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CONTRACT MANAGEMENT AND SERVICE DELIVERY IN UGANDA’S PARASTATAL BODIES: A CASE STUDY OF THE UGANDA NATIONAL BUREAU OF STANDARDS (UNBS)

LIST OF ABBREVIATIONS

• OECD: Organisation for Economic Co-operation and Development

• WB: World Bank

• PPDA: Public Procurement and Disposal of Public Assets Authority

• UNBS: Uganda National Bureau of Standards

CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

This section explores the historical, theoretical, conceptual, and contextual perspectives of contract management and service delivery.

1.1.1 Historical Perspective

Global contract complexity has surged due to globalization, outsourcing, market competition, and intricate partnerships. Over the past five decades, leading firms have evolved from basic manufacturers to sophisticated vendors employing advanced business models, necessitating robust contract management policies (Saoula, 2019).

Contracts are vital in modern business, serving as legal safeguards in commercial dealings. However, managing contracts in medium to large organizations presents challenges, requiring defensible terms and conditions (Safa et al., 2017). The market now sees fewer high-value contracts but more complex, smaller agreements (Turner, 2017).

Both public and private sectors face pressure to cut costs while enhancing performance. Regulatory demands, globalization, and rising contract complexity highlight the need for effective contract management (Broekhuis & Scholten, 2018). Automation and structured processes are increasingly adopted to meet compliance and analytical needs (Davison & McCue, 2018).

For Uganda’s parastatals, efficient service delivery ensures value for money (Selviaridis & Norrman, 2015). Effective contract management aligns deliverables with performance expectations (Safa et al., 2017). Poor contract management leads to risks such as cost overruns and service inefficiencies (Robitza, 2017).

The PPDA Act (2003) mandates that contract management transitions from procurement units to user departments post-award, ensuring accountability (Ninsima & Lyimo, 2019).

1.1.2 Theoretical Perspective: Systems Theory

Bertalanffy’s (1920) systems theory posits that contract management efficiency depends on interconnected factors such as monitoring, stakeholder involvement, and records management.

Service delivery efficiency varies across organizations, influenced by time, cost-effectiveness, and quality. This theory underscores that multiple factors—not just contract management—affect service outcomes.

1.1.3 Conceptual Background

Contract management involves preparing, negotiating, and overseeing legally binding agreements to ensure compliance and performance (Muhammad et al., 2019). It balances risk and relationships, ensuring both parties achieve desired outcomes (Mubangizi & Tshishonga, 2013).

A Service Delivery Framework (SDF) standardizes service design, deployment, and operation to ensure consistency (Rendon, 2016).

1.1.4 Contextual Framework

Uganda’s PPDA reports reveal delays, shoddy work, and payment issues in public contracts (Rwothungeyo, 2013). UNBS audits (2009, 2013) identified risks such as missing records and delayed deliveries. Despite UNBS’s strategic plans, stakeholder complaints persist regarding poor quality, high costs, and incomplete contracts (Mubangizi, 2018).

1.2 Statement of the Problem

UNBS awarded over 200 contracts in 2011/2012, yet service delivery remains unclear (UNBS PDU Report, 2012). Complaints include:

• 30% contract cancellations

• 5% undelivered/partially delivered contracts

• 10% delayed deliveries

• 60% late payments

This study examines how contract management influences service delivery.

1.3 Purpose of the Study

To assess the impact of contract management on service delivery at UNBS.

1.4 Objectives

1. Evaluate the effect of contract monitoring on service delivery.

2. Analyze the influence of stakeholder involvement on service delivery.

3. Assess the impact of records management on service delivery.

1.5 Research Questions

1. How does contract monitoring affect service delivery?

2. What is the role of stakeholder involvement in service delivery?

3. How does records management influence service delivery?

1.6 Hypotheses

• H₁: Contract monitoring positively affects service delivery.

• H₂: Stakeholder involvement enhances service delivery.

• H₃: Records management has no significant effect on service delivery.

1.7 Scope of the Study

• Subject Scope: Contract management and service delivery.

• Geographical Scope: UNBS headquarters (Nakawa) and regional offices.

• Time Scope: March 2020.

1.8 Significance of the Study

• Recommends service delivery improvements for UNBS.

• Informs policymakers on contract management’s role.

• Contributes to academic literature.

1.9 Conceptual Framework

The framework links contract management (independent variable) to service delivery (dependent variable), with intervening factors like policy enforcement and media publicity.

Key Relationships:

• Contract Monitoring: On-ground inspections ensure quality.

• Stakeholder Involvement: Engages internal (employees) and external (suppliers, politicians) actors.

• Records Management: Ensures accountability and efficiency.

CHAPTER TWO: LITERATURE REVIEW

2.1 Contract Monitoring and Service Delivery

Effective contract management reduces costs and enhances service quality (South Africa Contract Management Guide, 2010). Monitoring ensures compliance and identifies risks early (Harris & McCaffer, 2013).

2.2 Stakeholder Involvement

Engaging stakeholders (e.g., end-users, providers) improves transparency and accountability (Joshi, 2010). Committees streamline communication in complex contracts (Bourne & Walker, 2016).

2.3 Records Management

Proper records ensure reliability and legal compliance (Mosweu & Kenosi, 2018). Poor record-keeping hampers efficiency (Olefhile et al., 2018).

CHAPTER THREE: METHODOLOGY

3.1 Research Design

A case study approach with quantitative and qualitative methods.

3.2 Study Area

UNBS headquarters and regional offices.

3.3 Target Population

239 employees, including management and staff.

3.4 Sampling

148 respondents selected via purposive and random sampling.

3.5 Data Collection

• Primary: Structured questionnaires.

• Secondary: PPDA reports, journals.

3.6 Data Analysis

SPSS for statistical analysis (mean, variance, standard deviation).

3.7 Limitations

• Resource constraints.

• Confidentiality concerns.