Evaluation of effectiveness of contract management in public contracts: A Case study of hydraulic improvement works of Agoro Irrigation Scheme in Lamwo District

Abstract

The Agoro irrigation scheme was constructed in the late 1960s with funding from the World Bank (WB) to boost rice and vegetable production in the area, particularly during the dry season. However, over time, the scheme deteriorated and required rehabilitation. This prompted MWE to rehabilitate the scheme for 27 billion Uganda shillings. The rehabilitation occurred between 2011 and 2013. During the design phase for rehabilitation work, some landowners had concerns, thinking the land survey was an act of the government to seize their land. This made the areas inaccessible, and the design was based on survey data generated from the web. Upon completing the rehabilitation, when the project was handed over and operational, those who had previously denied access faced challenges accessing water from the scheme. This prompted the government to task MWE to address the issue. The Ministry decided to use closed conduit water conveyance to facilitate building up hydraulic heads, allowing water to reach all areas. The Ministry, therefore, procured the GRP pipes and fittings separately by contracting M/s Techno Three (U) Ltd at Shs 4.8 billion, and later contracted Gets Technical Services at Shs 1.58 billion, to carry out the hydraulic improvement works. The contract for supervision and design review of the hydraulic improvement was awarded to Kagga and Partners (U) Ltd at Shs 399 million. However, due to the COVID-19 pandemic, the supply of GRP pipes was delayed because of the restrictions imposed in Egypt (the exporting country) and Uganda (the importing country). This delayed commencement of hydraulic improvement works by 15 months. Later, when the contractor was given possession of the site, construction began and progressed slowly. The Ministry made several attempts to ensure the contractor expedites work, but the progress remained slow. By the end of the contract's expiry, the progress had reached 76%, at which point both the contract and defects liability periods had expired. The contractor sought no time extension, and MWE procured another contractor. Against this background, this study was conducted to assess the effectiveness of contract management in public contracts, using the case of hydraulic improvement works in the Agoro irrigation scheme in Lamwo District. The study relied solely on secondary data obtained through document reviews and observations. The study involved determining the objectives of contract management in the hydraulic improvement works of Agoro irrigation, assessing the extent to which these objectives were achieved, and identifying the factors that affected their achievement. It also examined the impact of achieving contract management objectives on the outcomes of the hydraulic improvement works project. It investigated what would have enabled effective contract management of the Agoro project. Five contract management objectives were identified through a thematic analysis of secondary qualitative data, from reviews of letters, minutes, progress reports, the contract, PPDA guidelines and regulations, and other relevant documents. These contract management objectives were (1) to manage the obligations and duties of the procuring and disposing entity in the contract, (2) to ensure all parties adhere to the contract terms and conditions, (3) to control time, quality and cost, (4) to coordinate the parties in the contract, and (5) to ensure compliance with the laws. The contract management objectives were then broken down into sub-objectives, each of which was assigned a score to represent “Achieved”, “Not Achieved”, or “Neutral”. The percentage of achieved sub-objectives was used to determine the overall achievement of a contract management objective. It was therefore found that the five contract management objectives were achieved as follows, respectively: (1) moderately achieved, (2) poorly achieved, (3) poorly achieved, and (4) and (5) were excellently achieved. The significant factors that influenced the achievement of the contract management objectives were the overlapping of roles of the contract management team with those of the consultant, continuous audit of the project, appointing a sub-accounting officer as part of the contract management team, the post-COVID-19 financial crisis, inconsistency of contract management meetings, inadequacy in contract management knowledge, late design reviews with no time extension to contractor, inadequate and inconsistent financial releases by government, and the involvement of stakeholders in supervision and monitoring meetings. Due to the achievement levels registered against each contract management objective, the Agoro project was found to be well-documented, with good record-keeping, well-coordinated, and legally compliant; however, it was also a costly project. Therefore, if the project were to be more effective, (1) the GRP pipes should have been supplied to 80% before the Ministry committed to the hydraulic improvement contract, (2) the contract management team should have released the contractor and consultants of their duties when they sensed delivery delays (ref: GCC 62.1), (3) the government should have locked funds for the project, and (4) contract management teams should have been involved from the initiation of the project, and assigned on knowledge basis.