The Influence of Contractors’ Selection Attributes. A Study of Public Construction Projects Performance in Kenya

Harrison Wachira Kiiru; Githae Wanyona; Stephen Diang’a; John Kihoro

doi:10.37284/eajbe.7.1.2017

Harrison Wachira Kiiru The Technical University of Kenya
Githae Wanyona, PhD Jomo Kenyatta University of Agriculture and Technology
Stephen Diang’a, PhD Jomo Kenyatta University of Agriculture and Technology
John Kihoro, PhD The Co-operative University of Kenya

DOI: https://doi.org/10.37284/eajbe.7.1.2017

Keywords: Contractor Selection, Public Procurement, Construction Project, Tender Evaluation, Performance

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Abstract

This paper evaluated the influence of contractors’ selection attributes on public construction project performance in Kenya. This research contends that an investigation into contractors’ selection attributes at the tender evaluation stage is important to enhance the likelihood of public construction project success performance. The study used a survey method and administered questionnaires to 263 respondents selected through stratified sampling. One hundred and eighty-nine (189) practitioners and professionals in state agencies returned filed questionnaires representing a 71.86% return rate. The literature review and interview reveal thirteen contractor selection variables and six project performance criteria. SPSS was used to analyse the data set obtained for reliability, normality, correlation, and logit regression test. Logit regression analysis reveals the omnibus test of model coefficients converged (Chi-square=26.116, df=13, p=0.016). The model summary reveals Nagelkerke R^2 of 0.246 indicating a relationship of 24.6% between the thirteen predictor variables and project performance indicators. It was found that contractors quoted tender price (Exp (B) = 1.866), innovation (Exp (B) = 2.808), and occupation health and safety (Exp (B) = 0.358) significantly influence the performance of public construction projects when all other contractor's selection variables are controlled. This indicates that the contractor’s quoted tender price, innovation, and occupation health and safety explain well the success of the public construction project from thea six (performance by budget, time, procuring entity satisfaction, environmental sustainability, quality specifications, and fulfilling public need) project performance indicators

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