Research proposal sample
CONTRACTOR SELECTION CRITERIA AND PROJECT PERFORMANCE:
A CASE OF CONSTRUCTION PROJECTS AMONG UPE SCHOOLS IN MBARARA DISTRICT
The question of contractor selection for project delivery is a highly contested debate across the globe. Aje et al. (2009) noted that choosing an experienced contractor is paramount to the performance of the construction project. Mulumba (2016) further explains that the choice of the right contractor strongly affects successful completion of construction works. Construction industries vary in terms of their process of bid evaluation based on the countries they operate in and the environment that industry offers. The process of contractor selection and bid evaluation is reliant on differing decision criteria based on geographic location (Akcay & Manisali, 2018). Research conducted in different construction industries reveals the existence of various decision criteria when it comes to choosing an appropriate contractor. This present study seeks to examine the relationship between contractor selection and project performance in UPE schools in Mbarara district. The section presents the background to the study, the problem statement, objectives of the study, study scope, significance of the study, and conceptual framework.
Construction projects typically involve a high degree of complexity. In the theory, complexity is understood as the number and heterogeneity of different interrelated elements (Burke and Morley, 2016). Taking into consideration that construction projects 1) involve a high number of stakeholders, are 2) subject of frequent change orders, 3) of a long-term nature, and 4) affected by various influencing factors such as location, inflation, schedule targets, constrained budget, etc., it is difficult to understand, foresee and keep the under control (Vidal et al., 2011; Vařbuchta et al., 2017; Kermanshachi and Safapour, 2019). In order to cope with the project complexity, the project itself should be supported with good-quality technical, economic, and contractual documentation. Unfortunately, many projects suffer from disputes between the parties involved, leading up to adverse consequences such as significant delays, loss of quality in follow-up work, or lack of future cooperation (Lu et al., 2015).
Noor et al., (2018) believe that the choice of a contractor is one of the challenging decisions in the tendering process and it has an implication of the Project Performance. However the concept of contractor selection has been practiced since early civilization. Until 1900, procurement projects have been managed by creative architects and engineers themselves, among these for example, Vitruvius (1st century before Christ), Christopher Wren (1632-1723), Thomas Telford (1757-1834) and Islamabad Kingdom Brunel (1806-1859). It was in the 1950’s that organizations started to systematically apply contract management tools and techniques to complex engineering projects (Woo et al., 2017). Project performance is a relatively new trend in the public sector in many countries most especially in developing countries. Emphasis on project performance started in early 2000’s, driven by government’s accountability to citizens for the decisions taken and to ensure that public goods are delivered according to the citizen’s expectations (International Development Enhancement Agency, December 2018).
Studies done on contractor selection presents contrasting practices compared to what is in the developing countries. For instance, Case scenario in Australia, indicates that Watt et al. (2010) cited in Woo et al., 2017) identified and classified criteria employed to evaluate bids and contractors’ selection among Australian employers. It was found that contractors were categorized according to working capacity, financial status, health, safety and the environment, key personnel of the company location, skills in project management, social and political standards, organizational experiences, performance in previous projects, company reputation, offered price, quality control, employer and contractor relationships, technical skills and the proposed method(Watt et.al, 2010). Zavadskas et al. (2020) examined the contractor selection of construction in a competitive environment in Lithuania, a country in Europe and found that the selection of contractor can be with different risk level, and therefore, Hodges-Lehmann rule will allow stakeholders to select contractor taking into account different risk levels.
In South Africa, Contractor selection is a critical activity that plays a vital role in the overall success of any construction project (Palaneeswaran, 2016). Among all factors that may affect the selection of a contractor, cost or price consideration has for a long time been the main evaluation factor (Huang, 2011). Although the public sector has a long history of using the lowest bid as the award criterion for contracts, reliance on non-price criteria is increasing (Waara and Bröchner, 2016) and the best or most economically advantageous tender is becoming a widespread approach for contractor selection.
In Egypt, Salama et al.,(2017) investigated the criteria for contractors’ selection and bid evaluation in Egypt, and also provided critical discussion on the laws and regulations in Egypt, and concluded with a list of recommendations that aims at guiding practitioners and planning authorities to enhance the current practice. Alemu(2019) assessed the contractors’ qualification criteria in Ethiopia federal road project tender practices and revealed that qualification criteria UPEd are not following any standard and did not consider the size of projects in the subject and that the qualification criteria are wide open to be manipulated by the employer. Singh and Tiong (2017)] studied the contractor selection criteria by investigating the opinions of Singapore construction practitioners. Their results reflected that though the respondents share some degree of commonality with respect to the relevance of the contractor selection criteria, their decision-making preferences during the selection process are context specific.
Borrowing from the Agency theory by Eisenhardt (1989), it proposes that, a contract between the government and a contractor reflects a principal-agent relationship. The principal (government) contracts with the agent (contractor) to perform some level of effort, such as construction of schools on behalf of government which is eminent in this current study. In this relationship, the government’s objectives include obtaining the product or service at the right quality, right quantity, right source, right time, and at the right price (Lee & Dobler, 1971). The government also has the additional objective of ensuring the product or service is procured in accordance with public policy and statutory requirements (FAR, 2010). Contractors, on the other hand pursue the objectives of earning a profit, ensuring company growth, maintaining or increasing market share, and improving cash flow, just to name a few. Because of the different and conflicting objectives between the principal and agent, each party is motivated and incentivized to behave in a certain manner. This behavior includes either withholding or sharing information. In principal-agent relationships that involve higher levels of uncertainty, which result in higher risk (such as developing an advanced technology weapon system), the information available to the government and contractor is typically asymmetrical. This study will borrow this lens of analysis to examine the project performance at Mbarara district local government and thus the relationship between the contractors will be viewed from principal-agent relationship.
The study conceptualizes here contractor selection as an independent variable while; project performance in this study was conceptualized as dependent variables. Alhazmi & McCaffer (2000) argue that the successful completion of a construction project is directly impacted by the selection of a suitable constructor. Contractor selection is the process of choosing the most appropriate contractor to execute the project under consideration (Hamouda, H, 2015). However, Ahmed (2019) produced a tabulation of criteria for the selection of main contractors and these includes, and these includes; Financial stability, background of the company, Technical capacity, Cost Performance, Standard of quality, Occupational health and safety, Time performance, Management capability and others. Essentially, construction projects are carried out through a tendering process where the client selects a suitable contractor to execute the project. Since both the clients and contractors are involved in a project hence they together are believed to be responsible for successful delivery of the project but Adnan et al. (2012) claimed that when any misshape transpires in the project delivery, often the contractors are held responsible. This study will focus on measuring the contractor selection on three dimensions that is financial capabilities, technical ability and management capacities.
Further, Alzahrani and Emsley (2017) favor the claim and pointed out that since contractors involved from execution stage until completion. So, the success of a project is heavily depended on them. In relation to this, Cheung et al. (2018) and Xiao, H., & Proverbs (2020) reaffirm that the contractor background of the company influence the performance of the project such as delivery on time. Likewise, Tawil et al. (2017) proved that the root causes of delay in a project are attributed by contractor include; working capital problem, poor planning, poor site management, and inadequate experience. Abdelnaser Omran and Gebril (2017) also believe that overruns of time and cost are closely related to contractor attributes such as inadequate technical and financial background and experience etc. Looking at these shreds of evidence, the construction project has the majority of issues with the incapable contractor. So, the selection of a potential contractor in the construction sector during the tendering phase must involve the correct decision. The right choice of its selection is subject to its capability assessment like technical, commercial, economic, social and environmental and other parameters, called multi-criteria selection.
Alaghbari, W (2016) classified the criteria into technical, financial, and organizational abilities, whereas Al Zubaidi, H et al (2015) merged all the criteria into two categories, i.e., the first contains price and financial stability and the second contains the remaining factors (e.g., experience, staff, equipment, safety, managerial abilities, quality, and past performance). Huang (2011) mentioned in an article that past projects’ characteristics, past failures in completed projects, number of years in construction, and past client relationships are best classified into current projects and backlog classification; however, many of this present study adopts contract technical capability, financial ability and contractor managerial abilities are contractor selection criterions to measure Project Performance of the UPE schools in Mbarara district. However, the study conceptualizes contractor construction performance as dependence variables which will be measured using Time, Customer satisfaction, Quality, cost.
Project performance in construction works are normally affected by the way of selecting the contractors to do the work and it influences decision that influence project progress and success. Improper selection of contractors may lead to problems such as bad quality of work and delay in project duration (Orkun. A & Alptekin, N, 2017). Mbarara district local government has been undertaking construction works in the UPE schools in the district in order to improve the Project performance of the UPE programme in the schools(Mbarara District Local government Department, 2021).Among these projects include the construction of classroom blocks, staff houses, latrines water tanks etc.
Meanwhile, Muhwezi, et al., (2013) observed that wastage in construction extends to labor, time, capital and environmental factors. Ssemwogerere (2018) also observed that delay in completion of projects in Uganda is a big problem, as it is in the construction industry worldwide. Delays impact directly on contractors and clients alike because these participants incur extra costs since delays always end up in increased project cost. Additionally, the client faces revenue loss from delayed project completion (Ghenbasha, et al., 2016). Based on the above analysis, it is evident that numerous studies have tried to examine contractor selection and project performance from the perspective of other sectors, and more so focus has been paid on huge government projects with little attention to the local government projects.
In the process of selecting contractors for construction projects among UPE (Universal Primary Education) schools in Mbarara District, though the PPDA ACT, 2003 clear indicates the procurement procedures, PPDA Report, (2021) Indicates that procurement procedures are not followed in many instances and there is lack of a comprehensive and standardized set of criteria, leading to challenges in project performance and overall quality of infrastructure development in Mbarara district. The absence of clear contractor selection criteria contributes to inconsistent project outcomes, delays in completion, cost overruns, and subpar construction quality within UPE schools in Mbarara District. This lack of a structured approach in selecting contractors has resulted in dissatisfaction among stakeholders, including school administrators, local government authorities, and the community at large (PPDA, 2020), Moreover, the current system overlooks crucial factors such as contractor experience, financial capability, technical expertise, compliance with safety standards, and adherence to project timelines. Consequently, this has led to instances of poor workmanship, material wastage, contractual disputes, and the need for costly project rectifications post-construction. However, most of these projects have registered under performance with delays as most of the projects have stalled for years without completion causing clients dissatisfaction about these projects. Some of the projects that have been initiated by the district local government and have not been completed include; the construction of a two-classroom block at Rukanja Primary school and a three (3) unit staff house at Rwamuhigi Primary school, both located in Rubindi Sub-county at UGX 145 million, Construction of a two-classroom block and a five stance pit latrine at Nyakayojo II Primary school in Rwanyamahembe sub-county, at UGX 101 million(Twesigye,2011), Given these challenges, there is a pressing need to establish a robust and transparent contractor selection process that considers a comprehensive set of criteria aligned with project goals, budget constraints, and quality standards. This will not only improve project performance and reduce risks but also enhance the overall learning environment and infrastructure sustainability within UPE schools in Mbarara District.
To purpose of this study was to examine the relationship between contractor Selection Criteria and Project Performance among UPE Schools in Mbarara District.
- To examine the relationship between contractors’ financial capability and Project Performance among UPE Schools in Mbarara District.
- To assess the relationship between contractors’ technical ability and Project Performance among UPE Schools in Mbarara District.
- To Investigate the relationship between contractors’ managerial capability and Project Performance among UPE Schools in Mbarara District.
- What is the relationship between contractor financial capability and Project Performance among UPE Schools in Mbarara District?
- What is the relationship between contractor technical ability and Project Performance among UPE Schools in Mbarara District?
- What is the relationship between contractors’ managerial capability and Project Performance among UPE Schools in Mbarara District?
- There is a significant positive relationship between contractors’ financial capability and Project Performance Among UPE Schools in Mbarara District
- There is a positive significant relationship between contractors’ technical ability and Project Performance Among UPE Schools in Mbarara District
- There is a positive significant relationship between contractors’ managerial capability and Project Performance Among UPE Schools in Mbarara District
The study specifically examined the how contractor selection affects or determines the Project Performance among the UPE schools in Mbarara district. The study specifically examined the relations between financial capacities, technical abilities and managerial capabilities of the contractors in relation to the Project Performance in UPE schools in Mbarara district.
Geographically, the study was done in Mbarara district which is located in Western Uganda, Ankole Sub region. The district lies along Kampala, Masaka-Kabale high way, next to Lake Mburo National Park. Mbarara District is bordered by Ibanda District to the north, Kiruhura District to the east, Isingiro District to the southeast, Rwampara District to the southwest, Sheema District to the west and Buhweju District to the northwest
From the FY 2016/17, the government had invested a lot in the construction projects in the government aided schools in order to improve the quality of UPE programme in the area and most of these projects were to be completed by 2018/2019 FY. However, these construction projects have had several challenges evident in the quality of construction works, delays, and so on. As such, the community has continued to raise queries over the works of the selected contractors in the district. Therefore, this study particularly focused on the period between 2017-2022 to examine how the question of contractor selection has affected the Project Performance among the UPE schools in Mbarara district.
The study will generate knowledge on the indicators of contractor selection in the district particularly how the financial capacities, technical and managerial abilities of the contractor can influence or determine the Project Performance in the district.
This information will guide the district making process of the district authorities while awarding tenders to the contractor’s verses project outcome.
This information will also guide the user department, local communities and other stakeholders to seek for accountability from the local authorities and contractors on the quality of services provided in the district.
The findings in this study will help in informing policy development on the subject matter that will in turn help project guidance to professionals involved in construction projects in Uganda
