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Effects of Contract Management on Project Performance at the Road Development Agency

Author

Listed:
  • Mwenya, Mwenya

    (University of Zambia)

  • Kasongo, Richard Mwale

    (The University of Zambia)

Abstract

The study sought to establish the effects of contract management on project performance at the Road Development Agency in Zambia. It was anchored in institutional theory and the iron triangle theory. Contract management in procurement involves overseeing contracts with suppliers and buyers to ensure adherence to obligations outlined in the Public Procurement Act No. 8 of 2020 as amended by the Public Procurement (Amendment) Act No. 17 of 2023 and Statutory Instrument No. 30 of 2022 (Public Procurement Regulations, 2022) as well as the terms and conditions outlined in the contract. Contract management is vital for managing costs, ensuring quality, meeting deadlines, and resolving disputes. Zambia, like many African countries, faces challenges with incomplete construction projects, affecting economic growth linked to the sector. Although research exists on project performance in Zambia, there is a lack of understanding on how contract management affects project performance in Zambia's public sector. This study aimed to establish the effects of contract management on project performance at the Road Development Agency in Zambia. The study used a cross-sectional study design and quantitative data from structured questionnaires (n = 31). Descriptive statistics and multivariable linear regression were used for quantitative analysis. Compliance with contractual obligations (93.6%) emerged as the most prominent performance objective, followed by timelines, quality standards, and cost (each 83.9%). Contract management practices were widely adopted (mean = 4.52, SD = 0.89), with compliance, transparency, and professionalism highly reported. Quality performance scored highest (mean = 3.67, SD = 0.64), followed by cost (mean = 3.00, SD = 0.71), while time performance was lowest (mean = 2.63, SD = 0.67), indicating challenges with delays. Regression analysis showed no statistically significant association between contract management practices and project performance (p > 0.05). While contract management is well established at the Road Development Agency, its impact on project performance is limited by challenges in time and cost control. Strengthening monitoring systems, enhancing managerial capacity, and promoting integrated management approaches are essential to improve project outcomes.

Suggested Citation

  • Mwenya, Mwenya & Kasongo, Richard Mwale, 2026. "Effects of Contract Management on Project Performance at the Road Development Agency," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(3).
    • Handle: RePEc:cwk:ajocsk:2026-98
    DOI: 10.59413/ajocs/v7.i3.28
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    References listed on IDEAS

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    1. Milind Dawande & Ganesh Janakiraman & Anyan Qi & Qi Wu, 2019. "Optimal Incentive Contracts in Project Management," Production and Operations Management, Production and Operations Management Society, vol. 28(6), pages 1431-1445, June.
    2. Atsushi Iimi, 2020. "Performance-Based Road Contracts in Zambia," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(1), pages 107-129, August.
    3. Brian Forbes & Malcolm Brady, 2019. "Ex-post service contract performance management," International Journal of Business Performance Management, Inderscience Enterprises Ltd, vol. 20(2), pages 130-144.
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    Keywords

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    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis

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