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2.1Contract management and service delivery

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 (Krappe and Kallayil, 2003).

The contract management process is now increasing in importance as contractors and suppliers become virtual extensions of the buying organization. Organizations are increasingly relying on critical services and production contracts as their key to maintaining competitive advantage, the organization’s competence and process capability in contract management is now more important than ever. Some organizations are using process capability maturity models to assess, measure, and improve critical core processes, such as software development and project management. Although, the application of capability maturity models to the contract management process is just beginning to emerge as a best practice (G. Rendon, 2006).

Contracts are the basis for all activities in every enterprise and in almost every department of an enterprise. Having no contracts means there are no employees, no clients, no IT systems, no material and no partners. However the mere presence of a contract is not sufficient. It is the content of a contract that determines the future of an enterprise: What will my enterprise have to pay for and how much wills that cost me? How much will we receive or what are our expected deliverables? How will I work together with my partners? Are there any risks or (unknown) opportunities related to the contracts? When will the contract terminate or in which circumstances can it be cancelled and when? (Mockler, 2010).

Still (2005), 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 the survey by the international association for contract and commercial management of 2008, 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.

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 (The National Audit office, 2008; Rendon, 2006). 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.

Rendon (2008) 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.

The Contract Management guide (2010) 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 (UNOPS Procurement manual 2010: the UK Office of Government Commerce, 2008). This helps to evaluate whether or not the provider is delivering the project or services or goods specified in a timely manner, in the quantity required and ensuring that the quality of the services provided are up to standard, (Sigma, 2011).

According to the contract management guide (2002), contract management is one of the most important project management and time management techniques. It involves preparing a sequence of steps to achieve some specific goals.Management of a contract provides a strategy for an organization to plan on how to meet the needs of a specific customer’s and also to improve on its level of service delivery. For contract between two parties provides a platform for project strategy. Arto et al, (2008) define project strategy as a direction to a project that contributes to success of a project in its environment. They interpreted direction in this context to mean either one or several of the following; goals, plans, service deliveries, means, methods, tools or governance system and mechanisms.

New regulatory requirements, globalisation, increasing number in signed/awarded contracts and their complexity have resulted in an increasing need to put more emphasis on the importance and benefits of effective contract management, (Abadeen group, 2004: Elsey, 2007). After an organization awards a contract it must monitor to ensure the service is being delivered as specified. This implies that the service has been provided as to the agreed standards and price.Protiviti, (2009), argues that not having a formal, well defined and documented contract management process in place can have significant long term impact on the organisation’s ability to track and monitor service delivery as well as meet stakeholders expectations. Accordingly, stakeholder involvement is fundamental to the effective planning, monitoring for efficient service delivery for each contract.

Contract management is important in ensuring service delivery processes and involves; contract planning, monitoring, stakeholder involvement, performance assessment and records management (Australian National Audit Office, 2007;IAPWG, 2006). It encompasses various activities that need to be completed on a day-to-day basis, including: developing and maintaining contact details of key people involved in the contract, scheduling meetings and other actions required by the contract, delivery and acceptance of goods or services, making payments, maintaining complete records for the contract itself, and establishing and maintaining contract documentation.

Oosterom(2007) argues that the overall goals of service delivery must be clearly understood; quality of service (the accessibility, timeliness and quality of service levels); cost of service (value for money obtained); and customer segmentation (the need for different service channels and service offerings based on comprehensive customer insight).When parastatal bodies contract a vendor, they remain responsible for ensuring the work is performed satisfactorily and government funds are used appropriately. Accordingly, the parastatal body is responsible for the consequences of poor performance whether the agency or a vendor provided the service/project or goods as agreed (Hinton, 2003). The parastatal bodies thus must see to it that service delivery is monitored closely through effective contract management to foster achievement of contract deliverables as agreed.

The level contract management conducted on service delivery by parastatal bodies is largely at their discretion, it primarily depends on the nature or complexity of the contract (Republic of South Africa; Contract Management Guide, 2010). More importantly, review of the service delivery process must be done to evaluate the benefits obtained or lost due to insufficient contract management otherwise; there will be little opportunity to benefit from lessons learned.Good contract management requires follow-up, feedback, and enough awareness of what is occurring during the service provision to eliminate surprises.

Management of contracts requires flexibility on both sides and a willingness to adapt the terms of the contract to reflect changing circumstances. It is important to recognize that problems are bound to arise which could not be foreseen when the contract was awarded that might impair the service delivery (Elsey, 2007).      

2.1.2. Contract monitoring and service delivery

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 (The Performance monitoring and evaluationdepartment of South Africa, 2013).

United NationsDevelopment Program, (2004) defines monitoring as a continuous function that aims primarily to provide management and the main stakeholders of an on-going programme or project with early indication of progress or lack of achievement objective.According to the UNDP, without monitoring there is no way of knowing if the contractors work is inline with the contract terms. Monitoringis also regarded as the process of assessment and measurement of progress in implementing developmentinterventions (European Commission, 2007).Monitoring is the systematic collection and analysis of information as a project progresses, it is aimed at improving the efficiency and effectiveness of a project set and activities planned during phase of work in order to determine the efficiency of service delivery, (http://www.civicus.org/new/media/monitoring and evaluation.pdf).

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 , (http://www.cec.lacomtry.gov.html).InSouth Africa monitoring is largely conducted on a voluntary basis and can therefore be relatively low cost (Munnik et al, 2011).

According to Russell,(2003)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). Smith notes that “since 1994, South Africa has made greater strides in delivering basic services than it has in strengthening constructive public engagement about delivery where the public has access to recourse for the government’s poor performance.

Contract monitoring emphasis is usually on collecting and analysing information to provide assurance to the acquiring entity that progress is being made in line with agreed timeframes and towards providing the contract deliverables. Monitoring can be undertaken directly by the acquiring entity or through a third party arrangement. Monitoring teams/persons are required to prepare and maintain documents and records pertaining to the procurement process and the administration of contracts following award of contracts to successful firms (European Bank for Reconstruction and Development, 2010). Monitoring may be undertaken directly by the acquiring entity or indirectly by 3^rd party but the overall responsibility for accepting contract deliverables remains with the acquiring entity. Information provided by a third party or the contractor for monitoring purposes should be reviewed and audited, as necessary, to ensure its accuracy and reliability. Information provided may be verified through end-users who may be consulted to establish whether the goods and services they received met their requirements in respect to performance metrics like;quality, timely delivery, and cost. While the broad arrangements for actual monitoring over the life of the contract should generally have been set out in the contract itself, they may need further or more detailed explanation at contract start up or during the transition phase.

The level and formality of any approach to monitoring needs to be governed by the complexity of the contract and/or the degree of risk involved. In some cases the approach to monitoring may be set out in a checklist, in others, a plan setting out detailed monitoring arrangements may be needed.It is imperative to focus monitoring activity on key deliverables because detailed monitoring can be costly and can unjustifiably shift the focus away from achieving contract outcomes (Developing and Managing Contracts, 2007). This may require establishing priorities for measurement at specific intervals in service provision. Having a systematic approach to monitoring will assist in identifying any potential problems and allow early corrective action to be taken and timely reporting to senior management and other stakeholders. Brown and Potoski, (2006) argue that for easily monitored services, contracting may reduce costs not only because vendors might produce services more efficiently, but also because vendors may perform management tasks like monitoring more efficiently. The authors further indicate that service delivery contracting includes not just allocating to vendors responsibilityfor producing the service but also includes delegating to vendors importantmanagement responsibilities, such as monitoring the quality of service outcomes to which internal monitoring can be supplemented.

Contract monitoring takes place in three separate areas which are;

1. Administrative

This evaluates the contractor’s compliance with the Terms and Conditions included in the contract. Administrative monitoring includes such areas such as the contractor’s compliance with insurance coverage and any licensure requirements. Another significant area of administrative monitoring is the evaluation of compliance with the Living Wage Regulation where a Scheme contract is being monitored.

2. Fiscal

Fiscal evaluates compliance with the fiscal requirements included in the contract.

Monitoring in this area may cover reviews of the agency’s invoices toensure that they are being submitted timely and in the format specified inthe contract. The monitor is likely to check that the billed rates included on the invoice agree with the contractually agreed uponrates and those units of service, or activity being billed for, are supported by adequate documentation. If the contractor is compensated on a cost reimbursement basis, the monitor would verify that that the contractor’s accounting system adequately accounts for costs being reimbursed and costs are documented, reasonable and allowable. Other areas for review would be whether the accounting system separately accounts for the contracted program if the contractor operates more than one program, and that shared administrative costs are apportioned to the various programs using a cost allocation plan.

3. Program (Service Delivery)

Monitoring the performance of the contractor is a key function of proper contract administration. The purpose isto ensure that the contractor is performing all duties in accordance with the contract and for the agency to beaware of and address any developing problems or issues(Statewide Contract Management Guide, 2014).Evaluates whether or not the contractor is adequately delivering the agreed upon services specified in the Statement of Work in a timely manner, in the quantity required and that the quality of the services provided. Program performance measures measure both how well services are provided, and its impact on improving outcomes for the end users and the general public. Service delivery reviews are usually based on a review of pre-determined records such as contract management plans, minutes, payments, variations and performance reports among other documents.

However, depending on the complexity and contract requirements, the contract monitoring areas can change from organisation to the other or contract to the other. What is important is to ensure that what has been agreed upon between the entity and the contract meets the entity’s policies and procedures and is being adequately met by the provider as agreed in the contract.

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 (Bolt, 2011). 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. Ghebreyesus etal (2008) 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 (NSW Health, 2013).

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 (Elsey, 2007). This should assist in preventing problems arising and also with resolving them in a timely manner should they arise. Veronesietal (2009) says having a professional, constructive relationship should assist the effective management of performance, particularly in decision making processes during service delivery. Accordingly, management of complex contracts with multiple stakeholders requires establish committees with membership that is representative of stakeholders and end-users (Brown, etal 2006).

Metcalfe (2008) 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 (Stakeholder engagement toolkit, 2007).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 (OGC: Contract management guidelines, 2002). 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, (Stakeholder engagement toolkit, 2007).

The need to identify the necessary technical skills, knowledge and experience with the appropriate level of authority required of the members of the stakeholder team, the importance of the ability of stakeholder team members to work together effectively and the significance of the role of the contract manager should be recognized for each service delivery, (Elsey 2007).

A successful relationship must involve the delivery of services that meet requirements. The approach to managing stakeholder relationship will vary depending on the type of contract. Stakeholders vary in their impact, significance, interest, longevity and relevance in relation to the service delivery objectives (Bolt, 2011). For some non-strategic contracts, a more tactical approach may be suitable. For long-term strategic contracts, the emphasis on building a relationship will be much greater. In fact, the requirement for the original procurement may have been for a relationship between stakeholders and service delivery providers to be realized, rather than for a specified set of services/products to be provided. Stakeholders are diverse for each contract and may change depending on circumstances (Metcalfes, 2008).

In long term contracts, where interdependency between customer and provider is inevitable, it is in the interests of the organization to make the relationship work. The three key factors for success are trust, communication, and recognition of mutual aim. Establishing clear lines of responsibility and accountability for all decision-making is another important aspect of successful contracting and service delivery. Ensuring the necessary authorizations and delegations are in place at the beginning of the contracting cycle is an important prerequisite to ensuring that all contracting decisions and payments are valid and legally appropriate. These instruments should be periodically reviewed and kept up-to-date. It is in the contracting authority’s own interest to make the relationship work as the costs of early termination and the consequences of poor performance and unplanned changes of economic operator are highly damaging (Sigma; Contract Management, 2011)

2.1.4. Records management in 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(International Records Management Trust, 2000).Ngoepe (2008) and Mampe etal (2012) assert that better service delivery begins with better records management. Bola (2011) and Kimoni (2007) believe that proper record management helps governments to realize and achieve their service delivery goals which include; organization decision making, accountability, requirements of the law, future reference and management of state resources. Accordingly, the Better Practice Guide, (2007) 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 2009:31), governments neglect to incorporate records management in their strategic planning. Sichalwe, et al (2011:23) 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.

In support of the above, Ngoako (2011) argues that governments must ensure permanent management of its records since it needs to account to its citizens for its administrativeactions taken by it. An effective records management will enable compliance with transparency requirements.Kemoni (2008) warns that poor records management practices would have adverse consequences for public service delivery.

Popoola (2007) 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. He further notes that information and records management are the foundation of business activity. If there is no information, the management is crippled in its planning and decision-making processes. Information serves as the factor input in achieving rational organizational decision-making and high quality service delivery. It is needed to develop, deliver and assess the effectiveness of organizational policies, make informed choices between alternative courses of action, provide the basis for openness and accountability, protect individual rights and enforce legal obligations.Lynch (2013) supplements by indicating that there should be a systematic approach to recordkeeping from the beginning of the contracting cycle through to service delivery completion.

According to the developing and managing contracts; Better Practice Guide, (2007) and Manuals – Public Procurement Amendment Act, 2011, the following list of documents may be created and maintained during the contract management phase.

• Risk assessments of the procurements
• Contract management plan or checklists
• Contract conditions analyses
• All communications with the contractor
• Copies of evidence of insurances, indemnities, deeds and/or licences required under the contract
• Records of briefings of stakeholders and/or management team members
• Changeover plans
• Record of agencies’ minutes, meetings, discussions relating to the contract
• Contract lists, schedules of tasks and meetings
• Records of payments made and outstanding
• Records of performance reports, analysis, discussions, performance assessments, feedback and of any non-compliance or under or non-performance
• Variations to the contract and their approvals by relevant authorities
• Records of any disputes and related discussions or negotiations
• Assistance or expert advice received

According to Lynch (2013) there should be a systematic approach to recordkeeping at the beginning of the contracting cycle which will assist an entity to:

• provide evidence of procurements conducted and decisions made and contract management records
• manage legal and other risks like confidentiality of information, and
• provide accountability and audit trail obligations.

As such, keeping good records should be seen as an integral part of, rather than incidental to, contract management activity.

2.2 Other Factors that may influence service delivery

Service delivery requires leadership style and management policy to be effective and an organization’s service level is only as good as its employees, (Hermon and Whitmon, 2007). More so stake holder involvement is essential in achieving effective service delivery system in an organization as this ensures transparency in the system.

During service delivery, thekey challenge is often with the nature of service providers contracted to perform the services and their ability to provide quality and efficiency as well as to have the resources to do the job well. The general feeling is that management lacks responsiveness to address issues raised by stakeholders encountered during service delivery and this in turn affects the quality of service delivered.

Chan et al (2005) 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.

Quality of goods or services, (Baily et al, 2004), Defines quality as “conformance to specification”,these definitions have been widely used in many sectors and industries and academic as Bailey, (2004) stipulates that if a product doesn’t meet this specified standard defined according to customer demand and requirements, then it is defective i.e. the customer will be dissatisfied with the product.Similarly, Ardizi and Gunaydon (1998) found that clear and comprehensive project specifications are important determinants to quality performance. The client’s requirements have to be translated into practical designs and specifications to ensure that production, testing, maintenance and servicing are technically and economically feasible.

Zou, Fang, Wang and Loose more (2007) observed that the Chinese Government requires project clients (owners to enhance on site supervision). On site project supervision process is essentially the responsibility of the supervisory company which is usually appointed by the competitive selection process.Milican and Monicious (2005) note that as organizations mature the nature of on-site supervision reduces but in the initial stages site supervision is necessary to ensure that service delivery is efficient.

Char et al, (2005) asserts that professionals and researchers recognize the need for proper training and widening experience in providing proper services to the customers in a competitive business environment.A successful contract quality assumption system needs an adequate supply of conscientious workers. Barthelemy and Geyer (2004), observed than any out sourcing contract should include clause confining, dispute procedures; who has responsibility for write and the lines of reporting. When entering a contract there is need to ensure the parties interpret the contract in the same way to achieve the desired quality levels (Will cocks and lester 1997).

Boroughs and Edgar (2008) argue that service delivery is more than simply meeting specification and that the customer’s point of view is very important because the quality is what the customer says it is andit’s the customer who set the quality and value of service but not company. The author further says that customers consider reliability and ability and service effectiveness as indicators of service delivery.

Cooper and Sheere (2004) contented that if service delivery is to be achieved, every employee should get involved in the decision making that makes them feel they are part and own the company, Other than leaving the responsibility to one department with management taking the lead. They add that participatory work style and the change in the thinking that makes every employee responsible for service delivery is critical in sustaining organization process of the organization.

A study by young, (2008) found that, monitoring quality enabled organization ensure they are supplied with quality products at the same time reduced the cost of acquisition of purchases.Monitoringquality by the contracting institutions helpsto reduce costs in the service delivery process while ensuringactive commitments to continuous improvement toattainment of quality (uron et al, 2005).

Whereas there is an increase in the total amount of funds available to government bodies in Uganda, their economic and financial profile is still poor as compared to the development programmes expected to be carried out. Ahmed (2005) noted that many government bodies in Uganda, however, are unable to deliver services to residents. He said this might be because of lack of finances or lack of capacity to provide a good service at an affordable price. So government entities should find other ways to ensure that the services are improved and reach the people most in need of them.

Johan, (2006) argues that hard-earned and limited resources allocated to government entities are always misused. Priorities are misdirected; projects are done without due consideration of the demands of their stakeholders but based on selfish motives and exaggeration of the political leadership in collaboration with the senior administrators at the government entities’ level of administration. This situation is similar to the mismanagement and embezzlement of these funds by the councils (Bailey, 1998).Lawal (2000) further asserts that corruption has been rampant among the senior government bureaucrats to whom public funds meant for developmental purposes are entrusted.

At every stage in public procurement, there are risks of integrity right from procurement planning through to contract management (OECD, 2007). All these affect service delivery at the end of the day. If government parastatal bodies fail to manage these risks, accountability and eventual service delivery is greatlyendangered.

2.3 Recommendations for service delivery improvements

According to Nadiope, (2005) there is need for trained procurement personnel in order to ensure service delivery improvement in government parastatal, the author further observes that the government lacks trained procurement personnel as most of the procurement officers either lack professional competence or the academic qualification. In Uganda the need for training procurement personnel particularly to contract management can only be established after what is known about the same has been established. Public Procurement Authorities must continuously formulate and implement strategies to address the existing capacity gaps within PDEs especially in the area of contract award and management so that service delivery efficiency is meant and realized by the government parastatal bodies. This is evidenced by the PPDA Capacity Building Report (2010) which noted that some PDEs had serious constraints in execution and monitoring of contracts

In an effort to attain these demands, organizations constantly look for employees who have skills necessary to deal with the wide variety of tasks (Monczka et al., 1998; Sauber et al., 2008). Notwithstanding the above, Lan, Riley and Cayer, (2005) suggest that finding, hiring and retaining dedicated, energetic, and ethical employees with special skills is always hard. The supervisors (contract managers) should be knowledgeable in contract management. Organizations must, therefore, assign experienced staff to supervise the consultant and contractors for effective service delivery. This should be accompanied by proper record keeping in order hence eliminating errors in the contract management process in order for the service delivery effectiveness realization.

The public procurement regulatory framework dictates that contracts must be drawn carefully involving all stakeholders for completeness to avoid as unnecessary deviations in order for the achievement of service delivery effectiveness to the population, Minahan (2007) notesthat it is possible to design contracts that are robust enough to profitably continue operations in the face of expected deviations and unexpected disruptions and quickly recover from disasters. The foundation is a strong, stable supply network forged from good supply base management, strong supplier links, and continuous improvement and a corporate culture that embraces change and flexibility. But one may ask whether multi-stakeholder collaborations are important and how sustainable are they? While attending the Common Market for Eastern and Southern African (COMESA) Trainers of Trainers Workshop held in Addis Ababa, Ethiopia from 25th July-5th August 2010, participants identified key issues that can influence contract management to assure service delivery to the public as follows;apportioning of resources; clear reporting lines, defining of roles and responsibilities, ensuring timely payments and managing of risks.

According to, Thai (2005) and Bolton (2006),  contract management challenges in both public and private organisations are endemic in any contractual relationship due to lack of transparency and poor record keeping the authors further recommend for an increased level of transparency in contact management for the attainment of efficiency in service delivery in public organizations.Successful contract management and completion is often defined, as procurement of the right item, in the right quantity, for the right price, at the right time, with the right quality, from the right source (Thai, 2004), The author further contends that effective management of the contract enhance transparency in contract management so that service delivery effectiveness in public institution is achieved. However Prager (1994), contends that proper and effective management and monitoring of contracts helps improve the quality of goods and services and reduces procurement cost thus achieving three broad goals: quality products and services, timely delivery of products and services, and cost effectiveness (within budget).

In the process of ensuring that contract management successfully takes the right course, all the parties involved must keenly pay attention to all provisions in the given or existing contract as such will help the organization in achieving of service delivery effectiveness, (Sanders, Locke, Moore, & Autry, 2007; Laratta (2009) and Saunders, 2000). Successful and efficient contract management practices are those that meet the needs of the company’s stakeholders, achieve optimum conditions and value in regard to the allocation of scarce tax payers resources (best value for money), ensure rational and efficient of funds available, stimulate valuable competition and manage the risk and potential liabilities to the buyer thus improving service delivery.

Mc Crudden (2004) highlights factors such as delayed funding from the government, bureaucracy in the procurement system and poor capacity of local contractors contributing poor contract implementation, hence hurting service delivery, the author further states that if the government is to realize service delivery effectiveness funding must be availed to the different government institutions in time to enable them plan earlier so not compromised. In Uganda, funds are only released only when an entity has met the basic accountability requirements and when there is money in the treasury. All this makes it almost impossible for the service providers to do their work effectively and in the shortest time possible and hence making it hard for them to meet the scheduled deadlines. This is supported by Martin and Miller (2006) who argue that standards set are usually weak and are often not adhered to and as a result quality is compromised. Abi-Karam (2002) suggests six types of constraints: proposal writing, surety and liability schedule, contractual, performance that service delivery is and price constraints. Davison and Wright (2004) further expound on the definition of these challenges to include their relationship to the procurement process and the criteria for successful contracting. They further break down the challenges as such: Acceptance of wrong Products either as a result of poor specifications or laxity of the suppliers causing unnecessary delays in service delivery

Elimination of corruption is imperative in  enhancing service delivery effectiveness in a public institution, (Charles & Oludele, 2003), A World Bank survey of government and civil representatives in the sixty developing countries confirmed that corruption is one of the greatest obstacles to successful contract management and service delivery effectiveness. The procurement function of an enterprise is for example one area that is targeted second most by fraudsters, (Plavsic, 2004). Helsby and Kaizer (2003) contends that enterprises should do more to prevent fraud by actively evaluating and estimating the obstacles that maybe encountered in the process of execution and that these measures should be closely supported by ongoing monitoring. Corruption in Africa is significant, unabated and country specific, driven by conditions ripe for unaccountable and less than transparent behavior. Of the 34 African countries ranked in the Corruption Perception Index (CPI) produced by Transparency International in 2004, only six African countries were ranked in the top 50 per cent of the 146 country index. This assertion could probably explain Uganda’s poor Corruption Perception Index (CPI Reports, 2009; 2010 and 2011) as being as low as 2.5. A research study done by Kramer (2003) and Cooper, Farank and Kemp (2000) indicates that the most significant fraud schemes occur in, or as part of, the procurement process partly because of the huge public procurement expenditure this therefore makes countries loose billions of tax payers money in such corrupted ways hence hampering service delivery in public sector, the authors further contend that eliminating corruption is crucial towards attaining service delivery effectiveness in a government parastatal.

For service delivery effectiveness to be achieved in a public institution control of inflation is instrumental since inflation can make the contract management system in any business organization fail to carry out or rather implement its policies successfully and smoothly this normally happens when the prices for the products to be supplied keep on changing. If the price of the commodity to be supplied increases greatly compared to the one that was set at the time the contract is signed, the supplier is more likely not to supply such commodities on time hence sabotaging the smooth running of the business organization and hurting service delivery, Levy and Ferazani 2006).

Stake holder involvement is necessary if service delivery effectiveness is to be achieved , In the process of ensuring that contract management successfully takes the right course, all the parties involved must keenly pay attention to all provisions in the given or existing contract (Sanders, Locke, Moore, & Autry, 2007; Laratta (2009) and Saunders, 2000). Successful and efficient contract management practices are those that meet the needs of the company’s stakeholders, achieve optimum conditions and value in regard to the allocation of scarce tax payers resources (best value for money), ensure rational and efficient of funds available, stimulate valuable competition and manage the risk and potential liabilities to the buyer thus improving service delivery.