The Practice of Contract Management in Road Construction Projects: The Case of Addis Ababa City Road Authority Projects
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Date
2024-10
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Addis Ababa University
Abstract
This research examines the contract management practices employed by the Addis Ababa City Roads Authority (AACRA) in Ethiopia, focusing on road construction projects. The study aims
to assess the contract management practices and the challenges they face in road construction projects in Addis Ababa. To address the objectives of the study, a descriptive research design
was used incorporating both quantitative and qualitative approaches. Primary and secondary sources of data were used i.e. questionnaires and semi-structured interviews as a source of
primary data and academic literature and various related reports as a source of secondary data. AACRA’s contract administration department members were incorporated into this
project work. Data was gathered by distributing questionnaires to 30 respondents, where 24 were filled properly and the remaining 6 were deemed to be incomplete, while an interview
was conducted with 5 senior professionals as well. The data obtained through the questionnaire has been analyzed quantitatively using descriptive statistics such as mean and
standard deviation via SPSS while qualitative data gathered through interviews was analyzed by using a thematic analysis. The findings reveal that while AACRA effectively implements
many contract management practices, there are areas for improvement. These include preaward assessments, performance monitoring and reporting, financial management, risk
management, and contract close-out procedures. The research also identifies key determinants of effective contract management, such as strategic decision-making, thorough evaluations,
and competent contract management teams. Challenges include unclear project scopes, unrealistic timelines and budgets, corruption, inflexibility, and payment disputes. Based on
these findings, the research proposes recommendations for strengthening AACRA's contract management practices to enhance project outcomes, improve value for money, and foster a
more efficient and effective road construction sector in Ethiopia.
Key Words: Contract, Contract Management, Contract Management Practices, Challengesof Contract Management