Impacts of Procurement Process on Contractor Selection in Ethiopian Roads Authority

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Addis Ababa University


Ethiopian Roads Authority representing the Government of Ethiopia manages the substantial portion of the road construction projects in the country. However, most of the projects severely suffering from over extended delays, excessive cost overruns and quality problems. Hence, identifying prime factors in the procurement process that influences the selection of contractors plays essential role in devising appropriate measures on selection of the right contractor that will complete projects with the desired performance requirements. A total of 30 factors that influence procurement process were identified based on the literature review and investigation made in Ethiopian Roads Authority and categorized into five groups depending on different stages of procurement process. Statistical analyses of their significances were carried out based on questionnaire survey of senior professionals. Accordingly, the top 10 factors are identified as significantly influencing whereby 30% are related to procurement planning and packaging, 40% are related to bid evaluation and qualification criteria and 30% are related to tender document preparation. Moreover, the study reveals that the procurement process is a multi step process and not properly managing the process would have a profound impact on the project’s success or failure. Discussion on mitigation measures of critical factors and conclusion was made based on the responses of hypothesized questions and document analysis. Recommendation towards improvement of the current procurement process for selecting a contractor in Ethiopian Roads Authority was portrayed which includes; to integrate procurement planning and strategy in projects cycles, to assess local contractors weakness and respective mitigation in the capacity building strategy, to include quality and overall management of projects as part of contractors‘ ongoing projects performance assessment, to evaluate financial and technical capacity of contractors’ before award of a project and to include risk assessment and mitigation of projects as part of the major tasks of design consultants. The research also proposed a model to control workloads of contractors as part of qualification criteria. Future research is also recommended which includes studying the impacts of the current strategy to increase local content in the road projects in Ethiopian.



Ethiopian Roads