Contract Management Practices and Project Performance of Parastatals under the Ministry of Energy and Petroleum in Kenya
DOI:
https://doi.org/10.47604/gjppm.3587Keywords:
Contract Management Practices, Project Performance, Parastatals, Ministry of Energy and Petroleum, Contract Planning, Contract Monitoring, Cost Management, Contract DocumentationAbstract
Purpose: This study aimed to assess the effect of contract management practices specifically contract planning, contract monitoring, contract cost management, and contract documentation on the project performance of parastatals under the Ministry of Energy and Petroleum in Kenya.
Methodology: The researcher used a descriptive and correlational research design, combining both qualitative and quantitative approaches. Structured questionnaires were employed as the primary research instruments. The target population comprised senior supply chain officers, procurement officers, finance managers, project engineers, and legal officers drawn from 13 parastatals within the Ministry of Energy and Petroleum. A census survey approach was adopted owing to the manageable population size and the technical expertise required from respondents. Data were analyzed using the Statistical Package for Social Sciences (SPSS Version 28), and results were presented using tables, charts, and regression output indicators.
Findings: The results revealed that all four-contract management practices had a statistically significant positive effect on project performance. The regression coefficients showed strong predictive power, while correlation analysis indicated a strong positive linear relationship between contract management practices and performance outcomes, demonstrating that improved planning, monitoring, cost control, and documentation significantly enhance timeliness, efficiency, and service delivery.
Unique Contribution to Theory, Practice, and Policy: The study contributes to Transaction Cost Economics, Stakeholder Theory, Institutional Theory, and Agency Theory by demonstrating how structured contract processes reduce uncertainty, strengthen accountability, and enhance project delivery. The study recommends that parastatals strengthen contract planning, adopt robust monitoring frameworks, automate cost management systems, and implement secure digital documentation platforms to enhance performance and ensure better governance within Kenya’s public energy sector.
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