Effect of Procurement Practices on the performance of Public Building Construction Projects in SNNPRS: The Case of Kembata Tembaro Zone.

Abstract

The main objective of this study is to identify the effects of procurement practices on public building construction project performance in the SNNPRS with particular reference to Kembata Tembaro Zone. The study was conducted through an explanatory design of research to explain the effects of procurement practices on public building construction project performance. Furthermore, the study used mixed research approaches. In order to achieve this objective, 130 sample respondents were selected by employing a purposive sampling technique and used a questionnaire as its main data collection tool. The primary data were collected using a questionnaire containing close ended items of Likert scale type containing five points. The data was analyzed using descriptive statistics to calculate the general information of the respondents and inferential statistics. Multiple regression models were used to explain the effect of explanatory variables (procurement planning, contract administration, specification development, procurement legal document, procurement staff competency level and tendering system) on outcome variable (project performance). The finding of the study reveals that there is a significant positive relationship between procurement practices and project performance. However, each explanatory variable has no equal significant effect on a dependent variable. The analysis revealed that the five (procurement planning, contact administration, procurement legal document, staff competency and tendering system) explanatory variables accounted for 62.1% of change of the dependent variables in the study. The study recommends that, to minimize the challenges all parties (client, contractor and design and construction) should pay attention.