The Determinants of Contractor Selection Process and Performance of Construction Projects in Tanzania: A Case of Institute of Accountancy Arusha.

Matto, Mordecai Chrysostom (2024) The Determinants of Contractor Selection Process and Performance of Construction Projects in Tanzania: A Case of Institute of Accountancy Arusha. Masters thesis, The Open University of Tanzania.

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Abstract

The success or failure of construction projects fundamentally depends on the contractor's performance. Hence, this study examined the determinants of the contractor selection process and the performance of construction projects in Tanzania. The specific objectives were confined to the standard contractor selection indicators namely commercial examination, technical examination and financial examination. To meet the study objectives, the agency theory was adopted to guide the study. Likewise, the study deployed a quantitative research approach and explanatory design in data collection and analysis. The data were collected from 205 respondents using a questionnaire and documentary review. The sampled respondents of this study were selected using stratified random sampling. The analysis of the data was performed using partial least squares structural equation modelling with the help of SmartPLS 3 software. The findings showed that technical examination and financial examination are significantly associated with performance of construction projects and both mediate the relationship between commercial examination of tenders and the performance of construction projects. Theoretically, results demonstrated that deficiencies in commercial, technical and financial examinations can lead to moral hazard, adverse selection, and signaling. The study recommended that policymakers to integrate the contractor selection process and the performance of construction projects. Similarly, procuring entities should ensure that the contractor selection criteria are adequately prepared. Finally, the study concluded that contractor selection attributes predict performance of construction projects.

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