Procurement contract risks management and performance of force account construction projects in local government authorities in Tanzania

Abstract

This study assesses the influence of procurement contract risk management on the performance of Force Account (FA) construction projects within Local Government Authorities (LGAs) in Tanzania. Despite the increasing adoption of FA procurement as a cost-saving and efficiency-enhancing approach, performance concerns related to delays, cost overruns, and quality issues persist. The research aims to assess specifically how supply risk management, internal control systems for procurement, procurement contract administration, and regulatory frameworks enhance the performance of FA construction projects. A positivist research philosophy with a quantitative research approach was adopted. Data were collected from 318 members of FA committees across 120 primary schools in selected LGAs in Dodoma region using structured questionnaires. Structural Equation Modeling (SEM), both Covariance-Based SEM (CB-SEM) and Partial Least Squares SEM (PLS-SEM), was applied to test hypotheses and examine relationships among latent constructs. The findings reveal that supply risk management significantly influences the timely completion of FA construction projects. This is because multi-sourcing, effective communication with suppliers, effective supplier selection, and post-qualification are key attributes of supply risk management that play a crucial role in enhancing the performance of these projects. Similarly, the findings revealed that attributes of procurement internal control systems, such as stock control, record keeping, and authorisation processes, have significant and positive relationships with the cost-effectiveness of FA construction projects. The study failed to establish the link between the segregation of duties and the cost-effectiveness of FA construction projects. In addition, the study found that procurement contract administration, including risk management, relationship management, dispute management, and monitoring and control, is a positive and significant factor in explaining the quality attainment of FA construction projects. Notably, risk management is the strongest predictor of quality attainment of FA construction projects. Additionally, the study confirms that the regulatory framework strengthens the relationship between the procurement internal control system and procurement contract administration with the performance of FA construction projects. Therefore, procurement contract risk management, as moderated by the regulatory framework, plays a significant role towards the performance of FA construction projects. The study further concludes that procurement contract risk management enhances the performance of FA construction projects. xii Based on the comprehensive findings of this study, several recommendations are offered to enhance the performance of FA construction projects in LGAs in Tanzania. These recommendations are intended for policymakers, procurement practitioners, FA committee members, and other stakeholders involved in public sector construction and procurement oversight. Policymakers should integrate principles of supply risk management, internal control systems, and procurement contract administration tailored to the FA approach. Also, Public Procurement Regulatory Authority (PPRA) should strengthen its inspection and audit systems to monitor FA construction projects more closely, ensuring compliance with procurement laws, quality standards, and contract terms. LGAs should institutionalise effective internal control mechanisms, such as clear approval protocols, real-time stock management, and effective record-keeping, to enhance cost control and transparency in FA projects.