CONTRACT MANAGEMENT AND SERVICE DELIVERY IN UGANDA PARASTATAL BODIES

CASE STUDY        : UGANDA NATIONAL BUREAU OF STANDARDS

LIST OF ABBREVIATIONS

OECD             : THE ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD)

WB                  : WORLD BANK

PPDA          : PUBLIC PROCUREMENT AND DISPOSAL OF PUBLIC ASSETS AUTHORITY.

UNBS              : UGANDA NATIONAL BEUREU OF STANDARDS

CHAPTER ONE

INTRODUCTION

1.1Background to the study

This section includes; historical perspective, theoretical perspective, conceptual perspective, contextual perspective.

1.1.1 Historical Perspective

The complexity and volume of contract drastically increased globally in the recent years. Some of the causes that can be attributed to this include globalization, out sourcing, intense competition for existing markets as well as complicated and numerous partnership. Over the last fifty years many, of the world’s largest firms have advanced from being simple manufactures of hard goods, or providers of basic services, to being sophisticated vendors using advanced business models. This means that commitment of customers and suppliers to contractual obligations has increased, thus, the need for sustainable contract management polices (Saoula, 2019).

Safa et al., (2017), argues that contracts are the life blood of the modern business. Without this vital legal glue, entering into arm’s length commercial deals would be fraught with peril yet for medium to large sized organizations contract management brings challenges of its own. This means that in order to rely on contracts, managers must ensure that their terms and conditions are largely defensible. According to Turner, (2017) , there are fewer high value global contracts coming to the market and an increasing number of ‘second tier’ companies entering the market and seeking to secure smaller but potentially more complex  contracts.

Organisations in both the public and private sectors are facing increasing pressure to reduce costs and improve financial and operational performance. New regulatory requirements, globalisation, increases in contract volumes and complexity have resulted in an increasing recognition of the importance and benefits of effective contract management (Broekhuis, & Scholten, 2018).

The growing recognition of the need to automate and improve contractual processes and satisfy increasing compliance and analytical needs has also led to an increase in the adoption of more formal and structured contract management procedures and an increase in the availability of software applications designed to address these needs (Davison, & McCue, 2018).

Government parastatal bodies are realizing that efficient service delivery improves value for money (Selviaridis, & Norrman, 2015). Accordingly, parastatal bodies must find ways of improving efficiency and effectiveness of service delivery.In public procurement, service delivery management is concerned with meeting fully the deliverables that were agreed upon in the contract, (Areas, 2011). This however requires supplier’s close monitoring by way of implementing contract management in line with the agreed upon deliverables set out in the contract. While the Safa,  et al., (2017) emphasizes the need for service delivery to be managed throughout the lifetime of the contract to ensure that goods/services are delivered in line with the performance or service level expectations as identified in the original contract.

Contract Management in public procurement has significant implications for service delivery (Shava, 2018). He further believes that contract management offers an important framework for ensuring the success of any procurement undertaking for which service delivery is one of them. Robitza,  (2017).  found out that inefficient management of supplier contracts and unclear policies and procedure can have significant impact on the enterprises and hurt service delivery of which some of these effects include cost over runs and exposure to risks for both parties in the contract. While Robinson, & Scott, (2009).  in a study comparing similarities and differences of key contracting components for city, state and federal governments of the united states of America, Found that for all government in the federal systems, the public management functions of contracting are remarkably similar, and the contract management and the achievement of accountability are weak links in the contracting process, Ninsima, & Lyimo, (2019), refer to Contract management as an aid to parties to a contract to meet their obligations in order to deliver the objectives required of the contract. Contract management, except the capacity to amend or terminate, shall pass from a procuring and disposal unit to a user department on award of contract (PPDA Act, 2003; PPDA Amendment Act, 2011) for management of service delivery.

1.1.2 Theoretical Perspective

Systems theory

The study will be based on the systems theory. The system theory propounded by Bertalanffy (1920) indicates that an contract management in an organization  is made of different key dimension and all have an influence on the efficiency of the contract management process.  This theory will be used to this study because it is believed that there are different factors influencing contract management and these include; Contract monitoring which is influenced by key dimensions like; On ground inspection, Problem identification, Progress reporting. Stakeholder Involvement is also influenced by; Internal stakeholders (End users /customers and public officials) and External stakeholders (Providers and Politicians). Contract management is also influenced by Records Management which is measured by Use of records and Reliability of information. In relation to this study von Bertalanffy emphasized that contract management  are open to and interact with different key factors which influence its efficiency, and that an organization should pay attention to key dimension like stake holder involvement and contract monitoring

Particular organizations achieve service delivery efficiency in different ways. Thus, the same concepts and principles of organization are different.

The theory assumes that efficiency in service delivery works as system therefore relating to this study, the dimensions of the service delivery will include; Time which is influenced by time of delivery of services,  Efficiency and Quality of service which is determined by Cost effective  of the service and the ability of the service to Serves its purpose and lastly the study Quality of service which is measured by the ability of the service to Meet expectation of consumers

This theory is very essential in explaining the study because it assumes that service delivery cannot be explained by a single factor and therefore the researcher will not limit himself to the independent variable only he discover other factors that affect service delivery.

1.1.3 Conceptual background

Contract management is a discipline that supports commercial management through the preparation, negotiation, implementation and oversight of legally enforceable performance commitments and risk positions, both outbound (to the market) and inbound (from the market). It converts commercial policies and practices and technical capabilities into specific terms and conditions that are offered to or required from its suppliers, customers or business partners, ensuring compliance or gaining approvals for non-compliance. Through active monitoring of performance needs and outcomes, contract management informs commercial management with regard to actual and required commitment capabilities, together with their financial and risk impact Muhammad et al., (2019).

Contract Management at its best is about managing risk, and managing relationships. At its simplest a contract is a document describing a relationship between two parties, what each of them agree to do, and who carries the risk if things don’t turn out as planned. Contract Management is about managing that relationship, and those risks, to ensure that both parties get the result they originally wanted. Everything such as cash flow, revenue, obligations management, and all other areas around this, flow from this simple premise(Mubangizi  & Tshishonga, 2013).

A service delivery framework (SDF) is a set of principles, standards, policies and constraints to be used to guide the designs, development, deployment, operation and retirement of services delivered by a service provider with a view to offering a consistent service experience to a specific user community in a specific business context (Rendon, 2016).

1.1.4 Contextual Frame Work

In Uganda Baseline Survey Report on Public Procurement Systems in Uganda (PPDAA, January 2010), there were significant variances between the actual and indicative time frames in contract completion. In addition, Sabiiti notes that the Government at times pays for no work done or very shoddy work and sometimes, contracts are not delivered on time which has affected the ability of the Government to deliver quality services to the general public (as cited in Rwothungeyo, 2013).Meanwhile the Public Procurement and Disposal of Public Assets Authority (PPDA) Audit reports of UNBS, (2009 and 2013) indicate high riskswith 27% and 19% in 2009 and 2013 respectively accruing from service delivery management where there were missing contract management records, delayed payment for received goods and services and delayed deliveries.

Although the UNBS strategic plan for 2010-2015 has put in place mechanisms for tracking and reporting procurement departmental work-plan activities whose key outputs are as a result of good service delivery through good contract management processes, service delivery is still not up to the UNBS stakeholder expectations and this is evident in the complaints of poor quality of products/services received, high cancellation of contracts, high priced goods/services, lack of delivery or partial delivery, delayed completion of contracts, missing contract management documents among others (Mubangizi, 2018).

1.2 Statement of the problem:

UNBS PDU annual report, (2012) indicates over 200 awarded procurement contracts in financial year 2011/2012 but the levels of service received/delivered on most of these procurements remain unknown. Mubangizi (2013) reported high complaints of poor quality products/services delivered with30% contracts cancelled, 5% of contracts either not delivered at all or received in part, 10% deliveries made over the stipulated delivery period and 60% of the contracts performed paid after 30days stipulated payment period, high priced goods/services and missing contract management documents among other issues. The persistent high complaints in service delivery in UNBS warrant examining the influence contract management on service delivery.

1.3 Purpose of the study

The purpose of the study is to examine the influence of Contract management on Service delivery in UNBS

1.4 Objectives of the study:

1. To establish effect of contract monitoring on service delivery.
2. To examine the influence of stakeholder involvement on service delivery

• To determine the effects of records management on service delivery

1.5 Research Questions:

1. What is the effect of contract monitoring on service delivery?
2. What is the influence of stakeholder involvement on service delivery?

• What are the effects of records management on service delivery?

1.6 Research hypothesis

H₁        Contract monitoring has positive effect on service delivery.

H₂        Stakeholder involvement has influence on service delivery.

H₃            Records management does not affect service delivery.

1.6 SCOPE OF THE STUDY

1.7 Subject scope

The scope of the study will cover Contract Management and its influence on service delivery.

1.7.1 Geographical scope

The researcher will consider UNBS regional offices; UNBS headquarters in Nakawa and UNBS offices in Kanjokya.

1.7.2 Time scope:

The researcher will be carried out in Mach 2020.

1.8 Significance of the study

The study will recommend service delivery improvements to UNBS management.

The study will inform policy makers the influence Contract management in service delivery

The study will add on to the existing body of knowledge on contract management and service delivery for future researchers.

1.9 Conceptual frame work

Figure 1: Diagrammatic expression of the relationship between contract management and service delivery of the parastatal bodies in Uganda.

Contract management (Independent Variable)

Source: primary data

Source: Developed by the researcher from Ernita & Greitens, (2012).

This conceptual frame work shows the relationship between contract management and service delivery.

It is conceptualized that the dependent variables of contract monitoring stakeholder involvement and records management have a direct influence on service delivery and the intervening variables in the form of influence, police enforcement and media publicity have a negative effect on the relationship between the independent and dependent variables.

Contract monitoring can affect service delivery for instance through on ground inspection. If UNBS continuously inspects the project activities on the ground, they would be in position to identify fake productsand equipment, poor services in the deliveries made before acceptance can be granted.

Stakeholder involvement; this also has an effect on service delivery for example how the internal and external stakeholders their interest activities affect service delivery.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter reviews available literature on the influence of contact management on service delivery, factors that may influence service delivery, and recommendations for service delivery improvements.

2.1 Contract monitoring on service delivery.

Service delivery is a contemporary issue for most governments and researchers alike. Most scholars are in agreement that public service delivery is critical to ensuring the national welfare and stimulation of economic development. This is because often governments undertake a number of activities to provide citizens with services and at the same time guarantee that these services are provided in accordance with the service delivery requirements within the rule of law, (Mampe, & Kalusopa, 2012: Bola et al., 2011).

Contract management presents opportunities that allow the contract manufacturers to achieve improved optimization through changes to production, process or organizational strategy.  In addition firms, investing in project organization often do so in order to become flexible adaptable and customer oriented towards achieving efficiency in service delivery (Lind, 2008).The National Audit office (2008) indicates that focus is frequently placed on the procurement process itself than the implementation of the contract yet it is only after the contract is awarded that the benefits of the procurement process can be realized. Contract management if well-handled has the ability to decrease costs and improve service delivery, (South Africa: Contract Management Guide, 2010).

The success of contract management is largely influenced by what happened during the tendering and contract award phases, the terms and conditions that have been agreed and the type of relationship between customer and supplier (Barton, 2015). The UN practitioner’s handbook (2006) indicates that each contract is unique from the other and as such must be handled distinctively. The objective, the resources to be used, the start and end dates, coordination and planning of activities as well as the documentation because each contract process vary greatly.

Clough et al., (2015) contents that contract managementis a key activity in the procurement process. He observes that one of practices involved would be conducting among research to collect and analyse information about how a specific industry or sector process contain types of products and services and the best ways of ensuring that customer needs are delivered and met timely in order to create efficiency in service delivery system. Such information would include contract strategy, type of contract used, pricing arrangements as well as terms and conditions with a view of ensuring service delivery efficiency.

Turner (2017) observes that practicing good contract management has the capacity to decrease costs and enhance service delivery thus guaranteeing the quality obtained. Responsibilities for managing service delivery must be clear and appropriately apportioned between the organization’s contract manager and its service provider’s representative for attainment of effective service delivery (Sigma, 2011).

The involvement of the intended beneficiaries of government services into monitoring service delivery is a critical component in measuring the performance of government delivery of appropriate and quality services. Currently the emphasis of government’s monitoring is on internal government processes and the voice of the intended beneficiaries/stakeholders is largely absent. This presents a risk, as the picture is not complete. It is therefore necessary to support the systematic ways to bring the experiences of stakeholders into the monitoring of services. This will provide a measure of the gap between the perceived and the actual experiences of service delivery, for both user and provider (Awino, 2018).

Contract monitoring enables evaluating agency performance and determining the quality of service delivery. The purpose of monitoring is to  improve programme performance through early identification of questions and answers resolutions and identify potential problems that may require additional surveying, evaluate strategy service performance control to ensure there is a reliable basis for validating service delivery and to ensure that financial documentation is adequate and accordingly so that costs will not be questioned later on and above all to determine the level of stake holder involvement in the future dates so that an organization is able to evaluate its service provider performance (Harris  & McCaffer, 2013).

Norta, (2016)Monitoring the performance of the contractor is a key function of proper contract administration. The purpose is to ensure the contractor is performing all duties in accordance with the contract and for the entity to be aware of and address any developing problems or issues. The writer further asserts that, the contract manager/administrator is responsible for the oversight of all contractors, suppliers and service providers, by monitoring their compliance with the terms and conditions of their respective contracts to ensure greater service delivery. “Strategic public engagement inproviding an oversight role in the delivery of public services is an essential dimension of building public accountability in local government” (Smith, 2011).

2.1.3. Stakeholder involvement in service delivery

Stakeholders vary in their impact, significance, interest and relevance in relation to contract management and service delivery objectives (Bourne & Walker 2016). To manage complex contracts with multiple stakeholders it is useful to establish committees with membership that is representative of stakeholders. Using committees can provide a structured approach for communicating with relevant parties. Shaibu, & Isah, (2018) contends that incorporating stakeholders in the day to day operations of managing their own services delivery through effective contract management would go a long way to enable them receive goods and services that meet their requirements and maintain a sufficient customer satisfaction on a sustainable level. Whereas Mubangizi, (2013) report stresses the need for UNBS to put in place measures to provide feedback to user departments, track procurement progress on implementation of contracts and service delivery procedures to be followed if value for money is to be attained. Engagement with stakeholders develops an open and inclusive environment where information, comments, opinion and criticism are valued and used (Wu, 2018).

The aim of having a relationship between stakeholder involvement and service delivery is to keep the communications between the parties open and constructive, non-adversarial and based on mutual trust (Chittoo, 2009).). This should assist in preventing problems arising and also with resolving them in a timely manner should they arise.

Reed et al., (2009)  defines a stakeholder as any individual or group who has a vested interest in the outcome of a body of work. A stakeholder has also been defined as any person, or group, who has an interest in the project or could be potentially affected by its delivery or outputs. Maintaining a good relationship does not mean that concerns of non-compliance or under-performance cannot be discussed and acted upon. It means that there is a greater likelihood that such issues can be discussed and resolved in a cooperative manner (Jones et al., 2018). The approach to stakeholder involvement in service delivery vary depending on the contract, but it is important that the specific responsibilities are not neglected, even though there may not be a nominated individual assigned to the role of relationship manager.

Stakeholder’s demand for transparency and accountability is fundamental for service delivery in parastatal bodies in Uganda, (Joshi, 2010). Joshi further argues that effectiveservice delivery relies on commitment to engage and communicate openly and honestly with stakeholders. Stakeholders involve; politicians (e.g. not adopting appropriate policies); or of public officials/ end users (not delivering according to rules or entitlements, not monitoring providers for appropriate service levels); or of providers (not maintaining service levels in terms of access and quality).Stakeholders are used as a means to improve communications, obtain wider buy-in for projects, gather useful data and ideas which enhance public sector or corporate reputation, and provide for more sustainable decision-making for service delivery across parastatal bodies.

2.1.4. Stakeholder involvement on service delivery

Records represent a particular and crucial source of information that is reliable, legally verifiable and a source of evidence of decisions and actions taken(Mosweu, & Kenosi, 2018).

Accordingly, the Ndenje et al.,  (2011) states that all records created and received in conducting a procurement activity, either paper based or electronic or both should be captured in an entity’s recordkeeping system(s) in accordance with the entity’s recordkeeping policies and procedures  (Manuals – Public Procurement Act, 2003, Act 663). The contract management guide (2010) indicates that relevant documents relating to procurement processes should be maintained as per company policies and procedures.

There are a number of countries in Africa that are increasingly reforming their public sectors to make them more efficient with scarce public resources, competitive and customers focused (Chittoo, et al., 2009), governments neglect to incorporate records management in their strategic planning. Sichalwe, et al., (2011) is of the view that the reforms cannot be successful without proper, reliable and readily available records indicating that the management of public sector records which are a critical aspect of public service reform programme, because they enhance the efficiency and effectiveness of the public service.

Olefhile et al.,  (2018) stated that, the problem of records management is not with records and information per sebut with those having interface and interactions with these two vital resources during the service delivery process. The problems of records management can be summarized into inadequate knowledge of the life-cycles of records, inertia in implementing a form of system and information. individual rights and enforce legal obligations.

Service delivery requires leadership style and management policy to be effective and an organization’s service level is only as good as its employees, (Norta, 2016). More so stake holder involvement is essential in achieving effective service delivery system in an organization as this ensures transparency in the system.

Girth et al., (2012) noted that quality, cost and time have long been recognized as the major targets of concern by the client and is closely linked to time and cost and vice versa. Accountable project with poor quality can result in extra cost and time extensions, a project with time and cost poorly controlled can affect the conformance to quality requirements. For the majority of projects, the cost and time parameters are the mean pre- occupying factor for attributing success in achieving service delivery effectiveness.

Records need to be appraised periodically or systematically in order for the organization to continually dispose obsolete and to select records of archival value. Records appraisal ensure that semi-current records are separated from current records in order to improve organization efficiency and effectiveness by limiting the retrieval period of the current records needed for the day-to-day running of an organization. Records appraisal by government institutions is crucial for the government to be in position to meet the demands of the of the citizens (de Mingo, & Cerrillo, 2018).

If an organization fails to write down a disaster preparedness plan, it exposes itself not only to a possible loss to its human capital but to its vital records and information needed for its daily operations. If the organization fails to access its vital records after a disaster, it will take time for the organization to return to business and that will result in a considerable loss of revenue. Records management therefore, is one of the cornerstones of the organizational effectiveness and efficiency (Chinedu  & Peter, 2019).

Records created and stored on paper or in a computer are expensive One function of records management is the economical control of information. There is little doubt that automation will be a necessary part of most office environment in the next few years. Records management personnel have responsibility to see that cost-effective procedures are implemented and maintained to ensure low office overhead costs, this will enable an organization to reduce unnecessary costs and improve on better service delivery to the use department (Boma, 2018).

According to Olefhile et al., (2018) all records created and received in conducting a public service good, either paper based or electronic or both should be captured in an entity’s recordkeeping system(s) in accordance with the entity’s recordkeeping policies and procedures.

CHAPTER THREE

METHODOLOGY

3.0 Introduction

This section presents the research methods that will be used to carry out the study. It covers the research design, Area of study, target population, sample design, sample size, research instrument, measurement of variables, Data Collection Procedure, data analysis and anticipated problems of the study

3.1 Research Design

A case study design shall be adopted for this research.  They provide an in depth study of a particular situation. The study also shall use qualitative and quantitative methodologies for data analysis. Quantitative and qualitative methodologies shall be used in examining the effect of contract management on service delivery at Uganda National Bureau of Standards. Quantitative research consists of those studies in which the data concerned can be analysed in terms of numbers while qualitative describes events, persons and so forth scientifically without the use of numerical data. Quantitative research is based more directly on its original plans and its results are more readily analysed and interpreted. Qualitative research is more open and responsive to its subject. (Christina Hughes, 2006)

3.2 Area of the Study

The study shall be carried out at UNBS headquarters in Nakawa Industrial area on Plot M217 and its branches in different regions in Uganda.

3.3 Target population

Sekaran (2003) defines a population as the entire group of people, events or things that a researcher wishes to investigate. The entity comprises of239 employees, 1executive director, 12 management staff, 40 division heads, 5 regional heads, 181 staff members at UNBS whose duties influence Stakeholder Involvement, contract management and service delivery in UNBS.

3.4 Sample Size, Techniques and Selection

Mugenda and Mugenda (2003), argue that it is impossible to study the whole targeted population and therefore the researcher shall take a sample of the population. A sample is a subset of the population that comprises members selected from the population. Using Krejcie and Morgan’s (1970) table for sample size determination approach, a sample size of 148 employees was selected from the total population of 239 employees.

Table 1: Population, Sample size and Sampling technique

Source: UNBS Employee List, (2025)

3.5 Research Instrument

Questionnaires shall be used to obtain the necessary primary data to answer the research questions and achieving the research objectives. The questionnaire shall be designed in a manner that motivates respondents with simple structured questions with the option of providing any addition information to the structured questionnaire as an option to obtain relevant data from them. Secondary data shall be obtained through reading and reviewing existing records of related information to contract management such as contract management reports, published articles, journals and PPDA publications. Validity and reliability tests shall be carried out to ensure accuracy and usability of the instrument.

3.6 Measurement of Variables

A five point Likert ordinal scales ranging from; strongly agree which shall be assigned 5, strongly Agree, 4 agree, Not Sure assigned 3, Disagree allocated 2 and strongly disagree allotted 1 to obtain responses on the variables. The Likert ordinal scale has been used by numerous scholars who have conducted similar studies such as Bowling, (1997).

3.7 Validity and Reliability

The data a collection tools shall be pre-tested on a smaller number of respondents from each category of the population to ensure that the questions are accurate clear and in line with each objective of the study.

3.7.1 Validity

It is the degree to which results obtained from the analysis of the data actually represents the phenomenon understudy, (Mugenda & Mugenda, 2003).  To ensure validity of instrument close guidance of the supervisor were adopted. This helped to identify ambiguous questions in the interval and be able to re-align them to the objectives.

3.7.2 Reliability

Reliability tests and analysis shall be carried out.

3.8 Data Collection Procedure

The researcher shall obtain an introductory letter from Uganda Management Institute to enable easy access to information by the researcher from UNBS. The procedure of data collection shall be based on the research objectives and questions.  A review of related literature shall also be done.  A questionnaire shall be pre-tested and review of the questions may be done if necessary, to ensure reliability and suitability.

3.9 Data Sources

Source of data will be from both primary and secondary sources.

3.9.1 Primary Data

Primary data shall be obtained from well-designed questionnaires structured to obtain relevant data and to gain opinions and practices on impacts of contract management on service delivery, at UNBS

3.9.2 Secondary Data

Secondary data is data which has been collected by individuals or agencies for purposes other than those of a particular research study. It is data developed for some purpose other than for helping to solve the research problem at hand (Bell, 1997).Secondary data shall be obtained from Procurement and Disposal Unit (PDU) reports, published articles, journals and PPDA publications relating to contract management and service delivery.

3.10 Data Process and Analysis

Data analysis shall involve the use of both quantitative and qualitative techniques.

Data processing shall be done by entering the data into a statistics package for social sciences (SPSS) in line with the research questions. Data analysis shall be done by also using this statistics package for social sciences (SPSS) to formulate frequency tables where the mean, variance and standard deviation will be obtained.

3.11 Limitations

The researcher anticipates lack of adequate resources for some of the research activities. In addition, the information required in the study is likely to be hard to be extracted from the respondents as it may be viewed as confidential.

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