CONTRACT MANAGEMENT AND SERVICE DELIVERY IN UGANDA’S PARASTATAL BODIES
CASE STUDY: UGANDA NATIONAL BUREAU OF STANDARDS (UNBS)
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Service delivery remains a key concern for governments and scholars worldwide. There is broad consensus among researchers that effective public service delivery is essential for promoting national welfare and driving economic growth. Governments undertake numerous initiatives to provide services to citizens while ensuring compliance with established service standards within the framework of the rule of law (Mampe, 2012; Bola, 2011; Nandain, 2006; Kaunda, 2005; Shan, 2005).
Parastatal organizations increasingly recognize that efficient service delivery enhances value for money (Duggan et al., 2008). As a result, these institutions must continuously seek ways to improve both efficiency and effectiveness. Within the context of public procurement, service delivery management focuses on fulfilling contractual obligations as agreed upon in procurement contracts (Shah, 2005). This necessitates close monitoring of suppliers through effective contract management practices aligned with contractual terms.
Furthermore, effective service delivery requires continuous management throughout the contract lifecycle to ensure that goods and services meet the agreed performance standards (Clackmannanshire Council, 2013).
Contract management plays a critical role in influencing service delivery outcomes (Oluka et al., 2014). It provides a structured framework for ensuring the success of procurement processes. However, poor contract management—characterized by unclear procedures and weak policies—can result in cost overruns and increased risks, ultimately undermining service delivery (Aberdeen Group, 2006).
Studies such as Joshua et al. (2004) indicate that although contracting processes are similar across different levels of government, contract management and accountability remain weak areas. Contract management facilitates the fulfillment of contractual obligations and achievement of intended outcomes (Walton, 2009; Elsey, 2007). In Uganda, once a contract is awarded, responsibility for contract management shifts from the procurement unit to the user department (PPDA Act, 2003; Amendment Act, 2011).
Despite its importance, contract management has often been neglected (Lynch, 2013). For instance, an Australian Government Audit Office report (2007) revealed that about 30% of audited contracts had irregularities, with many deliverables not fully achieved. Similarly, Uganda’s PPDA baseline survey (2010) identified discrepancies between planned and actual contract completion timelines. Reports also highlight instances where payments were made for incomplete or poor-quality work, negatively affecting service delivery (Rwothungeyo, 2013).
At UNBS, audit reports (2009, 2013) revealed significant risks associated with service delivery, including missing contract records, delayed payments, and late deliveries. Despite efforts under the UNBS Strategic Plan (2010–2015) to improve procurement performance, service delivery challenges persist. These include poor-quality outputs, contract cancellations, delayed completion, partial deliveries, and missing documentation (Mubangizi, 2013).
1.2 Statement of the Problem
According to the UNBS Procurement and Disposal Unit (PDU) Annual Report (2012), over 200 contracts were awarded in the 2011/2012 financial year. However, the level of service delivery associated with these contracts remains largely uncertain. Mubangizi (2013) reported widespread dissatisfaction, including poor-quality goods and services, with approximately 30% of contracts cancelled. Additionally, 5% of contracts were either partially delivered or not delivered at all, while 10% experienced delays beyond agreed timelines. Furthermore, 60% of completed contracts were paid after the stipulated 30-day payment period. Other issues included inflated pricing and missing contract management documentation.
These persistent service delivery challenges highlight the need to examine the role of contract management in influencing service delivery at UNBS.
1.3 Purpose of the Study
The study aims to examine the influence of contract management on service delivery at the Uganda National Bureau of Standards.
1.4 Objectives of the Study
i. To determine the relationship between contract management and service delivery.
ii. To identify other factors influencing service delivery in parastatal bodies.
iii. To propose recommendations for improving service delivery at UNBS.
1.5 Research Questions
i. What is the relationship between contract management and service delivery?
ii. What other factors influence service delivery in parastatal bodies?
iii. What strategies can be implemented to improve service delivery at UNBS?
1.6 Scope of the Study
1.7.1 Subject Scope
The study focuses on contract management and its impact on service delivery.
1.7.2 Geographical Scope
The research will be conducted at UNBS headquarters in Nakawa, as well as regional offices in Kanjokya and other selected locations.
1.7.3 Time Scope
The study covers the period from 2010 to 2013, during which UNBS intensified efforts to improve service delivery. The research will be conducted over three months (May–August 2014).
1.8 Significance of the Study
This study will:
- Provide recommendations to improve service delivery at UNBS.
- Inform policymakers about the role of contract management in public service delivery.
- Contribute to existing literature on contract management and service delivery.
1.9 Conceptual Framework
The conceptual framework illustrates the relationship between contract management and service delivery in parastatal organizations.
It is proposed that key components of contract management—such as contract monitoring, stakeholder involvement, and records management—directly influence service delivery. However, intervening factors such as political influence, law enforcement, and media coverage may negatively affect this relationship.
Effective contract monitoring, for example, enables on-site inspections that help identify substandard goods or services before acceptance. Similarly, stakeholder involvement ensures that both internal and external parties contribute to improving service delivery outcomes.
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews existing literature on contract management and its influence on service delivery, factors affecting service delivery, and strategies for improvement.
2.1 Contract Management and Service Delivery
In recent years, the complexity and volume of contracts have increased significantly due to globalization, outsourcing, and heightened competition. Organizations have evolved from simple producers of goods and services to complex entities relying on advanced business models. Consequently, adherence to contractual obligations has become more critical, increasing the need for effective contract management policies (Krappe & Kallayil, 2003).
Contract management is increasingly important as suppliers and contractors become extensions of the buying organization. Organizations now depend heavily on contracts to maintain competitive advantage, making contract management capabilities essential (Rendon, 2006).
Contracts underpin all organizational activities, governing relationships with employees, clients, and partners. However, the effectiveness of a contract depends not merely on its existence but on its content, including cost implications, deliverables, risks, and termination conditions (Mockler, 2010).
Contracts are often described as the backbone of modern business (Still, 2005). However, managing contracts effectively presents challenges, particularly for large organizations. Managers must ensure that contractual terms are clear, enforceable, and aligned with organizational goals.
Effective contract management offers opportunities for improving operational efficiency and service delivery (Lind, 2008). However, many organizations focus more on procurement processes than on contract implementation, even though actual benefits are realized during the execution phase (National Audit Office, 2008).
The success of contract management depends largely on factors such as contract terms, the tendering process, and the relationship between the contracting parties (Rendon, 2006). Each contract is unique and requires tailored management approaches, considering its objectives, resources, timelines, and documentation requirements (UN Practitioner’s Handbook, 2006).
Good contract management practices help reduce costs, improve service quality, and ensure accountability. Clear allocation of responsibilities between contract managers and service providers is essential to ensure timely delivery, adherence to specifications, and maintenance of quality standards (UNOPS Procurement Manual, 2010; Sigma, 2011).
Ultimately, effective contract management ensures that services are delivered as agreed, contributing to improved organizational performance and enhanced service delivery outcomes.
