Publication: The effects of contractual requirements on financial performance of Mandera county goverment head office project
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2024-02
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Mount Kenya University
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Abstract
The study's purpose was to evaluate the effects of contractual requirements on financial perfor-
mance: a case study of Mandera County Head Office. A project to build the head office of the
Mandera County Government. The objectives was to determine the effect of compliance with reg-
ulations and standards on the Mandera County Government Head Office Project's financial per-
formance. To determine the effect on compliance with pre-qualification procedures of the Mandera
County Government Head Office Project's financial performance. To investigate the effect of com-
pliance with supervision practices on the financial performance of the Mandera County Govern-
ment Head Office Project and to determine the effect of contract definitioncontracts on projects
financial performance of Mandera County Government Head Office Project. Agency Theory, Stra-
tegic Choice Theory served as the theories that’s guided the study. For this study, a case study
research design was adopted. There were 120 responders in the target population. The study em-
ployed a stratified random sampling technique. The study made use of the sampling table found in
Appendix III by Krejcie and Morgan (1970), which shows that 92 is the sample size when the
population is 120. The information was gathered through surveys, secondary sources, and annual
reports. Quantitative methods were used to analyze the data. The SPSS program, version 21, and
descriptive statistics like the mean, percentages, and standard deviation were used to examine the
quantitative data. The dependent and independent variables in the study were compared using var-
iance analysis and multiple regression analysis. The results of the analysis were displayed in tables.
The study found out that respondents perceive the companies undertaking the projects to have
some level of experience. The companies taking part in the bidding process, according to the re-
spondents, are participating at a somewhat lower level. The majority of respondents think that
oversight procedures have a significant impact on a project's financial performance. The majority
of respondents firmly concur that contract definitions can significantly affect a project's financial
performance. It can be concluded that respondents generally perceive the companies undertaking
the projects as having some level of experience. Respondents generally believe in the importance
and effectiveness of pre-qualification practices in project management. Respondents generally be-
lieve in the importance and effectiveness of supervision practices in project management. Most
respondents concur that contracts with clear definitions improve projects' financial performance.
The study recommends that companies involved in these projects should communicate their expe-
rience, reputation, financial stability, and compliance with regulations more effectively to alleviate
any concerns among stakeholders. Companies should work on promoting their participation in the
bidding process to improve their perception among stakeholders. Companies should communicate
their effective supervision practices more effectively to stakeholders, emphasizing the impact on
financial performance and the avoidance of delays. Given the importance of clear contracts in
project management, it may be beneficial to focus on improving contract clarity and communica-
tion regarding financial aspects and associated penalties.
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Keywords
financial, perfor- mance, Mandera County, Government