Contract Management Procurement Performance Nexus

Authors

  • W. N. Akannobe Dr. Hilla Limann Technical University
  • E. Adinyira Kwame Nkrumah University of Science and Technology image/svg+xml
  • A. R. Alidu College of Built Environment, University of Washington, United States of America.

DOI:

https://doi.org/10.26437/1sc9ah64

Keywords:

Contract. contract management. performance. procurement. value for money

Abstract

Purpose: The study investigates the proposition that improved procurement performance can be achieved when contract management is properly handled.  It examines the issue within the context of a public university, where most of the government’s expenditure on education is incurred. Design/Methodology/Approach: The study employed a quantitative approach. Primary data was obtained from key procurement staff at the Dr.  Hilla Limann Technical University using a 5-point Likert scale questionnaire. Purposive sampling was used to select a total of 67 data points from participating staff engaged in work contract management. The data collected were analysed using the Relative Importance Index, Spearman's Rank Correlation, and Regression.

Findings: The study revealed a significant positive relationship between contract management activities and procurement performance. Allocation of adequate financial resources for project implementation, health and safety measures, competent project monitoring and evaluation teams, an effective risk management plan, appropriately approved contract modifications, effective dispute management, and proper record-keeping are key interventions required to improve procurement performance.

Research Limitation: The study was a case study and was limited to contracts at Dr Hilla Liman Technical University, thereby enabling a thorough analysis of contract management.

Practical Implication: The study suggests that procurement officers must not only ensure adherence to due procurement processes to achieve value for money, transparency, accountability, and environmental and social sustainability, but also take a keen interest in contract management.

Social Implication: Efficient procurement practices positively affect resource utilisation in the education sector, ensuring that funds are used effectively for their intended purposes. Additionally, contract management practices ensure transparency and trust, thereby enhancing public confidence.

Originality/ Value: The study's novelty lies in its contextual focus on Dr. Hilla Limann Technical University, a case study of a Public University in Ghana. The study focused on works contract management and procurement performance, the relationship between the two, practical recommendations, and contributions to the academic and procurement practice literature.

Author Biographies

  • W. N. Akannobe, Dr. Hilla Limann Technical University

    Wisdom Nchor Akannobe is a Lecturer in the Department of Procurement and Supply Chain Management at Dr. Hilla Limann Technical University, Ghana.

  • E. Adinyira, Kwame Nkrumah University of Science and Technology

    Prof. Emmanuel Adinyira is a Professor in the Department of Construction Technology and Management at Kwame Nkrumah University of Science and Technology, Ghana.

  • A. R. Alidu, College of Built Environment, University of Washington, United States of America.

    Abdul-Razak Alidu is a PhD student at the College of Built Environment, University of Washington, United States of America.

References

Aban, J. L., Sapilang, D. N., Bacnotan, L. U., Abubo, R. P., & Sario, C. G. (2015). Awareness, perspectives, and practices on the multifaceted educational pedagogies in Don Mariano Marcos Memorial State University, Philippines. 59th World Assembly.

Adinyira, E., Agyekum, K., Manu, P., Mahamadu, A. M., & Olomolaiye, P. (2022). Lessening procurement deviations using procurement post reviews: Evidence from Ghana. Journal of Financial Management of Property and Construction, 27(2), 199–219. DOI: https://doi.org/10.1108/JFMPC-05-2020-0038

Aluonzi, G., Oluka, P., & Nduhura, A. (2016). Contract management and performance of road maintenance projects: The case of Arua Municipality. Universal Journal of Management, 4(10), 550–558. DOI: https://doi.org/10.13189/ujm.2016.041004

Ambaw, B. A., & Telgen, J. (2017). The practice of performance-based contracting in developing countries' public procurement: The case of Ethiopia. Journal of Public Procurement. DOI: https://doi.org/10.1108/JOPP-17-03-2017-B005

Andrew, D. P., Pedersen, P. M., & McEvoy, C. D. (2019). Research methods and design in sport management. Human Kinetics. DOI: https://doi.org/10.5040/9781718221031

Baily, P., Farmer, D., Crocker, B., & Jessop, D. (2022). Procurement principles and management in the digital age (12th ed.). Harlow: Pearson Education.

Barrett, P. (2016). New development: Procurement and policy outcomes—a bridge too far? Public Money & Management, 36(2), 145–148. DOI: https://doi.org/10.1080/09540962.2016.1118939

Bosio, E., Djankov, S., Glaeser, E., & Shleifer, A. (2022). Public procurement in law and practice. American Economic Review, 112(4), 1091–1117. DOI: https://doi.org/10.1257/aer.20200738

Chan, A. P. C., Darko, A., Olanipekun, A. O., & Ameyaw, E. E. (2018). Critical barriers to green building technologies adoption in developing countries: The case of Ghana. Journal of Cleaner Production, 172, 1067–1079. DOI: https://doi.org/10.1016/j.jclepro.2017.10.235

Changalima, I. A., Ismail, I. J., & Mchopa, A. D. (2021). A review of the forms, rationale, and challenges of supplier development in public procurement: Lessons for public buyers in Tanzania. Future Business Journal, 7(1), 63. DOI: https://doi.org/10.1186/s43093-021-00108-2

Changalima, I. A., Mchopa, A. D., & Ismail, I. J. (2022). Supplier development and public procurement performance: Does contract management difficulty matter? Cogent Business & Management, 9(1), 2108224. DOI: https://doi.org/10.1080/23311975.2022.2108224

Changalima, I. A., Mchopa, A. D., & Ismail, I. J. (2023). Supplier monitoring and procurement performance in the public sector in Tanzania: The moderating role of contract management difficulty. IIM Ranchi Journal of Management Studies (ahead-of-print). DOI: https://doi.org/10.1108/IRJMS-04-2022-0039

Chifuti, C., & Kasongo, R. M. (2020). Factors affecting procurement performance in non-governmental organizations in Zambia. International Journal of Supply Chain Management, 5(1), 87–101.

Coleman, E., Nooni, I. K., Fianko, S. K., Dadzie, L., Neequaye, E. N., Owusu-Agyemang, J., & Ansa-Asare, E. O. (2020). Assessing contract management as a strategic tool for achieving quality of work in the Ghanaian construction industry: A case study of FPMU and MMDAs. Journal of Financial Management of Property and Construction. DOI: https://doi.org/10.1108/JFMPC-08-2018-0046

Dormann, C. F., Elith, J., Bacher, S., Buchmann, C., Carl, G., Carré, G., Marquéz, J. R. G., Gruber, B., Lafourcade, B., Leitão, P. J., & Münkemüller, T. (2013). Collinearity: A review of methods to deal with it and a simulation study evaluating their performance. Ecography, 36(1), 27–46. DOI: https://doi.org/10.1111/j.1600-0587.2012.07348.x

Edler, J., & Uyarra, E. (2013). Public procurement of innovation. In Handbook of innovation in public services (pp. 224–237). Edward Elgar Publishing. DOI: https://doi.org/10.4337/9781849809740.00025

Eriksson, P. E., & Westerberg, M. (2017). Effects of procurement on construction project performance. In International Conference on Management of Technology, 5(9).

Gill, I. (2022). The hidden $1 trillion: Halting waste in public procurement. World Bank Blogs. Retrieved from https://blogs.worldbank.org/voices/hidden-1-trillion-halting-waste-public-procurement (accessed September 8, 2022).

Grandia, J., & Meehan, J. (2017). Public procurement as a policy tool: Using procurement to reach desired outcomes in society. International Journal of Public Sector Management, 30(4), 302–309. DOI: https://doi.org/10.1108/IJPSM-03-2017-0066

Hamid, N. (2018). Use balanced scorecard for measuring competitive advantage of infrastructure assets of state-owned ports in Indonesia: Case in Pelindo IV, Indonesia. Journal of Management Development. DOI: https://doi.org/10.1108/JMD-12-2016-0313

Hutt, M. D., & Speh, T. W. (2012). Business marketing management: B2B. Cengage Learning.

Kibogo, A. D., & Mwangangi, M. (2014). Factors affecting contract management in the public procurement sector in Kenya: A case of Kenya Literature Bureau. European Journal of Business Management, 1(11), 377-384.

Kim, H., Sefcik, J. S., & Bradway, C. (2017). Characteristics of qualitative descriptive studies: A systematic review. Research in Nursing & Health, 40(1), 23–42. DOI: https://doi.org/10.1002/nur.21768

Kiswili, N. E., & Ismail, N. S. (2016). Role of sustainable procurement practices on supply chain performance of manufacturing sector in Kenya: A case study of East African Portland Cement Company. European Journal of Logistics, Purchasing and Supply Chain Management, 4(3), 1-31.

Kristensen, H. S., Mosgaard, M. A., & Remmen, A. (2021). Circular public procurement practices in Danish municipalities. Journal of Cleaner Production, 281, 124962. DOI: https://doi.org/10.1016/j.jclepro.2020.124962

Li, L., Li, Z., Wu, G., & Li, X. (2018). Critical success factors for project planning and control in prefabrication housing production: A China study. Sustainability, 10(3), 836. DOI: https://doi.org/10.3390/su10030836

Mensah, J. K., Abu, I. A., & Prah, A. K. A. (2025). Assessment of Lean-Agile Practices in the Pre-Contract Stage for Works Procurement. African Journal of Applied Research, 11(5), 456–472. DOI: https://doi.org/10.26437/p70jga84

Miller, D., & Friesen, P. H. (1986). Porter's (1980) generic strategies and performance: An empirical examination with American data: Part I: Testing Porter. Organization Studies, 7(1), 37–55. DOI: https://doi.org/10.1177/017084068600700103

Miller, D. (2019). The resource-based view of the firm. In Oxford Research Encyclopedia of Business and Management. DOI: https://doi.org/10.1093/acrefore/9780190224851.013.4

Mwangi, K. J. (2020). Contract management practices and performance of county governments in Kenya. International Journal of Social Sciences Management and Entrepreneurship (IJSSME), 4(1).

Namukasa, J. (2017). Records management and procurement performance: A case of NAADS program in the central region of Uganda. Records Management Journal. DOI: https://doi.org/10.1108/RMJ-04-2016-0011

Namusonge, G. (2016). The effect of monitoring, evaluation, and risk management of projects on performance of firms in the telecommunication sector in Kenya. Strategic Journal of Business & Change Management, 3(4). DOI: https://doi.org/10.61426/sjbcm.v3i4.387

Njoki, G. C., Ismail, N., & Osoro, A. (2021). Effect of contract management on performance of state corporations in Kenya. International Journal of Academic Research in Business and Social Sciences. DOI: https://doi.org/10.6007/IJARBSS/v11-i5/9853

Nyaga, M. M., & Mwangangi, P. (2019). Influence of contract management practices on performance of Kiambu County. The Strategic Journal of Business & Change Management, 6(1), 661–675. DOI: https://doi.org/10.61426/sjbcm.v6i1.1090

Olendo, J. A., & Kavale, S. (2017). Effects of supplier relationship management on supply chain performance at Bamburi Cement Mombasa, Kenya. The International Journal of Business & Management, 4(7), 436–452.

Oluka, P. N., & Basheka, B. C. (2014). Determinants and constraints to effective procurement contract management in Uganda: A practitioner’s perspective. International Journal of Logistics Systems and Management, 17(1), 104–124. DOI: https://doi.org/10.1504/IJLSM.2014.057983

Public Procurement Authority. (2018). Works contract administration manual. Public procurement procedures handbook, Volume I: Standardised procurement procedures.

Public Procurement Regulatory Authority (PPRA). (2021). Directory of procuring entities for 2020/2021. Dodoma.

Rasheli, G. A. (2016). Procurement contract management in the local government authorities (LGAs) in Tanzania: A transaction cost approach. International Journal of Public Sector Management, 29(6), 545–564. DOI: https://doi.org/10.1108/IJPSM-10-2015-0173

Ray, S., & Ray Chaudhuri, B. (2018). Business group affiliation and corporate sustainability DOI: https://doi.org/10.1037/t73239-000

strategies of firms: An investigation of firms in India. Journal of Business Ethics, 153(4), 955–976.

Saeed, A. M., Duffield, C., & Hui, F. K. P. (2018). An enhanced framework for assessing the operational performance of public-private partnership school projects. Built Environment Project and Asset Management. DOI: https://doi.org/10.1108/BEPAM-07-2017-0041

Saunders, M. N., Lewis, P., Thornhill, A., & Bristow, A. (2015). Understanding research philosophy and approaches to theory development.

Shalle, N. I., Guyo, W., & Amuhaya, I. M. (2014). Role of inventory optimization on e-procurement performance in state parastatals in Kenya. International Journal of Social Sciences and Entrepreneurship, 1(10), 86–96.

Taber, K. S. (2018). The use of Cronbach’s alpha when developing and reporting research instruments in science education. Research in Science Education, 48, 1273–1296. DOI: https://doi.org/10.1007/s11165-016-9602-2

Tavakol, M., & Dennick, R. (2011). Making sense of Cronbach’s alpha. International Journal of Medical Education, 2, 53–55. DOI: https://doi.org/10.5116/ijme.4dfb.8dfd

Thai, K. V. (2001). Public procurement re-examined. Journal of Public Procurement. DOI: https://doi.org/10.1108/JOPP-01-01-2001-B001

Ullah, K., Abdullah, A. H., Nagapan, S., Suhoo, S., & Khan, M. S. (2017). Theoretical framework of the causes of construction time and cost overruns. In IOP Conference Series: Materials Science and Engineering (p. 012032). IOP Publishing. DOI: https://doi.org/10.1088/1757-899X/271/1/012032

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. DOI: https://doi.org/10.1002/smj.4250050207

Wuni, I. Y., & Shen, G. Q. (2020). Barriers to the adoption of modular integrated construction: Systematic review and meta-analysis, integrated conceptual framework, and strategies. Journal of Cleaner Production, 249, 119347. DOI: https://doi.org/10.1016/j.jclepro.2019.119347

Yang, F., & Zhang, X. (2017). The impact of sustainable supplier management practices on buyer-supplier performance: An empirical study in China. Review of International Business and Strategy, 27(1), 112–132. DOI: https://doi.org/10.1108/RIBS-08-2016-0043

Zhao, X., Pan, J., & Song, Y. (2018). Dependence on supplier, supplier trust and green supplier integration: The moderating role of contract management difficulty. Sustainability, 10(5), 1–14 DOI: https://doi.org/10.3390/su10051673

Downloads

Published

31-01-2026

How to Cite

Contract Management Procurement Performance Nexus. (2026). AFRICAN JOURNAL OF APPLIED RESEARCH, 12(1), 1-23. https://doi.org/10.26437/1sc9ah64

Most read articles by the same author(s)