THE DETERMINANTS OF PROCUREMENT CONTRACT MANAGEMENT ON ORGANIZATION PERFORMANCE
Abstract
A contract is a written or oral legally -binding agreement between the parties identified in the agreement to fulfil the terms and conditions outlined in the agreement. Contract management refers to the business processes that manage the creation, implementation, and evaluation of contracts to maximize business performance and minimize risk. Contract management is the process that ensures both parties to a contract fully meet their respective obligations in an efficient and effective way in order to deliver the business and operational objectives required from the contract thus providing value for money. Legally binding contracts determines the stakeholder’s links of a company, pricing structures, job scope, rights and responsibilities, project timelines, guarantees etc. Since agreements are critical, efficient contract management can significantly enhance organizations' efficiency. Likewise, if the company is not well structured, it could expose the enterprise to different operating and economic hazards and influence the end result. Despite the importance of contract management amongst the procurement authorities, most organizations in the world over still face uncountable challenges in realising its importance. The study thus sought to highlight the key determinants of procurement contract management and their effect on organization performance. Specifically the study sought to establish the role of compliance of contract conditions, contract documentation, cost management and contract monitoring on procurement contract management in organization performance. This study adopted descriptive research design. The target population of this study comprised of 25 procurement staff, 25 finance staff and 20 management from the internal and external customers of organization set up.
Key Words: Contract Management, Contract Documentation, Contract Monitoring
CITATION: Ochola, J. O., & Kitheka, S. S. (2019). The determinants of procurement contract management on organization performance. The Strategic Journal of Business & Change Management, 6 (4), 1090 – 1098
Full Text:
PDFReferences
Aberdeen Group, 2006. Aberdeen Group, Contract Management Benchmark Report Procurement Contracts Maximizing compliance and supply performance, March 2006. Available athttp://aberdeen.com/[accessed 10 April 2013].
Aluonzi, G., Oluka, P., & Nduhura, A. (2016). Contract Management and Performance of oad Maintenance Projects : The Case of Arua Municipality. Universal Journal of Management, 4(10), 550–558.
Angelov, S., 2006.Foundation of B2B Electronic Contracting, Technische Universite it Eindhoven, Proefschrift.
Cropper, S. (2008).The Oxford Handbook of Inter-Organizational Relations. Oxford New York: Oxford University Press.
Camén, C., Gottfridsson, P. &Rundh, B. (2012).Contracts as cornerstones in relationship building. International Journal of Quality and Service Sciences, 4 (3), 208 - 223.
Dmaidi, N., Dwaikat, M., &Shweiki, I. (2013). Construction Contracting Management Obstacles in Palestine. International Journal of Construction Engineering and Management, 2(1), 15–22.
Jones, K. &Kaluarachchi, Y. (2007). Operational factors affecting strategic partnering in UK social housing. Engineering, Construction and Architectural Management, 14(4), 334- 345.
Kothari, R.C. (2004).Research methodology, methods and techniques. 2nd Ed, New Delhi: New Age International (P) Limited.
Marco, S. (2013). Effectiveness in Contract Management in Tanzania: A Case Study of Tanroads. Unpublished Master of Science in Procurement and Supply Chain Management Thesis: Mzumbe University.
Mugenda and Mugenda (2003), Research Methods: Quantitative and Qualitative Approaches
Mohammed Khalfan Amour, (2014). The Role of Procurement Contract Management in the Effectiveness of Project Management for the Telecommunication Companies:
Oliveira, M. (2015).The Management of Construction Agreements in South Africa. Retrieved from https://www.irbnet.de/daten/iconda/CIB_DC24517.pdf
Rotich Joyce, (2012). Contract Management Practice and Operational Performance of State Corporations in Kenya.
Smith J., Peter, L.E.D., Damien, O. & Peter, R.D. (2014). Procurement of public sector facilities: Views of early contractor involvement. Facilities, 32 (9/10), 460-471
Saxena, A. (2008). Enterprise contract management a practical guide to successfully implementing an ECM solution. Ft. Lauderdale, Fla: J. Ross Pub.
Telgen, J., 2004. Purchasing Control, Compliance and the box: Purchasing Management based on hard data’, International Public Procurement Conference Proceedings, Vol. 4, Issue 3.
DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1450
Refbacks
- There are currently no refbacks.
This work is licensed under a Creative Commons Attribution 3.0 License.
PAST ISSUES:
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.