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CONTRACT MANAGEMENT AND SERVICE DELIVERY IN UGANDA’S PARASTATAL BODIES: A CASE STUDY OF 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

1.1.1 Historical Perspective
In recent years, the global increase in contract complexity and volume has been driven by factors such as globalization, outsourcing, market competition, and intricate partnerships. Over the past five decades, major companies have evolved from simple producers to advanced service providers with sophisticated contractual frameworks. This transformation has heightened the need for sustainable contract management practices (Saoula, 2019).

Contracts are central to modern business operations. Safa et al. (2017) argue that contracts function as the lifeblood of commerce. However, for medium-to-large organizations, managing these contracts effectively presents unique challenges. According to Turner (2017), the market is witnessing fewer large-scale contracts and more complex, smaller-scale deals being pursued by emerging firms.

Both public and private sectors are under increasing pressure to enhance operational efficiency and reduce costs. Regulatory demands, globalization, and increasing contract volumes have spotlighted the significance of effective contract management (Broekhuis & Scholten, 2018). The growing need for compliance and performance analysis has spurred the adoption of structured contract management systems and supporting software solutions (Davison & McCue, 2018).

Government parastatals now recognize that improved service delivery translates to better value for money (Selviaridis & Norrman, 2015). In procurement, effective service delivery requires strict adherence to contract terms, which hinges on active monitoring and proper contract management (Areas, 2011; Safa et al., 2017).

Contract management significantly impacts service delivery (Shava, 2018). Poor contract oversight and unclear procedures can lead to cost overruns and operational risks (Robitza, 2017). Studies by Robinson & Scott (2009) show consistent weaknesses in contract management across various levels of government in the United States. Ninsima & Lyimo (2019) emphasize that contract management helps stakeholders fulfill their responsibilities, as mandated by the PPDA Act (2003) and its 2011 Amendment.

1.1.2 Theoretical Perspective – Systems Theory
This study is grounded in Systems Theory (Bertalanffy, 1920), which posits that organizational functions—such as contract management—comprise multiple interrelated components. Effective contract management depends on monitoring, stakeholder involvement, and records management.

Contract monitoring includes site inspections, issue identification, and progress reporting. Stakeholder involvement encompasses both internal (e.g., users and public officials) and external actors (e.g., suppliers and politicians). Records management ensures the availability and reliability of data used to evaluate contract performance.

Systems theory supports the view that service delivery effectiveness stems from the synergy of various factors such as timely execution, efficiency, cost-effectiveness, and service quality. The theory informs this study by highlighting the need to examine multiple dimensions that influence contract management and service outcomes.

1.1.3 Conceptual Background
Contract management involves preparing, negotiating, executing, and monitoring agreements to manage risks and ensure performance obligations are met (Muhammad et al., 2019). It turns organizational policies and capabilities into enforceable commitments between entities.

At its core, contract management is about relationship and risk management. It governs deliverables, payments, timelines, and dispute resolution (Mubangizi & Tshishonga, 2013). A well-functioning contract management system supports service delivery through proper oversight and accountability mechanisms (Rendon, 2016).

1.1.4 Contextual Framework
The 2010 PPDA Baseline Survey reported significant discrepancies between planned and actual contract completion timelines. Sabiiti (as cited in Rwothungeyo, 2013) observed that payments are often made for incomplete or substandard work.

UNBS audit reports from 2009 and 2013 revealed major service delivery challenges—such as delayed payments and missing documentation—posing risks of 27% and 19%, respectively. Despite provisions in the 2010–2015 UNBS Strategic Plan to improve procurement performance, stakeholder dissatisfaction remains high. Complaints include poor product quality, contract cancellations, inflated pricing, late or incomplete deliveries, and absent records (Mubangizi, 2018).

1.2 Statement of the Problem

The UNBS Procurement and Disposal Unit (PDU) Annual Report (2012) documented over 200 contracts awarded in FY 2011/2012. However, service delivery outcomes for many of these contracts were unclear. Mubangizi (2013) reported that 30% of contracts were cancelled, 5% were either undelivered or partially fulfilled, and 10% were delivered late. Additionally, 60% of contractors were paid after the stipulated 30-day period. These persistent issues underscore the need to examine the influence of contract management on service delivery at UNBS.

1.3 Purpose of the Study

To assess how contract management influences service delivery at the Uganda National Bureau of Standards.

1.4 Objectives of the Study

To assess the impact of contract monitoring on service delivery
To examine the role of stakeholder involvement in service delivery
To determine the effect of records management on service delivery

1.5 Research Questions

What is the impact of contract monitoring on service delivery?
How does stakeholder involvement influence service delivery?
What is the effect of records management on service delivery?

1.6 Research Hypotheses

H1: Contract monitoring positively affects service delivery
H2: Stakeholder involvement influences service delivery
H3: Records management does not affect service delivery

1.7 Scope of the Study

Subject Scope: The study will explore how contract management influences service delivery.
Geographical Scope: UNBS headquarters in Nakawa and the Kanjokya branch will be the focus.
Time Scope: Data collection will take place in March 2020.

1.8 Significance of the Study

Will inform UNBS management on ways to enhance service delivery.
Will assist policymakers in understanding the relevance of contract management.
Will contribute to academic literature for future research.

1.9 Conceptual Framework

The conceptual model illustrates that contract management—through contract monitoring, stakeholder involvement, and records management (independent variables)—directly influences service delivery (dependent variable). Intervening factors such as political influence, law enforcement, and media coverage may moderate this relationship.