Effect of Contract Management on Achieving Value for Money in Public Sector in Rwanda: A Case of Ministry of Infrastructure

Abstract

The purpose of this study is to figure out the effect of the contract management on achieving value for money in the Rwandan public sector. To do this, the specific objectives of this study are; to determine how contract administration contribute to the achievement the value for money, to examine the role of staff competence on achieving value for money, to determine how organizational capability contributes to value for money and to assess the impact of relationship management on value for money. To get data, the study focused on a case study design and targeted a population of 92 employees. The total sampling technique was used where all the 92 staff have been used in the study. This study collected both qualitative and quantitative data. Quantitative data have been gathered through questionnaires, while qualitative data was gathered through interviews. Four theories used to guide this study: Resource-based theory, Principal-agent theory, and General System theory. To analyze data, a combination of descriptive analysis and inferential analysis were taken into consideration, with the help of Statistical Package for Social Science (SPSS). Descriptive analysis allowed this study to provide a clear description of the information provided by each respondent, including mean and standard deviation. Inferential analysis included correlation and regression analysis to establish the relationship between the variables of the study. From the findings, it was observed a positive effect between the contract administration and the value for money with a significant value of p=.046 p value was less than 5%, the staff competence and value for money with a significant value of p<.001, p was less than 5%. Also the results revealed that organizational capability has positive effect on achieving value for money with a significant value of p<.001 p was less than 5% and the study further revealed that relationship management is positively affect the achievement of value for money as evidenced by significant value of .047 which is less than 5%.The study concluded that both contract administration, staff competency, organizational capability and relationship management has significant effect on the achievement of value for money procurement within the organization as all variables had a significant value of p=0.000 p<0.05. The study recommended that MININFRA and other public procuring entities, policy makers, academicians as well as researchers should devote more efforts in ensuring that procurement contract management is executed by competent staff, organization is capable in terms of financial and capital resources and build strong relationship with internal and external procurement stakeholders in order to achieve value for money procurement. This study suggested among others, further study to be carried out on the challenges facing the implementation of contract management on achievement of value for money procurement.