Rachel Disartation

EFFECT OF PROCUREMENT PROCEDURES ON PERFORMANCE OF
PUBLIC PROJECTS: THE CASE OF ROAD CONSTRUCTION IN TEMEKE
MUNICIPALITY IN TANZANIA
RACHEL HERIEL MSANGA
A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE

REQUIREMENT FOR THE DEGREE OF MASTER OF PROJECT
MANAGEMENT
DEPARTMENT OF MARKETING AND ENTREPRENEURSHIP
THE OPEN UNIVERSITY OF TANZANIA
2020
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CERTIFICATION
The undersigned certifies that he has read and hereby recommends for acceptance by
the Open of University of Tanzania a dissertation entitled: “Effect of Procurement
Procedures on Performance of Public Projects: The Case of Road Construction in
Temeke Municipality in Tanzania”, in partial fulfillment of the requirements for the
Degree of Masters in Project Management (MPM) of the Open University of
Tanzania.
…………………………………..
Dr. France Shayo
(Supervisor)
……………………………………
Date
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COPYRIGHT
No part of this dissertation may be reproduced, stored in any retrieval system, or
transmitted in any form by any means, electronic, mechanical, photocopying,
recording or otherwise without prior written permission of the author or the
Open University of Tanzania in that behalf.

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DECLARATION
I, Rachel Heriel Msanga, do hereby declare that, this dissertation is my own original
work, and that it has not been presented and will not be presented to any other
University for a similar or any other degree award.
……………………………………
Signature
…………………………………….
Date
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DEDICATION
I dedicate this work to my lovely Children Dionis and Doreen.

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ACKNOWLEDGEMENT
The completion of this undertaking could not have been possible without the
participation and assistance of so many people whose names may not all be
enumerated. Their contributions are sincerely appreciated and gratefully
acknowledged. However, I would like to express their deep appreciation and
indebtedness particularly the following;
I express my sincere thanks to Dr France Shayo, my research Supervisor for his
guidance and support which helped me to complete my research in due time.
I pay my deep sense of gratitude to my parents Dr & Mrs H.P Msanga, relatives,
friends and others to encourage me to the highest peak and to provide me an
inspiration, With due regards I express my gratitude to them

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ABSTRACT
The study examined effects of procurement procedures on performance of public
projects; study focused on the road constructed in Mbagala ward, Temeke
municipality specifically the study aimed at identifying effects of procurement
procedures on cost performance of public project, examined effects of procurement
procedures on quality performance of public project and determining effects of
procurement procedures on time performance of public project. Data were obtained
from the procurement officers, road construction and Mbagala residence. Descriptive
and regression analysis were performed in order to determine strength of the study
variables. The study findings reveled that; procurement procedures ware highly
effective on cost performance of public projects, while regression analysis confirmed
that the procurement procedures had moderate correlation with cost performance in
road construction project. Also it was revealed that procurement procedure highly
contributed to quality performance of public projects. Further regression analysis
revealed that the procurement procedures used had very strong correlation with
quality performance and finally it was realized that procurement procedures very
highly leads to time performance Finally the study concludes that performance of
public project in Temeke municipality was highly facilitated due to the contribution of
procurement procedures on cost performance, quality performance and time
performance.
Keywords: Procurement procedures, Quality performance, Cost performance and
Time performance
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TABLE OF CONTENTS
CERTIFICATION ..................................................................................................... ii
COPYRIGHT ............................................................................................................iii
DECLARATION....................................................................................................... iv
DEDICATION............................................................................................................ v
ACKNOWLEDGEMENT ........................................................................................ vi
LIST OF TABLES ................................................................................................... xii
LIST OF FIGURES ................................................................................................ xiii
LIST OF ABBREVIATIONS ................................................................................ xiv
CHAPTER ONE ........................................................................................................ 1
INTRODUCTION...................................................................................................... 1
1.1 Overview .......................................................................................................... 1
1.2 Background of the Study .................................................................................. 1
1.3 Statement of the Problem ................................................................................. 3
1.4 General Objective ............................................................................................. 4
1.4.1 Specific Objectives ........................................................................................... 4
1.5 General Question .............................................................................................. 4
1.5.1 Specific Questions ............................................................................................ 4
1.6 Significance of the Study ................................................................................. 5
1.7 Scope of the Study ........................................................................................... 5
1.8 Organization of the Research Proposal ............................................................ 5
CHAPTER TWO ....................................................................................................... 7
LITERATURE REVIEW ......................................................................................... 7
2.1 Introduction ...................................................................................................... 7

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2.2 Conceptual Definitions..................................................................................... 7
2.2.1 Procurement ..................................................................................................... 7
2.2.2 Public Project ................................................................................................... 8
2.3 Theoretical Literature Review.......................................................................... 8
2.3.1 The Agency Theory.......................................................................................... 9
2.3.2 Performance Management Theory ................................................................. 10
2.3.3 Contract Theory ............................................................................................. 10
2.4 Empirical Literature Review .......................................................................... 11
2.4.1 Effects of Procurement Procedures on Cost Performance ............................. 11
2.4.2 Effects of Procurement Procedures on Quality Performance ........................ 13
2.4.3 Effects of Procurement Procedures on Time Performance ............................ 15
2.5 Research Gap ................................................................................................. 17
2.6 Conceptual Framework .................................................................................. 18
CHAPTER THREE ................................................................................................. 20
RESEARCH METHODOLOGY ........................................................................... 20
3.1 Introduction .................................................................................................... 20
3.2 Research Philosophy ...................................................................................... 20
3.3 Research Strategy ........................................................................................... 21
3.4 Research Design ............................................................................................. 21
3.5 The Study Population ..................................................................................... 22
3.6 The Study Area .............................................................................................. 22
3.7 Sample Design and Procedure ....................................................................... 23
3.8 Sample Size .................................................................................................... 23
3.9 Data Collection............................................................................................... 25

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3.9.1 Questionnaire ................................................................................................. 25
3.9.2 Interview ........................................................................................................ 25
3.10 Data Analysis ................................................................................................. 25
3.11 Validity and Reliability of the Study ............................................................. 26
3.11.1 Validity ........................................................................................................... 26
3.11.2 Reliability ....................................................................................................... 27
3.12 Ethical Issues .................................................................................................. 28
CHAPTER FOUR .................................................................................................... 29
DATA ANALYSIS, DISCUSSION......................................................................... 29
4.1 Introduction .................................................................................................... 29
4.2 Demographic of Respondents ........................................................................ 29
4.3 Age of Respondent ......................................................................................... 29
4.4 Education Level ............................................................................................. 30
4.5 Experience of Respondents ............................................................................ 31
4.6 Study Results .................................................................................................. 32
4.7 Procurement Procedures of Public Projects ................................................... 33
4.7.1 Procurement Procedures on Cost Performance of Public Projects ................ 34
4.7.2 Procurement Procedures on Quality Performance of Public Project ............. 37
4.7.2.1 Short list of Bidders ....................................................................................... 39
4.7.2.2 Resident’s Response on Quality Performance on Public ............................... 40
4.7.3 Procurement Procedures on Time Performance of Public Project ................. 41
4.7.3.1 Formation of Construction Team ................................................................... 43
4.7.3.2 Inspection of the Project................................................................................. 44

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CHAPTER FIVE ..................................................................................................... 45
SUMMARY, CONCLUSION AND RECOMMENDATIONS............................ 45
5.1 Introduction .................................................................................................... 45
5.2 Summary of the Study .................................................................................... 45
5.2.1 Procurement Procedures on Cost Performance of Public project .................. 45
5.2.2 Procurement Procedures on Quality Performance of Public Project ............. 46
5.2.3 Procurement Procedures on Time Performance of Public Project ................. 47
5.3 Conclusion...................................................................................................... 47
5.4 Recommendations .......................................................................................... 47
5.4.1 Area for Further Studies ................................................................................. 48
REFERENCES ......................................................................................................... 49
APPENDICES .......................................................................................................... 53
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LIST OF TABLES
Table 3.1: Study Reliability ................................................................................... 28
Table 4.1: Age of Respondent ............................................................................... 30
Table 4.2: Education Level .................................................................................... 31
Table 4.3: Experience of Respondents................................................................... 32
Table 4.4: Procurement Procedures ....................................................................... 33
Table 4.5: Cost Performance of Public Projects .................................................... 34
Table 4.6: Effect of Procurement Procedures on Cost ........................................... 35
Table 4.7: Quality Performance of Public Project ................................................. 38
Table 4.8: Effect of Procurement Procedures on Quality Performance ................. 38
Table 4.9: Residents Response on Quality Performance on Public ....................... 40
Table 4.10: Procurement Procedures on Time ......................................................... 42
Table 4.11: Effect of Procurement Procedure on Time Performance ...................... 42

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LIST OF FIGURES
Figure 2.1: Conceptual Framework of the Study ....................................................... 18

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LIST OF ABBREVIATIONS
DMDP Metropolitan Development Project
DLAs District Local Authorities
NGOs Non Governmental Organization
NHC National Housing Corporation
SPSS Statistical Package for Social Science
TLG Tanzania Local Government

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CHAPTER ONE
INTRODUCTION
1.1 Overview
This chapter is made up of the background of the study explaining the situation of
procurement procedures on the performance of public project followed by the
statement of the problem, general objective, specific objectives, and significance of
the study and scope of the study.
1.2 Background of the Study
Public projects are the type of scheme or activities that are managed by the
government or state focusing at solving community needs (Djankov et al 2016). These
projects require close attention since they have a great impact in countries economy.
There have been raising issues that states the project managers who are given
authority with the government on project construction do not follow the recommended
procurement procedures in procuring constructional materials. In many parts of the
world such as (Europe, Bangladesh, Australia, China, Hong Kong, India, Indonesia,
Korea, Pakistan and Palau) apply procurement practices in their constructional
activities. Cost, time and quality are constraints in procurement practices that hinder
projects development (World Bank 2016). However the construction industry has
attracted criticism for inefficiencies result such as cost overruns, low productivity,
time delay and poor quality (Owiti 2017).
Developing countries are not far behind from embracingthe procurement procedures
in their project activities. Both private and public institutions are also using the same
procurement procedures in purchasing constructionalmaterials. Agwot (2016) declared

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that developing countries have continued to reform their public procurement for the
past fifteen years. This is to increase competition, transparency, value for money and
accountability to comply with 2004 Johannesburg declaration by the multilateral and
bilateral development institutions. Even though the impact of procurement
development is not fully cherished and agreements appear to be consistent since the
reform is treated as guidance of optimal implementation rather than necessity tied to
provision of fund. About US$100 million is wasted due to weak procurement structure
procedures and policies as well failure to impose suction for violations of procurement
this was reported by (World Bank 2018). Julius and Gershon (2019) asserted that
public project needs to adapt best practices and strategies so as to ensure efficiency
and quality delivery of service.
Lewis-Faupel (2016) in Tanzania procurement procedures are also practiced in
development activities so as to ensure efficiency and effectiveness in the project
implementation. Churchill (2016) reported that in the procurement processes bidders
easily access essential information on tenders and transparent proceedings. Though
the process are mentioned to distort decisions and selection of purchasing procedures,
which result in selection of direct award process rather than a public tender
(Marie2018). Tanzanian procurement procedures entail contract negotiation in
projects, which involves discussion between parties so as to reach agreement
(Lumbanga, 2019).
The study was guided by theory of performance, agency theory and contract theory
since it allowed researcher in making assessment of activities conducted by
constructors on road construction. Therefore the conducted study examined effects of

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procurement procedures on performance of public project in Tanzania specifically the
study focused on road construction project conducted in Temeke municipality.
1.3 Statement of the Problem
Project performance is determined by different factors, mainly time, quality and cost.
Client acceptance, reputation, and ethical behavior are among the factors that
determine project performance. Road construction projects are among important
projects that bring development within the country through improvement of transport
sub-sector.
There have been raising complaining issues that some roads construction projects
within local governments of Tanzania do not meet the recommended standards. The
auditing report of 2019 noted that inspections and monitoring of the procurement
procedures are not well conducted in local government projects include road
construction projects. The project suffered from poor documentations of the records
(TCAG, 2019).
It was further noted that there were multiple delays in responding to contractor’s
requests for extension of time and completion certificates. In real sense the
procurement procedures are supposed to assist in making sure that that time
management is well adhered quality and costs are well administered. Ogunsanya
(2019) evidenced that public procurement procedures that are practiced within
developing countries have failed to deliver necessary infrastructure for economic
development. Significant amount of resources are directed in the public infrastructure
but there are no satisfactory development of those infrastructures (NCC, 2019).

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Several studies carried out on the procurement procedures have been focusing on
materials control, supplier assessment, tendering procedures but could not mention
how procurement procedures affect time cost and quality on the public projects in
Tanzania. The conducted study uncover effect of procurement procedure on the
performance of road construction project carried out by Tanzania local government
(TLG), specifically in Temeke Municipality.
1.4 General Objective
To examine effects of procurement procedures on performance of public projects; a
case study of road construction in Temeke municipality.
1.4.1 Specific Objectives
(i) To identify the effects of procurement procedures on cost performance of public
project.
(ii) To examine the effects of procurement procedures on quality performance of
public project.
(iii) To determine the effects of procurement procedures on time performance of
public project.
1.5 General Question
What are the effects of procurement procedures on performance of public project in
Tanzania?
1.5.1 Specific Questions
(i) What are the effects of procurement procedures on cost performance of public
project?
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(ii) What are the effects of procurement procedures on quality performance of
public project?
(iii) What are the effects of procurement procedures on time performance of public
projects?
1.6 Significance of the Study
The study results provide useful inputs or suggestions to the road sector authorities
(such as local government in Tanzania and TARURA) on how to improve execution
of road construction projects. The study also is useful to the policy makers in
understanding the existing loopholes, in terms of legislation perspective. This study
acts as the source of secondary information or literature to future researchers who
need to conduct studies on issues pertaining to public procurement in road
construction projects.
1.7 Scope of the Study
The study assessed effects of procurement procedures on performance of public
project in Tanzania specifically the study based on roads which were completed in
Temeke municipality for the past three years. The study used survey study design
where qualitative and quantitative research approaches was applied. So far sources of
information were collected from primary and secondary data sources which were used
as the method of data collection.
1.8 Organization of the Research Proposal
Chapter One: This chapter includes the introduction of the study which gives
overview of chapter’s contents as the background of the study which explains on

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effects of procurement procedures on performance of public project. The chapter also
contains the Statement of the problem, research objectives, questions, relevance of the
study, and organization of the study.
Chapter Two: This chapter contains the definitions of the key terms used in the
study, theoretical review showing the related theories and the empirical review basing
on the specific objectives and lastly conceptual frame work.
Chapter Three: This chapter contains research methodologies, which are the
methods that were used in conducting the study. These methods used are research
design, Population, sample and sampling procedures used in the study, it also explains
on the research instruments, methods of data collection, data analysis plan.
Chapter Four: This chapter contains analysis of data, presentation and discussion of
the findings from the study as guided by the research questions and objectives.
Chapter Five: This chapter contains summaries of the study which were established
during the research in relation to the objectives and guiding questions of the research
also conclusion and recommendations was constructed from the findings and the last
part of the study contained references and appendices

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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter contains the conceptual definition basing on the definition of important
terms, theoretical literature review which explains the relationship between variables,
the empirical literature review includes review and analyzes of other similar studies
that had contributions in the study, the research gap and lastly the conceptual
framework which is a diagram showing the variables of the study and their
relationships.
2.2 Conceptual Definitions
This part explains the definition of the words that were used most frequently in the
study. Words, which ware used are procurement procedures, performance of public
project and road construction.
2.2.1 Procurement
Business Dictionary (2011) describes Procurement as the action and method through
which a party attain goods and services. European Union (2013) defines procurement
as the act of buying or obtaining goods and services. Same to Cole (2007) defines
procurement as the acquisition of goods or services at the best potential total cost in
the correct amount and quality. Tweneboah (2017) defines procurement as the
business management function that ensures identification, sourcing, access and
management of the external resources.

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Project manager and procurement officer who are involved in project implementation
needs to understand procurement practices in acquisition of necessary materials that
are required in the project (World Bank, 2018). Procurement strategies are means of
satisfying customers need in obtaining advantageous pricing and contractual
conditions through competitive process (OECD, 2017). The conducted study applied
Tweneboah (2017) definition since it considers identification of items and outsourcing
which are relevant in the procurement practices.
2.2.2 Public Project
Lock (1989) defines project as a collection of linked activities that are carried out in
organized manner and that has a clearly defined beginning and ending purposed to
achieve specific results which are desired to satisfy clearly defined objective. The
main features of a project include clear scope and clear objectives. Stager (2002)
Public project is a project that involves one or several tasks, few or many people,
spans one or several functions, and covers a certain period of time and is administered
by the government or state. All these depend on the expected technical challenges
concerning the project. In Tanzania road constructional projects are the public project
that are constructed and managed by the government. The conducted study describes
public project as the set of arranged activities having a clear start and completion
schedule that is managed by the government.
2.3 Theoretical Literature Review
This part explains on the relevant theories that were used in the study. The study used
agency theory, performance management theory and contract theory.

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2.3.1 The Agency Theory
Agency theory is a management and economic theory that emerged in the 1970sthat
explains on the relationship within an organization (Eisenhardt, 1989). Agency theory
is applicable when an individual (Agent) is capable of taking decision for other
individual (Principal) thus makes the theory as the framework for designing and
control in organization. Agency theory apply when the road contractors (Agent)
makes decisions on behalf of municipal council (principal). The theory is applied in
conditions when the principal (Temeke municipal) requires the agent (constructor) to
do activity, which requires good quality and cost saving basing on the procurement
requirement.
The theory explains that the principal (Temeke Municipal) hires the agent
(Constructor) to construct the road. Also both Principal and agent act on their self
interest which results into asymmetric information. Gailmard (2009) revealed that the
principal mainly focuses on the obtained quality while the agent becomes responsible
in maintenance of the road infrastructure.
The model presents the relationship between the obtained quality (q) and the efforts
made by the constructor. ε represents the random component which is taken to have a
normal distribution, these means that; Temeke municipal cannot directly observe the
efforts made by constructors and may estimate directly by values obtained for quality
indicators. Also the values do not depend on the effort (e) but on other unpredictable
factors that are grouped in random variable. The theory is criticized of not showing
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the ways that could be used in reducing information asymmetry so as to satisfy the
agent and the principal.
2.3.2 Performance Management Theory
The theory states that low performance in project depends on financial, consultants,
owners, contractors and environmental related problems. Clos (2015) asserted that
high financial costs in implementing the project are caused by challenges that arise in
getting financial support to finance the project. The theory further explains that
accountability; transparency and limited financial accountability hinder development
and performance of project implementation also poor management skills, poor
decision making hinder proper performance of projects.
Constructors problems which leads to poor performance are lack of experience, poor
site management, poor supervision, allocation problem, inadequate labor skills,
inaccurate estimation and inadequate planning (Toor and Ogunlana (2008). The theory
is applicable in the study since performance of road construction in Temeke municipal
depends on how the constructor solves tribulations facing the construction activities.
However; the theory is criticized for not explaining factors that leads to performance
such improvement of project control, provision of technical knowledge and
experience, adequate planning and specification provision of financial support among
others.
2.3.3 Contract Theory
Barnett (1986) described contract theory as the set of promises for the breach of which
the law gives a remedy or performance. Contract theory is applicable when there is,
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hidden information or when there is contractual in completeness. Also it gives
explanations on how people and organization create and develop legal agreements as
well as how parties with conflicting interests build formal and informal contracts.
The theory was applied in the study when the Municipal department dealing with road
construction enters into contract with constructing agent so as to build the roads. The
contract, which is entered with, the two departments focuses on quality, cost and time.
This makes the constructing department to construct roads basing on terms and
condition of the contract.
2.4 Empirical Literature Review
This part gives review of the literatures, which are related to the study research
problem basing on the effect of procurement procedures on cost, time and quality
performance.
2.4.1 Effects of Procurement Procedures on Cost Performance
Procurement procedures are well practiced in different public sector this is due to its
important in the attainment of materials especially in the construction industry. Ghana
is among the country, which applies procurement procedures in the purchase of public
materials. The country has adopted procurement practices and strategies so as to
ensure efficiency and quality delivery of service. Road construction project is among
the areas where the procurement practices are practiced. Julius and Gershon (2019)
assessed on the procurement strategies and contract management practices and how
they affect performance of road construction strategies. The study adopted mixed
method and purposive sampling in the study methodology. From the findings it was
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revealed that competitive and restricted tendering gave value for money in the road
construction due to the lowest coefficient variation compared to other attributes for
road construction. Lastly the study concluded that; procurement strategy positively
affected the performance of road construction project in Ghana.
Momanyi (2016) carried out the study on the effect of procurement process on cost
generating power in Kenya. The study adopted case study and descriptive research
design where structured questionnaire was applied. From the results it was highlighted
that the procurement process had a significant effect on cost of generating energy.
Even though the study established that Kengen had taken enough measures so as to
ensure that costs are reduced in the procurement activities. Areas of improvement
were mentioned to be identified where reuse and recycling of materials to avoid
wastage and spending money on fresh materials.
Hillerbradt and Hughes (2016) reported that the costs of procurement such as
transaction costs are separated from the direct costs of a project. The author has
concentrated on costs of tendering in procurement; which are money costs and
opportunity costs, short-term and long-term costs, private and social costs which were
defined and examined in relation to different types of product and methods of
procurement. The costs of contractor and client are considered as uncertain to those
who bear the costs in the short-run and in the long run.
Cost effectiveness in project could be achieved through strict adherence of
procurement functions. The study confirms that NGO are struggling in implementing
the procurement functions and practices in their constructional project. Donors

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supporting the NGOs project are considered with the methods of procurement that are
used in procuring the materials. Aputo (2017) established effects of procurement
function on project performance in NGOs in Nairobi. Descriptive design was used in
the study. From the findings it was revealed that assessment, supplier sourcing and
inventory management on project construct management. Finally the study concluded
that the procurement functions have a positive effect on project perforce therefore the
NGOs need to implement the procurement practices in the excursion of project.
Odero and Shiteswa (2017) aimed at establishing on the effect of procurement
practices on public sugar manufacturing. The study employed descriptive survey
research design. The study findings revealed that the procurement planning had a
positive impact on project performance in the sugar manufacturing firm especially in
management of cost. Further the study recommends the organizations to enhance their
planning and to ensure the procurement is well adhered and the employee need to be
well trained so as to adapt the procurement practices.
2.4.2 Effects of Procurement Procedures on Quality Performance
Meeting customer’s satisfaction involves making comparison between perception of
purchase of customer before and after purchase. These give customers final feelings
about whether the outcome provides satisfying or dissatisfying experience. The
concept of quality is related to customer’s satisfaction, which is connected to the
construction industry. Owiti (2017) assessed on the effect of procurement processes
on successful completion construction project in Uasin Gishu. The study adopted
descriptive design where SPSS (Version 20) was used to analyze the data. From the
study results it was revealed that control, regulations, and assurance have 74.7% of the
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variation in successful completion of construction. For that case procurement
procedures are considered to play a great role in maintaining quality of the project.
Jeptepkeny (2015) aimed at determining the effects of procurement procedures on
project performance in Kenya. Survey of 6 construction projects was used where
purposively sampling was adopted. The study analyzed data through descriptive
statics and regression analysis. From the study results it was confirmed that invitation
to bid accounts for 6.7% of variation in project quality performance, contract negation
accounts 29.4% of the variation in project quality performance and lastly bid
evaluation accounts for 58.5% of the project quality performance. Lastly the study
concludes that procurement procedures have a strong and positive correlation with
project performance in Kenya.
Procurement procedures are considered to be the best tool that helps the government
in their budget formation and in improving the quality of service delivery.
Tweneboah (2017) aimed at examining the effectiveness and economic impact on
public financial administration capacity in procurement. Descriptive survey was
adopted in the study; from the findings it was revealed that the top management
interfere the procurement process and this had a great impact in the quality of the
construction industry. Lastly the study concludes that there is a great need of the top
level management to stop hindering the procurement process since they do not give
value for money.
Ogunsanya et al (2019) came up with a notion that procurement is an arrangement that
defines contractual processes, risk allocation, funding patens, work structure and the
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relationship between parties on project. The study aimed at identifying the challenges
that face construction procurement in developing nations. Exploratory qualitative
study was adopted in the study. Findings from the study revealed that there is
improper implementation of legislative framework, funding, corruption inadequate
knowledge of practitioners of procurement methods, unstable economic environment
are the factors affecting public procurement in Nigeria.
Erick (2016) focused on the effect of procurement procedure on organization
performance at Moi and referral hospital, Eldoret. The study adopted case study
research design in collecting the relevant information. Stratified sampling and simple
random sampling techniques were employed. The study discovered that the use of
procurement procedure helped the organization to make good plan of the material
hence it enhanced organizational performance and increased financial stability within
the organization and provide quality services within the organization.
2.4.3 Effects of Procurement Procedures on Time Performance
Time management is an important feature in constructional projects. Procurement
procedures are among the factors that lead to delay in the construction industry.
However in Malaysia the quality of time management on construction project is said
to be poor. Lok (2015) aimed at examining time practice on construction project in
Malysia. Questionnaires were distributed to the respondents. On the study findings it
was revealed that the procurement method requires a lot of documentation of which
the project managers had a great responsibility where majority of the respondents
preferred to keep progress reports of construction on paper of which was time
consuming.
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Anane et al (2019) this study was conducted to determine effect of procurement
policy, planning and sustainable procurement on service delivery and time
management. The study employed a quantitative research approach and explanatory
design. The target population for the study was staff and management of the Volta
River Authority (VRA). From the model estimation, procurement policy was the
strongest predictor of service delivery and time management followed by sustainable
procurement and lastly procurement planning. The study recommends that the
management of VRA should constantly invest in sustainable procurement,
procurement planning and procurement policy so as to enhance service delivery to the
public.
Mgawe and Masanja (2018) assessed on the influence of procurement practices on
performance of construction project in Tanzania. The study focused on national
housing corporation (NHC). Descriptive- explanatory was used to allow detailed
description and analysis of the variables. The study findings revealed that the
procurement practices influence performance of construction. Contract monitoring
and control reduced risk and triggers effort to search for solution to the identified
threats to the project success. The study lastly concludes that performance of
construction project is influenced by adoption of procurement practices. Therefore
NHC resources need to apply proper procurement procedures so as to enable
development and less wastage in the company.
Onyango (2016) carried out the study on the effect of procurement procedures on the
operational performance of private institution. Stratified random sampling technique
was used to select the sample of 142 respondents and data were collected through
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open ended questionnaire. The study revealed a positive relationship between
compliance of public procurement regulations procedures and performance of private
sector.
Luka (2016) focused on achieving efficiency and effectiveness in the procurement
department so as to improve organizational performance. Questionnaire was used so
to collect information from the respondent. The study commented that there is a need
of building robust relationships with the key suppliers to guarantee unfailing supply
and quality inputs. The inventories manufacturing companies must assess where their
greatest investments are made and the benefits that procurement can bring to each
category after significant investments are made in machinery, equipment and
facilities, the next largest investment should be made in inventories.
2.5 Research Gap
Lancaster (2005) defined research gap as the area of study that miss insufficient
information and limits the ability to reach the conclusion. The study have discovered
that from the empirical review little have been mentioned on road constructional
project specifically on the procurement practices. However past researchers could not
find out how quality time and cost affected performance of public project. Also the
theories have not given a clear picture on how procurement procedures affect public
projects rather they have insisted on the factors that effected performance of public
project. The conducted study focused on the effect of procurement procedures on the
performance of public project basing on the quality cost and cost specifically in the
road construction project in Temeke municipal.

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2.6 Conceptual Framework
Conceptual framework is the approach that is applied to show graphical form of the
points to be discussed in the study Babbie 2001). Conceptual framework explains the
way knowledge formulates basis of the research study.
Procurement Procedures
 Formation of construction team

 Development of tender and
evaluation criteria
Project
Performance
 Prequalification questionnaire
 Announcing tender to the public -Time
 Receiving tender application -Cost
 Short-list bidders
-Quality
 Tender shortlist presentation
 Selection of the best bidder
 Negotiation with a best bidder
 Contract award to the best bidder
 Inspection of the project
 Receive or rejection of the project
Independent variable Dependent Variable
Figure 2.1: Conceptual Framework of the Study

Source: Conceptualized from Literature Review (2020)
The conceptual framework of the conducted study has two sets of variables, which are
independent variable and dependent variable. Independent variable is the variables
that do not depend on any other variable while the dependent variable is the variable
19
that depends on independent variable. Independent variable of the conducted study
involves procurement procedures while the dependent variable involves project
performance.
The procurement procedures involves formation of construction team which is
responsible in organizing procurement activities, developing tender and evaluation
criteria, prequalification questionnaire, announcing tender to the public, receiving
tender application, short-listing of bidders, tender short- listing presentation, selection
of the best bidder, negotiation with a best bidder, contract award to the best bidder,
inspection of the project and finally receiving or rejection of the project. Meanwhile,
the procurement performance is measured by time taken to complete project, cost of
the project and quality of the project. This conceptual framework believed that better
project performance can be attained when proper procurement procedures are
followed.
20
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction
Methodology is the component of research, which explains methodological procedure
used in performing a research study. Saunders,Lewis, and Thornhill (2012) research
methodology can be referred as the common standard or values, which expresses the
whole research procedure. The chapter explains how the study was conducted,
designed and how data was collected, analyzed as well as validity and reliability of the
study findings and lastly ethical consideration of the study.
3.2 Research Philosophy
Research philosophy deals with nature, source and development of knowledge
Thakurta and Chetty (2015) research philosophy involves beliefs, ways used to collect
and analyze data. Research philosophy helps researcher to reflect the assumptions as a
base of research strategy. Saunders, Lewis and Thornhill (2009) described research
philosophy as the ontology (based on nature of reality classified based on objectivism
and subjectivism), epistemology (acceptable knowledge of particular area of study)
and axiology (concerned with judgments, ethics and aesthetics). The conducted study
was guided with pragmatism research philosophy. Saunders,Lewis, and Thornhill
(2012) this is the type of philosophy that accepts concepts to be relevant only when
they support action. Pragmatism philosophy gave the researcher freedom to use any
methods, techniques and procedures associated with quantitative and qualitative
research. It recognizes that; each method has its limitations thus different methods
could be complementary.
21
Ontology involves the researcher’s view of the nature of reality External; multiple
enables the researcher to answer the research questions. Epistemology involves the
researcher view regarding what constitutes acceptable knowledge. Involves provide
acceptable knowledge dependent upon the research question. Focus on applied
research integrating different perspectives to help interpret data. Axiology involves
researcher’s view of the role of values in research; values play a large role in
interpreting results the researcher used both objectives and subjective point of view.
3.3 Research Strategy
Research strategy is defined as the structure of research that holds all the elements of
research (Kothari, 2006). The conducted study used case study research strategy since
information was collected from different sources and different types of data such as
interview and questionnaire. Also the strategy allowed investigation of contemporary
phenomena within real-life context, mostly applied when boundaries between
phenomenon and context are not clearly evident and it allowed the researcher to use
both qualitative and quantities method.
3.4 Research Design
Lancaster (2005) described study design as the situation that researcher collects and
analyzes research data so as to attain the goal of doing research. Selecting research
design depends with the nature of the study, study questions, hypothesis and the
variables used in the study. The conducted study used descriptive research design.
Maxwell (1992) described research design as the systematic research design that
allows collection of qualitative and quantitative data from the targeted sample
22
population. Kothari (2006) added that descriptive research design describes the
characteristics of the place, individual or a certain group of people, which are
observed under study. Descriptive research design helped researcher to provide
description of places groups and individuals.
3.5 The Study Population
Cooper and Schindler (2006) study population is the study of individuals in the study
or can be described individual events or objective with common observable
characteristics and meets certain criteria. Mugenda and Mugenda (2008) noted that
study population is not necessarily to involve only people but also objects could be
part of the studied population. The conducted study was grouped into individual
population and object population. Human population involved officers of procurement
department within the study area were 27 in total and officers of construction
departmentwere5in total. Also the study involved 52,582 residents of Mbagala ward.
Object population involved road constructed within Mbagala Ward of Temeke
Municipality.
3.6 The Study Area
Study area refers to interdisciplinary of research pertaining to particular geographical,
cultural, region, nation where the study is limited (Babbie 2001). The study was
conducted in Dar es Salaam specifically in Mbagala ward, Temeke district which is
located in the southern part of Dar es Salaam, in the north it’s located near Kinondoni
district and in the southern part is located near Ilala district. In the east is located near
Indian Ocean and west is the Coastal region of Tanzania. The national census report
of 2012 population was about 52,582 in Mbagala ward.

23
3.7 Sample Design and Procedure
Mugenda and Mugenda (2008) described study sample as the small part of population
taken from the target population. In other word, it can be considered as the subset of
target population. There are two types of sampling technique, which are probability
and non-probability sampling technique. When total number of individuals is known
in targeted population the researcher is required to use probability sampling technique
and when it is not known the researcher is advised to use the non probability sampling
technique.
Concerning individual population the study used simple random sampling (type of
probability sampling technique) since the total number of population was known. For
the object population, researcher will use purposive sampling technique (type of non
probability sampling technique) to select roads, which were constructed within the last
three years.
3.8 Sample Size
Kull (1984) described sample size as the small number of objects or individuals
selected from the entire study population using systematic formula. The sample size
of the conducted study was obtained using formula proposed by Yamane (1967) for
the known population. Where; N is the population, n is the sample size, e is the error
term. The study will use 90% degree of accurate therefore the error time was 10% or
0.1.
24
TLG Procurement department of road construction in Mbagala ward:
TLG Construction department of road construction in Mbagala ward:
The study identified that; 27procurement department and 5 road construction
departments in within the study respectively. Therefore by using the formula above
the researcher picked 21 procurement officers and4 constructions respectively.
Below is the calculated sample size for Mbagala residents of Temeke municipality
Researcher selected 100 residents in Mbagala ward. All together individual sample
size was125individuals
25
3.9 Data Collection
This part explains how data was collected in order to reach conclusion of the study.
The study collected both primary and secondary data whereby; Secondary data helped
in obtaining information that was already available and primary data helped in
obtaining the raw information, which were needed in the study.
3.9.1 Questionnaire
Mugenda and Mugenda (2008) described questionnaire as the tool used by researcher
in collecting data from individuals using planned list of questions. The study
questionnaire involved closed ended questions, which allowed respondent to select the
provided options structured by researcher. During data collection each respondent was
given the same copy of questions to answer so as remove biasness and confusion in
data collection.
3.9.2 Interview
The study conducted face to face interview methods in collecting the necessary
information. Interview method was conducted to procurement officer, construction
officers and Mbagala.
3.10 Data Analysis
The study involved coding method was applied to convert qualitative data to
quantitative. Then SPSS (version 20) was applied in the numerical analyses so as to
provide answers to the specific questions. Descriptive analysis and regression analysis
was performed in order to determine strength of the study variables. The descriptive
analysis involved calculation of frequency, mean and percentage while multiple linear
26
regressions was used to establish relationship between independent variables
(Procurement procedures) and dependent variable (Project performance).
According to Coakes and Ong, (2011) regression analysis is used to examine how two
or more variables act together to affect the dependent variable. However coefficient of
determinant (Adjusted R squire) was used to explain percentage to which independent
variables affect dependent variable. And the correlation coefficient (R-squire)
explained how independent variable was related to dependent variable.
3.11 Validity and Reliability of the Study
This part explains on the validity and reliability of the study.
3.11.1 Validity
Petty (2009) validity refers to the extent to which the study measures what is intended
to measure. The objective of the study focused on the types of validity, which are
constructing validity and external validity.
Construct validity refers to the process of establishing the correct operational
measures for the studied concepts. This was ensured through re-examining data
entered in the analytical software (SPSS) so as make sure that the answer(s) were
correct.
External validity aimes at determining if study findings are possible to generalize
beyond the immediate case study. Since the study wascarried outin Mbagala ward in
Temeke district. Then the obtained information involved a small part which makes the
results not to be generalized beyond this ward.

27
3.11.2 Reliability
Reliability refers to the extent to which study findings are dependable over time and
they present the total population of the study Joppe (2000). Chronbach’s coefficient
alpha is designed as a measure of internal consistency that identifies if all items within
the instrument measure the same thing. The study considered Cronbach’s alpha of 0.7
to test reliability of the data collected. The normal range of Chronbach’s coefficient
alpha value is between 0.0 and 1.0. The closer the Alpha is to 1.0, meaning that the
greater the internal consistency of items in the instrument being assumed.
The study reliability was tested into groups; the first group involved the dependent
variable, which had 3 items, which are cost, quality and time performance of public
projects with Cronbach’s Alpha of 0.849.
The second group involved Independent Variables with 12 items which are formation
of procurement team, development of tender and evaluation criteria, prequalification
questionnaire, issuing of tender, pre-tender meetings/receiving tender application,
short-list bidders, tender shortlist presentation, selection of the best bidder,
negotiation with a best bidder, contract award to the best bidder, inspection of the
project, receive or rejection of the project and Cronbach’s Alpha of 0.941.
The third group involved Mbagala residents, which had 5 items, which are road signs
and symbols, pedestrian pathways, smoothness of the road, roads lights and sharp
corners. With Cronbach’s Alpha of 0.897.This results revels that the conducted study
was reliable.
28
Table 3.1: Study Reliability
Variables N of Items Cronbach's Alpha
Dependent 3 0.849
Independent 12 0.941
Mbagala residents 5 0.897
Source: Field data
3.12 Ethical Issues
Ethical issues involve researcher’s behavior during the processes of collecting data
from the respondents. The study assured all the ethical issues were considered during
the processes of data collection by achieving respondent’s privacy; all information
obtained from the respondent was secured and used only for academic purpose.
29
CHAPTER FOUR
DATA ANALYSIS, DISCUSSION
4.1 Introduction
This chapter presents discussions and findings were obtained from both primary and
secondary source of information focusing on the effect of procurement procedures on
performance of road construction project. This chapter is also presented into two
groups, which are demographic of respondent and the study results.
4.2 Demographic of Respondents
The results below present the background of respondents concerning age of
respondent, education and experience of the respondents. Descriptive analysis was
performed using cross tabulation in presenting the total percentages of the
respondents.
So far the study involved 21 procurement officers from TLG, 4 road contractor
officers from TLG and 100 Mbagala residences making a total of 125 respondents
located within the study location. Also the study involved three groups of respondents,
which are procurement officers, road constructor and Mbagala residents.
4.3 Age of Respondent
This part explains the age of respondent with aim of identifying the group age
involved in the study. Whereby; the study involved respondents who were aged below
18 years up those respondents who were aged 60years. Table 4.1 below presents the
number of respondents who participated in the study.

30
Table 4.1: Age of Respondent
Category of respondent Total

Respondent Age Procurem Road Mbagala
ent Constructor residence
<18 years Frequency 0 0 8 8
% within Category 0.0% 0.0% 8.0% 6.4%
of respondent
19-29years Frequency 8 1 28 37
% within Category 38.1% 25.0% 28.0% 29.6%
of respondent
% within Category 23.8% 50.0% 28.0% 28.0%
of respondent
% within Category 23.8% 0.0% 24.0% 23.2%
of respondent
52-60 years Frequency 3 1 12 16
% within Category 14.3% 25.0% 12.0% 12.8%
of respondent
Total Count 21 4 100 125
% within Category 100.0% 100.0% 100.0% 100.0%
of respondent
Source: Field data (2020)
Table 4.1 above presents age of respondents who were aged below 18 years made a
total of 8(6.4%)of all respondents, 19 to 29 years made a total of 37(29.6%) of the
whole respondents, 30 to 40 years made a total of 35(28.0%)of all respondents, 41 to
51 years made a total 29(23.2%)of all respondents and lastly those who were aged
between 52 to 60 years made a total of 16(12.8%) of all respondents. This implies that
the study collected information from the different age groups.
4.4 Education Level
The study was also interested in identifying the education level of respondents. The
study involved respondents with secondary education, Bachelor degree and
postgraduate degree. Results are presented in Table 4.2.

31
Table 4.2: Education Level

Category of respondent Total
Education of respondent Procurement Road Mbagala
Constructor residence
Secondary Frequency 0 0 10 10
% within 0.0% 0.0% 10.0% 8.0%
Category of
respondent
Diploma/Technical Frequency 4 1 20 25
% within 19.0% 25.0% 20.0% 20.0%
Category of
respondent
Bachelor degree Frequency 12 2 51 65
% within 57.1% 50.0% 51.0% 52.0%
Category of
respondent
Post-graduate Frequency 5 1 19 25
degree
% within 23.8% 25.0% 19.0% 20.0%
Category of
respondent
Total Frequency 21 4 100 125
% within 100.0% 100.0% 100.0% 100.0%
Category of
respondent
Table 4.2 presents education level of respondent whereby; those with secondary
education were 10(8.0%) of all respondents, diploma/technical presented 25
(20.0%)of the all respondent, bachelor degree presented 65(52.0%)of the all
respondents and post-graduate degree presented 25 (20.0%) of all respondents. This
implies that the study was able to analyze the level of understanding from respondents
with different level of education.
4.5 Experience of Respondents
The study was interested in identifying experience of respondents concerning the
performance of road construction projects in Tanzania. The study involved

32
respondents who had experience of below 2 years up to those who had experience of
more than 17 years. Results are presented in Table 4.3.
Table 4.3: Experience of Respondents

Experience Category of respondent Total
Procure Road Mbagala
ment Constructor residence
< 2 years Frequency 3 0 12 15
% within Category 14.3% 0.0% 12.0% 12.0%
of respondent
% within Category 14.3% 25.0% 12.0% 12.8%
of respondent
% within Category 33.3% 25.0% 36.0% 35.2%
of respondent
% within Category 33.3% 50.0% 36.0% 36.0%
of respondent
>17 years Frequency 1 0 4 5
% within Category 4.8% 0.0% 4.0% 4.0%
of respondent
Total Frequency 21 4 100 125
% within Category 100.0% 100.0% 100.0% 100.0
of respondent %
Table 4.3 present’s experience of respondent concerning the performance public
projects; respondents who had experience below 2 years were 15(12.0%)of all
respondents, between 2 to 6 years were 16(12.8%)of all respondents, 7 to 11 years
were 44(35.2%)of all respondents, 12 to 16 years were 45(36.0%) of all respondents
and above 17 years were 5(4.0%) respondents. This implies that the study was able to
analyze the level of understanding from people with different experience.
4.6 Study Results
This section analyses the main findings of the study, which ware presented as per
specific objective. Mainly the study focused on three objectives which are to:
identifying effects of procurement procedures on cost performance of public project,

33
examining effects of procurement procedures on quality performance of public project
and determining effects of procurement procedures on time performance of public
project. The quantitative data are presented in tables while qualitative data are
presented in summary. Data were analyzed using descriptive analysis and multiple
linear regressions in all objectives.
4.7 Procurement Procedures of Public Projects
The study used descriptive analysis in identifying the procurement procedures that
were involved in road construction project. Mainly the study focused on procurement
officers and road constructors within the study area. The variables ware presented in
Likert scale with possible answers ranging from 1=Very low(VL), 2=Low(L);
3=Average(A), 4=High(H) and 5=Very high(VH). Results are presented in Table 4.4
Table 4.4: Procurement Procedures

Variables VL L A H VH N Mean
Formation of construction team 3 1 4 4 12 25 3.71
Development of tender and 5 0 3 10 7 25 3.48
evaluation criteria
Prequalification questionnaire 1 4 7 5 8 25 3.33
Issuing of tender 2 4 3 8 8 25 3.38
Pre-tender meetings/receiving 2 2 6 11 4 25 3.43
tender application
Short-list bidders 1 2 1 7 14 25 3.52
Tender shortlist presentation 5 2 2 6 10 25 3.29
Selection of the best bidder 1 5 4 8 7 25 3.33
Negotiation with a best bidder 1 5 2 6 11 25 3.62
Contract award to the best bidder 3 4 3 10 5 25 3.29
Inspection of the project 5 0 3 6 11 25 3.71
Receive or rejection of the project 2 5 3 8 7 25 3.43
Mean Interpretation
4.21-5.00 = Very highly used
3.41-4.20= Highly used
2.61-3.40= Moderate used
1.81-2.60= Low used
1.00-1.80= Very low used

34
Table 4.4 presents the results of procurement procedures in frequencies and mean
values. Formation of construction team was highly used in construction projects
(3.71), development of tender and evaluation criteria highly used (3.48),
prequalification questionnaire was moderately used (3.33), issuing of tender was
moderately used 3.38, pre-tender meetings/receiving tender application was highly
used (3.43), short-list bidders was highly used (3.33), tender short- listing presentation
was moderately used (3.29), selection of the best bidder was moderately used (3.52),
negotiation with a best bidder was highly used (3.48), contract award to the best
bidder had was moderately used(3.29), inspection of the project was highly used
(3.29) and lastly receiving or rejecting the project was highly used (3.43).
4.7.1 Procurement Procedures on Cost Performance of Public Projects
The first objective of the study aimed at identifying procurement procedures on cost
performance of public project. Data for this objective were obtained from procurement
officers and road constructors using questionnaire. The variables ware presented in
Likert scale ranging from 1=Very Low (VL), 2=Low (L); 3=Average (A), 4=High (H)
and 5=Very High (VH). The findings were subjected to descriptive analysis and
regression analysis. Descriptive results are shown on the Table 4.5 and the regression
analysis is presented in Table 4.6.
Table 4.5: Cost Performance of Public Projects

Responses Frequency Percentage
Very low 8 32
Low 0 0
Average 1 4
High 15 60
Very High 1 4
Total 25 100
35
Those who graded very high were 8 officers presenting 32% of the all officers, those
average response was graded with 1 respondent presenting 4% of the all officers, High
response was graded with 15 officers presenting 60% of all officers and very high
response was graded with 1 respondent presenting 4% of the all officers.
Researcher went ahead in analyzing how procurement procedures influence cost
performance in Temeke municipality. This was done through multiple linear
regression analysis. Table number 4.6 has the results of that regression analysis.
Table 4.6: Effect of Procurement Procedures on Cost

Model Unstandardized Std.Coefficients t Sig.
Coefficients
B Std. Beta
Error
(Constant) 2.152 1.955 1.101 0.303
Formation of construction 0.201 0.576 0.197 0.349 0.736
team
Development of tender and 0.224 0.562 0.200 0.399 0.700
evaluation criteria
Prequalification questionnaire 0.364 0.584 0.283 0.623 0.551
Issuing of tender 0.448 0.559 0.388 0.801 0.446
Pre-tender meetings/receiving 0.815 0.839 0.663 0.971 0.360
tender application
Short-list bidders 1.768 0.740 1.376 2.389 0.044
Tender shortlist presentation 0.231 0.654 0.247 0.353 0.733
Selection of the best bidder 1.817 1.247 1.999 1.458 0.183
Negotiation with a best bidder 2.049 0.867 2.167 2.364 0.046
Contract award to the best 0.623 0.978 0.499 0.637 0.542
bidder
Inspection of the project 0.619 0.740 0.592 0.837 0.427
Receive or rejection of the 0.724 0.519 0.700 1.394 0.201
project
R-squire interpretation
0.1-0.2= Very weak correlation
0.21- 0.4= Weak correlation
0.41- 0.6= Moderate correlation
0.61- 0.8= Strong correlation
0.81- 1.0= Very strong correlation
R-squire=0.573 Adj R-squire= 0.670
Source: Field data

36
The study results revealed that procurement procedures used by Temeke municipality
has moderate correlation with cost performance in road construction project (R-
squire=0.573). Further it was detected that procurement procedures used by Temeke
municipality could contribute up to 67%of the cost performance of road construction
(Adj R-squire= 0.670). It was found that procurement factors which could have
significant power to predict cost performance in road construction was short listing of
bidders (p-value=0.44) and negotiation with best bidder (p-value=0.46). The
remaining factors could not statistically significantly predict cost performance in road
construction since their probability values were found to be greater than0.05.Below is
the discussion of the obtained results relating to short listing of bidders and
negotiation with best bidders.
4.7.1.1 Short Listing of Bidders
The study discovered that project manager and the construction committee had the
authority of short listing the applications, which were requested for the construction
project. Also the construction committee selects the applicant who is able to undertake
the project at reasonable costs. One among the officer who was interviewed
concerning effect of procurement procedures on cost performance confirmed that;
“It’s true that we receive many applications

concerning construction project but we have the
tendency of short listing the bidders who will suit for
the project mainly focusing on the actual costs that
would be required in constructing the project”.
Aputo (2017) declared that short listing allows the project manager in making
selection of the best bidder that could be used in the construction project. The project
manager is able to select suppliers or contractors focusing in minimizing the

37
construction work. Assessment is conducted on the shortlisted bidders so as to
confirm if they fit with the project requirements. The study further states that the
construction committee needs to short list the best supplier so as to obtain best results
of the project. if constructors failure to short list the bidder’s results into construction
problems which leads to poor performance this was cited by (Toor and Ogunlana
(2008).
4.7.1.2 Negotiation with Best bidder
The study revealed that negation is one of the best ways that could be used in reducing
cost of construction. One among the officer who was interviewed reported that;
“It is a good thing that we get chance to negotiate with our

bidders before selecting the best bidder; bidders are able to
make estimations of the actual costs that would be used in
road construction projects. After that the construction
committee gets to identify the best bidder who suits for the
project construction”
Marie (2018) highlights that; the Tanzanian procurement procedures necessitate
contract negotiation in projects where discussion between the parties is considered so
as to reach agreement. Also the study reveals that it is through negotiation that the
committee gets to identify bidder’s intention towards the project.
4.7.2 Procurement Procedures on Quality Performance of Public Project
The second objective examined effect of procurement procedures on quality
performance of public project. The objective focused on LGA and Mbagala residents.
Table 4.7 presents results obtained from the LGA officers whereby; the results are
presented in Likert scale ranging from 1=Very low (VL), 2=Low (L); 3=Average (A),
4=High (H) and 5=Very high (VH).

38
Table 4.7: Quality Performance of Public Project

Variables Frequency Percent
Very low 0 0.0
Low 5 23.8
Average 5 23.8
High 7 33.3
Very High 4 19.0
Total 21 100.0
There was no respondent who reveled that procurement procedures on quality
performance was very low presenting 0% of all officers, however 5 officers reported
the procurement procedure on quality performance was low presenting 23.8% of all
officers, 5 officers neither agreed nor disagreed on quality performance presenting
23.8% of all officers, 7 officers responded on high performance presenting 33.3% of
all officers while 4 officers responded very high presenting 19% of all officers.
Table 4.8: Effect of Procurement Procedures on Quality Performance

Model Unstandardized Std. t Sig.
Coefficients Coefficients
B Std. Error Beta

(Constant) 0.049 0.455 0.108 0.917
Formation of construction team 0.138 0.134 0.187 1.033 0.332
Development of tender and evaluation criteria 0.106 0.131 0.130 0.812 0.440
Pre-tender meetings/receiving tender application 0.190 0.172 0.204 0.106 0.301
Contract award to the best bidder 0.375 0.228 0.413 0.647 0.138
Receive or rejection of the project 0.119 0.121 0.159 0.989 0.352
39
Procurement procedures used by Temeke municipality has very strong correlation
with quality performance in road construction project (R-squire=0.956). Additional it
was detected that procurement procedures used by Temeke municipality could
contribute up to 89.1% of the quality performance of road construction (Adj R-squire=
0.891). It was established that procurement factors which could have significant
power to predict quality performance in road construction was shortlist bidders (p-
value=0.036) the remaining factors could not statistically significantly predict quality
performance in road construction since their probability values were found to be
greater than 0.05.
4.7.2.1 Short list of Bidders
Short listing of bidders has been discovered to the best procedure that helped in
quality performance of public projects in Temeke municipality. Through short listing
of bidders TLG was able to select best constructor of road construction. One among
the officer who was interviewed concerning procurement procedures on quality
performance stated that;
“During short listing the best bidders are selected in terms of

qualification materials to be used and experience all this aspect
was found to be considered in selecting the bidders”.
However Jeptepkeny (2015) asserts that during bidder short listing the construction
committee needs to consider the necessary requirement that needs to be achieved
within the project. A list of requirement is checked across the bidders requirement by
doing this the TLG is able to achieve the requested item. Agency theory believes that;
selecting the best bidder as the agent leads to good performance of the project
activities since the bidder act on behalf of the principle (Eisenhardt, 1989).
40
4.7.2.2 Resident’s Response on Quality Performance on Public
However the study was also concerned in knowing views of Mbagala residents in
Temeke municipality. Descriptive analysis was used to determine quality performance
of roads constructed. Results were graded in Likert scale ranging from Very low (VL),
Low (L), Average (A), High (H), and Very High (VH). Results are presented in Table
4.9.
Table 4.9: Residents Response on Quality Performance on Public

Variables VL L A H VH N Mean
Road signs and symbols 16 26 17 6 35 100 3.18
Pedestrian Passage 23 16 8 32 21 100 3.12
Smoothness of the road 25 13 12 28 22 100 3.09
Roads Lights 17 27 13 20 23 100 3.05
Sharp corners 9 25 14 32 20 100 3.29
Mean Interpretation
4.21-5.00 = Very high performance
3.41-4.20= Highly performance
2.61-3.40= Moderate performance
1.81-2.60= Low performance
1.00-1.80= Very low performance
Source: Field data
Table 4.9 above revels that Road signs and symbols were moderate performed with
mean score of 3.18, pedestrian passage was moderately performed with mean score of
3.12, smoothness of the road was moderately performed with mean score of 3.09,
roads lights was moderately performed with mean score of 3.05, Sharp corners was
moderately performed with mean score 3.29.
The study discovered that the roads constructed within the study area considered
important requirement for the roads, which run to the urban districts and the areas
around the intersection. These roads were well marked with center lines and margin
41
line, dotted lines and zebra stripes. One among the resident who was interviewed
reveled that;
“The roads that are attached to the main roads are having the
road lights, symbol and marks this have been very useful to road
pedestrians in realizing identifying the areas that they will be safe
while using the roads”
However the study also revealed that roads running through the streets had few road
signs, pedestrian pathways and the road lights. Owiti (2017) reports that a quality road
needs to have the pedestrian passages so as to reduce unnecessary accidents that occur
unexpectedly. Below are the answers that were reveled from the Mbagala residents of
Temeke municipality;
“TLG has tried it best in constructing good roads that are used in
facilitating transportation. But it seems that few of the roads tend
to lack the road marks, signs and lights that guide road
pedestrian on the areas that need be used.
4.7.3 Procurement Procedures on Time Performance of Public Project
The third objective of the study aimed at identifying procurement procedures on time
performance of public project. Data for this objective was obtained from TLG
officers. The response mode had Lirket scale ranging from 1=Very low, 2=Low;
3=Average, 4=High and 5=very high. The findings were subjected to descriptive
analysis and regression analysis. Descriptive results are shown on the Table 4.10 and
the multiple linear regression analysis is reveled in Table 4.11.
Those who responded procurement procedures affects time management very low was
1 respondent presenting 4% of the all officers, 7 graded at low effect presenting
28%of the all officers, 5 officers neither agreed nor disagreed presenting 20% of all
42
officers1 officer graded high effect presenting 4% of all respondent and lastly 11
officers graded very high presenting 44% of all officers. Researcher went ahead and
analyzed how procurement procedures influence time performance within the study
area.
Table 4.10: Procurement Procedures on Time

Response Frequency Percent
Very low 1 4
Low 7 28
Average 5 20
High 1 4
Very High 11 44
Total 25 100
Table 4.11: Effect of Procurement Procedure on Time Performance

Model Unstandardized Stad. t Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) 2.726 1.622 1.681 0.131
Formation of construction team 1.883 0.719 2.058 2.619 0.031
Development of tender and 0.268 0.466 0.247 0.576 0.581
evaluation criteria
Pre-tender meetings/receiving 0.502 0.696 0.422 0.721 0.491
tender application
Contract award to the best 0.598 0.811 0.495 0.737 0.482
bidder
Receive or rejection of the 0.803 0.430 0.802 1.866 0.099
project
43
Procurement procedures used by Temeke municipality has strong correlation with
time performance in road construction project (R-squire=0.687). Further it was detected
that procurement procedures used by Temeke municipality could contribute up to
71%of the time performance of road construction (Adj R-squire= 0.71). It was found
that procurement factors, which could have significant power to predict time
performance in road construction, were inspection of the project (p-value=0.048),
formation of procurement team (p-value=0.031). The remaining factors could not
statistically significantly predict time performance in road construction since their
probability values were found to be greater than 0.05.
4.7.3.1 Formation of Construction Team
Forming a procurement team was considered to be important in saving time of the
project. It’s believed that a good team work together and gives good results. Good
formation of construction team had a great impact in making selection of best bidders
who best qualify for the job offered. One among the officer who was interviewed
concerning effect of procurement procedure on time performance of public project
reveled that;
“The construction team is responsible in setting the actual time

that the project is expected to be completed focusing on the scope
of the project. If the construction committee fails to address the
right time to complete the project then will results into mistakes”
The study connects formation of construction team with theory of construction
focusing on time performance in the essence that formation of construction team is
responsible in amending the contract that would involve commencement of the
project. Barnett (1986) asserts that contract theory is applicable when there is, hidden
44
information or when there is contractual incompleteness. Also it gives explanations on
how people and organization create and develop legal agreements as well as how
parties with conflicting interests build formal and informal contracts.
4.7.3.2 Inspection of the Project
Project inspection was identified to have good performance in time management. The
study identified that it is through inspection the construction committee is able to
identify the progress and the time that would be required to finish the task. One among
the officer who was interviewed concerning effect of procurement procedure on cost
performance of public project reported that;
“Doing inspection in projects allows project manager to identify

the percentage of work that has been conducted basing on the
agreement moreover; it is through inspection that we are able to
identify the mistakes that have been made in the project.”
Theory of performance management believes that performance could be achieved
when the tribulations are well identified. This happens to be true during inspection of
the project. At this point problems are early identified before commencement of the
project. However inspection was found out be effective in speeding up the activities
that were supposed to be accomplished according to the agreement.

45
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1 Introduction
This chapter explains on gives the summary of the results obtained in chapter four
basing on the specific objectives conclusion of the study, recommendations and area
for further studies.
5.2 Summary of the Study
The study aimed at determining effect of procurement procedures on performance of
public project in Temeke municipality. Mainly the study findings were obtained from
primary source of information and secondary source of information. Procurement
officers and the road constructors through the questionnaires while interview methods
was used to Mbagala residence in answering quality of the road. Descriptive analysis
and regression analysis was applied in determining the effect of procurement
procedures on cost performance. The study focused on three specific objectives which
are:- what are the effects of procurement procedures on cost performance of public
project? What are the effects of procurement procedures on quality performance of
public project? And what are the effects of procurement procedures on time
performance of public project?
5.2.1 Procurement Procedures on Cost Performance of Public project
Using descriptive analysis it was found that; procurement procedure was highly
effective on cost performance of public projects in Tameke municipality. On the other
side regression analysis confirmed that the procurement procedures used in Temeke
46
municipality has moderate correlation with cost performance in road construction
project. Also it was detected that procurement procedures used by Temeke
municipality had high contribute on cost performance of road construction in Temeke
municipality Meanwhile short listing of bidders and negotiation with best bidder had
significant power in predicting cost performance of road construction while the
remaining factors were discovered not statistically predict cost performance in road
construction since their probability values were found to be greater than 0.05.
5.2.2 Procurement Procedures on Quality Performance of Public Project
Using descriptive analysis it was found that procurement procedure highly contributed
to quality performance of public projects in Temeke municipality. On the other side
the study involved the Mbagala residence of Temeke Municipality to grade the quality
of roads contracted in Temeke municipality and it was revealed that roads that were
constructed within the streets areas failed to have the road lights symbols and signs
and the pedestrian passages.
However the regression analysis revealed that the procurement procedures used in
Temeke municipality had very strong correlation with quality performance in road
construction project constructed in Temeke municipality. Additional it was detected
that procurement procedures used by Temeke municipality highly contributed to
quality performance of road construction. Moreover shortlist bidders had significant
power to predict quality performance in road construction the remaining factors could
not statistically significantly predict quality performance in road construction since
their probability values were found to be greater than 0.05.

47
5.2.3 Procurement Procedures on Time Performance of Public Project
using descriptive analysis it was realized that procurement procedures very highly
leads to time performance of public projects also the regression analysis revealed that
procurement procedures used by Temeke municipality has strong correlation on time
performance in construction project Temeke municipality. However it was detected
that; procurement procedures used by Temeke municipality had high contributions on
time performance of road construction significant power to predict time performance
in road construction were inspection of the project and formation of procurement team.
The remaining factors could not statistically significantly predict time performance in
road construction since their probability values were found to be greater than 0.05.
5.3 Conclusion
Finally the study concludes that performance of public project in Temeke municipality
was highly facilitated due to the contribution of procurement procedures on cost
performance, quality performance and time performance on public projects
constructed in Temeke municipality.
5.4 Recommendations
In order to improve project quality then the study recommends Temeke municipality
to put more efforts in short listing bidders so as to have good performance.
However the study recommends that cost effectiveness could be achieved by
improving negation system through paying attention on the bidder’s requests.
Lastly the study insists on improvement of project inspection so as to identify the
course of delay in project completion.

48
5.4.1 Area for Further Studies
Since the study was conducted in one ward within the country the study suggests that
more research should be conducted in other areas that involves public project so as to
widen understanding of the readers.

49
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Principles and Required Professional Skills. Uganda: Uganda Management
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Djankov, S., Islam, A and Saliola, F. (2016). Public Procurement Policy. Research
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Erick, K. (2016). Effect of Procurement Procedures on Organizational Performance.
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in India and Indonesia. American Economic Journal , Vol: 8., Issue: (3)., PP:
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Jeptepkeny, P. (2015). Effects of Procurement Procedures On Project Performance.
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Julius, D and Gershon, D. (2019). Effects of Procurement Strategies and Contract
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Lok, C., Abdul, R and Abdul, H. (2015). The practice of time management on
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Lumbanga, M. (2019). Annual Performance Evaluation Report For Financial Year
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53
APPENDICES
Appendix 1: Questionnaire to procurement officers and road constructor
Section A: Introduction
This survey-questionnaire is designed to collect data on the Effect of Procurement
Procedures on Performance of Public Project. This questionnaire is designed
specifically to collect academic data. And it won’t be published in any place without
your approval. Please select your appropriate choice. Selecting the first choice will
require you to complete the questionnaire.
Section B: General information.
The researcher would like to know the general information of the respondent. Please
tick the correct choice
Employment category Procurement officer

Road constructors
Your age <18 years
19-29years
30-40years
41-51years
52-60 years
Your level of education Diploma
Bachelor degree
Post-graduate degree
Experience in job location < 2 years
2-6 years
7-11 years
12-16 years
>17 years
Section C: study questions
The study wants to assess extent to which the following procurement procedures have
been used in the road construction projects. Please indicate how you would rate
54
usability of the mentioned procurement procedures in (Mbagala ward) Temeke
Municipality.
S/N Procurement procedures Used Used Used Used Used

Very rarely sometime often always
rarely
i Formation of construction 1 2 3 4 5
team
ii Development of tender and 1 2 3 4 5
evaluation criteria
iii Prequalification 1 2 3 4 5
questionnaire
iv Issuing of tender 1 2 3 4 5
v Pre-tender 1 2 3 4 5
meetings/receiving tender
application
vi Short-list bidders 1 2 3 4 5
vii Tender shortlist 1 2 3 4 5

presentation
viii Selection of the best bidder 1 2 3 4 5
ix Negotiation with a best 1 2 3 4 5

bidder
x Contract award to the best 1 2 3 4 5
bidder
xi Inspection of the project 1 2 3 4 5
xii Receive or rejection of the 1 2 3 4 5

project
The study wants to assess performance of road construction project in (Mbagala ward)
Temeke Municipality. You have been given variable of project performance; please
show how you would judge performance of road construction in this municipality by
referring to the variables given.
Variables of project performance Very- Low Average High Very-

low high
Cost of road construction 1 2 3 4 5
Time taken to complete road construction 1 2 3 4 5
Quality of road construction 1 2 3 4 5
55
Appendix 2: Questionnaire to Mbagala Residents
Section A: Introduction
This survey-questionnaire is designed to collect data on the EFFECT OF
PROCUREMENT PROCEDURES ON PERFORMANCE OF PUBLIC
PROJECT. This questionnaire is designed specifically to collect academic data. And
it won’t be published in any place without your approval. Please select your
appropriate choice. Selecting the first choice will require you to complete the
questionnaire.
Section B: General information.
The researcher would like to know the general information of the respondent. Please
tick the correct choice
Your age <18 years

19-29years
30-40years
41-51years
52-60 years
Your level of education Diploma
Bachelor degree
Post-graduate degree
For how long have you being staying in Mbagala < 2 years
resident Temeke municipality 2-6 years
7-11 years
12-16 years
>17 years
Section C: General Information.
The study wants to assess performance of road construction project in Temeke
Municipality. You have been given variable of project performance; please show how
you would judge performance of road construction in this municipality by referring to
the variables given.

56
Variables of project Very- Low Averag High Very-high

performance low e
Road signs and symbols 1 2 3 4 5
Pedestrian Passage 1 2 3 4 5
Smoothness of the road 1 2 3 4 5
Roads Lights 1 2 3 4 5
Sharp corners 1 2 3 4 5
THANK YOU
57
Appendix 3: Interview to procurement officers
Which procurement procedures do you prefer often in achieving cost performance
use in road construction projects?
Which procurement procedures do you prefer often in achieving quality performance
Which procurement procedures do you prefer often in achieving time performance
THANK YOU
58
Appendix 4: Interview to Mbagala Residents
What factors do you consider a quality road to have?
_____________________________________________________________________
_____________________________________________________________________
____How do you judge the quality of roads constructed in Temeke municipal?
_____________________________________________________________________
_____________________________________________________________________
____How do you explain on the smoothness of the road surface
_____________________________________________________________________
_____________________________________________________________________
____How can you speak about the width of each lane on the road constructed in
Temeke municipal?
_____________________________________________________________________
___________________________________________________________________
How can you explain about road lights and road signs in Temeke municipal?
_____________________________________________________________________
___________________________________________________________________
THANK YOU
59
Appendix V: Research Clearance Letter

DIRECTORATE OF POSTGRADUATE STUDIES
P.O. Box 23409 Tel: 255-22-2668992/2668445

Dar es Salaam, Tanzania ext.2101
http://www.openuniversity.ac.t Fax: 255-22-2668759
z E-mail: dpgs@out.ac.tz
Our Ref: PG201800272

Date: 06th December 2019
Rachel H. Msanga
Dar es Salaam
RE: RESEARCH CLEARANCE

The Open University of Tanzania was established by an act of Parliament No. 17 of
1992, which became operational on the 1st March 1993 by public notice No. 55 in the
official Gazette. The act was however replaced by the Open University of Tanzania
charter of 2005, which became operational on 1st January 2007. In line with the later,
the Open University mission is to generate and apply knowledge through research.
To facilitate and to simplify research process therefore, the act empowers the Vice
Chancellor of the Open University of Tanzania to issue research clearance, on behalf
of the Government of Tanzania and Tanzania Commission for Science and
Technology, to both its staff and students who are doing research in Tanzania. With
this brief background, the purpose of this letter is to introduce to you Rachel H.
Msanga, Reg No: PG201800272 pursuing Master Degree of Project Management
(MPM). We hereby grant this clearance to conduct a research titled: “Effect of
Procurement Procedures on Performance of Public Projects: The Case of Road
Construction in Temeke Municipality in Tanzania”, she will collect her data in Dar
es Salaam, Tanzania from 10th December 2019 to 7th February 2020.
In case you need any further information, kindly do not hesitate to contact the Deputy
Vice Chancellor (Academic) of the Open University of Tanzania, P.O. Box 23409,
Dar es Salaam. Tel: 022-2-2668820. We lastly thank you in advance for your assumed
cooperation and facilitation of this research academic activity.
Yours sincerely,
Prof. Hossea Rwegoshora

For: VICE CHANCELLOR

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EFFECT OF PROCUREMENT PROCEDURES ON PERFORMANCE OF

PUBLIC PROJECTS: THE CASE OF ROAD CONSTRUCTION IN TEMEKE

RACHEL HERIEL MSANGA

A DISSERTATION SUBMITTED IN PARTIAL FULFILMENT OF THE

the Open of University of Tanzania a dissertation entitled: “Effect of Procurement

Procedures on Performance of Public Projects: The Case of Road Construction in

Temeke Municipality in Tanzania”, in partial fulfillment of the requirements for the

Degree of Masters in Project Management (MPM) of the Open University of

Dr. France Shayo

No part of this dissertation may be reproduced, stored in any retrieval system, or

transmitted in any form by any means, electronic, mechanical, photocopying,

recording or otherwise without prior written permission of the author or the

Open University of Tanzania in that behalf.

University for a similar or any other degree award.

I dedicate this work to my lovely Children Dionis and Doreen.

enumerated. Their contributions are sincerely appreciated and gratefully

acknowledged. However, I would like to express their deep appreciation and

indebtedness particularly the following;

I express my sincere thanks to Dr France Shayo, my research Supervisor for his

guidance and support which helped me to complete my research in due time.

friends and others to encourage me to the highest peak and to provide me an

inspiration, With due regards I express my gratitude to them

The study examined effects of procurement procedures on performance of public

projects; study focused on the road constructed in Mbagala ward, Temeke

municipality specifically the study aimed at identifying effects of procurement

procedures on cost performance of public project, examined effects of procurement

procedures on quality performance of public project and determining effects of

procurement procedures on time performance of public project. Data were obtained

effective on cost performance of public projects, while regression analysis confirmed

contributed to quality performance of public projects. Further regression analysis

procurement procedures on cost performance, quality performance and time

Keywords: Procurement procedures, Quality performance, Cost performance and

LIST OF TABLES ................................................................................................... xii

LIST OF FIGURES ................................................................................................ xiii

LIST OF ABBREVIATIONS ................................................................................ xiv

CHAPTER ONE ........................................................................................................ 1

1.1 Overview .......................................................................................................... 1

1.2 Background of the Study .................................................................................. 1

1.3 Statement of the Problem ................................................................................. 3

1.4 General Objective ............................................................................................. 4

1.4.1 Specific Objectives ........................................................................................... 4

1.5 General Question .............................................................................................. 4

1.5.1 Specific Questions ............................................................................................ 4

1.6 Significance of the Study ................................................................................. 5

1.7 Scope of the Study ........................................................................................... 5

1.8 Organization of the Research Proposal ............................................................ 5

CHAPTER TWO ....................................................................................................... 7

LITERATURE REVIEW ......................................................................................... 7

2.1 Introduction ...................................................................................................... 7

2.2 Conceptual Definitions..................................................................................... 7

2.2.1 Procurement ..................................................................................................... 7

2.2.2 Public Project ................................................................................................... 8

2.3 Theoretical Literature Review.......................................................................... 8

2.3.1 The Agency Theory.......................................................................................... 9

2.3.2 Performance Management Theory ................................................................. 10

2.3.3 Contract Theory ............................................................................................. 10

2.4 Empirical Literature Review .......................................................................... 11

2.4.1 Effects of Procurement Procedures on Cost Performance ............................. 11

2.4.2 Effects of Procurement Procedures on Quality Performance ........................ 13

2.4.3 Effects of Procurement Procedures on Time Performance ............................ 15