7.5 Factors Affect Supervision of Contractors

The number who felt that corruption “Never” (8.8%) affected supervision of

contractors was double that which felt corruption “always” (4.4%) affected

supervision of contractors. Those who were of the opinion that corruption “usually”

affected supervision of the contractors was 7% less than the number of people who

64
felt that corruption “rarely” (21.2%) affected supervision of contractors. 36.3% of the

respondents felt that corruption “regularly” hindered contractor supervision.

dditionally, corruption was on average rated as a “usual” bottle neck to supervision

of contractors with a likert scale of 2.9823 and deviation of 1.093.

None of the respondents felt that lack of enabling structures for supervision “never”

affects supervision, while 10.6% thinks that lack of enabling structures “Rarely”

affect supervision. Finally, 37.2% of the respondents were of the opinion that lack of

enabling structures for supervision “always” affected supervision. Lack of policies

and lack of enabling structures for supervision were both on average voted as “

regular” stumbling blocks to affecting supervision with averages of 3.735 and 3.9735

respectively with deviations of .96379 and .99517 respectively.

The study sought to find out how frequently the respondents perceived a lack of

resources to monitor contractors, corruption, lack of policies on contractor supervision

and lack of other enabling structures for supervision affect supervision of contractor

in road construction projects. The means (denoted by µ) and standard deviations

(denoted by σX) of indicators of contract change process were calculated. The mean

scores 1<µ<1.5, 1.5< µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and 4.5<µ≤5 were to be

interpreted as the respondents on average perceived the indicators never, rarely,

usually, regularly, always affect supervision of contractor in the road construction

projects respectively. The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and

σX≥1 to be interpreted as responses clustered around the mean, responses moderately

distributed around the mean, and responses widely distributed around the mean

65
implying high consensus, moderate consensus and lack of consensus on a given

metric respectively.

On average, the respondents felt that lack of resources to monitor contractors

(µ=3.6283), lack of policies on contractor supervision (µ=3.7345), and lack of other

enabling structures for supervision (µ=3.9735), regularly affect supervision of

contractor in road construction projects. This is beacase their mean scores were

between 3.5 and 4.5. Additionally, in repect to the three metrics, there was moderate

consensus on their effect on (µ=3.6283) This is because the responses for the three

metrics were moderately distributed aroound the mean as their standard deviations

were 0.98375 for lack of resources to monitor contractors, 0.96379 for lack of policies

on contractor supervision and 0.99517 for lack of other enabling structures for

supervision which were in the range 0<σX<0.5.

On the other hand, the respondents on average felt that corruption usually (2.5<µ<3.5)

affects supervision of contractor in road construction projects as the mean score was

2.9823. Responses for corruption were widely distributed around the mean which

implied ther was no consensus (σX≥1) that corruption usually affects supervision of

contractor in road construction projects as the standard deviation was 1.0936.

66
Table 4.7: Supervision of contracts
Percentages Mean Std. Dev.

1 2 3 4 5
Lack of resources to 3.5 9.7 23.0 47.8 15.9 3.6283 .98375
monitor contractors
Corruption 8.8 29.2 21.2 36.3 4.4 2.9823 1.0936
Lack of policies on 1.8 11.5 17.7 49.6 19.5 3.7345 .96379
contractor supervision
Lack of other enabling 0.0 10.6 18.6 33.6 37.2 3.9735 .99517
structures for
supervision
1. Never 2. Rarely 3. Usually 4. Regularly 5. Always

Source: Research Data (2016)

4.8 Road Projects Completion

In comparison to The Central Government, the county government of Machakos was

rated higher in the time it took to complete road construction projects as is discussed

below.

4.8.1 Comparative Rates of Road Completion by County Government

The county government was rated as better placed to complete roads constructions as

opposed to the central government with 51.3% and 48.7% respectively. The

information is represented graphically by the following pie chart.

,
Completion Rates0of Road Projects
by County Government
,0 Compared
to Central Government
No, 48.70%
Yes, 51.30%
Yes
No

Figure 4.10: Rate of Completion

Source: Research Data (2016)

67
4.8.2 Roads Performance Metrics in County Government

15.9% of the respondents felt that the priority of roads built affected performance to a

“very great extent”, 5.3% felt it was to no extent, 23.7% felt it was to a “small extent”,

35.4% were of the opinion it was to a “great extent” and 19.5% thought it was to an

“average extent”. The general reaction of those interviewed when asked whether

priority of the roads built contributed to performance was that it actually contributed

to an average extent with a likert mean score of 3.3274 and deviation of 1.1606. Of

those who responded, 29.2% believed that cost of construction affected performance

of roads both to a “great extent” and to a “very great extent”, 15.9% thought cost of

construction and inputted “small extent” and 24.8% inputted “average extent”. Only

.9% of the respondents thought cost of construction had no extent on the performance

of the roads.

The study sought to find out the extent to which priority of roads built, time taken to

complete roads, cost of constructing road, and quality of roads constructed has

changed under the county government. The means (denoted by µ) and standard

deviations (denoted by σX) of indicators of has changed under the county government

calculated. The mean scores 1<µ<1.5,1.5< µ<2.5, 2.5<µ<3.5, 3.5<µ<4.5, and

4.5<µ≤5 were interpreted as the respondents on average perceived that there was no

extent, small extent, average extent, great extent and very great extent of change of a

given metric under the county government road construction projects respectively.

The standard deviation (σX) scores; 0<σX<0.5, 0.5<σX<1, and σX≥1 to be interpreted

as responses clustered around the mean, responses moderately distributed around the

mean, and responses widely distributed around the mean implying high consensus,

moderate consensus and lack of consensus on a given metric respectively.

68
The respondents on average perceived to a great extent (3.5<µ<4.5) cost of

constructing roads (µ=3.6991), and quality of roads constructed (µ=3.9292) have

changed under the county government. There was however different levels of

consensus amongst respondent on both metrics. There was no consensus amongst

respondents on the extent of change in cost of constructing roads (σX =1.0846), but

there was moderate consensus amongst respondents on the extent of change in quality

of roads constructed (σX =0.9610).

On the other hand, the respondents on average perceived to an average extent

(2.5<µ<3.5) the priority of roads built (µ=3.3274) and time taken to complete roads

(µ=3.4602) have changed under the county government. However, the responses on

the priority of roads built under the county government were widely distributed

around the mean which implied there was no consensus (σX≥1) amongst the

respondents on the extent of change (σX=1.1606). The responses on the time taken to

complete roads under the county government were moderately distributed around the

mean which implied there was no consensus (0.5<σX<1) amongst the respondents on

the extent of change (σX=0.9639).

Table 4.8 : Road Performance Metrics

Percentages Mean Std.
Dev.
1 2 3 4 5
Priority of roads built 5.3 23.9 19.5 35.4 15.9 3.3274 1.1606
Time taken to complete 0.0 20.4 26.5 39.8 13.3 3.4602 0.9639
roads
Cost of constructing 0.9 15.9 24.8 29.2 29.2 3.6991 1.0846
roads
Quality of roads 0.0 8.8 23.0 34.5 33.6 3.9292 0.9610
constructed
Source: Research Data (2016)

69
4.9 Regression Model

The regression model was utilized for the purposes of examining the influence of the

four independent variables on the dependent variable. The multiple linear regression

coefficient of 0.842 indicated that there was a positive correlation between the four

independent variables and the dependent variable.The adjusted R Square Statistic was

0.696. Thus, 69.6% of the total variation in the values of Completion of Road Projects

is explained by the combination of the independent variables Supervision,

Prequalification, Contractors’ Payment Practices, Contract-change and Management

Practices. The rest is due to chance or factors beyond this model. 62.9% value of

adjusted R square shows a good fit.

Table 4.9: Model Summary

Model R R Square Adjusted R Square Std. Error of the
Estimate
a
1 .842 .709 .696 .47782
a. Predictors: (Constant), Supervision, Prequalification, Contractors’ Payment Practices
, Contract-change Management Practices
Source: Research Data (2016)

The ANOVA statistics were used to determine on whether the regression was a good

fit for data. In this case since p value is 0.000 which is less than 0.05 then the

regression was found to be good fit for data.

Table 4.10: ANOVA

Source Degrees of Sum of Mean Sum F p-value
Freedom Squares of Squares
Regression 4 44.31 11.08 48.518 0.000
Error 108 24.66 0.228
Total 112 68.91
Source: Research Data (2016)
The regression model coefficients were derived from Table 4.11 to construct the

following regression model;

Completion of Roads=-0.267+0.289x1 + 0.986x2 + 0.0326x3 + 0.050 x4

70
Where X1 is the contractor’s prequalification, X2 is the contractors’ payment practices

(CPP), X3 is the Contract Management Practice (CMP) and X4 is supervision .While

holding CPP, CMP and supervision constant, prequalification of the contractor is

likely to cause a .289 unit increase in Completion of roads for every unit increase in

contractors prequalification. The prequalification of the contractor is a critical

component in ensuring that the contractors with the right qualifications are sourced.

These contractors should have the right qualifications and technical expertise as well

as financial capabilities to carry out the scope of work.

While holding Prequalification, supervision and CMP constant, a unit increase in CPP

is bound to cause 0.986 increase in completion of roads. The Contractor Payment

Practices was seen to give a positive influence on the completion of the road projects

since the payment practices influences the quality of roads undertaken. The

contractors who have not been paid their dues are likely to abandon work half way for

nonpayment of services.

While holding Prequalification, supervision and CPP constant, a unit increases in

CMP is bound to cause an average increase in completion of roads of 0.0326. The

Contract Management Practices are critical in ensuring that the contract is executed as

per scope of work in regards to timelines and quality of work. This aspects influence

the road projects completion rates.

Finally, a unit increase in supervision would lead to a 0.050 increase in completion of

roads with the other independent variables kept constant. Supervision is key in the

execution of the projects in the sense that it ensures that road contract scope of work

progresses as planned.

71
Table 4.11: Linear Relationship Coefficients
B Std. Error t p-value
(Constant) -.267 .401 -.665 .508
Prequalification .289 .117 2.47 .016
Contractors’ Payment Practices .986 .122 8.057 .000
Contract-change Management Practices .0326 .140 .325 .0305
Supervision .050 .132 .379 .705
Source: Research Data (2016)

While each of the individual independent variables had a statistically significant linear

relationship with the response, some of them failed to pass the significance test in the

multiple-linear regression model. The p-value for prequalification was .016 which

was below the .05 level rendering Prequalification to be having a linear relationship

with the response. Contractors’ Payment practices had a proven linear relationship

with the response in the multiple-linear regression model at a p-value of 0.000.

Contract-change Management practices and Supervision had p-values of .0305 and

.705 respectively with the latter exceeding 0.05 level. Contract Change Management

Practices was a sufficient predictor of Completion of Roads in Machakos County

roads. This implies that contract change management practices had a significant effect

on completion of road projects in Machakos County roads. On the other hand,

supervision was not seen to have significant influence on road completion of projects

due to a p value greater than 0.05.

72
 CHAPTER FIVE

SUMMARY, CONCLUSIONS AND RECOMMEDATIONS

5.1 Introduction

This chapter examines the summary, conclusions and recommendations of the study

based on the specific research objectives.

5.2 Summary

The aim of this study was to establish whether certain selected independent variables

had a significant impact on completion of road constructions a case of Machakos

County Tarmacked roads. Analysis of the dependent and independent variables was

done and the results interpreted that three independent variables (Prequalification,

Contractors’ Payment Practices and, Contract-change Management Practices) had

statistically significant effect on the response.

5.2.1 Contractors’ Pre-Qualification Process on the Completion of Road

Projects

In the context of the contractors prequalification process influence on completion of

road projects, the experience of the contractor was a significant component. None of

the respondents thought that the experience of the contractor was not useful. The

aspects of past performance of the contractors were significant in completion of road

projects as indicated by a majority of the respondents. Clearance with government

bodies bore significant effect on the procuring entity as none of the respondents

thought it was not important or has very minimal importance. The use of machinery

was also a significant component to the completion of road projects.

73
5.2.2 Contractors’ Payment Practices on the Completion of Road Projects

The study examined the contractors’ payment practices on completion of road

projects. Amongst the aspects that were found contributing to delays in payments

factors include delays in inspecting the completed projects followed by unavailability

of funds and too much bureaucratic procedures in availing money to the contractors.

The bureaucracy in the finance department as a stumbling block in payments and

demand for bribes by county government officials as a source of delayed or poor

payment practices was found to affect the road completion to an average extent.

Bribery is one of the biggest stumbling blocks to development in developing countries

which is not only seen in the government contracts but also in the almost every arm of

the government. While it is expected that demand for bribes would affect allocation to

a great extent, even a moderate extent is not good enough in ensuring contracts are

carried to term. Bottle necks in the government budgetary allocations and too much

bureaucracy are some of the issues that rock payments of contractors.

5.2.3 Contract-Change Management Practices on the Completion of Road

Projects

The influence of the contract change management practices was examined. The

respondents felt that the contracts were changed in an infrequent manner. On average,

subjects felt at a “great extent” that due diligence is conducted to ascertain the

authority of change. On average, respondents felt that contract changes “Regularly”

caused a change in cost of roads projects. The degree of pinch in terms of cost, time

for completion, quality of work done and complete termination of contractor due to

change in contract management is well documented.

74
5.2.4 Contractors’ Supervision Activities on the Completion of Road Projects

More respondents felt that the county governments did not have enough engineers to

supervise contractors as compared to those were for the opinion that county

government had enough engineers for supervision. On average respondents tended to

conclude that lack of resources to monitor contractors “regularly” affected

supervision.. While Miller (2005) appears to critically define what should be

measured and its overall impact on the project, the evidence presented in these results

clearly show that there is need for resource allocation for monitoring contractors.

dditionally, corruption was on average rated as a “usual” bottle neck to supervision

of contractors.

5.3 Conclusions

The conclusions of the study were examined per research objective.

In relations to completion of road projects, the study found that 45.3% of the

completion of road projects could be attributed to contractor prequalification. The

study also found that there was statistically significant relationship between

contractors’ prequalification process and the completion of road projects. From the

regression model, while holding all the other variables constant, prequalification has a

positive correlation with the response. Thus from our study contractor’s qualification

details have improve the chances of road completion

n the context of the contractors’ payment practices on completion of road projects,

the study found that 64.1% of the variation in values of Completion of Road Projects

is explained by variation in values of the independent variable Contractor Payment

75
Practices. The study also found that contractors’ payment practices are statistically

significant to the completion of road projects. The simple linear regression model

indicated that 33.8% of the variance in completion of road projects was attributed to

contract change management practices

In respect to contract change management practices, the study found that there was a

statistically significant relationship between Contract-Change Management Practices

on the Completion of Road Projects. This was because the p value for regression

analysis was below 0.05 as the hypothesis was being tested at 5% level of

significance.

Contractors’ supervision activities were found not be significant predictor of road

completion rates as the study they had p values greater than 0.05. The study therefore

concluded that the supervision on its own was not sufficient to influence on its own

on the completion of road projects.

5.4 Recommendations

The following are the recommendations as derived from the findings of this study.

This study found out that contactor prequalification is an important aspect in

predicting road completion. As was one of the significances of this study, the county

government ought to emphasize on contractor prequalification documentation.

Payment practices were found to have a strong linear correlation with completion of

road project outcomes. This implies that if contractor services are not compensated

within the pre-agreed time then road completion outcomes are bound to suffer. With

76
that in mind, it is important that the county officials ensure timely and competitive

payment packages that are also less bureaucratic.

While contract change Management practices had a significant role in the completion

of roads, its overall effect on the regression model was the least. However, the fact

that contract Management practices is positively correlated with completion of roads

projects at county level, it is imperative that county officials in charge of procurement

stop premature contract termination and other contract management issues in order to

encourage road completion.

The supervision activities on their own were not seen as significant predictor of

completition of road projects and therefore the county government should always

embrace contract management practices, payment practices, and contractor

prequalification in alongside supervision.

5.5 Recommendations for Further Studies

The study recommended for further studies an examination of the influence of the

county management on the completion of road projects within the devolved

government structure. The study also recommends for further studies the influence of

contract management practices and completition of road construction projects within

other county governments.

77
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 APPENDIX ONE; INTRODUCTORY LETTER

Gloria Mulinde

TEL:

EMAIL: [email protected]

BOX:

RE: DEAR RESPONDENTS.

I am an MBA (Project Management) student at Kenyatta University conducting a

research on: influence of contract management practices and completion of road
construction projects by the county government of Machakos, Kenya. I hereby
request you for the below stated information required for me to achieve my research
objectives as part of requirement for MBA degree.

Information offered will be treated confidentially and used for the purpose of this

research only. The findings of the research will ultimately help improve the

performance of this company and especially the effectiveness of initiating and

implementing business strategies.

Appreciation is offered as you aid in the creation of new knowledge to aid both the

academy and the industry.

Regards,

…………………..

Gloria Mulinge

The Researcher/ Student

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 APPENDIX TWO; QUESTIONNAIRE
BACKGROUND INFORMATION

Tick appropriately to responds to the following questionnaires and supply additional

information on the spaces provided.

1. State your gender.

i. Male ( )
ii. Female ( )
2. How long have you worked for this institution.
i. 0-2 Years ( )
ii. 3-5 Years ( )
iii. 6-8 Years ( )
iv. more than 8 Years ( )
3. Indicate your highest level of education.
i. PHD l ( )

ii. Masters ( )
iii. Degree ( )
iv. Diploma ( )
v. Any other ( )
Specify…………………………………………………………………………………
…………………………………………………………………………………………
………………………………

PART ONE: CONTRACT MANAGEMENT PRACTICES

4. Do the road contractors in Machakos County delay in completion of roads?

Yes ( )
No ( )
If yes explain how they delay the road construction projects
…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………
5. How would you rate how the county government of Machakos supervises
road contractors?
a) Very close supervision ( )
b) Close supervision ( )

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 c) Related supervision ( )
d) Very related supervision ( )
e) No supervision ( )
6. State the extent to which the following contract management practices affect
road construction projects.

1. No extent 2. Small extent 3. Average extent. 4. Great extent 5. “very

great extent”

1 2 3 4 5
a) Engaging unqualified contractors
b) Delay in paying contractors
c) Changing of contract documents
d) Failure to supervise contractors
7. In your own opinion, what in what ways contract management practices can
be adjusted to improve completion of road construction?

…………………………………………………………………………………
…………………………………………………………………………………
…………………………………………………………………………………
………………………………………

PART TWO: CONTRACTOR PRE QUALIFICATION PROCESS

8. Would you agree with the statement that prequalification of contractors is

fair?

Yes ( )
No ( )
Explain your answer
…………………………………………………………………………………
…………………………………………………………………………………
………………………
9. Indicate the extent to which the following is emphasized in the contractor
prequalification process using the following scale.
1. “very great extent” 2. Great extent 3. Average extent 4. Small extent 5.
No extent
1 2 3 4 5
a) Training of the contractor
b) Experience of the contractor
c) Past performance of the contractor
d) Clearance with other government
bodies. ( eg KRA, HELB, PPOA)
e) Capacity of the contractor ( machinery
owned )

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10. State the reasons why some of the contractors are not prequalified by the
county government of Machakos.
…………………………………………………………………………………
…………………………………………………………………………………
…………………………

PART THREE: CONTRACT PAYMENT SYSTEMS

11. Tick on the reasons that mostly cause delayed payments to contractors.
a) Lack of cash ( )
b) Delay in inspecting roads ( )
c) Bureaucracy in the government ( )
12. Indicate the extent to which the following factors affect payment to
contractors.
1 2 3 4 5
a) Release of monies by the central
government
b) Bureaucracy in the finance department
c) Demand for bribes by county government
officials
d) The government budgetary circle
e) Disagreements over contractual obligations

13. State the frequency with which the following occurs using the scale provided
by contractors over no payment.
1. Never 2. Rarely 3. Usually 4. Regularly 5. Always

1 2 3 4 5
a) Litigation by contractors over non payment
b) Complains by contractors over delayed
payment
c) Complaints by contractors over the amount
to be paid

14. List what can be done to improve contract payment system.

…………………………………………………………………………………
…………………………………………………………………………………
…………………………

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PART FOUR: CONTRACT CHANGE MANAGEMENT PRACTICES

15. Tick appropriately to indicate the frequency with which changes are made in
this county.

1. Always 2. Regularly 3. Usually 4. Rarely 5. Never

16. Indicate the common reasons why contracts are changed.
…………………………………………………………………………………
…………………………………………………………………………………
…………………………
17. Indicate the extent to which the following is done during the contract change
process using this scale.

1. “very great extent” 2. Great extent 3. Average extent 4. Small extent 5.

No extent
1 2 3 4 5
a) Due diligence is conducted to ascertain the
authenticity of change
b) The government and contractor agree on the
cost of change
c) There are adequate provisions in contract
document for change

18. Indicate the frequency the following occurs during contract change process
using the following scale.
1. Always 2. Regularly 3. Usually 4. Rarely 5. Never
1 2 3 4 5
a) Change in cost of roads project
b) Change in completion time of
roads projects
c) Change in quality of road
projects
d) Termination of contractors
work

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PART FIVE: CONTRACTOR SUPERVISION ACTIVITIES

19. Do you think the county government has enough engineers to supervise
contractors?
Yes ( )
No ( )
20. Tick appropriately to indicate the extent to which the following factors affect
supervision of contractor using the scale provided.
1. Always 2. Regularly 3. Usually 4. Rarely 5. Never
1 2 3 4 5
a) Lack of resources to monitor
contractors
b) Corruption
c) Lack of policies on contractor
supervision
d) Lack of other enabling structures
for supervision

21. Suggest ways in which contractor supervision activities can be improved

…………………………………………………………………………………
…………………………………………………………………………………
………………………..

PART SIX: COMPLETION OF ROAD PROJECTS

22. Would you rate the completion of road projects by county government as
faster than central government?
Yes ( )
No ( )
23. Indicate the extent to which the following performance metrics in road
construction has changed under the county government.

1. “very great extent” 2. Great extent 3. Average extent 4. Small extent 5.

No extent

1 2 3 4 5
a) Priority of roads built
b) Time taken to complete

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 roads
c) Cost of constructing
roads
d) Quality of roads
constructed
24. In your own opinion, list the factors that affect roads construction projects in
this area.
…………………………………………………………………………………
…………………………………………………………………………………
…………………………

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 APPENDIX THREE

NACOSTI AUTHORIZATION LETTER

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