EFFECTIVENESS OF CONTRACT MANAGEMENT ON CONTRACTORS’ PERFORMANCE IN KENYA POWER & LIGHTING COMPANY LIMITED

Richard Wida, Dr. Alexander Kyule

Abstract


In the world of business, it is common for an organization to involve contractors or suppliers in one way or another to support in providing service or product to meet its intended requirements. It is a main duty for operating company to make sure contractors perform their duties safely and timely through appropriate contract management (CM) procedures. Despite significant research progress, the effectiveness of contract management in terms of monitoring contractor’s performance in the Energy Sector in Kenya has not been tracked and published widely. The main objective of this study is to examine the effectiveness of contract management on contractor’s performance in fulfilling their contractual obligations at Kenya Power Company. The research had a target population of 118 employees of Kenya Power who are directly involved in Contract Management. The study was mainly conducted at the headquarters of Kenya Power since this is where all company contracts are managed. The study concludes that contract management team has a significant effect on contractor’s performance in KPLC. In addition, the study concludes that contract selection has a significant effect on contractor’s performance in KPLC. Based on the findings, the study recommends that the management of contractors in Kenya Power should implement clear and detailed performance metrics and regular monitoring mechanisms. A well-structured contract management team should define specific performance indicators within the contract, such as timelines, quality of work, and adherence to safety standards.

 

Key Words: Contract Management, Contract Management Team, Contract Selection, Contractors’ Performance


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References


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