Influence of contractor evaluation criteria on procurement performance in the state department of roads in the upper eastern region, Kenya

Abstract

The performance of the contractors significantly influences the quality, time line, and financial aspect of road building works. This research study aimed at establishing the influence of various criteria used in assessing contractors upon performance in procurements with respect to the financial ability, technical capacity, experience, and organizational ability of the contractors in the State Department of Roads in the Upper Eastern Region of Kenya. A descriptive study was employed on a sample of 93 individuals, who were selected, and all of them worked in management positions in three parastatals in Kenya, including the Kenya National Highways Authority (KENHA), which had 30 employees, the Kenya Urban Roads Authority (KURA) had 23 employees, and the Kenya Rural Roads Authority (KERRA) had 40 employees. The complete sample in the research of 93 respondents took part in the census. Primary data were collected using drop and pick later type of questionnaires where the respondents were allowed a week to complete the questionnaires at their convenience after which they were to be returned and analysed. The quantitative and qualitative data were obtained. Quantitative data was evaluated using descriptive and inferential statistics including means, percentages, ranges, correlation coefficients, standard deviations and frequencies, whereas the content analysis was employed to search themes and stories in qualitative data. The analysis was conducted with the help of SPSS (Version 22) and the relationship between independent variables and the efficacy of the procurement was assessed according to a regression model. The mean results of 3.93 and 4.29 respectively revealed that the factors of financial capability such as cash flow management and bonding capacity have great impacts to the procurement performance. Technical capability is also crucially necessary, and particularly the competency of the workforce (mean = 4.98). Although the variable of organization capability shows varying strength reflecting the importance of scalability and flexibility, there is significant correlation between contractor experience and performance (mean = 4.60) (mean = 4.46). In conclusion, despite the bring in different effectiveness in terms of the organizational capabilities, financial stability, and experience in technical expertise are so essential in improving the procurement out-turn. The technical capacity of the contractor with a general mean score of 4.98 was the highest impact factor on procurement performance. Where the level of financial capability and the experience that was involved was moderate in its significance, the least significant but yet significant factor was where it came to the organizational capability of the contractor. State Department of Roads ought to focus on well experienced contractors, promote technical education as well as breakthroughs in technology, narrow down on financial vetting mechanisms, and review organizational flexibility. It can be studied in the future the impact of regulatory rules on the work of contractors and the efficiency of the procurement process using innovative technologies such as blockchain and artificial intelligence (AI).