Contract Management Practices And Performance Of Housing Construction Projects In Nairobi City County, Kenya: A Case Of National Construction Authority

ABSTRACT

The quality of housing projects in Kenya has been deteriorating without sufficient informing reasons especially from empirical literature. This is manifested in numerous cases of buildings collapsing across Kenya. This study will investigate the effects of contract management practices on the performance of housing construction projects in Nairobi county Kenya. The objectives of the study were to investigate the effects of the following contract management practices on the performance of housing construction projects in Nairobi City County, Kenya. The specific objectives were contractor pre-qualification, contract regulation practices, contract supervision practices and contract sub-contracting practices on the performance of housing construction projects in Nairobi City County. The study utilized descriptive research design. The target population was housing construction projects in National Construction Authority comprising of 66 respondents. A census of 66 respondentswas carried out. The study relied on primary data collected using a questionnaire whereby a response rate of 58 respondents was achieved. Reliability test was ensured through Cronbach’s Alpha and validity was ensured through content validity.Descriptive statistics and inferential statistics such as regression analysis and correlation anlaysis were used to analyze quantitative data. Qualitative data was analyzed using content analysis based on the thematic areas. The study concludes that facing the owner’s scrutiny regarding its competency to handle the business aspects of the operation during prequalification allows the contractor to focus on the specifics of the construction project once it has passed through prequalification and been short-listed. Supervision has a key role to play in preventing accidents. Typical supervisory functions include planning and allocating work, making decisions, monitoring performance and compliance, providing leadership and building teamwork, and ensuring workforce involvement. The main reasons contractors engaged subcontractors were to provide skilled labour, reduce overhead costs and minimise work and financial pressure on the contractors. Sub-contractors are sometimes unable to perform in their full capacity due to unfavourable project environment and poor quality of management by the main contractor. The study recommends that one important step that can be taken to ensure project success in safety is to prequalify and select only those contractors who are fully qualified by virtue of their safety programs and performance. The composition of the regulatory framework that governs the Kenyan construction industry should include specialized bodies mandated to champion for regulations in order to streamline the building industry. The level and nature of supervision required should be determined as an outcome of the client’s management arrangements for the project and from the risk assessments carried out by contractors and others. There should be a cooperative relationships and mainly integration of subcontractors into partnering approach in order to reduce adversarial relationships. The findings of the study would feed policy and practice on the construction industry by highlighting the gaps in the contracting arrangements in the industry and make workable recommendations.