Contract Management and Operational Performance of the Road Construction Sector in Uganda: Evidence from the Uganda National Roads Authority

Muheesi Alex – Lecturer at Uganda Martyrs University, Research and Internship Coordinator, Faculty of Business Administration and Management.
Kasenge Martin – Lecturer at Uganda Martyrs University, Associate Dean, Faculty of Business Administration and Management
Ssebagala Cyprian – Lecturer at Uganda Martyrs University, Dean, Faculty of Business Administration and Management
Namuli Josephine – Lecturer at Uganda Martyrs University
Email: mkasenge@umu.ac.ug

Abstract: The study examined the effect of contract management on operational performance of the road construction sector in Uganda, a case of the Uganda National Roads Authority (UNRA) paying attention to three objectives: to examine the effect of contract administration; relationship management and contract monitoring on operational performance of UNRA. A cross sectional research design was used on a sample of 108 participants from whom questionnaires were used to collect data. SPSS (version 25) was adopted to process data while analysis was done through descriptive and inferential statistics. Findings revealed that all tenets of contract management studied are positively related to operational performance (contract administration: r = 0.53; p < 0.01, relationship management: r = 0.644; p < 0.01 and contract monitoring: r = 0.469; p <0.01). Results revealed that contract management explains 41.3% of the variation in operational performance of UNRA and that contract administration, relationship management and contract monitoring have a positive effect on operational performance with net contributions of 42%, 34.7% and 24.6% respectively. The researchers conclude that contract management positively predicts operational performance. The researchers recommend that the authorities at UNRA should pay keen attention to all dimensions of contract management adopted in the study since they all positively relate with and equally positively influence operational performance of the organization. By doing so, any occurrences that would jeopardize smooth flow of activities and works will be eliminated, hence harnessing operational efficiency.