ST.

MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

THE EFFECTS OF PROJECT PROCUREMENT PRACTICES ON

CONSTRUTION PROJECT PERFORMANCE: THE CASES OF ETIHOPIA
CONSTRUCTION WORKS CORPORATION

BY
CHANEYALEW WONDEMALEM

JUNE, 2020
ADDIS ABABA, ETHIOPIA
 ST. MARY’S UNIVERSITY
SCHOOL OF GRADUATE STUDIES

DEPARTEMENT OF PROJECT MANAGEMENT

MBA PROGRAM

THE EFFECTS OF PROJECT PROCUREMENT PRACTICES ON

CONSTRUTION PROJECT PERFORMANCE: THE CASES OF ETIHOPIA
CONSTRUCTION WORKS CORPORATION

BY
CHANEYALEW WONDEMALEM
ID No: - SGS/0557/2011A

ADVISOR: DR. TEMESGEN BELAYNEH

A RESEACH THISIS SUBMMITED TO ST. MARRY UNIVERSITY

COLLEGE SCHOOL OF GRADUATE STUDIES-MA PROGRAM IN
PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
OF MASTER OF PROJECT MANAGMENT

June, 2020
Addis Ababa, Ethiopia

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 ST. MARY UNIVERSITY
SCHOOL OF GRADUATE STUDIES

DEPARTEMENT OF PROJECT MANAGEMENT

MBA Program

The Effects of Project Procurement Practices On Construction Projects

Performance: The case of Ethiopia Construction Works Corporation

BY
CHANEYALEW WONDEMALEM

Approved by Board of examiners

Dean Graduate Studies Signature Date

Advisor Signature Date

Mohammed M. (Asst. Prof) 07/09/2020

Internal Examiner Signature Date

Yibeltal Nigussie (Assistant Professor) 24/08/2020

External Examiner Signature Date

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 Declaration
I, Chaneyalew Wondemalem hereby declare that the thesis entitled “The Effects of Project
Procurement Practices on Construction Project Performance: „The case of Ethiopia Construction
Works Corporation.” submitted by me for the award of master‟s Degree in project management is
my original work and it has not been presented for the award of any other Degree, Diploma,
Fellowship or any other similar titles of any other university or institutions.

Signature________________

Name: CHANEYALEW WONDEMALEM

Date: June, 2020

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 ENDORSEMENT
This thesis has been submitted to St. Mary's University College, School of Graduate Studies for
examination with my approval as a university advisor.

Advisor DR. TEMESGEN BELAYNEH

Signature
St. Mary's University College, Addis Ababa

June, 2020

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 Acknowledgement
First and foremost, I would like to express my deepest gratitude to Jesus Christ the son of God for
his blessing and for making me accomplish this huge achievement. Next, I would like to express my
sincere gratitude to my advisor, DR. TEMESGEN BELAYNEH for all of his professional guidance,
extra comments, building ideas, cooperativeness and good advice and help from the starting to the
accomplishment of this study.

Finally, I would like to acknowledge all the participants of this study who gave their time and
provided their valuable information. Moreover, my heartfelt thanks goes to everyone that has
contributed to this thesis directly or indirectly.

THANK YOU ALL!!!

CHANYALEW WONDEMALEM

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Table of Contents
Declaration ................................................................................................................................................................ iii
ENDORSEMENT ..................................................................................................................................................... iv
Acknowledgement ...................................................................................................................................................... v
List of Tables ............................................................................................................................................................. ix
List of Figures............................................................................................................................................................. x
ABSTRACT ............................................................................................................................................................. xii
CHAPTER ONE .........................................................................................................................................................1
INTRODUCTION ......................................................................................................................................................1
1.1 Background of the study ............................................................................................................................1
1.2 Statement of the problem ...........................................................................................................................3
1.3 Research Questions ....................................................................................................................................5
1.3.1 Basic Research Question .......................................................................................................................5
1.3.2 Specific Research Question ...................................................................................................................5
1.4 Objectives of the study...............................................................................................................................6
1.5 Significance of the study............................................................................................................................6
1.6 Scope of the Study .....................................................................................................................................6
1.7 Limitation of the study ...............................................................................................................................7
1.8 Organization of the study .................................................................................................................................7
CHAPTER TWO ........................................................................................................................................................8
REVIEW OF RELATED LITERATURE ..................................................................................................................8
2.1 Definition of Project and Project Management ................................................................................................8
2.1.1 Definition of Project ..................................................................................................................................8
2.1.2 Definition of Project Management ............................................................................................................9
2.2 Definition of Procurement, Public Procurement and Project Procurement Management ................................9
2.2.1 Definition of Procurement .........................................................................................................................9
2.2.2 Public Procurement .................................................................................................................................10
2.2.3 Project Procurement Management ..........................................................................................................10
2.2.4 Project Procurement Management Process ............................................................................................11
2.2.5 Project Procurement Planning ...............................................................................................................11
2.2.6 Conduct Project Procurement .................................................................................................................13

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 2.2.7 Control Project Procurement .................................................................................................................17
2.2.8 Closeout Project Procurement ................................................................................................................18
2.3 Measurement of Effective Project Performance .............................................................................................18
2.4 Empirical Literature Review of the Study ......................................................................................................19
2.5 Conceptual Framework of the study ...............................................................................................................21
Figure 2.1: Conceptual Framework of the Study..................................................................................................21
2.6 Research Hypothesis.......................................................................................................................................22
CHAPTER THREE ..................................................................................................................................................23
RESEARCH METHODOLOGY .............................................................................................................................23
3.1 Description of the study Area .........................................................................................................................23
3.2 Research Design .............................................................................................................................................23
3.3 Research Approach .........................................................................................................................................23
3.4 Type and source of Data .................................................................................................................................24
3.4.1 Primary data ............................................................................................................................................24
3.4.2 Secondary data ........................................................................................................................................24
3.5 Instruments of Data Collection ....................................................................................................................24
3.6 Population and Sampling ................................................................................................................................25
3.6.1 Population of the study ............................................................................................................................25
3.7 Method of data Analysis and Presentation .....................................................................................................26
3.8 Reliability and Validity of the Instrument ......................................................................................................26
3.9 Ethical Consideration .....................................................................................................................................27
CHAPTER FOUR ....................................................................................................................................................28
RESULTS AND DISCUSSIONS ............................................................................................................................28
4.1 Sample and Response rate ..............................................................................................................................28
4.2 The General Background of the Respondents ................................................................................................28
4.3 Reliability Test Result ....................................................................................................................................30
4.4 Descriptive Analysis of Variables ..................................................................................................................31
4.5 Correlation Analysis .......................................................................................................................................36
4.6 Regression Analysis .......................................................................................................................................38
4.6.1 Linear Regression Analysis .....................................................................................................................38
4.6.1.1 Multi-Collinearity .................................................................................................................................38

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 4.6.1.2 Homoscedasticity ..................................................................................................................................39
4.6.1.3 Linearity................................................................................................................................................40
4.6.1.4 Independent errors ...............................................................................................................................40
4.7 Multiple Linear Regression Analysis .............................................................................................................41
4.7.1 The regression coefficient ........................................................................................................................43
4.8 Hypothesis Testing .........................................................................................................................................44
4.9 Discussion of the Result .................................................................................................................................46
CHAPTER FIVE ......................................................................................................................................................48
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS .....................................................48
5.1 Summary of Major Findings...........................................................................................................................48
5.2 Conclusion ......................................................................................................................................................49
5.3 Recommendation ............................................................................................................................................50
5.4 Implication for Further Research ....................................................................................................................51
REFERENCE ...........................................................................................................................................................52
Appendix A: Questionnaire (English) ……………………………………………………………………………. 54
Appendix B: SPSS out Put ………………………...………………….…………………………………………. .61

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 List of Tables

Table 3.1: Reliability Statistics of Cronbach-Alpha……...................................................................26

Table 4.1: Characteristics of Respondents .........................................................................................29

Table 4.2: Cronbach‟s Alpha Result ..................................................................................................31

Table 4.3 Descriptive Statistics of Project Procurement Practice Dimensions..................................32

Table 4.4: Descriptive Statistics of Project procurement Practice management……………...…….32

Table 4.5 Descriptive Statistics of Project Procurement Planning………….....................................33

Table 4.6: Descriptive Statistics of project procurement conduct process.........................................34

Table 4.7: Descriptive Statics of Project Procurement monitor and control......................................34

Table 4.8: Descriptive Statistics of project performance………...……….........................................35

Table 4.9: Pearson Correlation Matrix……………….......................................................................36

Table 4.10: Multicollinearity Test…………………………..………………………………………39

Table 4.11: Model Summary for project prformance….....................................................................41

Table 4.12: ANOVA of project prformance…...................................................................................42

Table 4.13: Summary of Coefficient on project prformance…..........................................................43

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 List of Figures

Figure 2.1: Conceptual Framework of the Study..............................................................................19

Figure 4.1: Scatter Plot …………. …………..………………….……..…………….....................40

Figure 4.2 Project Performances........................................................................................................46

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List of Abbreviations and Acronyms

ANOVA-Analysis of variance

E.C - Ethiopian calendar

ECWC-Ethiopia Construction works corporation

EPPPA - Ethiopian Public Procurement and Property Administration

ERCC-Ethiopia Road Construction Corporation

EWWCE- Ethiopian Water Works Construction Enterprise

FDRE- Federal democratic republic of Ethiopia

IFB-Invitation for bid

ITN- Invitation for Negotiation

MUDHCO- Ministry of urban development and housing Construction

NGOs-Non government organizations

NHC- National Housing Corporation

PMBOK- Project Management Book of Knowledge

PDO- project development objective

RFI- Request for Information

RFP- Request for Proposal

RFQ- Request for Quotation

SPSS- Statistical Package for Social Sciences

GDP- Gross Domestic Products

UNDP-United Nation development program

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 ABSTRACT
The purpose of this paper is to investigate the effects of project procurement practices on
construction projects in the case of Ethiopian construction Works Corporation. It followed a
quantitative research approach and the research design was both descriptive and explanatory
research. A structured questionnaire was adopted. A quantitative research approach was
implemented, and the hypotheses were also tested on a sample of 44 employees out of 48
distributed, giving a valid response rate of 91.7%. The questionnaire was analyzed using Statistical
Package for Social Sciences (SPSS) V.24 to compute Cronbach Alpha, descriptive statistics,
correlation & regression. From the descriptive statistics project procurement monitoring and
controlling has the highest mean score 4.116(0.586) which implicates continuous improvement,
achieving value for money, improve quality, improve, reduce risk, and number of projects
completed on time as an important determinant in project procurement monitoring and controlling.
Correlation analysis was conducted to analyze the relationships between variables; the correlation
matrix revealed that all coefficient of correlation independent variables were positive and strongly
correlates with the dependent variable. In addition to correlation analysis, Further regression
analysis was also conducted and results revealed that the four independent variables (project
procurement management, planning, project conducting process and monitoring) contribute to
statistically significant level at (p-value = 0.001). Based on hypothesis testing the p- value of
project procurement practice, planning, conducting and monitoring is less than 0.05, thus the
researcher can accept the hypothesis and all the physical distribution service dimensions. Finally,
the results are useful in identifying project procurement practices focus areas to help ECWC
project procurement practice. As evidence from the finding section that, ECWC is recommended to
fully implement project procurement practices effectively improve project performances.

Key words: project procurement practice, project procurement management, Project procurement
planning, project procurement conducting, project procurement monitoring, and project
performance.

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 CHAPTER ONE
INTRODUCTION
This Chapter presents an overview of the entire study. It includes the background of the study,
Statement of the problem, Research questions and Objectives of the study, Significance of the
study, Scope and Limitation of the study and Definition of terms and Organization of the study.

1.1 Background of the study

Projects now a day have great practice in private, government, NGOs and other forms of
organizations. We are doing projects all the time and also project is implementing on government,
private and non-government organizations in order to get advantage from opportunities in the
competitive market and to solve existing problems to the beneficiaries. What distinguishes project
from routine, production work is a project is a temporary endeavor undertaken to achieve a unique
product, service, or result. Projects are a key way to create value and benefits in organizations. In
today‟s business environment, organizational leaders need to be able to manage with tighter
budget, shorter timelines, scarcity of resources, and rapidly changing technology. The business
environment is dynamic with an accelerating rate of change. To remain competitive in the world
economy, companies are embracing project management to consistently deliver business value.
Project management is the application of skill, knowledge, tools and techniques to project
activities to achieve project goals and objectives (PMBOK, 2017).
According to Morris &Pinto(2007) procurement is management of a board range of processes that
are associated with an organization desire to obtain the necessary goods and services needed for
manufacturing a product, transforming inputs to outputs, or indirectly operating the organization.
These processes involves identifying and analyzing user requirements and types of purchase,
selecting suppliers, negotiating contracts, acting as liaison between the supplier and the user, and
evaluating and forging strategic alliances with suppliers. Its function extends to acquisition of
suppliers, pricing, purchasing, and administration of contracts.
According to project management book of knowledge (PMBOK, 2017) project procurement
management includes the process necessary to purchase or acquire products, services or results
needed from outside the project team. It includes the contract management and change control
process required to develop and administer contract purchase orders issued by authorized project
team members.

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It also includes administering any contract issued by an outside organization that is acquiring the
project from the performing organization. PMBOK‟s project procurement management process
includes four processes: Plan Procurements, Conduct Procurement, Administer, and Close
Procurement.
According to Fleming (2003), the procurement of project scope whether it be done through
teaming arrangements, contracting or sub-contracting, will be progressively taking a large share of
business. Thus, we must perform this management process well, if we are successful on project.
According to a research done by Yimam (2011), to assess the extent of use (maturity) of project
management processes and practices in the construction industry of Ethiopia results shows
majority of the contractors‟ procurement management process is incomplete.
Kinyek (2012), states that the challenges facing procurement system area of implementation and
practices, which is not only is a problematic for the case under his study but all nations. Reflecting
that mismanagements of procurement in developing nations exist more in developed nations.
Thus, improvement in procurement management system as a whole is off great need in developing
country like Ethiopia where, implementation of project procurement management processes and
procedures is still at early stage.
Globally the construction industry huge influences the economy, the environment and the society.
In 10 trillion USD revenue and added value 3.6 trillion, the sector is account for about 6 % of the
GDP, according to World Economic Forum‟s report (2017).
Over the years, the construction sector has recorded robust growth, owning to public infrastructure
expenditure. The sector expanded by an annual average of 30% for the past five years,
predominantly driven by projects related to road, railway, dam and residential expansion. The
sector has been performing well; it has however expanded by 16% in 2018, which is below the
five years average of 30%. Construction currently accounts for 71.4% of the industries sector,
making it the largest industrial activity in Ethiopia.
As per Deloitte‟s Africa Construction Trends report (2018), Ethiopia had the third largest number
of construction projects underway in Africa, after Egypt and Kenya. The report, which tracks
projects that had broken ground and are under construction, valued at US$19.1bn.
Ethiopia is set to the fastest growing construction market in Sub-Sara Africa, based on
forthcoming development plans. These additional construction plans are expected to boost
infrastructure and simulate the country‟s international competitiveness. At present, 22% of total
investment projects are focused on construction activities. So too, the construction industry‟s
share of GDP is expected to expand, however at a slowing rate, accounting for 19.2% of GDP.

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According to Ethiopia Ministry of Construction the sector had a 9.5 % share from Ethiopia‟s total
Gross Domestic Products (GDP) 2016. The construction sector has made immense contribution in
urban development whilst benefiting low income citizens by providing cost effective and modern
house. It is also the sector the second largest employing industry through creating jobs for over
1.8 million citizens thereby alleviating urban poverty.
Ethiopian government makes up part of the financing shortfall for construction sector from the
public budget. The construction industry is being currently under taken in vast manner in the
country, this study will be conduct in one of largest government Construction Company in
Ethiopia, and it is Ethiopian Construction Works Corporation (ECWC).
The Ethiopian Construction Works Corporation (ECWC) is established as a Federal Government
Public Enterprise by Council of Minister Regulation No. 366/2015 on December 18/2015. The
Corporation amended by council of Minister Regulation No 390/2016 on September 28/2016.
The Corporation is founded by amalgamation of three former Public Enterprises Namely,
Ethiopian Road Construction Corporation (ERCC), Ethiopian Water Works Construction
Enterprise (EWWCE) and Prefabricated Building Parts Production Enterprise.
Some of the Corporation‟s main functions are construction and maintenance of Roads, bridges,
Works related to dam, irrigations, hydropower generations, Waters Supply systems, sewerage
systems, and drainage. In addition to these it engages in assembling of construction equipment
and machinery and manufacturing spare parts, provides maintenance services for construction
equipment‟s and machineries produce construction materials, engages in the rental business of
construction equipment, machineries, warehouse and buildings.
These activities are performed by six different sectors of the corporation, Transportation
Infrastructure Construction sector, Water Infrastructure Construction Sector, Dam and Irrigation
Project Management Sector, Building Technology and construction Sector, Construction
Equipment and Machineries Management Sector and Corporate property Management and
Service Sector (http://www.ecwc.et.com.).

1.2 Statement of the problem

Project procurement is distinguished from other forms of procurement in that it‟s not a onetime
action taken rather it‟s a series of procurement activities carried out during the execution of a
project. Based on this, Procurement can be seen as a fundamental part of project management
because it is crucial to the success of the project that procurement activities are appropriately
planned and executed (Jarocki,2014).

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According to PMBOK (2017), the Project Procurement Management process includes planning
procurement, conducting procurement, controlling procurement and closing procurements. Thus, a
project procurement management practice needs to consider these points in order to be effective.
A good procurement planning before undertaking a procurement process is a key contributor to
project success (Deme A, 2009). According to PMBOK (2017) conducting procurement is about
obtaining seller responses, selecting a seller, and awarding a contact. As seller‟s play a vital role
in success of the procurement it should be well conducted to have the desire outcome. Thus,
having a procurement practice well-defined in a project will be favor to successful outcome of the
project.
Effective procurement is critical for execution of project success. Depending upon the specific
type of project being managed, over 50 per cent of the total project cost can be attributed to parts,
supplies, and for many high- technology projects, this procurement can approach 90 per cent
(Morris & Pinto, 2007).
Many procurement activities suffer from neglect, lack of proper direction, poor co-ordination,
bureaucracy, lack of open competition and transparency, differing levels of corruption and not
having a trained and qualified procurement specialists who are competent to conduct and manage
the procurement process in a professional, timely and cost effective manner. Week project
procurement in Ethiopia resulted from insufficient planning, shortage of funds, and timely
inaccurateness of large procurement (Karlsson, 2012).
Ethiopian Construction Works Corporation is undertaking six different sectors of the Corporation,
Transportation Infrastructure Construction sector, Water Infrastructure Construction Sector, Dam
and Irrigation Project Management Sector, Building Technology and construction Sector,
Construction Equipment and Machineries Management Sector and Corporate property
Management and Service Sector. Under each sector there are several projects are undertaking
which are facing project procurement management problems.
According to the report from annual report held on 2018/19, different project team members and
project managers of the corporation reveals that most of delay in projects occurs due to quality
problem of the purchased item, corruption, lack of adequate make/buy analysis and fail to deliver
the ordered items on time by procurement and supply department of the corporation. Therefore in
this study the research assess the effect of project procurement practices on performance of
projects in Ethiopia Construction Works Corporation with a specific focus on the impact of
procurement planning, procurement conduct, and procurement monitoring and control.

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In addition of this, preliminary meeting held with two relevant department team leaders and
personnel‟s under study on November 27 and 28, 22019 at head quarter, they have stated that the
corporation have undertaken procurement plan at corporate level, but they are not implemented
consequently as they result on late delivery, price increment, rush procurement, failure to procure
the specified materials, negative impact on goodwill of the corporation, increase procurement
processing cost, decrease corporations negotiation power and so forth. This implies that in
Ethiopian Construction Works Corporation, the project performance of the corporation is highly
impacted by the lack of proper project procurement planning, by project procurement conducting
process, project procurement controlling process, and project procurement closeout of the
corporation which lead to unnecessary cost and time overrun in the project.

1.3 Research Questions

This study tries to answer the following basic and sub questions:

1.3.1 Basic Research Question

To assess the effects of project procurement practices on overall project performance at Ethiopian
Construction Works Corporation.

1.3.2 Specific Research Question

Specifically, the study tries to answer the following research questions for the study:

 How project procurement planning influence the projects performance at ECWC?

 What is the relationship between conducting project procurement practice and project
performance at ECWC?
 What is the relationship between project procurement controlling process and project
performance at ECWC?
 Which project procurement management practice highly influence the project performance
at ECWC?

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 1.4 Objectives of the study
To general objective of this study is to examine the effects of procurement practices on project
performance of projects under construction by Ethiopia Construction Works Corporation.
To achieve the stated general objective the study is also specifically tries to achieve the following
specific objectives.
1. To assess how the current procurement planning affects the performance of the projects
under construction by Ethiopian Construction Works Corporation.
2. To assess how the project procurement conducting process affects the performance of the
projects under construction by Ethiopian Construction Works Corporation.
3. To determine how the project procurement monitoring and control affects the performance
of projects under construction by Ethiopian Construction Works Corporation.
4. To determine how the project procurement management practices affects the performance
of the projects under construction by Ethiopian Construction Works Corporation.

1.5 Significance of the study

This study can be helpful for the Ethiopia Construction Works Corporation to identify with in
which of the procurement practices that he corporation needs improvement. As well it serves as an
input for the Procurement and Supply department of the Corporation and the sectors as whole to
create awareness on the importance of a well-managed project procurement practices on project
performance success. The findings may be of great use to carry out further research on project
procurement practices.

1.6 Scope of the Study

This study was limited to the effect of Project Procurement Practice management (project
procurement management, project procurement planning, project procurement conducting process
and project procurement monitoring and control) on overall project performance regarding to
Ethiopian Construction Works Corporation. Due to the nature of Project procurement practices, to
see the effectiveness of overall project procurement practice to improve project performance.

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 1.7 Limitation of the study

Actually, it is rare to conduct a study without any limitations and challenges. Ethiopia
Construction Works Corporation has six sectors and above twenty projects all over Ethiopia.
However, the study will be conduct in the head quarter in Addis Ababa because of time constrains
and other resource limitations the results of the study may not be generalized to other construction
companies.

1.8 Organization of the study

The study is organized in to five chapters. The first chapter starts by giving a brief introduction on
project procurement management and brief background information about Ethiopian Construction
Works Corporation and followed by a brief statement of the problem. It also includes the research
question, objectives and significance of the study, as well as the scope and limitation of the study.
The second chapter will focus on exploring various literatures on the problem under study to
provide definitions to the various concepts as well as explain the theoretical perspectives. The
third chapter presents the methodology of the study. It covers research design, sample and
sampling techniques, source and tools of data collection and analysis and reliability test of the
study and the fourth chapter covers the result of the study. The last chapter provides summary of
findings, the conclusion of the study, suggests possible remedial recommendation and implication
for further research.

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 CHAPTER TWO
REVIEW OF RELATED LITERATURE
This section describes about the related literature review of project procurement management
practices. It explains the definitions, theories, concepts and empirical literature review of the
project, project management and measurement of effective project performance, procurement,
public procurement, project procurement management and Empirical review of the study.

2.1 Definition of Project and Project Management

2.1.1 Definition of Project

PMBOK (2017) defines project as a temporary endeavor undertaken to create a unique product,
service or result. Wysocki (20014) defines project as a sequence of unique, complex, and
connected activities that have definite goal and that must be completed by a specific schedule,
within budget, and according to specification. Project used to find solution for a critical business
problem, and/ or take advantage of the untapped business opportunity.
According to Kerzner (2009), states project is a series of activities and tasks that have a specific
objective to be completed within certain specification having defined schedule, budget limit, and
consume human and non-human resources with multifunctional nature.
Based on different author‟s definition, about project Callahan and Brooks (2004), states that
projects has three important characteristics. The first characteristic of a project is that it should
have a starting and ending date. The second characteristic of a project is that the deliverable is
unique. The third characteristics of project are a defined scope.
Fleming, (2003) defines a project as a special kind of activity. It involves something that is both
unique and important and thereby requires unusual attention. It also has boundaries with other
activities so that its extent is defined and it has a beginning and an end and objectives whose
accomplishment signals the end.
We can clearly see from the definition that projects are short term, have a well-defined scope and
are unique with set of activities to achieve a specific goal and objective.

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 2.1.2 Definition of Project Management
From the project features emphasized above, it is clear that projects require a unique form of
management. The concept of project management evolved in order to plan, coordinate and control
the many complex and often diverse activities involved in project (Roberts and Wallace, 2004).
According to PMBOK (2017), project management is the application of knowledge, skills, tools,
and techniques to project activities to meet the project requirements. Project management is
accomplished through the application and integration of the project management processes of
initiating, planning, executing, monitoring, and controlling, and closing. It requires all of the skills
of general management to secure the project success.
Project management is designed to answer business situation is being addressed, what the
business needs to do, what you will do, how will you do it, how will you know you did it and how
well did you do. Project management is an organized common-sense approach that utilizes the
appropriate client involvement in order to meet sponsor needs and delivery expected incremental
business value (Wysocki, 2014). The most significant features of project management are that it is
oriented toward achieving results and is a process to attain and end (Callahan and Brooks, 2004).
Roberts and Wallace (2004), also state that project management is concerned with the life cycle of
the project Initiating process, planning process, executing process, monitoring and controlling
process and closing process.It is therefore about deciding the various success and failure criteria
of a project and then organizing and running the project as single entity so that all the success
criteria are met
According to the PMBOK (2017), there are ten project management knowledge areas that every
project addresses and these knowledge areas represent a set of competency skills and processes
that must be properly utilized by the project managers throughout the life cycle of the project.

2.2 Definition of Procurement, Public Procurement and Project Procurement

Management

2.2.1 Definition of Procurement

The term procurement is used, especially where government purchasing is involved. The term
specific activities of purchasing are, as described by Dobler (1990), participation in the
development of requirements and their specification, managing value analysis activities,
conducting supply market research, managing supplier negotiations, conducting traditional buying
activities, administering purchase contracts, managing supplier quality, buying inbound
transportation.

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According to UNDP (2005), the term „procurement‟ refers to the process of acquiring goods,
works and services. The process spans the whole cycle from identification of needs through to the
end of a services contract or the useful life of an asset. They also note that procurement forms
nearly 80% of the project amount in most cases.
According to Kerzner (2009), Procurement can be defined as the acquisition of goods or services.
It is a process that involves two parties with different objectives who interact in a given market
segment. On similar terms, Roberts and Wallace (2004), states that procurement is the process of
the two (or more) different contractual parties, who have different aims and objectives, interacting
and agreeing on a contract within a given market sector.
Procurement is a very important function since it is the process by which the organizations can
attract and contract good quality services.
This is important because good procurement leads to good supplier and this in turn leads to
increased performance and improve profitability (Roberts and Wallace, 2004).
Kerzner (2009), also affirms that good procurement practices can increase corporate profitability
by taking advantage of quantity discount, minimizing cash flow problems, and seeking out quality
suppliers. Because procurement contributes to profitability, procurement is often centralized,
which results in standardized practices and lower paper work costs.
Effective procurement requires the utilization of sound business practices that maximize value to
the organization through the acquisition of goods and services. Solishand Semantic (2007).

2.2.2 Public Procurement

Procurement as defined by the Ethiopian Public Procurement and Property Administration
(EPPPA) Manual, is obtaining goods, works, consultancy or other services through purchasing,
hiring or obtaining by any other contractual means. According to Ethiopian Public Procurement
and Property Administration report (2011) 64% of many public organizations‟ budget goes to
procuring public goods and services in Ethiopia.

2.2.3 Project Procurement Management

According to PMKOB (2017), project procurement management includes the processes necessary
to purchase or acquire products, services, or results needed from outside the project team. It also
includes the contacts or purchase orders. Project procurement management also includes
administering any contract issued by outside organization (buyer) that is acquiring the project
from the performing organization (the seller) and administering contractual obligations placed on
the project team by the contract.

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Wysocki (2014), the Project Procurement Management Knowledge Area consists of processes
that span the planning, Launching, Monitoring and Controlling, and Closing process groups. An
effective procurement management life cycle consists of five stages; Vendor solicitation, Vendor
evaluation, Vendor selection, Vendor contracting and Vendor management. Similarly as
mentioned in (PMBOK, 2017), Project procurement has four major processes which include: Plan
procurement, Conduct Procurement, Administer procurements and Close procurements. These
processes interact with each other and with the processes in the other knowledge areas.
Whereas, Fleming (2003) emphasize the benefit of categorizing project procurements since not all
project procurement are created equal. Some purchases are big, others small. Some are complex,
while most are routine. Some procurements carry high risks, while others have only minimal or
perhaps no risks at all. Therefore it is a good practice to place all procurements into generic
categories in order to manage project procurement differently, according to their complexity, their
risks, and their unique characteristics.

2.2.4 Project Procurement Management Process

The project procurement cycle reflects the procurement activities from the decision to purchase
the material or service through and closing of procurement contracts. According to PMBOK
(2013), states Project procurement management contains four processes which are, procurement
planning, conducting procurement, control procurement and closing procurement. Wysocki
(2014), Fleming (2003) and PMBOK, (2000), identified six phases of project procurement
management namely procurement planning, solicitation planning, solicitation, source selection,
contract administration and contract closeout. On which this literature will use the process project
procurement management PMBOK (2013).
According to PMBOK (2013), when project procurement exists, the buyer of an item for the
project is assigned to the project team and that the seller is organizationally external to the project
team. Another assumption on this regard is that a formal contractual relationship will be
developed and exists between the buyer and the seller.

2.2.5 Project Procurement Planning

Martha citing Basheka (2008) define procurement planning as a process of determining the
procurement needs of a project and the timing of their acquisition and their funding such that met
the projects need as required in an efficient way. Plan Procurement Management is the process of
documenting project procurement decisions, specifying the approach, and identifying potential

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sellers (PMBOK, 2013). Care need to be taken at this stage since other activities of the project
procurement implementation decisions emanates from its planning document.
The purpose of project procurement plan is to determine whether to acquire outside support, and if
so, it determine what to acquire, how to acquire it, how much is needed, and when to acquire it.
Morris et.al (2007) sates procurement planning used to identify factors in the decision, make-or
buy analysis and contract type selection of the project procurement. According to Laby et.al
(2016), Project procurement planning identifies the items that are needed to procure, define the
process for acquiring those items and finally schedule the time. Kerzner (2009), procurement plan
is the first step for planning purchases and acquisitions which used to answer the following; what
to procure, when and how, what are my sources, should I make or buy and if suppliers are not
qualified, how I shall qualify those questions.
Different authors describe what issues needed to be addressed in procurement planning process.
According to PMBOK (2013), procurement plan use project management plan, requirements
documentation, risk register, activity cost estimates, stakeholder register, enterprise environmental
factors, and organizational process asset as an input. Using make-or-buy analysis, expert
judgement, market research and meeting as technique and tool to produce an output of
procurement management plan, procurement statement of work, procurement documents, source
selection criteria, make-or-buy decisions, change requests and project documents updates.
Kerzner (2009), procurement plan includes defining the need for the project, development of the
procurement statement of work, specifications and work breakdown structure, performing a make
or buy analysis, laying out the major milestones and the timing/schedule, determining if long lead
procurement is necessary, cost estimating including life-cycle costing, determining whether
qualified sellers exist, identifying the source selection criteria, preparing a listing of possible
project/procurement risks (i.e., a risk register), developing a procurement plan and obtaining
authorization and approval to proceed.
The plan required to define items to be procured with justification statements and timelines, type
of contract to be used, risks associated with procurement management, how procurement risks
will be mitigated, determining costs and if/how they‟re used as evaluation criteria, any
standardized procurement templates or documents to be used, how multiple suppliers will be
managed if applicable, contract approval process, decision criteria, establishing contract
deliverables and deadlines, how procurement and contracts are coordinated with project scope,
budget, and schedule, any constraints pertaining to procurement, direction to sellers on baseline
requirements such as contract schedules and work breakdown structures (WBSs), vendor

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management, identification of any prequalified sellers if applicable and performance metrics for
procurement activities (www.projectmanagementdocs.com).
Koväcs (2004), Procurement management plan sets the procurement framework for the project
that will serve as a guide for managing procurement throughout the life of the project and updated
will be possible as acquisition needs change.

2.2.6 Conduct Project Procurement

Conduct procurements is the process of obtaining sellers response, selecting a seller and awarding
a contract. On major procurement items, the overall process of requesting responses from sellers
and evaluating those responses can be repeated. A short list of qualified sellers can be established
based on a preliminary proposal (PMBOK, 2013).
Once the requirements are identified and a procurement plan has been prepared, a requisition form
for each item to be procured is sent to procurement to begin the procurement or requisition
process (Kerzner, 2009).
According to Richardson (2015), the major components in conducting procurement are making
contact with perspective vendors to establish interest in bidding, receiving seller responses from
Statement of Works and selecting preferred vendors, negotiating contracts with preferred vendors
and communicating status to various stakeholders and processes.
The inputs applied in conducting procurement are procurement management plan procurement
documents, source selection criteria, seller proposals, project documents, make-or-buy decisions,
procurement statement of work, organization process assets. Through tools and techniques of
bidder conference, proposal evaluation techniques, independent estimates, expert judgment,
advertising, analytical techniques and procurement negotiations outputs will be obtained as select
seller, agreements, resource calendars, change requests, project management plan updates and
project documents updates PMBOK (22013).
Once the procurement targets are identified and the class of the activity is chosen, the next step is
to seek out sellers the goal is to obtain an acceptable response from the seller and from this obtain
sufficient information to select a vendor. For which Procurement documents are used to solicit
proposals from prospective sellers (PMBOK, 2000). Richardson (2015), states that the typical
procurement documents are: Requests for information (RFI), Requests for proposals (RFPs),
Requests for quotation (RFQ), Invitations for bid (IFB) and Invitation to negotiation (ITN) where
these documents are referred to as a bid document a way of solicitation. (Darnall& Preston, 2012).
They define solicitation as the process of requesting a price and supporting information from

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bidders. Solicitation involves obtaining responses (bids and proposals) from prospective sellers on
how project needs can be met (PMBOK, 2000).
Richardson (2015) defines Requests for Information (RFI) as a formatted seller response that is
intended to allow vendors to uniformly describe how their solutions meet the functional and non-
functional requirements. The Request for Information is frequently used when you have little
knowledge of exactly what is available on the commercial market or you can‟t identify vendors
who have the specific capability you are looking for (Wysocki, 2014).
According to Frame (2002), Request for proposal (RFP) provides bidders with the guidelines they
need to prepare a proposal as Bardon (2006), states it as a request of detailed report on how a job
will be done and often who (generically or specifically) will be doing the work. A request for a
proposal accounts for price but focuses on meeting the project quality or schedule requirements.
The process of developing a proposal in response to a RFP can be very expensive for the bidder,
and the project team should not issue a RFP to a company that is not eligible to win the bid
(Darnall& Preston, 2012).
A Request for Quotation (RFQ) is used to request a rate for professional services (Bardon, 2006)
for those items that are standard, off the shelf, and relatively low in price, a RFQ is the most
desirable document (Richardson, 2015). A request for quote focuses on price. The type of
materials or service is well defined and can be obtained from several sources (Darnall& Preston,
2012).
Invitation to Negotiation (ITN) is a document with a purpose to create a control structure for
technical, legal, and financial negotiation areas. It aids in comparative evaluation of multiple
vendor responses (Richardson, 2015).
Invitation for Bid (IFB) is used when procurement items are standard, but high in price. All items
are clearly specified by a SOW. The IFB notifies the potential vendors about the existence of the
project by advertising which is called open competitive selection, anyone who is interested in and
qualified may want to submit a bid. On the other hand, closed competitive selection is where
private organizations have an acceptable bid list of potential vendors and are made aware of the
project. Only those invited to bid in this manner are allowed to bid on the project (Richardson,
2015). In addition Bardon (2006), states that IFB, provides to request one price for total job,
perhaps with a breakdown or with rates for specific extras. In all during IFB process, only selected
companies are allowed to bid (Kerzner, 2009). In addition, to this to build a list of potential
vendors Wysocki (2014) suggests asking previous vendors who have worked with the
organization in the past may be good sources for your current project, or they may be able to

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recommend other vendors who can meet the specific needs of this project, renting a targeted list or
attending trade shows.
According to PMBOK (2000), one of the tools and techniques used in conducting procurement is
bidding conferences, which are meetings with prospective sellers prior to preparation of proposal.
They are used to ensure that all prospective sellers have a clear, common understanding of the
procurement as all potential sellers must remain to have equal standing during this process it‟s
used so that no single bidder has more knowledge than others (Kerzner, 2009).
On complex procurements, where source selection will be made based on seller responses to
previously defined weighted criteria, a formal Proposal evaluation review process will be defined
by the buyer‟s procurement policies. The evaluation committee will make their selection for
approval by management prior to the award (PMBOK, 2013).
The evaluation of proposals may be accomplished by a multidiscipline review team with expertise
in each of the areas covered by the procurement documents and proposed contract (PMBOK,
2013). The project team evaluating the proposal must include people with the expertise to
understand the technical aspects of the various proposal options and the value of each proposal to
the project. On more complex projects, the administrative part of the proposal is evaluated and
scored by one team, and the technical aspect of the proposal is evaluated by another team. The
project team combines the two scores to determine the best proposal for the project (Darnall and
Preston, 2012).
For many procurement items, the procuring organization may elect to either prepare its own
independent estimate, or have an estimate of costs prepared by an outside professional estimator,
to serve as a benchmark on proposed responses. Significant differences in cost estimates can be an
indication that the procurement statement of work was deficient, ambiguous, and/or that the
prospective sellers either misunderstood or failed to respond fully to the procurement statement of
work (PMBOK, 2013).
According to Wysocki (2014), selecting the vendor is a critical decision and Frame (2002), states
that the principal objective of source selection is to identify who will carry out the contracted
work. Obviously, many factors must be taken into consideration before this issue can be resolved.
The size of the project, the complexity of the work to be done, risk, and procurement rules help
determine what sources we select. For small, simple efforts, informal source selection procedures
are followed.
Richardson (2015), once bids have been received from potential sellers, the process moves to
selection. In most cases, seller selection criteria are directly related to the critical success factors
of the project and these include cost, previous business relationship experience with the seller,

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industry experience, qualification of seller employees, demonstrated understanding of the
requirement, financial capacity, technical ability and alliances, industry ranking of its products,
and so on.
In addition, for each bid, the qualifications of the proposer‟s personnel must be assessed and
noted. Similarly, evaluations must be made of work plans, management capabilities, proposed
solutions, proposed costs, and many other factors (Frame, 2002).
In all Wysocki (2014), suggests that whatever criteria are in use, it must remain the same for all of
the vendors. With an objective to ensure that the evaluation of all responses is consistent,
objective, and comprehensive.
Kerzner (2009), relates the evaluation criteria to reflect the selected contract award strategy,
which is typically either a price-based award strategy or best value award strategy. The priced-
based award strategy is used when the contract will be awarded to the lowest priced, technically
acceptable proposal.
The best-value award strategy is used when the contract may be awarded to either the lowest
priced, technically acceptable offer or a higher priced proposal offering a higher level of
performance. During a best-value source selection, the procuring organization conducts trade-offs
among price, performance, and other non-price factors to select the proposal that offers the overall
best value to the buyer.
In addition, the eligibility of a supplier is determined by the ability to perform the work in a way
that meets project requirements and demonstrates financial stability. Ability to perform the work
includes the ability to meet quality specifications and meet the project schedule. The project team
investigates the potential suppliers to assure they have the capacity and the track record of
meeting deadlines before they are included on the bidder‟s list (Darnall and Preston, 2012).
According to Kerzner (2009), selecting the appropriate seller is not necessarily left exclusively to
the evaluation criteria. A negotiation process can be part of the selection process because the
buyer may like several of the ideas among the many bidders and then may try to have the
preferred seller take on added work at no additional cost to the buyer.
Frame (2002), once a decision is made to accept the offer submitted by one bidder. Then a
detailed contract, based on the offer contained in the proposal, must be negotiated, drafted, and
signed. Akhter (2014), a project contract is a formal documents between two parties and the
principle endeavour of procurement management. PMBOK (2013), a contract represents a
mutually binding agreement that obligates the seller to provide something of value and obligates
the buyer to provide monetary or other valuable compensation. To ensure this Callahan and
Brooks (2004), advices to be sure that the vendor specify deliverables, dates, and costs in detail.

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That is, know what you are receiving, when, and what it will cost you. As well a contract should
be formal and in writing and should help reduce project risk (Akhter , 2014).

2.2.7 Control Project Procurement

According to PMBOK (2017) Control procurement is the process of managing procurement
relationships, monitoring contract performance, and making changes and correction as needed.
Both the buyer and the seller will control the procurement contract for similar purposes.
Each must ensure that both parties meet their contract obligation and that their own legal rights
are protected. The administer contracts process ensures that the seller‟s performance meets
procurement requirements and that the buyer performance according to the term of the legal
contract. Control procurement use project management plan, procurement documents, agreements,
approved change requests, work performance reports and work performance data as an input to
produce an output on work performance information, change requests, project management plan
and updates, project documents updates and organizational process assets updates using contract
change control system, procurement performance reviews, inspections and audits, performance
reporting, payment systems, claims administration and records management system as techniques
and tools (PMBOK, 2017).
It is important to gather performance status from different appropriate stakeholders of the project
to discuss on the progress, risks, problems and ensuing tasks of procurement to monitor and report
the progress and performance status report of sellers (Kerzner, 2009). According to Kuipers, et al.
(2016/2017), it is about the measurement and evaluation of mutually agreed performance
indicators between buyers and sellers. It consists of sending out, collecting, measuring,
aggregating and evaluating performance data based on the predefined performance criteria and
creating specific supplier dashboards.
Changes in project scope are inevitable (Fleming, 2003). If this is the case, it is important to
consider the requirement change request and require project managers to implement process to
keep changes managed and controlled (PMBOK, 2013). Kerzner (2009), also added up majority
of contract administrating time spent in handling changes.
Impact analysis required to be conduct before accepting or rejecting any change in requirement to
minimize its influence on the time, cost and performance of the project as a whole (Wysocki,
2014). He also suggested members of both parties must review and agree on change requests for
approval of change, and must be communicated to the prospective stakeholders. According to
Fleming (2003), project procurement requires formal change control procedure including
identification of people who have authorization to make change. According to PMBOK (20017),

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approved change requests can include modifications to the terms and conditions of the contract,
including the procurement statement of work, pricing, and descriptions of the products, services,
or results to be provided which require formally documented in writing and approved before being
implemented.

2.2.8 Closeout Project Procurement

Settles all open contractual issues, claims and close out each procurement (Fleming, 2003). The
key benefit of this process is that it documents agreements and related documentation for future
reference (PMBOK, 2017).
Formally closing the contract is the final step in the procurement process. In this step, the buyer
verifies that all tasks and requirements defined in the contract have been produced and the
contract is completed (Richardson, 2015).
According to Morri et.al (2007), contract closeout function involves contract documentation, steps
in the claims process, termination of contracts, and lessons learned.
Wysocki (2014), point out there should be a clear understanding of when the project is finished,
state what the final product of the project is to be, who is to determine if it has been delivered, and
what is to be done with any open issues. Wysocki (2014) and Fleming (2003), also recommend
keeping all the necessary information‟s after the contract closed out for future projects.

2.3 Measurement of Effective Project Performance

According to Brown and Hyer (2010), effective project implementation or simply put, project
success can be measured on the basis of time, cost and quality (performance), commonly known
as the triple constraint. These three factors represent the Key Performance Indicators (KPIs). To
establish whether a project has been effectively implemented, or better still, if the project has been
successful, one has to go back to the initial project goals of time, cost and quality (performance)
and be able to measure the extent of their individual achievement. Brown and Hyer‟s triple
constraint model is premised on the principle of interdependency whereby each constraint affects
the others. For example, if a project requires more time, the cost is likely to rise. Likewise, a
higher performance may lead to increased project cost. They further argue that whereas there have
been widespread project failures; the world has also witnessed remarkable project successes.
According to Frese (2003), a successful project must be on time, on budget and deliver quality
(features and functions). Anything less will be either a failed project or a challenged project. Thus
the envisaged initial project cost, time and project quality (performance) are the three fundamental
cornerstones for measuring the effectiveness of any project.

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 2.4 Empirical Literature Review of the Study
Eriksson and Westerberg (2012) conducted a study with a purpose to increase the understanding
of how chosen procurement procedures affect project performance. The methodology applied for
the study involved a comprehensive literature review including both procurement related factors
and criteria of construction project performance. The study started by proposing that collaborative
procurement procedures influence project outcomes in a positive way on which it revealed that
problems in construction projects are linked to inadequate procurement procedures. They
suggested that in order to achieve efficient governance of construction projects a systemic and
holistic approach to procurement procedures is crucial.
Similarly, a research that was conduct by Nicholaus William (2018), with the purpose to assess
the influence of procurement practices on performance of construction projects in Tanzania in the
case of National Housing Corporation (NHC). The research design used was descript-explanatory
which allowed a detailed description and analysis of the variables under study; describing and
presenting their characteristics and explaining their relationship without manipulation. The target
population composed of 60 employees from different departments. The study used questionnaires
as the primary research instrument. The data was coded as per the objectives to give distinct
differences and multivariate regression done to look at the relationship of variables. Presentation
also was done through their calculated mean, frequency, standard deviation and the correlation
analysis of the data collected. The study found that indeed various procurement practices
influence performance of construction projects in NHC. The supplier selection was found to
reduce conflict of interest between the suppliers and the management of the organization and in
the process influence productivity of the staff. The study further revealed that contract monitoring
and control reduce risks and triggers off an effort to search for solutions to the identified threats to
the project success.
The study conclude that to a great extent the performance of construction projects is being
influenced by adaptation of procurement practices, the study recommended that resources need to
be more utilized so as to enable more development and wastage , handle the issue of conflict of
interest between management and outside suppliers when dealing with suppliers selection and
project implementation selection.
Karlsson (2011) conducted a study on project management in Sweden and Ethiopia with the
purpose to identify which successful methods of project management in Swedish projects that are
appropriate to implement in Ethiopia operations and vice versa to increase the efficiency and
minimize the risks in construction projects. The study analyzed qualitatively and data was

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gathered through informal interviews and observations on construction sites. It used to analysis
based on the nine knowledge areas of project management including project procurement
management. The author concluded in Ethiopian construction project experience there is lack of
procurement planning that often causes problems in the production when materials, machines and
parts delivered too late or not at all. Project procurement managers have limited and little
influence and control regards sub-contractors.
The researcher recommends priority should need to be given for the development of procurement
plan together with the priority of budget schedule control.
Anteneh Getahun (2015), conducted study on assessment on procurement planning and
implementation effectiveness in Ethiopia the case of Ministry of Urban Development Housing and
Construction/MUDHCO/. The purpose of the study was to assess the effectiveness of procurement
plan and its implementation practice in Ethiopia taking the case of Ministry of Urban
Development, Housing and Construction (MUDHCo). The main assessment areas were on the
internal factors, including: (i) the process and content of procurement plan and its
implementation, (iii) specification completeness, and (iii) the planning stage price estimation
relation with market realty. The study focuses on, assessing the plan versus the performance of the
past two years, (2012/2013 and 2013/2014). The study deploys descriptive statistical method and
the selection of the respondents was done using stratified random sampling techniques. In
addition, open-ended questions were used by coded. Accordingly, questionnaires were distributed
to potential respondents selected from the target population; and the responses were 95%. Based
on the analysis, the Ministry has a trend in the preparing procurement plan. However, having a
plan by itself does not ensure success; it largely, depends on the extent of implementation. In the
case organization, the procurement plan, specification and bid documents and market price
assessments were found poor and incomplete. Moreover, there was a long delay in the evaluation
of technical documents. Despite, the work programs of the departments had affected much by the
weak performance of procurement functions. Eventually, the study recommends that, the need for
applying a collective effort on developing continuous training programs and vigorously and
closely tracking the plan against the performance to make early corrective action.
Martha (2015), conducted study on effective public procurement management in implementation
of successful public projects in Ethiopia which is a case study on Addis Ababa city government
housing development project office. The study examines the impact of current public procurement
practice on construction of condominium housing, procurement planning, procurement method,
procurement contract administration and the procurement policy.

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The researcher adopted purposive sampling using interview, and questionnaire technique as the
research instrument which was analyzed using descriptive statistics. The researcher recommends
the studied organization to prepare its own procurement policy, procurement planning with
appropriate stakeholders, ensuring long term relationship and the use of electronic recording to
control contract management process.
In all, studies conducted on procurement management related with that of project is scanty and
those studies that have been conducted confirm that different researchers have established and
made a recommendation that will support or enhance one of the procurement management areas.
The different studies did not focus on the process that procurement shall pass through on a project.
Thus, this study will examine the whole process of project procurement management according to
PMBOK (2017) that is procurement planning, conducting, controlling and closing.

2.5 Conceptual Framework of the study

Figure 2.1: Conceptual Framework of the Study

Independent Variables Dependent Variable

Project Procurement
Management practice Ha1

Project Procurement
Planning
Ha2
Project
Performance
Project Procurement
Conducting process Ha3

Ha4
Project Procurement
Monitoring and
control

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 2.6 Research Hypothesis

The following are the research hypotheses:

Ha1: Project Procurement management practice has a significant effect on project performance
of Ethiopia Construction Works Corporation.
Ha2: Project Procurement planning has a significant effect on project performance of Ethiopia
Construction Works Corporation.
Ha3: Project Procurement conducting practice has a significant effect on project performance of
Ethiopia Construction Works Corporation.
Ha4: Project Procurement monitoring and control practice has a significant influence on project
performance of Ethiopia Construction Works Corporation.
.

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 CHAPTER THREE
RESEARCH METHODOLOGY

This chapter explains the research methodologies employed .it included description of the study
areas, research approach, research design, population and sampling, instruments of data
collection, method of data analysis, reliability and validity of the instrument and also include
ethical considerations

3.1 Description of the study Area

This study was conducted in Ethiopia Construction Works Corporation. It is selected due to the
fact that it is the largest public construction corporation in Ethiopia. By appreciating the
importance of Project procurement practice, this study was designed to examine the effects of
project procurement practice on project performance in Ethiopia Construction Works Corporation
has six different sectors of the Corporation, Transportation Infrastructure Construction sector,
Water Infrastructure Construction Sector, Dam and Irrigation Project Management Sector,
Building Technology and construction Sector, Construction Equipment and Machineries
Management Sectors and Corporate property Management and Service Sector. Under each sector
there are several projects are undertaking.

3.2 Research Design

Descriptive research sets out to describe and to interpret what is. It looks at individuals, groups,
methods and materials in order to describe, compare, contrast, classify, analyze and interpret the
entities and the events that constitute the various field of inquiry. It aims to describe the state of
affairs as it exists. On the other hand, explanatory research, aims at establishing the cause and
effect relationship between variables.
Accordingly, the researcher employed descriptive and explanatory research design with which to
describe and explain the project procurement practice process and the relationship between project
procurement practices and overall project performance. Moreover, the contributions of the project
procurement practice management towards the dependent variables were clearly examined.

3.3 Research Approach

Quantitative research is the systematic and scientific investigation of quantitative properties and
phenomena and their relationships.

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The objective of quantitative research is to develop and employ mathematical models, theories
and hypotheses pertaining to natural phenomena. The process of measurement is central to
quantitative research because it provides the fundamental connection between empirical
observation and mathematical expression of an attribute. Creswell (1994) define quantitative
research as a type of research that is explaining phenomena by collecting numerical data that are
analyzed using mathematically based methods. Quantitative research is a study that makes use of
statistical analysis to obtain findings. Its key features include systematic and formal measurement
of phenomena and the use of statistics (Geoffrey and David, 2005). Since this research used
systematic collection and measurement of data as well as application of statistical tools to obtain
the findings, it is a quantitative research.

3.4 Type and source of Data

Both primary and secondary source of data was used for the study.

3.4.1 Primary data

Primary data was collected from respondents of the study using a structured close ended
questionnaire.

3.4.2 Secondary data

Secondary data for the study was collected from different journals, research studies, books,
articles, internet websites and report documents from the company.

3.5 Instruments of Data Collection

Survey study is used as a research technique. Questionnaire is the best survey instrument to
collect quantitative data as it is relatively cheap and easy to administer. Hence, the data for this
research was collected by using Structure questionnaire. Close-end, mainly Likert-scale, questions
was used to collect data from respondents except for questions relates to demographic
characteristics of the respondents. The close end questionnaire was designed on a five-point Likert
scale weighing as 1= Strongly Agree, 2=Agree, 3= Neutral, 4= Disagree and 5= Strongly
Disagree. The reviewed literatures were helping an insight on effect of project procurement
practices process related to project performances. The questionnaires were designed focusing on
the practice of project procurement management and its impact on project performance.

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 3.6 Population and Sampling

3.6.1 Population of the study

According to Komboand Tromp (2006), population as a group of individuals, objects and items
from which samples are taken for measurement. A target population is the aggregate of all cases
that was be straight to some selected set of conditions. In this study total population is the
employees of Ethiopian Construction Works Corporation who are works at the head quarter.
3.6.2 Sampling Technique
Non-probability sampling technique is useful for certain studies that require the researcher to
collect the data from particular individuals that have known how about the studied situation. It
also enables the researcher to choose sample of participant‟s necessary sufficient for the study
(Yalew, 2017).
The sampling type applied on this study was purposive sampling. According to Creswell (2009),
under purposive sampling respondents are chosen based on their convenience and availability.
Thus, for this study samples was selected from individual‟s concerned with the project
procurement practices and project performance management duties for the project through
purposive sampling.

3.6.3 Sample Size

In this study total population is the employees of Ethiopian Construction Works Corporation who
are works at the head quarter. According to information obtained from Human Resource
Department recently there are a total of 518 employees.
The targeted populations of this study were answering the project procurement practices and its
effects on the project performance of Ethiopia Construction Works Corporation at the head
quarter. As sample was selected using purposive sampling respondents was choose based on this
technique, which is related to project procurement practices and project management of the
corporation. In which it would involve the project management staff members, procurement and
supply staff officers and team leaders, planning and business development staff members and
specific individuals who have direct involvement with practice of project procurement practices.
Thus, the sample were consist of respondents from top level management, team leaders, unit leads
and officers those directly engage in procurement and supply practice and project management
functional departments who were engaged in project procurement and project performance
management. According to information obtained from human resource department, there are a

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total of 61 employees in the mentioned departments. Thus 48 respondents were taken as sample
size from the total target population.

3.7 Method of data Analysis and Presentation

The data was collected through the questionnaires it will be analyzed using the Statistical Package
for Social Sciences (SPSS) version 24.0, as well as descriptive statistical data analysis such as
Percentage, frequency, mean and inferential data analysis tools like analysis of correlation and
multiple regressions were used.

3.8 Reliability and Validity of the Instrument

Validity is concern with whether the findings are really about what they appear to be about
(Sounders et. al., 2003). Validity defined as the extent to which data collection method or methods
accurately measure what they will intend to measure (Sounders et. al., 2003).

Reliability test was conducted to check the measuring tools employee ion the study were free from
error, so that the measurement instrument yields a reliable outcome. There are several different
reliability coefficients. One of the most commonly used is called Cronbach‟s Alpha. The
reliability of the two scales of measurement of project procurement practices and project
performance was estimate using the cronbach alpha technique, by which low Cronbach alpha
values mean that items do not capture the same construct and high value of Cronbach alpha
indicates that items effectively measure and reflect the construct. In order to produce a reliable
scale, the Cronbach alpha should be more than 0.70 and any scale with Cronbach alpha less than
this scale should not be considered reliable (Cronbach 1984). The linkert scale questionnaire items
reliability is checked by the Cronbach alpha test using SPSS software, which scored in 0.977 as
described below. Thus, the score supports the presence of good internal consistency among the
items and promise the reliability and acceptability of the items for the study.

Table 3.1 Reliability Statistics of Cronbach-Alpha

Reliability Statistics
Cronbach's N
Alpha of Items
.977 41

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3.9 Ethical Consideration
In the context of research, according to Saunders, Lewis and Thornhill (2001, p.130)“… ethics
refers to the appropriateness of your behavior in relation to the rights of those who become the
subject of your work, or are affected by it”.
The data was collected from those willingness sample respondents without any unethical behavior
or forcefully action. The results of the study were used for academic purpose only and response of
the participants is confidential and analyses in aggregate without any change by the researcher. In
addition, the researcher respects the work of previous investigations or study and cited
appropriately those works that has been taken as a basis.

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 CHAPTER FOUR
RESULTS AND DISCUSSIONS

This chapter of the research paper incorporates four parts. The first part discusses about the
sample characteristics of the respondents is presented using descriptive statistic. Then correlation
analyses and regression analysis, as well as discussion of the result presented accordingly.

4.1 Sample and Response rate

After distributing 48 questionnaires for respondents, a total of 44 answered questionnaires were
retrieved, which is 91.7% of the total distributed questionnaires. After checking the retrieved
questionnaires, the questionnaires were valid for statistical analysis analyzed.

4.2 The General Background of the Respondents

In the following table, the demographic information of the respondents is presented. This includes
gender, age, education, department, position and years of employment. To get information on
these issues the respondents were asked structured question and their responses are presented and
analysed as follows. The results of this survey processed using the SPSS software.

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Table 4.1 Characteristics of Respondents

Gender of respondents
Frequency Percent Valid Cumulative
Percent Percent
Male 27 56.3 61.4 61.4
Female 17 35.4 38.6 100
Valid Total 44 91.7 100
Missing 4 8.3
Total 48 100
Age of respondents
<=30 14 29.2 31.8 31.8
31-40 22 45.8 50 81.8
Valid 41-50 5 10.4 11.4 93.2
>=51 3 6.3 6.8 100
Total 44 91.7 100
Missing System 4 8.3
Total 48 100
Education of the respondents
Diploma 2 4.5 4.5 4.5
BA/BSc Degree 31 70.5 70.5 75.0
Valid MSc/MA 11 25.0 25.0 100
Total 44 100 100
Missing System 4
Total 48
Department of the respondents
Procurement unit 72.7 72.7 72.7
Valid 32
Project 27.3 27.3 100
Management 12
Total 44 91.7 100
Missing System 4 8.3
Total 48 100
Responsibility of the respondents
Manager 1 2.1 2.1 2.3
Team Leader 11 22.9 25 27.3
Valid Unit Lead 7 14.6 15.9 43.2
Officer 25 52.1 56.8 100
Total 44 91.7 100
Missing Total 4 8.3
Total 48 100
Years of Employment of respondent
<=3 years 11 22.9 25.0 25.0
4-5 years 10 20.8 22.7 47.7
7-10 years 6 12.5 13.6 61.4
11-15 years 9 18.8 20.5 81.8
>=16 years 8 16.7 18.2 100.0
Total 44 91.7 100
Missing Total 4 8.3
Total 48 100
Source: Survey Result 2020

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A total of 44 questionnaires were completed and used in data analysis representing 91.7 percent of
response rate. In order to generally describe the characteristics of the respondent; gender, age,
educational back ground, Department, and present responsibility were part of the general
information questions. Majority of the respondents were males which were 56.3% and female
respondents were 35.4%.
As to the age of the subject (29.2%) fourteen of them were <=30 years; twenty-two (45.8%) of
them were between 31& 40 years, five (10.4%) of them were between 41 &50 years, three (6.3%)
of them were greater or equal to 50. This shows that the greater number of respondent are found
between 31-40 years that is 22(45.8%).
The educational level of respondents show that 4.5% of them diploma completed, 70.5% of them
degree completed and 25% of them are masters holder. This implies that, among the total number
of respondents, most of them are BA/BSC holder in this regards.
Regarding to the department of the respondents 72.7% of the respondents were Procurement and
supply unit and 27.3% of the respondent were from project management.
Concerning the responsibility of the respondent in each department, 2.1% were Manager, 22.9%
were team leaders, 14.6% were Unit Leads and 52.1% were officers.
Regarding the experience of the respondent employees, eleven (22.9%) were less and equals to
three years, ten (20.8%) were four up to six year, six (12.5%) of the respondent employees are in
the range of seven up to ten years, nine (18.8%) of the respondent were between eleven up to
fifteen years and the remaining eight (16.7%) of the respondents were greater and equal to sixteen
years‟ experience.

4.3 Reliability Test Result

The reliability test is an important instrument to measure the degree of consistency of an attribute
which is supposed to measure. As stated by Mahon and Yarcheski (2002) the less variation of the
instruments produces in repeated measurements of an attribute the higher reliability. Reliability
can be equated with the stability, consistency, or dependability of measuring tool. Cronbach‟s
alpha is one of the most common accepted measures of reliability. It measures the internal
consistency of the items in a scale. It indicates that the extent to which the items in a questionnaire
are related to each other. It also indicates that whether a scale is one-dimensional or
multidimensional. The normal range of Cronbach‟s coefficient alpha value ranges between 0-1
and the higher value reflects a higher degree of internal consistency.

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Different authors accept different values of this test in order to achieve internal reliability, but the
most commonly accepted value is 0.70 as it should be equal to or higher than to reach internal
reliability (hair et al., 2003).
Table 4.2: Cronbach’s Alpha Result
Variables Cronbach’ Alpha Number of Items

Project Procurement Management 0.791 4

Project Procurement Planning 0.894 10
Project Procurement Conducting 0.907 9
Project Procurement Monitoring and Control 0.916 9
Project Performance 0.887 9
Overall Reliability 0.977 41

Source: Survey Result 2020

Project Procurement Practice was measured using four dimensions listed in the questionnaire,
which were combined into a single scale (Cronbach‟s alpha = 0.944). Based on the result, all the
variables in constructed namely: Project Procurement management (Cronbach‟s alpha = 0.791),
Project Procurement Planning (Cronbach‟s alpha = 0.894), Project Procurement Conducting
(Cronbach‟s alpha = 0.907) and Project Procurement Monitoring and Control (Cronbach‟s alpha =
0.916) Project performance (Cronbach‟s alpha = 0.887) was kept for further analyses. An alpha of
0.70 or greater should be considered as adequate to develop a new questionnaire.

4.4 Descriptive Analysis of Variables

Descriptive statics were used to describe the basic features of the data in a study. It provides
simple summaries about the sample and the measures. The researcher used descriptive Statistics to
present quantitative descriptions in a manageable form; each descriptive statistic reduces lots of
data into a simple summary (Gelman, 2007). The mean scores have been computed for all the
project procurement practice variables by equally weighting the mean scores of all the items each
dimension. Respondents were asked to rate their insight / observation on a five-point Likert type
scale ranging from 1 being strongly disagree to 5 strongly agree for project procurement practice
dimensions. The result is presented in the Table below.

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 Table 4.3 Descriptive Statistics of Project Procurement Practice Dimensions
Descriptive Statistics
N Mean Std. Deviation
44 3.943 0.673
Project Procurement Practice Management
44 4.102 0.534
Project Procurement Planning
Project Procurement Conducting Process 44 3.997 0.573
44 4.116 0.586
Project Procurement Monitoring and controlling
44
Valid N (list wise)
Source: Survey Result, 2020

As it can be seen from table 4.8 above the mean score values of project procurement practices
ranges between 4.116( mean score value of project procurement monitoring and control) with
standard deviation of 0.586 and 3.943 (means score value of project procurement practice
management) with standard deviation of 0.673. From these findings project procurement
monitoring and controlling has the highest mean score which implicates project time, budget,
quality, risk and transparency an important determinant in competitive project procurement
monitoring and controlling.

Project Procurement Practice Management

Table 4.4: Descriptive Statistics of Project procurement Practice management
Descriptive Statics
N Mean Std. Deviation
Project teams are aware of the importance of 44 3.95 0.834
project procurement management in the ECWC.
Documented policies & procedures on 44 4.00 0.778
procurement management in ECWC.
A standardized project procurement 44 3.95 0.714
management process in place.

A procedure that is set for project teams make a 44 3.86 0.765

request for goods &services required.
Valid N (listwise) 44
Source: Survey Result, 2020

Descriptive statics especially means, and standard deviation was used to evaluate the effect of
project procurement practice management on project performance. Under project procurement
practice management, there were about four specific statements in the form of Likert scale. Each
statement focused on the theoretical ground of project procurement practice and how much it

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influences the project performance of Ethiopian Construction Works Corporation. The output of
the sample statistics shows that having documented policies and procedures on procurement
management in ECWC rate score higher mean of 4.00 and a procedure that is set for project teams
make a request for goods and services required has the lowest mean score of 3.86. The overall
mean score of project procurement practice management was calculated to be (Mean=3.943) with
the standard deviation (0.673) which is the lowest among the other dimensions.

Project Procurement Planning

Table 4.5: Descriptive Statistics of Project Procurement Planning
Descriptive Statistic
N Mean Std. Deviation
Improves performance. 44 4.61 0.579
Increase number of orders 44 4.45 0.697
Increases number of projects completed on time. 44 4.16 0.805
Meeting organization objectives 44 4.14 0.824
Meeting performance indicators 44 4.18 0.843
Reduces conflict of interest 44 3.95 0.834
Reduces costs. 44 4.00 0.778
Reduces number of complaints. 44 3.95 0.714
Reduces number of risks. 44 3.86 0.765
Utilization of resources. 44 3.70 0.701
Valid N (list wise) 44
Source: Survey Result, 2020

As shown in the table above, project procurement planning was measured by ten items the mean
score of which ranged between respondents who said the project procurement planning improves
performance 4.61 and respondents who said project procurement planning improves utilization of
resources with a mean score of 3.70 respectively. The overall mean score of project procurement
planning was calculated to be 4.102 with the standard deviation (0.534). Therefore, from the
analyzed data it is possible to say that the respondents perceive that ECWC is a corporation that
project procurement planning is reliable to improve project performance, but the practices of
effective utilization of resource effectively do not done properly.

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Project procurement conduct processes.
Table 4.6: Descriptive Statistics of project procurement conduct process.
Descriptive Statistics
N Mean Std. Deviation
Increase number of orders. 44 4.55 0.730
Improve performance. 44 4.41 0.658
Increase number of projects completed on time. 44 4.27 0.788
Increase quality of goods and services. 44 4.14 0.765
Increases reliability. 44 3.86 0.852
Reduce conflict of interest. 44 3.89 0.813
Reduce costs. 44 3.73 0.788
Reduces number of complaints 44 3.64 0.780
Reduce number of risks. 44 3.50 0.665
Valid N (listwise) 44
Source: Survey Result, 2020

Under project procurement conduct process there are nine statements which were used to test
effect of project procurement conduct process on project performance. From the above statistics
result, the respondents response rate is (Mean=3.997) with the standard deviation (0.573), which
means the response of the respondents to agree up on project procurement conduct process
statement questions. Having the competitive project procurement conducting process increases
number of orders score highest mean of 4.55 and having the reduce number of risks has the lowest
mean score of 3.50.

Project Procurement monitoring and control.

Table 4.7: Descriptive Statics of Project Procurement monitor and control.
Descriptive Statics
N Mean Std. Deviation
Continuous improvement. 44 4.57 0.587
Achieving value for money. 44 4.41 0.726
Increases number of projects completed on time. 44 4.30 0.765
Improve quality 44 4.32 0.674
Improves transparency. 44 4.05 0.834
Increases level of transparency 44 4.00 0.778
Reduces risks. 44 3.93 0.759
Reduces number of projects uncompleted. 44 3.84 0.745
Increase organization reputation. 44 3.64 0.718
Valid N (listwise) 44
Source: Survey Result, 2020
As shown in the table above, project procurement monitoring and control was measured by nine
items the mean score of which ranged between respondents who said ECWC project procurement
monitoring and control continuous improvement of projects performance 4.57 and respondents
who believed ECWC project procurement monitoring and control increase reputation in the

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corporation with a mean score of 3.64. The overall mean score of project procurement monitoring
and control was calculated to be 4.116 with standard deviation of 0.586. Therefore, from the
analyzed data it is possible to say that the respondents perceive that ECWC project procurement
monitoring and control is impact on continuously improve projects but the practice of project
procurement monitoring increase organization reputation do not done properly.

Performance of Project
Table 4.8: Descriptive Statistics of project performance
Descriptive Statistics
N Mean Std. Deviation
Projects in ECWC are completed on time. 44 3.43 0.579
Projects in ECWC are completed as per their budget. 44 3.38 0.697
Projects in ECWC are done as per their scope. 44 4.34 0.713
ECWC has a clear policy on project quality. 44 4.36 0.613
Value for money on projects implemented. 44 3.98 0.821
Efficiently use of materials. 44 3.00 0.778
Stakeholder‟s involvement at project implementation. 44 3.95 0.714
Fully realized stakeholder‟s needs and expectations. 44 3.86 0.765
ECWC has a clear policy on projects. 44 3.68 0.674
Valid N 44
Source: Survey Result, 2020
Like a procurement practices; here the researcher provides a like hurt scale questions to measure
respondent‟s agreement on performances of projects in ECWC i.e. In this section the researcher
instructs respondents to give their level of agreement by number from 1 to 5; here those numbers
indicate 1 is “strongly disagree”, 2 indicates “disagree”, 3 indicates “not sure”, 4 indicates “agree”
and 5 indicates “Strongly agree”. Therefore, the mean scores of 0-1.5 means that the respondents
strongly disagree with the measurement variable presented in this study, between 1.50 to 2.50
means they are disagreeing, 2.50 to 3.50 means the respondents were neutral or not Sure, for a
mean score of 3.50-4.50 respondents have agreed by the attribute presented by each procurement
practices and for a mean over 4.50, respondents have strongly agreed by their futures. Therefore,
table 4.12 above indicates, respondents are not sure on the statement efficiently use of materials,
complete projects on time and as per the budget and they are agreeing on the statements projects
done in ECWC as per the scope, ECWC has a clear policy on project quality, value for money on
projects implemented, stakeholder‟s involvement at project implementation, fully realized
stakeholder‟s needs and expectations and ECWC has a clear policies on projects.

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 4.5 Correlation Analysis
The correlation between independent and dependent variables was analyzed using Statistical
Package for Social Science (SPSS). The below correlation matrix shows the correlation matrix
shows the correlation between variables in the questionnaire with a Pearson Correlation
coefficient. Table 4.9 shows the relationship among the variables considered in the questionnaire.
Table 4.9: Pearson Correlation Matrix
Correlation
Project Project Project Project Overall
procurement procuremen procuremen procuremen project
management t planning t conducting t monitoring performance
Project procurement Pearson
management Correlation 1 0.895** 0.836** 0.848** 0.929**
Sig. (2-tailed)
.000 .000 .000 .000
N
44 44 44 44 44
Project procurement Pearson
planning Correlation 0.895** 1 0.848** 0.912** 0.962**
Sig. (2-tailed)
.000 .000 .000 .000
N
44 44 44 44 44
Project procurement Pearson
conducting Correlation 0.836** 0.848** 1 0.811** 0.883**
Sig. (2-tailed)
.000 .000 .000 .000
N
44 44 44 44 44
Project procurement Pearson
monitoring Correlation 0.848** 0.912** 0.811** 1 0.962**
Sig. (2-tailed) .000 .000 .000 .000
N
44 44 44 44 44
Overall project Pearson
performance Correlation 0.929** 0.962** 0.883** 0.962** 1
Sig. (2-tailed)
.000 .000 .000 .000
N
44 44 44 44 44
** Correlation is significant at the 0.01 level (2-tailed)
Source: Survey Result, 2020

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Bivariate Correlation tests weather the relationship between two variables is linear (as one
variable increases, the other also increases or as one variable increases, the other variable
decreases). In addition to this the Pearson product moment correlation coefficient is a measure of
the linear correlation between two variables X and Y, giving a value between +1 and -1 inclusive
where 1 is total positive correlation, 0 is no correlation, and -1 is total negative correlation
(Pedhazur, 1982). To further more explain the Pearson‟s correlation; when Pearson‟s correlation;
when Pearson‟s r is close to 1, this means that there is a strong relationship between the two
variables. This means that changes in one variable are strongly correlated with in the second
variable. When Pearson‟s r is close to 0, this means that there is a weak relationship between the
two variables. This means that changes in one variable are not correlated with changes in the
second variable (Malhotra, 2007). The classification of the correlation coefficient (r) is as follows:
-0.1 – 0.29 is weak; 0.3 – 0.49 is moderate; and > 0.5 is strong (Field, 2005). On the other hand,
when Pearson‟s r is positive (+), this means that as one variable increases in value, the second
variables also decrease in value. This is called a positive correlation. When Pearson‟s r is negative
(-), this means that as one variable increases in value, the second variable decreases in value. This
is called a negative correlation (Field, 2005).
Sig (2-Tailed) value: this value tells that whether there is a statistically significant correlation
between two variables or not. If the Sig (2-Tailed) value is greater than 0.05, the researcher can
conclude that there is no statistically significant correlation between two variables. That means,
increases or decreases in one variable do not significantly relate to increases or decreases in the
second variable (Pedhazur, 1982).
The above correlation matrix indicates that project procurement practices were positively and
strongly correlated with project performance. The highest strong coefficient of correlation in this
research is equally between both project procurement planning and project procurement
monitoring and controlling with project performance (r=0.962, n=44, p ≤ 0.01). It can note that
there is a significant positive relationship between project procurement planning and project
performance. And also it can note that there is a significant positive relationship between project
procurement monitoring and controlling and project performance.
The second highest strong coefficient of correlation is between project procurement management
practices and project performance (r =0.929, n =44, p ≤ 0.01). Hence, there is a significant
positive relationship between project procurement practice management and project performance.
The third highest strong coefficient of correlation is between competitive project procurement
conducting process and project performance (r =0.883, n =44, p ≤0.01). Hence, there is a
significant positive relationship between competitive project procurement conducting process and

37 | P a g e
project performance. Generally, the above correlation matrix shows that all variables are
positively and strongly correlates with the dependent variable.
On the above correlation table, the numbers next to Sig. (2-tailed) shows that all are (.001). The
convention implies that if this value is less than .05, then the correlation is considered to be
significant (meaning that the researcher can be 95% confident that the relationship between
variables is not due to chance). The researcher can connote that there is a significant correlation
between the project procurement practice and overall project performance.

4.6 Regression Analysis

Regression is a technique used to predict the value of a dependent variable using one or more
independent variables (Albaum, 1997). Regression analysis is a statistical tool for the
investigation of relationships between variables. Usually, the investigator seeks to ascertain the
causal effect of one variable upon another. To explore such issues, the investigator assembles data
on the underlying variables of interest and employs regression to estimate the quantitative effect
of the causal variables upon the variable that he/she influences. The investigator also typically
assesses the “statistical significance” of the estimated relationships, that is, the degree of
confidence that the true relationship is close to the estimated relationship (Malhotra, 2007).

4.6.1 Linear Regression Analysis

Meeting the assumptions of regression analysis is necessary to confirm that the obtained data truly
represented the sample and that researcher has obtained the best results (Hair et al., 1998).

4.6.1.1 Multi-Collinearity
One should check for the problem of multicollinearity which is present if there are high
correlations between some of the independent variables. The study checks this with the Variance
Inflation Factor (VIF) which calculates the influence of correlations among independent variables
on the precision of regression estimates. The VIF factor should not exceed 10 and should ideally
be close to one.

Tolerance is an indicator of how much of the variability of the specified independent variable is
not explained by the other independent variables in the model and is calculated using the formula
1–R2 for each variable. If this value is very small (less than 0.10), it indicates that the multiple
correlation with other variables is high, suggesting the possibility of multicollinearity.

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A good regression model must not have a strong correlation among its independent variables or
must not have a multicollinearity problem and that the value of variance inflation factor (VIF)
must have a value between 1 and 10 and the tolerance level should be more than 0.2 (SPSS
Inc,2007).

Table 4.10 Multicollinearity Test

Coefficientsª
Collinearity Statistics
Model Tolerance VIF
1 Project procurement Management .176 5.697
Project procurement planning .108 9.232
Project procurement conducting process .247 4.043
Project procurement monitoring .160 6.242
a. Dependent Variable: Overall Project Performance
Source: Survey Result, 2020
As shown on the table above, based on the coefficients output (collinearity statistics), the obtained
variance inflation factor (VIF) for all independent variables was found to be between 1 and 10,
which means that there is no multicollinearity problem.

4.6.1.2 Homoscedasticity
Homoscedasticity is an assumption in regression analysis that the residuals at each level of the
predictor variables have similar variances. That is, at each point along any predictor variable, the
spread of residuals should be fairly constant. For a basic analysis the researcher first plot
*ZRESID (Y-axis) against *ZPRED (X-axis) on SPSS because this plot is useful to determine
whether the assumptions of random errors and homoscedasticity have been met. The graph of
*ZRESID and *ZPRED should look like a random array of dots evenly dispersed around zero. If
this graph funnels out, then the chances are that there is heteroscedasticity in the data. If there is
any sort of curve in this graph, then the chances are that the data have broken the assumption of
linearity.

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Figure 4.1 Scatter Plot

4.6.1.3 Linearity
The linearity of the relationship between the dependent and independent variable represented the
degree to which the change in the dependent variable is associated with the independent variable
(Hair et al., 1998). In a simple sense, linear models predict values falling in a straight line by
having a constant unit change (slope) of the dependent variable for a constant unit change of the
independent variable (Hair et al., 1998). The study checks for patterns in scatter plots of Project
procurement practices against project performance weather they have linear relation and the
assumption have met. From the graph above it can be seen that project performance and project
procurement practices have linear relation.

4.6.1.4 Independent errors

For any two observations the residual terms should be uncorrelated (or independent). This
eventuality is sometimes described as a lack of autocorrelation. This assumption can be tested
with the Durbin–Watson test, which tests for serial correlations between errors. Specifically, it
tests whether adjacent residuals are correlated. The test statistic can vary between 0 and 4 with a

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 value of 2 meaning that the residuals are uncorrelated (Field, 2005). In the Table 4.15 Durbin–
Watson test result value is 1.812, which is so close to 2 meaning that the residuals are
uncorrelated (or independent).

4.7 Multiple Linear Regression Analysis

Linear regression estimates the coefficients of the linear equation, involving one or more
independent variables that best predict the value of the dependent variable (Field, 2005). Multiple
linear regression was conducted in order to determine the explanatory power of the independent
variables (project procurement management, project procurement planning, project procurement
conducting process, project procurement monitoring) to identify the relationship and to determine
the most dominant variables that influenced the project performance. The significance level of
0.05 with 95% confidence interval was used. The reason for using multiple regression analysis
was to assess the direct effect of project procurement practice variables on the overall project
performance. The table 4.11 shows the model summary of the regression analysis.

Table 4.11: Model Summary for project performance

Model Summaryb
Model R R Adjusted Std. Error of Change Statistics Durbin
Squar R Square the Estimate R F df1 df2 Sig. F Watson
e Square Change change
Change
1 .993ª .986 .984 .06475 .986 675.116 4 39 .000 1.812
a. Predictors: Project procurement management, Project procurement planning, project
procurement Conducting process, and Project procurement monitoring.
b. Dependent Variable: Overall Project performance.
Source: Survey Result, 2020

The above regression model presents how much of the variance in the measure of Project
Performance is explained by the underlying project procurement practice variables. Furthermore,
to explain R, R2, adjusted R2 and Durbin–Watson in detail: -
R - Indicates the value of the multiple correlation coefficient between the predictors and the
outcome, with a range from 0 to 1, a larger value indicating a larger correlation and 1 representing
an equation that perfectly predict the observed value (Pedhazur, 1982). From the model summery
(R = 0.993) indicates that the linear combination of the four independent variables (project
procurement management, project procurement planning, project procurement conducting process
and project procurement monitoring) strongly predict the dependent variable (project
performance).

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R Square (R²) - indicates the proportion of variance that can be explained in the dependent
variable by the linear combination of the independent variables. In another word R² is a measure
of how much of the variability in the outcome is accounted for by the predictors. The values of R²
also range from 0 to 1 (Pedhazur, 1982). The linear combination of project procurement practices
variables or predictors‟ i.e. project procurement management, project procurement planning,
project procurement conducting and project procurement monitoring explains 98.6% of the
variance in project performance and the remaining 1.4% is explained by extraneous variables,
which have not been included in this regression model.
Adjusted R Square (R²) - The adjusted R² gives some idea of how well the model generalizes
and its value to be the same, or very close to the value of R². That means it adjusts the value of R²
to more accurately represent the population under study (Pedhazur, 1982). The difference for the
final model is small (in fact the difference between R² and Adjusted R² is (0.986 −0.984= 0.002)
which is about 0.2%. This shrinkage means that if the model were derived from the population
rather than a sample it would account for approximately 0.2% less variance in the outcome.
Durbin-Watson - The Durbin–Watson statistic expresses that whether the assumption of
independent errors is acceptable or not. As the conservative rule suggested that, values less than 1
or greater than 3 should definitely raise alarm bells (Field, 2005). So that the desirable result is
when the value is closer to 2, and for this data the value is 1.812, which is so close to 2 that the
assumption has almost certainly been met.

Table 4.12: ANOVA of project performance

ANOVAª
Sum of Mean
Model Squares Df Square F Sig.

Regression 11.321 4 2.830 675.116 .000b

1 Residual .163 39 .004
Total 11.485 43
a. Dependent Variable: Overall project performance.
b. Predictors: project procurement management, procurement planning, project
procurement conducting process, and project procurement monitoring and control.
Source: Survey Result, 2020

The next part of the SPSS output reports an analysis of variance (ANOVA). The summary table
shows the various sum of squares described in the table above and the degrees of freedom
associated with each. From these two values, the average sums of squares (the mean squares) can
be calculated by dividing the sums of squares by the associated degrees of freedom. The most
important part of the table is the F-ratio, which is a test of the null hypothesis that the regression

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 coefficients are all equal to zero. Put in another way, this F statistics tests weather the R²
proportion of variance in the dependent variables accounted for by the predictors is zero and the
table also shows the associated significance value that F-ratio(Field,2009). For this data, F is
675.116, which is significant at P<.0001(because the value in the column labelled Sig.is less than
0.001). This result tells us that there is less than a 0.1% chance that an F-ratio this large would
happen. If the null hypothesis proposed about F- ratio were true. Therefore, we can conclude that
our regression model results in significantly better prediction of project performance and that the
regression model overall predicts project performance significantly well.

4.7.1 The regression coefficient

This study intends to identify the most contributing independent variable in the prediction of the
dependent variable. Thus, the strength of each predictor (independent variable) influencing the
criterion (dependent variable) can be investigated via standardized Beta coefficient.
The regression coefficient explains the average amount of change in the dependent variable that is
caused by a unit change in the independent variable. The larger value of Beta coefficient an
independent variable has, brings the more support to the independent variable as the more
important determinant in predicting the dependent variable.

Table 4.13: Summary of Coefficient on project performance

Unstandardized Standardized 95.0% Confidence Interval for B
Coefficients Coefficient
Model B Std. Error Beta t Sig. Lower Bound Upper Bound

1
(constant) .409 .081 5.026 0.000 .244 .574

Project .104
procurement .175 .035 .228 5.005 0.000 .246
management
project 0.000 .139
procurement .253 .056 .261 4.500 .366
planning
Project .108 .038
procurement .035 .120 3.131 0.000 .178
conducting
Project .296
procurement .381 .042 .433 9.062 0.000 .466
monitoring
Source: Survey Result, 2020

43 | P a g e
The marked column B is the value for the intercept (a) in the regression equation on the first row,
labelled (constant). The numbers below the column „„βeta‟‟ are the values for the regression
coefficients for project procurement management, project procurement planning, project
procurement conducting process, and project procurement monitoring and control. In the multiple
regression, this standardized regression coefficient Bate (β) is useful, because it allows you to
compare the relative strength of each independent variable's relationship with the dependent
variable (Pedhazur, 1982).
The above coefficient table shows the constant beta value (β) and p-value of the variables to
examine the significance of the hypothesis. The significance level of each variable (P-value) is:
.001, .001 .001, .05 and their standardized coefficients are 0.228, 0.261, 0.120 & 0.433
respectively. The p-value of all the independent variables is below 0.05 which implies all have a
significant relationship with the dependent variable (project performance).
Based on these results, the regression equation that predicts overall project performance based on
the linear combination of for project procurement management, project procurement planning,
project procurement conducting process, and project procurement monitoring is as follows:

The regression equation of customer satisfaction

Y =0.409 + 0.228 X1 + 0.261 X2 + 0.120 X3 + 0.433 X4 +e

Where Y= Project Performance
X1 = project procurement management
X2 = project procurement planning
Y =c+0.ttt X1 + 0.uuu
X3 X2 + 0.kkk
= project X3 + 0.mmmX4
procurement +e process
conducting
X4 = project procurement monitoring and control
e = sampling error

4.8 Hypothesis Testing

Hypothesis 1: Project Procurement Practices is a significant effect on project performance

in the case of Ethiopia construction Works Corporation.
The above result indicates, first, the intercept is 0.409, when all independent variables have a
value of zero. Then, moving through the equation, holding project procurement planning, project
procurement conducting process, project procurement monitoring and control remain constant, the

44 | P a g e
project procurement practices management increase the project performance by 0.228 for each
additional project procurement practice management level increment. This implies that a one
percent increase in project procurement practices management results in 22.8 percent increase in
project performance. The p-value for this coefficient is statistically significant (p<.05), meaning
that project procurement practice management is a significant predictor of project performance.
Accordingly, the first hypothesis which states there is a significant and positive relationship
between project procurement management and project performance is supported by the data
collected on this survey as (P< 0.05; β=0.228) hence, the hypothesis is accepted.

Hypothesis 2: Project Procurement Planning is a significant effect on project performance

of Ethiopia construction Works Corporation.
The second hypothesis which states that there is a significant and positive relation between the
project procurement planning and project performance is also supported because the P-value of
project procurement planning which is (P<0.05; β=0.261) hence the project procurement planning
has a significant and positive relationship with project performance, the value of beta (β=0.261)
implies that a one percent increase in project procurement planning result in 26.1 percent increase
in project performance, others factors remaining constant. Thus, the hypothesis is accepted.

Hypothesis 3: Project procurement conducting process is a significant effect on overall

project performance in the case of Ethiopia construction Works Corporation.
The third hypothesis which states, there is a significant and positive relationship between project
procurement conducting process and project performance is also supported because the P-value
which is (p<0.05; β=0.120) hence the project procurement conducting process has a significant
and positive relationship with overall project performance; the coefficient of beta 0.120 which
means that a unit change in project procurement conducting process has the influence to increase
project performance by 12% assuming all other variables constant. Hence, the hypothesis is
accepted.

Hypothesis 4: Project procurement monitoring and control is a significant impact on overall

project performance in the case of Ethiopia construction Works Corporation.
The fourth hypothesis which states, the regression coefficient finding indicates that project
procurement monitoring and control has a significant effect on project performance (P<0.05; β =
0.433). The coefficient of project procurement monitoring and control was 0.433 which tell us a
unit increase of variable will result an increase in overall project performance by 43.3 percent

45 | P a g e
assuming all other variables constant. Therefore, the last hypothesis, Ha4, which states there is a
significant and positive relationship between project procurement monitoring and control and
project performance is also supported and the hypothesis is accepted.

Figure 4.2 Project Performance

PROJECT PROCUREMENT PRACTICES

Project Procurement Practices Ha1r=0.929, **, ß=.228

Project Procurement Planning

Practice
Project
Ha2 r=0.962, **, ß=.261
Performance
Project procurement
conducting process
Ha3 r= 0.883, **, ß=.210

Project procurement Ha4 r=0.962, **, ß=.433

monitoring and control

4.9 Discussion of the Result

This section discusses the main findings of the research and makes comparisons with findings of
previous researches.
The section discusses the main findings of the research and makes comparisons with findings of
previous researches.
The research findings show that there is significant and positive relationship between project
procurement management practice and project performance supports Eriksson and Westerberg
(2012) conducted a study with a purpose to increase the understanding of how chosen
procurement procedures affect project performance. They suggested that in order to achieve
efficient governance of construction projects a systemic and holistic approach to procurement
procedures is crucial. The strength of the relationship shows the extent of the impact of project

46 | P a g e
procurement practice which was measured in terms of creating awareness for project team the
importance of project procurement practice and setting project procurement documented policies
and procedures to complete projects without extension of time, additional budget and to satisfy
stakeholders expectations.

The finding that there is significant and positive relationship between project procurement
planning and overall project performance supports Nicholas and Ndalahwa (2018) who found that
project procurement planning was most important and the explanation provided on the value of
procurement planning, it is important prioritize procurement planning because it provides the
basis for organizing the work on the projects, facilitate efficient utilization of resources, increase
the chance of completing a project on time and with a planned budget for successful project
performance.

The finding that there is significant and positive relationship between c project procurement
conducting process and overall project performance supports Nicholas and Ndalahwa (2018) who
found that project procurement conducting process is significant effect on project performance in
which reduces conflict of interest between two parties, buyers and sellers.

The finding that there is significant and positive relationship between project procurement
monitoring and control and overall project performance supports Richardson, (2015) who found
that project procurement monitoring and control is an effort to search for solution to the identified
threats to the project success, reduces variations during project implementation, improve quality,
reduce risks and finally achieving projects objectives.

47 | P a g e
 CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
In this chapter of the study, summary of findings, conclusion and recommendations are stated.
The purpose of this study was aimed to examine the effect of project procurement practices on
overall project performance. The factors that affect the overall project performance are project
procurement practices management; project procurement planning, project procurement
conducting process and project procurement monitoring and control.

5.1 Summary of Major Findings

The study has investigated about the effect of project procurement practices on project
performances. Since the essence of project procurement practice is under researched area but the
most significant aspect of project management knowledge area, the researcher entertained to
select this topic. Based on this, the overall findings of the research summarized and concluded as
follows: -

 The average descriptive statistics for project performance (dependent variable) result has
shown that, the mean score was above the midpoint (3.00) of the likert scale, which means
respondents overall project performance came from the company‟s project procurement
management variables. Namely project procurement management, project procurement
planning, project procurement conducting process and project procurement monitoring and
control were accumulated on the midpoint and inclined to agree.
 The result of independent variable of descriptive statistics has shown that, the mean score
of project procurement practices variables i.e. project procurement management, project
procurement planning, project procurement conducting process, and project procurement
monitoring and control has been 3.943, 4.102, 3.997, & 4.116 respectively. The result
indicated that, the highest mean score from the independent variable is 4.116 for project
procurement monitoring and controlling. Therefore, the corporation had better to a
continuous improvement, increase number of projects completed on time, improve quality,
improves transparency and reduce risk.
 The correlation matrix indicates that the four project procurement practices variables:
“project procurement practices, project procurement planning, project procurement

48 | P a g e
 conducting process and project procurement monitoring and control ” were positively and
strongly correlated with overall project performance with interval & at 0.01 p-value 2taild,
by scoring a Pearson Correlation Coefficient “R-value” of 0.929**, 0.962**, 0.883** and
0.962**. The highest strong coefficient of correlation in this research between equally
both project procurement planning and project procurement monitoring and controlling
variables and project performance is 0.962. In this case relatively project procurement
planning and project procurement monitoring and control had a higher strong relationship
with overall project performance (r = 0.962, n = 44, p ≤ 0.01) than the other three
independent variables.
 The last major finding of the regression analysis result is, the four independent variables
(project procurement practices management, project procurement planning, and project
procurement conducting process, and project procurement monitoring and controlling)
contribute to statistically significant level at (p-value = 0.001). The score of the coefficient
correlation determination (R²) is 0.986 which indicates, 98.6% of the variability of project
performance was explained by the four independent variables. The Beta weight score
indicated that the effect of project procurement monitoring and control is greater than that
of other project procurement management. The other variables that were not considered in
this study contribute about 1.4%of the variability of overall project performance level. As
the p- value of project procurement practices management, project procurement planning,
and project procurement conducting process, and project procurement monitoring and
controlling, is less than 0.05, the researcher can accept the hypothesis and all the project
procurement practices dimensions.

5.2 Conclusion
The main purpose of the study was to investigate the effect of project procurement practices on
project performance. The study was conducted on Ethiopian construction Works Corporation. All
selected project procurement practice variables / dimensions have significant effect on project
performance.
Concerning the demographics of the respondents, majority of the respondents were males which
were 56.3 % and female respondents were 35.4 %. Majority of them are found between 31-40
years that is 22 (45.8%). Their education status has also shown that most of the respondents were
BA/BSC degree holders.
Correlation analysis was conducted to analyze the relationships between variables, the correlation
matrix revealed that all coefficient of correlation independent variables were positive and strongly

49 | P a g e
correlate with the dependent variable. Further regression analysis was also conducted and results
revealed that the four independent variables (project procurement practices management, project
procurement planning, and project procurement conducting process, and project procurement
monitoring and controlling) contribute to statistically significant level at (p-value =0.001). The
score of the coefficient correlation determination (R²) is 0.986 which indicates, 98.6% of the
variability of project performance was explained by the four independent variables. The Beta
weight score indicated that the effect of project procurement monitoring and controlling is greater
than that of other project procurement practices variables.
Based on hypothesis testing the p- value of project procurement practice management, project
procurement planning, project procurement conducting process and project procurement
monitoring and control is less than 0.05, thus the researcher can accept the hypothesis and all the
project procurement practices dimensions.

5.3 Recommendation
There is a significant positive correlation between project procurement practice and project
performance. The researcher forwards the following recommendation based on the research
findings and conclusion drawn in the previous sections.
Most of the mean score of the dependent and independent variable has been accumulated on the
midpoint and inclined to agree. In order to have a continuous improvement of project
performance, the corporation should have well organized and documented project procurement
practices to complete projects as per the scope, as per the budget and within the schedule to meet
the stakeholder‟s expectation. The corporation should achieve and maintain effective and efficient
performance of project procurement practice as an essential function for the successful provision
of overall project performance.

 It should be important for the corporation measuring project performance on a continuous

performance improvement with project procurement practices and their relative importance
to improve the performance indicators.

 The corporation should focus on efficient project procurement practice as critical function in
the success factors in construction projects.

 The procurement and supply management units should strive to ensure all personnel
involved in the procurement function should work cooperatively with project unit as to
ensure effective use of time, budget and resources thereby meeting objectives of the project.

50 | P a g e
 The Ethiopian construction Works Corporation should regularly conduct surveys on market
capability analysis in order to assess the ability of market to meet its needs in terms of goods
and services supplied towards meeting the project‟s demand. This will enable the
corporation to achieve value for money among other benefits.

 Ethiopian Construction Works Corporation should also strive to implement all suggestions
made to improve its procurement performance i.e. hiring of procurement professionals,
increasing training budget allocation and making use of consultant/expert in procurement
practices. To improve the general performance.

 . This study looked at four procurement management practices (Project procurement

management, Procurement planning, Competitive project procurement process and Project
procurement monitoring and control) and their role on performance of projects in Ethiopian
Construction Works Corporation. The researcher recommends further research to investigate
the role of other project procurement practices attributes on performance of projects.

5.4 Implication for Further Research

The results of this study can be further utilized to suggest several directions for future research. A
field study can focus on investigating on project procurement practices influencing project
performance in Ethiopia Construction works Corporation. Finally, more research on this area is
needed because this study has investigated a subset of the variables found to be important
determinants. Other variables that may provide in project procurement practices influencing
project performance in construction projects can be incorporated in other studies.

51 | P a g e
REFERENCE

Akhter, S (2014), Project Management Professional (PMP) certificate exam preparation, 2nded.
AGuide to the Project Management Body of Knowledge (2017), 6th ed., Project Management
Institute, inc.
A Guide to the Project Management Body of Knowledge (2013), 5th ed., Project Management
Institute, inc.
Beleiu, I.,Crisan, E., &Nistor, R. (2015).Main Factors Influencing Project
Success.Interdisciplinary ManagementResearchXI, 59-71.
Brown, B., &Hyer, N. (2010).Managing Projects:A Team-Based Approach, International Edition,
Singapore, mc Graw-Hill.
Callahan, K.R., Brooks, L.M. (2004), Essentials to Strategic Project Management, John Wiley &
Sons Inc.
Cleland, D.I and Ireland (2002), Project Management Strategic Design and Implementation, 4thed.
Creswell, JW (2009), Research Design: Qualitative, Quantitative, and mixed methods approaches
(3rd ed.), Sage publications, inc.
Deme, A (2009), Why Is It Important to undertake Good Planning Before Undertaking a
Procurement Process? IGF Journal Vol 21, NO. 1
Eriksso,E. and Westerberg M. (2012), Effects of Procurement on Construction Project
Performance, Sweden.
Ethiopian Construction Works Corporation (2018), Annual report, Addis Ababa, Ethiopia.
Fleming, Q. (2013).Project Procurement Management- Contracting,Subcontracting,Teaming
(1sted.). California united States of America: FMC Press.
Frame, J (2002), The new Project Management, Second Edition Tools for an Age of Rapid
Change, Complexity, and Other Business Realities.
http://www.ECWC.com.et/
http://www.mofed.gov.et/English/news
Karlsson, P. (2011). Project Management in Sweden and Ethiopia - Potential improvement in
Project Management Methods.Division of Construction Management Faculty of Engineering
Lund University.

Kerzner, H (2009), Project Management, A systems Approach to Planning, Scheduling, and

Controlling, 10th ed., John Wiley & Sons, Inc.

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Kinyeki S.G (2012), Procurement, Tendering and Contract Administration in Developing
Countries A case study of East and West Africa, Zambia.
Kothari, C.R (2004), Research Methodology methods and techniques (2nd ed.), New Age
International (P) Ltd, New Delhi.
National Bank of Ethiopia.(2017). Annual Report 2016/17. Addis Ababa, Ethiopia.
Ogubala A.R and Kiarie, M.D. (2014), Factors affecting procurement planning in country
governments in Kenya: a case study of Nairobi City County.
Ogunsanmi, O.E. (2013), Effects of Procurement Related Factors on Construction Projects
performance in Nigeria, vol. 6 No. 2.
Rashid, R.A, Taib, LM, Ahmad, W.B, Nasid, A, Ali, W.N &Zainordin, Z.M. (2006) Effect of
Procurement Systems on The Performance of Construction Projects, Malaysia.
Richardson, GL (2015), Project Management Theory and practices, 2nded.
Roberts, A. and Wallace, W. (2004), Project Management, Pearson Education Limited.
Saunders, M Lewis, P &Thornhil, A (2009), Research methods for business students, England.
Wysocki, R (2014), Effective Project Management, Traditional, Agile, Extreme, 7thed.,Phd, John
Wiley & Sons, Inc
Yalew, E. M. (2017). Basic Research Principles and Applications. Addis Ababa, Ethiopia: Bahir
Dar University
Yimam, AH (2011), project management maturity in the construction industry of developing
countries, the facility of the graduate school of the university of Maryland, college park.

53 | P a g e
Appendixes
Appendix A: Questionnaire

ST. MARY’S UNIVERSITY

SCHOOL OF GRADUATE STUDIES

Dear participants:
First of all I would like to thank you for your willingness to respond to my questions. My name is
Chaneyalew Wondemalem, I am a MA student in Project Management at St. Marry University.
As part of my Master‟s program now I am conducting a project work entitled. The effects of
project Procurement Practices on Project Performance in Ethiopia Construction Works
Corporation. This interview is made so as to have more in depth on the matter under study.
I kindly request you to participate in this research study by completing the attached questionnaire.
In order to ensure that all information will remain confidential please do not include your name.
As well I sincerely request you to respond to the question as honestly as possible and return the
completed questionnaires.
Knowing that your time is available please, please take few minutes of your time to complete the
questionnaire. Thank you very much for your time and assistance in my educational endeavors.
Questionnaire

General Instruction and information:

The questioner has close-ended please read each statements carefully and show the extent of your
agreement on the statements by putting “√" or "X" mark in the boxes which most accurately
reflects your opinion.
Please answer all the questions. There is no right or wrong answer. Assure you that all response
will be used only as an input for this study.
Thank You!!!

54 | P a g e
Part 1: General Information
1.1. Gender
Male 
Female 
1.2. Age Bracket
20 – 30 years 
31 – 40 years 
41 – 50 years 
Above 51 years 

1.3. Educational Background

Certificate 
Diploma 
BA/BSC Degree 
MSc/MA 
Other, please Specify
1.4. Yours Department in ECWC.
Procurement and supply unit 
Project Management unit 
Planning and Business Development unit 
Other, please Specify
1.5. Your present responsibility
Manger 
Team leader 
Unit Lead 
Officer 
Other, please specify

1.6. How many years have you been employed in ECWC?

Below 3 years 
4 -6 years 
7 – 10 years 
11 -15 years  above 15 years 

55 | P a g e
PART 2: Procurement Practices

2.1. Project procurement management

Kindly indicate your extent of agreement with the following statement on the effect of
procurement management on performance of Projects in ECWC. In the questionnaires the number
5 is strongly agree, 4 is agree, number 3 uncertain, 2 is disagree and 1 is strongly dis agree.

Strongly Disagree Uncertain Agree Strongly

S/ Question Disagree Agree
N 1 2 3 4 5

1 Project teams are aware of the

importance of project procurement
management in the corporation

2
There are documented policies &
procedures on procurement
management in the corporation.

3
There is a standardized (formal)
project procurement management
process in place.

4
There is a procedure that is set for
project teams make a request for
goods and services required.

56 | P a g e
2.2. Project Procurement planning

Kindly indicate your extent of agreement with the following statements on effect of Project
Procurement planning on project performance in ECWC Projects. In the questionnaires the
number 5 is strongly agree, 4 is agree, number 3 uncertain, 2 is disagree and 1 is strongly dis
agree.

Strongly Disagree Uncertain Agree Strongly

S/N Question Disagree Agree
1 2 3 4 5

1 Improves performance

2 Increases number of orders

3 Increases number of projects

completed on time

4 Meeting organizations objectives

5 Meeting performance indicators

6 Reduces conflict of interest

7 Reduces costs

8 Reduces number of complaints

9 Reduces number of risks

10 Utilization of resources

57 | P a g e
2.3. Competitive Project Procurement Conducting Process

Kindly indicate your extent of agreement with the following statements on effect of Procurement
conducting on project performance in ECWC Projects. In the questionnaires the number 5 is
strongly agree, 4 is agree, number 3 uncertain, 2 is disagree and 1 is strongly dis agree.

Strongly Disagree Uncertain Agree Strongly

S/N Question Disagree Agree
1 2 3 4 5

1 Increase number of orders

2 Improve performance

3 Increase number of projects

completed on time

4 Increase quality of goods and

services

5 Increases reliability

6 Reduce conflict of interest

7 Reduce costs

8 Reduces number of compliant

9 Reduce number of risks

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2.4. Project Procurement monitoring and control.

Kindly indicate your extent of agreement with the following statements on effect of Procurement
Administration on project performance in ECWC Projects. In the questionnaires the number 5 is
strongly agree, 4 is agree, number 3 uncertain, 2 is disagree and 1 is strongly dis agree.
Strongly Disagree Uncertain Agree Strongly
S/N Question Disagree Agree
1 2 3 4 5
1
Continuous improvement
2
Achieving value for money

3
Increases number of projects
completed on time
4
Improves quality
5
Improves transparency

6
Increases level of transparency
7
Reduces risks
8
Reduces number of projects
uncompleted

9
Increases organization reputation

59 | P a g e
PART 3: Performance of project

How did Ethiopian Construction Works Corporation performance in success of effective

implementation of projects by Ethiopian Construction Works Corporation? In the questionnaires
the number 5 is strongly agree, 4 is agree, number 3 uncertain, 2 is disagree and 1 is strongly
dis agree.
Strongly Disagree Uncertain Agree Strongly
S/N Questions Disagree 2 3 4 Agree
1 5
1
Projects in ECWC are completed
on time without asking any time
extension

2
Projects in ECWC are completed
as per their budget

3
Projects in ECWC are done as
per their scope

4
ECWC has a clear policies on
project‟s quality

5
ECWC always consider value
for money on projects
implemented

6 There is efficient use of

materials
7 Key stakeholders are involved
during project implementation
8 Stakeholder‟s needs and
expectations are fully realized
19 ECWC has a clear policies on
projects
Thank You!!!

60 | P a g e
Appendix B: SPSS out Put
RELIABILITY TEST RESULT FOR INDEPENDENT VARIABLES

Case Processing Summary

N %
Cases Valid 44 91.7
a
Excluded 4 8.3
Total 48 100.0
a. Listwise deletion based on all variables in the procedure.

Project Procurement Practice Management

Reliability Statistics
Cronbach's Alpha N of Items
.893 4

Project Procurement Planning

Reliability Statistics
Cronbach's Alpha N of Items
.886 10

Project procurement conducting process

Reliability Statistics
Cronbach's Alpha N of Items
.904 9

Project Procurement Monitoring and Control

Reliability Statistics
Cronbach's Alpha N of Items
.929 9

Project Performance

Reliability Statistics
Cronbach's Alpha N of Items
.889 9

61 | P a g e
Over all reliability

Reliability Statistics
Cronbach's Alpha N of Items
.977 41

DEMOGRAPHIC ANALYSIS OF RESPONDENTS

Gender of Respondents
Frequency Percent Valid Percent Cumulative Percent
Valid Male 27 56.3 61.4 61.4
Female 17 35.4 38.6 100.0
Total 44 91.7 100.0
Missing System 4 8.3
Total 48 100.0

Age of Respondents
Cumulative
Frequency Percent Valid Percent Percent
Valid <=30 14 29.2 31.8 31.8
31-40 22 45.8 50.0 81.8
41-50 5 10.4 11.4 93.2
>=51 3 6.3 6.8 100.0
Total 44 91.7 100.0
Missing System 4 8.3
Total 48 100.0

Education of the respondents

Valid Cumulative
Frequency Percent Percent Percent
Valid Diploma 2 4.2 4.5 4.5
BA/BSC Degree 31 64.6 70.5 75.0
MSc/MA 11 22.9 25.0 100.0
Total 44 91.7 100.0
Missing System 4 8.3
Total 48 100.0

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 Department Respodances
Cumulative
Frequency Percent Valid Percent Percent
Valid Procurement & Supply Unit 32 66.7 72.7 72.7
Project Managment Unit 12 25.0 27.3 100.0
Total 44 91.7 100.0
Missing System 4 8.3
Total 48 100.0

Years of Emploment
Cumulative
Frequency Percent Valid Percent Percent
Valid <=3 Years 11 22.9 25.0 25.0
4-6 10 20.8 22.7 47.7
7-10 6 12.5 13.6 61.4
11-15 9 18.8 20.5 81.8
>=16 8 16.7 18.2 100.0
Total 44 91.7 100.0
Missing System 4 8.3
Total 48 100.0

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DESCRIPTIVE ANALYSIS OF VARIABLES
Project Procurement Practice Management

Descriptive Statistics
N Mean Std. Deviation
ProjctProcmtMgt 44 3.9432 .67312
ProjctProcmtPlanning 44 4.1023 .53418
ProjctProcmtConducting 44 3.9975 .57385
ProjctProcmtMontrAndCont 44 4.1162 .58646
Valid N (listwise) 44

Descriptive statistics of Project Procurement Management Practices

Descriptive Statistics
N Mean Std. Deviation
Project team a wearness about importance of project 44 3.95 .834
procurement mgt.
Documented policies and procedures on procurement mgt. 44 4.00 .778
A standardized project procurement mgt. process 44 3.95 .714
A procurement procedure is set for a project tem make a request. 44 3.86 .765
Valid N (listwise) 44

Descriptive statistics of Project Procurement Planning

Descriptive Statistics
N Mean Std. Deviation
Project procurement planning improves performance. 44 4.61 .579
Project procurement planning increases number of 44 4.45 .697
orders.
Project procurement planning increases number of 44 4.16 .805
projects completed on time.
Project procurement planning meets organization 44 4.14 .824
objectives.
Project procurement planning meets performance 44 4.18 .843
indicators.
Project procurement planning reduces conflict of interest. 44 3.95 .834
Project procurement planning reduces costs. 44 4.00 .778
Project procurement planning reduces complaints. 44 3.98 .698
Project procurement planning reduces risk. 44 3.86 .765
Project procurement planning affects utilization of 44 3.70 .701
resources.
Valid N (listwise) 44

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Descriptive statistics of Project Procurement Conducting Process

Descriptive Statistics
N Mean Std. Deviation
Competitive project procurement conducting process 44 4.55 .730
increase number of orders.
Competitive project procurement conducting process 44 4.41 .658
improves performance.
Competitive project procurement conducting process 44 4.27 .788
increases number of project completed on time.
Competitive project procurement conducting process 44 4.14 .765
increase quality of goods and services.
Competitive project procurement conducting process 44 3.86 .852
increases reliability.
Competitive project procurement conducting process 44 3.89 .813
conflict of interest.
Competitive project procurement conducting process 44 3.73 .788
reduces costs.
Competitive project procurement conducting process 44 3.64 .780
reduces number of compliant.
Competitive project procurement conducting process 44 3.50 .665
reduces risk.
Valid N (listwise) 44

Descriptive statistics of Project Procurement Monitoring and controlling

Descriptive Statistics
N Mean Std. Deviation
Project procurement monitoring and control essential for continuous 44 4.57 .587
improvement.
Project procurement monitoring and control for achieving value for money. 44 4.41 .726
Project procurement monitoring and control increases number of projects 44 4.30 .765
completed on time.
Project procurement monitoring and control improves quality. 44 4.32 .674
Project procurement monitoring and control improves transparency. 44 4.05 .834
Project procurement monitoring and control increases level of transparency 44 4.00 .778
Project procurement monitoring and control reduces risks. 44 3.93 .759
Project procurement monitoring and control reduces number of projects 44 3.84 .745
uncompleted.
Project procurement monitoring and control increase organization 44 3.64 .718
reputation.
Valid N (listwise) 44

65 | P a g e
 CORRELATION ANALYSIS

Correlations
Project. Project
Projct.
Project Procurment Procmt.
Procmt.
Procurment . Mont. Project
Mgt.
Planning Conducting And Cont. Performance
ProjctProcmtMgt Pearson Correlation 1 .895** .836** .848** .929**
Sig. (2-tailed) .000 .000 .000 .000
N 44 44 44 44 44
** ** **
ProjctProcmtPlann Pearson Correlation .895 1 .848 .912 .962**
ing Sig. (2-tailed) .000 .000 .000 .000
N 44 44 44 44 44
**
ProjctProcmtCond Pearson Correlation .836 .848** 1 .811 **
.883**
ucting Sig. (2-tailed) .000 .000 .000 .000
N 44 44 44 44 44
**
ProjctProcmtMont Pearson Correlation .848 .912** .811 **
1 .962**
rAndCont Sig. (2-tailed) .000 .000 .000 .000
N 44 44 44 44 44
**
ProjctPerformance Pearson Correlation .929 .962** .883 **
.962 **
1
Sig. (2-tailed) .000 .000 .000 .000
N 44 44 44 44 44
**. Correlation is significant at the 0.01 level (2-tailed).

REGRESSION ANALYSIS
Multicollinearity

a
Coefficients
Collinearity Statistics
Model Tolerance VIF
1 ProjctProcmtMgt .176 5.697
ProjctProcmtPlanning .108 9.232
ProjctProcmtConducting .247 4.043
ProjctProcmtMontrAndCont .160 6.242
a. Dependent Variable: ProjctPerformance

b
Model Summary
Change Statistics
Adjusted R Std. Error of R Square F Durbin-
Model R R Square Square the Estimate Change Change df1 df2 Sig. F Change Watson
a
1 .993 .986 .984 .06475 .986 675.116 4 39 .000 1.812
a. Predictors: (Constant), ProjctProcmtMontrAndCont, ProjctProcmtConducting, ProjctProcmtMgt, ProjctProcmtPlanning
b. Dependent Variable: ProjctPerformance

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 a
ANOVA
Model Sum of Squares df Mean Square F Sig.
b
1 Regression 11.321 4 2.830 675.116 .000
Residual .163 39 .004
Total 11.485 43
a. Dependent Variable: ProjctPerformance
b. Predictors: (Constant), ProjctProcmtMontrAndCont, ProjctProcmtConducting, ProjctProcmtMgt,
ProjctProcmtPlanning

Unstandardized Standardized Collinearity

Coefficients Coefficients 95.0% Confidence Interval for B Statistics
Std. Lower Upper
Model B Error Beta t Sig. Bound Bound Tolerance VIF
1 (Constant) .409 .081 5.026 .000 .244 .574
ProjctProcmtMgt .175 .035 .228 5.005 .000 .104 .246 .176 5.697
ProjctProcmtPlanning .253 .056 .261 4.500 .000 .139 .366 .108 9.232
ProjctProcmtConducting .108 .035 .120 3.131 .003 .038 .178 .247 4.043
ProjctProcmtMontrAndCont .381 .042 .433 9.062 .000 .296 .466 .160 6.242
a. Dependent Variable: ProjctPerformance

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